Video
Transcript
Prospecting
is the
act of locating
those who need your services
The basis of
successful prospecting,
as in all forms of sales is numbers.
Put simply, “The more people you talk to
about real estate,
the more business you will do.”
The foundation of
successful
prospecting is consistency. The “How” is not as important as
the “How often” So remember, “Numbers and Consistency”, N/C, is the key to success.
There will always be people who
will do business with you because of who you are and what you look
and sound like, and those who will not do business with you for the
very same reasons. That is why N/C is so important. It will
increase your chances connecting with those people who will connect
with you.
A sale trainer once
said that if you
stood at a corner and asked the occupants of every car that passed if
they wanted to buy or sell real estate, you would find someone that
needed your services. Fortunately,
there are much better ways to prospect such as cold calling, door
knocking, farming, mailing past clients, social contacts,
advertising, floor time, open house, expired listings and FSBOs.
The purpose of this tape is to explain
how these different methods work. But remember N/C, “Numbers and
consistency”, is always the key to success.
Let’s begin with cold calling
(initiating a first contact by phone using a crisscross phone
directory that lists properties by address). In this way you can cover any chosen
area, street by street.
The purpose of all prospecting is
finding someone who needs you assistance, and cold calling is the
fastest way to reach a given number of prospective clients in the
shortest period of time. In other
words, you can dial much faster than you walk.
I’m
sure, like me, you have been
interrupted inconveniently by someone cold calling. Unfortunately,
that is one of the negatives in this method of
prospecting. However, over the years I have found that by coming
directly to the point and not engaging in idle conversation, people
are usually friendly. Beside, N/C, “numbers and
consistency” is more effective when combined with efficiency, which
means finding out as quickly as possible whether the person you’re
calling or anyone they know might need your assistance in buying or
selling real estate.
And now
of course we have the no
call registry. Check with your Broker or your Manager for the cold
calling policy in your office.
The
following is an example of
cold calling: “Hi, my name is ABC and I’m with XYZ real estate
and I’m calling to see if you or any one you know is thinking about
selling or buying any real estate.” If the
answer is “no”, you don’t want to spend any more time talking
to them so say “Thank you” and hang up. It’s the numbers….the
more people you talk to, increases your odds of finding that person
who can give you business. If they say yes, then proceed by asking
what their needs and plans are, and begin building a rapport with
them. Later on you will find a complete section on scripts for cold
calling.
At this
point let’s discuss one
of the most important aspects of success in real estate…AFTB-Ask
for the business. Remember – N/C
is useless if you don’t AFTB. In the case of
cold calling, it probably will mean asking for an appointment.
The
next type of prospecting is
door knocking which can be used the same way as cold calling –
making an initial contact. Once again N/C is the door to success.
But why
door knock when cold
calling is faster? Door knocking gives you the personal touch
advantage. It is easier for people to relate to a live body than a
voice over the phone.
The
approach is the same –
introduce your self and ask if they or anyone they know need your
services. Most agents have some sort of handout to leave with
the homeowner. It could range from business card to a refrigerator
magnet or a flyer.
There are hundreds of
products on the
market that you might use. Check your CAR and NAR magazines for
ideas. The purpose is to increase
the odds of being remembered when that person has the need for your
services. And remember, when they do, AFTB.
Farming
is prospecting with a
long-term point of view. The goal is to become well known to a
specific group of possible clients by consistently contacting
them over a period of time.
Walking
your farm, a chosen area
or neighborhood, means periodically knocking on all the doors to pass
out some information or just to say hello. This will, over time,
increase your odds of being their realtor of choice.
Farming
is one of the most
effective ways of being the one they think of when they need a real
estate agent. A Realtor named Gary is known as the pumpkin man
in his farm, because many years ago he began passing out pumpkins,
every Halloween. Now they look forward to receiving their pumpkins
and he gets about 80% of the listings in that neighborhood. Consistency
pays.
Becoming
the source of real estate
and community information also gives you the advantage in building a
solid rapport with your farm. A monthly newsletter is an
excellent to do this. There are many companies that will customize,
print, and mail newsletters to your farm.
Farming,
however, is not confined
to a walk able area. It can also be done as a mailing farm. The
goal, however is the same, to become as visible and well known as
possible
through consistent
periodic
contact.
As in
door knocking there are
countless products available, such as personalized newsletters
and holiday greetings, that are effective for a walking or mailing
farm.
Mailing
as a source of new
clients, is a method to reach a great number of people with
comparably little time invested. As an example, if you are
sending out pre-printed material, then perhaps all you need to do is
address and stamp. The percentage of return with this method is
usually small compares to other forms of prospecting. However, N/C
still applies.
Mailing
to stay in touch with past
clients, however, is effective and vital in building a repeat and
referral business, which is the goal of most agents. It means
that clients come to you rather than you having to search for them.
Making
sure that they remember you
is your responsibility. But, it’s worth it. Another agent
friend earns a six-figure income solely through her past client farm.
It takes time to develop, but it’s the kind of farm that keeps on
giving.
Of
course e/mail and fax are
changing our whole concept of communication. The use of technology is
important and is covered in a subsequent section.
Social
contacts or Networking is
natural for prospecting. Any community-based organization,
church, sports or whatever activities you are involved with are an
excellent source of clients and can open endless doors of
opportunities for creating business.
It is
effective because it allows
you to build on rapport already developed in you everyday life.
Remember, the more people you talk to about real estate the more
business you will do.
Also
remember that you are
offering a service and expertise that are valuable to someone who
needs to buy or sell property. Be proud of who you are and what you
have to offer.
A
simple and effective way to
begin building a network is to ask your friends and family to
recommend three or more of their friends. Contact them and ask
them for referrals… And so on.
It doesn’t
matter whether they need
your services at the present time or not. You are building a network
and by consistently contacting them you create a referral farm
that will payoff through the years.
Advertising
is the backbone of
commerce. You can have the greatest product in the world and if
no one knows about it… who cares. The same goes for you. You are
your product. Your expertise, your access to information through the
MLS, and your experience in the market makes you a very valuable
product indeed.
Advertising
has many forms.
There are newspaper and magazine ads, flyers, bus stop benches,
magnetic refrigerator business cards, birthday and greeting cards.
The list goes on and on, and they are all available to you.
The ads
in your CAR and NAR
magazines are an excellent source of products and ideas. One of
the benefits of joining your local real estate association is
receiving both magazines. Also, your Brokers advertising policy could
be an important consideration in choosing an office.
Time
spent answering phone calls
generated by properties listed with your office has many names like
floor time, up time, up desk, opportunity time, etc. Whatever
it’s called, it is an effective way of making contact with
prospective buyers and sellers, since ads and signs generate calls.
Which is another reason that choosing the right office is so
important.
It is
important to be prepared by
knowing not only your company’s inventory, but the general market
in your area. You got to know the territory!
Sitting
open house works much the
same way as floor time. People are still directed to you by ads
and signs, but here you once again have the advantage of personal
contact.
As in
door knocking and floor time
you need to be prepared. You need sign in sheets, information
about that house, other properties, and financial breakdowns supplied
by your mortgage broker. These are examples that are very effective
in helping you create a client base.
Selling
the open house does happen
but not often. However, it is a great way to meet people who are
actively looking to buy and it also attracts those who are thinking
about selling.
Working
expired listings means
contacting owners whose properties were listed but did not sell
during the listing period. This is an area of prospecting where persistence
and having an effective listing
presentation truly
pays off. These sellers have already tried to sell but, obviously,
they had a negative experience. Overcoming that negative experience
and getting a listing at a sellable price is a skill that Realtor
Steve Wolfe has perfected. Here’s what Steve had to say.
“I’ve
worked expired listings for over 8 years. I like them because the
owners have already made the decision to sell but were unsuccessful.
Usually because of incorrect pricing. You know, owners are flooded
with calls the 1st few days after their listing expires. However,
very few Realtors follow up after their initial call. I continue to
contact them and send them my listing package that consists of: a
marketing analyses, my resume, and a generic video listing
presentation that explains the nut and bolts of what I will do to
sell their property. My listing package and my persistence has
afforded me a constant annual income of over $160,000 a year”.
Steve Wolfe
Re/Max
FSBOS… For
sale by owners…
Working them means dealing with owners who have decided not to use a
real estate agent to sell their property… Usually the reason is
money… They do not want to pay the commissions… Being able to
overcome their objections and convince them to list with you depend
on your communication skills and once again, the effectiveness or
your listing presentation...
All
of these prospecting methods work when
combined with N/C, numbers and consistency. You need to choose what
works for you, be persistent and don’t forget to AFTB
QUALIFYING:
How to find out if the person you
are talking to is a prospective client or not.
You find out by asking questions.
The odds are that you will be
working more with buyers than sellers. Why? It’s because
normally, there are simply more buyers than sellers. That is why,
historically, real estate prices have always gone up. However,
nothing goes up in a straight line and the market does fluctuate
In this section I will list the
information (Questions) needed to qualify Buyers and Sellers.
For qualifying Buyers here is the
basic information you need:
-
Name / Phone number
-
Income of everyone involved. It could
relatives or friends.
-
Have they been pre-qualified or
pre-approved?
-
How much cash for down payment and
closing cost?
-
Are they working with another agent?
I always ask the last question for
two reasons: 1. Professional courtesy. We’ve all had the
experience of putting time and work into “clients” only to find
out that the “clients” buy or sell through another agent. I don’t
like it when it happens to me and I don’t want to do that to anyone
else. 2. Concerns your most precious asset… Time. Don’t waste it
on someone else’s sale.
I no longer try to qualify buyers
for a possible loan. There are too many new loan programs
becoming available, and it is a full time job to stay competitive.
Fortunately, I have my mortgage broker to handle that for me.
(Building The Team)
I also like recommending my
mortgage broker because it is a way to find out not only what they
are qualified to buy, but also that they are committed (Real buyers).
By talking to your mortgage broker and giving her/him information
about their finances, they have made a commitment and are probably
serious buyers, but only if they are qualified.
So, find the right mortgage broker
and let him or her help you qualify your buyers. They should also
help you to learn how the whole lending process works. I rely on my
loan officer to make sure that I am not wasting my time on a buyer
who can’t buy.
The best chance you are going to
have to contact prospective buyers or sellers is probably at an
open house or while answering phone calls generated by company signs
and newspaper ads. See: (Choosing The Office)
Her is what is needed to qualify
Sellers:
-
Name of registered owner.
-
Address and phone number
-
Number of bedrooms and baths
-
Square footage
-
Age of property
-
Lot size
-
Additions permitted or un-permitted
-
Mortgage balance and interest rate
-
Are they working with another agent
The top six questions are also
available through your Title Rep and through your MLS computer
programs. I always ask the questions any way because sometimes
what the owner tells me is different from the official record. If
there is a discrepancy, it is your responsibility to find out why.
Also, by asking questions and listening to their answers, you’re
building rapport.
You need all of the above
information to customize your Listing Presentation Package for
individual sellers. Your Listing Package will also contain my
“Selling Your Home” video, and the material downloaded from my
Listing Presentation CD.
Here is a script for qualifying
buyers:
Hi, I’m _________. How may I
help you? (Ad or sign call) Wonderful!
That home is still available. May
I show it to you? Yes
Great!
Are you working with a real estate
agent? No Super!
In case we get cut off, may I have
your phone number? 555-000
Fine!
Are you a first time buyer? Yes Good for you!
Do you have a mortgage broker, and
have you been pre-qualified or approved? No
Finding out what priced home you
are qualified to buy is the first step you need to take. You don’t
want waste time or fall in love with a house you can’t afford.
I have an excellent mortgage
broker; his name is _____
He can help you find the best loan
for you.
Would you like his phone number? Yes Great!
To help you to reach him, I’ll
give him your phone number.
Is
that okay ___ Wonderful!
What area do you want? ______
Perfect! I know that area.
How many bedrooms and baths do you
need? _____ Super!
What about square footage? ____
Great!
As soon as we know your price
range I can begin finding houses for you.
If they have a Realtor, give
them the information they ask for and tell them to have their Realtor
set up the showing. Part of your job in “manning the phones” is
giving out correct information about your company’s listings. You
will depend on whoever is on the phones when you have a listing that
you are trying to sell.
What about the house they
called on? If you show them the house, it is an opportunity to meet
them and build rapport. However, if they are not qualified to buy, it
is a waste of time. So, it’s a judgment call, and experience is the
best teacher in making those decisions.
The above script can be used for
phone or in-person contacts.
Next is a script for qualifying
sellers.
Once again, this script can be used
for in-person or phone contacts”
Hello,
I’m ________. May I help you?
I’m
thinking about selling
Great! I’ll be happy to
help you. When are you planning on moving?
Wonderful… I know your
neighborhood and I will be glad to show you how your home fits in to
today’s market.
But, to give you all the
information you’re going to need,
I need to ask a few questions.
How many bedrooms? Good!
How many bathrooms? Fine!
What is the square footage of your
home? Wonderful!
Who is the registered owner of the
house? Thank you!
Will (He-She-They) be there when I
meet with you? Great?
How much do you owe on your
mortgage and what is the interest rate? Great!
Now I can run a computer program
that will show you your estimated cost of selling, and how much you
will walk away with.
Do you prefer week days or
weekends? Good!
Would Thursday or Friday be
better? Fine!
Would 6 or 7 pm be better? That
works for me!
Thank you for your time
and I look forward to meeting you.
OR
I’d like to drop off a 5-minute
video for you before our appointment day.
It will only take a few minutes to
watch, and it will show you what is involved in selling your home and
what I will do for you. I think you are going to be surprised and
pleased. I look forward to meeting you next ______at______. Goodbye.
If you
prefer to play the video as an icebreaker at your appointment use the
first ending. When setting up appointments, always give them a choice
such as: 6 or 7 or Thursday or Friday. It is much easier for people
to make a choice than to come up with a time on their own. If neither
time works they will let you know.
I
ask when they are planning on moving rather than asking when they are
selling. It gives a much better picture of the timing involved plus
many people have no idea of how long it might take to sell their
home.
The above script is pretty much
the way I handle making an appointment after receiving a positive
response from any call… The idea is to get the information you
need to put together a listing presentation for that particular
seller… do it quickly, politely, and don’t take up too much of
their time…(or yours)…
|
