Regardless of how you generate them, leads have to be managed. After all, the number one complaint from consumers is that we don't call them back. So to avoid that trap, here are some simple ideas regarding Lead Follow Up!
•Have a definition of what a lead is. How long will you keep a lead in your system? Studies show the longer you spend following up on leads, the less business you do each year. Answer this question...A lead is someone who NEEDS to buy or sell within _______ days? My personal recommendation is no more than 30 days.
•70% of your business should come from lead follow up. That's right...it's that important. 70% of the time you will have to follow up with that lead to get an appointment set. 30% of the time you will set the appointment on the first call. So here's a scary thought...how much business are you losing by not having a great system?
•Lead Follow Up should be a daily activity posted in your schedule. Plan to spend 30 minutes to an hour a day calling your leads and setting up the appointment. A great time to do it is first thing in the morning. Call your hot leads and get some commitments which will start your day off with a great "high."
•Remember leads have NO VALUE. Where do you go with your lead system or file and say, I'll take a paycheck please...I've generated all these leads, now pay me. Well, not in this business. Leads don't represent security. They have no value until they are a closed deal. Over-managing and over-protecting gets you where exactly?
•The purpose of your LFU call is to SET AN APPOINTMENT. Period. Nothing else. Each time you follow up with a lead the goal is to get the appointment set. To make a sale you have to do a presentation. To do a presentation, you have to be on an appointment. To have an appointment, you need to generate a lead and get the commitment to meet. Simple as that. Anything else is just being a free information provider. Now, I do understand that you must give out some information to establish credibility and rapport. There is a difference between building trust and providing free information. Most of the time, you know when you've crossed over.
•Accept the fact that you will cycle through a large number of leads each year. Imagine if everyone you talked to bought a house. You could do all your business in January and take the rest of the year off. :) Since that is unlikely to happen, it's important to quickly move to the next lead when you recognize one is dead. As the saying goes, "when the horse is dead, dismount."
•Having too many simply hides the good ones from you. Accept the fact that if you don't qualify your leads, you will end up with a lot of "Fools Gold" rather than actual leads. For each lead, identify the date you will discard them if they haven't set an appointment. Not only will that help you get rid of the bad, it will force you into action knowing you only have that amount of time to convert them.
Implementing these ideas will help you convert the good ones faster. What are your thoughts on Lead Follow Up?
Friday, August 20, 2010
Tuesday, August 17, 2010
4 steps to a Price Reduction
So one of the biggest challenges my clients face is getting their listings priced right and sold. I imagine that is an issue we all have right now. The 4 steps I have listed here is a pretty good system to get the seller to adjust the price.
Here are some important points about working with sellers:
•Regular communication is a must. If you're not talking to them weekly, they will have less trust and rapport. They will be more resistant to taking your advice.
•Alternate your communication with email and phone. One week email with some kind of market information, even if nothing happened with their home. The next week call to speak to them.
•Motivation. Each time you call and speak to the seller, start your call talking about their motivation for moving. Motivation changes, sometimes it goes up, sometimes it goes down. The only way to find out what's happening is to ask. Just make sure their plans and time frame are the same. That way, they know you're paying attention and you're also reminding them of why they're selling.
•Accountability. When they hired you, you probably gave them a list or some idea of what you do to get the home sold. Don't let them assume you're doing everything. Tell them. When you email or call, let them know what activities you've done so they can see you're working. Since you're working and the home isn't selling, they will be less likely to blame you for it and more reasonable when you bring up the price.
•Use questions. Telling is not selling. Good selling is asking a series of questions to get the other person involved in the conversation. If all you're doing is calling them up and telling them what's happened and what they need to do, chances are they're not listening. Telling creates resistance. If you want them to see what's happening, they have to be educated on it. Asking questions gets them involved.
Here's the process.
•Email over in advance the information. Or, if face to face, take it with you.
•Make sure it's easy to read so they can follow along.
•Start off with their motivation.
•Once you ask the questions, shut up! Let them answer, no matter how long it takes.
You'll need the following information (already typed up for them to see)
•How many days has the home already been on the market?
•How many showings have we had?
•How many offers have there been?
•How many similar homes actually sold since you've been listed?
Now let's put it all together
"Hi Mr. Seller, it's Ilona with XYZ Realty, how are you? I'm calling about your home for sale, is this a good time? Great, do you have the information I emailed over handy? If not, can you grab it. Perfect. Now just to double check, you and your wife still need to move to _________ and you'd still like to be there by ____________, correct? Great. Let's review the information.
Based on what I sent you, how many days have we already been on the market? 75.....That's right. And in those 75 days, how many showings have we had? 5....Exactly. And of those 5 showings, how many offers did we receive? 0.....OUCH! No offers! Now Mr. Seller, how many similar homes actually SOLD since we've been listed? 5....Right. And looking at those properties, were their prices higher or lower than your current price? Lower. Exactly. So based on this, what do you think the market/buyers is/are telling us about your price? I guess it's too high. Right. So what price do you think we should use to get you on this SOLD list?"
It's important to let them tell you the price because then it becomes their idea. They usually won't argue with themselves. Now, if their price suggestion is too high...have them refer back to the SOLDS and ask, based on what we've seen is that price really going to get the job done? Go back over it until you've got them in agreement. If they won't agree, no problem, same exercise in 2 weeks! They'll get it eventually.
For more help with this, email me. I have some additional scripts.
Here are some important points about working with sellers:
•Regular communication is a must. If you're not talking to them weekly, they will have less trust and rapport. They will be more resistant to taking your advice.
•Alternate your communication with email and phone. One week email with some kind of market information, even if nothing happened with their home. The next week call to speak to them.
•Motivation. Each time you call and speak to the seller, start your call talking about their motivation for moving. Motivation changes, sometimes it goes up, sometimes it goes down. The only way to find out what's happening is to ask. Just make sure their plans and time frame are the same. That way, they know you're paying attention and you're also reminding them of why they're selling.
•Accountability. When they hired you, you probably gave them a list or some idea of what you do to get the home sold. Don't let them assume you're doing everything. Tell them. When you email or call, let them know what activities you've done so they can see you're working. Since you're working and the home isn't selling, they will be less likely to blame you for it and more reasonable when you bring up the price.
•Use questions. Telling is not selling. Good selling is asking a series of questions to get the other person involved in the conversation. If all you're doing is calling them up and telling them what's happened and what they need to do, chances are they're not listening. Telling creates resistance. If you want them to see what's happening, they have to be educated on it. Asking questions gets them involved.
Here's the process.
•Email over in advance the information. Or, if face to face, take it with you.
•Make sure it's easy to read so they can follow along.
•Start off with their motivation.
•Once you ask the questions, shut up! Let them answer, no matter how long it takes.
You'll need the following information (already typed up for them to see)
•How many days has the home already been on the market?
•How many showings have we had?
•How many offers have there been?
•How many similar homes actually sold since you've been listed?
Now let's put it all together
"Hi Mr. Seller, it's Ilona with XYZ Realty, how are you? I'm calling about your home for sale, is this a good time? Great, do you have the information I emailed over handy? If not, can you grab it. Perfect. Now just to double check, you and your wife still need to move to _________ and you'd still like to be there by ____________, correct? Great. Let's review the information.
Based on what I sent you, how many days have we already been on the market? 75.....That's right. And in those 75 days, how many showings have we had? 5....Exactly. And of those 5 showings, how many offers did we receive? 0.....OUCH! No offers! Now Mr. Seller, how many similar homes actually SOLD since we've been listed? 5....Right. And looking at those properties, were their prices higher or lower than your current price? Lower. Exactly. So based on this, what do you think the market/buyers is/are telling us about your price? I guess it's too high. Right. So what price do you think we should use to get you on this SOLD list?"
It's important to let them tell you the price because then it becomes their idea. They usually won't argue with themselves. Now, if their price suggestion is too high...have them refer back to the SOLDS and ask, based on what we've seen is that price really going to get the job done? Go back over it until you've got them in agreement. If they won't agree, no problem, same exercise in 2 weeks! They'll get it eventually.
For more help with this, email me. I have some additional scripts.
Friday, August 6, 2010
"I don't want to give my house away!"
Ever heard that from a seller? It's one of the common objections we hear in today's market. Funny thing is, there's only one way to give your house away. That's to give it to the bank. Otherwise, what the seller is doing is simply pricing the property to sell in today's market.
Yet how do you convince the seller of that and remove the emotion of the decision? Statistics are important. Asking questions is also key. Knowing their motivation and options is another way.
One method I have found to be very helpful is to always approach the seller from a position of contribution rather than desperation. Then present them with the options they have. There are really only 3 or 4 options they can choose. Show them what they are and based on their motivation have them pick one. It doesn't really matter which one they pick, it's their choice. Hopefully with the right statistics and education from the agent they will pick the one that makes the best sense.
So here are the options:
1. Give the house back to the bank.
2. Stay put. If they are solely price motivated, how many years will it take for them to get their price? In my market it's about 7 years before prices will be higher than they are today. That's based on today's stats. So, can they stay for 7 more years? What will it cost for them to stay that long.
3. Price it right and get it sold today. Most of the time, when you calculate what you're asking them to drop the price today and what it will cost to stay and wait it out, the price drop today will be less or the same. So I ask - "Since it seems either way it will cost you _________ amount, the question is do you want to do it slowly or get it over with?" Usually they want to get it over with.
I also remind them if they are re-investing, they will really not lose anything. See, they are simply transferring their investment from one house to another. Eventually the market will appreciate and they will make money. I ask them - "When the market returns and prices go up, do you want to be in this house or the new one?" Guess again which they choose.
Another great point is that it is nearly impossible to under sell a home today. Imagine the following scenario. You have a listing that realistically will sell in today's market for around $250,000. That's fair market value. What would happen if you listed it at $225,000? Would you get multiple offers? Sure. What happens when multiple offers occur? Buyers get so emotionally charged about the property they start bidding higher for it. At the end of the bidding, where will you likely end up? Close to or at the $250,000 price. So you see, buyers won't allow the home to be "given away" in most cases.
Let's also remind ourselves that market value is defined as - What a buyer is willing to pay and a seller is willing to sell for on an open market. I like to add to that definition in today's times - what a lender is willing to lend on it. I'm finding a few cases where the buyer is willing to pay higher than the appraiser thinks it's worth, thus driving the price down again to keep the deal together.
For more objection handlers on pricing, contact me.
Yet how do you convince the seller of that and remove the emotion of the decision? Statistics are important. Asking questions is also key. Knowing their motivation and options is another way.
One method I have found to be very helpful is to always approach the seller from a position of contribution rather than desperation. Then present them with the options they have. There are really only 3 or 4 options they can choose. Show them what they are and based on their motivation have them pick one. It doesn't really matter which one they pick, it's their choice. Hopefully with the right statistics and education from the agent they will pick the one that makes the best sense.
So here are the options:
1. Give the house back to the bank.
2. Stay put. If they are solely price motivated, how many years will it take for them to get their price? In my market it's about 7 years before prices will be higher than they are today. That's based on today's stats. So, can they stay for 7 more years? What will it cost for them to stay that long.
3. Price it right and get it sold today. Most of the time, when you calculate what you're asking them to drop the price today and what it will cost to stay and wait it out, the price drop today will be less or the same. So I ask - "Since it seems either way it will cost you _________ amount, the question is do you want to do it slowly or get it over with?" Usually they want to get it over with.
I also remind them if they are re-investing, they will really not lose anything. See, they are simply transferring their investment from one house to another. Eventually the market will appreciate and they will make money. I ask them - "When the market returns and prices go up, do you want to be in this house or the new one?" Guess again which they choose.
Another great point is that it is nearly impossible to under sell a home today. Imagine the following scenario. You have a listing that realistically will sell in today's market for around $250,000. That's fair market value. What would happen if you listed it at $225,000? Would you get multiple offers? Sure. What happens when multiple offers occur? Buyers get so emotionally charged about the property they start bidding higher for it. At the end of the bidding, where will you likely end up? Close to or at the $250,000 price. So you see, buyers won't allow the home to be "given away" in most cases.
Let's also remind ourselves that market value is defined as - What a buyer is willing to pay and a seller is willing to sell for on an open market. I like to add to that definition in today's times - what a lender is willing to lend on it. I'm finding a few cases where the buyer is willing to pay higher than the appraiser thinks it's worth, thus driving the price down again to keep the deal together.
For more objection handlers on pricing, contact me.
Monday, August 2, 2010
Is it time for an Intervention?
In today's real estate market we have to work very differently than we did 5 years ago. That word called "work" has come into question. Are you really "working" as efficiently as you could or should be? Are you getting the results you want?
As a real estate coach I see the challenges agents face first hand. Sometimes it's important to have an Intervention to get them back on track. Take a look at these questions and if you need help with YOUR answers, feel free to contact me.
1. Based on your plan/goal, how many properties should you have closed so far this year?
2. How many have you actually closed?
3. Do you have any leads right now that you are 90% or more sure they will sign a contract this month?
4. What specifically is stopping you from being on track?
5. Is it time to change the goal for the year or with hard work do you think you can still make it?
6. What will happen when you get back on track and earn the money you need to? How will that change your current situation?
7. What is your commitment level to getting your business back on track?
8. Since this will be difficult, are you prepared to do what it will take to make it happen?
9. If you had a clear plan to get there, would you be willing to do it at all cost?
10. If you decide not to follow the plan, will you achieve the goal? How will that impact your life?
If you'd like the plan, let me know!
As a real estate coach I see the challenges agents face first hand. Sometimes it's important to have an Intervention to get them back on track. Take a look at these questions and if you need help with YOUR answers, feel free to contact me.
1. Based on your plan/goal, how many properties should you have closed so far this year?
2. How many have you actually closed?
3. Do you have any leads right now that you are 90% or more sure they will sign a contract this month?
4. What specifically is stopping you from being on track?
5. Is it time to change the goal for the year or with hard work do you think you can still make it?
6. What will happen when you get back on track and earn the money you need to? How will that change your current situation?
7. What is your commitment level to getting your business back on track?
8. Since this will be difficult, are you prepared to do what it will take to make it happen?
9. If you had a clear plan to get there, would you be willing to do it at all cost?
10. If you decide not to follow the plan, will you achieve the goal? How will that impact your life?
If you'd like the plan, let me know!
Saturday, July 31, 2010
A Strong Listing Presentation is Key!
Components of a Listing Presentation
The following are the 6 parts that should be included in EVERY listing presentation. Remember, the more scripted you are the better job you do and the easier it is to stay on track. When you establish to the Seller that you are prepared and have pre-planned questions, you stay better in control of the conversation and they appreciate you saving their time. Whatever script you decide to use, make sure it has all 6 parts.
1. Thank them for the appointment and their time. This is done as soon as you arrive. This is also a fantastic time to use an assumptive close. For example:
“Thank you so much for having me over, I appreciate the opportunity. I am very excited about getting your home on the market and getting it SOLD quickly for you.”
2. View the home by yourself. This saves time and since they won’t be showing the home anyway, you want to see it the way the buyer would see it. If there are special features that need to be seen, have the seller show them to you after they’ve signed the paperwork. There’s no point spending an hour looking at the home with the seller if they aren’t going to list it with you.
“I’m going to take a quick look through the home. I’d like to see it from the eyes of the buyer and if there are any special features you’d like me to know about, we can take a look at them once the paperwork is done. While I do this, if you could go ahead and start filling out this MLS feature sheet so nothing is missed.”
The benefit of doing this is twofold. First, it gives them something to do and second, it increases the commitment level as they are already filling out paperwork for you!
3. Review the motivation, loan balance, next plans, etc. Basically as you start your presentation you want to review the Pre-Qualification questions you asked them over the phone when you set the appointment. (Hopefully you are asking Pre-Qualification questions.) There are two major reasons for this. First is to bring up the motivation before you start so they can be reminded of why they are doing this. Second, because you likely only spoke to one person while setting the appt and the spouse needs to confirm the motivation and add anything the other one didn’t. You may also find out more about the motivation at this time as their trust level is most likely higher now that you are in the home than it was during the appointment setting.
4. Explain and review the condition of the market. Use as many questions as you can during this process to ensure they are following what you’re saying. Just spouting out statistics to them will only confuse them and they will be less likely to take your pricing suggestion. Also remember to be sure to bring some positive news. Reality is reality and has to be presented, as well as giving them hope you can get the job done. Have easy to read charts and stats so that if you ask a question they can easily identify the answer and follow along. Simplify it. Make sure they fully understand this part before you move on.
5. CMA and Pricing Presentation. Remember, you study the market every day, they don’t. The seller will likely have a skewed perspective of what’s actually happening. Consumers get conflicting information daily. Keep in mind, your price and what’s actually happening will probably surprise them. Help them understand the market is not your fault. You are the messenger. It may be helpful to let them know you have two choices…to tell them the truth, which may hurt for a moment, and get results…or, tell them what they want to hear and have the property on the market for a long period of time. Which would they prefer?
Also keep in mind that “active” comps can often be more helpful than “sold” comps. A buyer cannot purchase a home that has already sold. They can only buy what’s currently for sale. So where does the pricing put them in relationship to the competition. Buyers today are looking for the best value. We create value by having more for the same or less price. Pricing ahead of the competition is the best way to ensure buyers will see the value. Sold comps in a declining market can sometimes paint the wrong picture. A home that sold 4 months ago in a market with .5% to 1% depreciation per month isn’t going to help your seller see TODAY’S pricing.
6. Now it’s time to close for the signature. The biggest mistake agents make is not being strong on closing. If you receive an objection here, it’s most likely because they still don’t understand something you’ve said, not necessarily because they won’t sign. The strength of you presentation will determine the number of objections you get. The stronger you are, the less or no objections you will receive. Be sure to ask questions here if they are not willing to sign. You need to know what part of the presentation you have to go over again to answer their question. The key is to keep them talking, keep questioning the motivation, keep reinforcing the statistics and asking them to take action. If need be, move to your Active Marketing Plan to create value to them about what you’re planning to do to get the home sold, once you’ve priced it correctly of course!
A few other thoughts…
1. Create a weekly system to communicate with your sellers. One week email, one week phone. More communication strengthens the trust and allows you to get price reductions faster than not talking to them at all or sporadically.
2. During the listing, refer to the Active Marketing Plan so they know you are working. There’s nothing worse than making a promise and not following through.
3. The price is not your fault. Don’t let the seller blame you for the pricing. Market value is simply based on what a Seller is willing to sell for and a Buyer is willing to pay. With so much competition, Buyers are more selective than ever.
4. If you’re not strong on objections or pricing, consider using a FAQ sheet. Write out the most common objections you hear, list the answer to it and give it to them as a Frequently Asked Questions worksheet. The great thing about bringing up the objection first is it loses all of its power.
The following are the 6 parts that should be included in EVERY listing presentation. Remember, the more scripted you are the better job you do and the easier it is to stay on track. When you establish to the Seller that you are prepared and have pre-planned questions, you stay better in control of the conversation and they appreciate you saving their time. Whatever script you decide to use, make sure it has all 6 parts.
1. Thank them for the appointment and their time. This is done as soon as you arrive. This is also a fantastic time to use an assumptive close. For example:
“Thank you so much for having me over, I appreciate the opportunity. I am very excited about getting your home on the market and getting it SOLD quickly for you.”
2. View the home by yourself. This saves time and since they won’t be showing the home anyway, you want to see it the way the buyer would see it. If there are special features that need to be seen, have the seller show them to you after they’ve signed the paperwork. There’s no point spending an hour looking at the home with the seller if they aren’t going to list it with you.
“I’m going to take a quick look through the home. I’d like to see it from the eyes of the buyer and if there are any special features you’d like me to know about, we can take a look at them once the paperwork is done. While I do this, if you could go ahead and start filling out this MLS feature sheet so nothing is missed.”
The benefit of doing this is twofold. First, it gives them something to do and second, it increases the commitment level as they are already filling out paperwork for you!
3. Review the motivation, loan balance, next plans, etc. Basically as you start your presentation you want to review the Pre-Qualification questions you asked them over the phone when you set the appointment. (Hopefully you are asking Pre-Qualification questions.) There are two major reasons for this. First is to bring up the motivation before you start so they can be reminded of why they are doing this. Second, because you likely only spoke to one person while setting the appt and the spouse needs to confirm the motivation and add anything the other one didn’t. You may also find out more about the motivation at this time as their trust level is most likely higher now that you are in the home than it was during the appointment setting.
4. Explain and review the condition of the market. Use as many questions as you can during this process to ensure they are following what you’re saying. Just spouting out statistics to them will only confuse them and they will be less likely to take your pricing suggestion. Also remember to be sure to bring some positive news. Reality is reality and has to be presented, as well as giving them hope you can get the job done. Have easy to read charts and stats so that if you ask a question they can easily identify the answer and follow along. Simplify it. Make sure they fully understand this part before you move on.
5. CMA and Pricing Presentation. Remember, you study the market every day, they don’t. The seller will likely have a skewed perspective of what’s actually happening. Consumers get conflicting information daily. Keep in mind, your price and what’s actually happening will probably surprise them. Help them understand the market is not your fault. You are the messenger. It may be helpful to let them know you have two choices…to tell them the truth, which may hurt for a moment, and get results…or, tell them what they want to hear and have the property on the market for a long period of time. Which would they prefer?
Also keep in mind that “active” comps can often be more helpful than “sold” comps. A buyer cannot purchase a home that has already sold. They can only buy what’s currently for sale. So where does the pricing put them in relationship to the competition. Buyers today are looking for the best value. We create value by having more for the same or less price. Pricing ahead of the competition is the best way to ensure buyers will see the value. Sold comps in a declining market can sometimes paint the wrong picture. A home that sold 4 months ago in a market with .5% to 1% depreciation per month isn’t going to help your seller see TODAY’S pricing.
6. Now it’s time to close for the signature. The biggest mistake agents make is not being strong on closing. If you receive an objection here, it’s most likely because they still don’t understand something you’ve said, not necessarily because they won’t sign. The strength of you presentation will determine the number of objections you get. The stronger you are, the less or no objections you will receive. Be sure to ask questions here if they are not willing to sign. You need to know what part of the presentation you have to go over again to answer their question. The key is to keep them talking, keep questioning the motivation, keep reinforcing the statistics and asking them to take action. If need be, move to your Active Marketing Plan to create value to them about what you’re planning to do to get the home sold, once you’ve priced it correctly of course!
A few other thoughts…
1. Create a weekly system to communicate with your sellers. One week email, one week phone. More communication strengthens the trust and allows you to get price reductions faster than not talking to them at all or sporadically.
2. During the listing, refer to the Active Marketing Plan so they know you are working. There’s nothing worse than making a promise and not following through.
3. The price is not your fault. Don’t let the seller blame you for the pricing. Market value is simply based on what a Seller is willing to sell for and a Buyer is willing to pay. With so much competition, Buyers are more selective than ever.
4. If you’re not strong on objections or pricing, consider using a FAQ sheet. Write out the most common objections you hear, list the answer to it and give it to them as a Frequently Asked Questions worksheet. The great thing about bringing up the objection first is it loses all of its power.
Monday, July 26, 2010
Lead Follow Up
Here are some thoughts on this very important topic.
1. What is the definition of a lead?
a. How do you determine that definition?
b. My definition is someone who is going to buy or sell in the next 30 days.
c. Buyers and Sellers are making decisions slower in this market so our job is to educate them faster.
2. The amount of time you spend with a lead is directly proportionate to the amount of deals you will do each year.
a. The longer you hang on chasing a lead, the less deals you will do.
b. How much lead follow up does a highly motivated, highly qualified lead actually need anyway? None! Why aren’t we looking for more of these instead of messing around with the others?
c. At what point should you let a lead go?
d. You have to determine if this is someone who moves into your COI list or you remove them completely.
3. Studies show that 70% - 80% of your appts should come from lead follow up and not from your first contact.
a. Does this fact make a difference in your lead follow up habits?
b. Do you lose more business by over-calling or under-calling your leads?
c. Do you actually have time scheduled each day to do lead follow up so you can capture these appts?
d. It’s best to schedule it right before or right after your prospecting since you’re in the zone!
4. The hard truth is, a lead has no value as long as it remains a lead. Only when it turns into a contract will it bring you income.
a. Having a lot of dead leads is no different than having Monopoly money. It’s fun to have it but it’s got no value.
b. We have to quickly accept the fact that we cannot turn an unmotivated or unqualified Buyer or Seller into a client that earns you money simply because you kept them for years.
c. Train your mindset to think rather than what if I let this lead go and they buy or sell, to what if I keep this lead on and waste time? What other “qualified” leads will I be missing?
d. If you consistently bring in new leads, you don’t have to keep the bad ones.
5. Remember, doing 75 transactions a year only requires 75 REALLY GOOD leads.
a. Because sales is a numbers game, we have to accept that we will cycle through a large number of leads.
b. Having bad leads diminishes our desire and urgency to do good lead follow up.
c. Don’t over-protect your leads by putting them into the computer and fancy systems – just call them! If they are motivated, they will appreciate it. After all, what is the number one complaint about agents from consumers?
6. Remember the purpose of the call is to SET THE APPOINTMENT!
a. “Managing” your leads gets you nowhere. Set the appointment or move on.
b. What’s the script? Since most of lead follow up is about qualifying and handling the objection so you can close for the appt, that makes each call very different.
c. Hi, this is blank from blank, how are you? Great, I’m calling to find out if you still need to buy or sell a home? Let’s set an appointment this week.
d. If they give you an objection to the appointment – Ideally when would you like to be in your new home or have your home sold? Whatever the answer you say, great, that’s exactly why we need to meet!
1. What is the definition of a lead?
a. How do you determine that definition?
b. My definition is someone who is going to buy or sell in the next 30 days.
c. Buyers and Sellers are making decisions slower in this market so our job is to educate them faster.
2. The amount of time you spend with a lead is directly proportionate to the amount of deals you will do each year.
a. The longer you hang on chasing a lead, the less deals you will do.
b. How much lead follow up does a highly motivated, highly qualified lead actually need anyway? None! Why aren’t we looking for more of these instead of messing around with the others?
c. At what point should you let a lead go?
d. You have to determine if this is someone who moves into your COI list or you remove them completely.
3. Studies show that 70% - 80% of your appts should come from lead follow up and not from your first contact.
a. Does this fact make a difference in your lead follow up habits?
b. Do you lose more business by over-calling or under-calling your leads?
c. Do you actually have time scheduled each day to do lead follow up so you can capture these appts?
d. It’s best to schedule it right before or right after your prospecting since you’re in the zone!
4. The hard truth is, a lead has no value as long as it remains a lead. Only when it turns into a contract will it bring you income.
a. Having a lot of dead leads is no different than having Monopoly money. It’s fun to have it but it’s got no value.
b. We have to quickly accept the fact that we cannot turn an unmotivated or unqualified Buyer or Seller into a client that earns you money simply because you kept them for years.
c. Train your mindset to think rather than what if I let this lead go and they buy or sell, to what if I keep this lead on and waste time? What other “qualified” leads will I be missing?
d. If you consistently bring in new leads, you don’t have to keep the bad ones.
5. Remember, doing 75 transactions a year only requires 75 REALLY GOOD leads.
a. Because sales is a numbers game, we have to accept that we will cycle through a large number of leads.
b. Having bad leads diminishes our desire and urgency to do good lead follow up.
c. Don’t over-protect your leads by putting them into the computer and fancy systems – just call them! If they are motivated, they will appreciate it. After all, what is the number one complaint about agents from consumers?
6. Remember the purpose of the call is to SET THE APPOINTMENT!
a. “Managing” your leads gets you nowhere. Set the appointment or move on.
b. What’s the script? Since most of lead follow up is about qualifying and handling the objection so you can close for the appt, that makes each call very different.
c. Hi, this is blank from blank, how are you? Great, I’m calling to find out if you still need to buy or sell a home? Let’s set an appointment this week.
d. If they give you an objection to the appointment – Ideally when would you like to be in your new home or have your home sold? Whatever the answer you say, great, that’s exactly why we need to meet!
Friday, July 16, 2010
Last of the Basics
#5 Basic Skill is Close!
Closing is the skill I find agents fight the hardest. We tend to let them take their time when that isn't always the best choice for them. If we learn to close and get clients to act sooner, we avoid conversations with them that contain "woulda" "coulda" and "shoulda."
So, how many times do you ask for a commitment before giving up? Do you ask at all or wait for them to decide? Could you commit this week to asking at least one more time than you normally do?
#6 is Negotiate with them.
What side of the negotiation should you always be on? Most people will answer, "On the side of the client, of course." While that seems to make sense, we sometimes have to remember their side may not be in their best interests. Especially if their side is based on emotion and not logic. So, my standard answer to this question is, be on the side that accomplishes the clients goal the best. That way we stay with logic and get the job done.
How do statistics play in the negotiation? Are you equipped to show numbers to support your argument?
Can you take not so good information and present it in a positive way so the client doesn't react emotionally? We know from years of study that emotional decisions are typically very costly. Can you help your clients avoid them?
Skill #7 - Do 1 - 6, Make it happen and Start all over again by telling everyone about it!
Enough said on this skill.
So, which of these 7 Skills do you need the most help with? Email me with your questions, I'm happy to help!
Closing is the skill I find agents fight the hardest. We tend to let them take their time when that isn't always the best choice for them. If we learn to close and get clients to act sooner, we avoid conversations with them that contain "woulda" "coulda" and "shoulda."
So, how many times do you ask for a commitment before giving up? Do you ask at all or wait for them to decide? Could you commit this week to asking at least one more time than you normally do?
#6 is Negotiate with them.
What side of the negotiation should you always be on? Most people will answer, "On the side of the client, of course." While that seems to make sense, we sometimes have to remember their side may not be in their best interests. Especially if their side is based on emotion and not logic. So, my standard answer to this question is, be on the side that accomplishes the clients goal the best. That way we stay with logic and get the job done.
How do statistics play in the negotiation? Are you equipped to show numbers to support your argument?
Can you take not so good information and present it in a positive way so the client doesn't react emotionally? We know from years of study that emotional decisions are typically very costly. Can you help your clients avoid them?
Skill #7 - Do 1 - 6, Make it happen and Start all over again by telling everyone about it!
Enough said on this skill.
So, which of these 7 Skills do you need the most help with? Email me with your questions, I'm happy to help!
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