The Information Hoarder/Revealer Agent Has No Value Today

When agents were able to hoard the information about homes, agents could sell value based on home information. Now, there’s no agent-provided value there. So, what value do you provide, and how do you show it?  I believe there are three packages that buyer’s agents need to provide, to justify their desired exclusive buyer’s agency agreement, and their commissions:

• The Pre-Appointment Package
• The Consultative Package (I call it “Your Guide to Purchasing a Home”)
• The Home Buyers’ System Package

Why packages: To create visual, substantive evidence that you are professional, you are knowledgeable, and you are current and contemporary.

Here’s the principle you’re going to follow:

We believe what we see, not what we hear 

Non-Committed agents need not apply. You and I know that a non-committed, part-time, or low producing agent just isn’t going to take the time to create these packages, processes, and systems. You are. Creating these packages and systematizing your buyer process shows you are a committed, savvy, value-added agent.

Systematizing: The Pre-Appointment Package

To guard against that Internet buyer de-valuing the services you provide, you’re going to start educating them from the time you first talk to them. Your pre-appointment package will do just that.

Systematizing: The Consultative System and Buyer’s Package

Because you’re thinking in terms now of a complete buyer system, part of that system is a professional process to meet with the buyer using a planned process to meet the buyer’s needs. That means you’re going to educate the buyer, and you’re going to carefully and systematically qualify the buyer. You’re going to use the ‘consultative’ approach, asking great questions in an orderly, purposeful fashion.

Bottom line: You’re going to create awesome value, because you’re going to help that buyer prioritize the myriad pieces of information they’ve gotten from the Internet.

Added Value: The Home Buyers’ System 

The last package you’re going to create is the most valuable. But, it’s not given to the purchaser unless and until the purchaser agrees to work exclusively with you. This package has the specific processes, checklists, and systems that you’ve created to partner with the buyer successfully through the home buying process.

The Ideal Buyer’s Agent: Working with the Internet Buyer Through Fully Systematized Processes 

You’ve systematized your buyers’ process to raise it to a value-added level. You’re not focused on information-providing. You’re focused on information-prioritizing. You are now matched up with the needs and desires of that Internet buyer, and you’re poised for exceptional real estate success. Congratulations! 

Don’t waste time reinventing the wheel: To help you get into action instead sit creating systems at your computer, I’ve provided a ready to use PowerPoint presentation, along with the three buyer packages you need, read to go, in The Complete Buyer’s Agent Toolkit. Not only that, I’ve provided a comprehensive training system to assist you in performing like a top producer—even before you are one. Click here to learn more.

Why meeting buyer qualifying criteria is important: Buyers today have many choices of how to find homes. You need to create competitive reasons to help buyers choose you.  It will save you time and money. And, if you’re a newer agent, creating solid reasons to help buyers choose you will increase your self-confidence 200%.

Five Critical Questions Buyers Should Ask Agent ‘Candidates’

Here are five critical questions I believe buyers should ask agents to assure they have a ‘match’ between what they are looking for and what the agent provides. In addition, I’ve added what I believe buyers should look for in the anwers (that means that we agents must be able to qualify on these terms):

1. “Is selling residential real estate your full-time career?”

My advice to buyers: Listen to be sure the agent specializes in residential real estate. You want someone selling homes for a living, not apartment houses. Listen to see if this is the agent’s full-time career. Ask additional questions if the agent’s answers need more clarifying.

2. “How many homes did you sell last year?”

My advice to buyers: You want someone successful; that means, at minimum, the agent sold homes to buyers at least six times in that year.

3. “How long have you specialized in residential real estate in this area?”

My advice to buyers: Be sure the agent has been working in the area where you want to purchase for at least six months, so you know the agent has expertise and interest in that area.

4. “Describe the work you do in our price range and area.”

My advice to buyers: Listen to be sure the agent zeros in on the area and price range you need. If the agent says, “I work anywhere with anybody”, that agent may not be for you, for he may be trying to cover too much ground to know very much about specific areas.

5. “Tell us how you will work with us.”

My advice to buyers: Listen as the agent describes the buying process, as he views it. Does it reflect what you’re looking for?

Agents: Think These Criteria are Too Tough?

Did some of those questions and my advice to buyers make you defensive and argumentative? That’s because we agents tend to look at things ‘inside out’ (from our perspective). Instead, pretend you are a discriminating buyer. You’re going to spend $60,000 on a car. What kind of customer service do you expect? Now, think in terms of the real estate buyer. What kind of service should a real estate buyer expect?

Newer Agents: Panicked Because You Think You Can’t Qualify?

Relax. You don’t need to qualify on all terms. But, you need to have answers and explanations ready so you can provide buyers reasons to work with you.

 Advice: Educate yourself so that you are as well-prepared to help a buyer as an agent who has sold 100+ homes in his/her career.

Sound off! What did I miss? Are some of these questions too tough? What do you think?

Complimentary Sales Webinar with International Speaker

Master Motivator Verl Workman helps you get your year started off right.

This action packed 1 hour webinar is like a private consulting session with one of the industry’s top coaches and mentors.

Verl will take you step by step through how to build your business plan and achieve your financial goals.  Using the 3 Ts:  Technology, Training, and Trade Secrets of the top performers in the world, Verl will show you how to make 2012 your best year ever in real estate.  Invite your friends, partners, teams and entire companies to this event. 

When: Jan. 19

Time: 1:30-2:30 PM, PST

What: a webinar

To register:  https://www3.gotomeeting.com/register/289780334

Would you agree? The more we can fulfill the client’s expectations, the more referrals we can expect from that client.  And, we all know referrals is the name of the game. Referrals cost us much less, and the client referred to us loves us already. Plus, by making the client ecstatic, we have a reason to charge those generous commissions we love—and we should.

 Obvious Question–Not an Obvious Customer-Agent Service Match

You may the above question and answer are obvious. But, we should slow down and really think about it. Why? Because the gap between client expectations and general agent performance has, in the evaluation of the consumer, become a chasm. And, unless we can breach that gap, our commissions will keep sliding downward.

 Time to Think ‘Outside In’

 As you read this, stop yourself from thinking ‘inside out’ (What we like to think about ourselves). I, like you, have spent most of my adult working life as a Realtor. I sold hundreds of homes. I hired, trained, and coached thousands of agents. It’s painful for me, as it is for all of us, to look at ourselves from ‘the outside’. But, if we want to sustain our practices in the best way possible, we have to close that gap between what we think of ourselves and what consumers think of our practices. We have to think ‘outside in’ (look at ourselves from the consumer perspective).

 Buyers Talk—Let’s Listen 

Take a look at this survey of 2009 from the California Association of Realtors.

 CAR asked buyers to rate the overall satisfaction level with their buyer’s agent. Wow! 4 out of 100! Now, I know that’s not true of you, but, it is what those thousands of buyers rated those thousands of agents they dealt with. Is 4 out of 100 good enough to get referrals? Is it good enough to sustain ‘generous’ commission levels? I don’t think so, do you?

 Our Reputation as an Industry is Impacted By Every Agent’s Practice 

Yes. I know most Realtors are independent contractors. We like to think we are not impacted by others’ practices. But, in truth, study after study shows we are. The consumer judges us generally by the level of practice of the agent with whom they have contact. Then, we ‘inherit’ that reputation—whether we earned it or not. And, when we have that less than sterling reputation, we have to dig ourselves out of the hole to prove we’re not ‘one of those’. It’s there, and we have to recognize it. 

What do YOU Think?

What do you think the consumer wants that he/she’s not getting? In the next blog, I’ll show you what they said (what they wanted from buyers).

The Ideal Agent

I’ve given you {buyers} dozens of suggestions for choosing the right agent for you, from qualities to skills to questionnaires. As I wrote this chapter, I starting thinking about the criteria I would use to choose an agent. So, turnabout’s fair play. Here’s the kind of agent I’d look for if I were buying a home today:

• Has been in the business three to five years and seems real committed and enthusiastic
• Has completed higher level training (Graduate Realtors Institute and Certified Residential Salesperson–both Realtor-sponsored educational series for real estate agents, which include sales and technical skills)
• Has completed an average of 10-20 sales per year or more  (working with buyers)
• Has letters of recommendation, and list of people I could contact
• Has a portfolio or brochure, with stated mission and values
• Specializes in area where I want to look
• Has time to put me first, within reason
• Doesn’t delegate me totally to an assistant
• Seems strong enough to tell me the truth, even if I don’t like it
• Explanations about agency relationships and how he works are clear and concise
• Has high standards for choosing buyers
• Demonstrates strong communication skills
• Seems to match my business values

Last word to agents: Hone your skills and your values to match the kind of person you’d like to work with–when you’re a buyer. It really helps a salesperson customer service rating to pretend he’s a “real person”–for a change. Seeing the world of sales from the consumer perspective will give you fresh new ideas, and help you differentiate yourself from other agents. With ever-raising buyer demands, this will assure you compete in the next decade.

Pro-Active: You go find the lead (like calling on for sale by owners)

Re-Active: You wait for the leads (like lead generating companies,

floor time, and open houses)

Too often, agents like George (see my earlier blog) blame the re-active lead generating source for lack of quality of leads. On the other side, lead generating sources (like relos and agent rainmakers) feel that agents don’t convert enough of the leads provided. Instead of blaming each other, we can take positive steps to assure that you can screen your leads effectively, and turn good leads into appointments. Now, both agents and lead generating sources are happy!

The First Principle: Follow Up on the Lead NOW!

A web site lead costs $215 to generate, on average. Yet, a majority of real estate agents don’t even get back to a ‘lead’–ever! (The National Association of Realtors says 1/2 the leads NEVER get a response!) Why? I think there are three reasons:

1. Agents mistakenly think that the lead will be theirs forever—that there’s no time sensitivity to answering that lead
2. Agents believe there’s no competition for the lead
3. Agents don’t know the cost of a lead—in both time and money—so they don’t treasure that lead as if it were gold

Reply Now or Forget It!

With the instant information age, you can’t just get back to a lead three days later. The consumer today expects to get a reply quickly. In fact, the majorit expect a reply in 2 hours or less!

I’m constantly amazed when someone thanks me for responding quickly about a product or a question about our coaching.  Our standard for answering product and coaching inquiries is within the day. What’s your standard for answering lead inquiries? (Which require much faster responses, in my opinion, than my ‘leads’).

There’s Competition for that ‘Lead’

A few days ago, I was visiting with my cousin, whose daughter just went into real estate (she’s twenty-two). She has immediately put technology to work, creating an awesome database and contact management system. She’s selling up a storm—and making the agents in the area mad at her. Why? Because she’s getting to the consumers before the other agents do. They thought they ‘owned’ those consumers’. But, my cousin’s daughter is proving that no one owns the consumer. She’s demonstrating that those who put technology to work effectively today capture the consumer’s attention and loyalty.

Bottom line: If you want to make money from your leads, create a rapid response system–and use it!

1. “Is selling residential real estate your full-time career?”

My advice to buyers: Listen to be sure the agent specializes in residential real estate. You want someone selling homes for a living, not apartment houses. Listen to see if this is the agent’s full-time career. Ask additional questions if the agent’s answers need more clarifying.

Agents: You must really, really know your market, your statistics, and be able to provide prioritized knowledge to your client, not the same things the consumer can get on the web! You need to fess up to the client, now, if you’re not committed to the profession and them full-time, so they won’t be disappointed later (read the stunningly low buyer satisfaction levels with agents below).

2. “How many homes did you sell last year?”

My advice to buyers: You want someone successful; that means, at minimum, the agent sold homes to buyers at least six times in that year.

Agents: You need to practice enough that you are really good at it—and committed to your profession. If you don’t aspire to more than 6 transactions a year, how valuable are you to the client?

3. “How long have you specialized in residential real estate in this area?” or “Describe the work you do in our price range and area.”

My advice to buyers: Be sure the agent has been working in the area where you want to purchase for at least six months, so you know the agent has expertise and interest in that area.

Agents: Even if you’re new, you must prove to the client that you are worth that prioritized knowledge. Become a buddy to an experienced agent. Make yourself the area expert; do not try to ‘cover the whole state!’

4. “Tell us how you will work with us.”

My advice to buyers: Listen as the agent describes the buying/selling process, as he views it. Does it reflect what you’re looking for?

Agents: Be sure you have a Professional Portfolio, to  give the consumer an idea of your work. Remember, we believe what we see, not what we hear. Organizing your portfolio also shows your commitment to our profession. Include testimonials; we believe what others say about us, not what we say about ourselves.

Agents: Think These Criteria are Too Tough?

Did some of those questions and my advice to buyers make you defensive and argumentative? That’s because we agents tend to look at things ‘inside out’ (from our perspective). Instead, pretend you are a discriminating buyer. You’re going to spend $60,000 on a car. What kind of customer service do you expect? Now, think in terms of the real estate buyer. What kind of service should a real estate buyer expect?

Newer Agents: Panicked Because You Think You Can’t Qualify?

Relax. You don’t need to qualify on all terms. But, you need to have answers and explanations ready so you can provide buyers reasons to work with you. Advice: Educate yourself so that you are as well-prepared to help a buyer as an agent who has sold 100+ homes in his/her career.

If I were a manager, or a seller or buyer, and I wanted to find a value-added agent, here’s what I would look for:

1. Has a database, populates it

This agent is committed long-term. He uses a contact management program to manage ‘leads’, so none are lost. After all, it takes much longer today to convert a ‘lead’ to a sale than it used to take. This means the agent is committed to forming long-term professional relationships over time. Has a rapid-response method to deal with Internet inquiries and other inquiries via e-mail. Has a method to follow up on all leads until they ‘buy or die’. As a client, that means I won’t get lost. As a seller, it means my agent will follow up with all leads and give it 100% to sell my home.

2. Invests in the technology and follow-up pros have

This agent makes every decision based on his vision of his career at least 3 to 5 years in the future. For example, instead of selling someone a house anywhere just to get a sale, my value-added agent sells only in an area me defines as his ‘target area’. That way, he’ll get known, and can build on his reputation. The value-added agent has the ‘guts’ to turn down business!  Because he cares more about the well-being of the client than getting one grimy commission check, he learns to ‘tell the truth attractively’, and works harder to retain the client than to make one commission.

3. Works for referrals, not just sales

Learns to ‘tell the truth attractively’, even if the buyer or seller may not want to hear it. For example, if it’s in the best interests of the seller to list his home at a lower price, the value-added agent has the strategies and the statistics to prove that the seller will be not well served by pricing higher. And he has the intestinal fortitude to walk away (but doesn’t have to many times because he creates a stellar reputation amongst his clientele).

4. Keeps the buyers and sellers’ best interests in mind

Makes every decision to grow trust, not to make a fast buck. For example, the agent sits down with a prospective couple, and, finding out they can’t purchase right away, creates a plan with them to save for their down payment. Then, she keeps in touch over a period of months, offering helpful information and market updates.

In other words, this agent practices seller or buyer agency representation, not ‘agent agency’!

Put Yourself to the Test

How many of these points can you claim as your action? What do you want to work on to become a true ‘value-added’ agent?

The Information Hoarder/Revealer Agent Has No Value Today

When agents were able to hoard the information about homes, agents could sell value based on home information. Now, there’s no agent-provided value there. So, what value do you provide, and how do you show it?  I believe there are three packages that buyer’s agents need to provide, to justify their desired exclusive buyer’s agency agreement, and their commissions:

• The Pre-Appointment Package
• The Consultative Package (I call it “Your Guide to Purchasing a Home”)
• The Home Buyers’ System Package

Why packages: To create visual, substantive evidence that you are professional, you are knowledgeable, and you are current and contemporary.

Here’s the principle you’re going to follow:

We believe what we see, not what we hear

Non-Committed agents need not apply. You and I know that a non-committed, part-time, or low producing agent just isn’t going to take the time to create these packages, processes, and systems. You are. Creating these packages and systematizing your buyer process shows you are a committed, savvy, value-added agent.

Systematizing: The Pre-Appointment Package

To guard against that Internet buyer de-valuing the services you provide, you’re going to start educating them from the time you first talk to them. Your pre-appointment package will do just that.

Systematizing: The Consultative System and Buyer’s Package

Because you’re thinking in terms now of a complete buyer system, part of that system is a professional process to meet with the buyer using a planned process to meet the buyer’s needs. That means you’re going to educate the buyer, and you’re going to carefully and systematically qualify the buyer. You’re going to use the ‘consultative’ approach, asking great questions in an orderly, purposeful fashion.

Bottom line: You’re going to create awesome value, because you’re going to help that buyer prioritize the myriad pieces of information they’ve gotten from the Internet.

Added Value: The Home Buyers’ System

The last package you’re going to create is the most valuable. But, it’s not given to the purchaser unless and until the purchaser agrees to work exclusively with you. This package has the specific processes, checklists, and systems that you’ve created to partner with the buyer successfully through the home buying process.

The Ideal Buyer’s Agent: Working with the Internet Buyer Through Fully Systematized Processes

You’ve systematized your buyers’ process to raise it to a value-added level. You’re not focused on information-providing. You’re focused on information-prioritizing. You are now matched up with the needs and desires of that Internet buyer, and you’re poised for exceptional real estate success. Congratulations!

Buyer's Agent Toolkit

Don’t waste time reinventing the wheel: To help you get into action instead sit creating systems at your computer, I’ve provided a ready to use PowerPoint presentation, along with the three buyer packages you need, read to go, in The Complete Buyer’s Agent Toolkit. Not only that, I’ve provided a comprehensive training system to assist you in performing like a top producer—even before you are one. Click here to learn more.

Why meeting buyer qualifying criteria is important: Buyers today have many choices of how to find homes. You need to create competitive reasons to help buyers choose you.  It will save you time and money (more about that in a later blog, too). And, if you’re a newer agent, creating solid reasons to help buyers choose you will increase your self-confidence 200%.

Five Critical Questions Buyer Should Ask Agent ‘Candidates’

Here are five critical questions I believe buyers should ask agents to assure they have a ‘match’ between what they are looking for and what the agent provides. In addition, I’ve added what I believe buyers should look for in the anwers (that means that we agents must be able to qualify on these terms):

1. “Is selling residential real estate your full-time career?”

My advice to buyers: Listen to be sure the agent specializes in residential real estate. You want someone selling homes for a living, not apartment houses. Listen to see if this is the agent’s full-time career. Ask additional questions if the agent’s answers need more clarifying.

2. “How many homes did you sell last year?”

My advice to buyers: You want someone successful; that means, at minimum, the agent sold homes to buyers at least six times in that year.

3. “How long have you specialized in residential real estate in this area?”

My advice to buyers: Be sure the agent has been working in the area where you want to purchase for at least six months, so you know the agent has expertise and interest in that area.

4. “Describe the work you do in our price range and area.”

My advice to buyers: Listen to be sure the agent zeros in on the area and price range you need. If the agent says, “I work anywhere with anybody”, that agent may not be for you, for he may be trying to cover too much ground to know very much about specific areas.

5. “Tell us how you will work with us.”

My advice to buyers: Listen as the agent describes the buying process, as he views it. Does it reflect what you’re looking for?

Agents: Think These Criteria are Too Tough?

Did some of those questions and my advice to buyers make you defensive and argumentative? That’s because we agents tend to look at things ‘inside out’ (from our perspective). Instead, pretend you are a discriminating buyer. You’re going to spend $60,000 on a car. What kind of customer service do you expect? Now, think in terms of the real estate buyer. What kind of service should a real estate buyer expect?

Newer Agents: Panicked Because You Think You Can’t Qualify?

Relax. You don’t need to qualify on all terms. But, you need to have answers and explanations ready so you can provide buyers reasons to work with you. Advice: Educate yourself so that you are as well-prepared to help a buyer as an agent who has sold 100+ homes in his/her career.

Resources to Help You Compete to Qualify for a Buyer

Objection Busters for Buyers’ and Sellers’ Objections–provides a unique method to ‘craft’ answers to objections and provides dozens of scripts and role plays

The Complete Buyer’s Agent Toolkit–all the presentations, checklists, and skills you’ll need to create loyalty with buyers and compete with mega-agents

Your Professional Portfolio–how to build the unique YOU to position yourself as a real estate professional/expert/consultant