My Store

Category: 7. Communication Styles

  • Have We Passed the Peak of the Market?

    Have We Passed the Peak of the Market?

    I’ll be using local (Calgary) data in this post. However, it’s not the data itself that is important, but rather how and why you should gather and demonstrate this critical information to your clients. You can easily do this in a few minutes, no matter where you are.

    We’ve had a wild market here for some time, but I’ve been feeling lately like it’s not quite as crazy as it was. So the question is, “Have we passed the peak?”

    It’s entirely valid that an experienced and skilled Real Agent will develop a sixth sense about the market. But when the public is saturated with news about how insane the market is, it’s hard to convince them of a contrarian viewpoint just because you “feel” a certain way.

    You want people to make good decisions? Give them good data. The monthly sales numbers are good. But what’s better than monthly data?

    Weekly data. 

    So, here are the weekly sales (since Feb 1) for detached homes in Calgary, which I just pulled from our system in less than five minutes:

    Date Range | # Sales

    Feb 1-7 | 404

    Feb 8-14 | 499

    Feb 15-21 | 480

    Feb 22-28 | 518

    Mar 1-7 | 547

    Mar 8-14 | 505

    Mar 15-21 | 523

    Mar 22-28 | 486

    Mar 29-Apr 4 | 453

    Apr 5-11 | 424

    Apr 12-18 | 394

    So, there you have it; we are indeed well past the peak of the market. The numbers prove it.

    This doesn’t mean the market is likely to change radically. On the contrary, there is still plenty of pent-up demand, so I believe the market will remain strong for some time.

    But it’s essential to understand when a market is shifting and contemplate possible explanations, such as:

    1. Some buyers have given up.

    Prices have risen dramatically to the point that some buyers can no longer afford to buy what they want. Others have lost out on so many multiple offers that they’ve given up out of sheer frustration.

    2. Remaining buyers are more conservative.

    Most of the “gun-slinger” buyers—those willing to write unconditional offers far over asking—have already bought. The remaining buyers are more patient and willing to wait for the right house at the right price.

    3. Inventory is still extremely low.

    This part hasn’t changed, but it does tie into #2 above. Since the remaining buyers are more conservative, they’re not jumping on whatever listing hits the market, as was the case earlier in the year.

    4. There are more over-priced listings on the market.

    This is because sellers are working off “old” inaccurate data. They think if a house sold for $750K in March, it must be worth $850K now!

    The main reason for this? Their agents are unskilled and do not provide their sellers with the correct information they need; for example, the information I’m discussing in this post!

    5. Concerns over rising interest rates, inflation, and the general state of the world.

    These are all valid concerns, and they tend to weed out the more conservative buyers. 

    All five causes above are interrelated. So, what’s the point of all this?

    Your clients need clear information to make intelligent decisions.

    It’s your job to provide that information.

    Weekly sales data can be another insightful factor to consider when determining the price of a listing. After all, over-pricing is the kiss of death in an active market (or any market). 

    It’s also an easy way to differentiate yourself from the real estate drones.

    __________

    From the Mirriam-AgentSkills dictionary:

    real estate drone drōn a real estate agent who provides the exact same information as every other real estate agent.

  • The 3 Most Critical Elements of Every Great Real Estate Agent

    The 3 Most Critical Elements of Every Great Real Estate Agent

    Integrity – “I care.”

    Do you lose sleep because you’re worried about your clients? Good. This means you have high integrity. 

    But integrity isn’t merely wanting to do the right thing. It’s about taking your responsibilities seriously and seeking out the knowledge and skills you need to deliver better results.

    That’s why the more knowledge and skills you have, the better you sleep!

    Knowledge – “I know.”

    Knowledge is the deep chest of information you rely upon to make informed and intelligent decisions and recommendations to your clients. 

    But knowledge doesn’t create success on its own. You need skills to fully utilize and monetize your knowledge.

    Skills – “I can.”

    Skills are how you bring everything together to accomplish more with ease and confidence. 

    A highly skilled agent with high integrity and a deep chest of knowledge, is unstoppable.

    __________

    It’s possible to have high integrity and a deep chest of knowledge but low skills.

    These agents know what their clients should be doing, but somehow they can never get the message across. As a result, they often become disillusioned with their careers.

    __________

    It’s possible to have high integrity and highly-refined skills but lack the deep foundational knowledge that those skills should be built upon.

    These agents make an excessive number of mistakes and often quit the industry out of sheer frustration, ironically, because they have high integrity.

    __________

    It’s possible to have deep knowledge and highly-refined skills but lack integrity.

    These agents focus on their own needs rather than their clients’. Despite the never-ending bluster and bravado, they’re not nearly as successful as they like to portray. They rarely get repeat business or referrals, so they need to continuously spend heavily to attract new business. As soon as they stop advertising, their business grinds to a halt.

    __________

    To become a great agent, you need all three elements:

    Integrity, knowledge, and skills.

    When you can honestly say, “I care, I know, I can,” it’s impossible not to become highly successful in Real Estate. (And you can stop chasing after low-quality “leads.”)

    The integrity part is a critical prerequisite that can’t be taught. 

    Knowledge and skills?

    The more you gain, the easier it gets.

    Wait. Is this a blatant advertisement to sell my course?

    Sort of, but actually, I’ve got an ulterior motive.

    Here’s how you can become the best REALTOR® you can be with unlimited lifetime access to the Agent Skills Master’s Program (do it at your own pace), and 100% of the proceeds go directly to support Ukrainian refugees:

    Simply click on this link: https://agentskills.com/ukraine/

    It’s the lowest price EVER offered and I don’t even want to see the money—only the charitable receipt.

    What do I get out of it? 

    The knowledge that me and you are making a real difference to people who desperately need our help.

    Have you been sitting on the fence? Now’s the time to jump off.

    On behalf of all Ukrainian refugees, THANK YOU.

  • ‘Running the Odds’ on Real Estate Pricing

    ‘Running the Odds’ on Real Estate Pricing

    ‘Running the Odds’ is a simple technique to help sellers and buyers take some of the mystery out of pricing.

    Here’s an example where my listing clients and I are trying to determine the best list price (somewhere between $799,000-$825,000).

    Option 1: Sale Price Odds with $825000 List Price

    <$800,000 = negligible ~ 0%-1%

    $800,000-$820,000 = 25%

    $820,000-$835,000 = 25%

    $835,000-$850,000 = 25%

    >$850,000 = 25%

    Option 2: Sale Price Odds with $799,000 List Price:

    <$800,000 = 10%

    $800000-$820,000 = 10%

    $820,000-$835,000 = 15%

    $835,000-$850,000 = 30%

    >$850,000 = 35%

    The odds are based on my experience and my property evaluation, accounting for the current market conditions, which are bonkers in my local market (slightly less bonkers than a month ago but still bonkers). So yes, I’m fully expecting multiple offers in both scenarios. But I also know that the higher the list price, the fewer offers are likely to be generated.

    (By the way, if you’re an Analyzer, don’t get hung up on the numbers in my example. You would need far more information to determine if I’m right or not, so just concentrate on learning the basic technique.)

    Here’s the message I want my clients to get: 

    If they choose the lower list price ($799,000), the odds are about 10% that they’ll get less than $800,000 (if they only get one offer). But, conversely, the odds would be higher that they’ll get a sale price of $835,000 or more (65% vs 50%) because a more aggressive list price in our current market increases the odds of more offers. Right?

    Of course, you can break this down further or show alternate scenarios, depending on what the client wants to understand.

    Now, it’s up to the client to choose! 

    For example, if they don’t want to risk even a 10% chance of ending up with a sale price under $800,000, they may choose the “safer” list price of $825,000. 

    On the other hand, if they have a higher tolerance for risk and choose the more aggressive list price ($799,000), I believe they’ll get more offers, and therefore they have a higher chance of hitting a home run. 

    By ‘Running the Odds’ with your clients, you’ll provide options and allow them to make their own decision based on their risk tolerance.

    So how do my clients feel about receiving this type of information?

    They love it! They feel relieved and enlightened, like I’ve completely removed the mystery around pricing. What felt like a crap-shoot before now seems like a simple solvable problem.

    Of course, this isn’t the only information I provide to my clients to help them make informed and intelligent decisions. For example, ‘The Big Picture CMA’ and ‘Pricing Psychology’ are two of the modules in the Agent Skills Master’s Program that help me arrive at the correct price range in the first place.

    (By the way, I’ve just recently updated the module descriptions on our website if you’d like to learn more about these modules. Just click on the link above and scroll down to “module descriptions.”)

    You can ‘Run the Odds’ on the buyer’s side also, using a similar methodology when you’re deciding on a price in a multiple-offer scenario.

    What are the odds of winning with varying prices in a multiple-offer scenario? 

    ‘Run the Odds’ to paint a clear picture and allow your clients to decide how badly they want the property.

    This can be a great way to demonstrate to your buyer clients that they have more control than they think they do. Simply use your skill and experience to determine the different odds.

    I’m curious if any other agents are using this method or something similar. Please let me know! 

    I’m always interested in fine-tuning my systems and procedures, as you should be too!

  • The Formidable Combination of Mindset and Organizational Skills for REALTORS®

    The Formidable Combination of Mindset and Organizational Skills for REALTORS®

    When I first got my Real Estate license, I had zero clients and zero prospects. 

    It took me three months to complete my first transaction—a sympathy listing—which I screwed up royally. 

    Then I went straight back to zero clients and zero prospects.

    Slowly but surely, I figured out what to do, and by the end of my first year, I had earned $180,000 in commissions. From my 2nd year on, I earned between $590,000-$865,000 for 12 consecutive years, all as an individual agent.

    I get asked all the time HOW I ramped up so quickly, starting from nothing.

    But when I answer, agents always look at me sideways and walk away, muttering that I must be lying. 

    Sometimes I feel like just making up an alternate story, but it’s not in my nature. So, believe it or not, here is EXACTLY what I did:

    1. I read numerous books and articles about customer service

    2. I talked to other agents about what made them successful

    3. I looked at hundreds of properties (by myself since I had no clients), taking extensive notes

    4. I worked on developing and refining my systems and procedures

    I also had a successful business background, so that certainly helped. But here’s the key:

    Instead of wasting my time chasing after clients and not knowing what to do with them, I spent my time developing my skills FIRST.

    To this day, when I’m not busy, my mind wanders to figuring out how to be better. What tiny (or gigantic) improvement can I make to become a better agent?

    Some things take five seconds, while other bigger projects need to be broken down into numerous chunks.

    But no matter how tiny (or gigantic), EVERY idea and task gets written down on my Brain Clutter List. More about this system in my last post:

    4 Ridiculously Simple Tips for REALTORS® to Become 10 X More Organized

    One agent read that post and asked me:

    “OK, Ted, But what exactly do you write on your list?”

    My answer: E.V.E.R.Y.T.H.I.N.G.

    Every tiny (or gigantic) thought that pops into my skull—20-30 items a day on average.

    He responded, “But doesn’t your list get cluttered and unmanageable?”

    Well, I suppose it would if I never managed it!

    It’s not about writing things down and forgetting about them. It’s the opposite. It’s about having a system to remind yourself about everything you need to do and then taking action.

    I’m knocking things off my list all day long. In fact, every time I look at my email, I scan my Brain Clutter List at the same time. Then, every morning, I review the “leftovers” and move some items onto my calendar, or onto a different list, or sometimes I just leave it, knowing I’ll get back to it later.

    Read this if you’d like to learn more:

    5 Easy Steps for REALTORS® to Defeat Procrastination

    __________

    Let’s get back to how I was able to advance my career so quickly:

    First, I was ALWAYS trying to think of what I could do to become better, and then I spent my time implementing those ideas. But here’s a vital lesson:

    It’s not one GIANT thing that will change your business and life. Instead, it’s hundreds and thousands of tiny things all strung together.

    But those things simply don’t get done if you don’t write them down! Ask yourself:

    What improvements have you made in the last week?

    Nothing? Perhaps you should start writing things down (and taking action). People who rely too much on their memory rarely advance their careers at any measurable pace.

    So, the answer to the big question, “How did I ramp up my business so quickly?”

    1. I had a mindset of constantly trying to get better, and;

    2. I wrote down EVERY idea and acted on it.

    You can do the same thing! 

    Try it for ONE day, and you’ll be shocked at how much more you get done. (Or, how little you got done the day before.)

    __________

    By the way, did I give the impression that all my ideas actually worked? Hahaha!

    I’ve spent hundreds of thousands of dollars and thousands of hours learning the hard way. But you don’t have to.

    Take a tiny leap of faith and sign up for the Agent Skills Master’s Program and learn EVERYTHING I know without all the trial and error and sweat and tears that I’ve expended over my entire career.

    I wish someone had made a course like this for me when I first started. Try it for FREE for  one week (first two modules). You don’t pay unless you decide to continue.

  • Presenting to Analyticals – 7 Tips to Reduce the Pain

    Presenting to Analyticals – 7 Tips to Reduce the Pain

    News Flash! On Tuesday, I had an article published on Housing Wire – ‘In Defense of the Individual Real Estate Agent’. It’s a unique post (not part of my regular blog). Check it out here.

    Presenting to Analyticals

    If you’re a Driver, Expressive, or Amiable, working with an Analytical can be exasperating.

    Drivers understand the need for data, but why does the Analytical ask so many questions and take so long to process information?

    Amiables can relate to taking time to process information, but why does the Analytical seem so unfriendly and overly obsessed with facts and figures?

    Expressives? They’re the polar opposite of the Analytical. They drive each other nuts!

    However, as REALTORS®, we need to learn how to communicate effectively with all different communication styles.

    Having a deep understanding of what makes others ‘tick’ opens up a whole new world of possibilities and makes it easier to accomplish more with less frustration.

    7 Tips to Reduce the Pain

    The Analytical is more introverted than extroverted, and they value data more than they value relationships when it comes to making business decisions. 

    1. You need plenty of information. But this is NOT a case of “the more, the better.” It’s way too easy to overwhelm an Analytical into Analysis-Paralysis. 

    2. If you’re doing a market analysis, stick to demonstrating supply, demand, and absorption rate. In other words, go deep on the important stuff, and avoid the unimportant.

    3. Be prepared to spend plenty of time discussing the “hows and whys” of the data being presented. This means you need to understand it thoroughly.

    4. Provide plenty of information about comparable properties, but again, be careful to guide your Analytical client so they don’t go too far down a rabbit hole looking for answers that aren’t there. 

    It’s easy for an Analytical to draw false conclusions from either too little or too much data. They’re searching for logical conclusions in what we know is often an illogical “science.”

    5. Be patient!  Allow your Analytical client to indicate when they are ready to proceed. If you rush the process, you’re not doing them (or you) any favors.

    6. Don’t waste time chitty-chatting and telling stories (unless your stories are about facts and figures). Analyticals care more about data than they do about being your friend. 

    The Analytical will hire whoever they think understands the data the best—not who they want to party with the most. (They definitely do not want to party with you, Expressives!)

    7. Analyticals often have great difficulty making decisions. You can help by simplifying things. For example, try the trial offer, where you write out only the most important components of an offer on a blank piece of paper, rather than handing them an entire complicated contract. One step at a time.

    Learning About all Four Communication Styles

    If you read those seven points above and you still cringe at the thought of working with Analyticals, that’s because I can’t provide all the information you need to become highly skilled at this critically important topic, in a tiny blog post.

    You need to study this subject more. The more skilled you become, the fewer times your head will explode.

    Only about 25% of your fellow humans communicate the same way you do. This means we all need to learn to deal more effectively with the other 75% if we want to succeed in our relationship-based business. 

    When you set your mind to study and practice communication skills (the opposite of sitting around thinking about it), it’s entirely possible to turn what seems like drudgery into a challenging but enjoyable exercise of your knowledge and skills.

    The good news is we all have traits from all four styles deep within us. You just need to learn how to access those traits and bring them to the surface when necessary.

    I’m not trying to sales-pitch you into taking my course just because one of the modules is on Communication Styles. If you’re not ready to take the plunge yet, that’s okay!

    You can learn a ton about this subject for FREE on the Internet. I suggest you do that. It’s one of the most important skills you can learn.  

    By the way, if any of you Analyticals have taken offense at this article, know this: 

    I’m one of you! 

    Whether you are an Analytical or one of the other three styles, it’s important to understand yourself as much as it is to understand others.

    New! Would you like to rate your current REALTOR® skills? Check out the 70-Skills Challenge

    This article was inspired by module #7 – Communication Styles – part of the Agent Skills Master’s Program. 

    In ‘Communication Styles,’ I explain step-by-step how to quickly identify a person’s preferred communication style (Driver, Analytical, Amiable, or Expressive), gain a deep understanding of your own style, and massively improve your communication skills with everyone.

    Here’s another article inspired by the same module: Communicating with Couples.

  • Communicating with Couples

    Communicating with Couples

    Is it true that opposites attract?

    Yes, and no. 

    Often, we are attracted to character strengths that are opposite to our own perceived weaknesses. For example, an introverted person might be attracted to a more out-going person and vice-versa.

    But having different communication styles doesn’t mean that we don’t hold the same values and attitudes.

    Rather than thinking in terms of opposites, it’s better to think about you and your partner as being complementary to each other. ‍❤️‍

    —————————————

    Relationship experts all agree that the “3 C’s” – communication, clarity, and compromise – are necessary for any successful relationship.

    This is not only true in marriage, but also with friendships and business relationships.

    In a relationship-based business, such as—oh, I dunno, let’s say Real Estate—understanding how to modify your own style to communicate better with a different style is arguably the most important skill you can learn. 

    It’s doubly important and doubly complex because practically every day, we’re dealing with two people at once—the married couple—who rarely have the same communication style as each other!

    So, how is it possible to communicate effectively with two different communication styles at once?

    —————————————

    Let’s say you’re doing a listing presentation to a couple. One is an Expressive, and one is an Analytical (polar opposites).

    How do you deal with that situation?

    Amateurs will present to the person they are the most comfortable with (the one with a communication style closest to their own).

    That’s a massive mistake. You may think, “At least I’ve got a 50/50 chance”, but that’s completely wrong.

    You think only one of them is the decision-maker? Ha! Maybe in the 1950s. 

    Today, couples have to AGREE on important decisions. If they disagree, the answer is NO. ‍♀️

    An expert presents to a couple by switching styles, back and forth, throughout the presentation.

    For example, with an Expressive/Analytical combo, you’d better sit down before the presentation and establish rapport with the Expressive partner before you even start talking about Market Stats with the Analytical partner.

    “But Ted! If I switch back and forth throughout the presentation, won’t that interrupt the flow and slow things down?”

    That’s amateur-thinking. Couples have already learned to appreciate their different styles and to be patient with each other.

    Sure, maybe it takes a bit longer, but it’s WAY more important to make an impression on both partners than it is to burn through your presentation as fast as you can.

    Yes, I’m talking to you, Drivers. (Drivers are the most resistant to modifying their own style).

    By the way, I’ve never met a REALTOR® who didn’t believe themselves to be at least a borderline expert on this topic. 

    And yet, the only ones I’ve met who actually were truly experts are those who devoted considerable time to study, practice, and developing their skills, specifically in this area. 

    It’s no coincidence that these were also the most “naturally” successful agents I’ve met.

    If you think you’re a natural at this, I can assure you, you are NOT. But it’s not hard to learn. Just make it a priority to learn more about communication styles. Take a course. Any course. Please!

    —————————————

    This article was inspired by module #7 – Communication Styles – part of the Agent Skills Master’s Program.

    Within this module, you’ll learn about all four unique communication styles, what makes them tick, and how to modify your own style to build trust and deep personal relationships.

    If you’re not ready to make a giant leap forward in your career, you could learn a tiny bit more about Communication Styles here: Why Certain People Drive You Crazy.

  • Why Certain People Drive You Crazy

    Why Certain People Drive You Crazy

    We all naturally ‘click’ with some clients. It’s fun and easy to work with them.

    Others? Not so much.

    If you’re like most everyone, some folks just rub you the wrong way.  But, did you know that you probably drive THEM crazy, too?

    Think about which of the following types drives you the craziest, and then I’ll reveal YOUR type.

    1. The person who likes to control everything and has little to no patience for “chitty-chat.”
    2. The loud, outgoing talker who shows little interest in your purely logical argument.
    3. The quiet, reserved person who can’t seem to answer a straightforward question.
    4. The engineer-type who has to analyze everything to death and can’t make a decision.

    Now, before I reveal which type YOU are, understand that the above negative description is coming from the perspective of your opposite communication style, not from me!

    If you chose #1 (The Driver), you’re #3 (The Amiable), and vice-versa. You drive each other crazy.

    If you chose #2 (The Expressive), you’re #4 (The Analytical), and vice-versa. You drive each other crazy.

    The reason you drive each other crazy is that you are opposites in two key areas:

    1. You either value facts and data more (Analyticals and Drivers), or you value relationships more (Expressives and Amiables), and;
    2. You are either more introverted (Analyticals and Amiables), or are you are more extroverted (Drivers and Expressives).

    It really is that simple to determine a person’s preferred communication style. But it takes time and effort to learn what to do about it.

    When you encounter people with a different communication style from your own (approximately 75% of the people you meet), and you understand better how they think, it’s easy to alter your style to accommodate them, and dramatically improve your interpersonal relationships.

    You’re in a relationship-based business, after all.

    Better relationships = more moula.

    The golden rule is dead. Do NOT treat people the way YOU want to be treated. Treat them the way THEY want to be treated.

    If you’re a professional REALTOR® and you don’t think this subject is worthy of serious, dedicated study, I’m not exactly sure how you’re even making a living.

    Don’t make the common mistake of assuming you’re a ‘natural’ at this stuff. If you still run into people who drive you crazy, you’re not.

  • Communicating in a Pandemic

    Communicating in a Pandemic

    Many agents are using the current downtime to reach out to their database, which is excellent!

    However, do you communicate with every client in the same way? If so, you should probably stop that.

    There are four distinctly different communication styles, and you need to communicate with them in the style that they prefer.

    The Analytical

    Analyticals may appreciate an email more than a phone call or a zoom call. As with anyone, you should start by checking in and asking how they’re doing, then give them some basic information about how the market is being affected. If you want to continue the conversation, ask them if they’re interested in receiving any further data on the market. If you then follow up with some fancy charts and graphs, the Analytical will think you’re the greatest!

    The Driver

    Drivers probably do not need to hear from you unless you have something specific to discuss. If you do contact them, either an email or phone call is fine, but make sure you get straight to the point. The worst thing you can do with a Driver is to call them to “chitty-chat.”

    The Expressive

    Call them! Often! Either by phone or Zoom. And be prepared for a long gab session, every time. Espressives are outgoing, and they get energy from personal relationships. They’re also the most fun conversationalists. Take the time to enjoy their stories, and be prepared to contribute one or two of your own!

    The Amiable

    The Amiable is more reserved and less talkative than the Expressive, but they’d still love to hear from you! A phone call is best because a zoom call may be too intimidating. Also, understand that you’ll need to lead the conversation, so be prepared with a few different topics to discuss. The Amiable will appreciate and remember your phone call more than any other type.

    If you don’t know which communication style your client is, start listening for clues and create a system to keep track of this vital information, for future reference.

    Analyticals and Amiables are more introverted, while Drivers and Expressives are more extroverted. Analyticals and Drivers care more about facts and figures, while Amiables and Expressives care more about relationships.

    Becoming skilled at identifying communication styles is one of the most important skills you can learn as a professional REALTOR®.

    Good luck with your calls (and emails), and stay healthy.