Some of Arizona’s most Successful Agents call John Hall & Associates home.
Tag Archive: Careers and Training
Real Estate Training: Learning opportunities ahead!
Diane Flannigan, Director of Career Development, has put together an inspiring series of real estate education classes that will rock your world – and hopefully your business! The diverse training schedule has been created in the Back to School spirit. Only this school is way better than regular school because there are no boring pre-requisites before getting to the good classes. We’re going to start with dessert!
- Your broker, Jim Sexton, is going to be teaching Sell by the Numbers. He’s going to work through the Cromford Reports and teach you how to use the available statistics effectively.
- Jason Smith (American Mortgage Specialists) and Alex Jovicich (John Hall Agent) are going to share with you how to get your clients the revitalization money that is available for homebuyers right here in our local Phoenix neighborhoods.
- Mark Taylor (Originator of the Certified Distressed Property Specialist designation) is going to teach the ins and outs of selling and listing distressed property without going broker or getting sued! (Lawyer’s Title Insurance has sponsored this class.)
- And then there are the technology classes that I (Phil Sexton) will be teaching. I’m really no good at talking about myself. I can’t tell you they are _____, because obviously I’m biased. But if you find the information I share on our blog and office meetings informative, you’ll enjoy these classes. I’m going to drill down into more specifics and show you how to do the things I talk about. My classes will be covering a variety of topics including getting more website traffic, using Facebook effectively, and the technical side of using the Cromford Reports.
So get your calendars out, decide which of these classes you want to attend (or pick D – all of the above) and get ready to rock this year with more closed business than you know what to do with. If all goes as planned you may want Diane to teach a class on building a team just to handle the increased workload!
September 2, 2009 1:30-3:30 Kiva Room, PV Office
Mark Taylor – Introduction to Distressed Properties
September 9, 2009 1:30-3:30 Kiva Room, PV Office
Jason Smith and Alex Jovicich – How to get your clients the Neighborhood Revitalization Money
September 10, 2009 10-12 Kiva Room, PV Office
Phil Sexton – Using and Navigating Facebook
Septmber 15, 2009 1:30-3:30 Kiva Room, PV Office
Mark Taylor – Introduction to Distressed Properties
September 17, 2009 10-12 Kiva Room, PV Office
Phil Sexton – Using and Publishing Cromford Reports
September 22, 2009 1-3 Kiva Room, PV Office
Phil Sexton – Driving traffic to your websites
October 21, 2009 1:30-3:30 Kiva Room, PV Office
Jim Sexton – Selling by the Numbers
October 28, 2009 1:30-3:30 Stewart Room, Scotts Office
Jim Sexton – Selling by the Numbers
Please make sure and let Diane know you’re coming – RSVP to 602.953.4043 x 2310
The Gift of Shift
Whenever I finish a book I feel bereft, like I’m leaving an old friend. Gary Keller’s book SHIFT made be feel that way because I had learned so much. I think the last chapter was the most insightful because it talked about shifting in personal terms as well as market terms. He talks about successful people in general who continuously and relentlessly are shifting in response to the market but also in response to their own goals.
Keller talks about embracing tough times and tackling them. His book lays out twelve tactics in order to do just that and this series of articles have explored several of his suggestions. He cautions you to keep things simple and not try to accomplish everything at once. We “move at the speed of need” and when goals are clear we figure out what speed we need. Your life and career will profit when you take your priorities to your calendar and block out time for them.
Life is a series of choices that produce results and those results define us as individuals. The person that fails and gives up has indeed failed but the person that fails and learns the lesson of “what happened” ultimately succeeds. It takes resilience, flexibility, adaptability to succeed and this is a perfect market to hone those skills. You can either look at this market as an insurmountable problem or a huge opportunity; it is all a matter of your choice. Keller sums it up when he says, “How you think determines what you do and what you do determines the results you get.”
DF
Create Urgency – Overcoming Buyer Reluctance
Most of the complaints I hear from real estate agents is the frustration of working with buyers who turn out to be dawdling, postponing, hesitating, wavering……you get the picture. Don’t they know this is a buyers’ market? Oddly enough during a sellers’ market buyers will go to any lengths to buy a house making it one of the most difficult times to buy value. Buyers were buying like crazy even though the advantage was all to the seller. Now when it’s a true buyers’ market, they want to wait for fear of paying too much. Gary Keller in his book Shift says, “When they should have been afraid of paying too much they weren’t and now that they shouldn’t be afraid of paying too much they are.” It seems they are intent on finding the greatest deal ever and it causes them to miss out on the great deals that are possible. Most believe that they can “time” the market thinking they have all the time in the world. It isn’t possible to know when the real estate market has “bottomed” since it is a relative position and you only know you were at the bottom when it starts up again. Guaranteeing a “killing” on both ends is impossible, as any investor will tell you real estate is a long-term investment. What goes up comes down and what is down will come up again.
After the typical advice that buyers need to be ready, willing and able, Keller offers some excellent direction on energizing buyer urgency…
photo credit: visitmyluxuryhome.com
Three Ways to Energize Buyer Urgency
1. Become the local economist of choice: Consumers seek expert advice on everything from health care to car problems but take their real estate advice from newspapers, neighbors and relatives. Those sources can’t possibly give you the whole story on local real estate. Keller suggests that you start by influencing their rational thinking with solid numbers and facts. People have been lead to believe that they can buy or sell every three to five years and make a killing on both ends. As the local expert you can help buyers to understand realistic economic expectations in their local market. Since market expectations can be a powerful source of motivation, you should be the one setting those expectations. You need to know as much as possible about the local market.
2. Tap into their “WHY”: You’ve heard it before, “when they say what they want, you ask why?” Don’t let this powerful determining and motivating factor go unnoticed. Leading reluctant buyers back to their “why” is not manipulation, it is part of your fiduciary duty to remind them of what they want to buy and why. Of course, in the end your buyers make their own decisions but it is you who helped them overcome their fears and make a good decision.
3. Overcome Buyers Reluctance: Once the market starts showing signs of improvement the really great buys slip away and the pent up demand for housing drives prices up through mounting competition. Buyers’ markets are skill-based markets and now is the time to practice your talking points (scripts), find a business coach, engage in interactive role playing all in order to help buyers make good decisions. You can do all that with the strategies that Keller describes in his book; hazards of timing the market, trade up (the opportunity of a down market), narrowing a buyer’s choices and finding a “Best Buy”.
Keller says you can cope with this market shift by: building buyer urgency through “expert knowledge of the market, careful consultation on their personal wants and needs, skill at communicating the opportunities of the market, and assertiveness in challenging their thinking. As the dedicated professional that you are you have earned the right to help people with their real estate decisions as well as the “courage to act on what you know to be true.”
DF
Seller Staging Strategies – Stand Out From The Competition
It wasn’t all that long ago that a house would sell regardless of how it looked, smelled or presented itself – well, WAKE UP, times have changed and so have buyers. Savvy agents recognize that a shift means its showtime for a listing. Your listing must win a beauty contest and a price war!
As an agent you face two obstacles; the seller’s reluctance to invest in staging and the buyer’s inability to envision how a property will look when it is in its best condition. Generally speaking, staging is an essential part of marketing a home. Keller tells you the numbers are on your side, “a review of over 2,800 properties in eight cities found that staged homes, on average, sold in half the time that non-staged homes did. The sellers with staged homes ended up with 6.3 percent more than their asking price, on average.”
Sellers, while they grasp the benefits of staging, may not see the necessity of staging their home. They have spent money, time and effort in fixing and filling it with their stuff and it bears their personal taste. But now, the house needs to appeal to the broadest possible segment of likely buyers. And, you need to convince the seller that you don’t live in a house the same way you put a house up for sale.
Gary Keller in his book Shift suggests that you might want to use the “3P-2F Formula” in suggesting improvements:
♦ Plantings
♦ Paint
♦ Pictures
♦ Furnishings
♦ Fixtures
The house’s appeal has to start at the curb, if they don’t like the outside, they may never see the inside. And, buyers spend a lot of time on the front porch while the agent is accessing the key. Keller advises taking sellers through the house room by room asking them in each area what three things they would do to improve the appeal for that particular area. The following areas are especially important to buyers:
♦ Entryway
♦ Kitchen
♦ Master bedroom and bath
♦ Main living areas
♦ Other bedrooms
♦ Backyard
In the event that sellers cannot name three things they need to do to improve those areas, you need to be ready with a list to help them out.
Be sure to suggest a thorough cleaning, windows especially need to sparkle. You may need to address clutter; clutter eats equity because clutter eats space. You certainly don’t have to be the one that does any of this, if you want to that’s great, but there are professional stagers you can use as another option. Some agents provide one or two hours of a staging consultation as a part of their listing package. There are advantages to having a third-party professional deliver the bad news especially when you are talking about their precious personal photos or knick-knacks. Remember that the entire idea of staging is to create a neutral environment where buyers can envision their own things.
There are already so many thing you can’t change about a home; its location, square footage and amenities that staging becomes imperative to accentuate the true value of a home and when done effectively can actually create value. Keller says, “Pricing and staging are the issues of the day in a shift…..pricing gets you in the game – staging gets you the offer.”
DF
Get To the Table – Lead Conversion
What defines a “shift”? If you say, “scarcity defines a shift”, then you truly get what’s happening. There may still be lots of “leads” (if you are generating them properly) but there are fewer good leads. As important as lead generation is, if you don’t get a name and number and an appointment, what good is it? You might be deeply into activities that generate leads but leads that don’t turn into appointments make your activities futile. So let’s define a real lead as a lead that has a name, contact information and an appointment with a motivated person – now THAT’S a lead.
Gary Keller in his book “Shift” says that conversion is simple but requires preparation. Lead conversion is:
Capture – According to NAR most buyers and sellers only interview one agent so getting there first is important. Then, you have to ask, if you fear being “pushy” or “intimidating” it is inappropriate because just asking has no emotional energy attached to it. “If I found exactly what you’re looking for where would I contact you?” Try it, it works well!
Connect – The fundamental theme of connecting is curiosity – to understand someone’s wants and needs and become aware of their concerns and issues. You are a consultant who wants to understand their situation. Keller suggests six connection questions:
1. Who are they?
2. What do they want or need to do?
3. Where do they want or need to do it?
4. Why do they want or need to do it?
5. When do they want or need to do it?
6. How do they plan to do it?
Close – Does that sound too “sales like”, well it should according to Keller ”close” means “end in mind”. Based on your connection can you help? Is their “need” viable. Closing doesn’t just happen, it is part of the plan and you ask - ask to meet, ask when to meet, ask where to meet, ask if you should, could, want or must meet. Just Ask!!
Keller is a real proponent of scripts – so is John Hall & Associates. When you know the answer, it is hard to wait for the question. You want a chance to use your polished answer. Unfortunately many agents don’t have a polished answer! Because they never practiced the answer even though they have heard the question again and again. Keller has some great script suggestions. You also might try the John Hall & Associates intranet for dozens of scripts under “Flannigan’s Marketing Ideas”, more importantly PRACTICE them. Lead conversion is more than an art it is a skill-based aspect of your business.
DF
Find the Motivated – Lead Generation
You are NOT going to like this but you need to hear it anyway if you want to remain in the real estate business -
YOU NEED TO GENERATE LEADS!!!
Most of our dislike for lead generation is based on pure myth:
• Myth: It is too difficult and no fun.
♦ Myth Buster: You’re confusing effort with enjoyment.
• Myth: I’m too busy and it takes too much time.
♦ Myth Buster: It’s an issue of making time and then protecting it.
• Myth: I’m afraid of making mistakes.
♦ Myth Buster: It is nothing more than a set of skills easy to learn.
• Myth: I don’t have the capital and it costs too much.
♦ Myth Buster: You don’t have to spend any money if you don’t want to and the old saying, “It takes money to make money” is pure nonsense.
• Myth: I don’t like it and I just plain fought it.
♦ Myth Buster: There are no natural born lead generators so let’s face it, refusing to do lead generation is like a butcher who refused to touch meat! It won’t work.
There are some simple steps to effective lead generation:
Step One – Find out what doesn’t work and STOP DOING IT! The only way you can know this is to associate your valid leads and your sources with closed sales. If you haven’t kept those records, start right now.
Step Two – Figure out what works and do more of it. Identify your lead sources and concentrate on the top four sources. Keller says to narrow your focus and then concentrate on the Message and the Method.
Message – If you read “Real Estate Rainmaker” by Dan Gooder Richard you will fully understand this type of solution marketing. Find the areas of pain in this market such as buyers worried about paying too much, sellers worried about how long it will take to sell and, of course, have we reached “bottom”. Concentrating on your message brings a solution to that pain. Keller suggested, for example, using “bargain” in this market because buyers are attracted to that aspect. It should not be difficult in your advertising to offer a solution to some of the problems in this market.
Method – How are you delivering the message? There are only two ways of generating leads – marketing and prospecting. Marketing is attracting business, in a sellers’ market that works well because the product sells itself. (Marketing = Attracting) Prospecting is seeking business and in a buyers’ market when the product no longer sells itself you MUST prospect! (Prospecting = Seeking) Marketing is passive and reactive (i.e. mailing, etc.) while prospecting is active and proactive. By the way, marketing can cost a ton of money while prospecting can be practically free.
Step Three -Now that you have honed your message and your methods its time to put them to work. Ramp It Up! “To do this you must subscribe to one simple belief; dealing with business never takes precedence over finding business.” If you don’t embrace this philosophy, everything else will interfere and you will constantly find other things that seem more important. You must block out your lead generation time and consistently focus on prospecting and marketing. Keller suggested you time block three (3) hours each day for this important activity and “if you erase, you must replace”. I almost fell out of my chair when I first read that but the book lays out EXACTLY how to block out the time and then a step-by-step list of what needs to be done in those three hours daily. I highly suggest that you read the book but you probably know that by now.
Finally, Keller says when the market slows it is naturally for agents to “cocoon” hanging around their office or home waiting for the market to pick up. Instead, gear up. Real estate and lead generation are both contact sports. Your job is to find ways to get in the path of motivated buyers and sellers.
DF
Get Real, Get Right – Mindset and Action
I have always agreed with Tony Robbins – people run towards pleasure and away from pain, Keller puts a new spin on that in his book “Shift”. He says the first approach lifts you up and the other drags you down. Keller suggests that you “Get Real” by recognizing this market for what it is. Know the fact, this is a very tough market and you can’t control it but you can control your outlook and your response to the market. There is great freedom in realizing that success is “never about the chosen few, but always about the few who choose.”
It might sound very “Zig Zigler” or “Norman Vincent Peal” but nevertheless it is an enduring truth, all success, and especially sales success, starts between your ears. Get your mind right, get in the game and be resolute. This shouldn’t be a temporary attitude but a life long mindset that elevates you far above most people who live a “flow with the tides” kind of life.
Mindset alone won’t bring success it takes action. Real personal growth comes from clarity of purpose, arranging priorities and focused-action. Actually critical actions must be done by you on a daily basis. The critical action that we are talking about here is Lead Generation and Lead Conversion. Keller maintains that your direct involvement in lead generation and conversion gives you two invaluable insights. “First, you get an immediate and ongoing sense of the issues of the market – buyer and seller objections that need to be overcome. Second, you will get an honest understanding of the conversion rates that are possible.”
None of this is new, unique or particularly special it is all quite basic but maybe that’s what the fundamentals of a successful real estate career are – BASIC!!
DF
How To Survive Any Real Estate Market
It isn’t often that you’re introduced to a book that could quite literally change your perspective on this market or at the very least, change the way you conduct your business but I was recently given such a book. The title is simple enough “Shift” by Gary Keller who asserts that its not about the market….It’s about what you DO! Wow, that’s a different spin on a tough market, what could matter that much in today’s economy? I was about to find out. The information was so valuable, insightful and timely that I wanted to write my first book report since graduate school and tell you what I learned.
It wouldn’t be possible to tell you everything that is valuable in this book; you’ll need to read it for yourself to see what applies to you. However, I can pick out a few things in some select chapters that can increase your business and relieve some stress. Over the next couple of weeks, I will give you a brief overview of this wonderful book with a review of some specific chapters.
After a brief introduction that addresses how economic and real estate shifts happen and the kind of personal financial strategies that you need in order to survive, the book moves to the anatomy of a shift. While many people talk about the types of markets we face, Keller effectively labels them:
1. Buyers’ Market – More than 7 month’s inventory
2. Balanced Market – 5 to 7 months of inventory.
3. Sellers’ Market - Less than 5 months inventory.
This is valuable information that comes in handy when talking about prospecting vs. marketing (no they are NOT the same thing!), so keep them in mind. Keller wastes no time or extra words listing what he believes to be the core competencies of a business. I am going to assume that you know you are running a business, you are the CEO and the employee, and the primary objective of any business is to make a profit. Given those assumptions there are fundamental priorities for your business.
Six Core Competencies of a Business
1. Lead generation, capture and convert to appointments.
2. Present to buyers and sellers and get agreement.
3. Show buyers and market sellers for required results.
4. Write and negotiate contracts.
5. Coordinate the sale to closing.
6. Manage the money.
Keller also gives you twelve tactics to help you deal with tough times.
#1 Mindset and action
#2 Expense Management
#3 Leverage
#4 Lead Generation
#5 Lead Conversion
#6 Internet Lead Conversion
#7 Seller Pricing Strategies
#8 Seller Staging Strategies
#9 Overcoming Buyer Reluctance
#10 Creative Financing
#11 Short Sales, Foreclosures and REO
#12 Issues and Solutions
So that’s the game plan, obviously these articles aren’t going to replace reading the book but over the next few articles you WILL get the essence of how to change your business strategies to survive and thrive in these tough times.
DF
Real Estate Business Planning by Diane Flannigan
Thanks to all who attended the John Hall & Associates Real Estate Business Planning Workshops – they proved to be successful (sometimes you just have to congratulate yourself). Both classes were full and we’ve received enough inquires to do at least one more class.
The Business Planning class not only covers basic business sense but explores the differences between Prospecting and Marketing. Prospecting is seeking. Marketing is attracting. In a sellers market (remember those days), you could sit back and “attract” business. You could afford to spend about 80% of your efforts on marketing and do well. It is no wonder that every agent would like to simply mail “stuff” out and receive business. Well, those days are gone, in a buyers’ market about 80% of your efforts have to be directed at prospecting. It might be a hard pill to swallow but you need to get up out of that chair and go meet people – that’s prospecting. Try it, you might actually like it. The class gives you strategies to make your prospecting less painful.
Another topic that we covered was working ON your business and not just IN your business. Setting aside time for lead generation, preparation, action and maintenance. In the first class Jeanette Sletten brought her “Procedures Manual”, a book that helps keep her on tract, focused and organized. Great job Jeanette! The maintenance of her business will be much easier because of it.
John Hall agents really seemed to like some of the other subjects too like The Six Core Business Strategies, leveraging and remargining your business, and accomplishing business objectives.
This is a fast paced class that will help answer how to plan for change by changing your plan. The next class is
January 14th, 2009 • 1 PM to 3:30PM • Paradise Valley Office • John Hall & Associates
Call or email me to make your reservation now. My classes are reserved for John Hall agents only – for more information on joining our dynamic company give me a shout.
Diane Flannigan
602.953.4055×2310
dflannigan at johnhall dot com
Is GRI really worth it?
According to Charlie Bross, President, RE Training Center, “The fact is, there is tremendous opportunity in every market, including today’s. Sometimes you just have to change the way you think and work in order to see it…” I’m sure you have all heard that agents are no longer order takers. Agents are looking to acquire skills to build their business. Does this describe you?
According to a 2006 survey by NAR, 85% of all agents coming into the industry have no sales experience.
Knowledge and skill are partners to success. There are no shortcuts. Today’s continuing education classes help increase your knowledge base, but, in my opinion, today’s c/e classes lack skill training. Most classes focus on delivering information, but are not delivered in such a way that creates relevance to your day to day practice. To acquire skills education, I believe classes must be performance-based, incorporate simulated activities and/or provide some type of hands on experience in the forms of scenarios or other student based activities. You must have an opportunity apply the knowledge, not just receive the knowledge.
The Swanepoel Trends Report 2008 report that a survey conducted with over 1000 real estate salespeople, the following skills were ranked as the most important for agent success:
-
•Expanded knowledge of the changing market and expertise
•A good listing presentation and CRM system
•Stronger web-based computer skills including blogging, SEO and networks
•Knowledge of financing, foreclosures, short sales and staging
•Good time management
•Enthusiasm and a continued positive attitude
•Good negotiation skills
To reinforce my comments, how many of these topics are covered in ADRE license renewal categories? None. This is why I believe there should be two components of real estate education: c/e classes which are required to renew your real estate license AND career development classes which are needed to acquire knowledge and hone your skills leading to success in this business. I recently read on Jennifer Cummings blog: ”I absolutely believe that the distance between where you are now and where you want to be is simply 6 inches – the 6 inches between your ears!” Fill those inches with as much career development education as you possibly can.
Most, if not all, of the above skill topics are covered in Arizona’s GRI (Graduate, REALTORS® Institute) program. Look around your office and see how many of the top producing agents have earned the GRI or one of the other prestigious designations. Think back to some of the transactions you have had with agents who hold a designation and agents who do not. Did the transaction go more smoothly when working with an agent to not only has knowledge, but also has skills?
What are you waiting for? Make the commitment this year to earn the GRI designation. Classes are offered locally and in one and two day increments. Visit our site and find out more about the GRI designation program, the classes, and the class schedule.
Barbara Freestone, Vice President Professional Development
Arizona Association of REALTORS®
602.248.7787 • 800.426.7274 Toll-free in AZ • 602.351.2474 Fax
255 East Osborn Road, Suite 200 • Phoenix, Arizona 85012
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