7300 Metro Boulevard, Suite 120 Minneapolis, Minnesota 55439 Phone: (800) 822-4221 Fax: (800) 822-2716 E-mail: info@davidknox.com Web Site: www.davidknox.com
Real Touch Prospecting in a Virtual World
FSBOs Don’t try to list on the first attempt. Your first contact is just to say hello and introduce yourself. Just say: “I see that you’re selling your home. How’s it going for you?” What’s the world coming to? Doesn’t it seem that most businesses today actually are looking for ways to avoid talking to customers? The airlines are a classic example. Want to make an airline reservation by telephone? Good luck! Just to accomplish this means spending several minutes going through an elaborate push-button menu. Then you are on hold for who-knows-how long. Really, the airlines would rather you go online, make your own reservation, get an e-ticket and print out your own itinerary and receipt. I don’t think companies intend to avoid customers. I think they want to use technology to its fullest extent to serve customers better and in the most cost-efficient way. But they have been overrun by technology. Some real estate agents are doing the same thing, especially when it comes to prospecting. They are searching for a technique, tool, software or system that will eliminate the task of prospecting, when in fact it will only eliminate prospects. It’s time to get back in touch with some real, fundamental principles about the reality of prospecting. Principle #1: Be There! Prospecting isn’t a part of the real estate business; it IS the real estate business. It would be logical to assume that to have a good month, you have to be a really GOOD agent. However, a bad month usually isn’t the result of low rapport, marginal trust, lack of benefits or missed closing questions. Low productivity is the result of low prospecting. Have you ever purchased a product from a salesperson who wasn’t GOOD? Yes. Why? Because he or she was THERE. Being good gives you the right to be in the real estate business; being
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there is how you get paid for it. This is true of actors, doctors, lawyers, politicians and every other business. To be there is to be where prospects are. They’re in open houses, asking friends for referrals, reading ads, on the web or looking at mailers. So you must stay in touch with your past clients, hold open houses, visit For Sale by Owners, call expireds, work neighborhood farms, be present on the web, make personal visits, call often and advertise. Principle #2: Build Relationships Instead of Barriers. This is still a people business, so the ultimate goal of prospecting is to secure a face-to-face meeting. Too many agents use the wrong contact methods at the wrong time and the misuse of technology has hurt the business as much as the proper use of it has helped. Technology has built a barrier between the agent and the client. Are you properly handling your technology? Telephones. It’s unfortunate that when a prospect finally does respond to advertising and promotion, the agent isn’t there. You say, “It’s the nature of the business.” I ask, “How are you holding onto the business when you aren’t there?” Are the prospects greeted with a complicated automated attendant or voice mail maze? Do callers have to suffer being put on hold, getting disconnected or being trapped in voice mail jail? When they finally reach a real person do they ask in disbelief: “Is this a real person?” If this sounds familiar, make a change. We have got to start talking to customers again. Let’s at least secure the easy ones — the ones who call us. If you’re not available, have a receptionist offer options: Would you like me to page her, take a message, put you through to voice mail or provide her e-mail address? Business cards. Does it make any sense to put someone else’s photo on your business card? It looks like some of you have! I’ve seen thousands of photos that bear absolutely no likeness to the agent. Get a current photo … today. I like simple, professional photos that reveal a bit of the agent’s personality without being too cute. Also, don’t list a half-dozen telephone numbers. When I see cards with a long list of numbers, my first question is: “How will I ever find this person?” Consolidate your numbers to ONE that can be directed to wherever you are. Handwrite a personal number on the back when appropriate. Finally, make sure anyone can read the type on your card. Graphic designers love tiny 9-point type. Resist! Use type that is easy to read. Mailings. We all have been swept up in .com mania, but now I think we are regaining some common sense. A website should not replace mailings to your sphere of influence. If you have cut back on mailings in a misguided attempt to save money, start them up again. The purpose of regular mailings to your farm area — just a postcard will do — is to keep your name in front of potential clients. Remember, they have to go hunting for your website. Don’t make it hard for prospects to find you. Most successful agents mail postcards every month to their farm, come rain or shine. Agents that don’t do regular mailings fail to do them because they misunderstand the purpose. They think right after they do a mailing the telephone should be ringing off the hook. It doesn’t work that way. More likely, neighbors will be discussing listing a home and the agent’s name will come up as being familiar to them. Or, a potential client approaches an agent at a business or community event. He feels comfortable doing so because he has seen the agent’s picture 20 times in the last year. That’s how mailings work. They help build a reputation. If you get a call, it’s a bonus.
Real Estate Business Sept/Oct 2001
E-mail. The saying “When your only tool is a hammer, the world becomes a nail.” applies to many e-mail users. Once they learn to use it, it’s all they use. If you’re going to use e-mail (and you should), use it right … and at the right times. Sometimes a personal call or even a fax would be more appropriate. E-mail is great for communicating across time zones, getting printed materials and photos transmitted, confirming details accurately, replacing some regular mail and transferring computer files. It is not good when you need a personal touch, an urgent response or with prospects who have limited access to it. When you write e-mails, use your basic letter writing skills. Have a clear subject line that summarizes your message. Get to the point and use proper grammar and spelling. Instead of one huge block of text, break it into small paragraphs to make it easier to read. Create a signature that includes all of your contact information. Not everyone wants to respond back by e-mail. They might want to call, mail or fax. One of the best e-mail features is the ability to attach documents and photos. Use Adobe Acrobat to convert documents into PDF (Portable Document Format) files. That way, recipients can see or print it exactly like your original. Some agents e-mail a PDF of their marketing plan. Fax. Transmitting a short document by fax is quick and easy whereas an e-mail requires starting the computer, opening e-mail software, logging onto the server, attaching the document and sending. Don’t overlook the convenience of fax. When creating documents, anticipate that they will be faxed, perhaps from one party to another, several times. Use at least 14-point type to have them legible all along the way. Make sure the contact information on your company letterhead is legible, particularly if you refer to it (as in, “Please contact me at the number below.”). Personal notes. Sometimes the best means of communication is a handwritten note. Use a fountain pen on cotton paper, hand-address it and affix a postage stamp. What a luxurious personal touch this is in these times! Your personal note will stand out in the sea of e-mails, faxes, bulk mailings and other impersonal communications. Principle #3: Avoid the Quicksand of the Trivial. Does this happen to you? You approach the office with the full intention of making prospecting calls. As you drive up, the cell phone rings and a client needs a feature sheet faxed. Then in the office lobby someone begins a conversation about how his most recent transaction is going and asks your opinion on how to handle it. In your message box there are six telephone slips that need attention. On the way to your desk, you stop and chat with a colleague. At your desk, you go through the mail and set it on top of yesterday’s pile. While you return your first call, you log on to get your email. You delete the junk, then in between telephone calls, you start responding to the other e-mails. While you search your database for the people to call, you see a couple of details that need attention and make some calls. Now you are digging through files for papers to address the problems from the calls. Pretty soon you are completely buried in the tyranny of the mundane and it’s time for lunch. Another morning is blown. Next time do this: Leave a list of key prospects on top of a clean desk at the end of the day. When you get to the office the next morning, go straight to the desk and make your calls. After you’ve done that, turn on your computer, get your messages, respond to e-mails and return phone calls. Having the discipline to prospect is more important than your technique. Bob Bohlen, CRS, a top agent and broker from Brighton, Mich., showed me how he disciplines himself. He has a grid of numbers from one to 100. Every time he initiates a contact he puts a line through a number. If contact
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is made he puts an X and if an appointment results then he circles the number. His goal is to make a mark on a predetermined number each day. This simple system also reminds us that prospecting is a numbers game — if you make enough calls, you will get an appointment. You can use the same type of system to follow up. The first contact to a prospect isn’t the most important one, it’s the one after that, and after that. If you’ve gone to the effort to make a first call, stay the course and keep following up. Principle #4: Generate More Referrals. According to the NATIONAL ASSOCIATION OF REALTORS®, 67 percent of listings are the result of friends, relatives or past clients — all sources that can be mined from one method: a referral system. The people in your database must hear from you on a regular basis through a thoughtful mix of mail, telephone, e-mail and personal contact. Even if none of them ever lists a house with you, they will refer you to someone who will. You also have other sources for referrals: a group of “A” people, acquaintances and business associates you know fairly well and “bird dogs.” Bird dogs are people in the neighborhood who always seem to know who’s moving and are willing to tell you about them. These people are worthy of personal contact, lunches and thank-you gifts. Even if you’re new to real estate, you’re not new to life and have a sphere of influence that you can tap. You must have all these names organized into a contact management software program so you can automate your prospecting activity. Set next-call dates to automatically remind you when to follow up. Have letter templates that can mail-merge letters. You can start with prepared letters, such as Dave Beson’s Letterwriter (800.242.3031), then tailor them to fit. Once your prospecting works and you have a prospect on the phone, you’re back to your questioning skills, selling skills and scripts. When asking for referrals, there are two mistakes agents make. The first is asking, Do you know of anyone who is moving? It’s a closed question and few will know of anyone moving right now. A better way to ask is, In your opinion, who of your (friends, associates, etc.) will be the next to move? You have a better chance of at least getting a name to contact. Another technique is to ask, The market is very active and I’d like to expose others to it. Who do you think I should be calling? The second mistake is to say, If you hear of anyone, please call me. It’s not their responsibility to call you. You must ask for names, then take the initiative to make the calls yourself. Get names, then you follow up. An exception to this is the leveraged referral, when you have your source person make the call to the prospect. After this introduction you can follow up. When you do get the name of someone to contact, ask them, Would you mind if I contacted them to introduce myself? and May I tell them you suggested that I call? Make a commitment today to contact your referral base regularly. Follow up your phone calls or personal visits with a handwritten note. Principle #5: Show Up. When you go to the dentist, you want to see your dentist … personally. You’ll accept a certain amount of interaction with support staff but ultimately you want personal contact with the professional. So in your business, remember that it is YOU that your prospects want to hear from. Don’t use secretaries, assistants and support agents to separate yourself from your clients. Use them to manage the transactions and paperwork.
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When you’re out and around, make a point of popping in and saying hello to your key clients. Visit local businesses that have provided you leads. Drop off whatever small gifts you use in your prospecting such as note pads, calendars, mugs, etc. Pay special attention to your past clients. Arrange lunches and dinner with them. Plan parties or events for them. Buy a block of tickets to a movie or sporting event and invite them to your Customer Appreciation Day. Principle #6: Take the BO out of FSBO. For Sale by Owners (FSBOs) are such an excellent source of business. You don’t have to search through hundreds of homeowners to see who’s moving. They’re putting out signs and spending their own money on advertising to announce, Hey, right here, we’re moving now! How great is that? However, the unspoken message that keeps agents away is, … but we don’t want to list with you. Well, about 80 percent of them will list with someone and it might as well be you. FSBOs are easy to list if you treat it as a game and just relax. Here are some basic rules. * Visit FSBOs in person first, not via mail or telephone. Few other agents will do this, so already you have a competitive edge. They see a nice smiling face and will at least give you a couple of minutes of their time. Mail does nothing and telephone calls just annoy them. After they’ve met you, then mail or telephone calls have more meaning to them. * Don’t try to list on the first attempt. Your first contact is just to say hello and introduce yourself. Just say, I see that you’re selling your home. How’s it going for you? * Don’t discourage the owner. Any negative comments about their ability to market their home will only hurt the rapport you’re trying to build. Instead, be a resource for them if they have questions. * Don’t try to sell them your services … yet. Wait till later when you actually get a listing presentation. Then it will be time to present your marketing plan. * Follow up. This is the key. Keep going back again every four to seven days. No selling, no discouraging; instead, just wait them out. If the home hasn’t sold in about four weeks, then it probably won’t. But it will take them an additional two weeks to figure that out, so you must be there in that window between week four and six. * Ask them questions about their marketing. They will have to ponder their lack of progress and move closer to considering a real estate agent. • How are you attempting to attract buyers? • How many prospects have you had? • Were they financially and emotionally ready to buy? • Have you received any written contracts? • Have you located another home? • If your buyers have a home to sell, do you want them to list with an agent or try to sell it themselves? * Present your marketing plan. At some point they will become discouraged at their lack of sale and be ready to hear what you have to offer. Invite yourself into the home and proceed with your standard listing presentation. Be sure to contrast the differences between what an owner can do and how much more you can do. Principle #7: Get Excited About Expireds. Expired listings are another great source of business. The key to working them is volume and telephone. Because many of them either relist or leave the market, it is a better use of your time to do a telephone campaign. Use the following short script:
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My name is ________ with _________ and I see that your listing expired. Have you relisted? (If “yes,” then the call is over. If “no,” then proceed.) Is your home still for sale? There are only three reasons why your home didn’t sell. If I could visit with you for a few minutes, I’d be able to determine which one it is. May I see your home today at __ o’clock? When you arrive at their home, you will tour the home and ask questions to determine why the listing expired: price, condition or marketing. The best first question to ask the seller is, Why do you think it didn’t sell? Follow that up by asking, Why are you moving? First, determine how effective the previous marketing was. The hierarchy of marketing follows these approximate steps: MLS, signs, feature sheets, advertising, direct marketing, open houses, showings, offers and sale. They didn’t achieve the last step — a sale — so find out how far the previous agent got. You will probably discover that marketing was not the problem. If they received an offer, then you know marketing wasn’t the problem. Ask the seller, What more do you expect from your agent? Now take a tour of the home to examine the condition. If condition is the problem, address it. If not, only one reason remains: price. In most cases, overpricing prevented a sale. Ask the seller, Do you think your home was priced right? You could be very lucky: They may be ready to concede that the price was the issue! Do a new CMA and convince them to price exactly at or a little below market value. If you can’t get it priced right, then don’t take the listing. Principle #8: Be Selective. When your prospecting efforts pay off, you’ll have the luxury of being selective. You don’t have to work with everyone, just the motivated prospects. There are three key questions that will quickly reveal the most motivated people: 1. How soon would you like to buy (or sell)? 2. How long have you been looking (or thinking of selling)? 3. If you found a home that met your needs, what would you do? Or If we agree upon a marketing plan, are you ready to list? If you get the right answers to these questions, then proceed to secure them as clients. If they are not ready to move, then be ready to let go. Keep them in your follow-up system but spend time only with people who are ready to move now. Remember, you’re already good, but now you’ve got to be there!
Real Estate Business Sept/Oct 2001