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Words of a Champion

Leadership - the lost art!  I realize that is an interesting thought for most people.  The truth is, there are too many managers in the world and not enough leaders.  Great leaders are always great managers, but great managers are rarely great leaders. A manager often tells you what to do, but a leader will also show you how to do it.  Your staff, clients, prospects, and other Agents are looking for you to lead them.  They are looking for guidance, vision, and solutions to the problems they are facing in their lives.  

This is especially true with prospects and clients.  We often shy away from the leadership model when dealing with prospects and clients.  We are afraid of losing the potential business and relationship with them over control.  They are looking for us to take that control to lead them to a successful outcome.  How would you feel about the doctor that let you take total control of your cancer treatment?  We must establish the role of leader from the first moment with the prospect or client. 

Here are a few steps to take to establish the leadership role:

1. Plan out your qualifying questions.

Make sure your prospect qualifying calls are well scripted.  Remember whoever asks the most questions, is in control of the conversation.  The questioner has the ability and skill to lead the other person to the desired result.  Are you talking more than your prospects or clients?

2. Set specific boundaries.

Set boundaries on your availability.  Let your prospects and clients clearly understand when you are available or not available, what your expectations of them are regarding meeting times, how offers are done, and the reality of the current market.  The reality of the market is crucial.  If your client is not prepared to do what the market calls for …they are wasting your time.  Remember you are investing your time…your most precious resource. 

Let me share with you two great books on leadership, they have specific strategies on how to achieve mastery in leadership:

1. Leadership by the Book, written by Ken Blanchard
2. The 21 Infusible Laws of Leadership, written by John Maxwell

These two books will help you build your skills to lead others to the desired outcome.

 

To Your Achievement of GREATER success,

Dirk Zeller, CEO
RealEstateChampions.com

 

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How to Engage an Expired Listing

If you’re a listing Agent, the two biggest questions you face are: Who do I call? and Where can I obtain Seller information? If you’re working to convert expired listings, the answers are right at your fingertips.

Finding expired listings

Follow these steps:

• Ready the daily MLS hot sheet, where each day most MLS systems post newly expired listings under the category, “expired listings.”

• Search the MLS file by entering “expired” as your search parameter.

• See if your market’s MLS system is among the few that allow Agents to identify in advance the date listings are set to expire. Most MLS systems block an Agent’s ability to see when another Agent’s listing will expire; some do not. If your MLS provides the expiration date, you can print information on properties that are due to expire within the next few days and be prepared to move when the time arrives. Don’t jump the gun, though.

Let listings expire before declaring them “dead”

I admit that I’m not a fan of Agents being able to see in advance when a listing will expire. Access to too much information is bad for several reasons:

• Knowing the expiration date can be detrimental to Sellers; when Agents know that a listing is about to expire, showings diminish. For one thing, Agents deem the property “picked over”. Also, they sometimes hold off showing it to prospective Buyer clients, hoping that by waiting they can win the listing and therefore represent both the Seller and the Buyer. 

• Knowing the expiration date can be tempting to some Agents.  Contacting a Seller in advance of a listing expiration is a clear violation of the code of ethics for Realtors, but, unfortunately, that doesn’t stop some Agents who wander into the gray area when they are desperate for a listing. The vast majority of MLS systems block Agents from viewing the expired before its time, but when the date is revealed, a few Agents use the information and lower the standard of ethics for the whole industry. 

Keep an eye on listings that are about to expire and be ready to move quickly to contact the owners, but wait until the expiration date arrives before taking action.

Treating expired listings as high-probability leads

With the Seller’s information in hand, you’re ready to proceed with what I call a high-probability lead.

Leads come from many sources: Internet inquiries, ad calls, sign calls, and cold calls. Some deliver possible leads; others deliver probable leads. The difference lies in the likelihood that the leads will convert to business.

• Possible leads convert less than half the time
• Probable leads convert far more often.

Obviously, it’s most efficient to work probable leads, and it’s hard to find a more probable lead than the owner of a home with an expired listing. The owner has demonstrated the desire or need to sell and the existence of a problem you can help solve. The problem, of course, is that, after waiting out the entire listing period, the owner’s home didn’t sell. The problem, in most owners’ eyes, is that the previous Agent didn’t perform. More than half of the time, these homes go right back on the market with a different Agent ­– why not you?

Engaging an expired listing

Working expired listings is an all-or-nothing game. You can’t proceed in a half-hearted, here-today-gone-tomorrow fashion. Either you work expired listings ­– every day and on a consistent basis – or you don’t. You can’t try to work expireds for a few days when you find yourself low on listings, and then quit for a few weeks only to return to the effort again later. There’s no such thing as a kind-of-expired Agent. If you want to capitalize by converting expired listings, be ready to make working expired listings your way of business life.

As a new Agent, my work life revolved around expireds. I learned that in any given month most listing expirations occurred over the course of a few days, and that is still the case today. Up to a third of all the listings that expire occur over the last few days of the month and the first day of the new month. If you are going to work expireds, get ready to make those days very long work days. I followed this routine:

• I’d arrive at the office around 6:00 a.m. and immediately print out the expired listings. Some days I’d end up with more than a hundred listings on my desk.

• At 6:30 a.m. one of my staff members, who usually arrived at 7:30 a.m., came in to start researching phone numbers that weren’t listed on the MLS printout.  We searched four different sources for missing numbers. We first searched the Coles directory. Then we would move on to the MLS Metro-scan search. If we still did not acquire the phone number, we would go to the internet through Yahoo and people search. Finally, we would package the rest up for the title company to search the tax records and have back in to us before 9AM.

• I have also called the previous Agent at times to ask for the Seller’s phone number and offer them some of the commission if they give it to me. The reason is if I get it and few other Agents have it in the market I have a higher probability of securing the listing.

• Based on gut instinct, market knowledge, and the information contained in the MLS printout, I’d sort the properties, quickly determining why each didn’t sell and putting the ones that offered the highest probability of listing conversion and sale on top. Also, I’d move promising properties located in areas where I really wanted listings to the top of the list.

• I would then practice my scripts and dialogues, spending time to anticipate the objections I might hear from the Seller and practicing how I’d overcome the barrier. I knew before placing a phone call to the owner that my objective was to move beyond any objections and to secure an appointment. 

• After a half-hour’s practice, by 7:45 I was on the phone, aiming to reach people before they went to work and before other Agents began to make contact later in the morning. Today, your schedule is dictated by limitations stipulated by state and national No Call Laws.

• If you cannot secure the phone number because of the No Call laws or you simply cannot find the number, go to the door directly. Most people are better face-to-face anyway. You will see fewer people but be more effective because you are face-to-face.

• My goal was to be the first to get through to the owner of every expired listing, but obviously that isn’t always possible, especially on a day when the pile of listing printouts numbers a hundred or more.

• Once I got through, scheduled an appointment, and established a good connection and sense of trust, I’d warn the owners about what to expect over the course of the 24-48 hours, suggesting that to avoid interruptions they could unplug their phone for the day. I knew that if the owner could dodge the calls over the first day or two following the listing expiration, most Agents would quit trying to get through.

The key to success with expired listings is to work them consistently and with commitment. Most Agents who “work” expireds do so only at the end of the month and, even then, only sporadically. I never took a vacation at the end of the month, because I didn’t want to miss the flood of expireds when they came through. And, in between, I also watched for the three, four, or five listings that expired on a daily basis. Only a small group of Agents work expireds as a way of life, but I can vouch for the fact that that those who do build great businesses.

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Establishing An Ongoing Communication Strategy - Part 2

Picking up the phone

In your effort to stay in touch, add value, and generate referrals, you’ll want to pick up the phone and call some of your contacts weekly, some monthly, and maybe some only one time each year. To organize the effort, create phone lists that are segmented by the level of connection and frequency of contact you have with each group.

• Your star clients and closest friends and associates deserve star treatment. These people are sold on you and the service you provide. They want to help you advance your career. They’re happy to hear from you, and they’re likely to send you more referrals than you’ll get from any other portion of your contact list. It’s okay to treat them differently than everyone else. In fact, it’s good business. Call those in this category monthly or at least one time every other month, and weave a referral request into each conversation.

• Past clients and those in your sphere of influence should be called at least once a year. Unless you have an enormous database, anyone you have serviced in your career should hear from you personally and over the phone at least once every 12 months.

Don’t hesitate to pick up the phone and make calls just to thank people for their business, see how they’re doing, and ask if there’s anything you can do for them. Most consumers, when called by a service provider, are delighted and honored by the contact. If you got a friendly call out of the blue from your insurance agent, attorney, accountant, or financial advisor, you’d be both surprised and pleased. The same is likely to be the case when you call your clients.

Showing appreciation

The National Association of REALTORS® now includes more than 1.3 million members. Obviously, your clients have a choice! Do you thank them often enough for choosing you?

I have to admit that I’ve become aware of how little common courtesy is extended in our society as the result of our efforts to instill the “magic” words please and thank you into the conversations of our five-year-old son, Wesley.  I’m amazed at the positive responses we receive from waiters, grocery store clerks, bank tellers, and other service providers who heap praise about what a polite little boy he is when he displays courtesies that, it seems, should be standard fare in every-day exchanges.

From watching the reactions to my son, I’m more certain than ever that you can set yourself apart by conveying courtesy and appreciation to your clients on an ongoing basis. Express thanks several times during the transaction and again after the closing. Say “thank you” every time clients sign anything like a listing agreement, buyer agency contract, or an offer or counter offer. Frequently affirm that they’ve made a good decision in working with you or choosing to buy their home. And constantly confirm that you appreciate their business.

The power of a thank you note

I truly believe the most powerful force in the business world is a handwritten thank you note.  That may sound terribly “old school” to techno-savvy agents, but it’s exactly what you need to send if you want to set yourself apart.

I remember my mother sitting down with her three boys at the kitchen table each year after Christmas to write thank you notes for the gifts we received.  Over our protests, she insisted that, by accepting the gifts, we accepted the responsibility to write a thank you note.

“Back then” writing thank you notes was a standard operating procedure. Today thank you notes arrive rarely, and as a result, they carry far more weight. They convey, in essence, the message that “you matter so much that I took the time to craft a message with my own hand.”

Exceeding expectations

The keys to exceeding expectations are few and pretty obvious: extend courtesy, say thanks, demonstrate appreciation, and always be professional and keep in mind that little gestures go a long way toward building strong relationships.

You don’t have to go overboard. Small gifts like ice cream cone certificates for the children, movie tickets for the adults, or coffee shop coupons make the point that you appreciate working with your contacts and receiving their referrals, whether they result in business or not.

My only caution is to be sure that every gesture you make further enhances your professional reputation. A few years back, the Wall Street Journal featured a profile on the service styles of three real estate agents. One bought groceries for out of town clients before they arrived to enjoy their vacation home. Another would personally mow the lawns of out-of-area sellers. A third reduced his fees to accommodate client requests.  Each exceeded expectations in a way that lowered the professionalism and status of the real estate agent community. One is a personal shopper, one is a lawn boy, and the last is a discounter. I can’t think of a doctor, dentist, attorney, or accountant that would provide these types of services to exceed expectations.

Keep your efforts in line with your professional image. Getting groceries for out-of-town clients is thoughtful but inappropriate for a professional; helping arrange for a personal shopper is thoughtful and professional.  Mowing the lawn is thoughtful but unprofessional; arranging for a professional yard crew is thoughtful and professional.

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The Desperate Agent Model

Too many Agents operate with Buyers from a desperation or scarcity mentality.  They use the four step Desperate Agent Model, applying it over and over again, hoping that the odds some how miraculously swing in their favor at some point.

1. Talk with the prospect with the objective of building rapport.

   Too often, we believe that, by keeping the prospect on the phone longer and finding commonality or common ground, we will be able to secure their business.  We feel that if they like us or think we are nice, we raise the probability of a sale.  We want to keep them on the phone long enough to secure their phone number so we can follow-up with them.  Our objective as a desperate Agent is to secure a lead.  A Champion Agent’s focus is not securing the lead but securing the appointment.  The lead has limited value; the appointment has significant value.

2. Offer to send the prospect . . . stuff

   The average Agent wants a phone number and e-mail address, so they can send the prospect stuff.  There is nothing wrong with acquiring full contact information of a prospect.  The problem arises when that is our primary objective, rather than getting an appointment.  When sending them properties via e-mail becomes our “be all, end all” form of prospect conversion, we have lost the game of sales.  An e-mail contact’s conversion ratio is significantly diminished over a face-to-face or even phone contact.

   The use of prospect matching software for Buyers is so over-used that the perceived value to the consumer is negligible.  It’s not a unique feature to any Agent in the marketplace.  We often use this excellent tool to make up for our lack of phone contact.

   There is no substitute for the call.  I worked with a dynamic young couple in the Atlanta area.  They are effective Internet marketers.  They had about 300 leads that they even had phone numbers to.  These 300 leads were getting property match information based on their preferences as homes came on the market.  They produced a couple of deals a month from this Internet strategy.

   When I began to work with them, I asked them why they hadn’t called all 300 of these people that they were “working” with.  They said, “We get a few deals a month from this; why bother.”  I told them to call all 300 in the next week.  They called 79 and reached 39 people at home.  Of those 39 they talked to, they set 16 face-to-face presentations.  That is a 41% close ratio.  They had conducted 11 face-to-face Buyer interviews while committing 7 to a Buyer’s Agency contract.  That is a 64% close ratio.  They had already sold two homes but expected to sell several more in the next few weeks.  They ended up selling six homes in the next 30 days out of their 7 clients, 11 appointments, and 39 leads.  They also found out that, of the 40 people they tried to reach for a few weeks, when finally contacted, had already bought and sold with another Agent. 

   The sending stuff philosophy of sales cost these Agents in excess of six figures in Buyer side commissions alone.  When they booked the appointments, the probability of their income and, indeed, their actual income exploded.

3. Hope that your stuff is better than that of the five other Agents who are sending them stuff.

   Unless you can prove and clearly show that your marketing materials, philosophy, sales strategies, and track record are superior, it will be rare to convert a Buyer via properties you e-mail to them based on a profile. 

   If you secured them through an ad call, sign call, open house, or the Internet, you must assume that other Agents have all the information you do.  If you manage to convince them to share their e-mail address, you must assume that five other Agents have it as well.  Whoever meets them face-to-face wins.

   We all send the same property matches because they are receiving the same property from every Agent they come in contact with.

4. Pray that you eventually get an appointment.

   There was a huge difference in results when my couple from Atlanta went after the business by scheduling an appointment.  They stopped waiting for the prospect to call when they were interested in a home.  They went after the prospect other Agents knew about but were waiting for the call, just as they used to.

   When I say appointment, I am not talking about an appointment to show property.  I am talking about an appointment to conduct a Buyer interview; to determine the desire, need, ability, and authority of the prospect; to assess the odds of you servicing this client and earning a commission.  Pretend for a moment, you were a personal injury Attorney.  As a personal injury Attorney, you offer a free consultation.  The reason you want the consultation is to determine the probability or odds of winning the case.  A Champion Agent’s focus is the same.  We are evaluating the prospect based on the odds of achieving the client’s goals and serving them well.  We also are evaluating how much we will earn, how soon we will earn it, and what it will cost us in time, effort, energy, emotion, and dollars invested.

   A Champion Agent knows the primary objective of a sales call, either inbound or outbound, is an appointment. The truth is that Champion Agents have more appointments than other Agents.  They make more money because they have more appointments.  Lower performing Agents look at the Champion Agents in awe.  They think there must be something magical about the way they operate.  The truth is they are more fundamentally sound in their philosophy, skills, and focus.  They know clearly the objective is a greater number of appointments.

   Lower performing Agents are too much in need of “The Deal”. 

   They often show need, even desperation to secure a new client.

   Champion’s Rule:  “When you need it more than the prospect, you lose control.”

   If you need the deal more than the client needs you . . . you have lost.  It’s hard to take the risk, create a little tension, close assertively if you need the deal to cover your mortgage or other bills.  To be effective and successful in sales, you have to be willing to risk losing the prospect or client.  This willingness is first in the form of asking people for an appointment to meet.  It is followed with the conviction that you ask the prospect to work with you using the service system that you have laid out for them.  You are the expert, so why not use your system for service?  It’s hard to guarantee successful results if you use someone else’s system or approach to home purchasing, especially the Buyer’s.

A Champion Agent is an Agent in command.  They are in command of the prospect, their client, the service they provide, and how they provide it.  They are also in command of their time and knowledge.  Most other Agents are on demand.  They are at the beck and call of the prospect, client, other Agent, or other people in the transaction like the Lender, Inspector, and Appraiser.  The need of the deal can cause an Agent to lose all control.  Being willing and able to walk away from a prospect if they don’t follow your procedures in doing business increases the odds of you earning your value.  As an Agent trying to reach the Champion Agent level, you need to act as if you are a Champion now . . . already.

 

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