Selling Soulfully with Jennifer Allan

I've been watching and commenting on Leslie Rojohn's fine blog called "Time is Money-- Unless You're a REALTOR" - about charging retainer fees. Maybe you saw it, too, since it was Active Rain's headliner of the day last Thursday or Friday.

As typically happens when any topic of non-contingent compensation is featured, the comments came in fast and furiously, most along the lines of "Sounds great, but it will never happen. If buyers (or sellers) can get it free down the street, why would they be willing to pay for it?"

Indeed. Why would they?

Hmmmmmm?

That's not a rhetorical question - I'm asking it. Assuming you like the idea of getting a retainer or upfront fee, WHY would a buyer or seller be willing to pay one for your real estate service?

Hmmmmmm?

No answer? Well, then there's the problem!

Unless you're some super-duper salesperson who can sell the proverbial snow to an Eskimo, you need to believe that what you're selling is good for your customer. Great, even. AND IF YOU DON'T BELIEVE THAT ABOUT YOUR SERVICE OR YOUR FEES, no one else is going to believe it either!

Of course, this applies to any product or service someone might be pitching, but for our purposes here, we're talking about non-contingent (aka retainer or upfront) fees.

"Sounds great, but it will never happen. If buyers or sellers can get it free down the street, why would they be willing to pay for it?"

Well... in the last few years of my active career, I offered my sellers the choice to pay me $500 upfront... and most took me up on it - happily. Was the guy or gal down the street also charging $500 upfront? Nope. Were my seller clients so filthy stinkin' rich that they had an extra $500 lying around they wanted me to have? Nope. Was I such a super-duper salesperson that I was able to overcome their objections with a masterful script and a mega-watt smile? Oh, heavens NO!

Most of my sellers paid the $500 upfront fee because I made it a good deal for them to do so. And they recognized a good deal when they saw one and cheerfully wrote the check. And because I knew what I was offering was a good deal for them, it was no problem at all for me to "sell" them on the idea.

So... instead of moaning and groaning about how unfair it is that we Work for Free (which we DON'T) and that "no one will ever be willing to pay us non-contingently unless everyone else does it, too," get out of your own way and think about how you could make getting what YOU want also be a good deal for your customers. And you'll be able to sell it All Day Long.

In keeping with our tradition of posting the Favorit-est Tips after our How-To shows in the SWS Virtual Studio, below are the Favorit-est Tips from yesterday's show: The Proper Care & Feeding of Sellers from Contract to Closing.

The show was about a listing agent's duties and responsibilities during the critical Contract-to-Closing period to keep everything on track and heading toward the closing table. We used my Listing-Under-Contract checklist (which you can find in my VIP Lounge) to refer to, although interestingly, a few of the most favorite tips weren't even ON my checklist! (Thank you SWS Coach Deb Stephenson for adding your brilliance!)

So, without further adoooooooo.... Here are the Favorit-est Tips as voted on by the live studio audience, in reverse order of Favorite-ness!

Fifth Most Favorit-est Tip
Prepare the seller for the inspection by 1) asking them to vacate the home during the inspection so the buyers can begin emotionally moving into the home and 2) setting the expectation that the inspection may go badly so that if it does, they aren't shocked, and if it doesn't, they are pleasantly surprised.

Fourth Most Favorit-est Tip
Put up your SALE PENDING sign fairly quickly after contract. This is great marketing for YOU and for the local real estate market. SOLD signs always breed more SOLD signs and that's a very good thing.

Third Most Favorit-est Tip
Do a walk-thru with your seller before the buyer does his or her walk-thru. This gives you the opportunity to make sure the buyer won't find anything amiss and create a ruckus right before closing. Wish I could take credit for this one, but it was Coach Deb's.

Second Most Favorit-est Tip (seriously)
When you pick up your sign and lockbox, take some toilet paper rolls with you to make sure there's TP in the bathrooms. Many sellers inexplicably take their half-used TP rolls with them and it's a drag for the buyer when they arrive with their moving truck... and there's no TP to be found. The buyer may never know it was you, but it's just good karma ;-] - Thanks, Deb, for this visual.

And...

The MOST Favorit-est Tip...!
Prepare for and attend the appraisal. Have good comps with you that support the price, as well as any that don't and be able to explain the lower ones. Also bring an itemized list of any repairs, improvements or features the home offers, with approximate costs. Don't annoy the appraiser with random chatter or get in his way, but do be there, be charming, and offer to help measure.

So, there you have it! If you'd like to listen to the entire show, you can find it at Club SWS (www.clubsws.info) or at the SWS Bookstore (www.SWSStore.com).

Especially for Rookie Agents (but everyone is welcome), this teleseminar show is about what happens (or SHOULD happen) between the time you get your listing under contract (woo hoo!) through the day of closing (an even bigger WOO HOOOO!). 

The thing is... getting a listing under contract is nice, but it's sometimes the easiest part of the whole process. Today, buyers are nervous, lenders are fussy and your seller might not be tickled with his selling price, so holding the transaction together will require you to be on top of the dates and deadlines, and prepared to ward off problems before they become deal-breakers.

On Thursday, January 12th, we'll discuss all these things a listing agent should be doing during the contract-to-closing phase, based off of the SWS Listing-Under-Contract Checklist.

During the show we'll cover topics such as:

• What you need to do immediately following contract execution
• What you need to make sure your seller does immediately following contract execution
• How, why, when and with whom to follow up throughout the process
• Your role during the inspection period
• Proactive steps to take to head off problems before they arise
• What your responsibilities are prior to, during and after the closing
• And... whatever else we think of to tell you about!

Sound like fun? If so, please mark your calendar and join us on January 12th!

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THE DETAILS
Date: Thursday, January 12th, 2012
Time: 8:00am Pacific / 9:00am Mountain / 10:00am Central / 11:00am Eastern  
Duration: 60 - 75 minutes
Equipment Needed: A computer with a high-speed connection and speakers or a telephone.
Cost: Free, but you must register, below. 

REGISTER FOR THE SHOW HERE

A few weeks ago, I posted a blog called "Nine Attributes of an Exceptional Real Estate Agent" in which I listed nine competence-related skills and services I'd want my real estate agent to bring to the table if I were in need of real estate assistance.

None of the nine attributes had anything to do with being nice, friendly, likeable or compassionate; they were all related to taking exceptionally good care of me and my real estate transaction.

Several of the 120+ commenters called me out on that - they felt strongly that I should have included what they called "people skills" and what I call "compassion factors" (e.g. being a good listener) in my list of attributes.

I disagreed. NOT because I think real estate agents should strive to be a$$holes with atrocious bedside manners, but rather because what we do, if we do it right and especially in today's excruciatingly difficult market, requires a fairly high level of competence, expertise and good old fashioned hard WORK to properly serve the clients who have honored us with their business.

Being nice, likeable, friendly and empathetic isn't enough. It's just not. Yes, maybe having great people skills gets you in the door, but if you don't have the knowledge and expertise to get the job done that you were hired to do, all the people skills in the world aren't going to change the fact that 1) your client is going to be disappointed and may very well share that disappointment with anyone who will listen; and 2) if you're paid on a contingent commission basis and can't get the job done, no payday cometh for you.

No one wins... not your client, not you, not your struggling real estate market that could really use some exceptionally competent real estate agents out there getting the job DONE!

What dismays me the most about this discussion is the heavy emphasis in our industry on personality being the key factor in success. Who cares about market knowledge, contract mastery or negotiating skills? As long as you're likeable, you'll be just fine! And we wonder why the failure rate in our industry is so freakin' high?

It takes more than a mega-watt smile, a firm handshake and a sympathetic ear to properly serve your clients. If you don't believe that, then I'll go out on a limb and say that your clients aren't being properly served, and I promise you, they notice. Oh, they may still like you personally, but inside, they're wishing they'd hired that other guy or gal who (as my biggest client ever used to say about me) "...isn't the friendliest person in the world, but she gets the job done."

So, my friends, let's go forth... and be Exceptional ... and Get the Job DONE!

(If you'd like to read more of my thoughts on the matter, read my comment #39 on the blog referenced above).

Before Christmas I posted a blog about a show we did in the SWS Virtual Studio called "Are You the Best Real Estate Agent You Know?" In that blog, I described three reasons you might WANT to BE the best agent you know, and promised to continue the conversation with some concrete attributes or characteristics that someone who IS the best agent they know might possess.

So, 'cause I usually keep my promises, below are nine attributes (skills, services and masteries) of what an agent I'd be excited to hire to represent me should bring to the table:

1. Market Mastery - the agent understands the nuances of the local real estate market - at least the segment of it that affects ME!

2. MLS Mastery - the agent is intimately familiar with the MLS and therefore makes pricing recommendations based on data that is complete, relevant and accurate.

3. Contract (and Disclosure) Mastery - the agent understands and can explain each and every provision in the contracts and disclosures I'll be asked to sign, and ensures that I understand how each provision affects me.

4. Pricing Expertise - related to #1, the agent understands the nuances of the specific market area(s) that I'm buying or selling in, and how various features and amenities (or lack thereof) affect the market value of the properties there.

5. Photography Skills (or willingness to hire a photographer) - the agent understands the importance of having great photos online and is willing to invest the time and money to either take great photos him or herself, or hire someone to do it.

6. Basic Understanding of Home Construction, Repair and Local Architecture - while I don't expect my agent to be a licensed contractor, I do expect them to understand basic issues of home construction and repair so they can speak intelligently to me about issues that may arise during our transaction. This knowledge will enhance their credibility with me tremendously.

7. Good Problem-Solving and Negotiating Skills - the agent doesn't fall apart and go all drama-queen (or king) on me when the going gets a little rocky. They stay calm and focused, and tackle the problem head-on. They are skilled, confident negotiators.

8. A Great Team - the agent has a great team. If I need a referral to the best lender, inspector, handyman, house-cleaner, structural contractor, roofer or painter in town, my agent knows who that is and will set me up.

9. Great Systems in Place to Track Transactions - the agent has detailed checklists and follow-ups in place so that things don't slip through the cracks or get forgotten when they get busy or distracted.

So, whatcha' think? Do these sound like the characteristics of an agent you'd hire to take care of your real estate transaction? Any others you'd like to add... or any of these you don't think belong on the list?

If you'd like to participate in a survey I'm doing on the matter, just go here: http://survey.constantcontact.com/survey/a07e5ghv78kgwdi99ia/start and tell us what YOU think!

Not that this blog needs any more exposure (150 comments and counting!), but just in case a few of you missed it, I'm reblogging here.

I have so many thoughts of my own to add and I'm sure I'll be doing just that over the next few weeks, but since Danny brought up the Doctor and Lawyer angle, I'll continue that theme by re-posting one of MY early blogs (from 2007) called "Doctors and Lawyers... and Real Estate Agents?"

Thanks, Danny, for a brilliant discussion and the opportunity to pontificate on one of my very favorite topics...

Doctors and Lawyers... and Real Estate Agents? by Jennifer Allan
(Originally posted in June 2007)

We real estate agents long to be respected by the general public. We ache to be considered as worthy of acclaim as our CPA, MD and JD friends. We fuss among ourselves when our clients appear to disrespect our time, our knowledge or, worse, our gasoline.

We claim that even though doctors and lawyers and accountants (oh my!) may have a few more years of education compared to our month (or maybe two) of real estate school, that doesn't mean they are any smarter, more dedicated or more qualified to practice their craft than we real estate agents are to handle one of the most important financial transactions most people will ever make.

But... wander through any real estate forum... read your latest Broker/Agent news, even peruse the conference schedule of the NAR National Convention - most of what you see is advice on how to PROSPECT! More Customers! More Referrals! More Leads!

Apparently, that's what our business is all about. At least, as far as I can tell from the topics that seem to interest our industry. In fact, most trainers come right and say that Prospecting is Your Number One duty as a professional real estate agent. Hmmmmmm. Is that really why it's a licensed profession? Because our JOB is to be great prospectors?

But back to my opening statement. We want to be respected just like doctors and lawyers and such. But I'll venture to guess that the professional journals, the annual conventions and the online forums of these industries aren't focused on cold-calling techniques, farming campaigns and web-lead generation. I'll bet that their memberships' interests lie more in being BETTER physicians, more KNOWLEDGEABLE lawyers and more COMPETENT veterinarians. While there may be an article or a seminar or a thread devoted to business development on occasion, something tells me that it's a wee bit more, dare I say it, RESPECTABLE, than what we tend to obsess over.

Where are the sexy seminars on being an effective Buyer Agent? (And no, I don't mean the ones telling you How to Sell a Buyer a House in One Trip or Less or How to Convince Your Buyer to Offer Full Price so You Don't Waste Your Time). I mean the ones that actually teach you how to be a GOOD buyer agent. Where's the article on how to successfully negotiate a tough inspection, or prepare for an appraisal on a unique home? How to properly price a custom home in a tract home neighborhood?

Hey, we all know that doctors and accountants and veterinarians are business-people, too. They, just like us, need a steady stream of business to keep their doors open and their Beemers gassed up. They, like us, need to promote themselves and their services to the public. But somehow, they've managed to do it without being called salespeople. They are "Professionals."

We real estate agents need to make a choice. Either we're salespeople, and we accept our role as such. Our job is to prospect, prospect, prospect. We'll leave the details to our assistants who actually care about the clients we bring in.

Or, we can leave the salesperson persona behind and strive to become professionals who attract business by being competent, knowledgeable and, most of all, RESPECTABLE!

On Thursday, December 15th, we convened in the SWS Virtual Studio for the last time of the 2011 season for our final show entitled "Are You the Best Real Estate Agent You Know?"

Fun was had by all (well, I had fun anyway), as we discussed the reasons one might WANT to be the best agent they know and HOW to tell if you are, indeed, an exceptional real estate agent.

By exceptional, I should probably explain that I don't necessarily mean "top-producing," although you certainly may be. I don't mean that you have a gazillion For Sale signs around town (unless the majority of them have SALE PENDING riders on top of them). I don't mean that you have a well-oiled machine in place to efficiently "care for" your current clients so you can devote 80% of your time to prospecting for new ones.

No, by "exceptional real estate agent" I'm refering to someone who is competent at managing a complicated process (i.e. a real estate transaction) with its many moving pieces and parts and personalities and emotions, and who consistently EARNS rave reviews from his (or her) clients for his (or her) exceptional client service and satisfactory results.

(Whew, that was a mouthful).

So, to put it more succinctly: Competence + Compassion = Exceptional.

Anyway, during the show I described three reasons one might strive to be an Exceptional Real Estate Agent, aka, the Best Agent They Know.

Reason #1
Confidence. When you're great at what you do and you know you're great at what you do, that confidence will be apparent to others. You won't have to come up with a compelling elevator speech, create clever business cards or use magic trigger words or gestures to inspire people to trust you; the people you meet will be able to tell that you are capable of handling their (or their friends') real estate needs. No sales pitch required.

Reason #2
When you're a great real estate agent, your current clients will notice - and they won't be able to help themselves from singing your praises to everyone they know. Unfortunately, the bar in our industry is set rather low in the customer satisfaction department, so if YOUR clients are satisfied and they talk nicely about you behind your back, referrals will come. I promise.

Reason #3
The third reason you might want to strive to be an exceptional agent is a very practical one. More paydays. Exceptional real estate agents enjoy more visits to the closing table because they know how to get the job done. They know how to put and hold real estate transactions together! Their contracts don't fall apart when things get sticky because 1) they're keeping a close eye on things as opposed to chasing after new business and 2) they know what to do to solve those potentially deal-killing challenges that inevitably arise during the contract-to-closing period.

So... how does one become an Exceptional Real Estate Agent? Well, it's not a class or a certification or an event; it's a process. It's making the commitment to BE great at what you do and then DOING what you need to do to be great.

More next time...

Every once in awhile I hear or read something along the lines that those of us who worked in the real estate industry during boom years (or even stable ones) were simply "order-takers" who showed up to work most days and cashed juicy commission checks. That all we had to do was put a sign in a yard and voila! Perfect offers from well-qualified buyers poured in, we sorted thru them at our leisure, selected the most perfect one and scheduled the closing. Wham, bam, thank you ma'am and we were off to our next sign-in-a-yard installation and another easy payday.

Um. Well.

I don't know about you, but that's not how I remember it. I worked damn hard in the 1990's and early-to-mid 2000's to earn my paydays, while agents all around me were dropping out like flies - perhaps not in the numbers they're dropping out today, but certainly in the 80% and higher range. I had my share of difficult sellers and demanding buyers and remember, the flip side of a strong seller's market is the challenge of trying to even GET to a new listing to show it before it's under contract.

Was it "easier" to make a living in real estate back then than it is today? Yes, it was, absolutely it was. But it was never easy and the abysmal drop-out rates from the time attest to that.

What's my point? I dunno, really. Maybe to ask those within our own industry to stop publicly disparaging and disrespecting what we do. Maybe to assure those who were successful in years past that it wasn't just luck and good looks. Maybe to alert the agents who have entered the field during these tough years that when things improve, this business will continue to require hard work, creativity and a willingness and ability to deal with frustration and disappointment.

There's so much more to enjoying a successful real estate practice than simply being able to find clients to serve. And a heck of a lot more than just putting a sign in a yard. Don't insult yourself and your colleagues by implying anything else!

Are You The Best Real Estate Agent You Know?

Perhaps that's a personal question, but it's one every real estate agent on the planet should ask themselves in the privacy of their own thoughts. ARE YOU an agent you could confidently and wholeheartedly refer to others with the assurance that they couldn't possibly do better than you? Not because you NEED the business, but because you are the Very Best Real Estate Agent You Know?

If you don't feel that way about yourself, why is that? A lack of experience? A lack of training? A lack of commitment? A lack of ... what? Again, very personal questions that might be difficult to answer, but if you don't have confidence in yourself and your abilities, I'm wondering if you might have a tough time exuding a confident, can-do attitude to the world around you. And that world around you IS where your business comes from.

(If you do consider yourself to be the best real estate agent you know - congratulations!! It's a great feeling, isn't it?)

The good news is that it's not all that hard to be a better real estate agent than most of the other agents you know. Many of those other agents are focused primarily on hunting down their next client and paying little-to-no attention to their current clients (don't get me started!). So, if ALL you bring to the table is a sincere desire to serve your current clients as your first priority, you may already be way ahead of the crowd.

But, of course, enthusiasm and a desire to be excellent isn't enough. It's a good start, but there's more, so much more!

And that's what we're going to talk about in the last SWS Teleseminar show of the 2011 season. What steps you can take and goals you can set so that you CAN and WILL be the very best real estate agent you know in 2012. And you know what? When you feel that way about yourself - that there's no one better than you are to help your clients through that emotional, complicated, sometimes painful process known as a real estate transaction - there'll be no stopping you on your way to the success you've always dreamed of!

Sound like a good use of an hour? If so, please mark your calendar and join us on December 15th!
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THE DETAILS
Date: Thursday, December 15th, 2011
Time: 8:00am Pacific / 9:00am Mountain / 10:00am Central / 11:00am Eastern (Please show up a little early to get settled in.) 
Duration: 60 - 75 minutes
Equipment Needed: A computer with a high-speed connection and speakers or a telephone.
Cost: Free, but you must register at the link below:

REGISTER HERE TO ATTEND THE FINAL SWS TELESEMINAR SHOW OF 2011!

RELATED BLOG: "I'm The Best Listing Agent I Know... Are You?" http://activerain.com/blogsview/575443/-i-m-the-best-listing-agent-i-know-are-you-

I just got off the phone with one of my consulting clients. Poor guy. I nearly took his head off with my impassioned rant about the priorities of the real estate industry. He handled it well, I must say, although I could tell his patience with his trusted mentor (that would be me) was wearing thin. But I just couldn’t help myself…

Nothing like a good rant to re-energize your day!

We were talking about the pursuit of expired listings. My client has all sorts of ideas on how to approach expireds (I really hate that label, but shall use it here in the interest of clarity) with promises of doing a better job than the last guy, and getting the house SOLD.

I innocently asked how he planned to do that. “Do what?” he asked. “Do a better job and get the house SOLD,” I answered.

He seemed a little stumped by the question. Perhaps even confused as to why I asked it. So, I attempted to clarify.

“What, specifically, are you going to do differently from the last guy to assure a different outcome? If you’re going to tell a seller you can do better, what ARE you going to do better? I mean, you don’t want to go in just saying ‘My sign is prettier than HIS sign,’ do you?”

My client thought a moment and came back with “Well, I don’t want to criticize the other agent and say that I’m a better listing agent than he was – that would be rude.”

And I agreed. It might be rude, even unprofessional.

BUT… I disagree with all my heart that he shouldn’t be able to say, with all sincerity, that “I am the best listing agent I know.” That’s not arrogance and it should be the truth. Anyone who pursues the business of homeowners who want to sell their properties should feel, no, KNOW in their hearts and souls that they are the best thing that could ever happen to that homeowner. If they don’t feel that way, they should not pursue his business.

So, if you’re pursuing expired listings – or any listings, really – what IS your differentiating factor? What makes you “better” than the agent who didn’t sell the house, or anyone else the seller might be talking to?

That’s not a trick question! It’s a question every agent should ask him or herself before venturing out the door to pursue business.

So... HOW are you special? WHY should a seller hire you over the other guy or gal?

(This is the subject of the final SWS Teleseminar show of the 2011 Season... "Are YOU the Best Real Estate Agent You Know?" Details and registration here: www.sellwithsoul.com/best-agent)