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| Savvy sales professionals are negotiating the turn by investing in smart systems and tools |
RISMedia, May 18, 2005
As the market tightens and competition grows fierce, you may find yourself, like many agents, asking, "What's my next move?"
Savvy sales professionals are negotiating the turn by investing in smart systems and tools that will help them compete long-term in today’s real estate arena. Who will take the lead in both listing and selling homes as this cooling trend settles in? Those who stay strategically focused on one-to-one marketing, negotiating effectively up front and committing to consistent business development through monthly prospecting. Here are three successful strategies to help accomplish this.
1. Set Your Standards High—In a tightening market, taking listings that won’t sell is far worse than having no listings at all. While you may be tempted to take at any price, terms or commission to secure the listing, this is a recipe for failure. Consider instead, raising your standards, using a strong, effective tool that spotlights the homeowner’s commitment to getting the home sold in the quickest possible time, with the best price and terms. We call it our Merchandising Review and there are three very successful ways to implement this valuable tool:
First: Make the right mutual decisions at the listing appointment. In all likelihood, throughout your presentation your sellers will have an objection or two regarding terms such as price, commission, lockbox, etc. Our suggestion is to agreeably shelve objection handling until after you have obtained the signatures for the listing. Then close your appointment by going over the Merchandising Review to make certain everything is in order.
Second: Get non-selling inventory back on track. Go through your inventory and red flag problem listings. Walk through the problems using the Merchandising Review. Contact your sellers by phone or visit in person to help them understand those review items that are hindering the sale of their home.
Third: Capturing the attention of expireds. While expired listings have been remote in recent years, they are back and can be difficult to maneuver. The Merchandising Review offers you a great foot in the door for these sometimes soured-on-salespeople sellers.
Review: It only takes about 20-25 minutes, and there will be absolutely no cost for this service. “Would Wednesday at 6:15 p.m. be good or Thursday at 8:30 p.m. be better for you?” Now, simply walk clients through each item, correct the problem areas and review your marketing plan.
2. Price-It-Right Pyramid—Take advantage of this guerilla-style objection handling tool when explaining to sellers that the key to selling their property faster in a difficult market is to price it right from the beginning. Use this strategy in conjunction with the Merchandising Review and you have a great foundation for a successful sale.
The five most common mistakes sellers make when choosing a price:
Not choosing the right price when a property is first listed. In other words, thinking “we can always come down.”
Putting the property on the market at an unrealistic price. A property must be priced on a comparative basis to other similar properties.
Not relating marketing time to price. Generally, the quicker you want to sell, the less you should be willing to take.
Calculating brokerage fees on top of the sales price. A home is worth what it’s worth, with or without a commission.
Thinking that buyers aren’t comparing your home, on a dollar-for-dollar basis, with every other home on the market.
3. Data Mining for Marketing Gold—To compete in today’s arena, it helps to have a few high-tech tools in your arsenal. Data mining is a simple, highly effective tool that allows you to be very specific in your search for new prospects.
Who buys a $500,000 house?
NAR statistics tell us that there is a 72% chance that buyers in this price range have lived within a 10-mile radius for more than five years in a home that is 50-75% less expensive and they are looking to upgrade.
In just a matter of minutes, you can manipulate national databases by going to www.marketshareonline.com, plugging in those specific variables and searching your area. Purchase this list of homeowners and have it e-mailed to you for just 8 cents per record. Print it, and discover the power of sitting in a listing presentation or meeting with a FSBO or expired with an actual list of potential buyers.
“Mr. and Mrs. Seller, I am so committed to the successful sale of your property that I’ve already created a prospect list of candidates in this area. We know that statistically the best prospects to purchase your home are within a 10-mile radius and have been in their homes for five years or more. List your home with me, and I will make marketing to this list my top priority.”
This prospecting tool is unlimited in its potential as a consistent source of new prospects. Enter SIC codes to mine for local area businesses such as CPAs, physicians and builders to allow for more specific monthly target marketing.
Use this system to market to renters paying too much, investors looking for their next purchase or companies with 25 employees or more that might be interested in corporate marketing services. Choose whichever direction interests you most or diversify your marketing efforts by choosing a combination of all of the above.
Whatever you do, make sure your message is clear and marketing consistent. Call, see or send something to everyone in your base of business at least every 30 days and you will weather the market changes with both ease and profit.
Julia Escobar, director of corporate and convention marketing for ProspectsPLUS!, has over 20 years experience in real estate sales and marketing. To register for a monthly newsletter filled with prospecting strategies, schedule a Master Marketing Meeting, or get your free copy of the 24-Month Strategic Marketing Calendar or the Master Marketing Schedule, call (800) 287-5710 or visit www.prospectsplus.com.
Source: May issue of Real Estate magazine |
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