Success tips

Negotiation tips and tactics

2 Comments

There are three important areas for Realtors to be successful in to survive in any market.  First and foremost is lead generation.  Without lead generation, you can have all the skills, knowledge and ability to be a success but without clients, you won’t make a penny in the business.  The next one is being solution oriented and solving problems for your clients.  When you resolve issues, you become a valuable resource to your clients and will receive leads on an ongoing basis.  And the third key area is negotiation and that is what we are going to cover in this blog today.

Let’s review some of the important pieces of the puzzle to negotiating successfully.  To know where we are going we must know where we are coming from.  First, start by analyzing previous negotiations.  What went well, what didn’t & why.  What did you learn?  What did your clients learn?  Review this with your new clients to set expectations of success in their transaction.  By having the proper expectations, your road to a successful end is much more likely to happen.

Next, assess your client’s situation prior to entering the negotiations.  Do your research.  Ask lots of questions because information is critical to successful negotiations.  Who is involved?  What is your strategy?  Where will you give concessions?  What are your best alternatives?  Where do you want to end up?  Also, through your research determine, do we want to work with them?  What is the motivation of the other side?  When do they need to move and why?  Who is the other party involved in the transaction and what is their background?  Discuss what your options are with your client?  Determine the “what if’s”.  Then listen and take notes. 

Also, remember, it is just as important to know what your side wants as much as it is to know what the other side wants.  Do you know their position as well as your own?  What are their objectives?  How do you get the information?  Ask the agent or lender about the client and their situation.  Also, check them out on the internet, Google, social media outlets, DPOR and public records are just a few places to begin.

Who and how do you control the negotiations?  The person who asks the most questions and gathers the most information and can build the bridge to a successful end.  Plan your questions according to the situation so you can create win-win negotiations.  Let’s review how you create win-win negotiations.  Find common ground and build upon it to get the common goal of both parties.  Discuss all options available to both sides to get resolution.  If you come to a stall in the negotiations review how close you are to the final outcome, review how you got how you got where you are and why it is important complete the negotiations.  Use your notes and remind the other side it is better to negotiate than not negotiate to get resolution on the issue creating the stall.  Convey flexibility in one area over another.  Ask other side to restate their position, gain understanding and restate your position as well.  If the other side asks for a concession, say “yes if”.  Focus on the issues at hand and not positions and be tough on the issues but not the people involved – separate them.  Always seek to understand and be understood.  Remind the other side of the mutual benefits of resolving the issue.  Use we – not us and them.  Ask the other side, “What would you do?”  Never narrow it down to one issue – keep the discussions open and fluid.

What to avoid:  getting confrontational; giving up walk away power or getting to the point of no return;  giving up control; negotiating against yourself;  improper use of concessions;  assuming the other side wants the same thing as you; missing out on clues (good cop bad cop, flinching, stalling, red herrings, nibbling, higher authority, hot potato, any others, etc.); getting to bottom line too quickly; negotiating with the wrong party; negotiating price too soon and too quickly; not explaining your value – up front;

In addition to what we mentioned, we also need to strive for in negotiations are to keep an open mind – think outside the box.  Focus on what’s right not who’s right – it’s not personal.  If negotiations boil down to one issue – it’s a win lose…stay focused on give and take scenarios.  Answer questions with questions to determine what they really want.  Don’t pre-negotiate with yourself and don’t answer questions that weren’t asked.  Keep your ego in check.  You have more power than you think you have in the negotiations.  Put things in writing so the issues are clear.  No is just an objection that you need more clarification on – ask why they are saying no.  Start high or low depending upon the situation you are encountering.  List your assumptions on what will happen and the scenarios that will happen as a result of each option.  Build a relationship prior to beginning negotiations with the other side – by having a relationship, the transaction will go more smoothly.  Communication is the key – ask permission to ask questions.  Never say yes to the first offer and know the reason why.  Give in diminishing chunks.  Always give the impression you have other alternatives and this isn’t the only choice to gain leverage.  Keep your client’s information confidential.  Realize your strengths in your situation.  After making offer, remain silent.

Practice negotiations all the time and in different situations.  Also, it is also critical to rehearse with an accountability partner prior to presenting your offer to the other side as you need to be sharp with your presentation skills.

By exercising and utilizing these tips and tactics, you will have great success in real estate.  Get it?  Got it?  Good!

What have you done for you lately?

Leave a comment

Many real estate agents experience the roller coaster ride in their business and their bank accounts as a result.  Why does this occur?  They take their eye off the prospecting ball.  They get too wrapped up in their deals.  They talk to everyone about what is happening in each of their deals and why there are problems, issues or mention what the other agent is doing to them in the transaction.  In today’s market, virtually every transaction is tough because of the other agent, your client, their client, an appraiser, home inspector, pest inspection or whatever the case may be.  Guess what, get over it, put your nose to the grindstone and get busy working to resolve your issue then work on your prospecting.  Spend your time providing excellent customer service to your current clients by being solution oriented then get back to the basics and prospect for new clients to serve and the roller coaster ride will end.

Success is contagious and so is negativity.  Make a concerted effort to be positive and optimistic and resolve people’s issues and success will follow.  We get paid the big bucks to solve problems not talk about them.  Think about your conversations.  If they are repetitive and negative, stop!  Think about the issue and how to fix it.  What are the options?  What are the outcomes of each option?  What is the best solution for your clients?  Lay it on the table, discuss them, decide which is best for them and move on.  It is a good feeling to get results for others.  Also, hearing success stories about helping clients is a better one to tell and gets others motivated to do the same.  Again, success is contagious!

Once you realize that you need to change the way you approach deals gone bad, agents gone bad or clients gone bad and you have now made the decision to stop harping on negative issues and start working on your business, let’s discuss getting back to the basics of staying in front of your clients through notes, calls, pop-bys and other avenues and growing your database. 

As we all know, there are many ways to “touch” your sphere of influence but one of the best ways we have found to give back, grow our database and become involved is through our charitable efforts.  We combine our charitable events with client appreciation events.  As the saying goes, the more you give, the more you get.  Find a charity you have an interest in and see what it takes to get involved then host an event to support the cause.  As you involve yourself in the process, get creative with how you can attract people to attend your event, participate and give so you maximize the results for your charity of choice. 

We have two great events to facilitate our spirit of giving – the in office putt putt tournament, and Breakfast with Santa for Toys for Tots.  It is rewarding, gets you in front of your clients and you get satisfaction out of helping others.  It requires thought, energy, effort and planning but it is worth it in the end. 

Stay positive, focused on excellent service to your clients and get creative with contacting your database to get your business back on track by giving back and the results will follow.  Get it?  Got it?  Good!

How will you make it happen?

Leave a comment

In today’s business world we all have similar challenges – we want more sales, more clients, a larger database, more profit and the question is, “how do we make it happen?”  In my opinion, it all starts with relationships.  How you treat others, how you speak with others, how do you interact with others are all actions that you take every day that require continuous analysis.  Once analyzed, take the time to enhance and improve on these important skills to be successful. 

The analogy of – people do business with people they know, like and trust is an adage that goes back several decades.  What must you do to have this happen to you? 

First, be an excellent listener.  Be engaged, my eye contact, lean forward, and take notes – be interested, not interesting and people will respond in kind.  Remember their name – it is music to their ears. 

Next, avoid the “me” monster – ask questions, pause before responding, find common ground and build upon that common ground.  Take extra time with people, don’t rush people, ignore people or treat them poorly – this will have a long lasting negative impression upon them.  Remember, it is all about them – not you.  You want them to feel good about the interaction with you and want more.

Also, remember to be observant – recognize their style of dress, artwork in the office or home, memorabilia, pictures of places, friends or family, the car they drive, etc. that will give you clues about how they are as individuals.  These clues about who they are and what they enjoy will help you build upon your relationship with them.

Compliment them when appropriate.  People love to receive accolades for a job well done or on their personal appearance or style.  Be careful not to overdo it or it will come across as insincere.

Be positive and keep an open mind to learn something new every day.  By learning something new, you get the opportunity to teach or help someone else with their situation.

If you take these skills, couple them with dressing the part and build upon them with what my friend Hilary Fordwich calls the 5 C’s you will gain more business, get more referrals, have more profits and in the end, enjoy more success.  

Her 5 C’s are:

Communication.  Buy in your language, sell to them in theirs.  Never start emails with I.  Use their name often.  Be visual versus internal.

Candor.  Be open and honest.  If you make a mistake, admit it.  If you don’t know something, tell your client you don’t know but you will find out.  Be a straight shooter.  Do not use the following terms  – to be honest with you, let me be frank with you or to tell you the truth.  Being honest builds credibility and trust.

Concern.  Empathize with your clients.  It is about your clients and their needs not yours.  Show you truly care by going above and beyond the call of duty.  Understand their situation and where they stand.

Competence.  Know how to tailor your service to meet their needs.  Know your business, its trends, and the numbers and know how to communicate it with your clients.

Connection.  Find common ground to neutralize differences.  Ask the right questions both personal and professional ones to learn more about them.

The more you rehearse these skills, the more you incorporate them into your daily routines, the more you and your business will grow.  Get it?  Got it?  Good!

 

What are your opportunities?

Leave a comment

As I sat at home and watched the Capital’s game on Saturday night it reminded me of the fact that you can’t rest on your laurels.  The Caps won the President’s Cup for the best record in the NHL but they are down in the series to the Canadiens 1-0 and were losing, at that time, 2-1 in the game when I got inspired to write about the topic of staying on top of your game. 

The game reminds me of how in business, the skill set, knowledge, determination, perseverance and fortitude that brought you success today won’t keep you on top of the mountain tomorrow.  You need to stay sharp, look for new opportunities, continue to learn, make better contacts, improve your networking skills, ask better questions if you want to continue to be successful.  Your outlook on each day needs to be positive, upbeat and faced with an open mind.  Problems and challenges others put in front of you need to be looked at as an opportunity to shine and show you are the expert in your field.  You need to be focused, on task, have a plan of action for each day and attack it with enthusiasm, vim and vigor.  You can’t sit back and wait for things to happen.  You must be motivated, inspired and eager to attract others to want to be around you and do business with you.

Although the Capitals won the game in overtime, they appear to be going through the motions as so many others do in business on a daily basis.  If you find yourself in this situation, you need to find something that brings you passion and desire.  You need to get energized about your day by doing something that gets you pumped up to go to work.  Take time to analyze where you are and why and decide to change what you are doing to get the most out of life.  Determine what you want out of life, what brings you joy and what brings you the most success build your legacy – don’t just go through the motions.  Get it?  Got it?  Good!

Become better than yourself…

Leave a comment

In a recent Carpe Diem meeting I attended, I was reminded of the belief of how important it is to give back, to live life to the fullest, to take care of the really important things in life and to share our experiences.  It is important to take what we have learned in life and share it with others to help them and to give them guidance in their lives. 

It got me thinking about how important it is to challenge yourself, everyday.  Don’t sit back and wait for things to happen – make them happen.  In addition to this philosophy, challenge someone else to be better, to strive to achieve more, to get more out of life, to be a better person and hold them accountable. 

Ask what you did to improve today, what did you accomplish today, why is the world a better place because of what you did today and ask the person you challenged the same questions.  Ask yourself at the beginning of each day, how can I make a difference today and look for opportunities throughout the day to help you achieve the answer.

It is also imperative to think before you begin your day and determine what your priorities are for that day and why they are important and strive to do your best to get your list done.  What can you share with others to make someone else better today?  Are you utilizing your strengths to the fullest?  If not, why not?  What can you do to improve yourself today?   Keep yourself on track, don’t get distracted and if you do, correct your course quickly so you don’t drift too far away.

 Let me share with you what I tell my children every day.  Seek to improve just a little bit every day, build upon something good that happened to you the day before, learn something new and attack the day with enthusiasm!  Don’t just stick your toe in the water of life, dive head first into it and live life to the fullest. 

If you live your life in this way and have a positive, upbeat attitude you will become more effective, will have a bigger impact on others and will make a difference in life that will give you a legacy that goes beyond your years.  Get it?  Got it?  Good!

Life is crazy…

1 Comment

It is amazing how things happen in life and why they happen the way they do.  As I watched my kids play softball and baseball this weekend, the analogy of life throwing us curveballs came to mind.  We are in a current state of change and adjustment in life.  We can stay on the bench and watch it pass us by complaining about our circumstances or we can get in the batter’s box and play the game of life.  In the analogy of between baseball and life – getting off the bench and playing doesn’t ensure you success.  You can stand in the batter’s box and watch the pitcher throw the ball right past you.  You could step out of the batter’s box as you swing and miss the ball completely or you can change what you do and get a hit – maybe even a home run.

Business, much like softball and baseball, is a game of focus, determination, dedication and seizing opportunities.  Are you doing all that you can to be a success?  Are you putting in the time necessary to get results?  Are practicing your presentations to get them right?  Are you making adjustments according to the situation you are faced with to ensure your success?  Are you educating yourself on changes in the industry, trends in the market, and the numbers?  Do you have the passion for the “game” of real estate?  If not, why not?

In baseball there are different levels of success – Single A, Double A, Triple A, Majors and lastly World Champions.  Are you putting yourself in position to be a World Champion of Real Estate?  Do you have the right attitude and approach to the business.  Right now is the time to get into the game and work on becoming all that you can be as a Realtor.  If you need help, find a coach or mentor and grow your business today.  Get it?  Got it?  Good!

Conversations with Platinum Members

Leave a comment

Our group met today for our regularly scheduled meeting and the conversations were lively as usual.  Any time you get together with a group of movers and shakers in the industry with a history of production, sharing, and enthusiasm, how can you not get excited?

Here is what we covered: 

What is happening in the market?  Many of us are seeing a heightened level of activity – properties are selling but also inventory levels are increasing plus many of the agents are getting ready to put houses up for sale over the next few weeks.  Overall in the Northern Virginia market our inventory level of active resales has gone from 4,421 houses for sale the last week in December to 6,666 for sale today – it is over a 50% increase in just over 3 months.  In addition, this was the same level as what was available in July of last year.

We are seeing a lot of showings, but no contracts on some properties – a little slower, no urgency in the $500,000-$600,000, but the properties under $400,000 is still smoking hot.

Appraisals seem to be working out right now – agents were worried about achieving value but they still worked.  It is important to educate sellers and have them be prepared their properties might not get the value and be ready to make adjustments.

Interest rates have increased slightly and will continue to rise through the end of year.  Inflation is one reason they will increase along with the timing of the spring market and the fact that the government has gotten out of buying mortgage backed securities.  More short sales will be affected by rising interest rates – won’t qualify for HAMP and will go into HAFA.  This is a good thing as many people will avoid foreclosure and the inevitable debacle that we have seen where yards deteriorate, appliances are taken, and values are decreased.

More healthy sales are on the market versus distressed sales which is good for the buyers.  It appears as if that may change – stay tuned.  Right now in the Northern Virginia area, only 21% of the market is distressed sales.

In a recent study of first time home buyers by SunTrust mortgage, only 10% bought because of the tax credit.  April 30th is impending date we have been speaking about but it doesn’t appear as if it will have that much of a negative impact on the market because many people aren’t aware of the credit, don’t know if it impacts them so many haven’t utilized it as they should or could have the second time around.

What’s next?  Concentrate on short sales – they are here to stay.  Open house traffic is high so hold opens to increase your database and get more buyers.  Advertise your open houses on Trulia, Postlets, Craigslist, MRIS and e-properties to get the most exposure.  One agent has also had success with Washingtonpost.com and it is only $42 per month to advertise opens on for your sellers.

What are your activities scheduled to get more business this year?  Working on real deals.  Do more networking to build relationships.  Continue to grow database.  Be sure to reach out to agents with a history of working with in the past to become aware of potential new listings for your buyers.  It is all about relationship building.  Agents are utilizing Listingbook.com to educate sellers.

Other additional information was shared:

Please, please, please order HOA/condo docs for our buyers if seller or listing agent won’t provide them when we are working with short sales – you have to protect our buyers.  We have seen many instances where a high percentage of owners are in default on the association fees.  Also, get condo questionnaire filled out prior to listing a condo to see that the new owners can get financing on the property.

Equator says to switch contracts and start from scratch on short sales that kick out – you can no longer substitute new buyer contract at the last minute.

Stay on top of the market, what is happening so you can give your clients the right advice whether they are buying or selling a house.  Get it?  Got it?  Good!

Now, go sell something!

Are you determined?

Leave a comment

I was recently at a Wizard’s game and during the warm-ups I was looking around the stadium and noticed there were hardly any fans at the game.  Yes it was a beautiful day outside yet people had paid hundreds of dollars on their tickets and still didn’t go to the game (courtside seats and center 3 sections on each side are sold out for every game).  Earlier in the day I had conversations with a few other season ticket holders who asked why I would go to a game when they were so bad and the team they were playing – the New Jersey Nets – were even worse.   After giving it some thought, the answer came to mind and it was dedication. 

It made me realize it is hard to have dedication when things aren’t going well.  When you have to give it your all when the chips are down or when you have to make a commitment and there are other choices that appear to be more appealing like the weather, the time obligation required and in a lot of cases – short term sacrifice for long term gain.  Truly, it can be difficult to go all in day after day when faced with adversity. 

In business, so many people give up when they are so close to success and it made me realize that they don’t have the dedication required to succeed.  They try one thing then stop, then try the latest fad and don’t get results and move on to something else always looking for the easy way to success and it is never the case – you need dedication for success.

What does it mean to have dedication?  Perseverance, commitment and devotion are characteristics of dedication and are essential elements of success.  The thought process of it is easier to do nothing than to put forth the time, energy and effort to get the results is relevant in today’s market more than ever.  Dedication to your education is critical.  Dedication to the development of your sphere of influence and its growth is necessary.   Dedication to market research to know trends is an essential element for success.  Dedication to your clients is a key area of focus.  Dedication to showing up and putting in the effort is essential. 

Think about this, the winners in life persevere when things look the bleakest and come out on the “other side” stronger, smarter and better equipped to handle the next challenge.  They have made the commitment to grow and learn from their experiences and become better in their chosen field.  As previously mentioned – you see it all the time in sports – many athletes “just mail it in” and many professionals do the same thing when faced with misfortune.  Be devoted to your career.  Be willing to sacrifice the time and resist the temptations of outside elements to get ahead in the business.  Decide if you have the loyalty for the business required to go to work every day and perform at the highest levels and attain success.  If not, you should find something that gives you this type of drive.  If the dedication, commitment, and devotion aren’t there for you in real estate – get out of the business and get into something else where you have the drive to succeed.  Get it?  Got it?  Good!

Do you have pride in all you do?

Leave a comment

The longer you do something, the longer you realize how important having pride in what you do is so important to your growth as a business person and how it plays into how you get more referrals or stay employed longer.  The question to ask yourself is – do you have it in you?  Do you have or take pride in what you do?  Do you feel confident that you are doing the best you can do and are performing to the best of your abilities?  Do you feel remorse when something slips through the cracks or if you feel you are not doing your best or giving it your all?  Are you doing the minimum to just collect a paycheck or are you pumped up to go to work and improve upon what you did the day before, every day?  Are you doing the little things when no one else is looking because you know it is the right thing to do?  Are you doing the right stuff to do the job better than someone else?  If so, you are taking pride in what you do.  We have made the decision to take pride in what we do for you.  Our goal is to provide you with the best training, education, support and so much more.

As we have done in the past, let’s break down the word pride and discuss the elements of each letter:

Professionalism – embracing professionalism in the way you dress, the way you speak with others, the way you approach each day shows you have pride in what you do for a living.

Responsibility – the idea is to not only take on the job you were hired to do but to take on even more.  The more you do, the more you will get.  Also, do the right stuff – all the time.  You know what to do so do it!  Don’t take extra advantage of your lunch hour, being on the internet to surf the web during work hours, etc.  Be responsible and be the ultimate agent or employee.

Initiative – take the initiative to take on more projects and suggest new ideas.   Be proactive, creative, take the lead on projects – don’t wait to be assigned a task or responsibility.  What do you think about while you are at work?

Dedication – you must be dedicated to what you are doing.  It is the drive within you that makes all the difference in your success.  Be dedicated and get more satisfaction and better results out of what you are doing.

Excellence – this should be your minimum standard in the level at which you should be performing.  If you provide excellent service, perform at an excellent level, you can always expect to be given referrals and get promoted more quickly than others in your field.

Are you interested in taking more pride in what you do?  Ask the experts, be engaged, be active, read, learn, attend trainings to understand your field, be positive, make your job your priority and improve everyday and you will shine.  Get it?  Got it?  Good!

Now, go sell something!

Tips for a smoother settlement!

Leave a comment

We had our regularly scheduled training on Friday to discuss the Northern Virginia Real  Estate market and have Champion Title discuss worst case scenarios for closing and even a few other disasters to be aware of in today’s sales environment.  As is the case in any sales situation, it is your job as a professional to manage your client’s expectations of what is going to happen at the walk-through and closing.  Here are a few tips!

Tips for a Smoother Settlement

  1. Try not to Close on last day of the month
  2. Know the difference between a home inspection item and a walk-through, and know what it means to be in normal working order?  This is extremely important when discussing age appropriate items.
  3. Disclose fees/additional costs upfront (e.g., admin fees, FHA/VA fees),Initial  all changes to the original sales contract (“meeting of the minds “), initials/signatures on all pages on the contract – do your damn job!
  4. Work with service providers you know and trust, its all about the team being in place with all the changes going on with RESPA and the mortgage market.
  5. Confirm closing cost credits with the lender prior to ratification of your contract so there are no last minute surprises.
  6. Make sure termite inspection has been ordered and conducted. If treatment was necessary, make sure all parties are aware of treatment prior to closing
  7. Keep utilities on through the settlement date
  8. Contact the settlement company if you know you have any walk-through issues and conduct your walk-through the day BEFORE closing – not minutes before.
  9. Avoid escrowing funds  if possible, lenders are tougher on this issue of allowing escrows
  10. Bring certified funds to the table or wire money prior to closing
  11. Know your client (e.g. reader, needs a POA, etc.) and what they will expect to happen at closing.
  12. Read the REO contract and know its details.
  13. Read the short sale approval letter, know and understand its terms
  14. Have sellers keep hazard insurance in place until a few days after closing

 

 

Now, you can’t prepare for every situation and we haven’t experienced everything we are going to experience but here are some recent situations that arose at settlements:

Dealing with the Unknowns

  1. Unexpected liens – IRS, HOA, etc. – are filed against the property.
  2. Bankruptcy – will not kill the deal but will take time because trustee must release the property and this can and will take time.  Find out the seller’s situation in advance.
  3. More than 1 ratified contract – be smart, know your listings and only ratify one contract.
  4. Improper foreclosure – people added to title after settlement with no knowledge of bank, then property forecloses, proper notification or no notification  was not given to person added to title – bank must re-foreclose and this is a lengthy process.
  5. Unilateral default – not closing because…

 

As always we discussed what our agents are finding out in the marketplace today when working with both buyers and sellers.  Here are some comments on the conditions of our current market:

There is no inventory out there and houses are selling fast.

There are multiple contracts on a lot of listings throughout the area.  Price points that are in the low $200’s are where we are seeing the most activity…

Some buyers are not aggressive enough on their first few offers and therefore are losing contracts.

Pricing is critical for listing prices – do not price a little high as there continue to be appraisal issues.

Agents are writing backup contracts on under contract properties – even foreclosure and regular sales.

An agent recently read that 70% of first offer short sale contracts fall out as buyers lose patience waiting on the process.  It is a good idea to write back up contracts on short sales today.

We continue to have appraisal problems as there are not enough comparable sales for appraisers to utilize in their appraisal therefore they are claiming market is declining.  One agent had an appraisal come in $100,000 low – they made buyers change lenders and verify qualifications of the new appraisal with the second appraiser.  It is imperative to do your homework, know the market and present this to the appraisers.

Ethics are slipping with agents – keeping listings off market (coming soon) then selling them before they go on the market.  The lack of returned phone calls, promptly responding to offers, etc. are the issues we continue to experience.  And what is really scary is contracts and earnest money checks are being deposit after VREB regulations and even closing!  Agents need to stay on top of their game or get out!

Rates continue to be great – we expected them to increase and they did for a short time but they have come back down – we are still below 5%.

You have heard it before – the more you learn, the more you earn so come to training!  Get it?  Got it?  Good!

Now, go sell something!