Thursday, July 21, 2011
Tuesday, July 19, 2011
Six Steps to Improve Your Listing Presentation
Provided By Realty Times
To really take your listing presentation to the highest level, you need to follow these guidelines and steps for the next sixty days. The longer you wait, the longer it will take for you to reach the Champion Agent level. These steps will make you a Champion in a short timeframe.
1. Practice your listing presentation once a day for the next sixty days. Your ability to go through the presentation frequently enough will make the difference. If you only do your presentation a few times a year or even a few times a month, the improvement will be noticed.
2. Role-play your qualifying questions twice a day for the next sixty days. If you have those questions nailed in your mind and your delivery, your confidence will go through the roof.
3. Work on the major objections on the listing side of the business for thirty minutes each day for the next sixty days.
1.I want to think it over.
2.I want a shorter listing period.
3.I want you to cut your commission.
4.Another agent will list it at a higher price.
5.I need to net __________.
6.I don’t want to give it away.
7.I want to do a few fix ups before I list.
8.I want to talk with a few other agents.
9.You don’t sell homes in my area.
10.I have never heard of your company before.
4. Tape your listing presentation and listen to it. This is the best way to know what you are really saying. The universal truth I learned by listening to over fifty listing presentations on tape is that we talk more than we listen. Over 80% of the presentation is usually the agent talking. The seller should be talking 80% of the time, not the agent. My suggestion, before you listen to your presentation, is to pour yourself a large glass of your favorite adult beverage – maybe even the whole bottle; you will need it.
5. Evaluate your performance on every presentation. Champion performers are the people who are the most honest with themselves. Evaluate yourself after every presentation. Be honest with yourself on how you did, but don’t be too hard. Ask yourself the following questions and write down the responses. You will learn from your mistakes and improve, instead of making the same mistake over and over again – as most people do.
1.What are two or three things I did well?
2.Did I listen to the client’s concerns?
3.How much of the time did I talk?
4.How much of the time did my client talk?
5.Did I stay on track during the presentation?
6.What objections caused me problems?
7.What is the one area I need to improve on?
8.What did my client get most excited about?
9.What steps do I need to take to stay on track better?
10.What could I have done differently to get the listing?
Being a Champion Agent starts with having a Champion listing presentation. The preparation beforehand is the area I believe most agents really need to focus on immediately. If you go into a presentation with more information than your competitors, you will win 80% of the time at least – even if the other agents are there because of a referral.
To really take your listing presentation to the highest level, you need to follow these guidelines and steps for the next sixty days. The longer you wait, the longer it will take for you to reach the Champion Agent level. These steps will make you a Champion in a short timeframe.
1. Practice your listing presentation once a day for the next sixty days. Your ability to go through the presentation frequently enough will make the difference. If you only do your presentation a few times a year or even a few times a month, the improvement will be noticed.
2. Role-play your qualifying questions twice a day for the next sixty days. If you have those questions nailed in your mind and your delivery, your confidence will go through the roof.
3. Work on the major objections on the listing side of the business for thirty minutes each day for the next sixty days.
1.I want to think it over.
2.I want a shorter listing period.
3.I want you to cut your commission.
4.Another agent will list it at a higher price.
5.I need to net __________.
6.I don’t want to give it away.
7.I want to do a few fix ups before I list.
8.I want to talk with a few other agents.
9.You don’t sell homes in my area.
10.I have never heard of your company before.
4. Tape your listing presentation and listen to it. This is the best way to know what you are really saying. The universal truth I learned by listening to over fifty listing presentations on tape is that we talk more than we listen. Over 80% of the presentation is usually the agent talking. The seller should be talking 80% of the time, not the agent. My suggestion, before you listen to your presentation, is to pour yourself a large glass of your favorite adult beverage – maybe even the whole bottle; you will need it.
5. Evaluate your performance on every presentation. Champion performers are the people who are the most honest with themselves. Evaluate yourself after every presentation. Be honest with yourself on how you did, but don’t be too hard. Ask yourself the following questions and write down the responses. You will learn from your mistakes and improve, instead of making the same mistake over and over again – as most people do.
1.What are two or three things I did well?
2.Did I listen to the client’s concerns?
3.How much of the time did I talk?
4.How much of the time did my client talk?
5.Did I stay on track during the presentation?
6.What objections caused me problems?
7.What is the one area I need to improve on?
8.What did my client get most excited about?
9.What steps do I need to take to stay on track better?
10.What could I have done differently to get the listing?
Being a Champion Agent starts with having a Champion listing presentation. The preparation beforehand is the area I believe most agents really need to focus on immediately. If you go into a presentation with more information than your competitors, you will win 80% of the time at least – even if the other agents are there because of a referral.
Thursday, July 14, 2011
How Rising Interest Rates Will Impact Affordability
Provided By KW Blog
In a recent Forbes blog post, multimillionaire hedge fund manager John Paulson declared that today’s record-low interest rates made this the best time to buy homes in fifty years. “If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” Why should we care what Paulson thinks? Well, he was among the few to accurately predict the subprime collapse and, while no one has a crystal ball, a closer look at the numbers supports his call to action.
Historically low interest rates are the key…and they aren’t likely to hang around for long.
As we wrote in SHIFT, buyers who “choose to wait until prices come down more” are gambling that interest rates will hold steady or drop. The truth is even a 10 percent drop in home prices is nullified by a 1 percent increase in interest rates. The figure below illustrates how this works for a $250,000 home purchase and the relative likelihood of each scenario.
To figure out which was a smarter bet–counting on home prices to fall further or interest rates to rise–our research department took the last ten years of monthly home price and mortgage interest rate data and ran the numbers to see which was more likely: an increase in mortgage rates or a further drop in home prices. Here’s what we found:
1.A one percent increase in mortgage rates is ten times more likely to happen than a ten percent drop in home prices.
2.A one percent rate increase more than offsets a ten percent reduction in home prices.
3.When interest rates fall by one percent, the total interest paid is almost three times more than the interest savings from a ten percent drop in home prices.
4.The probability of both happening at the same time is ridiculously small, and homeowners would still pay 15 percent more in interest over the life of the loan.
Interest rates have dominated the news in recent months as we’ve shattered record low after record low. Potential home buyers need to understand the positive financial impact low interest rates have on the cost of home ownership and the thousands of dollars that can be saved over the life of a typical mortgage loan. For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.
In a recent Forbes blog post, multimillionaire hedge fund manager John Paulson declared that today’s record-low interest rates made this the best time to buy homes in fifty years. “If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” Why should we care what Paulson thinks? Well, he was among the few to accurately predict the subprime collapse and, while no one has a crystal ball, a closer look at the numbers supports his call to action.
Historically low interest rates are the key…and they aren’t likely to hang around for long.
As we wrote in SHIFT, buyers who “choose to wait until prices come down more” are gambling that interest rates will hold steady or drop. The truth is even a 10 percent drop in home prices is nullified by a 1 percent increase in interest rates. The figure below illustrates how this works for a $250,000 home purchase and the relative likelihood of each scenario.
To figure out which was a smarter bet–counting on home prices to fall further or interest rates to rise–our research department took the last ten years of monthly home price and mortgage interest rate data and ran the numbers to see which was more likely: an increase in mortgage rates or a further drop in home prices. Here’s what we found:
1.A one percent increase in mortgage rates is ten times more likely to happen than a ten percent drop in home prices.
2.A one percent rate increase more than offsets a ten percent reduction in home prices.
3.When interest rates fall by one percent, the total interest paid is almost three times more than the interest savings from a ten percent drop in home prices.
4.The probability of both happening at the same time is ridiculously small, and homeowners would still pay 15 percent more in interest over the life of the loan.
Interest rates have dominated the news in recent months as we’ve shattered record low after record low. Potential home buyers need to understand the positive financial impact low interest rates have on the cost of home ownership and the thousands of dollars that can be saved over the life of a typical mortgage loan. For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.
Tuesday, July 12, 2011
The Buyer Interview: The Value of Your Services
Provided By Realty Times
When we look at our complete value and the process of representing buyers' interests, the service of a professional real estate agent carries a high level of value. If you can quantify the value the client receives, you can sell your services more effectively and easily. At Real Estate Champions, we have been able to chart out the value of the services that buyers receive for most real estate agents. We have charted this out in terms of percentage of sales price.
Buyer Services and Value
Process Knowledge / Counsel --- 1/2 %
Market Knowledge -- 1/2 %
Needs Assessment -- 1/2 %
Selection Assistance -- 1/2 %
Correct Contract Writing -- 1 %
Presenting Favorably -- 1 – 2 %
Negotiation / Representation -- 1 – 2 %
Financing Assistance -- 1 %
Closing Processing -- 1 %
Follow-Up Communication -- 1%
TOTAL -- 7 – 9%
"You will receive easily 7% to 9% of the sales price in valuable service from me. The best part is you receive all this, and it costs you really nothing. Isn't that great?
The seller actually pays the fee through the transaction costs. All the services that you receive from me are covered through the transaction. So you get someone with knowledge, assessment skill, selection assistance, proper contract preparation, presenting and negotiating, financial counsel, management and orchestration and after sale service for free!! The only thing I ask is for is an exchange of your commitment, which we will talk about in a few minutes. Okay? Does this sound like the services you are looking for? Does what we have gone over thus far make sense? Do you have any questions?”
While most agents' conversations center on the home the client wants to buy, the Champion Agent doesn't talk about that subject until after this stage of the presentation or later. Once enough value and differential for you and your services has been established, you have two options: continue down the agenda to completion or work to close them right now on the Buyer's Agency Contract.
I have many clients who, after they have built the value for their services, discuss the exchange of commitments necessary for them to continue working with this prospect. Either approach is correct, based on the current prospect and your individual style of sales. But you must establish yourself and your value to the buyer first.
When we look at our complete value and the process of representing buyers' interests, the service of a professional real estate agent carries a high level of value. If you can quantify the value the client receives, you can sell your services more effectively and easily. At Real Estate Champions, we have been able to chart out the value of the services that buyers receive for most real estate agents. We have charted this out in terms of percentage of sales price.
Buyer Services and Value
Process Knowledge / Counsel --- 1/2 %
Market Knowledge -- 1/2 %
Needs Assessment -- 1/2 %
Selection Assistance -- 1/2 %
Correct Contract Writing -- 1 %
Presenting Favorably -- 1 – 2 %
Negotiation / Representation -- 1 – 2 %
Financing Assistance -- 1 %
Closing Processing -- 1 %
Follow-Up Communication -- 1%
TOTAL -- 7 – 9%
"You will receive easily 7% to 9% of the sales price in valuable service from me. The best part is you receive all this, and it costs you really nothing. Isn't that great?
The seller actually pays the fee through the transaction costs. All the services that you receive from me are covered through the transaction. So you get someone with knowledge, assessment skill, selection assistance, proper contract preparation, presenting and negotiating, financial counsel, management and orchestration and after sale service for free!! The only thing I ask is for is an exchange of your commitment, which we will talk about in a few minutes. Okay? Does this sound like the services you are looking for? Does what we have gone over thus far make sense? Do you have any questions?”
While most agents' conversations center on the home the client wants to buy, the Champion Agent doesn't talk about that subject until after this stage of the presentation or later. Once enough value and differential for you and your services has been established, you have two options: continue down the agenda to completion or work to close them right now on the Buyer's Agency Contract.
I have many clients who, after they have built the value for their services, discuss the exchange of commitments necessary for them to continue working with this prospect. Either approach is correct, based on the current prospect and your individual style of sales. But you must establish yourself and your value to the buyer first.
Thursday, July 7, 2011
Ben Kinney on winning clients with KLOUT
Provided By KW Blog
Several months ago, I attended a Ben Kinney Internet Lead Generation training session at the Austin Southwest Market Center.
After the presentation, Ben and I got to talking about how agents communicate with their clients online and how they are using social media platforms to successfully influence people who follow them. The conversation led us to questions about Facebook, Twitter and social media’s return on investment (ROI). At which point, Ben asked: “Have you heard of Klout?”
For those who don’t know, the Klout Score is the measurement of your overall online influence. The scores range from 1 to 100 with higher scores representing a wider and stronger sphere of influence. Klout uses more than 35 variables on Facebook and Twitter to measure True Reach, Amplification Probability, and Network Score.
“Of course I have” I said. “All I see between you, Liz Landry, Mariana Wagner, Jay Papasan, Chris Smith and a handful of other popular social networkers is you tweeting back and forth about how high your Klout score is but What I want to know is how does your Klout score bring in more business? How can we help agents understand the purpose behind communicating in the online environment as a strategy for creating meaningful relationships that turn into clients? In other words, how does Klout = Closings?”
“I think I can answer that.” Thankfully there was a camera handy. Here’s Ben’s explanation on Klout and some ideas for using your influence as an effective marketing strategy to generate more business. To continue reading Ben Kinney on Winning Clients with KLOUT click here...
Several months ago, I attended a Ben Kinney Internet Lead Generation training session at the Austin Southwest Market Center.
After the presentation, Ben and I got to talking about how agents communicate with their clients online and how they are using social media platforms to successfully influence people who follow them. The conversation led us to questions about Facebook, Twitter and social media’s return on investment (ROI). At which point, Ben asked: “Have you heard of Klout?”
For those who don’t know, the Klout Score is the measurement of your overall online influence. The scores range from 1 to 100 with higher scores representing a wider and stronger sphere of influence. Klout uses more than 35 variables on Facebook and Twitter to measure True Reach, Amplification Probability, and Network Score.
“Of course I have” I said. “All I see between you, Liz Landry, Mariana Wagner, Jay Papasan, Chris Smith and a handful of other popular social networkers is you tweeting back and forth about how high your Klout score is but What I want to know is how does your Klout score bring in more business? How can we help agents understand the purpose behind communicating in the online environment as a strategy for creating meaningful relationships that turn into clients? In other words, how does Klout = Closings?”
“I think I can answer that.” Thankfully there was a camera handy. Here’s Ben’s explanation on Klout and some ideas for using your influence as an effective marketing strategy to generate more business. To continue reading Ben Kinney on Winning Clients with KLOUT click here...
Saturday, July 2, 2011
Happy Independence Day!
From our KW family to yours, we wish you a Happy Indepence Day! May you have a fun and safe holiday!
-Keller Williams Rockwall
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