by Dr. Lawrence Hasbrouck
Prospect – Preview – List – Sell
NO OTHER TASK IN THE REAL ESTATE BUSINESS CAN BE PERFORMED
THE PROSPECTING PROCESS
“Don’t let pending contracts or any other activity take you out of the business of prospecting every business day”
An agent’s #1 job everyday is to prospect!
DEVELOP A PLAN
CONTACT PROSPECTS——SO MANY EACH DAY
PRIORITIZE YOUR PROSPECTS
MAINTAIN A FOLLOW-UP SYSTEM
PRIORITIZING YOUR PROSPECTS
Determine their NEED
Determine their URGENCY
Determine their MOTIVATION
SOME REASONS WHY PEOPLE MOVE
Income Increase or Income Decrease
Transferred into or out of town.
Birth or Death
Marriage or Divorce
Bored with same ole town.
LOOK IN THE FOLLOWING PLACES FOR PEOPLE WHO ARE MOVING
Marriage Announcements in Newspapers
Bankruptcy or Foreclosure Notices
For Sale by Owner signs
Garage or Estate Sales
Vacant or Neglected Property
Local Business moves
Ways To Get Business because Success By Accident is Hard To Achieve.
1. Approach Someone
2. Determine their Needs
3. Ask for an Appointment
For a listing:
1. Approach the Sellers
2. Determine their Needs
3. Ask for the Listing
When Meeting a Buyer at a Open House:
1. Approach and Greet Them
2. Determine Their Need, Motivation and Urgency
3. Ask Them to Work With You to Find the Right Home or to Buy the Open House.
OPEN HOUSE EXAMPLE
This is the time when you establish rapport and begin the building of trust and confidence.
Ask easy to answer questions.
I’m glad you came by today. Are you familiar with the area?
It Looks like a good day to be out house hunting.
My name is _________ ________.
Are you a neighbor?
May I ask, did you see our ad in the newspaper or the Open House signs?
Would it be possible for me to get your comments on this house after the tour?
The owners and I would really appreciate knowing your reactions.
Determine Their Needs
This is the time when you determine the visitor’s needs.
It is time to assess if the visitor is a ready willing and able prospect.
It is the time when questions are asked that lead to make a decision whether you want to work with this visitor.
There are two types of questions to use when assessing the visitor.
1. Open Probes
Open Probes are used to gather information.
They generally require a multi-word answer.
Open Probes usually begin with the Why, When, What or How words.
Other good openers include phrases like “Tell me about….” and phrases that elicit opinions or feelings.
Open Probes often ask for information about urgency, motivation, wants and needs.
1. When would be the best time for you to be in your new home?
2. What puts you in the market right now?
3. Which are your favorite neighborhoods? What do you like most about this area?
4. How important is the yard to you?
2. Closed Probes
Generally a Closed Probe question can be answered with one or two words.
It can confirm the information you have gathered, offer an alternative choice or elicit specific information.
They often start with words like is, are, could, can, do and have.
They are usually easily answered.
1. You said you wanted a large master bedroom, is that correct?
2. You said you would be coming to town the week of ___?
3. Is this the correct spelling of your name?
4. Are you including the basement in your square footage?
5. Would 5 PM or &PM be better?
Ask For Commitment
Asking for Commitment is the one area often neglected by real estate salespeople. But it can not be overlooked if you are to be successful in this business.
Asking is not limited to asking people to list or buy. It includes asking for the right to help them, asking if you can refer them, asking for appointments or the right to call them another time.
Most prospects need help in making a decision. It is your job to ASK.
How soon can we get together and find just what you’re looking for?
Bridge their Needs to connect the question.
Since you’re interested in a 5 bedroom house and a larger garage, I’m certain I can help.
I previewed several properties this week that might be possibilities for you.
Let’s get together. get a comprehensive list of all your wants and needs and find the very best home for you.
I have an appointment available at 6:00 tonight or Saturday morning.
Which time would be better for you?
APPROACH – DETERMINE THEIR NEEDS – ASK (in order)
Putting these in order is extremely important.
Think back to the times when you have been a potential buyer and remember the ineffective salespeople you have run into.
When that have skipped APPROACH or DETERMINE THEIR NEEDS, you have probably said you were “Just Looking”.
Exceptional salespeople cover all three in order.
APPROACH – DETERMINE
USING THE MAGIC QUESTION
Your objective when prospecting is to find people that have
1. A need to sell their house
2. A need to buy a house
3. Information about someone that they can refer to you who has a need for services
To find them, you have to ask the Magic question.
Who do you know who is planning to buy or sell real estate?
When you prospect the use of the open probe question will generate thought on the part of the contact.
The closed probe question will usually only elicit a short response.
Proper grammar for the Magic Question would be, “Whom Do You…”?
However, “Who Do You…?” is more commonly heard and used.
Throughout this text we will use the latter but use the one you are most comfortable with.
THE MAGIC PRESENTATION
The Magic Presentation is a basic method that you can use in almost any situation.
Asking people if they can help you is a good method of approach. Most people are willing to help if they can.
Hi. I wonder if you could help me? My name is _________ representing _______. Here is my card.
Hi. Could I take a moment of your time? My name is _______ and I represent _______. I really could use your help….
Determine the Need
Who do you know who is planning to buy or sell real estate?
After you ask the Magic Question it is important that you pause to allow the person to think.
Most people will try to help. You may contact some people who are in a hurry.
Respect that, remain polite and move on to the next contact.
Some people will not be able to help you. in this case be sure to thank them for trying to help.
Ask them to keep your card and to call you if they should think of someone.
Ask For The Commitment
Please keep my card so that when you or someone you know needs to buy or sell property you can ask them to give me a call.
Thank you for your time.
The contact may know of someone or have a need for your services themselves.
Use your appointment app or book and schedule a time to meet with them or to get the name and phone number of a referral.
Remember…Not all contacts will be able to help you. Success in the real estate business is meeting people.
The more contacts you make the more likely your chances of securing leads and appointments.
Measure your activity on contacts, not the results.
The results will come.
BASIC METHODS OF LOCATING PROSPECTS
Below is a list of activities that produce prospects. make enough contacts and the result will be prospects.
1. Ask 25 people
2. Sphere the influence
3. Expired Listings
4. For Sale By Owners (FSBO)
5. Territory Management
6. Open House
7. Converting Incoming Calls
ASK TWENTY FIVE
Talking to twenty five owners of homes around one of your company’s listings is an effective method of finding additional sellers.
You may discover during this method of prospecting that a homeowner in the immediate area may know of someone who would like to purchase the house you have listed.
You must have a reason to make each contact. Have something of interest to tell the neighbors.
During the life of the listing there are many opportunities to contact the neighbors.
Contact the Neighbors
1. When the home is first listed.
2. Any time you hold an open house.
3. Any time there is any change made to the property itself.
4. When the property is sold.
Making these contacts with regularity when you are informing the neighbors of just sold properties is one of your best sources of business.
You are capitalizing on the company’s track record in getting homes sold in an area.
When a company listing sells, that news is an excellent reason for contacting the neighbors and offering our services.
SAMPLE APPROACHES FOR ASK TWENTY FIVE
Face to Face contact:
Approach: Good morning. Mr/Mrs _______, I am _______ with _________.
(Hand them a business card and Just listed Brochure.)
Your neighbors at (address) have hired us to market their house.
I wanted to stop by and let you know that it is for sale.
We have found that neighbors often have friends or relatives who would like to live near them.
Who do you know who would be interested in looking for a home in this area?
(wait for response)
Ask: This is an excellent neighborhood and I know we will generate a lot of activity for this property.
I’d like to leave you an extra card and when you think of anyone interested in buying or selling, would you give them my card and ask them to contact me?
In the meantime, I’d like to keep in touch from time to time and let you know about real estate news in the neighborhood, especially when you’ll have new neighbors.
Thank you for your time.
Face to Face contact:
Approach: Good Afternoon,
Mr/Mrs. _______, I am _______ with _______. (Hand them a business card.)
Determine the Need:
We have just sold the home at _______.
In marketing the property we found several families interested in the neighborhood.
Who do you know in the area who may be thinking of moving?
Ask: I would like to leave you a few of my business cards.
When you do hear of anybody who is thinking about selling or buying, please ask them to give me a call.
I would appreciate the opportunity to help them.
I would like to check with you on occasion to see if I can be of assistance to you or anyone you know who has any real estate need.
Thank you for your time and when you have any questions about real estate, please call and ask for me.
Face to Face contact: Open House Invitation
Approach: Good Afternoon Mr/Mrs. _______. I am _______ with _______. (Hand them a card and Open House brochure.)
I stopped by to invite you and a friend to the open house.
I’ll be conducting on (day/date) at _______.
Determine: Who do you know who might be looking for a home in the neighborhood?
Anyone who has recently been transferred to the area?
(if positive response)
I would very much like to contact them to extend an invitation to the open house and to offer my assistance in their home search. Do you have their name and phone number?
I feel obligated to do the best possible job or them. I appreciate the information. Whenever I can assist you, please call me.
Once a contact agrees to help you expand your business, you must follow up.
1. Immediately send a thank you note.
2. Schedule a call back within 30 days.
Your success depends on the quality of your relationships with other people. Doing something physical to show appreciation indicates that we do more than just pay lip service to the efforts of others.
GET CREATIVE IDEAS From Leslie
A True Story: A female real estate agent bought herself an old box truck, painted it white and then had a sign company put the following on the sides:
Her Name, Real Estate Company Name
I supply the Service and the Truck
Let’s Get Moving!
phone number, email and web-page
Every single day she parks that truck at a busy intersection, shopping center or mall. She does very well.
Another true story: On the fourth of July an agent placed small American Flags at the edge of every property in a specific neighborhood with a small sticky note stuck around the base of the pole which said, “I’m so proud to be an American. Happy Fourth of July from her name, company name and phone number.”
Neighbors woke up to see their neighborhood nicely decorated for the fourth.
It looked great. The neighbors were so inspired that the following year they got a permit to have one street blocked off and they threw a block party.
Those block parties continue today and she continues to put those flags out every year.
She does well. It is very rare to see another agent’s For Sale sign in that area.
By far referral business is the preferred business. It reduces the amount of prospecting time. Be recommendable. Stay consistent. Be visible in the community. Participate in groups, volunteer and join a gym. Most important of all, ask for business.
FOR SALE BY OWNER (FSBO)
The “By Owner” sellers attempt to sell their home for the following reasons:
1. Belief that their net equity will be greater.
2. Pride of doing it themselves.
3. Distrust of salespeople.
4. A lack of understanding of the service we provide.
You must explain the service you provide and their benefits.
The opportunity to hold a “for sale” open home (open for inspection) often gives a high rate of return for time and money invested. In a period of a few hours you have the opportunity to meet motivated buyers and sellers.
A main objective of an open house is to meet buyers. Usually an advertisement is placed in the appropriate local newspaper. A sign is placed in front of the house and in as many other locations as is practical and permissible.
At an open house, the house and YOU are open for inspection.
Occasionally potential sellers will shop at open houses in order to compare their property. They are trying to get a feeling of the market. You can increase the opportunity to obtain listings by letting them “see how you work”. Ask them motivation and urgency questions such as: “Will you be selling another house before you go into your new home?”
Sellers list their house with a company in hopes of a sale. despite the efforts of the firm, sales associates and the Multiple Listing Service, the house may fail to sell during the listing term. The house is then “off the market”. This is an expired listing.
Expired listings provide a ready source of prospects for you. You must understand why listings expire, how sellers react to the expiration and how you can help solve the problem.
This approach is to take a geographic area and expose the homeowners in that area to a series of in-person, mail and telephone contacts in order to create future business. The result is that as the residents begin to think about buying and selling real estate, they will think of you.
The benefits of this prospecting method are clear. You will have immediate and future business in a specified area with which you are familiar.
INCOMING TELEPHONE CALLS
Initially callers want to ask just a few simple questions and hang up. You must atke control of the conversation to turn the incoming call into an appointment.
PROSPECTING TOOL IDEAS
Thank you Gifts
PROACTIVE vs. REACTIVE PROSPECTING
You don’t have to depend on “opportunity” or floor time.
You don’t have to wait for the phone to ring, the market to change, etc.
You don’t have to wait for repeat business or referrals.
You will always have a steady stream of fresh prospects.
Proper follow-up will cultivate future business.
You are in control.
DON’T “CAN’T” YOURSELF OUT OF THE BUSINESS
Take control of your future, start today.
GOOD LUCK WITH YOUR PROSPECTING!