6 Things Your Broker Won't Tell You

More Realtors think about switching brokerages around the first of the year than at any other time.  For agents with thriving, established businesses, a move can either be an expensive distraction and a bump in the road, or it can be the next big step in the evolution of their businesses.  For newer agents or agents who are struggling, it can either be a step toward a business worth owning, or the first step on their way out of the business.  For a Realtor, trying to make this kind of decision is sort of like running with your eyes closed holding a pair of scissors.  The problem is this - with one notable exception, brokers will not share the key information required to make a fully informed, sound decision.  With that in mind, here are 5 crucial pieces of information that brokers will not share:

Where will I be the most successful??

1. Profitability - Is the brokerage profitable? - No matter how big they appear to be, businesses that are not profitable eventually close. Hanging your license at a brokerage is a high-level business partnership.  If you and I were starting an LLC where we were going to buy and hold property for example, we would both surely want to see personal financial statements that show we had the means to contribute to the success of the LLC.  Imagine going to the expense and hassle of making a move, only to have the brokerage close or declare bankruptcy soon after.  Could be a career-ender.
2. Are They a LEAD STEALER? - Independent national surveys overwhelmingly prove that company affiliation is NOT a factor in choosing an agent.  People choose to do business with YOU not company XYZ.  So why do most brokerages FORCE their agents to put the office phone on their panel sign, their cards and all the rest of their marketing?  Simple... so that the leads from your hard earned listing go to the floor agent.  The floor agent is generally a less-busy, lower split agent.  So the company dollar from the lead is greater if it closes with the lower split agent.  Some brokerages even charge a referral fee to their own agents for incoming leads.  So you go out, do the work, get the listing or the buyer lead, and if your lead calls the main office number, you're out of luck.
3. Do They Train or Educate? - All the major (and most of the small independent) brokerages will tell you they have great training.  The best... even world-class training.  Let's be clear about one thing.  Training is the functionary nuts and bolts, the step-by-step, the "here's how you fill out the purchase agreement" type stuff.  Is it necessary?  Absolutely!  Is it true high-level real estate business education?  Of course not.  Real education for a real estate business owner involves sharing successful lead generation concepts, business building techniques, hiring and accountability systems, winning business strategies and more.  It involves all of this along with coaching and consulting.  If the brokerage does not provide this (and I can only think of one that does), you'll need to go out and get it on your own.  And it's EXPENSIVE!
4. Commissions and Fees - For some reason, most brokerages will tell you about the commission and some of the fees while leaving the rest of the money details buried in their Independent Contractor Agreement and fee riders.  So your first commission check usually comes with an unpleasant little surprise.  In addition, most brokerages use fees for things like office rent, copies, and E & O insurance as profit centers.  My very first brokerage is a great example.  At this well-known national brokerage, the agents were charged $1,900 per year for E & O insurance.  The brokerage was paying what amounted to about $500 per year for the coverage.  At that same brokerage, there were agents who's production was well below mine who were on higher splits due to favoritism or whatever negotiations took place to entice them to stay.  In addition, the agents at this type of brokerage who are the top dogs often get marketing coops and kick-backs.  These deals are ridiculous. The top agents still pay far more than they should AND the coops and kick-backs create animosity among colleagues.
5. Do They Share REAL Profit? - Do they actually share a set percentage of the company dollar back to the agents?  This is critical for two reasons:
• Agents who share in the company dollar profit at a brokerage have a vested interest in the success of that brokerage and so it follows that the more successful their fellow agents are, the more profit there is to share.  At a brokerage which is sharing company dollar with agents, you will find the top agents are very willing to teach the rest of the agent population just what they are doing to generate and close so much business.  Profit share thus creates and environment of friendly cooperation between agents and their colleagues and between the agents and the brokerage.
• In order to truly share company dollar profit, the books must be open.  Any agent must be able to look at the books (the very same books that the owners use) any time.  You can see what the staff is getting paid, how much the building costs, the utilities, the paper, copier, FAX, etc.  So you'll know if you are getting dinged on the fees.  Open books keep the broker honest.
6. The "Split" Never Ends! - At the traditional brokerage, the split goes on forever.  The more business you do, the more you will pay the brokerage.  The last year that I was at my first broker, I paid them over $95,000 in commission splits just to be there.  I believe that it should not cost more than a fixed maximum amount of money in any 12 month period to be in business with a broker.  There are now several brokerages who cap the amount of commission at a set amount per year.  When you compare these houses, be sure you shop on value, not just on price.  If you are doing 30 sides per year and brokerage A's cap is $12,000 vs brokerage B's cap at $18,000 it might seem like a no-brainer.  But what if brokerage B's high-level coaching, consulting, and education could get you just 3 more deals per year?  What if brokerage A's semi-hidden fees and negative work environment started to add up?  What if brokerage A defaulted on it's building lease?

The real estate business has gone through some major changes in the last 12 years with respect to the value of the relationship between the broker and the agent  If you are thinking about making a move, you owe it to yourself to do your due diligence and make the wisest, most business savvy decision possible. Your career depends upon it!

Having No Goals Leads to Wild Success

It's the end of 2011.  It's the time of year where business people from all different industries take stock of last year's performance, set next year's goals, update and finalize their business plan for the new year.  But I'm here to tell you this, "Set No goals for 2012".

Crazy right?  Maybe not.  My business coach, Don Yoakum, has me reading a book by Richard Fenton called "Go for No".  The thesis of the book boils down to a few key points.

1. Yes Goals - Setting your goals based upon how many "yes"s you need limits your potential.
2. No Goals - Setting your goals based upon how many "no"s you need to hear does 3 things:
• Numbs you to the effect of "No"
• Makes "No" the goal and takes all the negativity and power away from the word
• Removes the limits placed on your potential by a normal "Yes" goal.

Let's look at these two examples, both of which are based upon the need to set 3 appointments per week.  Assume for the sake of the example that, in your business, 20 calls = 4 contacts = 1 appointment.  So to make 3 appointments in 1 week, you would need to make 60 calls.:

• Example 1 - The "Yes" goal
• It's Monday.  You start making your calls at 8:30am.  For some reason, everyone is home.  You're thinking that maybe there's something in the air or the water because, in your first 10 calls, you reach 3 people and they all say "yes" to an appointment.  Awesome!  You're done for the week.  You can go home.
• Example 2 - The "No" goal
• If 20 calls = 4 contacts = 1 appointment, that means that 3 of the 4 contacts said "No" to an appointment.  So it follows that 3 "No"s = 1 appointment.  (Stay with me here... it's worth it!).
• So, using "No" goals, in order to make 3 appointments in 1 week you need 9 "No"s.
• It's Monday.  You start making your calls at 8:30am.  For some reason, everyone is home.  You're thinking that maybe there's something in the air or the water because, in your first 10 calls, you reach 3 people and they all say "yes" to an appointment.  Awesome!  Wait... You're not done.  In fact, you haven't made any progress toward your goal.  You still need 9 "No"s.
• You keep calling, going for the "No".  Eventually you hit your goal of 9 "No"s. Now you're done and you've made 12 appointments.  And it was fun!  You're fired up!

Still afraid of the word "No"?  Does it make you feel rejected?  In "Go for No",  Richard Fenton talks about a magic word that they teach doctors in medical school to prepare them for the reality that they will eventually lose a patient.  So here it is for you.  It's magic and it works every time.  The word is... "Next!"

Many thanks to Don Yoakum for turning me on to this book!  Get "Go for No" by  Richard Fenton, read it and join me in setting No goals for 2012!

Two Big Reasons NEVER to Hand Out Your Business Card

You've been there before.  Your having a nice conversation with someone at the bank or maybe at a store.  The conversation turns to real estate.  They tell you they're planning on making a move soon.  You talk to them about the move and ask them for their contact information so you can get with them later to help them out.  They say, "no problem.  Just give me a card and I'll give you a call."  You hand them a business card and they go away, never to be heard from again.  Or, are you one of the really pro-active card agents?  I mean the ones who give their card out to anyone and everyone who might have a real estate need.  If so, you would not have asked them for their contact information.  You would have just handed them a card and told them to give you a call.  In any case, the result would have been the same.  Ever wonder why?

Let's look at what I call the two BIG reasons to NEVER hand out your business card:

1. Once the prospect has your information, you don't need theirs. - Always look at every exchange from the prospect's perspective. - So the conversation was good.  You seemed nice and knowledgeable.  They have your information.  They'll call you if they need you.  Thus your business card's final odyssey begins.  If it's in the prospect's pocket, it goes through the wash and into the trash.  If it's in the prospect's wallet, the next time they look at it, it's a year later.  They're cleaning out their wallet and they throw it away because they have no idea who you are or why they have your card.
2. You could have had a lead.  But now you don't. - You only have a lead if you have legit contact information.  YOU have to have it... not the prospect.  The person with the contact information is in the driver's seat.  They are the only ones in control of whether on not you ever speak again.  In sales, that always needs to be YOU!

Always remember - The object of any exchange is to make an appointment.  If you can't get an appointment, the fall-back position is to get the prospect's full name, phone number, and email address (that is a lead).  Just practice saying this: "Oh wow... I don't have any more cards with me.  Let me get your email and phone and I'll get in touch with you tomorrow."

Be the card-less Realtor!

The Zen of Timeblocking II - How to Get Started

Congratulations!  If you're reading this then you've taken the first big step - admitting (like all of us) you have a problem.  The problem; Not enough time in the day to get everything done.  So let's see how to get started with the solution.

First, understand that your timeblocking schedule is going to be a continuous work in progress.  Initially you will be changing it often to fit your real daily activities.  Over time you will make changes far less often.  Here is the step-by-step:

1. Look at your 2012 calendar and put in all of your major vacation time.  Get your family and personal vacation time on the schedule now.  Here's a tip - if you don't book your vacation trips way ahead of time, you will not have the vacation that you want and deserve.  Life gets in the way and short-term business activities tend to supersede last minute vacation planning.
2.  Now, start with next month.  Put in all of your personal weekly recurring activities - Friday night date night with your significant other, kids games and school appointments, daily workout time, weekly days off.  Don't skimp on the days off.  The truth about off time is that, if you think you will work 6 or 7 days per week, you're wrong.  You may maintain this schedule for a few weeks or even a few months.  But eventually you will self-destruct.  When this happens it's not pretty.  When you're burning out, your clients seem to make you angry or frustrated more frequently, your business runs your life, and you are FAR less effective in all areas both business and personal.  Take at least one regular day off per week (same day each week).
3. Put in all of your weekly recurring activities starting with lead generation time.  Look at our Monday, Wednesday, Friday timeblock schedule.  Think of the things that you do in your business semi-regularly like fixing broken deals, update calls to Buyers and Sellers, working ON your business (like new mailings and marketing ideas).  Now make those activities into regularly scheduled activities on a weekly, monthly, or quarterly basis.
4. There are many, many great timblocking resources available to you to aid in getting a handle on your time.  Try them out.  See how you like them.

Remember - your timeblocking schedule is a work in progress and you will need to tweak it.  If you find that you are consistently starting your lead generation at 9:30am instead of 9am, go ahead and change your schedule to a 9:30am lead generation start time.  As long as you move the end time 30 minutes later as well, there's nothing wrong with it.  That is the little secret of timeblocking.  The blocks are movable within your day.

You can do it.  It DOES work for you.  Your day is NOT busier or different in some ethereal, mystical way that make it impossible for you to timeblock.  ALL highly effective business owners and leaders timeblock. The ultimate gift of timblocking will be a more productive business day, more consistent income, more personal time, and a more satisfying life!

The Zen of Timeblocking & How Your Out-of-Control Schedule Kills Your Chi

So you woke up this morning determined to have a really productive day as a Realtor.  You got your morning workout in and breakfast was yummy!  You walked into your office, started pulling down your email and clearing your voice mail.  You're writing your daily action list (to-do list) and getting fired-up for your lead generation time coming up from 9am to 11am when you hear it.  That crackling monotone voice over the speakerphone.  You can only pick out every two or three words.  But the gist of the message is that your deal on 123 Main Street that is supposed to close by 5pm today has an issue.  Something about the loan docs being held up in final review.  What do you do?

Over-Kill!

For a lot of us, dealing with this would consume the major part of the day.  We would be blasting out calls and emails, and having discussions with the parties until at least 2 or 3pm.  After that (and be honest with yourself here) you would never get to your lead generation for the day.  Ok... ok... If you want to lie to yourself and tell yourself that you would still do it, let's take a look at how that would work:

• It's 3pm... you're pi$$d-off, hungry, worried and drained from dealing with morons.  Yeah... that's the polar opposite of the mental state you should be in for effective lead generation.  Heck, if you're really honest with yourself, you know you wouldn't even be effective at answering a sign call right now.  If you got one, it would sound like this
• You ~ Hello this is me
• Lead ~ Yeah... I'm out in front of the house you have on Main Street and I...
• You (interrupting) ~  That's sold.  Have a nice day. [click]

The problem is this - Your chi is dead!  Your mojo is gone!  You spent your whole day putting out one fire.  All of your experience, your intelligence, and your energy went into solving one problem.  You put out a candle flame that might have gone out on its own and you used a huge fire fighting bomber plane to do it.  Oh... by the way... 90 days from now your family is 'that much' less likely to eat since you didn't get any meaningful lead generation done.

There is one way, and one way only, to avoid this trap.  It's called TIMEBLOCKING.  I know... It's not a sexy topic.  But here's the little secret... IT WORKS!

Let's take a look at my 'Monday, Wednesday, Friday' timeblock schedule here.  You back yet?  Did you see it?  So what would my day have looked like if this had happened to me on a Wednesday?  Let's run through it:

1. 8:40am - I get the message.  After listening, I determine that the docs are going to be late because the underwriter has not gotten to them yet.  Because of my timeblock schedule, I am only allowed one return call on this message.  Who should I contact that would be the most likely to solve the issue? - The Buyer's Loan Officer.  They are in sales.  They value their relationships with the Buyer and with my team.  Is it their fault?  Probably not and it really doesn't matter.  Can they fix it?  Maybe.  But I know that if they can't fix it, it can't be fixed. (in case you're counting, so far it has taken me 2 minutes to hear the message and decide on this course of action)
2. 8:42am - I place the call to the LO.  The message sounds like this; "Hey Greg it's Roy at KW calling you about the deal we have scheduled to close today on Main St with our buyer Mrs. Smith.  I know you have been working super-hard on this and the Buyers and I have been really impressed.  Something just came up on your end and I think it's a great opportunity for you to really show-up as a lender and blow our clients away.  I just got a call from Cathy over at the title company.  She says that docs are held up in underwriting and we may not fund in time to close this evening.  I know nobody wants that to happen.  Can you please take care of this right away?  I really appreciate it and I know our Buyer will as well.  Please call me at 1:10pm today on my cell at (530) 555-1234 and let me know how you are handling it so I can update our Buyer.  Thanks... (that message took 2 minutes at the outside).
3. 8:44am - I'm back on schedule clearing my messages.  Lead generation starts at 9am like clockwork baby!

Because my schedule is timeblocked, I look at my days like this - My lead generation time from 9am to 11am as well as all my other timeblocks are appointments.  They are just as important as my $400K listing appointment (lead generation is how I got that appointment in the first place) or the appointment for me to have dinner with my family.  So, for me, I could not choose to blow off the appointments to handle the issue (you would not blow off a listing appointment to handle this issue... would you??).  I needed a way to delegate the task to someone who would be just as motivated to solve the issue as I am.  It's easy to figure out who that person is.  They are the people who have a financial incentive to see the deal close and who have one or more relationships to nurture in the deal.  Simple.  Greg will do as good a job as I would if not better.  If not, he doesn't get paid and he damages two valuable relationships.  Can the problem be guaranteed to be solved?  No way!  But what I know is that, if Greg can' t solve it neither can I.

As a real estate coach, a real estate team owner, and CEO of a residential real estate brokerage I have heard all the reasons, the excuses, and the "special situations" that lead us to believe that timeblocking doesn't work.  Or, at least, it doesn't work for you.  Guess what... TIMEBLOCKING WORKS!  The sooner you give into this fact, the better off you will be in all aspects of your life.

5 Productivity Mistakes that Make You Look Like an Amateur (Part 1 of 5)

Significant Other - So... how was your day to day honey?
You - Ugh!  Don't ask!!
Significant Other - Why?  Were you slammed?
You - Yeah.  It was just crazy!
Significant Other - Really?  What did you get done?
You - Uh... well... uh... er... I don't remember now.  But I was buried all day!


If this sounds familiar, you should know two things:

1. You are not alone.  And...
2. You are not as "Busy" as you think you are.

That's right!  I said it!!  YOU ARE NOT AS BUSY AS YOU THINK YOU ARE!!!  The 'all-caps' and the 'bold' type should get the angry responses going.

Here's the thing.  The word "busy" means that you are occupied with the tasks required of you by your business.  But you have a choice:

You can either be busy being busy,
or you can be busy being productive.

In order to be productive, you have to plan your daily work and work your daily plan.  There is no other way.  If you do this correctly, the necessary tasks of your daily work become organized appointments that are just as immovable as that $300,000 listing appointment, or the appointment to pick up the kids from school.

So here is number 1 of the 5 productivity mistakes.  If you are busy getting nothing done, chances are you don't use a daily written to-do list.  Stephen R. Covey wrote a book entitled, "The Seven Habits of Highly Effective People".  In it he found that highly effective people "begin with the end in mind".  Whether they are planning their life, their decade, their year, their month, their week, or their day, a highly effective professional uses a hand-written to-do list.  In fact, if you are one of those people who has a hard time getting to sleep at night, it's probably due, at least in part, to you laying there, going over in your mind what you need to get done.  Try this tonight:

• Take a pen and a legal pad to bed with you.
• Before you close your eyes, write down everything you can think of that you need to get done tomorrow.
• Set it on your night stand and go to sleep.

Chances are good that you will sleep like a baby.  The second part of that same habit is this:

• Start each day at 8:30am or earlier with a new to-do list.  
• Carry over items that did not get done from yesterday's list
• Add the items from your night stand list
• Put your least favorite tasks first
• Clear your voice mail and your email as you are writing the day's to-do list
• Keep your list with you as you are running around and check off the items as you complete them

Remember this... busy days lead to sleepless nights, busier tomorrows and stress.  Productive days lead to checks and more personal play time.

In part 2 we'll look at time-blocking and break it down into a few simple steps that will have you wondering why you didn't do it sooner and how you ever got anything done without it!

Open Houses - How to Make Them Pay Off in Seller Leads

How many times have you heard a fellow agent say, "...open houses are a waste of time, boring, useless, time consuming...".  Or better yet, "... the only people that came were looky-loos from the neighborhood."  HELLO??  Can you say, "seller lead"?  I bet you hear it all the time.  Below is a system that we use to turn a 4 hour open house into a neighborhood event that generates a minimum of 3 listing leads and 5 buyer leads every time without fail.  If you knew that this would work, would you do it?  Read on then!

First, pick the right listing - find a listing agent in your office who has a listing in a relatively high-traffic location.  Try to avoid cul-de-sac and dead-end streets.  It should be easy to get them to allow you to hold it open.  I know in our office, there are several opportunities every weekend.

The prime time for an open is Saturday or Sunday from 11am to 3pm.  Possibly the greatest key to high turnout is this - use a minimum of 15 directional signs.  Our surveys have indicated that almost nobody who attends our open houses comes in response to newspaper or internet ads.  This means that a prospect's decision to go to your open house is largely spontaneous and driven almost exclusively by your directional signage.  These signs MUST be up no later that 8am on the day prior to the open house.  So, put a flyer on the door of the listing indicating the hours of the open house.

Partner with a lender who can be there to pre-qualify buyer leads and is willing to provide refreshments and a prize for a drawing.  If you lender is not willing to cooperate, do it yourself the first time and start looking for a new lender partner.  Our summer-time open houses were ice-cream socials.  We called them grand openings.

On the day prior to the open house at 5:30pm, door-knock at least 50 homes in the neighborhood with fliers about your Grand Opening.  Our fliers said something like, "GRAND OPENING - SATURDAY 11AM - 3PM at 1234 MAIN ST!  FREE ICE CREAM!  WIN AN iPAD 2!  COME SEE ONE OF THE FINEST HOMES IN ARDEN PARK!"  We gave away one prize per quarter.  It doesn't have to be an iPad.  It could be anything that is perceived as valuable enough to generate interest.  Don't over-think it.

So, have balloons at the home, a table out in from of the house where you will register everyone to win the prize.  We kept an empty iPad box taped down to the table so that we didn't risk getting the real one stolen. On the table, along with the registration sheet was a framed picture of yours truly shaking hands and handing the last iPad to the lucky winner from last quarter.  The picture had a caption that read, "Last Quarter's Lucky Winner!".  Inside the home, we had an apple pie baking in the oven.  I usually brought two so that we could keep the smell in the house for the entire four hours.  In addition, take tons of pictures during the open house.

So how do you convert the leads?  Simple:

• Buyers - ask them to register to win | ask them if they are looking just in this area | invite them to have a look inside | tell them to be sure to check with you before they leave so you can give them a list of available homes in the area and also you'd like to tell them about some homes that are coming soon but are not yet on the market.  Once they engage with you in this dialogue, it's time for the needs analysis.
• Sellers (neighbors) - First let me be clear.  You MUST assume that everyone who comes to your open house has a real estate need of some kind.  Keep a stack of 2-up (an 81/2 x 11 page cut in half) cards that say, in BIG RED LETTERS at the top, "REAL ESTATE EMERGENCY??".  Under the title print, "Late payments, facing foreclosure, call our 24-hour foreclosure prevention hotline at (999)999-9999 before it's too late.  The stack of these cards should be strategically placed where they are seen by anyone touring the home but can be picked up by a prospect discreetly.  A spot in the master bedroom usually works well.  When you ask a seller lead if they are looking in the area, they will say something like, "Oh, we're just the nosey neighbors".  Ask them, "Have you ever seen an open house like this in the neighborhood before?"  They'll say, "No".  Ask them, "Do you know why we do it this way?"  They'll say, "No".  Tell them, "Because this way, when the buyers come through there are a lot of people in the home.  It creates the perception that the home is in demand.  This results in higher offers sooner".

After your grand open house, everyone who registered gets a thank you call or email.  They get entered in your database and put on your 33 touch campaign.  When you do the drawing to give away the prize, you make the winner pick it up at your office.  Take a picture of them receiving the prize from you.  Take that picture, along with the ones that you took at the open house, overlay them with a small size version of your logo.  Post them on your Facebook page and tag anyone whom you know in the photographs (use the email addresses you got on the registration to find and friend the people on Facebook first).

It's really that simple.  If you do it, it will become a HUGE pillar of your lead generation.  In addition, it will get you instant deals, instant business, instant leads, and instant success!

Objections - Can You Handle Them? Part 3 "What the Heck is a USP?"

In parts 1 and 2 of the "Handling Objections" series we talked about some specific questions that should be part of any three-deep needs analysis in today's real estate market. We covered the dangers of "puking" (TELLING the prospect about the market, their homes value, the neighborhood, the town, the schools, the parks, the shopping and more without knowing what they want or need). We showed you how the needs analysis forces you to listen to the prospect and how the answers you get are the "Bullets" you need to close the deal. Now we need to cover the basis, the very foundation of the "Presentation" portion of your appointment... your Unique Selling Prospect, or, your USP.

The "Elevator Pitch"

A good USP is the unique reason that a prospect would choose to do business with you rather than with your competition.  A great USP is the unique reason a prospect feels that they would have to be a fool to do business with anyone else.

People will do business with you based upon two general conditions:

1. They like you - assuming you are like-able enough when you make an effort, you should have this covered
2. There's something in it for them - after weighing the cost vs. benefit, they perceive that the value of your product or service is greater than that of your competition

Yes!  It's really that simple.  In a properly executed real estate listing appointment (either Buyer or Seller listing), the "Presentation" portion of the encounter only occurs after a thorough needs analysis.  To create a great presentation, you need to start with a world-class USP and work backward.  So how do you create a world-class USP?  The following exercise will get you started:

On a piece of paper:

1. Write down your greatest strengths as an agent. - Leave space enough to write a couple of lines between each strength.
2. Think about each strength from the client perspective - write down what is in it for them under each strength.
3. Still looking at it from the client's perspective - pick the most powerful two or three strengths (no more than three).
4. Take the statements under each of the most powerful strengths - boil them down to their essence.  Make them as succinct as possible.  

You should be able to communicate your USP in under thirty seconds in a simple and powerful way.  You could also call this your "Thirty Second Elevator Script".

The rest is easy.  Once you have your USP refined, your entire presentation flows from that one, simple powerful statement.

After the needs analysis, you choose only the portions of your presentation that apply to the prospect's needs and CLOSE THE DEAL.

Happy hunting!!

Objections -- Can You Handle Them? Part 2 (The Bullets)

In part one of "Handling Objections" we talked about some specific questions that should be part of any comprehensive needs analysis.  When you drill down three-deep, meaning that you ask two more questions about the answer to the first question, you will discover two things:

1. You will listen much better - In order to ask more questions about an answer, you actually have to listen to that answer.  This was tough for me when I first adopted the needs analysis as the basis for my listing presentation.  I had been so used to talking, making statements and holding forth in my appointments that, even when I did ask a question, I was immediately so busy formulating my next brilliant statement, that I never really heard the answer.  Sound familiar?
2. You get bullets - If you want to be an effective closer you need to be armed to the teeth.  The answers to the needs analysis questions are your ammo.  They are the bullets for your objection gun.

Here is an example of how this works:

You - So Sally, are there any questions that you have for me before we move forward?
Sally - Not right now. I think we pretty much covered everything.
You - Outstanding.  Let's just approve the agreement and we can get started.
Sally - Well... I need to think about it for a while.  I really want to talk to some other agents
You - Of course. I understand completely.  Let me ask you something.
Sally - Sure
You - When I asked why you were thinking about selling now, you told me that you could no longer make the payments, that you had missed two already, the bank was calling all the time, and that you really wanted to avoid a foreclosure.  Is that right?
Sally - Uh huh.
You - Was there any other reason that you want to sell now that we didn't touch on?
Sally - I don't think so.
You - Remember where I showed you the short sale time table in the presentation and we discussed the amount of time necessary to put together a complete package for your lender?
Sally - Yeah.
You - If you hired me to sell your home and your home went to auction before we had a complete package with an offer for your lender, how would you feel?
Sally - Terrible... sad... angry... I don't know.
You - So can you see now how important it is to get this approved so that we can get started right away?

This is the true power of the needs analysis and the consultative interview versus the old-school "Listing Presentation".  In the "Old School" listing presentation where you puke all over the prospect with statements you think will prove how knowledgeable you are and how effective you would be, you would need real bullets in a real gun to get Sally to sign the listing.  But with the needs analysis and a consultative approach, you ask questions that lead Sally to the understanding that she needs to sign... and that, SHE WOULD BE A FOOL TO DO BUSINESS WITH ANYONE ELSE!

Ask... Don't Tell! -- OBJECTIONS... Can You Handle Them??

So imagine you're sitting in front of a prospective client (listing or buyer).  You've just told them all about the market, their homes value, the neighborhood, the town, the schools, the parks, the shopping and more.  Oh... and you told them about how fabulous you are as a Realtor.  You told them all about your experience and your awards and how great your company is and how your serve the community.  You TOLD them all of these great things.  Then, to your great surprise and your ultimate chagrin, they say, "Ok...  Well... thanks very much.  We have some more agents to interview and then we'll give you a call in the next few days."  Or something equally non-committal.

What are they really saying?  -- They are saying that they want you to leave now and that they are going to keep looking until they find an agent they are comfortable with.  So why does this happen (rest assured that it happens often to all kinds of salespeople)?

Well... what if you had done a consultation instead of a presentation?  What if you had asked them...

Ask - Don't tell.
Listen - Don't speak.

• Why are you selling?
• Why did you choose to make the move now?
• Where will you be moving?
• What is most important to you when you contemplate this process?
• Have you ever bought/sold a home before?
• What did you like the most about your experience?
• What did you like the least?
• What do you think your home is worth?
• If I could waive a magic wand and make this experience the best it could possibly be, what would that look like to you?

And here's the kicker... what if you had asked two or three more questions about each of the prospect's answers?  Wouldn't it tell them something about you?  Do you think they would realize that you actually care about their needs and their desires?  Look... you know you care about the client.  I know we all care about our clients.  But before you have had a chance to show them how much you care by working for them, THEY DON'T KNOW THAT YOU CARE.  In fact, they think you don't care about anything but your big fat check at closing.  Wouldn't this list of questions also tell you something about the prospect?  In fact it tells you everything you need to know about them to gain consensus and close the deal.  A properly executed three-deep consultation gives you the ammo you need to shoot down ANY objections that may come up.

What we are talking about here is the "Needs Analysis".  This is the foundation of all true relationship based sales.  The real power of the Needs Analysis is two-fold:

1. It deepens the relationship - almost immediately by demonstrating to them that you actually care about their needs.
2. The prospect's answers are your closing points - if you properly execute a three-deep analysis, your prospect will own the decision to work with you.  They'll think, "I'd have to be a fool to do business with anyone else."

In the next entry we will look at some common objections and the ways that a proper Needs Analysis will give you the information you need to over come them and close the deal.

Save Thousands & Do More Deals Using Electronic Signatures

If you are like me, there are not enough hours in a day to get everything done.  I get to the office early, clear my voice mail and email, write down my to do list, role over all the items from yesterday that didn't get done, and typically I am looking at a completely full day.  And that is BEFORE I start calling, prospecting and putting out the inevitable fire or two.  Need a way to save countless hours chasing documents and signatures while saving thousands of dollars per year in fuel costs?  It has been calculated by several digital signature authentication providers that the cost in paper, FAX consumables, fuel, time and lost productivity averaged over a 12 month period is approximately $6.50 per signature.  If you conservatively estimate your cost per signature at even half of that number, you can see that, at only 20 signatures per transaction, your potential savings are right around $65 per deal.  Start using digital signatures right now.

There are several companies out there that provide safe, secure digital signature processing.  Among the top companies are:

Electronic Signatures are the Future

• Docusign
• Zip Logix - Digital Ink
• Verisign

The great news is that if you are a Realtor member of CAR (the California Association of Realtors) you already have a FREE Zip Logix Digital Ink account!  If you are like me, you probably just pay your dues without giving much thought to your member benefits.  One of the great features of this account is that it seamlessly integrates with the Zip Logix "Winforms" transaction documents.

Why use digital signature authentication?  Have you ever faxed a document package to a client for signatures, waited for it to go through, waited for them to print it out, talked them through the signature process, and waited for them to scan it or fax it back only to find out that they missed an initial or that some of the pages were illegible or missing?  The proper use of digital signatures completely eliminates all of this hassle.  Additionally, it saves paper and fuel and can be part of your "Green" initiative.

Most of us are too busy to spend valuable time trying to figure the e-signature thing out on our own.  Some of us just need some help and don't know where to start?  Either way there are classes available from time to time that are put on by your local board of Realtors or a local real estate brokerage.  One of the best "fast-start" classes out there is put on by Keller Williams Realty - Yuba Sutter.  It is FREE and is available to any agent from any real estate company.  I have linked it on the right-hand side of this blog.

So get with the program, impress your clients, save time and money and go green.  Implement digital signature authentication in your business today.