Sales Skills Ebook

The Next Great Hire

This online course is your complete crash course on how to get your first entry-level sales job. In the field of sales, everything is based on how you perform. However, when you have no experience from the past, how are you supposed to show them that you are the right person for the job? You don't have any real way to prove that you are the person that they are looking for. Now, with this guide, you don't have to worry about that anymore. This guide teaches you what the top managers are looking for, and what you need to do to sell yourself as the best candidate for the job. This course was designed by Lauren Brasier, a college athlete who became a top New York City sales executive. All the information from this 6-part course is information that has been repeatedly tested in real-life sales examples.

The Next Great Hire Overview

Rating:

4.6 stars out of 11 votes

Contents: Online Course
Author: Lauren Brasier
Price: $99.00

Download Now

Sales Manager Compensation

The sales manager is compensated in three basic areas, based upon the desired objectives of the company Sales commission split. A broker may want to establish a generous fixed-commission split for the sales manager, acknowledging that the sales manager will have less time available to do his or her own personal sales. A commission split of 80 to 85 percent is not unusual, depending upon the market area and the size of the office. Base compensation. Typically, this is a monthly stipend of 1,000 to 2,000, varying with marketplaces. Base compensation is further acknowledgment that the sales manager will spend time doing administrative duties that negatively affect his or her personal sales income but that is essential for company operations. Recruiting bonuses. A common way to encourage a sales manager to spend time on recruiting activities is to provide an incentive program

Research Methods And Writing Style

My primary research methodology was based on direct personal observation. I was a very successful residential real estate sales agent for several years, after a career in the U.S. Air Force. I currently have my Oregon real estate broker's license, although I devote most of my time now to teaching and writing. I have taught real estate licensing courses at an Oregon community college for over a decade. I have remained active as a member of the National Association of Realtors and have served on the local ethics and arbitration panel. I have also been Book Review Editor for Real Estate Professional magazine for many years and frequently write feature articles for the publication. For several years I wrote a Realtor career advice column titled Ask Doctor Real Estate. During the early years of my real estate career, my wife was also a licensed salesperson, and we worked together as a team in the same office. To secure background information and to help me achieve a national perspective, I...

Sold Taking a Glance at Real Estate License Exams

Every state has at least two license levels for its real estate agents salesperson and broker. (Briefly, a real estate broker is someone authorized by the state to perform certain activities such as sales on behalf of another person for a fee. A salesperson is someone licensed to do those activities but only under a broker's supervision. See Chapter 3 for more.) Some states may have other levels of licensing, such as a time-share agent, associate broker, or salesperson apprentice or trainee. In any case, a state agency administers real estate license exams in each state (different states may have different names for their licensing agencies). In the following sections, I give you the lowdown on licensing procedures, the differences between the licensing and exams for salespeople and brokers, and the format of the exams themselves.

Forget about a Real Estate License When Youre an Investor

Many BWBs I talk to think they must have a broker's or salesperson's license to invest in real estate. You do not need a real estate license of any kind to invest in real estate for a profit Most brokers and salespeople I know do not invest in real estate. Instead, they're more interested in earning commissions than they are in investing. True, while I do know some BWBs who are licensed, the main reason they got their license was not to earn money selling real estate.

Understanding the importance of customer creation over customer service

I Between creating customers and delivering service, customer creation is the more complex task. Customer creation requires sales skills and ongoing, consistent, and persistent prospecting for clients. To develop customers, you have to gain the level of skill and comfort necessary to pick up the phone and call people you know (or even people you don't know) to ask them for the opportunity to do business with them or to refer you to others who may be in the market for your service.

The Nature Of The

Almost all real estate agents are paid solely from commissions (brokerage fees paid to their supervising brokers and shared with the agents), which result either from property they sell or from the sale of their listings (contractual agreements with owners to market property) by other agents. This is true whether they are among the approximately 95 percent who are independent contractors or whether they are employees. In real estate sales, the term independent contractor is used to describe the nature of the supervisory relationship between broker and agent, and has specific legal and income tax implications. Rarely are real estate salespeople paid a set salary. I describe these basics more fully in Chapter 3. Some alternate business formats are evolving, which I will cover in Chapter 17, but commission sales are still the dominant model.

Real Life Story How to Know Your Real Estate Broker Is Looking Out for

While most people in business recognize the need to adjust to market changes, real estate brokers really need to moderate their styles as market conditions fluctuate. During the boom times of the mid 2000s, many real estate brokers, based on the volume of work, became more transactional as they tried to close as many deals as they could. But the best ones knew that booms also create busts, and it's the real pros who maintain relationships during the booms that have business during the down times. The best brokers also know that the height of the market is not the time to buy and provide that level of counsel to investor clients. They are market advisors as well as salespeople who are in it for the long term and know that no deal today is worth the loss of many deals tomorrow. That's the kind of broker you want.

Premier Auction Marketing Firm

Holds an annual outdoor BBQ, where they ask all staff and sales reps, to come wearing pink for Breast Cancer Awareness. They raised over 2,000 at their 2008 event. In addition, once a year a group gets together to ride The Big Heart and Stroke Bike - raising approximately 10,000 each and every year.

The Job It Isnt Just Driving People Around

Understanding the differences between brokers and salespeople Figuring out what real estate agents really do and how they get paid Checking out different career opportunities (including property management) Discovering the details of managing a real estate office and working independently Looking at important job-related laws you need to know The rest of the material in this chapter is fair game for state exam questions. Understanding the different responsibilities that brokers and salespeople have, how brokers and salespeople are paid, and the working relationship between brokers and salespeople is important. I talk about the role of the real estate broker in running an office, which is especially important for those of you taking your state's broker exam.

In between Associate brokers

Some states have an intermediate level of licensing that is called an associate broker. An associate broker has all the qualifications of a broker but doesn't want to operate his own real estate business. Associate brokers choose to work under the licenses of other brokers just like salespeople. Be sure to find out how your state refers to this level of licensing and what the qualifications are. In general the requirements to become an associate broker are the same as they are to become a broker (including the exam). The only difference is that an associate broker doesn't have his own place of business and needs a sponsoring broker just like a salesperson.

Making it legal Looking at license law

Real estate brokers and salespeople often are referred to as Realtors. Sometimes this reference is correct and sometimes it isn't. The word Realtor specifically refers to someone who is a member of the National Association of Realtors (NAR). The NAR is a trade group that represents a large segment of the real estate industry. With a million members, it forms a strong lobby and provides educational information such as conferences and a monthly magazine to its member brokers and salespeople. Through associated organizations it also offers

Checking out a typical real estate transaction

Because buying and selling houses is the primary business of real estate brokers and salespeople, I want to give you a brief and somewhat generic overview of a typical house sale involving real estate agents. (By agents here, I mean either a broker or a salesperson. Remember, however, that the broker is primarily responsible in a transaction, with the salesperson working for her.) I use the word generic, because although many elements are common to all simple real estate transactions, transactions can include state and even regional differences in some specific elements. Many experienced agents tell you that no two deals and no two closings are exactly alike, even within the same area. I try to point out some of these differences, but you need to compare this overview with the particular way things are done in your state. A couple decides to sell their house and enlist the services of a real estate agent. You're one of several brokers or salespeople the couple invites to their home to...

Considering independent brokerages and national franchises

Sale. (For more on multiple listing systems, check out Chapter 4.) Many independent brokers have chosen to affiliate themselves with national franchises. These arrangements vary from a fair amount of control and standardization from the franchise's headquarters to extremely independent operation in which the local broker pays a fee paid to maintain an affiliation with the national franchise. The benefits of franchise affiliations often are related to the nationwide exposure they provide through major advertising. Franchises frequently provide access to the training programs they require their salespeople to complete.

Traditional Commission Model

Under the traditional commission model, the brokerage revenues come from the gross commissions generated by its salespeople. This gross commission income (or GCI) is shared first with the franchisor through payment of the off-the-top fee, then secondarily with the sales associate responsible for the transaction. This leaves an amount referred to as gross profit or company dollar and represents the amount of money the brokerage has left to pay its operating expenses and generate profit for its owner.

Developing strategic partnerships

L The mortgage originator can play the role of a prospect's professional advisor. While most prospects view agents as salespeople, their psychology toward mortgage originators is quite different. They tend to see and trust mortgage originators as consultants rather than as the salespeople that they truly are. By forming strategic partnerships with your mortgage originator, you can put that psychology to work and secure more clients more quickly. I've seen agents increase their closed transactions by over 25 percent through this simple tandem lead conversion approach.

Keeping an eye out Supervision

State laws may vary, but in general, a broker is required to supervise the people who work for her. This extremely specific requirement makes the broker responsible for the actions of salespeople who work for her. This responsibility extends to violations of the state licensing laws, fair housing laws, and illegal or fraudulent activities. The extent of liability and punishment is, of course, determined by state licensing officials, and in the case of criminal or civil actions, by the courts. i What your state law has to say about brokers' responsibilities with respect to supervising their salespeople. i The expectation that you'll know most of the important points of the state licensing law with which you and your salespeople are expected to comply. (See Making it legal Looking at license law, earlier in this chapter.)

Setting office policy Rules are rules

Formulating and periodically updating an office policies and procedures manual is a suggested means of at least partially fulfilling your training and supervision obligations as a broker. This manual is distributed to all employees along with training in the procedures provided as necessary. Because most salespeople work as independent contractors (see the next section), the policy and procedures manual needs to rely on words like suggested and recommended rather than must. The subjects contained in an office policy manual can range from dealings with attorneys and other professionals to record keeping, using supplies, and attending sales meetings.

My Own Way Working as an Independent Contractor

Most real estate salespeople work as independent contractors for their brokers. The typical working relationship between a salesperson and a broker is somewhat unusual, one that affects everything from taxes to daily work. In this section I'll explain this relationship and some of the issues you need to understand for exam purposes.

The price isnt right Price fixing

In the real estate industry, antitrust laws essentially have been taken one step further as a result of a famous court decision in a case called United States versus Foley. The result of this case determined that even if no actual consultation occurred between individuals about price fixing, the mere discussion among competitors of prices for services is considered an invitation to fix prices and therefore violates antitrust law. As a result, the industry operates on the principle that discussing fees between brokers is illegal unless the brokers are cooperating on the same deal. Fees may be discussed in-house between brokers and salespeople and brokers, salespeople, and clients. In other cases, the courts determined that local Boards of Realtors can neither dictate, recommend, nor publish rate schedules.

Review Questions and Answers

For the most part questions in this section are aimed at people taking the broker's exam. In general, the exam may focus on broker responsibilities, license law issues, and the independent contractor status of salespeople. The antitrust questions may be on both the salesperson's and the broker's exams. You also need to check whether property management is a subject you're expected to know for the test at the license level you're going for in your state. 2. A division of a community along geographic lines for purposes of listing homes for sale by two salespeople working for the same broker is 10. Because of the independent contractor status of most real estate salespeople, a broker

Picking sides Representation in agency relationships

CjftClffy I talk about the relationship between brokers and salespersons in Chapter 3, but I want to say ' something more specific about brokers, salespeople, and the agency relationship. Licensed real estate salespersons work for and under the authority of a licensed broker. The agent in an agency relationship is the broker. The salesperson is considered an agent of the broker and a subagent of the seller or buyer (depends on who the broker is representing), forming one of the more common types of subagencies. However, enlisting the help of other brokers in the sale of a property is equally as common an idea. This can be done through a local multiple listing service (see Looking at listing agreements later in this chapter) or with individual brokers. These other brokers, who often are called cooperating brokers, also may become subagents of the seller. (It's not common to enlist the aid of other brokers when a broker is representing a buyer.) The point is you need to check out the...

Leads Lead Generation vs Lead Receiving

Nothing is more important to your sales career than prospective buyers and sellers. To have a viable business, you simply must have the client leads. To have a business that pays you a lot of money, you will need a lot of leads. Funny, but some real estate agents miss this not-too-subtle point and end up spending their time on other less financially rewarding activities. I can't tell you why this is, but let's be perfectly clear about it in this

Thats Right Today You Definitely Get Organized

If you have been a successful businessperson, particularly in a commissioned sales job in which you worked with the general public, you know what it takes to do the job. One of the most immediately successful of my former students was an intelligent, personable, hard-working woman who made the transition from Avon Lady to real estate sales. If you've had sales experience, whatever worked for you before will likely work again. However, real estate is just different enough to make it worth your while to consider some of these ideas. If you have had little or no previous work experience, or none in sales, you will want to pay particular attention.

Think Success And Rate Your Progress

Growth Potential She has the leadership ability to be an outstanding broker and the technical skills to excel in any specialized field she may select. Will be well prepared to achieve future goals because of diversity of activities in which she has engaged as a residential sales agent. who have had extensive experience supervising new salespeople, and it may be useful to you in establishing your goals and grading yourself.

Real Estate Sales Success

To be highly successful in your real estate sales career it is important that you understand that you need not only to think like a businessperson you need to become one as well. You must take on the actions of a successful business in order to have one. Models are about action. These four models represent the four major arenas in which you must take effective action to build your real estate sales career to its highest level of success.

Overcoming rejection and staying resilient

When most salespeople quit If prospects always said yes, real estate agents wouldn't be salespeople. Instead they would be called order takers. They would just take someone's order, confirm its accuracy, and fulfill it as if they're working the counter at the local McDonald's, with no selling involved. Study after study has confirmed that most salespeople quit long before the sale occurs because they can't take the rejection. For example 1 44 percent of salespeople quit trying the first time the prospect tells them no. In other words, at the first point of resistance, nearly half of all salespeople quit trying to win the sale and earn a commission. 1 22 percent of salespeople quit the second time the prospect says no. That means that two-thirds of salespeople eliminate their chance of a paycheck after two small roadblocks. 1 14 percent of salespeople quit after the prospect says no for the third time. 1 12 percent of salespeople quit and go home after a fourth no. Imagine that 92...

Newspapers and Other Publications

To search for potential bargain sellers in the newspaper, also look beyond the classified ads. Locate names of people from the public notices births, divorces, retirements, deaths, bankruptcy, foreclosure, or marriage. Each of these events can trigger the need to sell real estate. If you contact these potential sellers before they have listed with a sales agent, you stand a fair chance of buying at a bargain price. (In addition, you might subscribe to the default or foreclosure lists and newsletters published in your area. Buying foreclosures is discussed in Chapter 6.)

Setting the mood with lastminute touches

I personally believe that all this kitchen activity advances the wrong message to prospects. They aren't looking for the next Emeril. They're looking for a sales professional to represent them in the largest single transaction of their lives. My advice is to save the time you'd spend baking cookies and invest it instead into development of your sales skills. Find out how to convert an open house guest to a buyer or seller prospect by addressing that person's interests and needs, and you'll never need to don an oven mitt.

Qualifying Your Prospects

Many salespeople, especially in real estate sales, think they'll offend the customer if they ask questions. Here's an analogy that should put your mind at ease Imagine you're sick and you schedule a doctor's appointment. You arrive, the doctor enters the examining room, and you look up and say, Guess what sickness I have today From across the room, the doctor is supposed assess your symptoms, diagnose your ailment, and prescribe a cure without checking your ears and throat, listening to your lungs and heart, and, most importantly, asking you questions about what's wrong and about how you feel. It sounds ridiculous, but it's what real estate agents do when they try to serve clients without first asking questions to qualify their wants, needs, and expectations.

Fundamentals for Presenting Listings to Qualified Prospects

A quality listing presentation involves considerable planning, careful research and analysis (see Chapter 10 for details on performing a competitive market analysis), and highly developed presentation and sales skills. By taking these measures, you derive maximum impact from the little time you have to present yourself and your recommendations, close the deal, and obtain signatures on a listing agreement. This section guides you as you prepare a presentation that displays all of your sales skills and abilities and helps you win your prospects' confidence so that you can secure their listing.

Make your presentation useful and interesting

What the prospect has to say is more important than what you have to say. Great salespeople do less than 25 percent of the talking. You already know all that you need to know about what you're thinking. You need to figure out what your prospects think, know, and desire so you can match your service to their wants and needs.

Focus on four keys to a great delivery

jWNG.' One study after another has shown that your body language and tonality account for over 90 percent of your presentation's effectiveness. What you actually say accounts for less than 10 percent of the delivery. If you're scrambling to find the right words, as most salespeople are, you're spending your energy in inverse proportion to what impacts your effectiveness.

Potential Conflict of Interest

Although most foreclosure specialists will work to find you a good deal, potential conflict of interest does arise in the sale of HUD homes. First, if you do not submit a winning bid, your sales agent does not earn a commission. An unethical agent could pressure you to raise your bid even if the value of the property doesn't justify a higher price. Second, sales agents may submit bids from competing buyers who are bidding on the same property. If you bid 80,000, an agent could tell another more favored buyer to bid 80,100. You lose. Third, HUD typically pays brokers who submit a winning bid a 5 percent sales commission plus, on occasion, a 500 (or more) selling bonus for designated properties. Again, this reward may encourage the agent to push you to bid high.

Recruiting New Licensees

In the last few years, the number of new licensees entering the real estate industry has exploded in the United States. In California alone, there has been an increase of over 60 percent in the number of new agents. As a company owner with limited resources and a desire to protect the quality of the company, a broker has to be careful about how much time is spent on recruiting new licensees and about who is selected to join the company. Statistically, we know that as many as 50 percent of new licensees who enter the real estate business will leave the industry within one year. Furthermore, half of the remaining 50 percent will end up leaving the business within the following two years. This means that on average, only an estimated 25 percent of the agents who become licensed will in fact remain practicing salespeople or brokers. The importance of this is that if a broker were to simply hire any new licensee who is willing to join the firm, the broker would statistically waste a lot of...

Step 2 Group Coaching

The next step for training new licensees requires them to participate in a weekly or biweekly coaching class with the broker, a sales manager, or other mentor. Group coaching sessions typically have four to six new licensees in attendance and are basically training classes that last for one to one and a half hours. Each week, the leader trainer should review the agents' production activities and discuss one training subject area in depth. The trainer should also emphasize debriefing the weekly war stories of the agents

Make Certain All Decisionmakers Will Be Present

One of the biggest mistakes people make in negotiating is not meeting with all of the decision-makers. Car dealers love to play this game using the old higher authority scheme. Rather than committing to a price, they insist they must go back to the sales manager for approval. Professional salespeople always test the waters throughout the sales process by inching their way towards closing the deal. Ask questions throughout the telephone

Real Estate Sales Management

Working as a Designated Broker or Sales Manager In large, active offices it is not unusual to encounter a sales manager whose job it is to supervise, train, and motivate the sales staff. The manager If you are an outstanding salesperson, your broker (or another broker) might offer you such a position. It can be a tremendous opportunity, but do not automatically jump at it. On the plus side, you could expect to lead a more normal lifestyle (although, as a salaried employee, you would be expected to be available whenever your salespeople needed you, and that could be almost anytime). Your income will also be more stable, because you will not be entirely dependent on putting deals together to get paid. The mistake most brokers make is to assume that top sales agents automatically make top managers. That is not necessarily the case. You see the same thing in sports, where the superstar athlete often fails as a coach. It takes special skills and personality traits to become a good...

Obligations to Your Agent

When you employ an agent to sell your property, the selling process becomes a joint effort. First, get your property in tip-top shape. Second, allow the agent to show the property without your interruption and distraction. Would you like your boss looking over your shoulder when you are doing your job Third, if you have signed an exclusive-right-to-sell listing contract, refer all prospective buyers you meet to the sales agent. Let the agent do what you are paying him or her to do.

Finally block some flextime

Sales professionals in the top 10 percent of their industries share a common trait They control, use, and invest their time more wisely and effectively than their lower-performing associates. Among sales professionals, time usage determines income. The most significant challenge for most sales professionals is time control. Through years of study and coaching sales professionals, I've compiled the following list of challenges that most sales people experience when trying to master their time-block schedule.

Good Contact Management System

You can track your contacts the old-fashioned way (on notecards), but you'll outgrow that quickly. My advice is to invest in a CRM (short for customer relationship management) software package. Many of the software packages available, such as ACT , GoldMine, SharkWare, and www.Salespeople.com, are specifically designed for salespeople. The purpose of a good CRM is to coordinate your leads and lead-management activities. An agent with a CRM can send e-mail, mail merge letters, and make phone calls with the touch of a few keys. They are able to track and follow-up on leads without having to remember to do it. The CRM does the work of reminding them and generating the contact with the prospect.

Number Based Business Plan

Too few salespeople follow business plans that encompass the sales ratios and numbers of the real estate business. They don't know, or take the time to calculate, the number of contacts needed to generate a lead, the number of leads needed to generate an appointment, the number of appointments needed to create a committed client, or the number of committed clients needed to generate a commission check. Once you know these numbers and your average commission check amount, you can calculate how to make any amount of money you desire to earn.

Appreciating Appreciation and Depreciation

Real estate salespeople and brokers, buyers, and sellers always are interested in how much a property's value has increased or decreased. Investors, real estate brokers, and salespeople may want to know what tax benefits of a property are attributed to depreciation, although more often than not, an accountant needs to be doing these calculations for an investor. Test writers expect you to know the basics of how to calculate appreciation and depreciation.

InHouse Lead Generation Program

Sales manager, 263 Cliff has over 22 years of experience in real estate brokerage and training. Working in both independent offices and corporate franchises has given him a wide range of experience and the clear ability to walk the talk. His brokerage leadership roles have included broker owner, branch manager, sales manager, recruiter, estates director, and trainer for such organizations as Anthony Schools of Northern California, Jon Douglas Company Realtors, Prudential California Realty, and the California Association of Realtors. He has earned accolades as a top recruiter, trainer, and manager, specializing in start-up companies and turning around nonproductive offices.

The Hiring Path of the Millionaire Real Estate Agent

So many agents make the mistake of seeking sales support first, usually buyer agents. As we've asserted before, salespeople are not by and large particularly talented at creating and implementing systems, nor are they the best people to identify and employ the proper tools for your business. In essence, agents who hire a buyer agent first have hired someone who is poorly suited for at least half of his job. In our experience, an agent should first hire administrative help. This allows the agent to focus on more dollar-productive sales activities such as lead generation, buyer appointments, and listing appointments. Depending on your personal production limits, your first, second, and possibly even your third hires will be talented administrative help. The idea is eventually to reach a point where you are wholly focused on lead generation, listing, and selling while your administrative team handles everything else in your business. Only after reaching that point, when you find you have...

Gaining customers no matter the market conditions

But when the market slows, as it inevitably will, real estate success becomes less automatic. Only great sales skills guarantee that you instead of some other agent will win clients no matter the market conditions. The best agents make more money in a challenging market than they do in a robust market. Regardless of economics, every market contains real estate buyers and sellers. No matter how slow the economy, people always need and want to change homes. Babies are born. Managers get transferred. Couples get married. People divorce. And with these transitions, real estate opportunities arise for those with the best sales skills.

Developing sales ability to win customers

It's hard to believe that probably 95 percent of agents lack top-level sales skills. In my career in training and coaching, I've met tens of thousands of agents. Very few, even at the top echelon of earnings, have had any formalized sales training. Whenever I speak to agents, I always ask the audience how many have taken any formalized sales training, and I usually see only a few hands out of the hundreds in the room. The other reason I know sales skills are lacking is because I coach some of the best and highest-earning agents in the world, and even they believe their sales skills can use improvement. Many agents tape their prospecting sessions or listing presentations, but I have yet to meet one who feels that they've nailed their sales skills. The difference between these high-earning agents and other agents is that the high-earning agents realize that sales skills are vital to success and they continuously seek excellence in this area. To follow the high-earning agent's example,...

About This Book

This book is about becoming a successful real estate agent, for sure. It's also about acquiring sales skills, marketing skills, time-management skills, people skills, and business skills. It's about gaining more respect, achieving more recognition, making more money, and closing more sales. It's a guide that helps you achieve the goals and dreams that you have for yourself and your family.

Overview

Several years ago at a real estate sales seminar, I had an interesting conversation with another real estate agent. The revelations that emerged from that conversation have since proven essential to my ability to consult with salespeople. Here is my best recollection of how that conversation went Honestly, I was a little taken aback by the question. Sure, I was in management, but I'd been a successful real estate agent before our company was formed, and, frankly, I really still thought like one. In life, one of the toughest obstacles we can face is the difference between how we see ourselves and how others see us. What lies in between the two perspectives can be an obstacle to effective communication and a source of misunderstandings. A big part of my job has been working with top real estate salespeople, and I'd been doing this for more than twenty years. It had never occurred to me that someone might not see me as a real estate agent myself, so I decided to ask a few probing...

The Parttime Option

However, many brokers throughout the country accept part-time salespeople. Thirty six percent of all Realtors classify themselves as part-time, meaning they work 39 hours a week or less. Among non-Realtors, the figure is probably higher than that. Many have worked out satisfactory relationships by carefully defining their roles and making themselves available on a predictable, but reduced, schedule. I had one broker tell me, I've had a few part-time agents who accomplished more in an abbreviated work week than some of my full-time people.

Teach me Training

Brokers are expected to provide training to their salespeople. Most states require prospective salespeople to receive formal training through prelicensing courses before they can get a salesperson's license. Even though this training gives you the basic background and the minimum amount of knowledge that the state requires you to have to work as a real estate agent, it often does not cover the day-to-day real world activities of an agent. Brokers are expected to provide that day-to-day type of training. In addition, each broker may have a slightly different way of doing business, keeping records, and so on, and brokers are expected to provide such information to their salespeople.

Networking

The truth is that most salespeople talk about networking more than they actually do it. They attend a Chamber of Commerce or Rotary Club meeting, have an enjoyable lunch, visit with a few friends, and chalk the time up to networking even though no new alliances were formed, no existing alliances were deepened, and no referral sources were generated. In other words, no true networking took place.

Agent Services

Similarly, if a changing ethnic or racial composition of a neighborhood is affecting property values (either up or down), a sales agent would avoid discussions along those lines. The U.S. Department of Justice (DOJ) and the U.S. Department of Housing and Urban Development (HUD) have decreed that neither ethnic, religious, nor racial demographics affect property values. Hence any real estate agent (or appraiser) who disagrees with HUD or DOJ can be held civilly and criminally liable for damages.

Cold Calls

Which means calling people who advertise in the newspaper. The average success rate for investors from doing cold calling is about one to three in a hundred. These odds are small, but not inconsistent with any other sales job that requires phone selling. The payoff, however, is much bigger.

Conviction

In my presentations, I expressed my conviction that sales skills were an essential skill that I had that most agents didn't. I also was passionate about my conviction that open houses didn't sell homes. I told my sellers that I wouldn't inconvenience them with open houses like most agents would. Finally, I told them that an agent with high sales numbers in units sold was a more skilled agent than one with a high sales volume because they had a higher average sales price.

Confidence

I believe that confidence was the secret edge in my early sales career. Even when I was new to the game, I was confident that I was the best agent for the seller. This confidence was the result of a deeply grooved expectation of victory that came from my participation in athletics.

Two More Drawbacks

Second, real estate agents want to be paid in cash at closing. When a sales agent expects to pull anywhere from 10,000 to 50,000 out of the owner's equity, it squeezes your negotiating range. The amount of that commission comes straight from monies that would otherwise be available to you, the lenders, and the property owners.

Are Buyers Liars

So, under our scenario, your potential buyers likely have no legal obligation to any agent. They can work with whomever they choose, whenever they choose. Some salespeople are devastated when they learn that buyers with whom they were in contact bought through someone else. If you are doing things correctly that will not happen often, but it will happen. When it does, you should analyze what you did wrong, or someone else did better, but there is nothing to gain by feeling betrayed. Buyers are concerned with their best interests, not yours, and that is perfectly understandable. You will thoroughly enjoy working with almost all of them, and most will display a remarkable loyalty to you but there will be losses. Most buyers are not liars, although they may sometimes tell you what they think you want to hear to avoid hurting your feelings or to take the pressure off themselves. Reverse the roles and we would likely do the same.

Closing A Sale

In sales terminology, a sale is closed when customers sign their names to whatever documents are necessary to approve the transaction. In real estate it happens when a buyer signs the offer to purchase. (Do not confuse this with the closing that takes place later when all legal documents are signed and the ownership of property is formally transferred.) There can be no argument as to the importance of the closing step in the initial sales process, because without it, the commissioned salesperson never makes any money. There are, however, basic philosophical differences among those in the profession about how salespeople should conduct themselves in working with customers in reaching the critical buying decision.

Listing Contracts

Note that my preceding advice stresses termination in good faith. You should have a justifiable cause for canceling. For example, a case where a sales agent of the broker made unauthorized disclosures to buyers would be good cause to terminate. Most reputable brokers will permit cancellations of this nature. Obligations of the Sales Agent Although the listing agreement sets forth a legal relationship between you and your brokerage firm, require your sales agent to go substantially beyond the bare-bones duties spelled out in the listing agreement. More specifically, the listing firm and your agent should perform these selling activities The sales agent should help the buyer work out the necessary financing for the purchasing of your property and should not receive a kickback from the lender (this is done in some areas when certain lenders want to encourage sales agents to bring them mortgage business). Sales agents should not make contract concessions without your express permission...

Survey Results

The purpose of the survey was to examine possible causes of attrition in real estate. Three hundred forty-nine active, licensed real estate salespeople and brokers participated. To show major trends, Very important and important responses were combined, as were very unimportant and unimportant.

Personal Exercise

Define the attributes you would look for in a sales manager and an office training director. IMPACT OF THE RIGHT SALES MANAGER A manager took over a dying office and immediately proceeded to find a sales manager to help in the recruiting effort that would be required to rebuild the office. The manager first solicited names of potential candidates from his current agents, and one candidate's name, Mary S., was submitted by several agents. Mary S. was a mentor at the number 1 office in the marketplace. As a mentor for the last two years, she had trained over 20 agents. The broker met with Mary S. and offered her the position of sales manager, with the promise of a strong training program and the eventual leadership of the office. Mary S. joined the firm as a sales manager and within 120 days had recruited over 20 agents from her former firm. Most of these agents had worked with Mary S. as their trainer, so they were just starting to really launch their careers. She further recruited an...

Support System

I think you'll find that with many successful people in life, there is a spouse, child, friend, parent, or significant partner that contributed mightily to their success. For example, I would never have had the success that I had in my real estate sales career had it not been for my wife. Countless days I'd go home feeling dejected, frustrated, and beaten up. Some days I even felt that I wanted to quit. She would listen, care, and love me. Then she would encourage me to remember that even though today was a bad day, tomorrow would be better. She told me straight out that she believed in me and knew that I was going to be successful. To this day, I believe her support role caused my success to happen.

Report

Executive Overview During the last five years the real estate industry has absorbed an influx of newly licensed agents at a rate and number that has shattered all records. Simultaneously, brokers and agents have been bombarded with new business models, the Internet, bundled services and specialization. The need for true knowledge and fundamental sales skills has never been more prevalent and essential than today.

Being Inconsistent

To a real estate agent, the consistent activities of daily prospecting, daily lead follow-up, daily practice of sales skills, daily personal development, weekly planning, and scheduled evaluation time create exponential return compared to the effort invested. On the other hand, occasional bursts of activity create work with little payoff.