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Words of a Champion

I hope that you are all prospecting consistently each and every day.  After working with a number of clients in the last week, one thing is evident this time of year.  In your prospecting, you will often get a lot of leads for future sales if you work hard at your prospecting.  There will be more leads than appointments this early in the selling season.  Relax, this is normal!  We often get too wrapped up in the result and we must understand we need to just keep doing it each day (the prospecting) and it will work out.

Your career in this business is not based on today, this week, or this month, provided you are doing daily what you need to do in the activities of prospecting and lead follow-up.  By the end of the quarter, six months, or year, you will achieve your goals.  To look at it another way, the more no's you get today, the fewer you will get the rest of the year.  Don't be like the typical Agent who will give up if they get too many no's, or if the results are not where they want them to be after a short period of time.  You must persevere through the small challenges to acquire the big rewards in life.

 

To Your Achievement of Greater Success in 2009,

Dirk Zeller, CEO
RealEstateChampions.com

P.S. If the top producing Agent in your marketplace offered to let you use his/her listing presentation as your own, what would that be worth to you? Well, I'm going to give you a peek at the Listing and Pre-Listing Presentation Package and tactics that I used to sell 150+ homes a year and an average Agent used to achieve... (full case study on the next page). This is by far the most requested and anticipated program I've ever produced here at REC, so make sure to take a look further today...

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Projecting Trends And Putting Your Findings To Work

Most real estate trends are a reaction to the law of supply and demand. As you project trends, study your market analysis for hints of changes in your market’s inventory. At the same time, study your region’s economic growth and stability for hints at what is taking place to influence consumer demand.

In general, a low inventory of homes will lead to increased appreciation and more competition for “high demand” properties, which include homes that are in superior condition and in superior locations. In a low inventory marketplace, sellers can often overreach in terms of pricing. When inventory levels are high, the competition for buyers slows appreciation. It also extends days on the market and can even drop sales prices due to a lack of purchaser urgency to “buy now.”

Most agents, even the good ones, are far from being experts in their field. They have created clients and sales through strong relationships rather than through superior knowledge and expertise. To differentiate yourself, acquire a deep understanding of current and emerging market trends and then share your findings with prospects, current and past clients, and others in your sphere of influence. Doing so will help you position yourself as a leading expert in your market area.

Whether you are making contact by phone or in person, get the conversation going by presenting questions that prompt interest, inspire urgency, and convey your market knowledge and authority. For example: 

• Are you aware that we have less than two weeks of inventory in the price range you are looking for?

• Did you know that the average home price has appreciated over 15% in the last six months; that this same home you called about today would have been $25,000 less six months ago?

• Has anyone told you that on average, a high-demand house is on the market only 21 days in today’s environment?

Once you have seized their interest, immediately ask for an appointment to meet soon due to the market place inventory being low or high, or appreciation being low or high, or the days on the market being low or high, or other market conditions that work to your favor.

Let me share with you a script example:

“Bob, did you know that the average home price in your area has risen over 15% in the last six months?  Here’s what that means to you.  This same home we are talking about right now would have been $25,000 less if you had called me six months ago.  Based on the trends in the marketplace, we should get together right away.  I am sure you don’t want to lose another $25,000 in the next six months.  Would Wednesday or Thursday this week be better for you to meet?”

The use of key statistics such as list price to sales price ratios, days on the market averages, and absorption rates, demonstrate your mastery of marketplace knowledge. It also creates a competitive gap between you and your competition by establishing yourself as the one who can use market forces to your client’s advantage, raising the probability of a higher sales price, a shorter the time on the market, and increased net proceeds.

To put your findings to work, take the following steps:

• Use your marketplace knowledge to prompt prospects to act now rather than to procrastinate until a time when market conditions may not be so ideal.

• Share your market analyses as a way to stay in contact with past clients and others who can positively influence your business. Most of these individuals already own real estate, so they are “vested” and interested in the local marketplace. For many, their single largest investment asset is their home. They care about the market’s equity position and appreciation. What’s more, most are not in their final home for life.  They at least secretly wish for a better house in a better neighborhood. By establishing and reminding them of your expertise, you place yourself in position to counsel them on future home or investment property purchase.

• Quarterly, assemble and mail your most recent statistical findings to your business contact list.  While other agents will be sending out recipe cards and other trash and trinket items, you will be sharing something of real value: the state of the real estate market and the state of your recipients’ major financial holdings– their homes.

Another way to enhance your credibility and public image is to publish your monthly or quarterly market analysis in the form of a newspaper display ad.

Well before the ad breaks, send or deliver your market analysis and trends projection to the journalist that handles real estate coverage for your local newspaper. Your findings may or may not make their way into a news story, but by furnishing the report on a regular basis you will establish yourself as a regional authority that can be called upon for real estate quotes or interviews.  The effort will cost you nothing but will pay off by elevating your stature in the community. There is nothing better than a third party validation to cement of your status as an expert in your marketplace.

Position yourself as the leading expert in your market area by knowledge of your market.  And then make it work for you by sharing your finding with your prospects, current and past clients and your sphere of influence.

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Prospecting Options

We really have an unlimited supply of what we can prospect.  Webster defines prospecting as “seeking a potential customer; seeking with a vision of success.”  In the definition, it doesn’t say waiting for the phone to ring, sending out postcards, or hoping someone calls you.  It clearly says that prospecting is a seeking activity.  Let me share a guarantee from ancient scripture.  “Seek, and you shall find.”  The guarantee is if you seek, you will find.  I hear all the time from people, “Well, what if it doesn’t work?”  You are assured it will work because seekers become finders.

The second segment of this definition is that we need to “seek with a vision of success.”  Webster must have worked in a real estate office before.  He knows how other Agents can try to pull you down or away from prospecting.  You could even have Brokers who try to belittle you because of your prospecting.  Webster was saying, get your mind to think positively, expect good results, focus on that, and you will succeed.  Don’t let others negatively influence your vision of success. 

The question isn’t should you or shouldn’t you prospect; the answer is “yes.”  The options of what to prospect is wide open.  There are unlimited sources to prospect for the generating of new leads and appointments.  Being able to sort through the more competitive sources verses less competitive sources, reactive sources versus proactive sources, the possible sources and the probable sources to find your niche is critical.

I have included a chart to better illustrate the many options we have with regard to prospecting sources, categories, and competition level in those categories, and the controllable influence we have on our business success through prospecting.

Real Estate Business Sources
Categories, Competition, Controllability

More Competitive

< -------------- >

Less Competitive

	Reactive Sources
	Possible sources of their current or future direct business
*	Ad & Sign Calls
*	Internet Contacts
*	Open House Contacts
	Probable sources of other’s current or future direct business
	Referral leads from other agents	*
	Referral leads from “referring businesses”	*
	Referral leads from “personal relationships”	*
	Proactive Sources
	Possible sources of their current or future direct business
	General/Cold Calling	*
	Specific Activity/Warm Calling	*
	Probable sources of their current direct business
*	FSBO’s
*	Expireds
	Specific groups that are sources of their direct future business
	Geographic/Demographic Farms	*
	Spheres of Influence	*
	Past Clients	*
	Specific groups that are sources of other’s current and future referral business
	Past Clients	*
	Spheres of Influence	*
	Geographic/Demographic Farms	*

 

We have the option to select more competitive sources to generate our leads.  These more competitive sources mean that we are not usually the only Agent who knows about this prospect’s desire to buy or sell.  They have revealed it to others.  Those more competitive categories are open houses and/or sign calls, Internet contacts, even floor time.  These are general sources for future business.  To make the assumption that you are the only person or Agent who knows about these people’s desire to move is folly.  People who are considering a move visit more than one website to request information, attend more than one open house, and call on more than one ad.  To think otherwise is delusional.  Other competitive sources that are excellent are FSBOs and expireds.  There, we will be competing with the top level sales-skilled Agents in the marketplace.  We have to possess Champion level sales skills to compete and win clients in these two categories with consistency.  There are always a few exceptions to the rule.  Those who operate in the world of commission cutting come to mind.  To engage in commission cutting to attract clients doesn’t take a high level of any skill in sales or marketing. These people can attract the business of some FSBOs and expireds.  If you enjoy competition, FSBOs and expireds are excellent options.  I was created for competition.  I enjoy competing, whether it’s business, athletics, or even games.  If you are not that way, highly competitive areas will not bring you joy and satisfaction. 

The less competitive options are referral leads from other Agents, personal relationships, and referring business.  A referring business could be your mortgage organization, Insurance Agent, or Home Inspector.  All these sources are less competitive because these people aren’t referring their business to twenty, ten, or even (in most cases) five Agents in your marketplace.  Other less competitive sources would be geographic, demographic, or psychographic farms, spheres of influence, and past clients.  Again, the number of Agents working the same people that you are trying to serve and secure to clients status is very low.  Geographic farms are the most likely of all these sources to have multiple Agents working an area.

Some of you may be wondering why I put cold calling and warm calling in as less competitive.  It’s because very few Agents actually do them.  There are even fewer Agents who do them now since the advent of the “no call’ list.  We all know what cold calling is but warm calling is merely creating a more targeted list and possibly sending a door opening marketing piece.  An example of an effective strategy with little competition is sending a marketing piece to a non-owner occupied property and making warm calls to them after a big run up in real estate prices and then a softening in the marketplace.  

I am personally not a proponent of cold call prospecting – calling down a crisscross directory for business.  That is really the definition of cold call prospecting.  Agents, and even sales trainers (especially the “magic pill guys” and “referral gurus”), usually try to categorize anyone who is a prospecting proponent as a cold call proponent as well.  I sometimes get painted with this broad brush, but it’s not true.  Even calling your past clients and sphere needs to be called what it is . . .  prospecting.  You can easily be in favor of prospecting and against cold calling, as I am.  I am not against cold calling because it doesn’t work . . . because it does.  I am against it because the return investment is too low.  The margin between your effort and your results is not large enough.  There are much higher-probability lead generation sources for your prospecting effort.

When evaluating the sources, you also must evaluate the ability to create the business or react to the business.  If you spend your time in the proactive sources, like past clients, sphere of influence, farms (if you call them as well), FSBOs, expireds, and cold or warm calling; these are proactive ways to generate business.  We can track the numbers and return on investment from our effort. 

With the reactive sources, we are less in control of creating our desired outcome.  In reactive sources, you don’t know the volume or time frame of the leads as completely.  With an open house, for example, you don’t really know whether two people will show up or twenty.  With the Internet, we have no idea the number of leads or when they will come.  These are clearly reactive sources for prospecting and leads.  The same is true of referrals from Agents, referral business, and personal relationships.  With all of these, the timing of when and how frequently are uncertain.

The last option is the evaluation of the possible verses probable sources.  A possibility is something that happens 50% of the time or less.  A probability is something that happens 51% of the time or greater.  The mark of a Champion is investing your time and effort in an area where the odds are better.  Increasing your effort, time, energy, and expertise in past clients, sphere of influence, FSBOs, expireds, referrals from other Agents, referral business, and personal relationships will increase the results that you will receive.  Investing less time in the possible sources will bring us a greater return if we re-invest the effort in the probable sources instead.

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Staying In Control And Asking For the Order

Agents lose control of the listing presentation when they allow the sellers’ agenda to take over the discussion. I have listened to agents who have lost control to the seller in the first five minutes. The problem for most agents is once they lose control, they don’t have the skill to wrestle it back.

The sellers’ agenda is simple. They want to know what their home is worth.  They want to know what you do to sell it and what you will charge for your service.  And for sure, they want to know what they’ll put in their pockets when the deal is done.  If the sellers cause you to orient your presentation to the order of their interests, you won’t walk out with the listing.

If you talk about the price of the home and your fee structure before you’ve built trust, credibility, and value for your service, you’ll lose every time.  Don’t ever follow the seller’s agenda!

Setting the Agenda Early-on

The most powerful technique is to have an actual order or agenda you follow.  Then type it out to hand to the seller, saying:

“Mr. and Mrs. Seller, I have found this presentation order to be most effective for my clients like you.  It allows me to present to you the important facts, marketplace strategies, and benefits you receive as my clients.  In addition, there will be plenty of time to answer all your questions, so you are completely comfortable with your decision.  Would it be all right with you if we follow this agenda for our meeting?”

Keeping On Track

When the seller brings up a point that would cause you to abandon your presentation plan, pick up the agenda sheet and ask:

“Would it be all right to discuss that when we get to this point in the presentation?”

Your agenda might look like this:

1. Review agenda for the meeting
2. Visual inspection of the property
3. Discuss clients’ goals, needs, and expectations of me
4. Discuss my professional credentials
5. Determine listing price
6. Complete the paperwork, so we can begin serving you

The last item needs to be on your agenda.  It alerts the clients in advance that you are going to close.  In fact, etch all six items in stone; don’t move them or rearrange them. You have to build trust, credibility, and value in that order, or you will lose.

Asking For the Order

After you have overcome seller concerns or objections, ask for the order.  In sales terms, this means ask the prospects to do business with you.

At the end of a presentation, a typical salesperson’s close is something like, “Well, what do you think?”  It’s obvious to me why the typical salesperson sells very little.  Winding up with a question like, “What do you think?”, is hardly asking for the order or closing.

Closing is making a definitive statement about your conviction that you are the right person for the job, and they should take action now.  A good closing statement goes like this:

“Mr. and Mrs. Seller, based on your goals, needs, and expectations, I am confidant that I am the right person to handle the sale for you.  Let’s get started now!”

As you say, “Let’s get started,” you slide the listing agreement in front of them.  Hand them the pen to sign with and smile.  Most importantly, shut up!  Don’t utter a word.

Bringing the Presentation to a Natural Conclusion

Following any major sales transaction, people feel a bit of uncertainty, a feeling of, “What did I just do?”  Pre-empt fear by addressing and controlling concerns.

Before you leave the meeting, recap what steps will happen next and what you will be doing for your clients in the next 24-48 hours.  Then reassure them that they made a great decision, that you look forward to serving them and working with them, that the goals they set will be achieved, and that they selected the right agent for the job.

 

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