Commission objections can be challenging to navigate if you don’t know the proper steps to take when addressing clients’ concerns.
As an agent, you’ll need to be prepared to head off objections to your commission rate during listing presentations with new clients. Unfortunately, even if you devote time to explaining your commission in a listing presentation, there’s no guarantee that you won’t encounter a commission objection. Below is your four-step plan of action for overcoming objections:
There’s no one CRM that meets the unique needs of all agents, but there is one CRM that meets your individual needs.
With dozens of CRMs available for real estate agents to choose from, how can you know which will serve as the most effective lead generation tool? What about the other features you need to manage your contacts? We took a look at Fit Small Business’ comparison of the top three real estate CRMs – Top Producer, Contactually and REthink – to help you determine what CRM is best for your business model.
As of Q2 2016, Facebook had 1.71 billion monthly active users, according to statista.com.
This large group of active users can be reached through Facebook’s many advertising offerings. But agents who aren’t familiar with those offerings may not know how beneficial they could be for their real estate business – or, worse, they may have been exposed to some common misconceptions about Facebook advertising. Below, we’ve highlighted some of those misconceptions with the intention of setting the record straight:
Albert Mehrabian, professor emeritus of psychology at UCLA, created the 55-38-7 theory about nonverbal communication, which states that 55 percent of communication is visual (eye contact, body language, etc.) while tone of voice and words account for 38 percent and 7 percent, respectively. If you don’t appear confident and comfortable, your clients will pick up on that, and may question whether they chose to work with the right real estate agent. Maintain great visual communication with clients and potential clients with these six body language tips.
- Re-examine your handshake – Do you have a limp handshake? Research conducted by a business professor at the University of Iowa suggests that firmer handshakes lead to closing more deals. You might consider preparing your handshake for your next meeting by practicing on your co-workers.
- Stand tall – The way you stand affects how your clients perceive you as their real estate professional. Poor posture can make you appear timid and lacking in confidence, while good posture demonstrates authority and strength. Keep your shoulders back and your back straight, even while sitting.
- Be expressive with your hands – While not everyone naturally “talks” with their hands, studies suggest that using your hands while talking frees up working memory, which allows you to think clearly before speaking. So, if you use elaborate hand gestures while speaking, keep it up!
- Make eye contact – Talking to someone who’s focused on what’s happening across the room is frustrating, and that behavior suggests they aren’t all that interested in what you have to say. Always make certain to establish eye contact and keep your full attention on your clients.
- Align your body – Your eyes aren’t the only part of your body that should be facing your clients. Make sure that your entire body is aligned with clients when speaking with them to send the signal that they have your full attention.
- Smile sincerely – Insincerity is easy to spot, especially in a smile. Emotions are often contagious, and a natural smile will effortlessly add warmth to a conversation.
Every real estate agent has his or her own methods for getting to know clients and moving them through the homebuying process. But there are some tried-and-true steps that every agent should follow:
1. Greet the client and develop rapport – Help the client get comfortable with you. Build trust through authentic interactions.
2. Ask qualifying questions – Ask about what the client is looking for, their financial situation, buying motivation, and timeframe.
3. Set expectations – Lay out the procedure for the client: how to prepare their lender paperwork, timing for making a decision, preview of a blank contract if it’s a resale, and review new construction contracts. Walk them through what happens after deciding on a home.
4. Present their options – Talk about homes on the market that fit their criteria. Present your plan for picking the best one or extending the search.
5. Demonstrate the homes – Show the homes, going over every detail and focusing on the home’s features and benefits. Keep client motivations and desires in mind at all times. (Though it’s really the listing agent’s job, this important step is often left to the buyer’s agent.)
6. Narrow it down to one home – Narrow down the options until the client is left with one home that meets their needs and that they’re able to buy.
7. Overcome objections – Anticipate objections and remove them before they even come up. When objections do arise, be prepared to address them.
8. Close the sale – You may know the saying “ABC” (Always Be Closing), which means that good closers keep closing in mind throughout the whole process, and use every opportunity to move the buying process forward.
9. Make sure the steps between sale and closing go smoothly – Stay on top of the lender, inspector, and appraiser. Assist with arranging movers or other tasks to help the client transition into their new home.
10. Follow up and get referrals – Seek client feedback via phone calls or a survey. Agents can ask for ways to help clients with any of their post-close suggestions and put them on a long-term referral plan.
Below are just a few of the questions agents need to ask to assess potential clients’ current situation, motivation, and timeline.
1. How long have you been looking for a new home? How soon do you hope to move?
2. Have you been working with another agent?
3. What have you seen so far? What do you think of the homes you’ve seen?
4. Tell me about your family. What size place to you think you need? What about schools?
5. Do you own your current home? Do you need to sell it before you can buy a new home?
6. Are you interested in new construction, resale, or both?
7. What is your price range? Has a lender prequalified you for that amount?
8. Do you want a single-family home, townhome, or condo? How many bedrooms and baths do you need?
9. When do you want to start looking at properties? When will you be ready to buy?
10. Do you prefer to be contacted by phone call, text, or email?
This spring homebuying season could be a difficult one for first-time buyers, but Ten-X Residential Real Estate’s Nowcast projects continued growth in existing-home sales. Stay up to date on the latest real estate news with our weekly roundup:
- This spring homebuying season could be a difficult one for first-time buyers and middle-income consumers in many of the nation’s largest housing markets, according to a recent analysis from Zillow. Find out which housing markets are facing the largest inventory issues here.
- Ten-X has released its latest Ten-X Residential Real Estate Nowcast, which projects continued growth in existing-home sales for May. Read what Ten-X Chief Economist Peter Muoio has to say about how economic progress is aiding housing here.
- The National Association of Realtors holds a number of events aimed at elevating its membership by introducing them to the cutting edge of the industry – the latest strategies, the trends and the technologies. But this year, Zillow Group is not welcome at any of them. Learn more about the legal situation between NAR and Zillow here.
- Across the country, the salary needed to live in the largest metro areas has fluctuated in 2016, according to a new report from HSH.com. How much money do your clients need to purchase a home in your metro area? Find out here.
When representing a seller, how well you know the potential buyer and the potential buyer’s agent is crucial to getting your client the most money. Making note of certain things, like a buyer’s behavior during a home showing, can give you insight into the buyer’s situation, which you can use as leverage when negotiating. Watch our video below to find out how to successfully represent a seller in a buyer’s market.
For more on working with seller clients, sign up for our selection of seller-focused courses.
Here’s this week’s roundup of the real estate news and updates you don’t want to miss.
- According to Construction Dive, the number of starter homes on the market in the U.S. has tumbled, while their price has increased 5.6 percent since 2012.
- Zillow published a helpful guide to homebuyers who are in the market for a smaller home to downsize to. It’s worth a read for any agent who services this demographic.
- Are you a fan of “House Hunters?” If you missed it, realtor.com’s article “How ‘House Hunters’ Glosses Over the Real Estate Reality” is a great read for anyone who actually works as an agent and follows the show.
- Have you run into this issue at closing? “Many lenders and title companies are refusing to provide copies of the final closing documents to real estate agents representing homebuyers,” writes the Chicago Tribune‘s Kenneth Harney in his article, “Real estate agents blocked from helping with closing documents.”
- Today’s market is a tough one for sellers who are also trying to buy, Redfin found in a recent survey. ThinkAdvisor.com has the story.