In the Zone | vV i5 | What Can Psychologists Tell You About Nibbling
In the Zone
Volume V Issue 5
- What Successful REALTORS® Are Saying
- Motivational Quote of the Month
- Prospecting: How to Get More FSBO Listings Without Sales Pressure by Ari Galper
- Negotiating: What 2 Psychologists at a Canadian Racetrack Can Tell You About Nibbling
- Listing: When Should You Approach Expireds? (The answer may surprise you...)
- Selling: Discover How to Boost Sales by Using a Few Simple Social Scientist Tools
Dear Friend and REALTOR®,
A 2002 Forbes magazine article entitled "The Psychology of Success" explains how researchers and psychologists studied over 800 entrepreneurs who'd been in business for themselves for less than three months. In the course of the study, many conventions about entrepreneurs were thrown out the window, like the requisite devil-may-care attitude towards risk.
But there was one big difference between those who go into business for themselves and those who don't. Entrepreneurs don't care what other people think about them. "They really don't care as much," one researcher said. "They're just happy to go ahead and do what they're doing."
Statistically speaking, then entrepreneurs like you would seem to have two things in common: you have trouble imagining failure, and you don't care what others think.
Like most people, you probably have had your share of failures, defeats and struggles. And like most people, you will probably continue to have your share. But what separates you from most people is what you do during those struggles or after those defeats...
That's why in this month's In The Zone you'll notice a psychological thread through all of our articles: a thread of using psychological tools to overcome obstacles in the business of real estate.
For example, in this month's Prospecting article you'll discover four sales behaviors you must eliminate from your presentation if you want to list FSBOs.
Then, two psychologists from Canada will tell you what they know about nibbling and negotiations in the Negotiation article. (And no, this is not about the South Quebec Diet or Ontario cuisine. It's about a subtle, effective negotiation technique that will make people more receptive to your suggestions.)
In this month's Listing article you'll find out that what you thought you knew about Expireds and how to approach them was wrong.
Finally, we'll introduce you to the idea of boosting sales using tools from an entirely different field: sociology. That's in this month's Selling article.
Enjoy!
Best wishes for your success,
Gary Elwood
Proquest Technologies
1-800-959-3959
P. S. Be sure to check out our Listing, Buyer, Marketing and Advertising Reports for new articles published weekly. We've published three recently on our Home Buyer Tips pages. Read them today for easy money-making advice.
Any questions about anything you've read about in this newsletter?
Just call 1-800-959-3959 and ask to speak to Brad or Ann.
Find past issues of ITZ here:
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1. What Successful REALTORS® Are Saying
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"I used to carry 12 for sale signs in inventory. After proquest we increased it to 18. Not enough! I had to just place another order for 12 more today! As a team we are averaging 4 Closings a week. It seems like nearly every day I am depositing another check. My team has begged me to pull back on the advertising. We came out with a better solution, they have all hired real estate assistants! Sellers come to our office and list! We are charging our full 7% and getting it 90% of the time. This week we have listed 4. It’s Tuesday! If you’re thinking about proquest stop thinking and start acting this will not last forever. Incredible results! Over 450 calls a month. P.S. we pay 25% on referrals in Las Vegas and want to network with other proquest users. Why? Because you guys are the smart ones."
Chris Giddings | Realty Executives of Nevada | NV
If you don't already know, see how Provantage can become a key, indispensable ingredient to your success—like it is for Chris Giddings. Click here for more information.
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2. Motivational Quote of the Month
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"Cushion the painful effects of hard blows by keeping the enthusiasm going strong, even if doing so requires struggle."
Norman Vincent Peale
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3. PROSPECTING: How to Get More FSBO Listings Without Sales Pressure by Ari Galper
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Pressure—aggressive or hyper-enthusiastic behavior—puts people on the defense.
On the other hand, you'll find that people will almost always be more open to talking with you when you approach them in a helpful, friendly way. That's because you're not pressuring them. It's a good idea, then, to consider eliminating pressure entirely from your approach.
So let's consider four different elements of pressure that can be present within your approach, and discuss some things you might do instead.
1. Get-the-Listing Mentality
Every time you talk with a FSBO homeowner, it's natural for you to hope that you'll get the listing. But if you focus on that as a goal, the other person will sense your expectations and feel the pressure of your hopes. It's a good idea, then, to release your goal of acquiring the listing. Focus instead on building a human-to-human connection. Engage in a warm, friendly conversation. Let them know you're not trying to talk them into something, but trying to discover whether or not you can help them.
2. Sales Pitches Equal Sales Pressure
Pitches are another form of pressure that can cause people to back away from you. So instead of using a pitch, shape your introduction around a problem or issue that the other person is probably experiencing. For example, being a FSBO often means spending too much time with unqualified people, answering calls at all hours, and waiting a longer period of time for the house to sell. So step into their world and find out if they're open to discussing some possible alternatives with you.
3. Forcing the Conversation
Whenever you try to take charge of a conversation, it almost always feels somewhat manipulative to the other person. So again, they back away from you.
It's better to eliminate this subtle form of pressure by just talking with the other person as you would a friend. You wouldn't try to talk a friend into something that's not good for them, right? In the same way, you wouldn't want to talk a homeowner into making a decision that's not best for them. Let things move with a natural sense of rhythm, and be okay with letting them take the lead.
4. Artificial Enthusiasm
When you're approaching conversations with high enthusiasm, there's the subtle hope that the other person will just be swept up in all that energy and go along with you. But really, it forces them to choose whether or not to "buy into" your enthusiasm. And unfortunately, most people will put on the brakes instead. Once this happens, it's almost impossible for you to go beyond another sentence or two. So it's really best to talk naturally and normally, in your regular conversational style.
Eliminate the Pressure
It's important, then, to stay alert to any pressure that might work its way into your conversation. Speak normally and naturally, and remember that your primary goal is to discover if you can help someone solve a problem they're having.
About the Author: Ari Galper is the Founder of Unlock The Game™, the only sales program designed to eliminate sales pressure. Want to learn more? Get FREE Access to 10 Audio Mini-Lessons (sent via e-mail) from the teleseminar that put the old 'sales gurus' back into sales pre-school.
Just visit http://www.UnlockTheGame.com.
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4. NEGOTIATING: What 2 Psychologists at a Canadian Racetrack Can Tell You About Nibbling in Negotiations
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Power Negotiators know that by using the Nibbling Gambit, you can get a little bit more even after you have agreed on everything. You can also get the other person to do things that he had refused to do earlier.
Why is Nibbling such an effective technique?
To find out why this works so well, a couple of psychologists did a study at a racetrack in Canada. They studied the attitude of people immediately before they placed the bet and again immediately after they placed the bet. They found out that before the people placed the bet, they were uptight, unsure, and anxious about what they were about to do. Compare this to almost anyone with whom you negotiate: They may not know you, they may not know your company, and they certainly don't know what's going to come out of this relationship. Chances are they're uptight, unsure and anxious.
At the race track, the researchers found out that once people had made the decision to go ahead and place the bet, they suddenly felt very good about what they had done and even had a tendency to want to double the bet before the race started. In essence, their minds did a flip-flop once they made the decision. Before they decided, they were fighting it; once they made the decision, they supported it.
So one rule for Power Negotiators is that you don't necessarily ask for everything up front. You wait for a moment of agreement in the negotiations, then go back, and Nibble for a little extra.
You might think of the Power Negotiating process as pushing a ball uphill, a large rubber ball that's much bigger than you. You're straining to force it up to the top of the hill. The top of the hill is the moment of first agreement in the negotiations.
Once you reach that point, then the ball moves easily down the other side of the hill. This is because people feel good after they have made the initial agreement. They feel a sense of relief that the tension and stress is over. Their minds are working to reinforce the decision that they've just made, and they're more receptive to any additional suggestions you may have.
Always go back at the end to make a second effort on something that you couldn't get them to agree to earlier.
Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople.
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5. LISTING: When Should You Approach Expireds? (The answer may surprise you...)
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Here's the scenario: you're checking the MLS hot sheet for expired listings...it's a good day. More than 20 show up. You grab the phone and start dialing for dollars.
It's a scene in thousands of real estate offices every day. It's also one of the biggest time wasters in an agent's life. Yes, you read that right, it's one of the biggest time wasters you can do.
Nothing against expireds. In fact, expireds are a perfect target for agents because these are people who've proven they want to sell and move. And actually, I believe if you approach expireds the right way, you can make a darn good living on them and them alone.
But the problem is timing. Take careful note here: most agents are picking the fruit before it's ripe.
What happens when you join hundreds of your fellow agents all jumping at—and reaching for—the same apple? You get trampled. You get frustrated. And you get lost in the crowd.
Here's a stat for you to nibble on: a newly expired listing gets anywhere from 15 to 25 calls from agents a day when it first becomes expired.
Consider the homeowners whose listing has just expired. First, because their home didn't sell, agents are likely not at the top of their "I love" list. They have that bad sour apple taste in their mouth. They're upset. And most importantly, they didn't get what they desperately wanted.
It's a time when emotions run high. So here's the secret to making a living with expireds: WAIT. Wait and let the fruit ripen before you start picking. Let homeowners get their bearings back. Let the wound heal.
How long? I say give it one month.
"But oh, all the expireds will be gone. There won't be any left in a month."
Baloney! There are many homes out there that have been off the market for many months. And believe me, agents get shunned and shut out by the newly expireds every day.
By waiting a month you automatically distance yourself from the pack, and—here's the kicker—you don't appear desperate. Nobody wants to hire a desperate agent.
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6. SELLING: Discover How to Boost Sales by Using a Few Simple Social Scientist Tools
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If you understand people then you understand real estate.
Because if it's been said once, it's been said a million times: real estate is a people business. And oh how much easier work and life would be if we just understood people.
Yes, humans are terribly complex, often unpredictable and sometimes just plain difficult. There's the client who insists on knowing everything (and I mean everything) you do as you go about selling his house. Enough to drive some Realtors absolutely bonkers.
Then there's your buyer's agent who doesn't tell you anything unless you pry it out of her with a crowbar.
People. You just never know.
I really believe real estate is a people business, then any effort you make at better understanding yourself and how others tick will make your business flow and your bank account grow.
And fortunately social scientists have developed tools that can help you shed light on the mystery of human behavior and get a better handle on personalities—yours and others.
Next month we will explore some of these great tools.
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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
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"In the Zone" is a Proquest Technologies publication.
(C) Copyright 2007, Proquest Technologies.
