Success as a Real Estate Agent For Dummies
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- Gilbert Harrington
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2 Success as a Real Estate Agent For Dummies Table of Contents Cheat Sheet Preface Introduction About This Book Conventions Used in This Book What You re Not to Read Foolish Assumptions How This Book Is Organized Icons Used in This Book Where to Go from Here Part I: Acquiring the Keys to Real Estate Success Chapter 1: Developing the Skills of a Successful Agent The Proven Path to Real Estate Sales Success Steps to becoming a successful Agent Common characteristics of successful Agents Sidebar: What realtors are and are not 2
3 Embracing the Sales Mindset Selling is the name of the game Acquiring the most important skill Climbing the sales success ladder Playing the Listings Game Why become a listing Agent? Using listings to leverage your way to income and a quality lifestyle The listing Agent s unbeatable edge Viewing Real Estate as an Odds-Based Business Swinging the Odds to Your favor Chapter 2: Residential versus Commercial: Deciding Which Type of Real Estate is Right for You Sizing Up the Differences between Residential and Commercial Realtors Comparing apples and oranges What is residential real estate? What is commercial real estate? Weighing advantages and disadvantages 3
4 Pros and cons of a commercial real estate specialty Pros and cons of a residential real estate specialty Chart or Table: Residential and commercial real estate advantages, disadvantages, and differences at-a-glance Selecting Your Specialty Evaluating your risk tolerance Taking the 7-question litmus test Choosing your field Sidebar: Developing a Commercial Real Estate Specialty Changing Your Focus Moving from residential to commercial Moving from commercial to residential Chapter 3: Matching Up With the Right Agency Comparing Different Types of Agencies Large firms Small firms 4
5 Independent firms Franchise firms Who s Who and Who Does What in an Agency Principle broker Broker/Owner Broker associate Sales agents Office managers Receptionist Listing coordinator Closing coordinator Knowing the Rules Understanding the rules of the house Standard operating procedure Commission split arrangements 100% commission arrangements Weighing Your Agency Options Attributes of a good office Does size really matter? Prioritizing your values and expectations Creating Your Agency Short List 5
6 Doing your homework Interviewing broker managers: 12 questions to ask Making agency comparisons And the winner is... Joining Your New Agency Team Building a relationship with your manager Your manager s role in your success Earning respect from your manager Earning respect from your peers Forming partnerships Working with agents in your office Cooperating with agents in your marketplace Key office personnel Strategic partners Chapter 4: Researching and Understanding Your Marketplace Taking Advantage of the Value of Marketplace Knowledge Collecting marketplace information Industry resources 6
7 National resources Regional and local resources Analyzing the facts and figures Compiling a marketplace analysis Projecting trends on the horizon Putting Your Findings to Work Sharing your market research to build prospect relationships Distributing your findings to gain publicity Taking your findings on the regional lecture circuit Part II: Prospecting for Buyers and Sellers Chapter 5: Prospecting Your Way to Listings and Sales What Prospecting Is -- and Isn t Prospecting defined The purpose of prospecting Prospecting for listings Prospecting for buyers The difference between passive and active prospecting 7
8 The Four Pillars of Prospecting Putting Prospecting to Work How prospecting works Targeting prospects Going after the right people Setting and achieving goals and objectives Making contact Understanding and conveying your value statement Sidebar: The Hierarchy of value Shattering the myths There is no magic pill If it seems to good to be true Top producers don t prospect My clients don t want to be bothered Finding Safety and Success in Numbers The law of accumulation Consistency creates prospects and cash The never-ending prospecting cycle Keeping Track of Your Prospect Contacts Staying in Touch 8
9 Keeping Your Pipeline Full Chapter 6: Mining Gold from Referrals Building a Referral-Based Clientele What is a referral? Sources of referrals Current clients Past clients Networking Business and social contacts Three golden rules for referrals 1. Be referable 2. Mine your contacts 3. Leverage your relationships Developing Your Referral Strategy Defining the type of referrals you seek Setting your goal Targeting your referral sources Listing, evaluating, and tracking referrals: Popping the question 9
10 Approaching your referral sources Asking the right questions at the right time Making the request Skills development Sample scripts Keeping it simple: Referral request do s and don ts Establishing Relationships with Referrals Making first-time contact Knowing the objective of your call or visit Using the name of your referral source to open doors Sample scripts Converting referrals into clients or referral sources Personal visits and calls Written notes, messages and mailers Newsletters Printing and mailing newsletters Sending e-newsletters to opt-in mailing lists Client Appreciation Events 10
11 Chapter 7: Winning Business from Expired and FSBO Listings Turning Bad Listings to Good Business: The ABCs of Expired Listings What constitutes an expired listing? Why and how to engage an expired listing What to say and how to say it Sales skills Sample scripts Working an uneven playing field Entering the For-Sale-By-Owner World How FSBOs work How to find FSBOs The Successful Agent s Approach to Converting Listings Organizing your plan of attack Targeting your prospects Defining your territory Making contact Putting the postman to work Dialing for dollars 11
12 Overcoming rejection and staying resilient Sidebar: When most salespeople quit The game of lead follow-up Getting face to face Building relationships Honing your competitive skills Outflanking competitors and FSBOs Getting through the door Face-to-face encounters Mail contacts Providing service to cement relationships Losing the battle but winning the war Chapter 8: The Ultimate Prospecting Tool: Planning and Hosting a Successful Open House Why Host an Open House? A chance to meet potential clients face to face A way to meet the needs of dual-income families A means of catering to the do-it-yourselfer s home buying needs 12
13 Setting and Achieving Open House Objectives Planning Open Houses to Gain Maximum Exposure Featuring a high-appeal home Leveraging the power of street appeal Landscaping Paint color Creating a neighborhood event Featuring a home with an upper-middle price point Leading prospects to the open house Managing the Open House Before prospects arrive Be ready to present the home you re featuring Be ready to discuss other available properties Shoo the homeowners out the door Implementing last-minute open house touches During the open house Following the open house Chapter 9: Presenting and Closing Listing Contracts Qualifying Your Prospects 13
14 Why and how to qualify prospects Checking your prospect s DNA D for Desire N for Need A for Ability and Authority Presenting to Qualified Prospects Creating a quality presentation Knowing your purpose and key points Making it useful and interesting Keeping it short and sweet Four steps to a great delivery Conviction Enthusiasm Confidence Assertiveness Staying in control Setting the agenda early-on Following a structure for success Dealing with Sales Objections Delaying objections Handling objections in four easy steps 14
15 The power of the pause Acknowledging concerns Isolating concerns Responding with confidence Asking for the Order Bringing the Presentation to a Natural Conclusion Part III: Developing a Winning Sales Strategy Chapter 10: Determining a Home s Ideal List Price Conducting a Competitive Market Analysis What is a CMA? Creating a short-cut CMA Using the CMA as your primary pricing tool Weighing the CMA factors Sold properties Pending properties Active properties Expired listings Taking CMA results with a grain of salt 15
16 Developing Your Pricing Philosophy Getting the listing at any cost Starting high and reducing later Coming in on-the-button Sidebar: The Magic Marketing FormulaFive Steps to Successful Price Reductions Rules to Follow When Taking Over-Priced Listings Chapter 11: Getting the House Ready for Showing Counseling Clients on Home Improvements Improvements that contribute to the sales price Improvements to skip Passing the Curb Appeal Test Landscaping Exterior paint condition and color Prepping the Interior of the Home Staging the home Removing clutter Simplifying traffic flow Toning it down 16
17 What stuff to keep and what to remove Ways to make a difference without getting carried away House clean-up checklist Final Ways to Make a Great First Impression Enhancing the first glance Letting the buyer move in Tips of the home-showing trade Chapter 12: Marketing Properties Online and in Print Creating Your Marketing Message Positioning the property Why positioning is important How to develop the property s positioning statement Writing high-impact advertising copy Defining your target audience Emphasizing benefits versus features Calling for action now! Staying legal 17
18 Federal Fair Housing Law basics Advice to follow Examples to avoid Promoting Properties Using Flyers Creating successful inside-the-home flyers Creating successful outside-the-home flyers Design and production tips Spreading the Word Online Using Realtor.com Putting your Agency s Web site to work Creating your own Web site Deciding whether or not to build a site Attributes of a good site Using a Web site template Creating a customized site Enhancing Exposure via Virtual Tours Producing a virtual tour Steps to follow Mistakes to avoid Resources Leading prospects to your virtual tour 18
19 Including a virtual tour with your listing Embedding your Web site link into the tour A Picture s Worth a Thousand Words Taking digital photos Capturing the best images Choosing the best shots Featuring enough (yet not too many) photos Chapter 13: Negotiating the Contract and Closing the Deal Preparing for the Final Step Setting the right tone Keys to representing a seller Keys to representing a buyer Advice for partnering with the other agent Advancing or Accepting an Offer Extending a seller s low offer Extending a buyer s low offer Dealing with receipt of a low offer Taking the insult out of an insulting offer Getting beyond emotion 19
20 Turning concessions into victories Dealing with I-win-you-lose clients Creating a win for all Reaching and Closing the Deal Forming a Closing Team and Working With the Players The loan officer The home inspector The appraiser The escrow closer Avoiding Derailment Three choke points of a closing 1. Underwriting of the buyer s loan 2. Repairs, repairs, repairs 3. Documentation and verification Timing is Everything Reading buying signals Moving at the right moment Making the transaction easy 20
21 Part IV: Running a Successful Real Estate Business Chapter 14: Staking Your Competitive Position Calculating and Analyzing Real Estate s Big Three Statistics Average list price to sales price Average days on the market Average listings taken versus listings sold- Interpreting the Findings Determining sales trends Comparing the performance of other agencies and agents Comparing sales numbers and sales volume Comparing agent productivity Assessing your own performance against market-area statistics Pinpointing your competitive advantage and market niche Increasing Your Slice of the Market What is market share? How to calculate market share How to increase penetration in your market 21
22 How to gain dominance in your market niche Conveying Your Competitive Advantage in Prospect Presentations Defining your unique competitive position Proving your excellence: You don t get paid for second place Chapter 15: Building Credibility and Trust Building Credibility What buyers want What sellers want Techniques for raising your credibility quotient Gaining Trust Why realtors struggle to achieve trust Overcoming built-in obstacles: Trust-development techniques Using questions to build trust Using confirmation processes to ensure you re on the same page 22
23 Chapter 16: Keeping Clients for Life Calculating Your Ideal Client s Lifetime Value The value of a transaction The value of a referral The value of a testimonial The value of repeat business Achieving Relationship Excellence Knowing what you stand for Promising, then flawlessly delivering Viewing the closing as a starting point, not a finish line Creating After-the-Sale Service Setting a service agenda for the first 30 days after the sale Establishing an ongoing communication strategy Using direct mail Staying in touch via Picking up the phone Showing appreciation The power of a thank you note 23
24 The difference between unique and one-size-fits all Exceeding expectations Creating different approaches for different clients One-time or transactional clients Long-time or relationship clients Establishing Awesome Service Developing a service plan Surprising clients with thoughtful gestures Exceeding even your own high standards Extending extra touches that create gold Chapter 17: Maximizing Your Time Spending Less Time to Accomplish More Treating time as your most valuable asset Reorienting your mindset Starting to work smarter, not harder Understanding Pareto s Principle: The Rule Making time for the things that impact your success 24
25 Weighting your time to what matters Focusing on income-producing activities Addressing production-support challenges Setting an 11:00 rule Avoiding time-consuming fires Time-Blocking Your Way to Success Setting your schedule in time blocks Blocking an appointment time for every task Avoiding time-blocking mistakes Killing the Time Killer Called Procrastination Moving forward with a clear vision Knowing your objectives Setting your priorities Giving yourself deadlines and rewards Carpe Diem: Seize Your Day Stop wasting time Stop letting others waste your time Manage interruptions Keep phone calls short Use your car to gain efficiency and career advancement 25
26 Part V: The Part of Tens Chapter 18: Ten Essential Tools for a Successful Real Estate Agent Chapter 19: Ten Tips for Landing a Listing Chapter 20: Ten Tips for Making a Sale Chapter 21: Ten Biggest Mistakes and How to Avoid Them Chapter 22: Ten Best Web Sites for Real Estate Index and Back Matter Total page count = 384 pages 26
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