Real Estate Agency Increases Profits, Improves Customer Service
with Camp Negotiation System
Using the Camp Negotiation System, Realtor’s commissions increase 30%
- Increased Realtors’ commissions by 30-percent.
- Reduced sellers’ time on market to less than 40 days, compared to the industry average of 60 to 90 days.
- Achieved a 99-percent stick rate for real estate deals, compared to the industry average of 80-precent.
- Achieved high levels of client satisfaction, resulting in increased referrals.
- Improved Realtors’ productivity though the use of a comprehensive client discovery process.
Though most Realtors consider themselves professionals, most real estate negotiations are far from professional, according to the founder and owner of the Northern Virginia real estate firm RE/MAX Evolution David Zadareky. “The concept of professional negotiation goes out the window when it relates to your home, your nest,” says Zadareky. “Emotions always get involved.”
While there was plenty of money to be made in real estate in the early 2000s – even in this often-unprofessional environment – that all changed in 2006 when the real estate market began its rapid and now-infamous decline. “We went from 1,000 miles per hour to 200 miles per hour in reverse,” says Zadareky. “During this time I was sitting in a negotiation and became frustrated because I didn’t see a process. I couldn’t predict how things were going to go.”
Finding a System
In the midst of the turmoil-filled time after the real estate bubble burst, Zadareky began reading negotiation books and was disappointed by what he found. “Books like Getting to Yes didn’t present a clear system, just a bunch of unconnected ideas,” he says. But when he purchased a copy of Start With No by global negotiation expert and coach Jim Camp, everything changed. “I read it cover-to-cover in three days and saw that it wasn’t just a system for negotiation but a system for life.”
Very rapidly, the Camp Negotiation System began to change the way Zadareky worked with his clients. “I methodically built the System’s checklists, logs, budgets and analysis tools into our customer resource management system,” he says. “Before, when you called me up and told me you were thinking about selling your house, I would give you a presentation. After learning the Camp System I stopped doing that. Instead I use the Camp Negotiation System to understand the prospect’s problem, pain and budget. Then, I explain how I can help them solve their problem and achieve their mission and purpose.”
In the years that followed, Zadareky worked diligently to master the Camp System using a combination of audio seminars, online training courses and in-person coaching. He then worked to pass that knowledge on to the other agents he employs. “Today the system is truly part of my DNA,” says Zadareky. “I have probably listened to Jim’s audio seminar tapes 1,000 times.”
Negotiating Client Wins
In the end, it’s the client who benefits from Zadareky’s negotiation expertise, because every client the agency serves is taken step-by-step through the Camp Negotiation System. “Our only goal is to make sure our client buys the right house to fulfill their mission and purpose,” says Zadareky. “We mitigate the emotions and focus our clients on their why, not our why.”
For example, a recent client of Zadareky’s wanted to buy a modest townhome for her family. However, she had a great deal of consumer debt, so she needed assistance from the seller to pay all her closing costs and pay off some of her debt in order to qualify for her loan. Zadareky helped her identify several houses that fit her requirements and narrowed the list down to four potential homes. The client picked the house she liked best, and they drew up an offer that met her financial requirements. Then, they entered into a negotiation with the sellers’ agent. “We presented our offer, invited the seller to say no and explained this was really the best the buyer could do,” says Zadareky. “The seller countered our offer six times, and each time we said ‘no’ in a very nurturing way. In the end, they accepted our original offer.”
Building a Successful Business
By creating client wins, Zadareky has also managed to continue building a highly successful real estate firm, even in a volatile housing market. After implementing the Camp Negotiation System, the agency’s commissions increased 30-percent. Zadareky attributes this success to the systematic nature of the Camp System. “We just don’t have the same problems other agencies do because we negotiate very clearly with all parties so that everyone understands and accepts the risks, and as a result the agreement sticks,” he says. “Our stick rate is 99-percent compared with the industry average of 80-percent, where agreements fall apart after the home inspection because the property was oversold.”
Zadareky attributes other measurable successes to the Camp System as well. Homes listed by RE/MAX Evolution sell in 40 days, on average, compared with an industry average of 60 to 90 days. Agent productivity has also increased, “We do things the right way one time, so we don’t have to revisit bad decisions,” he says. Referrals from satisfied customers have also increased. “One buyer told me that after buying and selling six homes, that we’re the only firm who made them feel like their opinion truly matters,” says Zadareky.
After years of experience and success with the Camp Negotiation System, Zadareky says he has never looked back. “I am a voracious and avid reader of business books, but after I read Start With No I never touched another book on negotiation. It’s the only system you’ll ever need.”