Thanks for the Recommendation!

We all love it when someone recommends us but it’s especially sweet when a competitor tells the world how phenomenal we are! Yep, that’s exactly what happened earlier this week when one of our friendly competing firms broadcast an email to probably every agent in Metro Indianapolis touting “5 Lessons Real Estate Agents Can Learn from Warren Buffett!” Their lead in to Uncle Warren’s 5 Lessons included these words of wisdom: “Here are five key lessons you can learn from . . . one of the greatest investors of all time.” I wonder if our competitor forgot that one of Buffett’s most widely noted recent investments was in us here at Berkshire Hathaway HomeServices! Thanks for the recommendation!

Anyway, here are Uncle Warren’s key lessons for Realtors:

1. Thoughtfully invest. Research your properties. Get to know the neighborhoods, the people who live there and the people who want to live there. As a real estate agent, your primary investment is in people, and it pays to know your business.
2. Learn to communicate effectively. Buffett developed his public speaking skills because he knew his business hinged on quality communication. As a real estate agent, you need to feel comfortable not only speaking in a public forum, but also communicating in one-on-one situations with your clients, over the telephone and via digital channels such as email and social media.
3. Make networking a priority. Buffett is known for thought leadership, which involves connection and engagement. You can do the same by networking with respected industry leaders and influencers in your community. Become part of the big picture.
4. Stay in your lane. According to longtime associate Howard Marks, the co-chairman of L.A.-based Oaktree Capital Management, Buffett is "extraordinarily good at knowing what he's good at and what he's not, and staying away from the latter." Try new things and think outside the box, but always play to your strengths.
5. Be yourself and enjoy your work. Buffett concentrated on finding himself as an investor and pursued his business ventures accordingly. Figure out who you are as an agent—or who you want to be—and use that knowledge to guide your actions.

Yes, indeed, Warren Buffett can always be counted on for wise advice and for superior investment decisions—and we’re delighted to be one of those decisions!

Thanks for the recommendation!

David M. Hassler

VP, Professional Development

The Reticular Activator

A couple years ago, my car expired unexpectedly after 107,000 miles and I decided to consider that ultimate practical vehicle, a Subaru Outback. As soon as I started to think about them, Outbacks seemed to appear EVERYWHERE! They even showed up in nearly every driveway in my neighborhood. Who knew—was it magic? Of course, we’ve all experienced this phenomenon, and I had just tuned my interest and attention so that I actually noticed the Subi’s that had been there all along.

Thank you, Reticular Activator!

Whether it’s a new pair of boots, a new laptop, or a vacation to India, our brain heightens our awareness of things we are considering and we suddenly discover that nearly everyone we meet has just returned from New Delhi with a new pair of cobra-skin boots and the latest MacBook Air!

So, what’s this have to do with Real Estate? Enter Brian Buffini and Peak Producers.

We all know the key to long term success in our business is through relationships with folks—our sphere of influence—who can give us referrals to others who may be considering buying or selling. It’s our goal through all our calls, notes, popby’s, and great service to keep their Reticular Activator alert to thinking about real estate and their favorite Broker.

Brian Buffini, in his Peak Producer training, talks about the Reticular Activator and how he uses this awareness with current clients to get three—yes, THREE—referrals from each of them during the period of their active buying/selling process! Again, who knew? Buffini makes the point that, of course that current client is far more immersed in real estate than the average person, and is probably chatting about it with friends, family, neighbors, co-workers, and pals at the gym, ad infinitum. Our current clients’ Reticular Activator for real estate is on high alert.

Thus, Buffini tells us that we can help our current clients a wee bit by more finely tuning their Reticular Activator since no doubt in all their chatting about the process, they will surely meet other people who might be considering buying or selling, right? Buffini suggest that we REMIND our current clients to think about helping us by being aware in their conversations (that Reticular Activator) and proactively getting someone’s name or giving out our information when appropriate, ie, giving us a referral.

How three? Buffini suggests we should have three separate phases of great client satisfaction during our active buy/sell process, and that with each one, our client is highly likely to be happy to do their best to help us in our business by thinking about referring someone.

First, as we begin the process and have maybe done a first buyer tour or a first open house, we’ve impressed our new client with our expertise, our proactive communication, and of course our charm, so that’s the time to remind them they can help us with a referral.

Second, once we have an accepted purchase agreement, usually our clients are again delighted and excited, so we can once more remind them how they can help us with a referral.

Finally, of course, as we walk out after the closing and thank them with a gift of wine or chocolates or flowers, a third time we can remind them how much we appreciate their trust in us and their referrals of great folks like them.

Since our goal is to serve our clients so they are delighted with our excellent service, that little tweak to their Reticular Activator should yield a referral or two, if not more!

Thank you, Reticular Activator!

David M. Hassler

VP, Professional Development

Open House Toolkit

Open Houses are one of the oldest tools in the book for serving our clients and, if we’re very, very fortunate, maybe even generating a me and me sale of the listing right then and there! Yet a primary reason agents do them is to add new clients to our sphere. Even as technology changes and lead generation techniques have evolved, many agents still find Open Houses to be a consistent and significant source of new clients—especially agents newer to the business or just moving to a new one. Yet there seems to be a stark divide between those agents who love and succeed with them and those who can’t stand them and/or don’t generate any new leads. We seem to either love them or hate them!

And yet they can and do lead to more business and more money in the pocket.

So what might be some considerations to make this tool succeed for you—or yield even more business if you’re already successfully doing Open Houses?

First, let’s think about the numbers. If you plan to do two Open Houses a month, that’s potentially 24 a year. Assume maybe only four units—couples or individuals—for each time. That means you get to meet about a hundred new prospects face to face—at the top of that communication pyramid. What would be a good conversion rate for that time spent? If we gain even two new clients a year, at an average side of $200,000, that gives a return of as much as $14,000 in Gross Commission Income. Not a bad hourly rate! And of course if we add even just one name a month to our database and cultivate them for the future, how much value might those names add over a 20 year span!

Next, how do you optimize your chances of gaining the confidence of those lookers? A few thoughts gained from our coaching sessions suggest:

Confidence: The goal is to show those new contacts that you’re knowledgeable and that you can provide excellent, personalized service. We can show that by the way we represent the listing, including, among others, market information and stats and even the tradition of baking cookies—or even providing a roast at our own cost to bake during the Open House—and by engaging the lookers with a questionnaire about their feedback on the home on a clipboard, with of course a space at the bottom for their contact information in case the owner has a question.

Attitude: We all have unique personalities, so our approach will need to be genuine, yet the goal is to be there if the looker has a question, to demonstrate our knowledge and our personality, in order to build confidence. Yet neither to hover like a used car salesman nor to seem engrossed in the TV. A fine line, and based on the stats above, one where we will not succeed 90% of the time and yet we can still achieve good business results. Most lookers will feel it immediately if you’re overeager, so let them see the professional in you and feel honored at the next step.

Ask for the order: Amazingly, we hear that not all agents actually ask the looker, once they’ve laid the foundation, if they would like the agent to help them with their home search. Again, the number of folks you can ask that question will be a small portion of the total, but if you don’t ask when the time is right and the looker is smiling at you, your success rate probably won’t reach that 10% level!

Spring is on the way—okay we had snow in April and it’s near freezing this morning—so get into Open House mode and win over those new clients!

David M. Hassler

VP, Professional Development

Five Tips to Win a Real Estate Bidding War!

Here’s a great article from RealTrends this week:

Low inventory and high demand drive up prices and put buyers at a disadvantage in many markets, especially real estate. Real estate professionals need to know how to help homebuyers navigate a multiple offer situation, or they run the risk of losing out on the best properties. Great sales associates know you can win a bidding war by using a few smart strategies.

Here are 5 tips to help any real estate professional in this scenario:

Manage Client Expectations

Since you know your local market, you will know when a property is likely to attract multiple offers. Start the process with your customers by informing them of the possibility of a bidding war. Set expectations early by explaining what happens when multiple offers are made on a home. Help them understand that the seller may take time to review their offer and come back with something else.

Be sure your homebuyers have a threshold price in mind before bidding starts so that you can reference their “best-and-final” offer when emotions get high. Buying a home is always an emotional rollercoaster and even more so when in a multiple offer situation. As the professional, it is important that you keep your cool and provide a steady hand.

Know Reputable Lenders

Make sure your homebuyers are pre-approved and not just pre-qualified. This step lets the seller know that the buyers are truly serious contenders. Great sales associates will know where to direct their customers for pre-approval. Keep in mind that any businesses you recommend will reflect on you, so align yourself with a reputable lender.

Start With A Strong Offer

Naturally, all homebuyers want to get the best deal possible on a home. However, if you think multiple offers will be made, this is not the time to lowball. In fact, if your buyers are serious about the home, it may be time to offer more than the asking price. Increasing the earnest money offer at this time also shows how committed the buyers are to this deal.

Help Your Clients Stand Out

Offering more than the asking price is one way to stand out. Another way is to have your clients write a letter to the seller about why they feel like the house is the one. Buying and selling a home is an emotional process for both parties and sellers often prefer homebuyers who feel a personal connection to the home. A third approach is to drop additional contingencies in the offer. Commonly waived contingencies are the home appraisal and home inspection. Dropping the home inspection is a big step and should not be done lightly. We recommend a home inspection on all properties, but this tactic is used in highly competitive markets.

Coach Your Clients On Flexibility

With a seller’s market, it’s not unusual for homes to sell so quickly that the home seller hasn’t even found a new home yet. If the homebuyers are willing to work with the seller on closing and move out dates, it could sweeten the deal.

In any multiple offer situation, there will only by one winner and multiple losers. However, with these tips a real estate professional can work on their customers’ behalf to stand out and win the deal. Some of the happiest customers are those who won a multiple offer deal, because they know they could not have done it without you.

Great advice! Good luck out there!

David M. Hassler

VP, Professional Development

The Peak Producer "Rhythm of the Referral System"

Our Peak Producers training focuses on the key difference in truly Working By Referral versus the old “word of mouth” approach most of us fall into. The problem with the latter approach is that we’re still waiting for the phone to ring! When we work proactively t0 generate referrals, the goal is to develop a steady stream of business. To do that, we want to get into an ongoing flow, or rhythm, of a systematic approach. Here’s how:

1.    Add people to your database! Those weekly contacts with our client care database are the basic ingredient in the recipe for consistent business and growth. One hour of this kind of sales and marketing activity—the CEO or Rainmaker hat—is worth five hours of excellent client service—the COO or dealmaker hat—to building a consistent business.

2.     Build relationships! Through our consistent contact and care for your relationships so they come to trust and value us professionally.

3.    Provide excellent service! The basis of trust and value is our excellent service and commitment to our clients’ goals starting during a transaction—the COO hat—but also beyond as we serve them as their long term real estate adviser and show them how much we appreciate our relationship even when there isn’t a commission check at stake.

4.    Ask for referrals! Here’s where most of us stop, either because it feels a tad uncomfortable or because our COO hat gets so heavy we can’t lift our focus from the whirlwind of transactions. But that’s like putting all your hard earned dollars under the mattress instead of investing them and letting them work for you! Remember, if you don’t ask, you don’t get!

5.    Receive referrals! Yes, be open to referrals! So often, we get into a service mentality and don’t want to seem like we ever need anything from our clients. Remember, anyone giving us a referral really likes us to begin with and they want to see us succeed.

6.    Acknowledge and appreciate the referrer! Don’t wait to see if we get an actual client and make it to the closing table! That’s rewarding the results—and can be several months after someone gives us the referral. Instead, reward the behavior—their thinking of us and giving us the referral—and do it immediately so the referrer sees how much we appreciate their behavior.

7.    Turn that new lead (referral) into an advocate! Now that we’ve shown our client what excellent service really is, don’t treat the closing as a funeral! Remind them we love to help folks like them and how referrals allow us to focus on always providing the best service. Add them to your ongoing client appreciation program and keep in touch! (And yes, ask for referrals!)

Just keep this ongoing rhythm going with these seven easy steps to success in your career and a great life!