Seller Mastery Guides

Transcription

1 Seller Mastery Guides Step 1: Lead Conversion Close for the Appointment Make Every Contact Count! Roger Higle

2 Seller Mastery Notices While Keller Williams Realty, Inc. (KWRI) has taken due care in the preparation of all course materials, we cannot guarantee their accuracy. KWRI makes no warranties either expressed or implied with regard to the information and programs presented in the course or in this manual. Material excerpted from The Millionaire Real Estate Agent and SHIFT: How Top Real Estate Agents Tackle Tough Times appears courtesy of The McGraw-Hill Companies. The Millionaire Real Estate Agent is copyright Rellek Publishing Partners Ltd. SHIFT: How Top Real Estate Agents Tackle Tough Times is copyright 2008 Rellek Publishing Partners Ltd. All rights reserved. All other materials are copyright 2008 Keller Williams Realty, Inc. Printed October No part of this publication and its associated materials may be reproduced or transmitted in any form or by any means without the prior written permission of Keller Williams Realty, Inc. v Keller Williams Realty, Inc.

3 Step 1: Lead Conversion Table of Contents WHERE YOU ARE TODAY...1 THE IMPORTANCE OF LEAD CONVERSION...4 The Beginning of the Listing Cycle...4 CAPTURE SOURCES AND TYPES OF LEADS...6 Managing Sellers from Different Sources...6 Responding to Sellers...9 Managing Sellers in Different Situations...11 CONNECT...14 Connect Through Consultation...14 Connect with the DISC...15 Connect with Purpose Use a Lead Sheet...17 Prelisting Lead Sheet...19 Prequalifying Able, Ready, and Willing...21 CLOSE TO APPOINTMENT...26 Techniques...26 Criteria for the Appointment...31 Leads to Appointments Ratios...33 OBJECTIONS DELAY, OBJECT, OR RESIST...36 Refusal to Give Information...36 Objections Related to Commission...37 Objections Related to Media Coverage...37 Objections Related to Commitment...38 Reluctant FSBOs...38 Objections From Expireds...39 v Keller Williams Realty, Inc.

4 Seller Mastery THE APPOINTMENT: HOW AND WHERE...40 Two Schools of Thought: One-Step vs. Two-Step...40 Where to Close the Listing...43 Appointment Setting Accountability...45 MY ACTION PLAN...46 ADDITIONAL RESOURCES...48 Further Reading...48 Accountability Tools...48 KWConnect...48 NEXT STEP...49 v Keller Williams Realty, Inc.

5 Step 1: Lead Conversion Where You Are Today A goal of this course is to encourage you to absorb and internalize the key information in the course Guides. The path to skill is made up of just four simple steps: 1. Memorize - (the material, the ideas) 2. Internalize - (make them something you know without thinking about them) 3. Customize - (adapt them to your personality, business practice, and business plan) 4. Capitalize - (take full advantage of their power) You can think of this another way. One big key to success is to study. When thinking about study, keep in mind the acronym AIR, which stands for attention, intention, and repetition. Study comes together in your business with practice and coaching. You ve been through an overview of the entire course where we introduced the Seller Service Cycle. The next seven guides correspond to the steps of the cycle. Your lead generation should be running full blast, built on the three hours a day commitment advocated in the KWU course Lead Generation 36:12:3. In this guide, we re going to focus on converting a listing lead to a listing appointment. In the process, you ll see how top agents not only get the appointment, but begin diagnosing how to work most effectively with that prospect to get the listing and service the listing through offer acceptance, contract to close, and beyond. Let s begin by testing your knowledge on what you learned in the Guide, Introduction. Repetition is the mother of skill. Dave Jenks Keller Williams Realty International 1. What do top agents say are the four leading ingredients in the pursuit of mastery? v Keller Williams Realty, Inc. 1

6 Seller Mastery 2. Name the seven steps of the Seller Service Cycle Eight traits of listing masters were named. What are they? Answers: Knowledge; Attitude; Skills; Habits Lead Conversion; Prelisting; Listing Consultation; Servicing and Marketing; Offers and Negotiation; Contract to Close; Postclose Systems Driven by a Big Why; Time Block for Focus; Committed to Practice and Coaching; Create Energy and a Great Attitude; Thirst for Knowledge; Employ Great Tools; Organized; Give and Get That Mastery Feeling 2 v Keller Williams Realty, Inc.

7 Step 1: Lead Conversion The Seller Service Cycle You Are Here 7. Postclose Systems Touch Systems Client for Life 1. Lead Conversion Capture Connect Close Appointment 6. Contract to Close Complete Contract to Closing Touch Follow-Up The Seller Service Cycle 2. Prelisting Research CMA and Prep Packet Prepare Body and Mindset 5. Offers and Negotiations Receive Offers and Negotiate 4. Servicing and Marketing Listing Service Systems Marketing Systems 3. Listing Consultation The Front Door The Walk-through The Kitchen Table The Close v Keller Williams Realty, Inc. 3

8 Seller Mastery The Importance of Lead Conversion The effort you give to converting leads must match the effort you give to generating them. Gary Keller SHIFT This guide begins by focusing on the most fundamental of all skills, lead conversion. While one can argue that all the vital skills used in the Seven-Step Listing Cycle are interdependent and essential the truth is the ability to convert leads to appointments creates everything that follows. In SHIFT: How Top Real Estate Agents Tackle Tough Times, Gary Keller, Dave Jenks, and Jay Papasan hammer this point home with gusto. In describing the problem so many agents face in raising their business up to higher levels of revenue generation and profitability, they observe, They (agents) spend significant amounts of time and money on their lead production proficiency but then largely neglect their conversion competence. This is never an effective way to operate in any market. Let s take a look at how the most successful agents think about, manage, and pursue leads until they become appointments or are designated for further cultivation. The Beginning of the Listing Cycle The business of converting leads is an exciting time in the Listing Cycle you re at the beginning of a new relationship. You have the chance to apply vital skills in ways that will secure business and create lasting business connections and referral sources. It s also what poker players would probably call an all in kind of situation. Why? If you get the appointment, you re very likely to get the listing. The stakes are high. The challenge is to get the appointment. Truth In most markets in North America, the majority of sellers only interview one agent and about 85 percent talk with no more than two agents before deciding who will represent them. This guide will teach you how to get the appointment maximizing your chances of success by gathering data, prequalifying the prospect, building rapport, and using a variety of closing techniques. 4 v Keller Williams Realty, Inc.

9 Step 1: Lead Conversion In this step, we ll focus on the three steps of the conversion process: Capture Connect Close to Appointment Whether it happens on the phone, in person, or at an open house, capture is all about getting enough contact information from someone so you know you can get back in touch with them. Doing that knowing you can , call, write, or stop by to see them makes them a real lead. How the capturing process goes can also be the first indication of their intentions what it may be like to work with them, and even what the chances are they will become a listing customer. With the help of a lead sheet, your connect consultation will allow you to gather important information about your prospective client. By the end of the conversation, you should know whether or not the prospects are qualified to sell their home by working with you. Once you ve evaluated their motivation, you can decide whether to pursue the appointment, put them on a drip system, or refer them to a colleague. Finally, having connected and cultivated the relationship (while also prequalifying the lead), you will close for the appointment. Let s look first at some important distinctions involved in capturing the lead as you prepare to set the appointment: The means of contact how did you and the seller connect, or the source of the lead. The type of seller what are special characteristics of sellers (aside from personality type and personal style) that can affect how you work with them. v Keller Williams Realty, Inc. 5

10 Seller Mastery Capture Sources and Types of Leads Remember, capture means to have the lead in a position to create an appointment with them. Truth No lead is captured until you have their contact information, so that you are in control of when and how often you touch them. In SHIFT, Gary says the best advice on this crucial first step is to be straightforward and direct. Thanks for calling. I m Gary Keller. May I ask your name? and Thanks and what is your phone number? work really well when asked together. When asked separately, a script like If I were to need to get in touch with you, what would that number be? or If I found exactly what you re looking for, how would I contact you? or If I found out that information you re wanting, how would I get it to you? work well. Straightforward is usually the best approach and people just respond to it. They consistently give what you ask them to give you. Managing Sellers from Different Sources To begin with, it s important to be clear about some differences you will likely encounter according to the type and source of the lead you are following up on for an appointment. These discussions are also reviewed in Lead Generation 36:12:3. Seller lead sources: Internet Inbound Phone Personal Contact 6 v Keller Williams Realty, Inc.

11 Step 1: Lead Conversion Internet Leads Leads that come by phone or personal contact are often easier to convert to an appointment. Internet leads leads that come in via or Internet forms tend to take longer because they are typically at an earlier stage in the selling process. Think about this when a seller contacts you by phone, what sort of preparation have they done toward selling their home? They ve probably figured out how much they need to net, talked to friends about home values, and looked online for information. By the time they pick up the phone, they already have a plan for what to do once they ve sold their home. They know they re going to speak to a human being, so they ve done some mental preparation after all, they don t want to look unprepared. But the Internet provides anonymous instant information. People who are in the early stages of the selling process can make casual inquiries without having done any preparation at all. In fact, the Internet is increasingly the first step homeowners take in the selling as well as the buying process. While buyers are looking at specific properties, sellers are cruising websites (hopefully including your own or your company s site) checking out property values. What does this mean for you? Does it mean that Internet prospects are just browsers curiosity seekers who will never actually become active clients? Far from it! The fact that Internet leads are in the first stages of the selling process just means that they require a different mindset. In fact, research conducted in 2007 for Lead Generation 36:12:3 shows that while sellers represent just 15 percent of total visitors to Keller Williams agents websites (85 percent are buyer leads), the proportion of sellers who register on these sites and the percentage who eventually sign agreements to work with the agent (80 percent) are higher than for buyers (65 percent). Sellers who use the Internet to search for value comparisons and agents mean business. Their conversion rates with agents are higher than buyer conversion rates. Remember, though, that buyers can search for homes from many sources and get much of what they want before ever contacting an agent. Sellers, however, must register with an agent on a specific site to get an estimate of value on their specific property. People who contact you via or who complete an online registration form generally expect a fast response from you. Instant gratification is one of the distinctive features of the Internet, and surfers who can t get the information they want when they want it will quickly move on to the next site. v Keller Williams Realty, Inc. 7

12 Seller Mastery Greg Gorman, a top listing agent from Naples, Florida, has found that narrowing his response time pays big dividends. If a lead comes in from the Internet, we know we re typically going to have to respond to that lead very quickly. You ve only got about one to two hours on an Internet lead to get back with them. People who are on the net want everything instantaneously that s why they re on the Internet. And we find that if we re able to meet that one-totwo-hour goal, we typically can turn that very cold lead into a hot prospect. Agents with teams make it a team goal to respond immediately to internet leads. Solo agents face more of a challenge. Solos who truly want to maximize their investment in the internet have their s routed to their PDA or smart phone so they can respond to s throughout the day as close to instantly as is possible. Top Northwest agent Ben Kinney, Bellingham, Washington, recommends being as aggressive as possible when contacted by an Internet lead. We send them 10 s back over 10 consecutive days, says Ben. By then, usually we know where we stand with them. Inbound Phone or Personal Contact This is lead conversion the old-fashioned way, and it has its pros and cons. Most agents we talked with seem to prefer the comfort and control they feel when they are in an active dialogue with a seller. But, unlike the Internet lead, the called or calling seller s situation has not been conditioned by Internet activity at least not activity that you can track and attribute to them. So, your confidence, your scripts, and your probing skills are really put to the test. Unless they are from your Met database and you can immediately call up their database record on screen, you need to build a complete picture of them, their motivation, and their wants and needs through one conversation. You can use ProManage/TOP PRODUCER s database tool to good advantage with Mets. When you call, have their contact history onscreen so you can reference their property and contact history. If the lead comes in via voice mail, again, respond to it as quickly as possible. Just as you need to develop a fast response system for , you should also systematize your response to voice mail. Either commit to handling your phone calls after every meeting or appointment, or else block periods every day to return phone calls. 8 v Keller Williams Realty, Inc.

13 Step 1: Lead Conversion Responding to Sellers Be Prompt The following graph shows the response times for the majority of top KW agents to different kinds of leads obtained from a survey of agents attending Mega Camp in Sixty-two percent respond to phone calls in 1 hour or less during business hours. Fifty-five percent respond in 4 hours or less to calls received after business hours. Times are only slightly longer for Internet leads during business hours: 55 percent respond in 2 hours or less to business-hours s; 58 percent respond in 1 business day or less to after-hours s. - after business hours Calls - after business hours - during business hours Calls - during business hours Be Energetic Top Agent Response Times Hours Here s a tip that s rooted in common sense but a point that s easy to miss. When you connect with a prospect on the phone, remember to infuse your voice with as much animation and excitement as you can a lot of your energy is lost over the phone line, so you need to compensate for this effect. Top sales groups regularly use their sales meetings as one of many opportunities to pump each other up about the tone and language they use to answer a call. v Keller Williams Realty, Inc. 9

14 Seller Mastery Different Response Types Drip mail Video Drip Mail Systems Drip mail systems are purposeful contact systems that you creat to respond to a lead over time. Research for Internet Lead Generation shows that the most effective responses are meaningful, interactive, and consistent. A combination of personal phone calls, automated marketing campaigns, and the Buyer Instant Notification System (BINS) available through your IDX provider will net you the best results. An Agent s Guide to Internet Lead Capture and Conversion is one great Keller Williams resource on current marketing technologies for lead follow-up. Drip systems have been around a long time, and keep getting better, because they work! Response In order to respond efficiently, yet personally, you can adapt the templates provided in lead management programs like ProManage/TOP PRODUCER. You can plug the important facts from the Internet lead into a form and send it off. You can attach a specially formatted lead sheet to the . One is available for you in your Toolkit CD. Even if the prospect isn t comfortable talking with you over the phone, they may be willing to fill out your form, providing you with valuable information to help keep the prequalifying and appointment-setting process moving forward. Video A particularly impressive variation on the response is the video . This service allows you to record impromptu videos using a computer camera in response to each or form. These short videos are then ed back to the prospective seller. This technology gives you the chance to tailor your response to each and to create a stronger personal connection with them. It also separates you from the herd by demonstrating your technological savvy. 10 v Keller Williams Realty, Inc.

15 Step 1: Lead Conversion Managing Sellers in Different Situations Of course, how a lead comes to you is only part of the basis for how you handle the lead. Another key component is the type of lead. What category does it fall into? The type of lead is about personal circumstances of that prospective seller. Here are some categories, with characteristics that may impact how you communicate with them to get an appointment. Common seller situations you ll encounter: Seller in Residence Job Relocation Investor Estate-Driven REO/Short Sale Seller in Residence This is the prototypical seller the person or family living in their own primary residence who has decided to sell it, for some set of personal or financial circumstances. Throughout this course, this type of seller is used as the example for scripts, dialogues, and models. You ll delve into the many aspects of working with this seller in this course, and here are the obvious opportunities: 1. This seller, like any other seller, may also plan to be a buyer. Unless they no longer plan to own a home for some financial reason, this seller should be a relatively easy buyer pickup for you, if they are staying in the state where you are licensed, or going to another state where you are also licensed. Or, you can refer them to an out-of-state agent and collect a fee. This seller lead may have come to you, originally, as a buyer. 2. It seems amazing, but top agents have told us time and again about listing opportunities they ve seen missed because eager buyer s agents never bothered to find out whether the buyer had a home to sell. v Keller Williams Realty, Inc. 11

16 Seller Mastery Job Relocation Seller This seller is living in their own primary residence, but we differentiate them because their reason for selling is specifically driven by a job change or transfer that is taking them to a new location. In this circumstance, a relocation company may be involved. You may have the opportunity to be the listing agent working with that relocation company. Some companies allow this, and it s an opportunity for you on two levels: 1. You can win a listing. 2. You can persuade the seller to let you refer them to a buyer s agent in the town they are moving to. Or, if it is a local or regional move within your state, you may become their buyer s agent. Sometimes, however, employers have exclusive representation contracts with select companies, in which case you will be shut out. Usually sellers know these conditions from their employer, but we mention it here because communication is a highly variable thing, and you may run into a seller who does not realize their employer will take control of listing the property. Investor Seller This party is selling a home that is not their primary residence. It may be an investment property that s been rented to generate cash flow. Or, it may be the seller s vacation home, or one of several vacation homes. They are often relatively knowledgeable prospective clients. They ve likely done more transactions than the average seller. The opportunity with these sellers: 1. If they are talking to you, and don t have an agent who s worked with them in the past, it could mean their past agent or agents disappointed them and prompted a search for a new resource. You may win your way into a very lucrative relationship with a seller who can bring you a flow of business as they buy and sell investment properties over time. 2. If you win them and do a great job, these sellers often have a personal network of other investors who could well become referral business. Some agents on both the buyer and seller side work almost exclusively with investors. 12 v Keller Williams Realty, Inc.

17 Step 1: Lead Conversion Estate-Driven Seller These are sellers who are disposing of a property under the guidelines of a will or estate planning document of some kind. These sellers are like traditional sellers in some ways, but special circumstances are in play because the sale is motivated by a death in the family usually the owner of the property has passed away and the seller who approached you is a blood relative. The common circumstances of estate-driven sellers: 1. The seller is operating under directives set in family legal documents. 2. Special expectations about sales price or other terms may be created in these documents. 3. The seller may be working with an attorney who has their ear, and you may have some competition in the advice-giving on this deal. REO/Short Sale Yet another universe of sellers is those in financial distress in short sale territory, or headed for foreclosure. These sellers are in need of your advice and guidance. They probably know their property is in financial distress, but they may not know their options for relief. If you know how the short sale process works, from the perspective of both owner and lender, you may be able to get their property sold, and get the sellers out of a tight spot. Or, the seller may be a bank or institution that has taken possession of a foreclosed property, making it a REO property (REO stands for real estate owned a bank balance sheet designation). In this situation, your listing client will be the institution, and your job will be to find buyers for their REO properties. This is business you are not likely to get unless you decide to make it your focus, get educated by experts, and start marketing yourself to financial institutions. v Keller Williams Realty, Inc. 13

18 Seller Mastery Connect Connect Through Consultation When I have a seller lead on the phone, my only goal is to get an appointment with them. Ron Wexler Homewood, Illinois The main goal of the initial consulting conversation with any seller, regardless of source or type, is to generate enough trust and confidence in the seller to get an appointment. Immediately, you show them what it feels like to work with you and that you are a consultant, one who listens to and connects with clients and prospects much more than talks at them. Gather Information Your most important initial goal is to gather information. Your questions, and the way you ask them, will demonstrate your shrewdness, experience, and personal warmth. This information gathering should also be designed to reveal the validity and value of this seller to your business. Are they going to be worth your time? You are seeking to understand their motivation. John Hatcher, a top agent in Portland, Maine, points out those sellers come with many different agendas. There are some people who purchase a home to fix it up and flip. There are people who have inherited property, there are job moves, there are divorces, there are people separating, whether it s roommates or a domestic partnership. Understanding the sellers motivation lets you determine their level of urgency and their time frame for selling. Jennifer Barnes, a top producer in Atlanta, Georgia, adds, You can always use that kind of information later when you re negotiating and when you re trying to think through the selling process with them. Perennial top agent Bruce Hardie, Spokane, Washington, adds an important early stage strategy for success. He says, Remember to keep the seller talking with you. The longer they talk with you, the more invested they become in you and what you have to offer and the less likely they are to invest in a different agent. 14 v Keller Williams Realty, Inc.

19 Step 1: Lead Conversion Connect with the DISC Matching and mirroring is an effective technique for aligning yourself with your prospect to facilitate communication. The technique is based on this underlying truth, revealed in numerous research conversations: Truth You are auditioning for the chance to be their representative you have to gauge their personality and match it. Whether you are conversing by phone or in person, you want to extract as much information as possible. You can use a lead sheet to stay organized. Even though you are working from a list of questions, be sure to keep the experience as individualized and personal as possible. This is a conversation, not an inquisition. In the Brenkus Team, founder Teri Brenkus, Las Vegas, Nevada, advises her agents not to be too formal when talking to a lead over the phone be friendly, be relaxed, and be their best friend. You have to size up your prospective client. Remember that you are auditioning for the chance to spend time with them as their representative try to gauge their personality and respond in kind. There are tools available to aid and guide you through all stages of contact with prospective clients. Many agents make it part of their educational mission to learn the DISC profiling system. Used in Keller Williams recruiting, the DISC profile includes detailed descriptions of personal behavioral types and styles. Asking questions that surface clues to where a prospective client aligns with this profiling system provides specific insights on how best to work with them. Remember, most people exhibit traits from more than one category. You want to make sure you meet their primary needs. Look at the chart on the following page for more details on the characteristics of each personality type defined by the DISC system. v Keller Williams Realty, Inc. 15

20 Seller Mastery D Personality What do dominant people want? To conquer, control, and win To know the bottom line To have you listen while they talk What should you do with dominant people? Let them know that you realize their time is valuable. Help them go through the home-buying process as quickly as possible. Emphasize results (especially when you present your Unique Value Proposition). Give them options and let the buyers select which choice is best for them. S Personality What do steady people want? Assurance Stability To feel safe To belong What should you do with steady people? Allow plenty of time for them to make decisions. Communicate frequently. Let them know how much you care about them and their family. Provide all the information they need (especially facts and statistics). I Personality What do influencing people want? To talk a lot while you listen To persuade To know about people who live in the area To know about entertaining in the home What should you do with influencing people? Be fun and enthusiastic. Spend time developing the relationship (ask about them). Emphasize who you know. Pay attention to social boundaries. C Personality What do compliant people want? To know lots of facts and details To avoid conflict To avoid mistakes Time to think What should you do with compliant people? Provide as much information as you can. Appeal to their sense of logic. Give them time to think. Be prepared and on time for every appointment. 16 v Keller Williams Realty, Inc.

21 Step 1: Lead Conversion Connect with Purpose Use a Lead Sheet Fundamentally, your connect consultation seeks first to understand. Think about the connect conversation as needing to answer these questions: Who are they? What do they want or need to do? Where do they want or need to do it? Why do they want or need to do it? When do they want or need to do it? How do they plan to do it? As with every other stage in the listing cycle, the initial contact goes much more smoothly and efficiently if you have a system in place to keep it organized. Jean Grubb of Austin, Texas, recommends, As soon as they get a lead from someone wanting to list a house, agents need a system that tells them what they need to do and what steps they need to perform. For the initial consultation, that system is your lead sheet. Many agents color-code the lead sheet so they can find it quickly and easily for example, gold for buyer leads and green for listing leads. It s best to keep your questionnaire to a single piece of paper you don t want to put the seller through the third degree, and having to deal with more than one sheet can be difficult when you re in a hurry. Top agents see the lead sheet as a multifaceted opportunity to: 1. Organize all the important personal details about the lead that you ll want at your fingertips later, when they become a listing client or a followup. This includes noting how they came to have your name in the first place a vital piece of information for marketing planning and budgeting (more to come on this in Step 4: Servicing and Marketing). We use a lead sheet, so when they decide to hire us we have information we re working from, and we know what our goal is when we walk into the presentation. Dan Harker Dallas, Texas 2. Track key prequalifying questions that help you assess how to handle this lead going forward. a. Are they ready to list now? How do you know? b. What are their motives for selling? c. What are their attitudes about the market? d. What s their financial position in the property? Do they have equity? e. Do they have a price in mind right now? f. Do they plan to interview other agents? Have they already made other agent appointments, and if so, when are they scheduled? g. Are they considering selling the home themselves? v Keller Williams Realty, Inc. 17

22 Seller Mastery 3. Learn something about the prospect s personality type and communication style. This can provide invaluable insight that will be useful as you work to convert them to an appointment and a listing. You don t have to ask every question on the sheet, and you should know which questions are key for you. This will vary from one agent to the next. For example, if you like to impress sellers with a detailed MLS and title history of their home, you might skip questions such as When was your home built? or How much did you pay for your home? You know you ll find those facts out for yourself later. Dianna Kokoszka, president of MAPS, uses her lead sheet to meet several objectives: she assesses the sellers motivation, analyzes their behavioral style, and builds a relationship with them. She wants to find the root of their motivation, so she often goes three deep she asks them why is that important to you? three times after each question. She varies the wording, saying things like: How would that make you feel? What s important to you about that? How would that make your family feel? Would that ultimately give you the goal that you want? Once she feels like she has discovered the sellers true motivation, she can test it by recommending a particular course of action. Then, Dianna says, We find out if it s truly their goal; if they start backtracking, then we know this isn t their goal, and their motivation isn t really there. Dianna also has another important tip regarding prequalification. Don t try to handle objections during the prequalifying conversation, she says. Confront and deal with those in the actual meeting. Ron Wexler, a Mega Agent based in Homewood, Illinois, and other agents agree on this point. You are driving for the appointment, Ron says, so you need to acknowledge objections but postpone them for the meeting where you ll really show off your expertise. On the next pages, you ll see a sample lead sheet with the questions top agents use. However, you should feel free to customize so that it provides maximum support for you own listing consultation. The sample lead sheet includes one script in quotation marks the rest of the questions are prompts, not scripts. Remember that you should be responsive to your clients adapt your wording and emphasis to match their personalities. For example, dig for more information about the children if you are dealing with an I; keep your questions short and to-the-point with a D. Don t be afraid of extracting a high level of detail from an S. 18 v Keller Williams Realty, Inc.

23 Step 1: Lead Conversion Prelisting Lead Sheet Date: Contact Info Name: Address: Children s Names: Best Method of Contact: What times are best? Home Phone: Work Phone: Cell Phone: Spouse s Name: Spouse s Cell Phone: Fax: Motivation 1. Why are you moving? 2. Where are you moving to? 3. Are you already working with an agent? (circle one) Yes No If yes, have you signed an agreement? (circle one) Yes No 4. How soon do you need to be there? 5. Will you be receiving any corporate relocation assistance? (circle one) Yes No 6. Are you thinking of selling your home as a FSBO? (circle one) Yes No 7. On a scale of 1 to 10, with 10 being extremely urgent, how motivated are you to sell your house? (circle one): What will happen if you home does not sell in the required amount of time? DISC: House 9. Tell me a little about your house. 10. How many square feet is your house? sq. ft. 11. How many stories? 12. How many bedrooms does it have? 13. How many bathrooms? v Keller Williams Realty, Inc. 19

24 Seller Mastery 14. How many years have your owned the house? years 15. Have you done any updates or work on the house since you ve owned it? 16. Does it have a pool? (circle one) Yes No 17. Rate your home on a scale of one to ten. (circle one): What would make it a ten? Financials 19. How much do you think your house is worth? $ 20. How much do you own on your mortgage? $ 1st 2nd LOC 21. How much do you want to net on your home? $ 22. Are you up-to-date on payments? (circle one) Yes No 23. Are you the sole owner of the house? (circle one) Yes No 24. If not, who else is on the title? 25. Do you own any other real estate (investment properties, second home, etc.)? Tracking and Conversion 26. How did you hear about me? 27. What are three things you expect from a Realtor? Are you setting other appointments? Who? When? Set the Appointment Let s set an appointment to meet so we can fi nd out exactly what you want. This appointment should last 30 minutes to an hour. We ll go through the home selling process and talk about your expectations and your goals. Would or be a better time for you? Appointment Date: Time: 20 v Keller Williams Realty, Inc.

25 Step 1: Lead Conversion Prequalifying Able, Ready, and Willing A W R Redefi ning Ready, Willing, and Able As you complete your lead sheet, you are developing a picture of the sellers motivation. Research for the book, SHIFT, led us to assemble these factors in a nontraditional way. Instead of the old ready, willing, and able, we now refer to them as able, ready, and willing. Here are the definitions of these descriptors. We think you ll see why we ve changed to this new sequence: 1. Able It s almost always all about the money, and able relates to financing. How will this prospect come out financially if they sell at or near your recommended price? Will they walk away with proceeds from the sale, or is this a likely short sale situation where the seller is upside down and the sale will not produce the funds needed to satisfy their loan, or loans. 2. Ready Ready means they have a time frame in mind and have resolved their personal concerns about whether or not to sell their home. They have addressed and answered their wants and needs on this question. They have chosen to list and sell their property now. 3. Willing Willing relates to the seller s perceptions of the market, and any other considerations that might be telling them this is not the right time to sell. The seller may fear not getting as much money from the sale as they want or need. The able and ready but unwilling seller ends up just waiting. Look at the previous figure. The dark triangle in the middle represents the strongest prospects they are active sellers because they are able, ready, and willing to list. Clients who have all three of these qualities active sellers are hot prospects. They are ready for a listing appointment with you right now. Truth Your time is best spent with these able, willing, and ready sellers. v Keller Williams Realty, Inc. 21

26 Seller Mastery If they are not able, ready, and willing What do you do with sellers who do not meet all three criteria? They might be expensive! These are people who won t be selling a house right away, but will probably at some point in their lives become active sellers. The first thing is what NOT to do don t go on an appointment! Some agents will invest in an appointment with a seller who does not meet the able, ready, and willing criteria only because their experience has taught them how to pick out from the crowd lukewarm leads who they believe will produce business in the future, though not immediately. Agents don t always know what to do when they suspect their prospects aren t really interested in working with them. Do they pretend everything is okay? Confront the sellers? Storm out? Mega Agent Gene Rivers, Tallahassee, Florida, has a very straightforward solution. He says to the sellers, Mr. and Mrs. Johnson, let me ask you a question. Are you thinking about hiring an agent other than me, yes or no? Just tell me the truth. If they suddenly get jittery and red in the neck, he knows they aren t a sincere prospect. But Rivers doesn t get angry. He just says, I m serious, Mr. and Mrs. Johnson. I have no problem giving you a number for your home s value. I m happy you asked. It s not a problem at all. You don t have to hire me and it won t bug me. People ask me my opinion of value all the time who don t hire me. I m okay with that. I ll give you all my information and I can get done faster and go home, be with my family, and you ll get the information you want and you can go on and hire your other agent. My hope is if it doesn t work out, you ll consider me helpful and truthful and honest and direct and you ll hire me. With that attitude, Rivers can often convert an unwilling lead to a willing one. He reports, At that point, some sellers really open up and talk to me they suddenly realize that Bob from the bowling alley is not actually the right guy to hire. His approach lets him turn lukewarm prospects into clients. 22 v Keller Williams Realty, Inc.

27 Step 1: Lead Conversion The Cost of No Listing to Your Business Ron Wexler, like so many Mega Agents, has crunched the numbers in his business planning in this case, numbers that tell him the cost of a failed appointment, that is, one that does not produce a listing. The power of prequalifying has big dollar consequences for top performers. And, that phenomenon ripples right down the line to businesses of any size. Ron reveals, I know an hour wasted with a prospect who turns out to not be a motivated seller between a phone call and a failed appointment is many, many hundreds of dollars. In fact, lately that cost is more like $900. That s the cost in lost business because I spent the time with someone who will not produce a paycheck for me. Whatever this number is for you, it s definitely one to calculate and know. It s not only good business data it s a huge motivator to perfect your prequalifying process. Cultivating Lukewarm Leads Agents differ on whether or not they are willing to make an investment in future sellers when the eventual payoff is uncertain. The option is yours as to whether you make the relatively small investment to put them in your prospecting database and continue to pursue them. It s a judgment you make from experience a business decision about how best to use finite resources. You have choices, and your business plan will dictate how to handle these leads that will not produce an immediate appointment. Here are three options. Refer Them Michael Hilgenberg, agent and broker, Rancho Mirage, California, uses this tactic. He wants to weed out anyone who s not an active seller because, he says, when I go in on that appointment, I expect to get the listing. These agents operate efficiently by focusing all of their energy on active sellers. v Keller Williams Realty, Inc. 23

28 Seller Mastery Drip on Them Another option is to put future sellers on an 8 x 8 action plan or other drip followup system instead of referring them. If you have a phone number for them, your drip system should absolutely include one to two personal phone calls. Personal contact can be very effective when used in conjunction with mail and . One particularly effective way to keep in touch with future sellers is to sign them up for the BINS built into most MLS IDX systems today. Rick Geha Mega Agent and Master Faculty member, Fremont, California, has his IDX forward future sellers any listings that are within $50,000 of the person s estimated value of the house. Rick points out, Our MLS systems have this capability, but how many people are using that for sellers? It s a great way to keep the door open to working together at a later date, while saving you the time that you would have spent on a possibly fruitless listing consultation. See Them Anyway Once I identify that the prospects have an interest in selling, even if it is not in the near future, I try to get in front of them, even if they just want information and advice. Diane Kink Woodlands, Texas It s easy for newer agents to become overzealous in rooting out weak leads. Many top agents make a practice of courting future sellers because they feel that it produces business in the long run. Steven Gutstein, who runs his own team in Andover, Massachusetts, says he doesn t disqualify leads who are not currently able, willing, and ready. After all, they may be ready to sell down the road. And I certainly would like an opportunity to meet with them and hopefully convince them that I should be their Realtor of choice when the time is right. So even if they are not ready to sell right away, I still may be happy to meet with them. Market conditions can definitely impact these strategies. When transaction volume slows, the priority increasingly becomes spending time only with those who are ready to sell (and buy) now. Top arguments agents gave for following through with a meeting on a lead that will not list today: 1. Prospect is in a farm being actively cultivated. You want to dominate that farm, so you will want this listing when it is ready. 2. The prospect s home is in a price range or of a type that you have made a specialty of your listing practice. One final thought on this strategy, sometimes it produces unexpected results a listing sooner than you expected! 24 v Keller Williams Realty, Inc.

29 Step 1: Lead Conversion Probing Seller Motivation Appointment setting, including completing your lead sheet, focuses a good deal on understanding seller motivation. What questions must you ask to have the best possible understanding of seller motivation before you meet them for a listing consultation? v Keller Williams Realty, Inc. 25

30 Seller Mastery Close to Appointment You are attempting to plant seeds of closure at every opportunity without being presumptuous or obnoxious. The idea is to be nice to accomplish your goal. Steven Gutstein Andover, Massachusetts Techniques If you have classified the lead as one you want to pursue as able, ready, and willing or someone you think has the potential to become one soon all you have left to do is to set the appointment. Here are techniques top agents use that will help get you the appointment. It starts with the most obvious and frequently overlooked point ask in person. Ask In Person If the seller called you, they may well have some predisposition to list with you in the first place. Don t be afraid to cut to the chase and ask for an appointment up front. It sounds like you have a plan to sell. Why don t we set a time to meet tomorrow at 4:00 p.m. to sit down and talk through your ideas. Some top agents have others who work with them making appointments on inbound and outbound prospect calls. However your prospecting happens, these contacts should be personal, most likely by phone. They should not be impersonal by , for example. Demonstrate Your Expertise Immediately It s never to soon to start letting the prospective seller know what you know about the overall economic and market picture that will affect the selling and pricing decisions they make with you. Agents like Gary Gentry, Mega Agent and head of the Gentry Group in Austin, Texas, say they ve learned that there is absolutely no substitute for the value of strong, detailed knowledge displayed at first opportunity. It doesn t have to take long. The important thing is to select a few nuggets of local or regional economic data combined with some housing market specifics that make it clear that, as Gary says, data plus detail equals confidence. It s a display of confidence on your part that generates seller confidence in you right off the top. The absorption rate in your neighborhood is declining an average of 2 percent per month. I think you should act now if you want to sell. 26 v Keller Williams Realty, Inc.

31 Step 1: Lead Conversion Listen More Than You Talk While portraying confidence through knowledge and solid command of your scripts, be sure you show them that you know this relationship is going to be all about them, and not about you. Seek Agreement Throughout the listing cycle, you should be seeking win-win solutions, ensuring that you and the client are on the same page. If they have any reservations, you want to clear them up immediately before they become problems. Gene Rivers explains to sellers, When we stop getting agreement, it means you re not sure you want to go into business with me, or I m not sure I want to go into business with you. We need to resolve it right here. Otherwise, there is no point in me going on and there s no point in me coming to your house. At the same time, seeking agreement helps build in them the habit of saying yes to you. The more they ve said yes before you reach a moment of truth, such as setting an appointment, signing an agreement, or closing on the home, the more likely they are to say yes when it matters most. Gene points out another strategic value in constantly seeking agreement: it takes the pressure off of the final closing. He says, When we build it up to be a closing event, the pressure is on the agent, and on the client. There s a lot of pressure there that s why everybody is nervous about listing appointments. Constantly seeking agreement disperses the energy and tension around the final closing turning it into countless smaller closings throughout your dialogue with your client. The payoff is a smoother and more effective initial consultation and listing consultation. Gene says, Since the closing actually starts at the first phone call, when I get through the presentation, signing the listing agreement is almost an afterthought. They have already hired me mentally way before that. Relationship Questions Relationship questions are questions that allow you to seek agreement by understanding the sellers fundamental motivation. Once you uncover it, you can then align your approach to their motivation. You can say: Why is that important to you? What does that mean to you? What happens next? Gary Keller explains it this way: Instead of trying to help people go your direction, you find out where they re going. You re not going to be able to convince people to do something they don t want to do. Gary s right, of course. Once you know your seller s fundamental motivation, you can pull them through toward their goals by using other techniques. Trial closes, assumptive closes and tie-downs all can lead the client towrd agreement with you. NAR research over the years has consistently communicated that the real competition is getting to the table. Their eye-opening statistics show that approximately two-thirds of all buyers and sellers interview one agent, and half the remainder interview only two. Getting to the table first or second is what matters. Gary Keller, SHIFT v Keller Williams Realty, Inc. 27

32 Seller Mastery Trial Closes Trial closes are questions you use to test the water you genuinely want to find out whether or not you and the client are in agreement. The answer might not be yes. But if it isn t yes, you need to return to the issue until it is yes. Trial closes can be very transparent; for example, during the initial contact, you might say, We ve visited for a while today let me stop and ask you a couple questions to see where we are. Also called a minor close, a trial close often seeks a smaller decision from the client not the final commitment. Trial closes are tests of your growing alignment with the client. The answers you get are indicators of how close you are to the final close. Remember, that big win might come at any time. You ll learn more about trial closes and final close techniques when we cover securing the listing agreement itself. Assumptive Closes In an assumptive close, you make a statement based on the assumption that you will get the listing. Assumptive closes operate by aligning the client to your overall objective, which is to have them list with you. Some agents find assumptive closes too aggressive, but the key thing to remember is that you must demonstrate your responsiveness to their needs. So you can use assumptive closes to align them to your goal, but you also need to make it clear that you are also aligned to their goals. When we stage the home for showing, we ll want to put higher wattage bulbs in that fixture. Tie-downs Tie-downs are little throwaway phrases that get the seller into affirmative mode phrases like can t you? wouldn t it? and isn t it? These are questions whose answer is always affirmative. There s a risk inherent in tie-downs though. If you use them too frequently, your clients will notice what you re doing, won t they? And you ll sound like a robot, won t you? So it would be smart to use this technique sparingly, wouldn t it? If we market this thing right, we could have an offer on your house in less than a month. That would be terrific, wouldn t it? The Alternative Choice Close Give the seller a choice to meet on alternate dates and times you propose. Don t leave it up to them. Take command. Which works better for you, Thursday at 3:00 p.m. or Friday at 2:00 p.m.? 28 v Keller Williams Realty, Inc.

33 Step 1: Lead Conversion The Take Back Close This technique puts something out there to the seller, but relaxes the pressure a bit by suggesting the relationship may or may not work but it s well worth their while to find out. I ve enjoyed talking with you. To be honest, I don t know whether I can be of help to you or not, but I d be honored if we could meet to find out. The Negative-Positive Close This is another way of backing into the appointment a bit, compared with more aggressive stances. Would you be offended if I asked if we could meet to go over all this in a little more detail? Comparing and Combining Techniques Trial Closes Assumptive Closes Tie-downs How are we doing? Does that make sense to you? Would that be something you want? I can show you the figures at the consultation. Can t you? Don t you? Isn t it? Would that be preferable to you? Can you see yourself doing that? Does that seem like it would be a good outcome? I d like you to hide as many personal items and knick-knacks as possible while we re showing the house. We ll do a fourteen-point marketing campaign to sell your home. We ll get you the most amount of money for the least amount of hassle in the shortest amount of time. Wouldn t it? Shouldn t it? The various kinds of agreement-seeking techniques are not mutually exclusive. Agents often combine them. How you approach agreement depends on your personality and on your clients. If you are comfortable investing the time and you enjoy listening, then you may rely more heavily on relationship questioning. If you have a highly goal-oriented and dominant personality, you might prefer to use more tie-downs and assumptive closes. Either way, your conversation with the sellers should be based around questions that allow you to move the two of you toward agreement. If you ve been seeking and getting agreement throughout the conversation, setting an appointment should be a natural, worry-free outcome of the conversation. For example, Linda McKissack, Mega Agent from Denton, Texas, concludes with a strong assumptive close. She asks, And when would be a good time for us to come out and get your home on the market? Others simply ask, I d like to come over and meet with you to discuss this in more detail. Would Monday afternoon or early Tuesday evening be better for you? v Keller Williams Realty, Inc. 29

34 Seller Mastery Steven Gutstein chooses his words very carefully to disarm his potential clients and make them feel comfortable. He uses words and phrases like invite, free, and no obligation to keep the clients from feeling pressured. His script goes, I would like to invite you to meet with me for a free, no obligation consultation, at my office, that will last about forty-five minutes. At that time, I will take you through the home-selling process, I will get familiar with your expectations and your goals, and I will give you the opportunity to be comfortable with my team so we can represent you is that okay with you? Then he suggests some meeting times that work well with his schedule. Six Simple Steps to Close If I can get to them first, I feel confident they ll probably list with me and other appointments will be unnecessary. Gene Rivers Tallahassee, Florida These six simple lines are some of our favorites from Dave Jenks. He and Gary Keller have often used them as examples in their training sessions with agents. This example is intended for a conversation with someone in your Met database, a past customer but the steps can be adapted to other types of leads as well: Introduction: Hello, this is from. Empathy: I hope I haven t reached you at a bad time. Purpose: This is a business call and I won t take much of your time. Primary Questions: How s the house I helped you purchase several years ago working out for you? Follow-up Questions: Are you considering a move? or Do you know someone who is considering buying, selling, or investing in real estate? Call to Action: Ask for the appointment, offer alternate days and times. 30 v Keller Williams Realty, Inc.

35 Step 1: Lead Conversion Criteria for the Appointment When setting the appointment, there are several important issues that you need to take care of at the same time. Right now, we will assume the appointment is to take place at the property the seller is going to sell. Later, we ll get into some important variations in, and refinements of, the where of listing appointments. During Daylight Hours You ll be better able to assess the property in the daytime during the winter, ask your clients to leave work early if possible and meet you at 3:00 or 4:00 p.m. With ALL Decision Makers Make sure that all decision makers will be present at the appointment. Building rapport first with one individual, then with another is awkward, especially if the people involved have disagreements about selling the house. In addition, some personality types resist ideas that they did not come up with themselves so the fact that one partner has already agreed with you can actually be a reason for the second person to refuse to work with you. Know Who Your Competition Is You also need to find out if you are going to have any competition. When Dianna Kokoszka finds out that her prospects are going to be interviewing other agents, she uses these similar dialogues. Great, when will you be meeting with them? Do you mind if I ask who the agent is? Her strategy is to make her appointment before strong agents and after weak agents. Strong agents can take the listing before she even has the chance to meet with the sellers, so she needs to hold her appointments before them. If she follows weaker agents, on the other hand, she ll look that much more impressive in contrast to them. Knowing who your competition is can also dictate the contents of your prelisting package, coming up in Step 2: Prelisting. v Keller Williams Realty, Inc. 31

36 Seller Mastery Getting to See the Seller First, or Last? At this point, you should assume you are trying to win the listing away from other competing agents. Naturally, they are trying to do the same to you. It s extremely important to ask about the seller s interviewing plans. They may or may not give you the straight scoop, we ve learned. For this reason, if Dianna Kokoszka can t see the sellers first, she asks her potential clients to promise her that no matter what any other agent may tell them to do, they will give her the chance to get in front of them and do her consultation. Most agents we talked with in our research acknowledged that, while they may have a preference about being first or last in these competitive situations, the reality is the seller is in control. Dianna asks the sellers: So I can count on you to give me your word that, no matter what happens and what anyone says, you are still going to allow me to meet with you, is that correct? Dianna doesn t stop there. She checks to make sure that they are congruent about rejecting agent pressure. Just out of curiosity, if an agent says, I ll give you a lower commission if you sign right now, would you be inclined to sign with them or would you be inclined to keep your word and meet with me? When they agree that they would keep their word, she gives the prospective seller a script to help them. She suggests that if another agent does try to get them to sign a contract, they can just say, No, I have given my word to Dianna to meet with her, and I am going to keep my word. If I like what you have to say better than what she says, then I ll call you back. This technique, which helps shape people s behavior by having them imagine themselves in a critical situation, is called future pacing. It makes sure that the sellers are prepared to resist overbearing agents. The Getting to Know Them Strategy Many agents say they like to have more than one conversation with the prospect before the appointment. One technique for doing this is to set a date, time, and place (call 1) which you then call back to confirm (call 2), followed by a final reconfirm as you head to the location (call 3). This strategy has several advantages: Get to know the prospect better than any competing agents do become familiar to them and be seen as reliable Create multiple chances to confirm the appointment time and place to ensure there s no confusion Detect whether there may be some change of heart by the prospect that might make the appointment not worth your time 32 v Keller Williams Realty, Inc.

37 Step 1: Lead Conversion The Confi rm the Appointment Strategy Other agents make multiple calls before going to the appointment, with a somewhat different motivation. Sharon Hamilton has been an agent since 1989 and heads a family team in Santa Rosa, California. She points out that her policy of making a second followup call to her appointment, before going, is to root out sellers who have either: 1. Changed their mind, or are waffling about whether to go through with the appointment, or 2. Not been truthful about their financial or other personal circumstances, which may mean the house won t make a good listing. Perhaps they are really upside down in their home and were reluctant to divulge it. Maybe they are having a family disagreement about motivation of timing, the sands have shifted, and they just aren t ready after all. Either way, Sharon points out that a final confirming call all too often saves her time, energy, and gasoline that would have been spent on a pointless trip and a dead-end meeting. Leads to Appointments Ratios Many agents ask, How many calls should I expect to be making to get an appointment? There are a number of variables. But, assuming you know your appointment-setting scripts well, and are working continuously to improve your performance with them, here s what one top source said. Keller Williams Realty International MAPS coach Tony DiCello, Austin, Texas, shared his experience with lead conversion ratios. Tony should know he spends many hundreds of hours each year coaching agents on accountability to lead generation and appointment setting. v Keller Williams Realty, Inc. 33

38 Seller Mastery Tony breaks agents into three categories: Agent Experience Level Contacts Made Appointments Set New-1 st Year Years Years 35 1 And the goal for appointments to listings taken? Tony says MAPS coaches feel an 85 percent success rate is a realistic number for practiced agents. That number meshes well with other ratios top agents shared in their interviews. Keep It Personal You Do the Asking There s no overestimating the importance of great lead conversion skills and performance to a real estate practice. In talking with top agents, many of whom turned over lead conversion calling to team members in recent years, we learned these leaders are turning that trend around. As your business grows, the last thing you should ever give up is your personal involvement in lead conversion, cautions Bruce Hardie. Lead conversion goes a long, long way toward making or breaking your business. These agents who are going back to basics in their business are a model for you. You are the closer. Don t give that role away. It is the lifeblood of your business. Gary Keller still remembers his very first listing appointment with a FSBO a wonderful man. Gary recounts, I owned a house a few doors down from where he lived and was selling it himself. I called on him and, during the connect stage, he out of nowhere just asked me, Gary, what would you charge me to handle this for me? I was flabbergasted. So, I told him, took the listing, sold it in one week, closed it in about a month and have never ever had anyone just ask me that way again! For the rest of my career, I ve had to do the asking. And unless he s still out there buying and selling so will you. Gary Keller, in SHIFT 34 v Keller Williams Realty, Inc.

39 Step 1: Lead Conversion How to Get More and Better Appointments Have you been thinking about how to improve your leads to appointments ratio and how to get more signed listing agreements from those appointments? If so, there are a number of things to work on. Jot down thoughts about how to make these things happen v Keller Williams Realty, Inc. 35

40 Seller Mastery Objections Delay, Object, or Resist KWConnect As you go through the initial call, be on the lookout for anything that might prevent you from getting to the next step: a delay, an objection, or resistance. At this point, we ll examine situations and some scripts that apply mainly to the initial conversation with a prospective seller. Later, in Step 3: Listing Consultation, we ll look at objection handling in some more detail. Finally, there is a KWConnect video, Handling Listing Objections, associated with this course that shows you a listing master handling even more situation-specific objections. By meeting your clients objections you can strengthen your relationship with them. In that way, something that can seem like a barrier actually becomes a door to a better business partnership. First, some definitions: According to Dave Jenks, Keller Williams Vice President of Research and Development: Delay is something like Let s talk about this later it defers making a commitment. Objection is usually phrased in words like We ve got a problem with this. Objections are active refusals to move forward. Resistance is that feeling that they re not moving forward enthusiastically. You re pulling baggage with you. It s not that they re not going to the next step, but you re pulling them to the next step. Jenks says that you can think of it as a passive kind of objection. Refusal to Give Information One common objection during the initial contact phase is the refusal to give information. For example, some sellers don t like to tell agents how much they want for their home. Dianna Kokoszka s solution is to get the same information indirectly. When sellers tell her they don t want to share their target price with her, she uses a dialogue similar to this. Excellent! Just out of curiosity, how much do you owe on your home? And how much equity did you want to pull from your home? Then she ll add the equity to the amount they owe and get an idea of their price range. As Dianna points out, There are different ways you can ask the same question and get the answer. 36 v Keller Williams Realty, Inc.

41 Step 1: Lead Conversion Objections Related to Commission Another common objection at this stage is commission. Many sellers insist on discussing commission before setting an appointment. Research for MREA Team: Listing Specialist suggests that you defuse this objection. I understand how you feel, and most sellers want to net the most money possible. I ll tell you what, why don t we get together, get clear on your hopes and goals, and put a plan in place to get them accomplished. Then at the end of the meeting, I ll ask you what YOU feel our services are worth. Would that be okay? If we agree, we ll get that plan launched right away. If we disagree, we ll discuss it and the worst thing that can happen is that you might get a few more ideas that will help you net more money faster. Will that work for you? Objections Related to Media Coverage Media scrutiny of the state of real estate markets is more intense than ever before. A phenomenon in lead conversion these days is listening to prospects cite the latest headlines from newspapers, TV, and the Internet. Terry Moerler, a Mega Agent in Thousand Oaks, California, says it s the biggest change she s noticed in the appointment-setting work of her team. We have to be prepared, knowledgeable, and articulate about all the facts of our markets today. Even then, many people are sure they know more than we do at first, anyway. Gary Gentry says addressing media-driven objections has come more easily with increased focus on attention to detail to becoming a true market expert and local economist. Gary likes to say to fearful potential sellers, I believe you re going to make a good decision when you have all the facts. My job is to give you all the best and latest data about our market so you ll feel good later about your decision. Is that a fair statement? Gary drills his small sales group on market knowledge. People who work for top agents are expected to know their market data, and stay on top of changes from week to week. How many homes are on the market in town? How many sold last week? What is the absorption rate (rate at which inventory is selling) currently? Is the rate headed up or down? The bottom line is this: top agents agree that your ability to be smart and to demonstrate savvy about market data and trends goes a long way toward establishing the credibility you ll need to win the listing, and to giving top quality advice later, as the listing continues. v Keller Williams Realty, Inc. 37

42 Seller Mastery Objections Related to Commitment I love the personal interaction, and I am a huge follower of the DISC assessment in my work with sellers. I feel a lot of my success comes from adapting my communications and presentation to them based on what I experience with them in the first, more informal visit. Terry Moerler Thousand Oaks, California Top agent Renee Rogers of San Antonio, Texas, reassures skittish clients by emphasizing that the listing consultation is a free, low-pressure service. If you re not real sure right now, it s no obligation; I ll come out and I ll spend some time with you. And it s really just a time for you to interact with me and me to interact with you, and make sure we re on the same page. And then if we decide we want to do something more, we ll be there to make, you know, further arrangements. She says that this script helps overcome three different seller inhibitions: They don t want to bother anyone until they re ready to make a commitment. They don t want to make a commitment until they ve had time to think about it. 3. Even after they ve thought about it, they re still nervous about making a commitment. The key with these kinds of clients is to frame the listing consultation as a visit, not an interview. Rogers does these kinds of consultations as a two-part appointment. On the first appointment, she focuses on building rapport with the clients they don t have to worry about questioning. They don t have to worry about, oh what do I say, what shouldn t I say. Now it s a visit. Rogers adds, After one of these visits, I haven t yet had anybody turn me down for the follow-up consultation and market analysis. Reluctant FSBOs If you are working with a reluctant FSBO and you ve had a good year, you can customize Linda McKissack s script with your own date. We sold twenty-five properties in the amount of time your home s been on the market. I d love to share with you how we ve done that. As McKissack observes, that s a sexy, provocative kind of thing to say to someone. If you can t persuade the sellers to make an appointment with you, the key is to follow up with them. Put them on an 8 x 8 action plan and call periodically until they are ready to meet. Top agents like Sylvie Begin, Ottawa, Ontario, point out the effectiveness of alerting FSBOs to the cost of trying to sell without a professional. The cost in time, agony, and stress all adds up to a lot not to mention the fact that they ll be continuing to pay money into a property they no longer want, Sylvie says. Your job is to make sure they re thinking about the pain in that. 38 v Keller Williams Realty, Inc.

43 Step 1: Lead Conversion Begin sees her FSBO leads as patients in need of triage, people who are hurt by their choice and need a doctor like her to diagnose what is not working and why and then offer remedies. Over a number of years, her success in winning appointments and listings with FSBOs has become a main driver of her business. I don t take them all by any means, she points out. I get about one listing for every six FSBO appointments and I probably call at least 20 of them a week, she says. She s proud of the fact that her successes with these self-declared sellers have turned them into a major part of her Met database, and a big source of referrals going forward. Objections From Expireds Like FSBOs, sellers whose listing has expired are prospects who have already made a public statement about their desire to sell. They ve been on the market through MLS with an agent, and their home has not sold for whatever reason. It might have been priced incorrectly, marketed poorly, or there may have been communication issues with their listing agent. At the end of the day, these people were purposeful sellers in the recent past, but may be suffering a hangover from a bad experience. Your challenge is to refresh their enthusiasm and their belief that they can get their home sold after all if they work with, and listen to, you. Bruce Hardie offers this sample script for approaching expired sellers. He probes to find out as much as possible about their last listing experience, as quickly as he can. He asks questions like these: Do you still need to sell? Where are you moving to, and when do you need to get there? Why do you think your property did not sell? Right now, we re selling properties a month. Let me show you what s happening right now with my sellers. I promise I won t waste your time if you think I can t get the job done. In many markets, listing agents have found they can build a great business by getting disappointed expired sellers back on the market at the right price and with first-class communication and service. v Keller Williams Realty, Inc. 39

44 Seller Mastery The Appointment: How and Where As promised in the guide, where our research has encountered some alternative views of how to handle an important listing cycle step, we let you know the alternatives and the arguments or rationales supporting them. Where the listing appointment takes place, and whether it happens in one or two parts are both areas where top agents practices vary. It s fair to say most agents we talked with favor a single listing appointment that happens at the seller s home. But, other top producers feel that a two-step listing appointment is best suited to their business plan and their personal style with sellers. If you have not set a policy on these important issues in your business, top agents suggest you try alternate ways. A little experience, they say, will quickly identify the approach that s best for you. Two Schools of Thought: One-Step vs. Two-Step KWConnect In this course our listing presentation outline, and the KWConnect video Listing Consultation are built on the model of a single listing appointment at the seller s home. However, there are agents who prefer to use a two-step listing appointment. The two-step model includes a first appointment at the seller s home where the agent: Has a get-acquainted chat with the sellers, often using the DISC profile to assess the customers personal style Tours the home to observe and note important factors impacting the sales price to be recommended Makes note of any staging issues that will be part of the final agreement This first appointment may be an abbreviated one. Dianna Kokoszka is an advocate of the one-step approach, but she points out, If you really need to know some property details before your meeting, I suggest asking the seller to leave a key for you so you can take a quick ten-minute look while they are out. Don t meet them then; meet them to take the listing. Peggy Pitts, Oklahoma City, Oklahoma, says listing experience has a lot to do with which method is better for a particular agent. If they haven t seen the house, then it makes it tough to walk in and think on your feet. Some people can do that, and my top people can do that without a problem because they have done it so much. But most people can t or won t. 40 v Keller Williams Realty, Inc.

45 Step 1: Lead Conversion Terry Moerler is an agent who uses the two-step approach. Terry acknowledges that part of her decision to go this route with sellers is a function of her personal style, and part of it relates to the amount of business she wants to have. Terry also acknowledges that she has enough time to build her business with twostep appointments because her business model has been based on a very healthy transactions a year. If I were a super mega aiming for 300 or more transactions, this approach would break down on the time requirements, and I understand that, she explains. My listing contacts are largely coming from my Met database, from past clients or referrals from past clients. I m almost always working with people that I have an established personal connection with of some kind. To clarify the point that business structure impacts appointment strategy, Michaelann Byerly, a listing leader in Tampa, Florida, says, I handle all the listing appointments in my business, with a ton of help from a small but terrific support staff. I just wouldn t have time in my life for two-step listing appointments, so everything is built on prequalifying in the appointment-setting phone call and prelisting packet. When I get there, I believe they will close then and there. She adds, One-step vs. two-step in my mind is a function of your business plan. When I went from being Team Leader in Florida back into selling, I was a veteran agent without a local database, so I turned to working almost exclusively with FSBO and expired prospects. I wanted my team small and I felt very confident. I don t have time to do the two-step appointment and I don t feel the need given my target is customers who ve already tried to sell. That s my situation, and it s been working for me. Here s another example: Agents who work a geographic farm intensively will also be better equipped to make a one-stop consultation they already know the area and are probably familiar with the house itself and many other very similar ones. On the other hand, some agents who normally prefer a one-step consultation will do a two-step for unusual properties homes that aren t in subdivisions, or are in special locations, like oceanfront or lakefront properties. High-end homes are often so customized that a two-step consultation process is best. Marvin Jolly, a Plano, Texas, agent, argues, It s so important to not only see the amenities and the features in the home, but also just get an idea of how the home is going to show before pulling together your pricing strategy. v Keller Williams Realty, Inc. 41

46 Seller Mastery One- vs. Two-Step Wrap-Up In summary, there are a number of business factors impacting which way agents choose to go in the one-step vs. two-step listing appointment discussion. These factors include: Volume Your business volume Leverage The nature and training of any support staff or other agents working with you Confidence The degree to which your brand name establishes you with high credibility in your market Competitive Intensity The quality of your local competition in the listing business Both one-step and two-step consultations have strategic advantages. Advantages of One-Step Presentation Saves you and the client time Opportunity to close now. You get an answer right away rather than risking letting competitors into the process with the seller Creates a sense of urgency Arguably puts a little more pressure on qualifying and evaluating the client up front in the appointment-setting step Advantages of Two-Step Presentation Gives you more time to research the home and adjust for details you personally observed in the first appointment Gives you more time to revise your presentation to fit their DISC profile May be better suited to working with Mets or strong referrals that come from Mets Our research does not provide a totally clear answer on this choice, but rather points out a decision you need to make in your own business. If you re not sure, work with both approaches and let experience be the teacher try, test, and adjust as other successful agents have done. 42 v Keller Williams Realty, Inc.

47 Step 1: Lead Conversion Where to Close the Listing It s become an assumption over the years that listing appointments are expected to happen in the seller s home. But our research is surfacing a trend that sees agents selectively and systematically moving listing appointments to their office instead. Agents point to the controlled environment and the ability to power walk clients through the office and its resources as their motivation. While most everyone visits the seller s property to learn the important property details that only a personal visit can reveal, these agents bring the seller to their office to get the listing agreement signed. Martin Bouma, the top agent in Ann Arbor, Michigan, has made this a practice in his business. About 60 percent of my sellers end up signing in the office, Martin told us. Martin feels he s had success with this approach because the office is an environment that s his to control. He tells his sellers that the initial appointment is a consultation that allows the prospect to meet the team and see how the office is set up. By the time he goes to their house to discuss the CMA, he knows he is dealing with committed clients. The other 40 percent of appointments that happen solely at the seller s property happen that way because the seller has scheduling challenges, with children for example, that make getting them into the office very inconvenient. As with others who bring clients to their office to sign the listing agreement, Martin acknowledges that a strong reputation, built in one market over a long time, definitely empowers him to run his listing process this way. Terry Moerler also practices the in office closing appointment whenever possible. While she s firmly into the two-step method, she also likes getting the seller into her world for the close and signing. She likes to create the relationship foundation at the seller s home, collect the property specifics there, then move to the office appointment to close the business. John Hatcher, a top agent in Portland, Maine, also gives the second part of his consultation the market analysis at the office. For him, the office environment is just more conducive to business. When people come into the office, they can see how professional the office is and that things are buzzing here at our center with over 200 agents now. And as you can imagine, if people are ten minutes late, I m on the phone getting work done instead of sitting in someone s den with the kids running around and the dogs jumping on you. It just brings the whole meeting to a different professional level. I have a nice big flat-screen monitor in my office, and I love to get sellers in front of it. That s where I show them all the final CMA data, and it tends to rivet their attention on the numbers. Plus, it s my territory, and I feel more in control of the environment for the meeting. Terry Moerler Thousand Oaks, California v Keller Williams Realty, Inc. 43

48 Seller Mastery Other agents who ve always closed all their listings at the seller s home are rethinking this. Some have very special reasons for considering it. Debbie Tufts, a Mega Agent with a luxury homes practice in Duluth, Georgia, says she s been thinking about making a change. As part of rethinking a number of things about how I do my business, I m thinking I ll start bringing the sellers into my office to hear my presentation and to sign, she says. I feel confident in doing that, in part, because I know the neighborhood I work in so well. I live in the neighborhood and the inventory I need to know is really about 900 homes that I ve become well-acquainted with over the years. With fewer distractions we have their complete attention here in the office. Chris Heller Encinitas, California Chris Heller, Encinitas, California, prefers to set the listing appointment in his office. We re successful about 50 percent of the time, Chris says. Usually, if it has to be in their home, it s because they simply can t make it in to our place, or sometimes they may mention some unique characteristic of their home that we just have to see, to give them the right price reading. The results support Chris motives in pushing for in-office listing appointments. Our close rate is higher in our place than in theirs, he says. We close maybe percent in the home, but in our office it s more like percent. Matt Fetick, a growth agent in West Chester, Pennsylvania, is another agent who told us he s in the process of reconsidering where to hold listing signing appointments. I m thinking I will start bringing them into the office, Matt says. I can see some clear advantages in it. Your situation may well be very different from any of the agents referenced above. Still, the discussion about where to close will continue and, as with the one-step vs. two-step listing appointment, answers will vary depending on your business plan, your position in the market, and other factors. 44 v Keller Williams Realty, Inc.

49 Step 1: Lead Conversion Appointment Setting Accountability This subject is covered in detail in Lead Generation 36:12:3, but it bears mentioning again here. In our research, time and time again, we found agents holding themselves and anyone else prospecting with, or for, them accountable for both calls and results. Chris Heller is well known for his approach to appointment setting. Chris office design includes some stand-up booths designed specifically for agents making prospecting calls. The booths keep the agents on their feet helping them stay alert and energized for their calls. They also include a mirror so agents can be aware of their demeanor and expression before, and during, their prospecting and appointment-setting calls. Our people report back on their prospecting and appointmentsetting activity twice a day. Chris Heller Encinitas, California v Keller Williams Realty, Inc. 45

50 Seller Mastery My Action Plan Don t put away this training guide without developing a plan to put what you have learned into action! Review the key challenges listed below and assess your current ability to meet each challenge on a scale of = I have no experience with this. 2 = I am not very good at this. 3 = I am pretty good at this. 4 = I am confident with this. 5 = I am an expert at this. For any rating of 3 or below, write down the action steps you will take to increase your understanding, build your skills, develop your confidence, see greater results, and take home more money! Be sure you prioritize your actions. Keep in mind that the dollar-productive activities are the ones you want to perfect before any others. Challenge Rating Action Steps 1. I track my lead conversion rate as part of my overall lead generation. 2. I am sure my appointment-setting scripts include prequalification questions the answers to which will save me time and money. 3. I consider implementing alternative appointmentsetting ideas, like small group appointment-setting events where licensed people working with me can support one another in getting more appointments. 4. My appointment setting scripts include questions and language that help me understand the client s style and personal preferences in ways that will help me win their business. 46 v Keller Williams Realty, Inc.

51 Step 1: Lead Conversion Challenge Rating Action Steps 5. My appointment-setting scripts include language that creates impressions and sets expectations about the quality of my advice and service and my position, and Keller Williams position, in the marketplace. 6. I evaluate my lead closing/ appointment-setting scripts to be sure they include best practices from around the Keller Williams family, and from other sources. 7. I capture leads and respond quickly and effectively. 8. I use an effective lead sheet. 9. I assess sellers based on Able, Willing, and Ready. v Keller Williams Realty, Inc. 47

52 Seller Mastery Additional Resources Further Reading SHIFT: How Top Real Estate Agents Tackle Tough Times, Gary Keller, Dave Jenks, and Jay Papasan Marketing Your Brokerage, Realtor Magazine Online, web address Analyzing the Business Climate, Realtor Magazine Online Factors That Could Set Your Company Apart, Realtor Magazine Online Accountability Tools MAPS Coaching Programs Converting Buyers to Dollars Language of Sales Scripts and Dialogues KWConnect Seller Mastery: Listing Consultation Seller Mastery: Lead Conversion 48 v Keller Williams Realty, Inc.

53 Step 1: Lead Conversion Next Step Your Progress Introduction Step 1: Lead Conversion Step 2: Prelisting Step 3: Listing Consultation Step 4: Servicing and Marketing Step 5: Offers and Negotiations Steps 6 and 7: Contract to Close and Postclose Systems Putting Mastery to Work Done Read this next! v Keller Williams Realty, Inc. 49

54 Seller Mastery Notes 50 v Keller Williams Realty, Inc.