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Real Estate News and Advice |
August 21, 2008 |
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Little Things Make a Difference
by Robert Fore
You've heard it said that it's the little things that count. Sometimes we get so caught up in accomplishing the big goals that we forget to employ the little things that can help us get where we want to go. Here is a fun collection of little things that used regularly will make big impacts on your productivity. Advertise payments not price Are you still advertising total asking price in your classifieds and small display ads? You will receive a much greater response if, instead, you tell your prospects what they want to know... "How much will it cost me month-to-month?" Think about it. Would you even hesitate if you could live in a million dollar mansion for only $895 per month? Of course not. And to many 1st time buyers, a $100,000 home may seem like a multi-million dollar mansion because they don't know they can afford the payments. So educate them! Include downpayment information, as well as the anticipated monthly payment and APR rate in your ads--then watch as your response skyrockets. Encourage your buyers to drive-by before showings Unless you are using a "homes tour" method of showing properties, strive to never make an appointment to view a home that a buyer has not seen the outside of. Many times you will pull up in front of a home and, sure enough, the buyers are put off by a lack of curb appeal to them. You end up making a last minute cancellation, run up your cell phone bill, tick off the listing agent, and waste precious time. So don't do it. It is far better to have your buyers do a drive by first... then only show those properties where they have shown an interest. A PhotoShare presentation and/or any "photo" style presentation would serve well, also. The goal is simply to provide a visual for elimination purposes. Handle Commission Cut Requests Effectively You've got your foot in the door and have made a very dynamic, take-no-prisoners listing presentation. The sellers are impressed. And the want to sign with you... if only you'll lower your commission rate. What do you do? One way to work this objection is to explain how the commission is normally split between the listing office and the office representing the buyer. Also explain that the majority of homes are listed at 6% and the buyer's agent is EXPECTING 3%. By accepting a commission rate of 5%, a selling office would only be offered 2.5%. Now take three of your business cards and write 2.5%, 3% on another, and 3% PLUS a $500 cash bonus on the third. Place them all on the table and simply ask: "If you are a real estate agent representing a hot buyer who has been financially prequalified to purchase a home, and you had three identical homes to show this buyer, which home would you show first?" The obvious choice is the third. The power of this technique lies in the visual presentation as well as putting them in a position to negotiate FROM an even higher commission request... 6% PLUS a $500 bonus. You can simply "back off" asking them to offer a $500 bonus and concede to taking the listing for only 6%. Less is more Don't bite into the old adage, "The more You tell, the more you'll sell." Better is to Adopt the attitude, "The more you ask, the Better problem-solving solutions you can provide." Re-structure your presentations to gather information about your prospective buyers and sellers -- their plans, motivations, and needs. Strive to find out everything you can, especially the underlying emotional reasons prompting them to action. Then simply answer outline your processes which are designed to accomplish their goals. And you'll find yourself listing more seller and signing more buyers -- guaranteed! Improve open house attendance Take your flyers out of the box during the open house so that your dive-by buyers will have to come inside to obtain information about the home. You'll have the opportunity to meet them and to initiate a relationship. Making your mail stand out If you do a physical mailing, test the color of your envelopes. Studies have shown the colors "light blue" and "pink" give your envelopes the edge in getting opened when received by potential buyers or sellers. When mailing to other agents, however, "emerald" and "neons" seem to the colors most appealing. In the direct mail arena, half the battle lies in getting the envelope opened. If you want to ensure your message will get read... use a postcard. Postcards have always proven more effective when it comes to getting the message read. The downside to postcards? You have less space in which to get your message across AND no opportunity to add a "mail in" contact device. You host the welcome wagon party In days gone by, it was common for neighbors to welcome new buyers to the neighborhood. Today, it just doesn't happen. But you can change that, add value to your services, and potentially meet some potential new sellers by simply holding a "welcome party" to introduce the new buyers to their neighbors. With your buyer's permission, send invitations to neighbors asking them to stop by the buyer's house on a Saturday or Sunday between 2:00 and 4:00 pm about a week after their move in date, and offer to supply all the refreshments. You can increase attendance by following up on your mailed announcements with a phone call the morning of the party. Be prepared for attendees to aks you what homes are selling for in the area, and have pricing information and comparable available for distribution. You'll also want to add these wonderful folks to your database of contacts. Give the other agent a closing gift Closing gifts are almost a tradition in our business, as well they should be. But when was the last time you gave the agent you sold your listing a gift? Or the agent you provided the listing you just sold? A nice, engraved Cross pen, for example is a gift these wonderful agents and brokers could use and it would be a subtle reminder to show your listings or provide you with insights into their special listings in the future. A nice plaque they can use to adorn their office would also be a nice gift. It's the little things that often count. Published: April 13, 1999 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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