real estate Mastery's blog

You will find this really exciting!  Nathan is a young agent from Wollongong – his posts demonstrate how quickly your results could change with the right training and coaching.

Read what Nathan has to say and then make time to come to QREAS (Qld Real Estate Summit) 24 – 25 August in Brisbane.  If you go to www.qreas.com.au and enter the Coupon Code TERRI. To make it a no-brainer (even if you have travel expenses) you will be registered for only $47 for the entire 2 days.  Check out the brilliant line-up of trainers we have put together – including myself J

This is Nathan’s testimony from beginning until now:

Email 1:

Nathan Haynes - Wolloongong

'....I was barely making $50k a year'

I just wanted to say thanks again for allowing me to be part of your exciting 2 day event I’m really looking forward to this event.

I have to be frank with you, I’m one of those guys who barely make $50k a year and was thinking that after 6 years in real estate and watching my dreams fade away was ready to walk away from the industry. Your initial email regarding this event stated “With record numbers leaving the industry, don’t you dare consider leaving until you have given yourself the best chance possible to succeed” so hence why I’m travelling to Brisbane to be with you and other like minded people who won’t give up o their dreams. So this is my commitment to you Glenn, that I will do everything it takes, implement every strategy that is presented over the next 2 days and if it means moving to Brisbane and achieving my dreams their then that’s what I will do.

Again I don’t know how we initially crossed paths, but I’m glad we did.

Email #2 from Nathan Haynes

'Listings Presentations before: 2 per month
Now: 12 per month'

Hey mate,

Here are my stats since starting your coaching less than a year ago

Now getting :  average 6 listings per month & 4 sales per month

On Track for:  11 listings per month & 8 sales per month

Listings Presentations before: 2 per month

Now: 12 per month

( and no need to ask to put my comment and stats in sales letters or anything you need just do it…I owe you a lot…)

Thanks for taking the time to read this and I look forward to you coming to say HI at QREAS!

Cheers

Terri

Agents are still being criticised and vilified for over and under estimating.

Our fiduciary duty (primary obligation of trust) to our clients is of course legislated in every State Real Estate Legislation. So, how do so many agents come unstuck and get the process of giving the appraisal price or range wrong?  Over-quoting to get the business (“buying the listing”) is not the way to go. Agents must now provide detailed Comparative Market Analysis with every appraisal – no guess work.

So, what happens?  Does the agent selectively choose properties to bolster the seller’s dreams (and get the listing) or selectively choose properties for a lower listing price for a quick sale? Neither practice works well.

Best practice in my experience, is to remember that one of the primary roles of the agent is to educate and inform. Information regarding property values is readily available now to all serious sellers - they are not dumb or uninformed (unless they have just dropped in from another planet!) and should be respected for this fact. 

It would be highly unusual for a seller to even consider calling in an agent for an appraisal without having done their own informal (or formal) research. All the property websites have pages of properties which a prospective seller can compare with their own. Print media has photos and descriptions (often with price indications). Attending open houses are another way of consumers doing their own research. When the agent is eventually called in, their role is to educate further via the detailed Comparative Market Analysis report - this would be discussed in depth. 

Together the decision should then be arrived at in respect of what price the property will be presented to the marketplace. Every GOOD agent will conduct this part of the listing presentation IN COLLABORATION WITH the seller, based on informed market indicators. 

In my experience of around 20 years, agents who do not follow this process and overquote or underquote to secure the business are among the ones who bring our industry into disrepute. One of the answers is consumer education as to what to expect and demand from their agent at every stage of the process. Those agents who do not live up to these demands will be short-lived.

Our industry is in the midst of a big shake-up. I am sure that you would all have seen the Financial Times article just recently, that 10,000 agents were reported to have left the industry over the last 12 months and the REA report that more than 80% of agents leave within their first 2 years!

This can only be a good thing for the long term. The industry is demonstrating that it will no longer tolerate mediocrity - great news for those of us who are 100% committed to industry and agent change. To survive, you have to get better at what you do ... and client collaboration is the first huge step!

Agents are still being criticised and vilified for over and under estimating.

Our fiduciary duty (primary obligation of trust) to our clients is of course legislated in every State Real Estate Legislation. So, how do so many agents come unstuck and get the process of giving the appraisal price or range wrong?  Over-quoting to get the business (“buying the listing”) is not the way to go. Agents must now provide detailed Comparative Market Analysis with every appraisal – no guess work.

So, what happens?  Does the agent selectively choose properties to bolster the seller’s dreams (and get the listing) or selectively choose properties for a lower listing price for a quick sale? Neither practice works well.

Best practice in my experience, is to remember that one of the primary roles of the agent is to educate and inform. Information regarding property values is readily available now to all serious sellers - they are not dumb or uninformed (unless they have just dropped in from another planet!) and should be respected for this fact. 

It would be highly unusual for a seller to even consider calling in an agent for an appraisal without having done their own informal (or formal) research. All the property websites have pages of properties which a prospective seller can compare with their own. Print media has photos and descriptions (often with price indications). Attending open houses are another way of consumers doing their own research. When the agent is eventually called in, their role is to educate further via the detailed Comparative Market Analysis report - this would be discussed in depth. 

Together the decision should then be arrived at in respect of what price the property will be presented to the marketplace. Every GOOD agent will conduct this part of the listing presentation IN COLLABORATION WITH the seller, based on informed market indicators. 

In my experience of around 20 years, agents who do not follow this process and overquote or underquote to secure the business are among the ones who bring our industry into disrepute. One of the answers is consumer education as to what to expect and demand from their agent at every stage of the process. Those agents who do not live up to these demands will be short-lived.

Our industry is in the midst of a big shake-up. I am sure that you would all have seen the Financial Times article just recently, that 10,000 agents were reported to have left the industry over the last 12 months and the REA report that more than 80% of agents leave within their first 2 years!

This can only be a good thing for the long term. The industry is demonstrating that it will no longer tolerate mediocrity - great news for those of us who are 100% committed to industry and agent change. To survive, you have to get better at what you do ... and client collaboration is the first huge step!

The current market is different – you all know that.  Seller’s expectations are often way above market value – they refuse to admit that times have changed.  Buyer’s on the other hand,  definitely know that things are different.  There are more homes on the market, more choice and not much urgency. 

So – what do you do to make sales now? What happens when the tide has turned, the supply of listings has grown, and encouraging strong buyer commitment takes a lot more skill? Is this affecting your results and what can you do about it?

Let’s examine some of the challenges for you:

1.     What to do in a “Buyer’s market”

A “buyers market” means that buyers have more choice, and are educated to know their prices and the worth of a property, so it can be difficult to convince them to pay what a seller wants. However – many sellers refuse to accept this fact, so now you have two challenges:

1.      Securing the listing in the first place, and

2.      Breaking the bad news that a property may be worth less money than the seller wants.

However there are ways to deal with this.  The hard times sort out the good agents from the not-so-good and in a market like this, is always the very best time to gain client loyalty and huge market share. 

If you carefully plan your client strategy for giving service that exceeds expectations, your future will be assured! The agents who can’t be bothered “going the extra mile” for clients will be long gone, your brand will be still there and you will have created a pool of loyal buyers and sellers to set up your long-term future.

Many agents are not here for the long term.  Their vision is short-sighted and when the market turns, their skills are not developed enough to handle the change. 

The secret is in your commitment to your professional development, upgrading your skills at every opportunity, focusing on personal client service. If you give good service now, without pressure, without spending marketing monies unnecessarily when the market is not supporting the seller’s expectations, you will be guaranteed of client loyalty when the tide turns again (as it inevitably will).  The marketplace will remember and respect you, because you have treated your clients fairly and with honesty.

2.     What to do when there is no sense of urgency

Another obstacle in a “buyer’s market” is that buyers don't have any sense of urgency to buy right now.

In a sellers' market, the buyers know that if they like a property they better put in a good offer before someone else snatches it away from them. It is almost like an auction and properties sell themselves with virtually no skill from the agent involved.

But when buyers have many properties to choose from, you need to learn how to create that same sense of urgency and that requires skill.

3.     It is vital to qualify the buyer so you are not wasting your time

When you get an enquiry, it is vital that you take the time to know what they want and how soon they want it.

If they are interested in a particular property, then go along with this, however you need to ask qualifying questions before you start driving them all over the countryside.

If the enquiry is on a specific property, never just give the details and leave it to them to continue the conversation.  Your task is to find out as much as possible about what the buyer is after, for example:

Find out more about their needs – what they want in a property including price range

·         “What was it about this one that interested you / caught your eye / etc”

Discover whether they are just starting the search or whether they are very genuine “HOT buyers.

·         “Have you seen many other properties / houses / etc?”

If they are just starting to look, you will need to find out their time frame

·         “So… how soon are you hoping to move in?”

 Find out more detail about what sort of properties not to show them 

·         “Have you seen many homes yet? What was it about them that wasn’t right for you?”

Hone in on the criteria they want

·         “Were there any that you did like?”

You need to know why they didn’t make an offer already – if you know the properties, this will tell you a lot about what price range they are really in.

·         “With the ones that you liked, was there any reason that you didn’t buy them?”

Other really useful questions which will say to the buyer that you are really genuine in wanting to help them to find the right property (building loyalty)

·         “Are you familiar with this area / are you from around this area / etc”

·         “Are you thinking of this one as an investment or to occupy for yourself??

·         “Do you need to move in / purchase something within a set time-frame?”

·         “If this one suits, are you in a position to move on it now?”(vital time frame question)

·         “Do you need to sell another property or organise some finance first?”

·         “Is this something that anyone else will be involved with eg partner, family members etc?”

·         “When would be a good time that we could get together to look at this / these properties?”

Questions to find out price range

·         “What sort of price bracket would suit you best?”

See if they can go a bit more

·         “I don’t want to waste your time, but if I had a property with the criteria you want and it was a little bit more than that, would it be worth showing it to you?”

Build customer loyalty- a conjunction sale or a referral commission is better than no commission.  The buyer will see that it is of benefit to them to stick with you as you are going to do the research on their behalf.

·         “Let me see if I can find a property that suits, whether it’s from my own listings or maybe from one of my colleagues, how would that be?”

·         “If you see a property you like which is listed with another agent, give me a ring and I will find out about it for you and if it looks okay, I’ll organise an appointment to go and see it”

Taking the time to work with a buyer in this way has multiple benefits

ü  You have the chance of extra income from an immediate sale either a full commission or part of a commission.

ü  You get the buyers loyalty and trust – so when they want to sell, you will be the agent they think of because they have seen how you treated them

ü  You build a data base for referral and repeat business

ü  You create a name for yourself in the community for hard work and genuine personal honest service.

You can turn your business around – even take market share in times like these when only the best will survive and thrive.  The more agents that leave the industry – the more likely you are to succeed as long as you follow a strategy like that outlined above. 

Do what the top agents do – be different – offer service beyond expectations – study and get better at your sales skills - be professional and be able to justify charging full commission.  Otherwise, this current market could lead to your demise. 

All the best

Terri

Terri Cooper (Principal)

Real Estate Mastery

Brisbane, Qld.

www.realestatemastery.com.au

terri@realestatemastery.com.au

0404068681

I just came across this great article from Brian Tracey and wanted to share.  This market is challenging for many agents – no doubt about it.  A buyers market with so much choice that it is common for them to walk away to another property (maybe with another agent) and there goes your commission!

This article has some really simple but highly effective strategies for you to close that gap and lock in your buyers. If you apply these tips for your own situation, I am sure that some lights will come on in your mind!  This is Brian’s article entitled “Becoming an Expert Salesperson” ..

The basis for all successful sales efforts is a discipline called gap analysis: clearly defining what your idea, product, or service can do for a person, and then deciding how to demonstrate that in a compelling way.

The very best persuaders, communicators, and salespeople are those who concentrate their attention on identifying the exact gap that exists and determining how big it is. They then focus on widening that gap in every possible way, until the prospect begins to feel more and more dissatisfied with his or her current situation and more and more desirous of enjoying the preferable situation that is achievable by the use of the product, service, or idea.

The most astute salespeople are those who are capable of finding a small gap and then expanding it into a wide gap. They are capable of discovering a small problem or dissatisfaction in the mind of the prospect and then, by questioning and commenting,

increasing that gap until the prospect develops an intense desire for the solution they are offering .. see more

Agents need to ensure their tax affairs are in order - ATO is on the march! Thanks to @John Mason for this article

The Australian Taxation Office has set its sights on the real estate industry warning agents that it will scrutinise work related expense claims and other deductions.

Tax Commissioner Michael D'Ascenzo said real estate professionals will be targeted this financial year due to the industry being considered a high risk of wrongfully claimed work related expenses.

“We have found people in these industries are at higher risk of getting their work-related expense claims wrong due to the type of deductions they are entitled to claim, such as motor vehicle and travel expenses,” he said.

Speaking to Real Estate Business however, Real Estate Industry of Australia’s president David Airey said agents have very little need for concern so long as they hire a good tax consultant.

“All agents should essentially be employing a good tax agent to claim every possible legitimate deduction,” Mr Airey said.

“So long as agents are making sure that their affairs are in order and that they are claiming every possible legitimate reduction there is little need for concern.”

Some agents are happy – others say it makes no difference. Victoria already has de-regulated commissions  - it has not meant more agent income in most cases.  Anecdotally, many agencies – even top ones – are negotiating as low as 1% - the trend is down, not up  - a recipe for disaster!

However, I think that rather than focusing on de-regulation, we should be looking at the standard of the industry which in many cases is pathetic. The public has, rightfully, lost respect for salespeople, and regards them as one step up from sex workers on the popularity index – nothing to be proud of.

What difference does it make what commission we are theoretically entitled to, when most agents cannot even negotiate full fee  and gain seller commitment to marketing their property. 

There has to be a change in the industry or informed consumers will just vote with their feet and agents could be heading for extinction!  The change must come from within as the powers that be have a stated policy of “no bar to entry” – crazy!

This is the article with news of the de=regulation of Qld commissions and the other budget decisions which will impact greatly on our industry – not the least of which is the steep increase in stamp duty.

http://statements.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=75249

If you were selling your home and had appraisals from 2 agents - similar in their presentations - one with full Licence and the other with salesperson on their business card, who would you tend to favour? Rightly or wrongly, the public perception of agents is incredibly low. They are encouraged to negotiate our commissions and demand that we pay for their marketing.

One of the quickest ways to demonstrate professionalism and expertise to your real estate clients is by promoting yourself as a fully Licensed agent. If you do not already have your Licence, then we can help in a very simple and cost-effective way.

Our unique 5 day Accelerated Licence Course is a stress-free and simple exercise for experienced agents, or those with comparable professional backgrounds

During these 5 days let us ...

1.       "sift out the fluff" and give you practical, anecdotal knowledge from successful industry experienced trainers

2.       take away any anxiety (even if you haven't studied for a very long time) with our unique small group format and personalised approach

3.       give you recognition of all your past experience and qualifications - our emphasis is on 'adult learning' not boring classroom lectures, and we highly regard your personal input and experience

4.       ensure that you are not at risk of losing your hard-earned commissions through lack of knowledge of day-to-day risk management or legislation for yourself and your agency

5.       guarantee your success with trainers on hand even for group based assessment strategies

We want to make this as easy as possible for you and have early-bird and group discounts (even for groups of 2 or more) and payment plans can be arranged. For details please email me at training@realestatemastery.com.au.

All training is GST free and both training and accommodation are Tax Deductible. Our next scheduled courses are:

Brisbane - Kangaroo Point                May 3 - 6

                                                                June 6 - 10

Gold Coast - Broadbeach                  May 9 - 13

                                                                June 20 - 24

Sunshine Coast - Mooloolaba         May 16 - 20

                                                               June 27 - July 1

Far Nth Qld - Airlie Beach:               May 23 - 27

** We will also travel to regional areas on request - even interstate as Mutual Recognition has been granted to many past students who desire to be licensed in another State.

Our training venues are relaxed and informal, and  a pleasant change from the industry norm. Our team of trainers are hand-picked for their ability to connect with you, and make your experience one that you will remember. If you would like to combine your training with some R and R, we can even arrange discounted accommodation for you at our beautiful coastal venues.

www.freshwaterpointresort.com.au

http://www.mantramooloolababeach.com.au

http://www.shingleybeachresort.com

For more information (including feedback from so many of our past students) please email me now on training@realestatemastery.com.au or click over to www.realestatemastery.com.au

I look forward to being of help and ongoing support to you, and welcome your enquiries,

Cheers,

Terri

Terri Cooper

Principal, Real Estate Mastery

0731024989

0404068681

terri@realestatemastery.com.au

www.realestatemastery.com.au

Most real estate agents learn their profession on the job, so to speak, and usually by trial and error.  This is an incredibly costly and frustratingly slow way to learn.  It doesn’t need to be this way!

The financial rewards to be gained from a successful career in real estate sales are huge, there is no glass ceiling on your income, and there is no expensive university or college courses to pass.

What you need in bucketloads are enthusiasm, determination, resilience and a hunger to learn. Success leaves clues and you must avail yourself of every avenue to gain knowledge, strategies and selling skills to action with discipline every day.

During many years of experience in selling real estate, I have learned important basic lessons which I can share with you and which may save you time and money in lost business from clients who may never tell you why you were not their “agent of choice.” 

There are nine of these shortcuts altogether and this article today deals with the first two. They are so basic that they are often overlooked, but their importance is undeniable.

Shortcut 1:  PREPARE, PREPARE, PREPARE!

The life of an agent is about stress – this is inevitable, and par for the course, but there are things you can do to minimize this. One of the most important things to learn is when you don’t prepare –that is when things start to go wrong and you end up “on the back foot!"

·         You don’t allow enough time to get to your appointment so what is the first word that comes out of your month  “SORRY ….”  Already you have lost some credibility and some control. Things happen, traffic happens, you lose your way … But it all could have been prevented if you had planned ahead, and prepared your time schedule with time to spare. 

·         How often do you do just that one more thing before you leave, then find yourself rushing to the appointment, not as relaxed as you should be? Your anxiety comes across as unprofessional when you meet with your client, and they are probably thinking that this is how you will be if they choose you as their agent. If you aim to be different to “the average agent”, you need to be consistent with your time management.

You must allocate enough time to prepare for an appointment and always be on time!
 
As the market becomes tougher, the competition for clients becomes harder, and clients become more demanding and more aware of what they want in an agent – being a “nice person” is no longer enough. You must be professional in every respect and your expertise and dedication to your clients evident.

1.      Before you go to an appraisal or a listing appointment, do a thorough area research

2.      Print-out of recent sales within 1 km of the property. 

3.      Search out current listings in the area which could give further price comparisons.

4.      Spend time driving around and becoming familiar with the area.  Sound as if you know the area intimately, as you describe some of the current for sales in their suburb. 

5.      Ring any other agents who have listings there and find out the prices. These properties are your competition and you need to know this information to make an informed presentation to a prospective seller..

Shortcut 2: HAVE A GOOD PRE-LISTING KIT

This can be either your own or the generic office one, which can be personalized for you.

·         Have this delivered by mail or in person to your client before you arrive. 

·         Enclose a letter inviting them to read this information before your meeting in case there are things you have not covered

·         Ask what would be the 3 most important things they would like you to cover at your meeting. 

This gives focus for you.  Your listing appointment will be shorter, freeing up your time and theirs, but the clients will feel that you are really addressing what they need to know and what is important to them.  When you are not prepared, it is easy to waffle on, build great rapport yet lose the job to someone who perhaps they may not like as much, but who they feel will do a better, more professional job.

I have learned that clients want to be confident that you have a strategy to achieve the best result for them. .  They want to be heard, most want to be informed of each step along the way but at the end of the day, they are looking to you to guide them. 

You need to be seen as the expert (if necessary, “fake it till you make it”).  These clients are deciding whether to entrust you with the sale of probably the biggest asset they have – they need to feel that you know what you are doing!

I have discovered that there is a fine line to walk between taking control in a way that can be seen as bossy and disrespectful, and being quietly assertive and coming across as confident in your role as their agent.  They don’t need another friend, they need a good agent, they need the best agent and you need to think about how you will convince them that you are this person.

You need to study your craft so you can come across as knowledgeable and confident – there is always something to learn, no matter how good you think you are.  Listen to others, in conferences, in mentor groups, in training sessions, and gain knowledge from books and from training CDs as you drive to and from work.  Even if you only pick up one thing, that one thing could be what changes the way you do things and increases your sales results dramatically!

Overwhelming anecdotal evidence shows that the day you stop actively learning is the day your business will begin to stagnate ... and then go downhill.