In the Zone | V II i 4 | Eliminate Listing Competition
In the Zone | Focusing on the 4 Profit Pillars of Real Estate
Volume II Issue 4
1. What Successful REALTORS(R) Are Saying
2. Motivational Quote of the Month
3. Prospecting: How to Keep Your Golden Geese Happy
4. Negotiating: Four Basic Approaches to Turning a Hard-Boiled
Negotiator On to the Merits of Your Offer
5. Listing: Five Ways to Eliminate Competition at Your Next
Listing Appointment...Before You Even Arrive
6. Selling: An Important Lesson About Closing...or Should I Say
How NOT to Close
Hey,
Warning: forward this newsletter at your own risk.
I only sound the alarm to emphasize the powerful and unique
advantage the listing strategy I'll share with you this month
will give you over your competition...if it doesn't end up in
their hands.
It's a strategy of how - with just a little homework - you can
easily beat out your competitors in every listing appointment.
Furthermore, this issue will also help you list and sell more
homes with straightforward, useful prospecting, negotiating and
selling ideas, tips and strategies. Like the story of how an
agent gets a listing while saving her full commission fee...even
though the seller demanded she lower it.
You'll hear the latest from the prospecting trenches on how to
encourage more leads to refer more leads (a process known
as "compound prospecting"). And by the way: this always works.
Finally, read about the closing tactic that is arguably the most
costly mistake an agent can make - yet agents of all stripes are
using it right now. (You'll probably kick yourself when you
realize how often you use it.)
Relax and read. Then practice and prosper.
Remember: it's not only the focus and study, but also the
application and practice of the ideas in the four most
profitable pillars of real estate that will put you on the
track to consistent, steady growth. See for yourself.
Here's to your success,
Gary Elwood
Proquest Technologies
1-800-959-3959
Send prospecting, negotiating, listing or selling ideas,
strategies and tips to inthezone@proquest-tech.com.
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1. What Successful REALTORS(r) Are Saying
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"I just wanted to let you know that one of the main reasons
I am using your service is just that, SERVICE!..I have been
provided such excellent technical service by your staff, that
I had no reason to look at any other provider. I also wanted
to thank you for your assistance in helping me with a new
account today.
"Please keep up the good work."
Best regards,
Carey McGrath
If you want to learn how our client service department can help
you succeed, then read our 21-page online report "How to Close
More Transactions in a Month Than You Now Close All Year":
http://www.realestategrowth.com/success_stories.asp
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2. Motivational Quote of the Month
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"In the long run, we shape our lives, and we shape
ourselves. The process never ends until we die. And
the choices we make are ultimately our responsibility."
Eleanor Roosevelt
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3. PROSPECTING: How to Keep Your Golden Geese Happy
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In regards to the source of their business, where is it every
agent dreams they would like to be someday?
If you said "100% referral," then you answered correctly. Imagine
no more time wasted trying to convince strangers you are the
right person for the job.
Instead, the referral lead is presold. Trust and confidence
already exist. Sounds good, right? Well, how do you get your own
practice closer to 100% referral?
First, one of the best ways to get more leads is to capture them
through a response hotline marketing system like Proquest
Technologies.
Once you have the leads, the idea is to get more leads out of
those leads. It's what Craig Forte of Forte Communications
calls "compounding prospecting."
Here's a tip to getting more leads from the leads you already
have...
The moment a lead comes in and you've built report, encourage
that lead to refer two, three, four or five new leads...and
intice them with a small incentive.
Don't get caught-up with the idea that they're not good leads
until they convert. Wanda Loskot of Sane Marketing says,
"Regardless, you need to reward the BEHAVIOR of your network
people, so that in the future the same person in similar
situations again thinks of you instead of someone else."
The cost of the small incentive? Dollar, maybe two, no more than
three. The mileage? Unbelievable.
The gifts can be fancy pens with your name and phone number. A
small box of chocolates.
I have a friend who passes out a small newsletter report. Another
gives chocolate covered strawberries to women and imported beer
to men.
The bottom line: for every lead you get, give something back.
Whatever it is - a "thank you" note or a Blockbuster (R) gift
certificate - the idea is to give something back. This way you
reinforce the behavior that is profitable to your business.
Next Month: Eight Tips to Following-Up and Getting What You
Want Every Time
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4. NEGOTIATING: Four Basic Approaches to Turning a Hard-Boiled
Negotiator On to the Merits of Your Offer.
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Picture yourself sitting in the living room of potential clients.
The sellers - husband and wife - responded warmly to your
presentation and connected with you personally.
Recognizing the time is right you say, "Mr. and Mrs. Seller, if
everything makes sense, how about we get the ball rolling and
complete the paperwork?"
That's when the husband says, "Wait a minute. There's one more
thing. I just can't justify paying a 6% commission fee."
What do you do?
There are four basic approaches to handling the hard-boiled
positonal bargainer:
+ In our example, the hard-boiled negotiator is probably
expecting an attack, criticism or out-right refusal. Instead,
seek out the principles and interests which his statment
reflects, and try to improve it.
"Mr. Seller, obviously you wouldn't have said that if you
didn't have a good reason to, so help me to understand why
you think we should lower our commision fee."
+ Don't defend your ideas. Instead, invite criticism and
advice. This way you leave the door open for negotiations
and turn criticism into the process of reaching an agreement.
"6% is too high and you feel my hand would be too deep into
your pocket? I understand. Can you share with me what you
think is a fair fee for service?"
+ Recast an attack on you as an attack on the problem. When
the other side attacks you personally, resist the
temptation to defend yourself or attack them. Instead, sit
back, relax and allow them to let off steam.
+ Ask questions and pause. Your two best allies in any
negotiation will be questions and silence.
(Important: You must deliver the following lines with
confidence. Otherwise you may invite them to actually
consider the alternatives you are suggesting - which you
don't want.)
"Mr. Seller, I've learned something over the years. People
want three things when they sell their homes. They want
to sell their home for more money, in less time and with
as few hassles as possible. I'm curious, if these aren't
your concerns, then what's stopping you from going with a
cut-rate, discount brokerage...or even selling it own your
own?
(Pause.)
"For your long term happiness on one of the most important
decisions you will make in your life time, if I can show you
how you will actually net more money, sell your home faster
and with fewer hassles, how would you feel about paying a
6% commision?"
(Repeat it on purpose. Slow down to create empahsis.)
"Again, realizing that at the end of the day it will put
more money in your pocket, faster and with fewer hassles,
if I can show you how to do that, will you be okay with a
6% fee?"
Now be quiet. Silence will work magic. Most people feel
uncomfortable in silence. Most people will feel compelled
to break the stalemate and answer your question or come up
with a new suggestion.
In "Getting to Yes, Roger Fischer and company say, "Some
of the best negotiating you will ever do is when you are
not talking."
The lesson to learn with this four step process is to use the
energy and force of other people to your advantage. Think of it
as negotiating juijitsu.
Next Month: How to Tame the Dirty Bargainer
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5. LISTING: Five Ways to Eliminate Competition at Your Next
Listing Appointment...Before You Even Arrive
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Sounds alomost impossible, doesn't it: eliminating competition
before you even set foot in the door? Well, it's not. In fact,
it's rather easy...if you're willing to be different.
How can you be different? Here are five ways:
Pre-Presentation Seller Briefing
+ Insist on being the last in a line of presentations.
+ Then, find out when all of the other presentations are
(keep a note of this).
+ Call the sellers every day there is a listing presentation.
+ Ask them if your appointment is still on.
+ Finally, ask them to promise not to decide on an agent
until all presentations are done.
Pre-Presentation Research
+ Print a quick summary of market activity for the home's
neighborhood.
+ Look for identical matches in Actives, Solds, Under
Contract, Pending, Withdrawn and Expireds. (This summary
will help you familiarize yourself with the neighborhood,
which you can reference during the presentation.)
+ Take digital photos of the property, comparable properties
and the subdivision entrance. (This portfolio of photos wil
allow you to view the condition of the property and make
positive and negative notes.)
Pre-Presentation Questions
+ Look at the seller's home and ask yourself these questions:
What are the negatives?
Does it back to a major road?
Is it under power lines?
Does it need paint?
How does this compare to other homes in the neighborhood?
Pre-Presentation Materials
+ Create the CMA from your MLS as a Web or PowerPoint
presentation. Have a color print copy, too. (EVeryone else
will do a black-and-white CMA.)
+ Personalize the print presentation on a color-bound material
with "Especially prepared for <their name>." (It's easy to
create a template in MS Word, MS Publisher, HP Real Estate
Software or IMPREV.)
Pre-Presentation Recording
+ Create a recording on one of your 800 extensions and test it.
+ Read the full listing presentation script at:
http://www.realestategrowth.com/listing_pres.asp
Bottomline, when you are thoroughly prepared, you immediately
distance yourself from every average agent (Pareto Rule: two
agents out of ten are above average. The rest: barely average).
And when you arrive it's only a matter of moments before your
sellers recognize you were the only rational choice the whole
time.
Next Month: The Five Sure-Fire Steps to Scheduling Appointments
Over the Phone
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6. SELLING: An Important Lesson About Closing...or Should I Say
How NOT to Close.
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Some people will do anything for a client, sale or commission.
Unfortunately, giving away too much could cost you.
Here's a story to illustrate what I mean:
A few years ago, on a recommendation from a friend, someone I
know invited a real estate agent over to help sell his house.
He was just going through the formal process...but first he had
a concern.
The agent was new to real estate, and what he really wanted was
someone with a little more experience. He shared this concern
with her and she replied, "I assure you that my broker has been
in the business for twenty-seven years and his experience will
be at my complete disposal."
More out of ignorance than anything, he didn't respond.
Uncomfortable with the silence, she said, "I will sit open
houses for you."
He thought that was a given, but it got him thinking that maybe
she's in a giving mood. He decided to test the waters. "Thank
you, what else can you do?"
She thought for a moment then said, "I'll pay to have your
furniture moved to the new house."
"Now were talking. Thank you. What else?" he said.
In a bit of desperation, she said, "Isn't that enough?"
That night she made a terrific mistake: not only did she miss
the opportunity to close the agreement when it was ripe, but
she assumed the more value she threw in, the closer she got to
the deal.
However, her approach was counterproductive and created two
problems. In addition to encouraging my friend to ask for more,
she cut her commission and, in the long run, her profit - (here's
the kicker) when it wasn't necessary.
If she had simply said, "Mr. Seller, if I assure you my broker -
who has twenty-seven years experience in this business - will
assist me every step of the way, will that work for you?" My
friend would have said, "Sure." The listing would have been made
and she would have saved her full commission.
Instead, she lost money - the very thing you don't want to do if
you want to be successful in any business.
Next month: How to Take Control of the Selling Situation
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Proquest Technologies, Inc.
inthezone@proquest-tech.com
1-800-959-3959
In the Zone: Focusing on the 4 Profit Pillars of Real Estate
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"In the Zone" is a Proquest Technologies publication.
(C) Copyright 2005. Proquest Technologies.
