Luxury Clues

A Simple Way to Keep Your Real Estate Sellers Happy

The number one customer complaint about real estate agents is that we don’t follow-up. Failure to follow-up on leads costs us new business. Failure to follow-up with a seller can cost us the listing. Failure to follow-up with past clients costs us referral business. If you’re serious about increasing your production, examine how well you follow-up with your clients.

One of the most important ways that agents drop the ball in terms of the lead follow up is with their current sellers. Sadly, this is one area where almost all agents earn low marks.

When you take a listing you're excited and it's easy to stay in touch. The challenge occurs when the listing doesn’t sell. At this point, you dread contacting the seller.

Here’s how to prevent this from happening to you. First, when you take a listing, let the sellers know that you will be updating them each week by email or privately on one of the social networking sites such as Facebook with the following five items.

1. The number of showings this week 

2. Any broker feedback about the showing

3.  Any new listings in the same market area that compete with the seller’s listing.  

4. A list of properties in the local area that have gone under contract. 

5. Which properties have closed as well as their final closing price provided that information is available.

If the seller insists on being contacted by phone, leave a message at their home when they’re at work. The point here is to do the follow-up. If they really need to talk to you, they will contact you, and if they do, REPLY IMMEDIATELY. 

If you don't want to talk to them, you can leave a message using an application called "SlyDial." It bypasses their phone and goes right to their voicemail. Remember, the best way to avoid these issues entirely is to do what you promise and to follow up regularly. 

Posted by Bernice Ross, Join us this week on RealEstateCoachRadio.com with our guest mentor Michael Krisa, “That Interview Guy.” Michael will be beginning a 10 part series on How to Shoot Videos that People Will Watch and Share.” Here’s what he’ll be covering this week: Monday: Why Video Is a Must for Your Real Estate Business; Tuesday: Simple Tips to Get Started Using Video; Wednesday: Easy Ways to Create Content for Your Video; Thursday: How to Post Your Videos Online; Friday: The Evil Secret of Hosting Your Videos on YouTube.

 

How Much Will that New Cool Tool or Purchase Actually Cost Your Luxury Real Estate Business?

2012 is just around the corner and many agents are looking at what investments they want to make in their business for the upcoming year. While many of us suffer from "shiny app syndrome" (we want the latest tech toys and tools) have you ever considered what the cost of that might be to your business? Before you decide to buy any new tool,a car, or any other expensive toy,here are four questions to ask yourself. 

1. Do I really need this product or technology upgrade?

 Impulse purchases are emotional in nature and often cost far more than the price tag. Stop for a moment and write out the pros and cons of buying the product. Do you really need it or can you live without it? For example, replacing a three year old computer will save you considerable amounts of time in terms of downloading pictures, videos, and documents. On the other hand, investing in a fancy video editing program is a poor choice unless you plan to learn how to use it. In most cases, it's a better use of your time to farm this out to someone else. 

2. Am I willing to spend the time, money, and other resources to take care of it properly?

If you really need it, how much are you willing to spend to take care of it properly. For example, if you're buying a new car, most experts agree that it's best to drive the car for a number of years. Many of the luxury cars have 100,000 mile warranties that are well worth the price. For example, our extended warranty on our BMW just paid for a new set of brakes that normally wouldn't have been covered. 

3. How can I get the benefit of this product without owning it?

Recently, we were looking for a second car. After evaluating the cost and how much I was driving (less than 2,500 miles per year because I travel so much), it made sense for us to just keep one car and to rent an extra car on an as needed basis. This has saved us thousands of dollars in expenses. Look at your expenses. Is there anything that you might be better off leasing for brief periods of time or borrowing rather than owning? 

4. How can I reduce the overall costs of ownership

People normally don't consider how much it costs to keep a product up after they purchase it. In many cases, you may pay more for the top-of-the-line product, but it's cheaper in the long run. For example, I bought the top HP laser printer back in 1998. I print tens of thousands of pages each year and only have to replace the cartridge about once every 18 months. The same is true if you’re looking at a new ca. Determine which car has the best warranty. A car with a two year warranty may cost less initially, but the car with a five year warranty may be much cheaper in the long run.

This also holds true for real estate. When your clients are purchasing, consider the condition of the property. How soon will they need to replace the roof or the plumbing? While an older property may be charming, are they prepared for the maintenance costs? Would something newer be a better choice in the long run.

To keep your costs down, you must consider both the acquisition costs as well as the costs of maintaining the product over time.

Happy Holidays from all of us at RealEstateCoach.com

Posted by Bernice Ross. Join us this week as we welcome Shane Bowlin who will be discussing how to hire and work with a virtual assistant. Here's what she'll cover each day this week: Monday: How Does Virtual Assistance Differ from an In-House Assistant? Tuesday: The Virtual Assistant Job Description for Real Estate. Wednesday: Where You Can Find a VA. Thursday: Hire the Right VA for You. Friday: Tips for Working with Your VA. 

 

Is Craig's List a Good Place to Post Your Luxury Real Estate Listings

Craigslist.com (CL) is one of the most frequently visited of all real estate websites. When you are marketing a luxury listing, however, is posting your listing on CL a good idea or will it expose you to more trouble than it's worth? 

A number of agents have had success both finding buyers and selling their listings on CL. There have also been reports of your listing information being ripped off by unscrupulous agents who post the information as if it is their listing. In fact, some agents have actually used another agent's listing and posted that listing as a rental in order to create their own renal leads. 

If you are going to use CL to post your luxury listings, here are some things to consider doing to protect both you and your clients. 

1.  Each listing or posting should have its own email. 

An easy way to avoid giving out your regular email is to set up an account on Gmail or hotmail that uses the property address of your listing. When the property is leased, you no longer need to check that email inbox. If the property comes back on the market, it’s easy to use the same email address.

2. Properties for sale

Apparently quite a few spammers look at CL as a resource to harvest your email address and then spam you. Creating a separate email account is the best way to handle this situation. You can also use a single property website (e.g, 345OakStreetAnywhereUSA.com). Post neighborhood information, photos, video, plus community information. Set this page up as a single page with a single call to action. For example, you could offer a free report on “How to Save Thousands on Your Luxury Real Estate Purchase” or  “Privacy Tips for Luxury Home Sellers." To receive the reports, the web visitor must provide a valid email address.

3.  Use an 800 Call Capture (IVR) System.

While most younger buyers will not make a phone call, older potential clients will provided it is to listen to a “pre-recorded message” about a specific property. You can use an IVR (800 Call Capture) system to capture valid phone numbers. Because you pay for the call, you are entitled to the person’s contact information. Furthermore, any telemarketers surfing for good phone numbers are not going to bother listening to a pre-recorded message. The great news about these systems is that you can assign up to 1000 extensions to your 800 number. Thus, if you do get a crank caller for some reason, you can just change the extension.

4. Pictures and Video?

One of the challenges with using CL is that there is a lot of criminal activity looking for targets. Do you really want to show the pictures of the 3 year old little girl's room or all that beautiful artwork in that listing? To protect your clients, you can use a tool such as Obeo's VStager tool that lets you redecorate the house with generic furniture. The only challenge is you need to remove the furniture from the rooms you photograph. If you're concerned about this (and you need to be), you may want to photograph the kitchen, the dining room, and perhaps the living room. Have your clients move any expensive pieces out of the property so that they don't become a target for a burglar. The same goes for video. Don't show the security system or anything else that could help a burglar break in. 

CL can be a powerful tool—just make sure you take the necessary steps to protect both you and your clients. 

Posted by Bernice Ross.  Join us this week at RealEstateCoachRadio.com to hear a great five part series from Glenn Shimkus of Cartavi.com who outlines “Five Key Questions to Ask Before Your Buy Your Next New Technology. Here’s what he will be covering:  Monday: Does the New Technology Solve a Problem? Tuesday: How Much Change Will It Require? Wednesday: Is It Easy to Use? Thursday: Is It Mobile? Friday: Is Your Stuff Protected? Also, check out Cartavi.com–it’s the best transaction tracking program ever.

(Picture of Craig Newmark, founder of Craigslist, taken at Real Estate Connect, New York City, January 2010)

 

Avoid These Five Behaviors that Can Undermine Your Luxury Real Estate Business

Luxury real estate agents are held to a higher standard, even though every one of our clients deserve the best possible service that the agent can provide, regardless of the price point. The list below contains five behaviors that can undermine your real estate business, regardless of what price range that you serve. If you are engaging in any of these, there's no better time than right now to stop.

1. Failure to delegate

Are you doing $8.00 an hour tasks? Are you poor at doing the paperwork and the filing? If so, your luxury real estate business will suffer. The best agents recognize what they do well and they delegate the rest. This gives you more time to do lead generation and it also reduces your stress because you're not engaging in behaviors you hate doing.

2. Lack of reserves

Clients are like people who date. They have finely tuned radar that allows them to recognize people who are desperate. If you're struggling with living from commission check to commission check, start looking for places where you can cut expenses as well as what you can add to your business that will generate more income. Get in the habit of allocating at least 10 percent of every commission check to reserves until you can safely go for a year without closing a deal. 

3. Burnout

This is one of the most serious issues luxury agents face. Let's face it, the luxury market has been a mess due to the lack of financing as well as the high percentage of short sales. If you're experiencing burnout, take steps immediately to take better care of you. Schedule more time off--this means creating at least one day a week that is a "real estate free day." If you struggle with taking off a full day, then take off Friday afternoon and Sunday morning. Spend time with loved ones, take part in your favorite recreational activities, and carve out time for quiet time to read or just relax without anyone else around.  

4. Failure to keep learning

With all the technology changes coming at us fast and furious, you absolutely have to keep learning to stay on top of your game and to be competitive. Learning doesn't just have to be taking courses or reading. It can be exploring a new recreational activity or trying something you have never tried before. There's always something new to learn and every transaction brings some new piece of information about how to do your job better. Seek knowlege and dont' be afraid to ask help from those who know more than you do. It's how you grow. 

5. Failure to maintain "luxury standards"

The best agents take responsbility for their actions--they don't blame others, even when someone else is at fault. Instead, they approach their business as providing solutions for their clients. Futhermore, you never discuss your clients or their situation with anyone else--period. Their business is their business--not anyone else's. Luxury standards also means doing everything with the finest quality--this means that your marketing materials are top notch and so is how you present yourself professionally.

Finally, it also means having clear cut boundaries about the way that people treat you. If someone doesn't treat you with respect or meet your quality standards, refer them to another agent. While this may sound harsh, you will attract a much higher quality clientele. Saying "No," to the wrong types of clients is one of the smartest moves that you can make for your business. 

Posted by Bernice Ross, CEO RealEstateCoach.com. This week at RealEstateCoachRadio.com our guest is Jimmy Mackin, the founder of the Real Estate Tech Support Group and a super sharp Gen Y who will be sharing "An Agent's Guide to Working with Gen Y." Here’s what he will be covering:

Monday: Don't Waste Your Money Advertising to Us

Tuesday: People Share Awesome

Wednesday: We Get Our Information from Each Other

Thursday: Fans and Followers Don't Buy Homes—People Do

Friday: Being First is Overrated

 

 

 

 

 

 

 

 

Two Easy Ways to Strengthen Your Luxury Real Estate Negotiation Skills

When you work with sophisticated real estate clients, regardless of the price range they're in, you must be a strong real estate negotiator or they will walk all over you. In fact, they may even end up with part of your commission. 

The first step in negotiating more effectively is to control your voice. Do you know whether you sound weak or powerful when you negotiate?

A great way to tell is to record your next listing appointment or offer presenation to see for yourself. If you sound tentative, there's an easy fix--this is how to do it. 

Tip #1: Create a Powerful Voice

One of the secrets of sounding powerful is to use down strokes when you speak. In fact, you will notice that most powerful speakers drop their voice when they end a sentence. Sounding powerful is especially difficult for women since we were trained to raise our voices when we reach the end of a sentence.

To illustrate this point, say the following sentence out loud. “It’s raining outside.” On the other hand, if you want to sound weak, raise your voice at the end of your sentences rather than lowering it.In fact when Hollywood wants to cast a dumb woman, they give her blond hair and have her end her sentences with upstrokes.

If you would like to practice, say the following sentence and allow your voice to go up as you would normally when you ask someone a question.  

Is having your property on 40 different real estate portals a service you want?

Now repeat the process, but this time say the sentence as if it were a statement rather than a question. Notice how much more powerful that sounds? 

If you currently use upstrokes, practice lowering your voice when you end your sentences. It will definitely help you to be a more powerful negotiator.

Tip #2: Avoid playing defense when you negotiate

One of the toughest conversations on a big deal is having the commission conversation. Exactly what are you going to do for all those thousands and thousands of dollars? The moment your client challenges your commission, you have already lost the game. The reason for this is that you haven't demonstrated your value adequately or they would not have challenged you in the first place.

To circumvent this issue, avoid playing defense. For example, when a seller asks a weak agent to reduce their commission, they often explain that they receive only 25 to 30 percent of the entire commission because they have to split with their broker as well as the other agent. This strategy results in the agent having to play defense, rather than offense. The key point to note is that when you find yourself explaining why you are right, you’re in defense mode. 

A better approach is to take control of the situation by outlining your value before the commission conversation even occurs. Show the sellers all that you do to make their luxury listing stand out. Make sure you offer at least one or two services that your competitors do not provide. 

If your client does challenge you on your commission, point out they have much more than just six or seven percent of the sales price at risk. Everyone has attorneys. If there is litigation, just getting to court can easily exceed the cost of the commission, not to mention the cost of settling the suit regardless of who made the mistake.

The bottom line is that most luxury clients want the best--your job is to persuade them that you are that person who will not only create great results, but also the person who is THE choice in their area to represent them on the sale or purchase of their luxury property.

Posted by Bernice Ross, Join us this week at RealEstateCoachRadio.com to hear Len Elder of Course Creators with great tips on The Art of Engagement.

Two Great Strategies to Defend Your Commission on Luxury Listing Appointments

When a seller asks you to lower your commission, that usually means that you haven't demonstrated your value. One of the best ways to avoid having this happen to you is to create a Premium Marketing Plan that offers at least five premium services that distinguish your marketing from that of your competition. This can include things such as a 3-D Open house, translation of their listing into 13 different languages, a single property website, plus whatever you do that makes your marketing plan stand out from the competition. 

I always appreciate hearing from our readers. This script comes from Allan Bernardi and is one of the best I have heard on how to earn a full commission, especially if you are going on a luxury listing appointment.

If, after reviewing your Premium Marketing Plan, the sellers still ask you to discount, this is how Bernardi recommends that you respond:

“Well, perhaps I can refer you to a junior associate in our office who might be willing to work for that rate.” 

Nobody ever wants to get referred to the junior associate in any profession! According to Bernardi the key is to be willing to walk away from the client. If you can’t walk away, then they have you.” 

Another important point to remember is that "discounts" are considered to be a good thing by most people. Instead of using the term discount, use the term "limited service." Just as no one wants a "junior associate," most people don't want "limited service." 

Posted by Bernice Ross. Join us this week on Real Estate Coach Radio with Rich Leven, a Productivity Expert for the Real Estate industry who will be sharing five great tips on how to  "Calm Down and Focus." His sessions will include "The Ultimate Confidence Booster," "Practice Until You Can't Get It Wrong," "Control Your Altitude with Your Attitude," "The Secret of Increased Self Esteem," and "Systematize for Success."

A Lesson in Closing from Bravo's Million Dollar Listing

Last night I couldn't get to sleep. There wasn't much on TV at 3:00 a.m. however, there was an episode of Bravo's Million Dollar Listing. 

It's always interesting for me to watch these shows because there's some truth but also a lot of glamorizing about what goes on in the luxury market. The idea of doing verbal negotiations on the phone for multi-million dollar properties may happen, but the actual process doesn't usually resemble the TV show. First, almost all the high end folks have attorneys and business managers. You negotiate with them. The client says "I want this property" and then it's up to the money folks from there. 

My experience has been that the business managers want reams of supporting comparable sales data. They will dig through every last detail. Of course, that doesn't make interesting TV.

The one thing on this particular episode that I thought really reflected great closing skills was how the situation was handled for the developer who had a $5 million listing that was not selling. The only offer was for a lease at $50,000 per month. 

The listing agent correctly surmised that if he could turn the seller on to another project, he could close a lease deal as well as a sale on another property. 

Instead of meeting the seller at his office or at the listing, the agent decided to have the meeting at a listing that would be perfect the developer's next project.

When the listing agent first broached the idea of a lease, you could tell the seller had no interest. The agent didn't give up, however. Instead, he correctly pointed out that the seller would make $600,000 in terms of rent and that would give him a positive cash flow. That's much better than sitting there with a vacant property. 

The agent sealed the deal when he pointed out what the developer could do with the next property. He understood the developer mindset--they're always looking for the next deal. When they have finished a project, they're eager to start a new one. 

Regardless of which price range that you're working in, understanding what makes your buyers and sellers tick is critical when it comes to negotiating deals. 

According to some negotiation experts, there are only two ways to close a deal--one is with "brightness of the future." This is for the person who is looking forward to the change in their living circumstances. Closing has you point out all the good things that will take place from the move.  

The other approach is called, "turn up the pain." This approach works well when someone wants to get away from noisy neighbors, end a long commute, or have more than one bathroom for the teenagers. To close in this situation, point out how miserable the current situation is and how great it will feel to put an end to it.

Remember, one of the most important questions that you can ask your buyers and sellers is, "What's motivating you to move?" When you know their motivation, closing becomes much, much easier.

Posted by Bernice Ross. This week on RealEstateCoachRadio.com we’re pleased to welcome real estate’s leading expert on keeping safe—Andrew Wooten of www.JustBeSafe.com. Andrew’s book, Live, Work, and Play More Safely, addressed the challenges we face today in maintaining our safety at open houses, listing appointments, and vacant properties. Andrew has been speaking on safety for 26 years and has interviewed a number of felons about how they target their victims. Join us to learn about what you can do to protect yourself and your family both on and off the job. 

 

 

 

 

How to Score a 93-97 Percent Approval Rating on the New Agent Rating Systems

The big trend for 2011 is the move to online evaluation of real estate agents by third party sites such as Yelp and RateMyAgent.com. LIke it or not, there's not much you can do about this.

One of the most powerful ways to produce raving fans is to do a post closing survey. Companies that do post-closing surveys report satisfaction rates as high as 97 percent. If you want more raving fans andscore high on these new systems, here are the questions to ask on your post closing survey.

1. What was the most important reason that caused you to hire me?

2. When you think of my representation during your real estate transaction, what are the first things that come to your mind?

3. What could I have done better?

4. Do you know anyone who may be thinking of buying or selling property?

5. May I use you as a reference?

6. Would you mind doing a video testimonial for me?

You can survey your clients online with services such as Survey Monkey or you can do a paper version, provided you send the survey out with a pre-addressed stamped envelope your client can drop in the mail.

Also, if there is a negative post about you, there are several ways to handle it. It takes approximately 5-6 positive posts to outweigh one negative post on Yelp. Gather as many positive video testimonials as possible and post them as soon as you can. 

If the problem is really serious, you can hire a firm such as ReputationDefender.com This is not cheap, but having negative information about you on the web can cost you your career. 

To sum up, giving great customer service is the best way to establish trust, attract higher quality clients, and to create raving fans for your business. 

 

Posted by Bernice Ross, CEO, RealEstateCoach.com

Are you overwhelmed by the thought of blogging? There's a very simple solution--do a video blog. Just point, press the record button, and then upload the video to your blog. The only writing you have to do is a one sentence description. To learn more, check out this week's RealEstateCoachRadio.com with Patrick Birdsong on the topic of Video Blogging Simplified

 

 

Do You Have What It Takes to Work the Luxury Real Estate Market (Part 2 of 2)

 In my last post I went over the first ten characteristics that most top luxury real estate agents share. Today's post covers items 11-20. 

11.  When you are working, your clothing is always high quality, clean, and well-pressed. Luxury clients recognize quality. You're better off spending more on a few high quality pieces that spending on what is trendy and that will soon be out of style. 

 12.  You dress like my clients, when they are at work—not when they are at home. It may be the weekend for your clients, but if you're working with business professionals who wear a business suit to work, it's probably smart to be dressed for business, even on the weekend. Save your casual wear for outside the office. On the other hand, if you're clients are programmers or artists, being more casual is more appropriate. Many smart agents carry a nice jacket in their car just in case they need it for an unexpected offer or listing presentation. 

13. Your hair, nails, teeth, and other aspects of my personal grooming are always impeccable. The quickest way to turn off a client is with poor personal hygiene. Make sure that you take the extra steps to make yours perfect. 

14.  Never swear, tell off-color jokes, chew gum etc. when I'm working. What may be funny to one client may be quite offensive to someone else. It's just good business to avoid making any client uncomfortable with you or what you say. 

15. Keep yourself updated on the stock market and be able to talk knowledgeably about it. Real estate is a great alternative investment to the stock market. Luxury clients almost always have sizable stock portfolios. At a bare minimum, you should know what the stock market is doing and how real estate compares as an investment. 

16.  Be active in local charities and give back to your community. One of the best ways to connect with luxury clients is to do charity work. Giving back to others attracts high quality people into your business. Also, over 60 percent of all top producing real estate agents in a recent survey were active in community affairs. 

17. Engage in leisure activities such as golf, tennis, or sailing. There's an old saying, "If you want to catch fish, go where the fish are." If you enjoy golf, tennis, or sailing, then take time to engage in these great activities. You'll be surprised how many people you will meet and you will have an immediate conversation starter with high end clients. 

18.  When things go wrong, my sellers/buyers can count on you. Let's face it--luxury clients generate big commissions and have big expectations of their agent. You must have excellent problem solving skills and be the calming force in any situation where things go wrong. 

19. Expand your vocabulary and speak clearly and distinctly. The #1 thing that makes the most important first impression is how a person speaks. Someone can be dressed like a bum, but if they speak well, people will reassess their judgment about that person. If you don't speak well, take a speech or diction class. Slow down and speak as clearly as possible.  

20.  Use top notch marketing materials. If you're going to represent the high end homes in your area, you need high end marketing materials. Hire the best photographers and use the best quality that you can afford. 

Posted by Bernice Ross, author of the #1 Best Selling Real Estate Book at NAR--Real Estate Dough, Your Recipe for Real Estate Success

Join us this week on Real Estate Coach Radio for a very special guest--Allen Hainge shares top tips from his Cyberstar network with Michael Krisa. You don't want to miss these five content rich shows that can help take your business to the top. Discover why iTunes named us "new and notable!"

Real Estate Coach Radio Just Launched Today--Tune In For Our First Show

 I have been working for the last four months with Kevin Turner on the launch of our new radio show. Today we are incredibly excited to announce that we our live and "on the air." To listen, just visit our website, click and play--it's just that simple. 

RealEstateCoachRadio.com was inspired by Kevin Turner. Kevin is based in Australia and has been hosting two shows over there. His consumer show has over 1 million listeners--that's in a country of 22 million. His industry show is called "Real Estate Uncut" and has also been a huge success. When I was in Australia, everyone was asking me if I had heard "Uncut." 

When I met Kevin in Sydney, he told me he wanted to bring his show to North America. It seemed like a great opportunity for us both and so our partnership was born. The show is designed to give you 5 to 6 really great business building tips in just 5 to 6 minutes a day. There's no fluff--just great content from the best speakers, trainers, and top producing agents in the industry. 

This week our guest mentor is Verl Workman. Verl is one of the most sought after speakers in the industry. For our first six shows, Verl will be giving you tips on how to create a business plan that really works. This is awesome information, so don't miss it.

I will be doing a five part series on the myths that hold most agents back from top production. Byron Van Arsdale will be sharing "working smarter tips"--one minute ideas on how to build your business. Kevin will close the show with an inspirational quote. 

If you have a tip you would like to share, we will do our best to put it on the show with full credit to you for sharing. Please email me at [email protected]. We are also looking for sponsors, so please email me or DM me on Facebook or Twitter if you're interested. 

So listen in, get inspired, and then sell, sell, sell!

Posted by Bernice Ross, www.RealEstateCoachRadio.com--The Place to Go to Make Real Estate Dough