With the completion of this module, you should be able to/ or have done:
•Know the strategy for the first visit.
•Know how to ask questions during a first visit.
•Know what questions to ask, and how to 'cluster' them.
•Know how to conduct the first three stages of the visit.
•Understand what is meant by exclusive listings, and why the real estate industry developed them.
•Know what their benefits are for the consultant and the vendor.
•Know how to answer the questions a vendor might have about sole agencies.
•Know how to handle the fourth stage of the first visit, in relation to sole agencies.
The Strategy for the first visit
The First Visit
Knowledge and skills taught in this session:
- The strategy for the first visit.
The strategy for the first visit.
The objective The objective of the first visit is to find out as much as possible about your prospective client and their situation. The visit is about the people themselves: their circumstances, why they are selling, whether they have deadlines and what their expectations are. The objective of the first visit is not to inspect the home. The home is just detail Principles When conducting the visit, remember to:
• Go on your own, because other people can distract you from your objectives
• Check when you arrive that all the decision makers are there.
• Avoid the pitfalls discussed in the first session. They can be just as much a problem at the first visit as at the first contact. Don't get sucked in to discussing prices or plying the vendor with too much information.
• Be positive. Never contradict or challenge the vendor; if you disagree with them about something, keep it to yourself for now. When it comes to the house, comment on its good features and don't react negatively to the bad ones.
The strategy
The six steps of the strategy are:
- Opening direct on statement
- Inspection
- Open questions
- Education to sole agency or auction
- Appointment to make a presentation
- Closing direction statement
Opening direction statement
A direction statement tells the vendor what is going to happen. Most vendors don't know what to expect so it's important you tell them what you want to do, and why. You should do this at the beginning of all your interactions with them.
As well as putting people in the picture, direction statements also help provide order for lengthy, complicated activities such as presentations On this first visit, you could say something like:
"Thanks for inviting me here today. With your permission, what I'd like to do first is have a look around your home and take some notes. Then I'd like to ask you some questions so that I fulJy understand your situation and what you want to achieve
"Affer lhal, I can go back to the office and do some market research and put together a marketing plan that lakes ever;thing youve told me into consideration. We can make a time before I leave to meet again and go over the plan together. Is that Ok with you?"
Direction statements are an important part of communicating well with clients. They enable you to take your clients with you. Remember that they always include asking permission to proceed.
Inspection
Ask the vendor to show you around and point out what will be staying and what will be going Take good notes. Advise the vendor that you will be noting down anything that could improve the saleability of the home
Open questions
In the third stage, you're finding out as much as possible about your prospective client and their situation. This is what you're here for: to find out about the people themselves, their circumstances, why they are selling, whether they have deadlines and what their expectations are. Set aside some time specifically for this; don't do it while you are inspecting the home.
Education to sole agency or auction
This is an opportunity to test the water and, if necessary, do a little educating on sole agencies and auctions. Your objective is to ensure that the vendors will be receptive to your presentation later. Do not try to talk them into a particular kind of marketing or listing
This is not the presentation!
A good way to introduce the subject is· "Have you considered the benefits of a sole agency or selling by auction?" The next sessions will examine how to deal with these questions.
Appointment to make a presentation
The fifth step is to make an appointment with all the vendors to make a presentation.
Closing direction statement
Finish with a direction statement outlining what will happen next. Just as all your activities with clients should start with a direction statement, they should end with one too.
What questions to ask, and how to cluster them.
Knowledge and skills taught in this session.
What questions to ask, and how to 'cluster' them.
Question clusters
In this video clip, Peter talks about the right questions to ask when obtaining information about the vendor's circumstances and wants and needs. As we have learned, there are two basic kinds of questions: closed and open Closed questions are usually used to obtain facts or a confirmation and can be answered with a few words. Open questions require the person questioned to give information and are usually about more complicated issues such as feelings, opinions and attitudes. Therefore, they are more helpful in determining wants and needs. Examples of open questions are:
• How do you feel about moving?
• What do you think of marketing by auction?
• Why do you think your home has not sold?
Group questions into 'question clusters'.
Question clusters are groups of questions that relate to a single topic. For example, if the vendor has children, you can cluster questions around them
• How many do you have?
• How old are they?
• How do they feel about the move?
• Do they have any special schooling needs?
Question clusters put questions into logical order and make them easier to remember.
Question clusters can themselves be grouped into broader categories.
• The people and their circumstances. These questions apply to everyone.
• Vendors new to the market. These questions apply both to people who are ready to go on the market and people who are only considering selling
• Vendors already on the market. These questions apply whether the vendor is on the market for a private sale or listed with a real estate company.
• Price. These questions apply to most new vendors and those already listed. You need to know the vendor's price expectations to prepare for your presentation.
• Property. These questions apply to any new or listed vendor
Exercise
In this exercise, you will brain storm the questions in the five categories.
Try to think up questions related to each category and write these down on paper
AII questions should be typed up (You may want to refer to them during your role plays.)
A demonstration of how to conduct the first three stages of the visit
Knowledge and skills taught in this session.
A demonstration of how to conduct the first three stages of the first visit.
Stages 1 to 3: demonstration In these first three stages, Peter
• Takes the lime to carefully explain what is going to happen.
• Invites the vendors to show him around the home. He focuses on the home and takes notes as he goes.
• Sits down with his clients to ask them about their circumstances
Remember that the objective of the first visit is to obtain information about the vendor's circumstances and wants and needs. This means you'll be asking many questions and, if you are not careful, this could come across as an interrogation. Questions need to be perceived as requests for information, not demands.
Notice how Peter uses the techniques you have learned in the first two sessions to soften his tone. These techniques are
• Asking permission to ask questions
• Explaining why you are asking them.
• Using question cushions
Role Play
You will need to find a partner for this exercise. here are two seperate role plays.
Click here to download the instructions for the Role plav 1.
Click here to download the instructions for the Role plav 2.
Give role play 1 instruct ons to your partner and keep the other do not look at your partners instructions.
The person playing the consultant must not see the instructions for the vendor otherwise it will defeat the purpose of the role play.
You will practise getting as much information as possible from the vendor.
Role play the 'open questions' stage of the first visit. One person plays the consultant and the other, the vendor The consultant must try to get as much information about the vendor as possible by asking questions. Switch roles using the other set of instructions when finished.
When asking questions of the vendor, the consultant must use the techniques for good communication:
• Ask permission to ask questions.
• Explain why you are asking them.
• Use question cushions.
The background to why exclusive listings developed in the real estate industry.
Knowledge and skills taught in this session.
The background to why exclusive listings developed in the real estate industry.
Background to exclusive listings
An exclusive listing is any kind of listing that is held solely by one company. II may be any kind of listing - sole agency, tender or auction.
If someone was prepared to work solely with one company, the consultant made the commitment to put them above the rest in terms of marketing and service.
That's how exclusive listings came into their own. II wasn't because a company was trying to hog the market. II was because people wanted more and under the old system, consultants couldn't supply it.Several tiers of service have evolved. sole agencies, tenders and auctions. Now, vendors have choice. People's wants and needs are different and consultants need to offer a range of services that cater for everyone.
The benefits of exclusive listings for the consultant and the vendor.
Knowledge and skills taught in this session.
The benefits of exclusive listings for the consultant and the vendor.
Benefits of exclusive listings
Exclusive listings, whether sole agency or auction, have significant benefits for both consultants and vendors
Benefits for consultants
1. They are cost productive.
You get the benefit of the time and effort you put in.
2. They increase the listings/sales strike rate.
We believe this happens because you're able to control and customise the marketing, making the property more saleable than it might be under a general listing.
Have a close look at the following diagram It represents the listings/sales strike rates of four companies that differ from each other in their proportions of general listings, sole agencies and auctions. The listings are represented in the top half of the 'hourglass'; the strike rates, in the bottom.
Benefits for Vendors
1. Commitment
In exchange for an exclusive listing, the vendor gets your commitment to provide a higher level of service and promotion. 2. Accountability
You are motivated to produce a comprehensive marketing plan and you are both responsible and accountable for carrying that plan through. With a general listing, the vendor is everybody's listing and nobody's responsibility.
3. Security
With one person in charge, there is real control over access to the properfy.
4. Co-ordination
As a single agent, you can co-ordinate and control multiple offers and negotiations, and you are motivated to get the best possible price and conditions for the vendor.
5. Flexibility
The advantage of having one person in charge is that any changes to the marketing programme can be made quickly and efficiently.
How to get the vendor to consider a sole agency.
Knowledge and skills taught in this session.
How to get the vendor to consider a sole agency.
Education to sole agency
The fourth stage of the first visit is to find out whether the vendor has thought about selling their home bf an exclusive listing such as sole agency or auction.
Your objective here is to get the vendor to allow you to make a presentation, and the process of doing this is called sparring. It is done after you have obtained all the information you need about the vendor's wants and needs.
You will know by now whether sole agency is the best marketing choice. One good way to introduce the subject is: "Now, may I ask you ... have you considered using just one agent to sell your home? I think it is someth ng you should consider very seriously. May I tell you why?"
At this point, the vendor will present you with all the questions they may have about sole agencies. This is the time to answer their questions, and to counter, any objections they raise.
Remember: this is not the time to try to talk the vendor into it. This is not the presentation. You're simply trying to ensure that they'll be open to your giving your presentation later and receptive to it when you do.
Once the vendor asks questions or shows interest in the idea of a sole agency, turn the discussion around and ask permission to put a plan in front of them.
For example: "Look, why don't I prepare an exclusive marketing plan for your home. One that I believe will increase the numbers through, or that will make sure we don't miss that person when they come along."
A demonstration of the education process, as it relates to sole agencies.
Knowledge and skill s taught in this session.
A demonstration of the education process, as it rel ales to sole agencies.
Sole agency: demonstration
In this video clip, Peter demonstrates the education process, as it relates to sole agencies. The substance of the conversation, and an alternative open ng, appears below. You should refer to this material when doing the role play at the end of the session.
Role Play
You will need to find a partner for this exercise. You will role play the fourth stage of the first visit and practise sparring with a vendor about sole agencies.
Click here to download the instructions for the Role plav. Ttis document contains instructions and the scripts for the role play:
One person will play the consultant and the other, the vendor.
The consultant must start by saying: "Now, may I ask you ... have you considered using just one agent to sell your home?
The vendor must raise the objections raised in the demonstration video clip. These are listed here, for easy reference:
1. The more companies we have working for us, the better.
2. Our home will sell easily, so we don't need an exclusive listing.
3. We just want to get it sold.
4. But you don't have all the buyers.
5. The more agents, the more advertising.
Switch roles when finished
Scripts and dialogues for the first visit and question clusters.
When you first arrive at the house.
"My purpose with this visit is to find out a little more about what you're wanting to achieve here. I'd like to get full details on your home, have some time together talking about what you wantand then I can go back to the office and do some work on the price, and formulate a market plan for your home. At the end of this visit we'll make a time to meet and go over the market plan I've mapped out for you -"Is that o.k. with you?"
At the end of the first inspection finish with:
(This is when you are ready to leave the home at the end of the first visit.)
"With your permission may I just go through what's going to happen now?"
"Tonight at 7 o'clock, -is that right?-, I'll call by and show you the features of a marketing programme that I believe will give your home excellent exposure It's a programme that has a very high results rate in Dunedin. What this means to you, is that I think you'll be in Christchurch along with your husband in a month's time."
"I'll go through the programme in detail and if everything seems o.k., I'll have the paperwork with me that will enable us to start the programme on Saturday. Is that OK with you?"
The Questions
A selection of questions that could be asked during the First Visit Why are you selling?
Transferring
• Where to?
• When do you need to be there?
• Will you all move as a family?
• Have you looked around up there yet?
• Seen anything you like?
• Can I help with a referral?
• Is it a job transfer?
• May I ask who with?
• Have Bought
• Unconditionally?
• When is possession date?
• Is it imperative you sell this home to buy the other?
Family
• Is there a family involved here?
• How many children?
• Emotional
• How do you feel about the move?
• How do you feel about it? (Partner)
• Are the kids excited about it?
• Do you have friends up there?
Price
• Where did the price come from?
• Was there a Cma done?
• Did you agree with the price?
• Did you have a registered valuation?
• Did anyone else have a registered valuation?
• Have you done any work on the price?
• Have you had a valuation?
• Do you have a figure in mind?
• What has sold in this area that you know of?
• The Valuation -who did it? -when? -what was it? -may I see it? -do you agree with it?
Current Home
• What have you enjoyed about your home?
• How long have you been here?
Marketing
• Have you thought about how you want to market your home?
• Do you have a deadline to get started?
• What will you do if you don1 sell your home?
• What are the three most important things for you in getting your home sold?
Choosing an Agent
• lf they have called three to four agents, ask how they will choose an agent.
• Tell me what will you be basing your choice of agent on?
• If it's been for sale with another Company but vendors are
Thinking about Changing
• Who's been running the marketing programme on your home?
• What did it consist of?
• What ads have been placed?
• Do you think they worked?
• Why not?
• How many people through?
• How long have you had your home for sale?
• Has there been anybody interested?
• Is there anybody else interested?
• When? • What happened -where did they go?
• Why do you think it hasn't sold yet?
• Is there anything they didn't do that you think could have helped?
• What would you be looking for- what's missing do you think?
• Has anybody talked to you about the benefits of auction?