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  • The Perception of Value

    The Perception of Value

    Great REALTORS® understand Buyer Psychology.

    The biggest, most motivated category of buyers for your new listing are ‘Current Buyers’, They’ve already viewed most or all of your competitors, but they’re not satisfied, for whatever reason. So, what are they doing?

    They’re waiting for new listings.

    As soon as you pull the trigger on your HOT new listing, notifications are going off all over town.

    It’s not hard to understand why most of the activity on your listing always occurs at the very start, and why this ‘Flurry of Activity’ tends to die off, quickly.

    Once the Current Buyers have come and gone, you’ll be left waiting for New Buyers to enter the market. But New Buyers are not as motivated as Current Buyers. They need more time to see more listings before they’ll be ready to write an offer.

    Ideally, you want to take full advantage of the Flurry of Activity from the Current Buyers, and sell quickly for the highest possible price with the least amount of hassle.

    But there’s an important caveat with ALL buyers that you must understand if you want to be a successful Listing Agent:

    Buyers MUST perceive good value in the property. If they don’t, they will focus on a negative. 

    This is the way our brains work. If we don’t subconsciously perceive good value (“this seems like a good deal”), we focus on a negative (“I don’t like this”).

    Now, the flurry is over. Two weeks later, the showings have dried up, and you drop the price $20K.

    Does the potential buyer think, “I hated this negative thing about that property, but perhaps I should now re-evaluate my feelings, based on this new price?”

    That’s a hard NO.

    Here’s the lesson:

    If a buyer perceives good value, they will OVERLOOK the negatives. If they DON’T perceive good value, they will FOCUS on the negatives.

    If you want to take advantage of the biggest and most motivated group of buyers – the Current Buyers – getting the price right from the start is critical.

    If your seller says, “We can always lower the price, later!” you need to logically explain WHY that’s a bad idea. 

     

  • The Big Picture on The Competition

    The Big Picture on The Competition

    “The house down the street is listed for $500,000, and it’s junk! So, our house should sell for at least $600,000!”

    You concentrate hard to keep a straight face. Must. Not. Roll. Eyes.

    You patiently explain that it’s the SOLD listings that determine a realistic list price.

    The SOLDS are reality. The ACTIVES are fantasy!

    You show them the SOLDS, but they’re still not convinced. Time to show them The Big Picture on The Competition.

    What’s the Big Picture? It’s the opposite of The Small Picture (3-4 active listings in the same neighborhood).

    How many active properties do you need to demonstrate the true scope of the competition?

    Assuming you’re in a big city market, how about 50?

    Wait! Don’t leave! Let me explain!

    First, tell me I’m not 100% correct on these two points:

    1. Your target buyer (for whatever listing) is NOT looking ONLY in the same neighborhood for the exact same size and style home as the subject property. 
    2. The price itself is the most significant limiting factor for most buyers.

    If you agree, consider increasing your analysis to a wide variety of different home styles and sizes, in surrounding neighborhoods, limited only by a specific price range,

    Now that you’ve got a BIG list, you can pick out the STRONGEST competitors and use those for comparison. Here’s how I would present this to my seller:

    “Mr. and Mrs. Seller, your target buyer has a lot of options available to them. That’s why I think it’s smart to be aware of ALL our competitors, including other neighborhoods, within a specific price range.”

    Now, you can show them your giant list of 50 active listings, and say this:

    “Of course, many of these listings won’t sell. Some of them are grossly overpriced, just like the one down the street that you mentioned! But I picked out a few good ones, so you can get a better idea of what we’re really up against, in terms of our current competition.”

    Now, show them the details on the few you’ve selected that are offering the best value for the money.

    Is this misleading? Of course not! It’s the BEST listings that you are competing against, not the overpriced junkers.

    You know what IS misleading? The Small Picture!

    How are your sellers supposed to make intelligent decisions based on such limited and skewed information? ‍

    “The more information you provide to your clients, the greater their ability to make informed and intelligent decisions.” – Ted Greenhough

    This is a fundamental truth that I teach throughout the Agent Skills Master’s Program. It’s so much easier to be a great agent when you simply provide the right information and stop providing the wrong information.

    The trick is to know WHAT information and HOW to present it.

  • The $100,000 Commission

    The $100,000 Commission

    Has this ever happened to you?

    You procrastinated, preparing for a listing presentation. Then, you got super-busy right before the appointment, so you slapped together the CMA at the last minute.

    Now, you’re glancing at the comparables at the stoplights on your way over.

    You’re not too worried because your best referral source recommended the clients, and it sounds like a slam-dunk.

    You meet them, and you make a good connection. You really like them! They’re smart, super-nice, and attentive to your presentation. Not to mention they’ve got a great house!

    Sure, you stumbled over a few questions. It wasn’t your best performance ever, but everything seems positive, and they’re going to give you a call the next day. 

    On your way home, you feel a bit bad that you weren’t better prepared, but you’ll make it up to them by proving they made the right choice. You’re already looking forward to how you’re going to market a great listing.

    You get the phone call:

    “I’m sorry, but we’ve decided to work with a different agent.”

    Oof! That one hurt. Super-nice people, a premium listing, and worst of all, you feel like you’ve let down your best referral source.

    Not to mention the $10,000 commission, down the drain. 

    Plus, what about all the lost future referrals you might have gotten from these new clients?

    You know darn well you lost the listing because you were over-confident, and you didn’t prepare as thoroughly as you should have.

    Hey, we’ve ALL done it. I’m no exception.

    I can’t fix what’s already been done, but I can tell you how to ensure it NEVER happens again. Here it is:

    Treat EVERY appointment like it’s worth $100,000.

    Think of your listing appointments as a game of chance. One out of every ten is going to be worth $100,000. It might be the million-dollar listing, or it might be the tiny apartment condo. The odds are exactly the same.

    I’ve personally sold tiny, low-commission properties that turned into total commissions of WAY more than $100,000.

    How? Because of the string of referrals that started with me doing a great listing presentation for a young couple, and then delivering a fantastic result on the sale of their simple, inexpensive condo apartment.

    Over the years, I got referrals from them, their parents, and then an explosion of referrals from referrals. 

    You NEVER know from where a string of referrals is going to originate.

    If you prepare for every listing appointment like it’s worth $100,000, you WILL earn an extra $100,000 quicker than you think.

    But it’s not only your attitude. You need better skills, too. Work on them both!

    If you need any further convincing, think about this:

    That one lost commission could have been the BIG one. Don’t let it happen again.

  • Why You Get Referrals

    Why You Get Referrals

    You get referrals from your past clients for one reason:

    They’re 100% confident that you’re going to make them look good.

    They boast about your skills like they just hired Michaelangelo to paint the powder room.

    They know with certainty that you’re going to give their family and friends the same exceptional service and skilled guidance that you provided to them. 

    When people have this level of confidence, they will go out of their way to recommend you, without being asked! They overhear a stranger talking about Real Estate in the grocery store, and they’re tempted to run over and push your services on them.

    The only thing that stops them is the fear of looking like a raving lunatic.

    When it comes to family and friends, there’s no hesitation.

    “You’ve GOT to use my guy! He’s the best REALTOR® in the world!”

    But what if your client’s experience with you wasn’t top-notch? It was okay. Your customer service was “fine.”

    But, they’re not 100% confident in your abilities. They wonder if maybe they could have done better. Will they still refer you?

    “Yeah, we better not.”

    Why should they take the risk that you might make them look bad to their family or friends? 

    Remember this:

    You don’t get referrals by asking.  You get them by DESERVING.

    You deserve referrals when you provide an exceptional Real Estate experience from start to finish. The foundation of that is having superior knowledge and skills, and the right systems and procedures to consistently deliver excellent results. 

    When you’ve got superior knowledge, skills, and systems, you can then focus on providing the best customer service experience.  

    Exceptional customer service is like the icing on the cake.  But you need the cake first.  Have you ever eaten a bowl full of icing? Sure it’s sweet at first. Then it gets a little sickening.

    Bake an awesome cake. Then, add the icing.

    In 1955, Albert Einstein gave this advice to a young man:

    “Try not to become a person of success, but rather try to become a person of VALUE.”

    You want more business?

    You can’t survive on customer service alone.

    Improve your knowledge and skills. Implement better systems and procedures. Exceed your clients’ expectations by actually BEING a better Real Estate agent.

    This is the real secret to a never-ending stream of incoming referrals.

  • 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.

  • Ten Steps to Greater Self-Confidence

    Ten Steps to Greater Self-Confidence

    Confidence is attractive.

    When you know what you’re talking about, and you present yourself with skill and authority, people will trust you more.

    TRUST is the reason you get business.

    So, how can you increase your confidence, and thereby create more trust?

    I’m not talking about “unwarranted self-confidence,” also known as “cocky arrogance.”

    I know for a fact that you are not suffering from unwarranted self-confidence.

    How do I know?

    Because these types couldn’t be bothered to read anything to try to improve themselves, which means they’re doomed to stay in their current state forever.

    Sure, it’s possible to fool a few people into trusting you through sheer bravado, alone. But it doesn’t last, and it does more harm than good to your brand, overall.

    Your brand, by the way, is NOT your logo or your tagline. Those things represent your brand on the surface, but your brand is something much more profound. It’s the feeling that people have about you, what you represent, and why you are different.

    That’s a vast topic, which I will discuss in more detail in future blog posts. It’s also the underlying theme of my entire online course – The Agent Skills Master’s Program. After all, when you’ve got skills that are light years ahead of your competitors, it’s incredibly easy and natural to create a powerful brand.

    For now, what are some practical ways for you to improve your self-confidence, and thereby increase trust with potential clients?

    1. Dress SHARPLY. If you’ve got some favorite clothes that make you feel good, I suggest you invest in upgrading your wardrobe to having more of the clothes you love and get rid of things you never wear. Dressing in sharp-looking clothes every day can make you feel more successful and presentable.
    2. Kill the NEGATIVE self-talk. You are what you think! This is too large a topic to cover in a couple of sentences, so please do some additional research if you have a problem with negative self-talk.  There are a few simple skills you can master to put this confidence killer behind you forever.
    3. Act POSITIVE. Speak positively and focus on solutions. Energize your actions and think about the positive outcome you want to achieve rather than thinking about why you can’t do it.  I am continually astounded by the power of the mind. Put YOUR mind to work!
    4. If you don’t KNOW something, don’t worry about it! I completed 1,000 transactions throughout my Real Estate career, and I uttered this statement almost daily: “I don’t know, but I’ll find out!” Then guess what I did?  I found out and responded.  You can, too. Don’t put unrealistic expectations on yourself that you should know everything.
    5. Work on your ORGANIZATIONAL skills and allow yourself extra time to prepare for meetings thoroughly. This is simple. The more prepared you are, the more confident you will feel.
    6. Fix your ISSUES. If you need to lose weight, quit smoking, get in better shape, or end an unhealthy relationship, DO it. Or at least take a baby step. Every journey begins with a single step. You’ll be amazed at how personal achievement spills over into your professional life.
    7. Set a small GOAL and achieve it. If you need to lose fifty pounds, that can feel overwhelming. But, to get started, what if you commit to not eating after 7:00 pm? That’s it, that’s all, for now. You can set another small goal, later if you want. It’s easy to achieve small goals, one step at a time.
    8. Clean up your ACT. You know what I do every morning when I come into my office? I clean up and organize for a few minutes. Then  I get to work in a tidy, organized environment for the rest of the day. It’s a small thing, but it pays off exponentially in increased productivity, and it improves self-esteem and confidence.
    9. Be GRATEFUL, kind, generous, and true to your values. It does wonders for your self-esteem and confidence when you feel good about yourself!
    10. OWN the fact that you’re better than you think. By taking this course and completing it, you’re accomplishing more than 99% of your competitors! And you’re just going to get better and better and better as you continue. You’re on the right track!

    Regarding item #10, please note that I copied these suggestions directly from the Agent Skills Master’s Program. The point is that investing in yourself to increase your knowledge and skills is BY FAR, the best way to improve your confidence dramatically.

    Experts exude confidence. That’s why people trust them.

  • The Motivation Alignment Principle (MAP)

    The Motivation Alignment Principle (MAP)

    You’ve probably got different buyers at various stages of the home buying process. Some are anxious to find a home as soon as possible, while others are just beginning the exploratory phase.

    So, how do you know each buyer’s motivation level?

    Here’s a crazy thought. Ask them!

    Just be straightforward and use this line:

    “In order to provide the best possible service to you, I need to be in alignment with your motivation level. For example, if you’re a ONE, I’mYou’ve probably got different buyers at various stages of the home buying process. Some are anxious to find a home as soon as possible, while others are just beginning the exploratory phase. a ONE, too, and you won’t be hearing much from me. But if you’re a TEN, I’ll drop everything right now and let’s go find your new home!”

    This simple statement serves several purposes, including:

    1. It demonstrates that you care about how they are feeling, instantly improving the relationship, and increasing the odds of continued good future communication.
    2. It shows your willingness to increase your attention to them in alignment with their increased motivation, if and when it happens.
    3. If they’re not highly motivated, it takes the pressure off of them. They no longer need to feel guilt about you doing a lot of work for them because… you’re not!

    If you have buyers who say they’re a ONE, that doesn’t mean you ignore them. In fact, if they’re a ONE, you should secretly be at least a TWO.

    Here’s what I would say is a TWO level of communication:

    You’ve got them on an auto-notification for new listings, and once every two weeks you check in with them with a simple email, something like this:

    “Hi, Sam and Suzy. Just a quick check-in to make sure you’re still receiving the new listing notifications (?). Please send me a quick response, so I know you’re getting them, and let me know if you want to make any changes to your search criteria. Thanks!”

    That’s all you have to do. You’ll be able to detect if their motivation level is increasing, based on their response.

    The trick is to have a good Follow-Up system in place, so you’re not contacting them haphazardly (or not at all).

    When you don’t have a system and you rely on your memory and you finally remember to follow-up after three months, that’s when you get this response:

    “Oh, we bought a house already. Thanks for all your help!”

    Does it make you mad when that happens?

    Well, it should. Just be sure to blame the right person… YOU.

    Sorry to be so blunt, but it’s ridiculous for a professional REALTOR® not to have a proper Follow-Up System in place.

    To learn more, check out last week’s post: The Ridiculously Uncomplicated Follow Up System (RUFUS).

  • The Ridiculously Uncomplicated Follow-Up System (RUFUS)

    The Ridiculously Uncomplicated Follow-Up System (RUFUS)

    You know what’s insane?

    Spending thousands on marketing and not having a reliable Prospect Follow-Up System.

    Or worse, forgetting to follow up with a referral or a hot lead you met at an Open House.

    Oh sure, you talked to them once.  Then two months went by, and you noticed a new listing.

    “Wait a minute. That address seems familiar.”

    Yup. They listed with someone else.

    Has this ever happened to you?

    You get busy, you forget, you write notes on scraps of paper and lose them. You have no follow-up system, whatsoever.

    It’s time to resolve this outrageously expensive problem, once and for all.

    Let’s keep it as basic as possible for now. In fact, let’s use a Ridiculously Uncomplicated Follow-Up system (RUFUS). Here’s why:

    If you can’t follow a simple system, you’ll never train yourself to use a more complicated program, such as Follow-Up Boss (which I’m told is excellent).

    As with any computer software, what comes out is only as good as what goes in, so training yourself to use a “manual” system first, is a good stepping stone towards something more robust.

    That said, even when I was earning in the high $800,000’s in yearly commissions (as an individual agent), the following simple spreadsheet is the only system I ever needed to keep track of ALL my leads.

    Open up a new spreadsheet and label the columns as follows:

    Column A             A, B, or C indicates the importance level.

    Column B             First name(s)

    Column C             Last name(s)

    Column D             Date of the most recent contact attempt – Update this every time you add a new note so you can sort your list newest to oldest or vice-versa

    Column E             Notes. What did you discuss, and what was the result? Just keep adding new notes at the front of the cell (not at the end) preceded by the date. The latest entry will always be visible, and you can review older notes if necessary.

    Column F / G      Email(s) 1 and 2 – List these in the same order as you list their first names in Column B

    Column H / I       Phone number(s) 1 and 2 – Same thing.  Always list information consistently.

    Now, start adding your leads into this spreadsheet and train yourself to review and update it daily. If you haven’t made the plunge and done the Master’s Program yet (including Module #2 – Getting Stuff Done), figure out your own way to force yourself to do this! It’s important!

    When you do this daily, all your prospects will be top-of-mind, and I guarantee you’ll NEVER forget to contact a prospect, ever again.

    HOW and WHEN to contact your prospects is another topic covered in this previous post. Please check it out to learn more.

  • Five Simple Steps to Getting Stuff Done

    Five Simple Steps to Getting Stuff Done

    As a busy REALTOR®, chances are you’ve got a hundred little things to get done every day.

    And you DO get them ALL done! Congratulations!

    But, what about the BIG stuff?

    You know. That website revision you’ve been planning for months, the new listing presentation, or the (fill in the blank) that you never seem to get to, because “there’s never enough time.”

    Do you know why there’s never enough time?

    It’s because you do the big stuff LAST when you should be doing it FIRST.

    Here’s the problem: The little stuff is NEVER done.

    You’ve got your priorities entirely backward. Here’s how to fix that right now:

    1. Accept that you CANNOT “fit in” the BIG stuff whenever “time allows.” Ha! The BIG stuff takes more concentration. You’ll need to work at larger projects for at least one solid hour at a time, without interruption.
    2. Plan to work on your BIG project for one uninterrupted Power Hour, first thing every morning, Monday to Friday.

    (Okay, you can get yourself a coffee, and you can quickly check your messages, but for each message, ask yourself if it’s vital to respond immediately, or can it wait an hour? To develop your habit of prioritizing your Power Hour, you need to purposely NOT respond to less critical messages.)

    1. After you scan your messages, and you’re ready to work an uninterrupted Power Hour on your BIG project, turn OFF all your devices, including your phone and your email. Now, get to work! You can set an alarm for one hour if that helps. ⏰
    2. Use your very first Power Hour to write a list of potential projects, prioritize them, and decide which one you’ll get done FIRST. They will ALL get done eventually, but it will go a lot faster if you learn to complete tasks, one at a time. ✔️
    3. Set a rule for yourself that your Power Hour is non-negotiable. Life will conspire to throw you off track. You were up late negotiating a deal. You’ve got TWO hundred little things to do tomorrow. Your kids are up early. Whatever the case, you need to figure out how to modify your routine, which probably means you need to start getting up earlier. You can have a nap later if needed.

    After only two weeks of this, you will have devoted TEN hours to completing your first BIG project. It’s incredible how much you can get done in ten hours! This, after wasting (insert number) of months/years, spinning your wheels.

    And guess what else? You STILL get the hundred little things done during the day, in LESS time. That’s right. You’re not only getting the BIG stuff done now (finally), but you’re also training your brain to be more efficient.

    For many agents, this is the #1 most important change they can make to their business.

    What if you fall off the wagon?

    Don’t worry about it! Just get back on. The longer you can do this (every day) without interruption, the more it will become an ingrained habit, and you’ll become a high achiever, just like that.

    Yes, it really is that simple.

    I strongly suggest you start this new habit TOMORROW. Otherwise, you might look back at this article six months from now and realize you’ve completely wasted six months of your life. Perhaps you’re thinking that right now.

    Write this in your calendar NOW, and good luck!

    To help you stick to your decision, send me a message NOW and let me know, “I’m doing it!”

    I’ll be cheering for you!

  • The Accidental Geo Farmer

    The Accidental Geo Farmer

    I started my Real Estate career just like you did, with zero clients, zero prospects, and not a clue what to do next.

    Since I had nothing better to do, I decided to go out and preview listings. Why? Because I LIKED looking at houses!

    There was no master plan, I assure you.

    I chose properties that were close to my home. Why? Because it was easier.

    After a while, I made a game out of it, and started taking notes: This is what I think buyers will like, what they won’t like, how much I believe it will sell for, etc.

    Then I tracked how well I did at the “Guessing the Sale Price Game.”

    Of course, I was terrible at first, but gradually my skills improved to a level I never would have dreamed of a few months before.

    I could walk into a house, look at it, and write in my notes, “Price needs to come down $10K, then it will sell for this much.” And I was right. Not every time, of course, but more often than not.

    Then I started doing Open Houses. I didn’t have any listings, so I borrowed them from other agents in my office.

    One day, I was chatting with a young couple at an Open House. They didn’t like the house I was showing, but I mentioned a nice one nearby that I had seen a few days before.

    They thanked me and said they would check it out.

    As an afterthought—just as they were walking out the door—I managed to squeak out, “I could show it to you if you like?”

    They looked at each other and said, “Sure!”

    It turned out they didn’t like that home either, but there’s a happy ending anyway. Within a couple of weeks, we found them a home they loved, and they bought it.

    Yay!!

    Later, they told me they appreciated my “expertise.” I knew about every house in the area, and I gave them my “expert” opinion on each one we viewed. They said I was very different than every other agent they’d ever met.

    Wait…

    Expert? Me?

    Yes! 

    No matter that I was only a few months into the business. I knew more about my area than any other agent.

    Next, I figured out how to leverage that expertise, and my business started booming. Starting from nothing, I earned $590,000 in commissions in my second year.

    I had accidentally become a highly successful Geo Farmer, not in the traditional sense of spending gazillions on marketing, but in something far more critical.

    I was the true AREA EXPERT. ‍

    Realizing the importance of this “secret” I had stumbled across, I continued previewing properties for the rest of my career.

    Knowing more than any other agent made me an indispensable source of valuable information.

    Anyone can spend money on marketing, but you can’t spend your way to being the most knowledgeable and skilled agent. You’ve got to be willing to do the work that others won’t.

    That’s one of the foundational principles of the Agent Skills Master’s Program.