Real Estate Sales Tips

Make closing a condition for working out their objection.

3 Options Realty — Thu, 13 Aug 2009 01:19:00 GMT

Discussion: If you do something for the prospect, make sure they give you something in return. Use the words in this order: “If I … will you ...?” Ask them, “If I can (overcome their objection), will you (sign the listing today, sign the buyer brokerage agreement, place an offer, etc.)?” You do something—you get something in return.

Action: When working with buyers this tip is best applied during the negotiation stage. Let’s say the seller wants you to use their closing attorney because they are doing a simultaneous closing on the home they’re purchasing. This is a convenience for them but probably not for your client. Get something for that concession. If you have not agreed to seller contribution to closing costs, maybe you ask them to pay some or all of the attorney’s fees. Or maybe your buyer earns the privilege to deposit earnest money after removal of inspection contingency. Or perhaps your buyer gets some personal property thrown in at no cost. Whatever, ask for something! Usually, you don’t want to give up something without some concession.

When working with seller’s you have the same dynamic in negotiation as with buyers. This is especially so if the seller is going with discounted commission. There and numerous conditions (from the full service package) you can throw in to sweeten the deal. If they are going with full commission, have a few special marketing systems that are not part of the standard company program that you can offer, such as newspaper advertising, a more frequent holding of open houses, or an agent open house. You could offer to pay some dollar amount of seller closing costs or property taxes. Some agents offer to purchase a home warranty for the buyers to serve as a marketing incentive. Whatever… have something!

Development: Ask your broker to let you review closed, office files. Review the special stipulations. What sort of things have others asked for and gotten. What other things can you think of? Ask other agents what they do to list properties that are not a part of the standard company program.

Change the name of the objection word.

3 Options Realty — Wed, 29 Jul 2009 00:20:00 GMT

Discussion: Words are only words. Replace their “objection” word with a synonym. Change the word and you change the meaning. If your prospect uses the word “worry”, when you repeat the objection to them, use the word “concern” to replace “worry.” Prospect: “I’m worried about the composite board siding.” You: “I appreciate your concern. The facts are, this siding product is….”

Action: What if on a listing presentation, the seller prospect says something like, “I want an agent with more experience.” The implication here is that you do not meet that expectation. You might reply with: “I can understand your point of view. But let me ask you, how have you determined that someone else knows this market better than I?” Always anticipate this question. Do your homework so that you never appear inexperienced. But if this is a real objection, they will have an answer, maybe not a very good one, but they will probably have one. If it is not for real, then once you have discovered this—keep digging. Find out if there is a real objection. How about this one: “Your listing price recommendation is too low.” You might say: “There are many reasons why we might differ on our perception of value. But consider that I benefit from selling your property for the most we can get for it. The agent working with a buyer will use the same comparables I did, and will be guiding their buyers based upon the reality of recent sales history in this market. If we overprice, buyers may never take us seriously.” Take charge of the conversation and change the objection word.

What if your buyer prospect said: “I love this house, but it seems like such a commute.” You might say: “Yes it is a short drive to work, but I think we need to decide what’s most important for you. If we look for homes closer in to town, you will not get all the features that you want in a home. Maybe you should test the ride during rush hour. Let’s figure out the direction we need to go now, to save you a lot of time and trouble later.” Now you have just marginalized the “commute”, and helped to determine if this is a true objection. Both of you really need to know the answer to that question.

Development: Take time to think about your weaknesses. Don’t be afraid to acknowledge them. Then go about fixing them. Do what you can to strengthen them. Listen carefully when your prospects speak to you, especially when it is an objection being put forward. In your reply, soften the action with less urgency, accent, stress, or weightiness. Choose a word that is softer, less emphatic, than the objection word, and test for the real objection.

Build rapport with the prospect.

3 Options Realty — Thu, 16 Jul 2009 13:58:00 GMT

Discussion: One of the most powerful components in a sales relationship is for the prospect to like the salesperson. This is why it is a good idea to build rapport before discussing business. Look around upon entering their home. Are there any family photos, vacation photos, awards, or diplomas? Do they have pets? Discussing pets is a great ice breaker, because most people are emotionally attached to their pets. Ice breakers allow both parties to divert their attention from sizing each other up. So be sensitive and demonstrate your sensitivity. What hobbies are there in common? Remember, if they should decide to make a commitment, it will have had more to do with humanity than with competency. Relax, let them see the real you.

Action: On your next first meeting with a prospect, find a common element. Then make a personal connection before discussing business. This may be the most important discussion of your presentation. Try to let them do most of the talking. Freely discuss your relationship to the topic, but do not dominate. They would probably like to hear about your experience too, but the purpose on this visit is for you to learn about them, and to get them comfortable with you. Your next first meeting may take place over the telephone or maybe even via email. Telephone is tough enough, but email even tougher, unless you are very good with written composition. Nevertheless, you have to find ways to establish a common ground over both of these mediums. Bottom line, be personal. Get them to know of you as a person rather than an obscure professional with no emotional connection. It’s harder to say no to a real person, and they are more likely to share with you their real decision making criteria.

It may be harder to establish these common points with buyers, but it is no less essential. You can do it by tactfully asking probing questions at the initial contact or during the buyer needs assessment meeting. It’s a good idea to meet face to face with buyer prospects before getting into the car and driving around. It is in this critical meeting that you learn the most important things about the buyer. Ask questions that demand a subjective answer. “Where are you living now?” “Do you have children?” “How old are they?” “What schools in the area have you found that appeal to you?” “Do you have family here in the metro area?” “Where do they live?” Follow up with each of these types of questions, looking for gemstones that might reflect their hot buttons.

You’re not be sneaky or manipulative to inquire about your prospect’s needs and desires. You’re doing your job. They have come to you looking for professional guidance in the home selling or buying process. Just be aware that the only way you can be of service is to discover what service they require. Never make assumptions about this. I recall a time when I was helping a buyer from out of state that wanted to purchase a duplex or triplex. I did some previewing, and just could not imagine that she would want to live in anything that I had seen. When I picked here up to tour the homes that day, I even told her I did not suspect that she would be happy with the available inventory. That was a mistake. She was more than satisfied, and eventually bought one of the units. I had made an assumption—one which could have been fatal to my effort, had she taken offense.

Development: Next time you meet with a prospect, self-critique your presentation. Let each presentation be a classroom. Did you discover a common ground? If not, how might you have done so? If you did find the common ground, how effective were you in developing the conversation? The only way to get better at this is to practice. Seasoned sales people are experts at this skill.

Know your business—do your homework—be prepared.

3 Options Realty — Thu, 09 Jul 2009 17:58:00 GMT

Discussion: Before you meet with your prospects, research the applicable market. Unless you have some good information to share, do not ask them to tell you about the neighborhood. You may appear incompetent. But if they just start talking, let them do it, and take good notes. At a minimum, you should have a few germane statistics about the neighborhood sales history to offer up in casual conversation. Know more than you tell. Leave room for in depth answers. This makes you look highly competent, which you really are, right? Never put a form or exhibit in front of a prospect that you are not expertly familiar with, and always be prepared for an extemporaneous presentation.

Action: You can’t possibly know as much about a neighborhood as the folks living in it, unless you live in it too. But you can be very well prepared. You can know a lot of information about recent sales history, derived from your multiple listing service. And few well placed statistics, or the latest scuttlebutt, can make you look like a genius. To get this kind of information, call on the home owner’s association board of directors before your first appointment. Or stop a neighbor while out walking their dog or watering their yard. Tell them you are listing a neighbor’s home, or working with a prospective buyer that is interested in the neighborhood. Tell them you just want their opinion about the quality of life in the neighborhood. In established communities, you might ask them how well the amenities are maintained, or about the neighborhood association. In new home subdivisions, you may want to know about the builder’s post-closing follow up. You will garner some very useful information, and as an added bonus, by demonstrating such interest in the neighborhood, you might wind up with more than just one listing! Ask these neighborhood dwellers what neighborhood issues, if any, are of any importance. What was it they would like to have known before they purchased in there? Try to discover the community hot button. If you have this sort of inside information, you are going to look exceptionally competent in the eyes of your prospect.

When it comes to proprietary forms, you simply must read every form you use in any transaction, before you present them. Not only should you read them, but you should ask your broker about anything that you cannot explain. There is nothing more professionally embarrassing than to ask a prospect to sign a document that you can’t explain. This is a true sign of incompetence. Don’t let this happen to you.

Another area of preparation is to have already designed presentation templates, so that you can be quick to respond to unexpected inquiries from prospects. You don’t want to be scurrying around trying to put a presentation together the day of or even the day before a meeting. That’s when you need to be learning specifics about the prospects needs and expectations, and gaining perspective on the property or community. If your focus is on the mechanics of your presentation, you will miss the substance. And it’s the substance that will help you sell. The mechanics are important. Because they help you present your information in a logical and understandable format. But even if your format is fabulous, if the content is wanting, you will have nothing to offer. You will not likely outshine your competition. In fact, it will be quite the contrary.

Development: Check out your local multiple listing service. Most have links to census information. There you can discover things like the average age, income, commute time, education level, and many other regional statistics. Learning about communities is not wasted information, even if you do not win the prospect over. Use that information to prospect for other sellers in that neighborhood. The more people you talk to in a neighborhood, the more aware you become. The more aware of individual communities within your marketplace, the more expert you become overall. This expert knowledge will help you tremendously with both your competency and confidence when dealing with buyers.

“Be nice to yourself” close.

3 Options Realty — Fri, 26 Jun 2009 22:12:00 GMT

Discussion: Help your prospect justify your services by letting them know that they need a treat, they need to be nice to themselves, they are worthy of splurging on themselves. They deserve it—they have worked hard, or they have done good deeds for others. Every once in a while it’s good to pamper yourself. “You’ve worked hard. You deserve a reward. Don’t you think it’s time to do something for yourself.”

Action: This is a no-brainer with buyers. Don’t we all deserve to buy a home? But how do you get seller’s to feel like they are being treated special, just because they are working with you? What if you made it clear to them that by working with you, they will take the pressure off of the selling hassle? They deserve it, don’t they? Perhaps you could help out with the family pet? Pets are a problem with showing. Some people won’t even look indoors if there is a dog loose inside. Maybe you could suggest that they look at your references, where they will see that you go above and beyond to make the selling process smooth. There are many things that you could do for them. Look at you listing presentation. Express the elements of you listing presentation as helpful aids to selling. Things you are doing for them. For example the market analysis helps them determine a fair market price, and you let them know that you will be keeping your professional eye on the changes in the market during marketing so that you can advise them about changes in the dynamic marketplace. Another helpful aid is your contribution of an electronic lockbox that reports to you the name of the agents that show the property and when they did it. What about your marketing systems? These are your professional gifts to them. They deserve you, because to take the pressure off.

Development: What can you offer that will make your seller’s feel like they are getting preferred treatment, because they deserve it? This is worth thinking about. It may be the difference between selecting and not selecting you as their agent. Be prepared to use this tactic with sellers as a final fallback. While this may be more difficult to apply with sellers, it should come quite naturally, and be easy to apply in buyer prospect scenarios.

Dan Wilhelm
ABR, ABRM, CRB, RMP, EcoBroker^®
^{dan@3optionsrealty.com}
^{www.3optionsrealty.com}
678-397-1282

Be a connector—give your prospect something for nothing.

3 Options Realty — Thu, 18 Jun 2009 12:53:00 GMT

Discussion: If you want something, sometimes it helps to give something away first. Connect people. If you want business, give business away. Give leads away to your prospects. If you have a current client or customer that can use your prospect's products or services, connect them. If you see an interesting article about your prospect’s industry, hobbies, or interests, send it to them. What you give away will come back to you ten-fold.

Action: Give away a service that you know will help you do your job… sell houses! For example, I know of a landscape architect who will do a very professional consultation to an owner, advising the owner what they might do to improve the landscape. Since roughly 80% of the sale is made from the curb, this is a powerful marketing tool that can double as a sales tool. These consultations are not expensive, relative to other marketing costs absorbed by the most aggressive sales agents.

When soliciting unrepresented-sellers, after having made an introduction (preferably in person), consider sending them an article about an unrepresented-seller success story. Maybe they can replicate that performance, or maybe they can’t. Chances are they will not, and this nonperforming experience may convince them that you are the one to help them. After all, you were thoughtful enough to send them ideas for helping them do what they wanted to do in the first place. This sincere demonstration of good-will may go a long way towards winning their confidence.

When implementing discount programs such as seller commission discounts or buyer rebates, offer upgraded services for no additional commission. Make it a deal for the prospect to want to work with you.

When working with buyers, if you want to give back a rebate, reduce the most costly part of your service to them, time! For example, at the risk of sacrificing face-time, a critical element in growing your relationship, let the buyers drive around to look at houses without you. You give them the listings, they do the footwork. Meanwhile you are fast at work making profitable use of your time on other duties. The buyers feel they are getting a good deal and you have given but not lost anything, maybe. Because, in addition to lost face-time, there is also the risk that you may never see the buyers again. So weigh this tactic carefully.

Some agents like to give away a home warranty to buyers. This is a real perceived value, and it demonstrates your genuine concern for their welfare. Many home warranty companies will give agents a big discount on such programs, making the value offered appear even greater than it really is.

Development: Look for services or products that will help you do your job. Be creative! Don’t be afraid to spend money to make money. Show your generosity and flaunt your self-confidence by making a financial commitment to the relationship, even before they say yes.

Dan Wilhelm

ABR, ABRM, CRB, RMP, EcoBroker^®

^{dan@3optionsrealty.com}

^{www.3optionsrealty.com}

678-397-1282

Ask "Yes" Questions

3 Options Realty — Wed, 10 Jun 2009 14:53:00 GMT

This is the first blog in a series of over fifty sales tips, all designed to help real estate agents become more effective in closing the sale. Each blog will be in the same format, beginning with a discussion, then moving into an action dialogue, to be concluded with thoughts on how to develop this skill. We plan to post one tip each week for the next year.

Discussion: Before closing ask several “close-ended” questions that only need a “yes” to answer. Get them into the habit of saying “yes”. Nod your head just slightly as you ask the questions. Make the questions easy at first—you like this home, don’t you?” “Wouldn’t this yard be perfect for your dog?” “This high efficiency heating and air conditioning system will fulfill your energy conservation concerns, wouldn’t it?” Then ask a question about purchasing — make sure it can only be answered with a “yes,” too. For example, “Don’t you think this one is reasonably priced?” Now you have set the stage for a meaningful discussion.

Action: On the listing appointment, ask if the seller prospect sees the benefit of each of your marketing features: “Can you see the benefit of having so many different web sites listing your home?” “Can you imagine the wide exposure it will receive?” After asking a number of these questions, and receiving a “yes” reply, pull out the listing agreement, sign it, and flip to the front page. Ask a few detail-type questions to fill in the blanks: “So shall we go with a list price of $350,000? Don’t you think the 15^th would be the best day to start marketing? Okay, just sign here and we can get this moving towards selling this home.” (The fait accompli close.)

If you think you have found the right house for your buyer client, but it seems that they just don’t realize it, you have to help them see it. Using the information you learned during the needs assessment meeting, ask if certain attributes of the property meet their expectations. Get them saying yes. Remind them of the search parameters and point out how closely this property meets those objectives. Ask them: “Don’t you think this is the right house, it meets so many of your needs? Shall I draft an offer? If they say no, dig to find out what the real problem is.

Development: Think about what “yes” questions you can ask with both showing and listing. Try out this technique, but don’t push too hard at first. Give yourself time to streamline your approaches. You will get better and better at this as you practice. You have nothing to lose. Ask “yes” questions. Get your prospect in the habit of saying yes to you.

Dan Wilhelm

ABR, ABRM, CRB, RMP, EcoBroker^®

^{dan@3optionsrealty.com}

^{www.3optionsrealty.com}

678-397-1282