08/26/081

Explosive Conversations DefusedAvoid Confrontation, Defensiveness,

Friction and Miscommunication

Create Understanding, Agreement and LoyalismAnswer Questions and Address Concerns

Conversationally, Educationally With Grace and Ease

08/26/082

Communication StrategiesCommunication StrategiesOBJECTIONS, QUESTIONS and CLIENT CONCERNS are a fact of life in any sales situation.

To begin, let’s eliminate the word objection from our vocabulary and replace it with the words QUESTION or CONCERN. Questions and concerns are positive and an an indication that the client is interested enough in what you have to say/offer to ask for more information. Questions and concerns are requests for more information or clarification…the client does not perceive their needs as having been satisfied. Providing additional information removes barriers to moving forward.

Sales people generally tend to fear questions and concerns because they see them as road blocks to a successful sale, a form of rejection or an opportunity to lose the sale. In reality, the concern is not the road block, fear is the road block.

Definition of a customer CONCERN:

Misunderstanding: The client does not understand the facts and or perceives that the feature doesn't satisfy their needs.

Condition: The client understands it, it’s not what they want.

Stall: The want to move forward, however, they are hesitant to take action, want to delay and have difficulty making decisions.

When to handle questions/concerns/objections?

1. Before they come up.

2. When they come up.

3. Later on at a more appropriate time.

4. Never.

A happy person is not a person in a certainset of circumstances, but rather a person

with a certain set of attitudes.Hugh Downs

08/26/083

Communication StrategiesCommunication StrategiesGuidelines For dealing with customer questions and concerns:

Be positive. A question asked by a client is really a request for more information and an indication they are interested in your product/service. This is GOOD!

Body language is ultra important. Do not physically back away when the client asks a question or voices a concern. Smile, uncross your arms and proceed.

Listen carefully to the entire question before you answer. The client may be asking a multi-part question or a series of questions. If you rush to answer the question too quickly you may only answer the first in the series.

Be sure you understand the question...before you answer. Ask questions for clarification, then rephrase the customer’s question and repeat it back to the customer for confirmation.

Do not judge the question. The question may be the same one you have heard and answered 100 times, but, it is the first time the client has heard the answer. All questions are important to the client, even the ones you think are stupid or painfully obvious.

Do not use buzz words. You are familiar with the subject, the client is not. The use of buzz words can confuse the client and in many cases he or she will withdraw without having their question answered.

Talk to both/all parties...as you answer the questions. You never know which one is really asking the question and each party is equally important.

Avoid contradicting a customer. Some questions are asked in the form of a statement. When this happens, be sure to restate the question, ask appropriate “probing questions” to clarify the question and then answer the question.

Use visuals whenever possible. Third party proof is very effective because if it is not a verbal statement from you, it is a factual statement from a neutral third party. Also, use a pen and paper to graphically illustrate and answer questions and concerns when appropriate.

08/26/084

Communication Strategies Communication Strategies The four step strategy for handling a customer “CONCERN”

1. Understanding

Ask questions to clarify and determine if the concern is a “misunderstanding”, “stall” or “condition”. First, restate the question to be sure you heard them correctly then ask probing/follow-up questions to gain understanding.

Examples:

I can appreciate your concern about XXX, can you describe how XYZ would be a disadvantage.

I appreciate how you feel…tell me more about how…

Explain that...... Elaborate on that..... What else...

Describe how.... How do you feel that.... What do you feel...

How would that.... Explain how.... Tell me more about...

2. Isolate the concern

Is there anything else about XXX that you are concerned about?

3. Present your answer/solution

Make your presentation in a conversational, educational manner.

4. Agreement/understanding

Conclude your presentation by asking them if you have answered their question satisfactorily.

Avoid saying, “do you understand what I'm saying?” Instead ask, “have I explained this clearly?” Or have I clarified this point to your satisfaction?” Or “does my answer to your question make sense to you?”

Silent gratitude isn’t much use to anyone.Gladys Browyn Stern

08/26/085

Common ConcernsCommon Concerns

Sellers

How long have you been in the business?

I see more XYZ signs than yours.

XYZ sells more homes that you do.

John Doe does more business than you.

Mary Smith has more experience than you.

I see xyz’s ads in The Villager a lot more than yours.

XYZ will list my house for less money.

XYZ says they have a buyer already.

XYZ said they could sell it for XXXXX dollars more.

Buyers

We don’t want to sign the Buyers Rep. Agreement.

This house is too expensive.

The rooms are too small.

We don’t like the carpet.

08/26/086

Confident PersuasionConfident Persuasion

08/26/087

Unique Selling Proposition – SELLER

Seller doesn’t want to meet or is choosing another broker.

You: Would you be open minded to fresh ideas that would help sell your property for more money, save you time and eliminate all the hassles and wicked surprises? Let me propose this idea…

Seller shares that they can get someone to list for less money

You: Listen…I hear you. I’m like you and everyone else…nobody wants to over pay for anything. We’ve all been promised the moon and what we got was a fist full of air, broken promises and mealy mouth excuses. Let me propose this idea….~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Let me propose this idea.

Let’s meet and I’ll share my uniquely tailored world wide marketing plan with you. I’ll share advanced, top tier, ultra effective marketing, advertising, merchandising strategies that will broadcast-blast your property information to the far corners of the world…viewable electronically in digital full high-impact Technicolor, locally, regionally, nationally and globally ~ maybe even galactilly if any aliens are picking up our signals.

These critical broadcast factors effect the sales price…your net bottom line proceeds…thin and weak marketing = meager and stunted net proceeds, thick, powerful and persuasive marketing = more money for you.

Also, briefly or in as much detail as you like, I will share how we communicate, manage and lead all the various role players in transaction…for example, the co-op brokers, mortgage lenders, home owner’s insurance, mortgage appraisers, title insurance, property inspectors, survey people, home warranty details and others.

Keeping you informed every step of the way, insuring that all the big and fine details are handled in a timely fashion…all leading to a stress free closing and trouble free receipt of funds. More convenience, ease and safety for you and yours…it’s all guaranteed.

At the conclusion of our meeting if your feel I’m the right person for the job…that I can get you home SOLD for more money with less hassle and stress…then you’ll hire me. That would be exciting. If not, then you won’t…no worries…I’ll wish you well, our meeting is complimentary and some of the gems/bright ideas I share with you will help you sell your home for more money no matter who you choose.

Can you see any disadvantage to our getting together on that basis?

08/26/088

Unique Selling Proposition – Buyer

This conversation is used after discovering the buyer hasn’t found what they are looking for.

You: Sounds to me like you’re looking for something special? Let me propose this…The reason it’s hard to find that special house is when HOT new listing inventory tumbles onto the market…I’m talking about homes that are priced great, show fantastic, stunning curb appeal, lush landscaping, fabulous floor plans and perfect location.

Homes that really shine and sparkle, often sell in a couple of days, if not the first day. These homes never show up in an ad, open house, even the internet…they sell too fast.

These homes are sold by fast acting, eagle eyed Realtors who monitor the market and notify their preferred clients as soon as something appears on the market. I have a computerized market monitor program that rushes me via email, auto-notification when HOT new listings hit the market.

My question is, when a HOT new listing hits the market and it matches your specific criteria, would you like detailed information rushed to you via email? Then you’d be the person with insider information, knowing what’s available before the masses.

It’s pretty simple, free and no hassles…all I need is a couple of quick minutes to better understand what you’re looking for…then I’ll have the information I need to program my Homefinder Software and bada-bing-bada-boom, you’re poised to WIN.

Is this free service something you could benefit from? Can you see any disadvantage to knowing about HOT properties before anyone else?

Handy opening phrases and request for closure

Let me propose this…

Would you be open minded….

Would you be offended…

Can we work together on that basis…

Can you see any disadvantage to..

Of all your friends at XYZZ, who will be the next to make a move?

08/26/089

Tell US….What CommissionDo YOU CHARGE?

08/26/0810

Q: What commission do you charge?

Answer: Our Marketing Fee is 3%. This fee includes massive broadcast internet marketing, targeted advertising, and all the selling services required to get your property SOLD for Top Dollar and in a time frame that works best for you. We manage, coordinate and orchestrate the entire process from day one through a successful and trouble free closing.

When we advertise your property in the Multiple Listing Service, we will be competing with sellers who are offering agents working with qualified buyers a 3% commission…we will also compete with New Home Builders who pay a 3% commission as well as the occasional bonus. We recommend that our selling clients offer a 3% selling commission as well.

Of course, we only get paid for a successful outcome…there are no upfront fees and we offer a guarantee.

08/26/0811

Pricing Dialogs

"Another agent said they'd list it higher" Inform the sellers that their mission is to select the best agent, not the best price. An agent has no control over the market, only the marketing plan. Never select an agent based on price. "Mr. and Mrs. Seller, I am here because I want you to hire me and my company to market your home. I am accustomed to being in competition with other agents, however, if you chose me, I want it to be because you feel I am the best one to handle the marketing of your home, not because I said the highest price. A common mistake homeowners make is to overprice their home by the greatest amount with the agent who is least competent to attain it. If you don't feel that I am the best, then don't hire me...no matter what price I say.”

"We can always come down" Show the history of an overpriced home. Illustrate how the price steps down through market value to a sale price under market value. "...here's a home that started out at a price $x,xxx over market. It didn't sell so they reduced the price. It still didn't sell so they continued to reduce it until it was at market value. What do you think happened?" (Owner: I suppose it sold?) "No. Do you know why? What question do you ask me at the front door of every home I show you?" (Owner: How long has it been on the market?) "You ask me that because a long market time creates the belief that it is overpriced or that something is wrong. That's what happened to this home. It sold below market price. What do you think would've happened if it was priced right on the first night?" (Rhetorical) So, you can come down, but it may be below market value.” "They can always make an offer" "Mr. and Mrs. Seller, the only way a qualified buyer can make an offer on your home is if they see it. The problem is, most buyers look up to their price range, peek a bit over, then focus only in their price range. By overpricing, you put your home into a price bracket where they won't look. (Show the MLS book and/or computer printout and how their home will be invisible to a buyer by not being in their range.) The wrong price attracts the wrong buyers. The ones who could afford a market value price won't see it...and the buyers who do see your home won't be interested.” "Couldn't we try it for a couple of weeks?" Tell the sellers that the majority of market activity occurs in the first two to three weeks. Use an activity log to show that this is the worst time to overprice, because that's when your best customers see the home. "As you can see by this, most of the marketing activity on a new listing occurs in the first two weeks on the market. So when you ask, 'Can we try it for a couple of weeks,' look what you're doing. You're overpricing your home during the period of its best activity, then lowering the price after they're gone. It's like having a dinner party on Saturday and having the caterers come on Monday. I recommend that you price it at market value so you can capitalize on the best buyers you'll have.”

"But we paid more than that for it" Many owners connect cost with value when in fact there is no direct relationship. What you paid for something has nothing to do with what its worth today. Here is a way to have the owners acknowledge this non-relationship: "Mr. and Mrs. Seller, I hear you say that the value of your home should be based upon the cost? Then let me ask, if you had inherited this home, that is, paid nothing for it...what would you try to get for it today?" (Owner: As much as we could get.) "Why, when you wouldn't have paid anything for it?" (Well, that doesn't matter...) Use this dialog for buyers too. Right before making an offer, buyers might ask you what the owner paid for it, as if that has any relevance. Respond by saying; "What if we find out that the owners had inherited this home...how would that affect your offer?"

08/26/08

12

"But we have so many improvements in it" Most improvements are made for enjoyment, not resale. Lead the owners to this conclusion by asking these questions: "When were the improvements made?" (Owner: Just this year.) "At that time were you planning to stay or move?" (Owner: Oh, we were planning to stay.) "I see, if you'd known then that you were going to move today, would you still have made those improvements?" (Owner: No, probably not.) "Why not?" (Owner: because we couldn't get our money back.)

"We need the money" An owner's need for money doesn't affect the value of the home. Here's a dialog to use in this case: "Being objective about an asking price can be difficult when driven by a need for money. How much more do you need?" (Determine the net difference.) "Why do you need that extra money?" (Owner; various reasons, none of which affect the value of their home.) "If you don't get that extra amount what will you do?" The owners response falls into two fundamental options; sell the home at market and alter things at the other end, or stay here and wait for the home to be worth more. Lead them to one of these conclusions. If their decision is to stay, then obviously their need for money exceeds the motivation to move. You can also put the owners in the position of a buyer by asking: "If you found a home to buy that was $12,000 overpriced, would you pay the extra amount if you knew the owners really needed the money?” "We're moving to a higher priced area" "We need more money because we're buying in San Francisco and the prices are much higher there." Say to the owner; "Let me see if I understand. Because the value of homes is higher at your destination, then your current home will have to sell for more? Well then, you must be sure not to buy a home there from someone who is moving to Tokyo!" This should be said with a smile, but it should make the point that their destination doesn't affect the value of their home.

"What does it hurt to try it at the upper end of the range?" The Law of Contrast teaches that people make decisions by comparison. Perception of value is effected by the other options available. A high priced home makes other homes look reasonably priced. Communicate this to owners: "One of the effects of overpricing is that your home may be a 'Pinball Listing'. This is a metaphor of how the market reacts to an overpriced home. As in a pinball game where the ball bounces off the bumpers before reaching a scoring position, buyers 'bounce off' an overpriced listing into other homes. Your high price makes all the other homes look like good values."