In This Issue...
Words of a Champion
Dirk Zeller
CEO
We are all faced with the same challenge daily. That challenge is making commitments to yourself and keeping them. What would your life look like if you could do that?
To craft that type of life takes two components, the first is a decision. You have to first decide that you want to live your life that way, and that you are going to keep the commitments that you set for yourself. The second component is discipline.
Most of us confuse activity with productivity in our workday. These two terms are not connected. Many people are challenged with the concept of discipline. They have been told, or believe, they are not a disciplined person. The truth is, in order to be successful you have to be disciplined. Discipline is merely a label, it is not a gift, you either have it or you don’t. It’s not genetic. It is a muscle that needs a workout every day or it gets weak. One way to strengthen your discipline is to determine what are the “musts” in life. If you know what you must do, you will usually do it.
Take a few minutes, before you move on, to identify a few key “musts” in your life.
- Is there a must in your business?
- Is there a must with your children?
- Is there a must with your spouse?
- Is there a must in the way you eat, or when you go to sleep, or something you consistently do?
What are the “musts” you need to apply, based on what you want out of life? Are your two lists consistent? Do they have the same activities on them? Many times, it’s not that we don’t know what to do, it is that we just don’t do it.
What are the musts you need to have, do, and be? If you clearly identify those and put in a little action and discipline, your success is assured.
To Your Achievement of GREATER success,
Dirk Zeller, CEO
RealEstateChampions.com
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Getting Results
We live in a world that has changed dramatically in the last 50 years. There has been more innovation and more technological progress in the last 80 years than there was in the previous years since the beginning of time. In today’s business society, we are judged by the results we get more than ever before: the result of winning the court case; the result of a successful surgery; the result of winning the big game. We, as REALTORS®, cannot escape this results-driven society.
We need to clearly understand that we are not judged by the process. We are not judged by our intent to provide quality service to our client. We are judged by only this: did the home sell; and for what price; and did it close. The sellers in today’s society just want their homes sold. They want the job done. They want to put gas in their cars and drive them -- no excuses. All that matters is the result . . . getting the job done well.
The truth is that there is no interim step. There are no rewards for good intentions. As an Agent, you can’t pay the mortgage with good intentions. I believe all Agents desire to sell the homes that they have listed. All Agents intend to do the best job for their clients, but we only get paid for the result. We provide for our families based on the results we achieve.
We also create long-term relationships and long-term referrals based on the result of a completed job . . . the result of a job well done. I have never heard of anyone referring an Agent based on the fact that the Agent was nice when the result wasn’t achieved. Think about it -- why would you recommend an attorney who lost your case or a hair stylist who didn’t cut your hair well?
So, why would your clients refer business to you if you didn’t get their homes sold? The fact that you are a nice person is a bonus that your client will appreciate when the job is complete. Vince Lombardi said it best: “Some of us will do our jobs well and some will not, but we will all be judged by only one thing – the result.”
Focus on doing the steps to ensure that you achieve the result the client hired you to accomplish. If the client’s price is an obstacle to achieving that result, say so -- honestly, fairly, and convincingly. I can hear the groans: “But they won’t like me.” Trust me -- they won’t like you anyway when their homes don’t sell. If you help a client to face a disappointing reality, then at least you have a chance for the sale and for long-term referrals. If the client lowers the price but doesn’t like it, and then you sell the home, you will get the commission. With the price too high, you will get neither the commission nor the long-term referrals.
Ultimately we all need to understand that we are in a business that is truly plain and simple: it’s about the result of your effort. Don’t try to fool yourself into thinking differently. You sell the home; you win. You fail to sell the home; you lose. Winning is a habit, and so is losing. Which habit are you forming?
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Price is King
We have all listened to sales trainers speak at great length on the importance of price, condition and marketing to get properties sold. Each one seems to have a magic formula for success via marketing. Marketing has become their sole answer to the question of why a home sells or does not sell, but marketing and condition are really controlled by price. Price is king in real estate.
Price is the only factor that can make up deficiencies in the other two. Price can overcome obstacles and create a sale, even if the condition of the property and your marketing approach are less than perfect. When a property is not selling, the answer is not to throw more marketing dollars into it. The answer is to get the price down to, or below, fair market value.
In my career I sold quite a few homes that were in poor condition or in a poor location. Some were on a busy street, in a rough area of town, or badly in need of repair. They all eventually sold. Some would have sold more quickly and efficiently, and for more dollars, if the seller had fixed them up. In most cases though, the sellers were unwilling or unable to do so. But priced at a level where it was a good value, the home sold. Price was the factor that controlled the sale. People will buy a home on a busy street if it is a better value than those on quieter streets. Price is the key to the sale. Don’t be misled into thinking otherwise.
I was always clear with clients that 85% of the marketing happens right at the moment when we set the price. It doesn’t matter what you do to market the home if the price is too high. You can put the home in MLS, do color flyers, run newspaper ads every week, list in Talking House and Homes & Land, and hold it open until the cows come home; if the home is overpriced, it will not sell. And if you priced it really well, other Agents will know it and will show it. They will be thrilled to show a well-priced home compared to the rest of the homes in the MLS. You will always get lots of activity on your listings if they are priced well.
Develop a reputation in your board for well-priced listings. Don’t be fooled by the myth of condition and marketing. These two factors are not in the driver’s seat. They are merely passengers on the road to a sale. Price is the driver. Tell the seller the truth. Sellers have heard from too many Agents, for far too long, about the value of marketing. They have heard from each of us about the latest gimmick to “beat the market” through a revolutionary marketing technique. Let’s be honest with them: Price is King!
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Stronger Property Demonstration
As a Champion Agent, you need to demonstrate the value of the property to two groups before selling the home. You demonstrate the value of the property to consumers when you show the property to them. You must be able to demonstrate the value, benefits, and features of the property as it relates to what else they could acquire in the marketplace.
By having intimate knowledge of the other competing homes in the marketplace, we can draw a contrast between our house and others. This is especially valuable to our Sellers in homogeneous neighborhoods. When dealing with properties of similar or identical floor plans, the amenities or customization of the Seller creates a greater leverage point for property demonstration. By demonstrating the superior yard, finish work, appliances, or granite counter tops, we can increase or enhance the resale price and resale value for our clients.
Being able to communicate this to a Buyer increases the emotional connection with the home by the Buyer. It causes them not to discount as much about the home and achieve an accurate comparison between the home you’re representing and the others in competition for this Buyer.
The other person we need to demonstrate the value of the home to is the co-op Agent. Our job is to demonstrate value to them when they are working to negotiate our client down on behalf of their client, the Buyer. Their clear objective is to secure the home for their client and try to accomplish the result for their client with less invested.
We can demonstrate or build value through property comparison. A Champion Agent needs to keep abreast of the competition in the marketplace at all times. One of the best techniques is to define the difference between the Seller and the Buyer. If, for example, it’s $5,000 that separates the two parties, if you are representing the Seller, it is in fact $5,000. To the Buyer, it isn’t $5,000, in most cases, unless they are paying cash. For most Buyers, it is borrowing another $5,000. And at a 7% interest rate, it’s $350 a year, or $87.50 a quarter, or $29 a month, or less than a dollar a day. It’s really a minimal difference on the part of the purchaser. Your ability to demonstrate the value of the property and link it with and beak it down to the ridiculous technique is paramount to achieving Champion level status as an Agent. The key question is, “Are you willing to turn off the Seller or get beat out by another offer to save a few dollars a month?”
Here are a couple of scripts to help show you can have a stronger property demonstration for your Seller:
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“Mr. Smith, often Buyers are down to 2 or 3 houses they are trying to decide between. With new competition coming on the market daily, it’s important to win when you get on a Buyer’s short list. The Agent can mean the difference between getting an offer or no offer, through their ability to demonstrate value and benefits of your home. Is that what you are looking for?”
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“Mr. Smith, when an Agent is writing an offer on behalf of a Buyer, or when we are negotiating with a Buyer, it is imperative that your Agent can demonstrate the value of your property compared to the competition. It is clear that we have that skill given my average list price versus sales price is _____% higher than the other Agents. Do you see the benefit to you in that?”
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