Real Estate also requires Team-work

As a sales trainer I spend much of my time trying to motivate people. Helping them realize they truly can become what they want to be. It makes no difference whether their goals are strictly financial or they simply want to take their career to the next level. The most successful people, regardless the industry they work, all seem to possess the same characteristics. They are truly professionals at what they do. I have a deep interest in how the top 100 real estate agents in the United States perform on a daily basis. What do they do differently from the other million agents across the Country? Thorough research indicates that all the top producers use the same basic techniques. As it turns out, it isn’t rocket science. They mostly use the same techniques that have been producing results for the last forty years. In fact, it is more of a characteristic than a technique.  We see the same characteristics possessed in the sports arena.

We can learn a lot from Coach Nick Saban.

Do you ever listen to a coach, during an interview; explain why they lost or what makes their team win? We can learn many lessons about life and how to become successful at whatever we do, if we will only listen intently. I recently read a newspaper article focusing on a speech given by Coach Saban. As I read I highlighted the main points of interest they had to possess in order to win a National Championship. They are the same things required to become successful in sales. Let me expound on them individually.

Coach Saban is always stressing the mindset of the team as well as individual players.

It doesn’t matter how much athletic ability they have, they won’t reach their real potential until they have the proper mindset. They must have mental toughness to work through pain and adversities. They must have confidence in their own ability to compete on any level. Their attitude allows them to think every play through carefully and then execute; all in a matter of seconds.

Coach Saban understands they can’t win all games.

He places great importance on the ability to overcome losses, learn from them, put them behind you, and move forward to achieving the ultimate goal. Salespeople have these same losses. We miss more sales than we make so we need to learn why we lost the sale, and use that information to help us make the next sale. We can’t dwell on our losses. We need to focus on the opportunities that lie before us.

All coaches talk about working to improve.

I believe the key word is work. Getting better at anything requires constant focus and consistently, diligently working to become better; to be more proficient. Successful sales people understand that most sales don’t come easily. They have to work in order to produce. Many people enter the sales field but aren’t willing to work hard enough, or smart enough, to produce enough income to survive and end up quitting. They settle for a job that has fewer requirements and earns them less wages.

College Coaches are always talking about developing players.

They knew how to play the sport but they are just average. Coaches want to develop them into exceptional players. They have athletic abilities but haven’t been taught how to hone their skills to perform very well. Just like sports players, sales people may have the basic abilities to sell but haven’t been taught how to perform a high level. Sales people aren’t born knowing how to be sell; they are taught! After all, didn’t we have to learn how to talk, walk, read and write? Sure we did. The reason for getting an education was to learn. At some point in life, some people decide to enter the sales field. If they aren’t properly training, they will become the norm rather than the exception and never reach the level of production they are capable of reaching.

Coach Saban talks about being a good leader.

Leadership is required to become successful. He says, “in order to be a good leader, you’ve got to have vision.” He isn’t talking about eye vision. He’s talking about mental vision. At what level you want to perform. At what level you visualize your accomplishments. A career in sales has the same requirements. A Chinese Proverb says, “He can who thinks he can. And he can’t who thinks he can’t. This is an indisputable law.” A former President of the United States, Theodore Roosevelt  once said, “Far better is it to dare mighty things, to win glorious triumphs even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the grey twilight that knows not victory nor defeat.“

Coach Saban also stresses the importance of having a plan.

Can one imagine how helter-skelter a football game would be if there were no set plays. No one would know what the other person was going to do. Winning would by accident only. Sales are the same. We must have a plan. To become successful in sales of any kind, we must plan our work and then work our plan or we’ll accomplish very little. Without a plan, we will let insignificant things hinder us from doing significant things that produces positive results.

We must also set a good example for others.

In football, work habits on the practice field are a good example. If one player works hard in practice to be the best he can be set and example for others to follow. Leadership is very demanding. It requires very hard work as well as verbal communication. How can one player call on another to work hard if he doesn’t work hard himself? Leadership is contagious on and off the field of sports. We are all heroes to someone. Try this little test on for size. Take your hand and point to something and hold it there for a second. Now look at your hand. In most cases three of your fingers are pointing at yourself. People are watching everything you do. You are setting an example for someone else. This illustration tells me that before you tell someone else something, the emphasis is on you knowing it yourself. You are the example.

Coach Saban talks a lot about accountability.

Football players must hold themselves accountable for their own actions. Then the coach is also going to hold the player accountable. How many times have we seen star football players get in trouble with the law; then admit they should have been more responsible about their own actions? Sales people must also be held accountable. As a productivity coach, one of my main responsibilities is to hold people accountable for their actions. Naturally my accountable doesn’t involve discipline. It involves reason for allowing certain actions to happen. The top producing sales people all have coaches to help them stay on tract; to stay focused on doing the things necessary to reach the goals they have set. Sales people have to set their own principles; their standards of practice, that guide everything they do. Accountability aids them remaining focused on principles.

Lastly, Coach Saban says a good leader must be a servant to other.

Essentially every player on the football field is providing a service to the other plays. That’s what causes team unity, which results in wins. All sales people must focus on serving others; whether we like the term or not, we are servants to others. We must put others need above our own. When you see someone that’s always doing things for other people, without being recognized for the things they’ve done, that individual has one of the main characteristics needed to become a successful sales person.

My favorite quote from Coach Saban is “Discipline yourself to do the important things that lead to your success………“You either suffer the pain of discipline, or you suffer the pain of disappointment.”

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Gratification is the reward beyond income

earned by a real estate agent for providing consumers quality service. I believe gratification to be an intangible, internal feeling of accomplishment for helping someone beyond fiduciary duties. More times than not, the consumer don’t even realize the magnitude of service you have provided because it wasn’t openly discussed. For example, people I have represented in the sale of their property that were financially distressed. They were head over heels in debt, couldn’t make their monthly payments, and were exponentially getting deeper in debt with the passing of every day. Helping them get released from their financial obligations and get into a position to reestablish their credit rating was gratifying to me. Another example is assisting someone buy a home that will quickly appreciate in value. This client didn’t realize the quality of service I had provided until they were ready to sell their home; only to realize how much it had appreciated.

Real estate agents have a fiduciary responsibility to

their clients to protect the client’s best financial interest. This is one reason that gratification should be an agent’s driving motive for practicing real estate, rather than money. Proper representation begins when first meeting a potential customer.

Upon initial contact with a prospective buyer

there needs to be a consultation for both parties to get to know each other. I’m talking about a real meaningful conversation that will pave the way for a relationship to begin. This is the best time to find out everything you can about the people you are hoping to work with. It is a time for the consumer to learn things about you, about your character, your family, and your business qualifications. After sharing personal information with each other it is time to start talking real estate.

Alabama state law requires all licensee’s to

explain the brokerage or agency relationships that are available to them. It is during this RECAD period the consumer should choose the type relationship that best suits their needs. Once they select the type agency they need, the agent should explain fully and completely the ramifications involved in that particular relationship.

Explain to the consumer that buying and selling real estate in Alabama

is very different than almost all other states. Alabama is a Caveat Emptor state; more specifically it is a modified Caveat Emptor state because new homes are exempt from the Caveat Emptor law because the home is warranted by the builder, if they are the first people to inhabit the home. All used or existing homes fall under the Caveat Emptor law which places total responsibility on the buyer to thoroughly examine a home prior to closing the sale. The agent is responsible to inform their clients of all inspections that need to be performed prior to closing to protect the buyer’s best interest. If a buyer fails to heed the agents advice, and should some serious issue with the home arise after closing, the buyer has no legal recourse in the judicial system.

During the consultation the agent needs to determine

exactly what the customer needs, why they are looking to buy, what their dream home might be, and what they can really afford to pay for a home. Needless to say I think you can see why I call this consultation a very meaningful conversation. I believe it to be the most important step in the entire buying process and it happens to be the step that many agents bypass. Many agents and prospective buyers never have a mutual understanding so they never are on the same page. I’ll never understand why people omit this step?

People buy from people they have a relationship with….

From people they respect and trust. How can these characteristics exist if they never have a real meaningful conversation with each other? The reason for not having this consultation is partially fear and the lack of communication skills. I think it’s very important to understand that people are just people, whether they are agents or consumers. Nobody is going to kill you for simple talking to them or even asking them personal questions. The worst thing that can happen is a personality clash in which case they won’t do business with you; but they probably won’t do business with you anyway unless you find out their true needs in advance. Give it a try and you’ll be pleasantly surprised.

Gratification becomes possible only through developing a quality relationship.

Relationships begin and are enhanced throughcommunication. Trust and respect comes with the passing of time and seeing results that stem through conversation. A sincere interest in the consumer’s best financial interest will soon develop.  You will find yourself focusing on the consumer’s desires and the amount of income you receive will be secondary.

Compliments aren’t gratification so don’t confuse the two.

It always feels good when someone compliments you on a service you have provided. Just remember that gratification comes quietly. It is a feeling deep within your soul that can’t be taken away from you. Nobody else will ever know it, but you will feel a sense of pride that you’ve never felt before. Be careful because it is contagious.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Realtors Most Valuable Tool

I think we can all agree that the Internet has changed the way we do business. In fact it has changed the way everything works world-wide. This didn’t happen overnight. The migratory process in development of the Internet, as we know it today, has been over thirty years in the making. Today we see Internet use change almost daily. That is more advanced programs are offered daily to improve the way various programs work. There are no limits to the advancements that will come in the near future.

Many of us have procrastinated in learning how to successfully use the Internet to grow and sustain our business. The basic knowledge of so many people is limited to sending and receiving e-mails. Some people know far more about using social networks (Facebook, Twitter,Linkedin) than they have in using Internet based programs that will make their lives much better. The longer we wait to learn how to use the computer and the Internet, the harder it is to learn, because of the magnitude of things they offer.

I have been in real estate since 1969. During most of that time we were dependent upon the Newspaper, TV, Radio, and U.S. Mail to market properties we had for sale. A few years ago the birth of real estate magazines made our marketing easier by pinpointing specific properties; which made us less dependent on other Medias.  With the prominence of the Internet in today’s market, most other media have become almost obsolete.

The National Association of Realtors® (the largest business association in the United States) does regular studies on the methods the general public uses when buying and selling real estate. They also survey how many use Realtors® to make their purchase; what they look for in a Realtor®; how they grade the performance of the Realtor® they used; and etc.

There are many ways to find a home to purchase. The Internet, yard signs, open houses and newspapers are frequently cited as information sources. The Internet, in particular, continues to increase in popularity among home buyers as a search tool. A recent study by NAR indicated that more than three quarters of buyers, 77%, used the Internet as an information source. It also indicated that almost one fourth, 24%, of buyers first found the home they eventually purchased on the Internet. The study also showed that first-time buyers used the Internet more frequently than did repeat buyers to search for homes.

In spite of the burgeoning use of the Internet as a home search tool, real estate professionals are still the number one source of information about homes for sale. 93% of Internet searchers also used a real estate agent as a source of information. Both Internet searchers and non-Internet searchers were equally likely to first learn about the home they purchased through a real estate agent.

Use of the Internet has not diminished the role of real estate professionals in the home purchase process. It has enhanced the buying process for the consumer. Interestingly, even those home buyers who used the Internet to search for a home were more likely to use a real estate agent in the home purchase transaction.

Home buyers rely on the experience and professionalism of their real estate agents. The study showed the two most important factors in choosing an agent are reputation and knowledge of the neighborhood. More than half of first-time buyers found their real estate agent through a referral from a friend, neighbor or relative, or they personally knew the agent.  What buyers most wanted from their agent was help in finding the right home to purchase.

The Internet offers the ease of searching many properties in a very short period of time. It even allows a buyer to see pictures of outside views as well as views of the inside; how many bedrooms and baths; approximate square footage; a listing of all amenities. It provides much helpful information. However, the Internet is limited to providing printed material. Only a professional Realtor® can help the buyer analyze the investment advantages or disadvantages. Only the Realtor® can fully explain state laws, required inspections, negotiate between the buyer and seller, and intricate things of importance to the buyer’s best financial interest. Regardless of how someone finds a property to buy in Alabama, it is in their best interest to engage in an agency relationship with a brokerage firm in Alabama.

To make Internet searching more helpful, developing a relationship with real estate agents is a great benefit. The agent can set up campaigns and search criteria that will allow prospective buyer to receive notification of the most recent listings to come into the market that fits the criteria described by the buyer as things of interest. With this type situation the Internet is working for the buyer while the buyer is doing other things.

The Internet has greatly improved the way real estate agents communicate with buyers and sellers and vise verse. However, it is of most importance that a buyer is totally honest with their agent, and that the agent be totally honest with the buyer at all times.

Real estate agents are professionals that have been educated in all aspects of buying and selling real estate. They aren’t tourist guides. Before the agent shows a buyer a home or property, they need to determine that the property meets the buyer’s requirements. If all criteria are not met, a showing is a waste of time for both the agent and the buyer. If a relationship between the buyer and agent is established, the Internet can be the most valuable tool for communication and searches.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Broker Supervising Sales Agent

Just exactly what are the responsibilities

of a qualifying broker? This is a difficult question to answer since we are limited to space. “Broker Responsibilities” is a more fitting title for a book, but I’ll attempt to share some of the major responsibilities. In most cases, the owner of a real estate agency also assumes the role of a qualifying broker. Common sense tells us the owner’s main concern is making decisions that will effectively grow their business and make it profitable. A smart business owner will hire someone to be the qualifying broker for agency because the daily activities for both the owner and the qualifying broker are enormous. Each position is a full time job within itself.

Have you ever known of

an agency owner that didn’t also list and sell real estate? There are some that are only owners and actually practice real estate, but they’re few and far between. When you realistically think about it, how many people are really good at multitasking while fulfilling major management positions. There is an old saying, “When the cat’s away, the mice will play.” If an owner is out showing homes, who is left in the office to make major business decisions; who is left to assist the sale force? A smart business owner should realize the importance of hiring qualified people for management positions so they can focus of the overall growth on the company.

There are also legal reasons to hire a qualifying broker

rather than assuming the duties yourself. According to Alabama Statutory law, §34-27-1 states, “This chapter requires that a real estate salesperson be licensed under a qualifying broker. A qualifying broker is held responsible to the commission and to the public for acts of each salesman licensed under him.” By this law we see that every real estate agent must under the tutelage of a qualifying broker, and the broker is responsible for all acts of the agents under them.

Alabama License Law, Section §34-27-2 (12) defines a qualifying broker as, “A broker under whom a sole proprietorship, corporation, partnership, branch office, or lawfully constituted business organization as the Legislature may from time to time provide is licensed, or a broker licensed as a company to do business as a sole proprietorship who is responsible for supervising the acts of the company or proprietorship and all real estate licensees licensed therewith.” Here we see the qualifying broker is responsible for supervising all agents licensed with their company.

Having been a qualifying broker for close to 40 years,

I fully understand the magnitude of responsibilities placed on the broker. I know from experience that if a sales force consist of as few as 15-20 agents, the duties of the qualifying broker is all he or she has time for. And from my experience as a qualifying broker, the work day consist of 18-20 hours most days. The position takes some getting used to. I found it very difficult to ever totally relax. The qualifying broker never knows what actions their agents are taking that could lead to possible legal issues and the broker is held responsible for everything agent may say or do.

Statutory law, Section § 34-27-34 (a) (1) tells us

who may serve as a qualifying broker; “A broker may serve as qualifying broker for a salesperson or associate broker only if licensed in Alabama, his or her principal business is that of a real estate broker, and he or she shall be in a position to actually supervise the real estate activities of the associate broker or salesperson on a full-time basis.” Take note this law said “supervise real estate activities on a full-time basis!” Some National Franchises mandate that the qualifying broker cannot list or sell real estate. That is they are non-competing agents. While some other franchises almost mandate that a qualifying broker competes with the agents they supervise. I know of so many cases where agents had to make decisions on their own because they couldn’t reach their qualifying broker. With the commonality of cell phones, there should never be a time when an agent shouldn’t be able to reach their broker. Yet it happens every day.

Let’s look at one last law; § 34-27-34 (a) (2), “A salesperson or associate broker shall not perform acts for which a license is required unless licensed under a qualifying broker. A qualifying broker shall be held responsible to the commission and to the public for all acts governed by this chapter of each salesperson and associate broker licensed under him or her and of each company for which he or she is the qualifying broker. It shall be the duty of the qualifying broker to see that all transactions of every licensee engaged by him or her or any company for which he or she is the qualifying broker comply with this chapter. Additionally, the qualifying broker shall be responsible to an injured party for the damage caused by any violation of this chapter by any licensee engaged by the qualifying broker. This subsection does not relieve a licensee from liability that her or she would otherwise have.

This is by no means a complete explanation of the qualifying broker responsibilities but it is the root meaning of the position. It should be enough to cause someone to think twice before deciding to become a qualifying broker; especially if you are thinking of working with a company that doesn’t place you in total control over the agents you would be responsible for. In the past I have been the qualifying broker for various corporations, and when I reflect on the way I supervised people; I was very strict and somewhat difficult to work for. On the other hand, we were very professional, very productive, and we had very few legal issues arise. If I had it to do all over, I do it the same way because some of the agents that worked under my guidance year ago, now own and manage their own brokerage firms that are very productive.

With all this in mind, the main responsibility of a qualifying broker is to protect the consumers best financial interests when buying or selling real estate in Alabama, while protecting and guiding the agents licensed under them against illegal and unethical practices.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Disclose RECAD & Caveat Emptor in first conversation

The most important fact

an Alabama real estate agent can share with prospective buyers and sellers of real property in Alabama is that Alabama laws are different than most other states. Especially those states adjacent to Alabama because industry standards tend to spread across state lines. Alabama is a “Caveat Emptor” state. This simply means “buyer beware!”  To be more precise, Alabama is a modified Caveat Emptor state; because it exempts “New Homes” from Caveat Emptor. New homes are warranted by the builder while secondary (pre-existing) or used homes are not warranted by anyone. The purpose of “Caveat Emptor” is to notify the buyer that it is his responsibility to have the proper inspections performed on a home before they actually close on the sale. The buyer is not to rely on the seller to disclose all imperfections of a property, when making a decision whether to buy or not to buy.

Due to influence of markets in other states, some brokerage firms require their seller to complete a “Sellers Disclosure” form at the point of listing. That’s a fine practice to have in place in states that do not have Caveat Emptor, but in Alabama that just complicates the issue. The seller of real property in Alabama is not obligated to disclose any defects except defects that affect health and safety; unless the seller is asked a specific, direct question about a deficiency.  It is solely the responsibility of the buyer to investigate and determine a homes condition prior to closing on a sale. Charles Sowell, Senior Counsel for the Alabama Real Estate Commission has stated it plainly in an article entitled, “Caveat Emptor vs. Seller Disclosure.”

As a licensed real estate agent in Alabama,

it is our responsibility to explain to all prospective buyers how Caveat Emptor affects their buying decisions. Since Alabama is a Caveat Emptor state, it is to the best interest of the buyer to be represented by a professional, qualified brokerage firm to ensure that proper inspections are completed. This is one of the main reasons Alabama has a RECAD (Real Estate Consumer’s Agency and Disclosure Act) law. To inform a buyer the four ways they can be represented by a brokerage when buying real estate in Alabama. Alabama law clearly states in Rule 790-X-3-.13 that all licensees are required to provide the Real Estate Brokerage Services Disclosure form to the consumer as soon as reasonably possible for his or her signature.  Consumers are not required by law to sign the form, although the licensee should encourage that it be signed. If the consumer declines to sign, the licensee shall make a note to this effect on the form. I will assure you that this from is by no means a contractual agreement; it is only an acknowledgement that the various Agency relationships have been explained in detail.

The question then becomes

why this RECAD form is so important. It’s really very simple. The consumer needs to know if and by whom they are represented when buying or selling real estate in Alabama. For some reason many consumers don’t want to work with just one real estate agent. They want the freedom to shop around and use a number of different agents. I guess they feel like they can get a better deal from the agent that list a particular property.  If they truly understood the law, they would realize the importance of being represented by only one agent because Alabama law does not provide for multiple agents to represent the same consumer. If a consumer is not represented by one particular agent, then all agents are limited to the information they can share with that consumer. Personally I believe this dilemma stems from the agents inability to fully explain RECAD and how it relates to Caveat Emptor.

I don’t want to scare anyone that’s thinking about buying real estate in Alabama because it is a very safe process if you understand the law. I fear some real estate agents are so consumed with completing the required RECAD process; they fail to deliver the nuts and bolts of why these two issues are so important. I honestly believe the majority of consumers appreciate and respect an agent that tells it like it is right up front. Agents shouldn’t sugar coat our laws, or hurriedly skimp over explaining the RECAD process.

It is the duty of the real estate agents

to explain to prospective buyers that in a Caveat Emptor state, it is their duty to discover any deficiencies in a property before they buy it. If they don’t heed this warning and some legal issue arises after the date of closing, the Caveat Emptor law can hinder them from receiving financial aid to correct such deficiencies. The consumer is not expected to know the laws of Alabama, but a licensed real estate agent is; and it’s their responsibility to explain such laws to the consumer. Should a consumer seek legal damages, and it is decided in the Judicial system, the agent could be found guilty of negligence.

My suggestion to all real estate agents

is to tell it like it is, as soon as you meet or communicate with a potential buyer or seller. Fully explain Alabama law as it applies to those buying or selling real estate in Alabama. It is the agent’s duty, both ethically and legally, to protect the consumer’s best financial interests.

My suggestion to the consumer

is if an agent doesn’t immediately disclose Alabama law to you; ask them about it or find a more qualified agent that can represent you and protect your interest.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Personalities Transfer Over The Phone

There are an unlimited number of ways to generate new leads for people wanting to buy or sell real estate. The most popular way in today’s market is internet generated leads. This is largely due to the number of people searching the internet to better educate themselves on real estate values. Through their searches, their contact information is captured creating a lead. In turn these leads are sold directly or indirectly to real estate agents as prospective buyers or sellers. Since most real estate agents have their own business website, searchers will sometimes be captured and processed as possible leads.

Regardless how leads are captured and passed on to real estate agents, they are totally worthless unless they are personally contacted and verified as a bonafied buyer or seller. This is the point that a perfected system falls apart. By majority most people are uncomfortable calling people they have never spoken with before so they depend on emails and drip campaigns to do their work for them. Many agents have automated email response sent immediately after receiving a lead in an attempt to intercept the prospect that hopefully will become a client sometime in the future. An extremely low percentage of agents will actually call the lead and engage in conversation. This is a huge mistake!

According to a national lead response management study, the odds of contacting a lead decreases by over 10 times in the first hour. This is one hour from the time the lead was actually captured. Additionally, the odds of contacting a lead if called in five minutes versus 30 minutes drop by 100 times. Stating it plainly, this study illustrates the need to contact a new lead within minutes, not hours, from the time the lead was generated. Hopefully this will help you see the urgency to call leads immediately.

The real question is what do I say when I call a new lead? This is a real problem that I address every day with agents that I coach. We spend hours and hours in conversation drills and scripting various possible scenarios.  It is impossible for me to completely describe this process in a blog. I can however, cause you to think about how you converse with new leads and share some things you need to remember when calling new leads.

It is very important that you remember that people buy and sell through agents they have a relationship with; not people they talk to. I have agents ask why they lost a lead to another agent when they seemed to have a good relationship. They share how many times they have talked on the phone and how many email communications they had. My response is almost always the same. They had conversations with their leads but they never established a “relationship.” Generally speaking, people will not hire you to represent them until a relationship is in full bloom. That is you have shared personal information with each other, they trust you, and they respect you.

The first step in any successful real estate relationship is for the agent to hold a “consultation” with the prospect. I refer to this as having a meaningful conversation. You need to know things about them that will help you understand their needs. Why do they want to buy or sell? What is their real motive? If a buyer, what do they really want, what can they afford, what are their dreams for the future and what do they really need to focus on right now. As you can see you are asking what they consider some very personal questions that they aren’t ready to share with a stranger in their first conversation.

The biggest mistake most agents make when talking to a new lead for the first time is they are too formal. With most agents the first question they ask is, “What are you looking for?” This is really a dumb question in a way. Most lead capture systems provide properties they have been viewing so you already have some idea as to what they are looking for. Your first call to someone is not to sell them; it is to establish a communicate link so you can continue communicating with them in the future. You need to set the stage for what will happen in your next conversation. Otherwise, there may never be another conversation.

If I were to get a new lead in the next minute, I would immediately call them as soon as possible. My conversation would last less than three minutes in total length. Most likely it would last less than one minute. My first conversation might be something like this; Ms. Buyer, this is James. How are you today? (this is the only time I’m not in control because they go off in a rampage wanting to talk) I noticed you or someone in your household has been viewing property on my website. You are welcome to continue using my website for your personal searches. If you have any questions about how to maneuvering around the site or if I can help you in any way, please don’t hesitate to contact me. Matter of fact, buying and selling real estate in Alabama is different than most all other states, and there are some very important things you need to know. I would like to email this information to you so you can share it with your family. What is the best email address for me to send to? If for some reason I needed to talk to you, what is the best number for me to use? What is the best time for you, for me to call? When I send this information you will have my email address but let me give you my private cell phone number ___ ___ ____. Please make a note of my name, James Anderson. If I can help you with anything please let me know, and please, continue using my site. Have a great day!”

This short script lays the groundwork for what is to follow. I compare this process to that of an artist. An artist will apply the background on the canvas before they ever begin an object. As real estate agents we too must apply a background. My short script doesn’t apply any pressure to the person I’m calling. It creates interest and anticipation because I’m sending them important information they need to know about buying or selling real estate in Alabama. I find out their best contact information and I give them my private, direct line for them to call me. I applied no pressure, and I didn’t try to sell them anything.

My next step is to prepare an email to them that discloses special information that is specific to Alabama. I will also explain the importance of them being represented by a professional Realtor®. This email will include the state required RECAD and links to Agency Agreements for their use. This email will also include things about me that make me different from other agents.

After sending the email, I will wait 48-72 hours to contact them for the second time. This is a follow-up call to make sure they received the information you sent them and to see if they have any questions. During this call I will let them know that I’m not trying to sell them but that I would like the opportunity for us to have a very meaningful conversation about their needs as well as what I can do to help them.

As you can see I have focused on laying the groundwork for establishing a relationship through quality conversation. Thus far everything has been short, sweet and to the point. Once we have set up a special time for having our consultation, then we can begin communicating personal, confidential information about what they want and what they can afford. I don’t want them to feel any pressure. I don’t want them to perceive me as a pushy salesperson. I want to get to know them and for them to get to know me. When this is done, a relationship is quietly established. During each additional conversation the relationship is enhanced and grows stronger and stronger.

My advice about converting leads to clients is to forget about selling them. Focus on establishing a relationship that will last a lifetime. Demonstrate a sincere interest in them. The property will sell itself.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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Divided We Stand

A few days ago I was watching a training film by a prominent coach in the PGA circuit. He began breaking down the golf game into four major areas that good golfers need to focus on. As I listened to him strategically break down each area, I began to notice the same characteristics for a professional sales career. As a productivity coach in the real estate industry, I have several steps for taking agents from the very beginning to the point of reaching a successful level in sales production. All of those steps can be incorporated into the same four basic divisions he used to describe the game of golf. The more I began to analyze what he was saying, the more I began to see that these divisions apply to life in general. They would be the same areas anyone would need to focus on if they wanted to attain success. Isn’t it strange that we have a tendency to complicate things until someone simplifies it for us? I want to share these four areas with you as they relate to a successful sales career.

The first division is the business aspect……

The title alone seems to encompass the entire business within itself until we break it down into areas or aspects of the business. First we must determine what our goals are. Setting goals are the definite point of beginning in any business but make sure that you incorporate personal, family, religious, health and any other specific goals you wish to achieve, into your business goals. If you don’t include them, you will only focus on the business and have no time for things that are more important to you. Some people focus only on their business goals to the point they don’t have time for family, friends, and things that are equally important to their business. Making money is important because it allows or provides the ability to reach other goals, but it’s not the most important thing in life. I have known people that were so focused on earning wealth that they found themselves wealthy and alone during their golden years. We need to fine that delicate balance that allows us to reach all our goals.

After we have determined our goals, we need to determine exactly where we currently are in our business before we can determine what we need to do to reach our goas. The business aspect includes things like product knowledge, methodology, and following proven models that will deliver the required results. The internet age has totally revamped the way we communicate with prospective customers so rather than hanging on to ways that you’re comfortable with, break out of that comfort zone and learn new ways to achieve the same results. Most productive sales techniques that have been around for many years are still the most productive; the only difference is the delivery method has changed.

The second division is the mental aspect…….

This is where the rubber meets the road so to speak. We can have the best looking office in the area; we can have the best location; we can have the best training and the best tools money can buy and we can still fail unless we prepare for success mentally. We must develop a mental attitude that we can do anything necessary to our success. That we can provide our customers with everything they need. Our attitude should be that we have no fear. I am reminded of a small but very powerful book written by Richard Fenton and Andrea Waltz entitled, “Go For No!” On the cover of this book reads like this, “YES is the destination, NO is how you get there.” A good salesperson understands that you must get through all the “No’s” before you get a “Yes.” In sales, we must have no fear of rejection. We need to understand that “No” doesn’t mean that they aren’t interested; it just means that they aren’t ready to buy right now.

We also need to have the mindset that we won’t let anyone or anything interfere with us working from a daily schedule. When we schedule all our work and appointments, and we keep our schedule, we will accomplish much more, with less effort, in a shorter period of time. However, we might offend someone when we tell them we don’t have time for small-talk because we have blocked time for accomplishing certain things. This is what I consider staying focused. If we want to accomplish our goals by working 40-50 hours a week, we need to remain focused on doing things that are productive and not letting unproductive things get in our way.

The third division is the aspect of short term……..

Our mindset should always focus on the things we need to accomplish right now, today, tomorrow, next week, and over the next few months. We determined in our business division the need for setting goals as well as the things we need to accomplish in order to reach those goals. We will never accomplish them unless we break them down into workable areas of importance. Our sales for the near future are directly related the activities we perform on a daily and weekly basis. If we allow required activities for closing a transaction to hinder us from prospecting for future sales, somewhere in the near future we will find ourselves without transactions to close.

Short term is not limited to daily, weekly, or monthly activities. In my business I think of short term as being a period of one year. Common sense tells me that if I need to accomplish certain things within a year, I must break these activities down into monthly, weekly and daily activities. It’s like eating an apple; one bite at a time. If I don’t accomplish my short term activities, these activities are moved up to my next schedule which simply means I am moving my schedule without completing the things I need to do to move forward. If I don’t accomplish all my short term goals, I will automatically fail to reach my long term goals.

The forth division is the long term………

The third and forth division are both dealing with goals but they are also dealing with specific activities.  I consider long term ranging anywhere from next year until ten years from now. Long term is where I want my business to be in the future. Achieving short term goals can cause major changes in long term goals. It’s important that we keep our goals realistic and attainable. More times than not, goals are gauged by income because income is the means that allows us to do certain things. The process of setting goals should incorporate our current needs with our future desires.

To tie these divisions together…………..

Let’s say that our business is listing and selling real estate. We have laid out a complete annual business plan. We have mentally committed to strictly following this plan. We have determined that we need to produce 48 closed transactions during the coming year in order to meet our short term goal, and to remain on track to reaching our long term goal. Now let’s say that we have only closed 15 sales transactions over the last 12 months.  Is it realistic to think that we can close an additional 33 transactions over the next 12 months? Sure it’s realistic if you commit to doing the required activities necessary to make and close 48 transactions in a year. When developing our business plan, we determined that having 35 conversations with new leads every day would result in four closed sales each month. If we make the mental commitment to make those calls every day, without letting unscheduled events hinder us from making these calls, we will get our desired results. Just for figuring sake let’s say that at the end of the first year we had only closed 30 sales; leaving us 18 sales short of our initial goal. Have we been successful? Sure we have. We didn’t meet our goal but we increased our sales by 200%. Now we can look back at the things we accomplished as well as the things we didn’t do and recommit ourselves to following our business plan for the next year. If in fact we followed our business plan and couldn’t meet our goal of 48 annual transactions, we may want to lower our expectations to a more realistic goal of 35 sales.

Is one division more important than the others…………..

I would have to say no, however, our mental attitude is the life-blood to our business success. Making sales are totally dependent on maintaining a positive mental attitude while committing to following a thorough business plan.

When we reflect on life in general, we can visualize life’s activities falling into one of these four divisions. We make daily decisions that fit into the business aspect. Life is filled with circumstances that affect our attitudes. Some causes us to have a negative attitude and some are positive; but both are in the mental division. We have certain things we need to accomplish on a daily bases, some on an annual bases, and some things will happen, hopefully long term. Whether in life or in sales, we must plan our work and work our plan.

 Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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MINDSET IS LIKE AN ENGINE

Mindset is probably the most important trait that leads to success in sales,

yet it is the least thought of in regards to importance. The mindset of a professional salesperson is similarly just as important as an engine to an automobile. A car may be beautiful and loaded with amenities. It may have all the bells and whistles but without an engine to provide the power of mobility, it is almost useless. A salesperson’s mindset is their engine. Success in sales require a person to be self-motivated, forceful, and basically driven from within. Let’s break down the word to determine its true meaning.

The mind relates to recollection, memory and the element or complex of elements in an individual that feels, perceives, thinks, wills and reasons.  I use the term “mind’s eye” a lot which means the mental faculty of conceiving imaginary or recollected scenes. The mind allows us to visualize future outcomes based on knowledge of previous results. The word “set” has many different meanings and uses. The definition I will use is to put into a desired position, adjustment or condition.

According to Wikipedia the term “mindset” is defined as; “In decision theory and general systems theory, a mindset is a set of assumptions, methods or notations held by one or more people or groups of people which is so established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices, or tools. This phenomenon of cognitive bias is also sometimes described as mental inertia, “groupthink“, or a “paradigm“, and it is often difficult to counteract its effects upon analysis and decision making processes.

On the positive side a mindset can also be seen as incident of a person’s Weltanschauung or philosophy of life. For example there has been quite some interest in the typical mindset of an entrepreneur.

Mindset establishes a purpose…………..

Using these definitions let’s determine how mindset relates to the success of a salesperson. Since mindset establishes a purpose, we begin a work day with an intended purpose. We have certain things we want to accomplish during our day. We have probably predetermined a method for accomplishing certain tasks, when we can find the time to do it. Without a specific purpose we will probably allow our day to dictate which things are the most important for us to accomplish. In a sense, we are letting our business run us rather than us running our own business.

Mindset sets you apart………………

If we truly desire to become highly successful, we must change the way we think. All real estate sales people want to be successful but they learn from people who are average or less than average. We need to change this mindset by thinking outside the box. We need to find someone to mentor us that have proven to be highly motivated, exceptional producers over a long period of time. We must think and plan our work, and act exactly like our mentor. We are special, exceptional people that do almost everything differently than common, average sales people. We must think in terms that we can do anything we want to do. The words no, or can’t isn’t in our vocabulary. We must believe and trust in our own abilities.

Mindset provides commitment……………

Our mindset must be centered on total commitment. That is being totally committed to doing things that are productive and not letting anything, or anyone, hinder us from accomplishing these tasks. Our focus should be so pinpointed that we don’t know anyone else is in the office. We are nice and polite to people we bump into but we don’t have time for gossip or idle talk.

Mindset requires planning……………..

Such focus demonstrates the need to plan out our work schedule so we can accomplish more things in less time, and with less effort. We become more like doctors, lawyer, and bankers. Understanding that working only through appointments will allow us set many more appointments during a normal work day.

Mindset mandates time blocking…………..

Since we are now planning our work, we recognize the necessity of setting aside time for accomplishing specific tasks. For example; if we have a specific thing to accomplish tomorrow that will take about 50 minutes to complete, we will schedule an appointment to complete this task at a specified time. If we accomplish the task in a shorter time than we allotted, then we have a little extra time to do some of the less important things. At the end of the day we will have accomplished many more things than previously anticipated. Time blocking will also allow us extra time for working on things that are more important.

Mindset requires organization……………..

Now that we are thinking differently, we have committed to working productively, we are planning our work schedule, and blocking time needed to complete necessary tasks; we are becoming a fine tuned organization. I began this blog by using an analogy of our mindset being as important to our success relative to the importance of an engine to an automobile. Let’s look at the engine one more time. It is composed of many parts that must work in sync with each other.  Our business must also be synchronized so that it runs smoothly, powerfully, and aids us in becoming the highly productive sales people that we want and deserve to become.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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HOW DO YOU CLIMB STEPS?

During my 42 year career in real estate I have seen and attended numerous seminars, online classes, read many  books, taken  correspondence courses, listened to  tapes, CD’s, watched  video’s and every other delivery method of a guaranteed programs that will help an agent become successful. Most of these programs have certain techniques that are productive and easily adaptable. However, courses are designed to sell; Right? Have you noticed that some of the 10 step program is sold in 10 different lessons? This helps generate more income. Smart, huh?

One thing I have noticed about the providers of these programs is most are written and sold by someone that sells real estate. To be totally honest, I’ve done it too. I have been training sales people in various industries for years. I would only share certain information with my students because I didn’t want my competition to have the same advantage I had. Doesn’t that make sense to you? Another thing I’ve noticed is the people selling these programs usually close an unbelievable number of transactions each year. That is the basis for their success and establishes a reason for you to purchase whatever they’re selling. The thing so many people overlook is the area they live in.  For example, it is physically impossible for someone from Creeks Crossing, Alabama to produce comparable sales to someone in New York City, Atlanta, Ga., Dallas, Tx., Reno, Nev., or Hollywood, California.

I have officially retired from listing and selling real estate, and now I center all my efforts on education, training, coaching, and motivating other people; helping them become successful in the area they live, regardless the size of that area. Now I can share trade secrets without feeling a threat from competitors.

I bet you thought I was going to share the magical steps that produce unbelievable results. Wrong! I have to make a living too but the fact is, there is no magic!  I will soon have a proven program available that cost a fraction of all other programs. My program will be available on the internet and hopefully on some PDA’s. I just don’t want to get the cart before the horse, so I’ll let you know that later.

One main difference between our program and theirs is simple. If you follow my program for one year, step by step, and you aren’t reaching new heights in production, I’ll refund your cost. You can’t lose!  If you are interested in more details about this program, drop me an email or visit my website and subscribe to my “News & Updates.”

My program consist of planning, action steps, follow-up, and tracking the results on a daily, weekly, monthly, and yearly basis. We help you determine exactly where you are right now; what you need to do to reach the level of production you wish to produce; time blocking for the action steps; tracking the results to make sure you accomplished everything you needed to do so you can start tomorrow with a clean slate. These are the same things I work on with agents in our coaching program.

Basically most programs consist of systematically moving forward one step at a time. It’s like walking up stairway. One doesn’t go up stair steps three at a time. Taking one step at a time is much easier and the destination is the same. Have you started up a steep stairway and decided to turn back half way up? I haven’t. I know if I keep going I will eventually reach the top. Isn’t that what we want to do in our real estate business; reach the top? We don’t get into real estate to become a failure. We want to become successful and that only comes with commitment and hard work. However, if we look at all the things we need to do to become a productive agent, it is overwhelming.  When we break it down into bite size divisions, the task seems much more doable.

According to national statistics 10% of all sales people complete 90% of all sales made; regardless the industry they are working. The other 90% of the sales force are somewhere between survival and success. Generally speaking those in the middle seldom become very successful because they don’t feel they need help. Those that are barely earning enough income to cover their expenses will eventually get out of sales or they’ll reach out to someone that can help them.

If you are interested in increasing your sales, regardless the amount of sales you are currently producing, you can do more if you really want to. If you’d like to have more information about how you can increase your sales, either drop me an email or call me; I’d love to talk with you. It’s like the popular song of years past, “I Can Help.”

 Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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When is enough, enough?

When it comes to selling real estate there is no standard, acceptable amount of earnest money to accompany an offer. First let’s examine what earnest money is. Earnest money is also referred to as “good faith” money. In other words, it is a payment made by the buyer at the time an offer to purchase is written that demonstrates to the seller, they fully intend to close on the sale of the property. The buyer is saying, “I’m really interested and if I change my mind and decide not to close this transaction, for any reason other than certain contingencies specified within the purchase agreement, I understand I will forfeit my earnest money.” Earnest money, or good faith money, is held in escrow until closing, at which time is applied to the total purchase price.

In Alabama, an offer to purchase is not binding on either party (the buyer nor seller) until the offer has been accepted by the other party. For practical purposes let’s assume the buyer is making an offer to purchase. EXAMPLE; A potential buyer and their agent views a property listed for sale at $225,000. The buyers want to write an offer for $200,000. The agent representing the buyer asks them for $1,000 earnest money. Is this a sufficient amount?

My answer to this question is it depends on whom the agent represents. An Alabama real estate agent has a fiduciary responsibility to represent their client’s best financial interests. Therefore the agent representing the buyer wants the buyer to take no more chances than necessary; to protect the buyer should they change their minds about closing on the transaction, and be forced to forfeit their earnest money. On the other hand, has the selling agent properly explained to the buyer that the amount of earnest money is actually a showing of their sincere desire and capability to purchase the property?

Let’s continue this example by looking at the offer from the listing agents view point. The listing agent also has a fiduciary responsibility to represent the seller’s best financial interest. The listing agent provided the seller with current market values when they first discussed putting the property up for sale. Based on factual data supplied to the seller by the listing agent, the seller decided that pricing their property for $225,000 was comparable to other like properties in their immediate area. The seller also took into consideration that this price might produce a buyer quicker than a higher price. The listing agent carefully reads through the entire offer and everything seemed to be acceptable except the price; which is considerably less than market value. The listing agent calls the seller to set an appointment to present the offer.

The listing agent thoroughly explains the offer to the seller. The seller isn’t excited about the price offered but seems to be considering it because they are uncertain how long it might take to get a higher offer. The agent explains that they can counter the offer, but according to Alabama law, either party can withdraw their offer up until such time as it has been accepted and signed by both parties. If the seller counters, the buyer is no longer obligated and can walk away and lose nothing. The seller then says, “They aren’t very interested anyway because they would only lose $1,000 if they changed their mind without a legal excuse. Are you sure this buyer can qualify for a loan? You have to pay down that much to buy a car. I think we paid closer to 10% earnest money when we bought .They are trying to steal our property without showing any real commitment.”

The seller just made a strong statement that the listing agent should have made himself when he presented the offer. In keeping with my fiduciary responsibility to the seller, I would ask myself if this was a viable offer to begin with, but according to Alabama law I have to present the offer and allow the seller to make that decision; unless the seller had instructed me to only present viable offers.

Just for the sake of this example, how would the seller have reacted had the earnest money amount been $5,000? Would that amount have sent a stronger message to the seller that he was serious and wasn’t going to change his mind? I think so.

Now let’s take this example one step farther. The listing agent has a fiduciary responsibility to the seller to explain to them that should the buyer change their mind and not close the transaction, without legal cause, the earnest money deposit is all the buyer would have to forfeit. Unfortunately, some real estate agents never explain the importance of the earnest money amount, nor how it is handled. Especially in today’s market, most buyers will have to go to the closing with a minimum of 10% of the purchase price, so why can they not pay half down as good faith payment.

There are no standard, set fees in real estate. Everything is negotiable between the consumer and the brokerage firms, and between the buyers and sellers. The amount of earnest money paid down at the time the offer is written makes a statement about the seriousness of the buyer and about their ability to purchase but the ultimate final decision is made by the parties entering into the agreement.

Should you have specific questions concerning various issues, please let me know and I’ll research the answer for you. I also want to encourage you to subscribe to our “News & Updates” weekly report so you can stay abreast of issues that might affect you when buying or selling real estate. If you haven’t visited my website, please go to www.AlabamaRealEstateInstitute.com  and view previous articles.

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