As a real estate agent, one of your main jobs is to help people navigate through what will undoubtedly be one of the biggest financial transactions of their life: buying a new home. But keep in mind that Read more...
As a real estate agent, one of your main jobs is to help people navigate through what will undoubtedly be one of the biggest financial transactions of their life: buying a new home. But keep in mind that you need to approach this in more than just a literal sense. Yes, the "nuts and bolts" process of buying a home is as difficult as it is time consuming, so people are going to need someone they trust (read: you) to help make sure that everything proceeds exactly as it should.
But there are a lot of agents out there who can help people BUY a house. They're also going to need your assistance in terms of FINDING that perfect house to begin with. They don't just want any old house - they want "the one" that is everything they've been searching for and then some. Therefore, in an effort to help your clients choose that home of their dreams and walk away as satisfied with the process as they'd always hoped they would be, there are a few key things you'll want to keep in mind.
Provide Objective, Constructive Insight About the Home
By far, the most critical thing you can offer your clients as they search for a new home involves objective, constructive insight whenever possible. Even if a client walks through the door and is immediately enthusiastic about the property, you still need to make sure that they're thinking clearly.
Help Them Weigh the Pros and Cons of the Home
This means helping them weigh both the pros and the cons. Consider things like the status of the property and even the age and let them know what they might expect five or even ten years down the line. No home is perfect by any means and part of being a homeowner involves dealing with unexpected issues. Use your experience to offer guidance about THIS property in particular and make sure they understand the situation from all angles.
Determine the “Wants” and “Needs” of Their Dream Home
Likewise, go through a checklist of "wants" and "needs" with your clients and see how a particular property aligns with those goals. What are the elements that a client's "absolute perfect" home MUST have? How any of those boxes does this particular property check? What are the odds that they're going to be able to find a home that meets every last qualification on their list? These are the things you need to be thinking about to help someone make the most informed decision possible.
Assess How Your Client is Feeling About the Home
Of course, there are certain questions you need to ask of yourself during this period, too. Chief among them is simply "how is the client feeling right now?" Are they excited to the point where they can't stop thinking about the property? Are they already to the point where they're thinking about furniture placement and they can see themselves building a life in this house? If they are, the chances are high that you might have helped them find "the one." If they're not, you'll likely want to continue your search, at least for awhile.
Consider the Aspect of Time
Finally, you need to consider things from the perspective of time - something there just isn't as much of as people want. How much longer can the client keep looking? What are the current market conditions, and how fast is a property like this one likely to stay on the market? Is inventory high enough where it's even possible to keep looking for a new home indefinitely? Even if someone looks at a home and doesn't consider it to be "the one," can they work with a general contractor and eventually get it to that point one day? This may be what you need to recommend if this property is likely to move fast.
While it's possible to follow all of the best practices outlined above and STILL not locate "the one," doing so will still put you in an excellent position to offer as much value to your clients as possible and help them get over the house that got away. That's not just how you help someone buy the home of their dreams - it's also how you turn them into a loyal, lifelong client who will continue to return to you for years to come.
Love,
Kartik
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Without a doubt, real estate is primarily a sales-driven job. Regardless of how skilled a particular agent happens to be, getting objections from both buyers and sellers is a common part in the daily life Read more...
Without a doubt, real estate is primarily a sales-driven job. Regardless of how skilled a particular agent happens to be, getting objections from both buyers and sellers is a common part in the daily life of a Realtor . Sometimes they'll be completely legitimate concerns and it's part of your job to ease the client’s mind. On the other hand, on occasion there are instances where the client may be acting more out of emotion and not reason, and you'll need to figure out how to deal with those types of situations, too.
How to Handle Common Real Estate Objections
Still, HOW these objections are handled - and knowing what to say and how to say it - will no doubt lead to more sales moving forward. Therefore, if you want to get better at handling objections from both buyers and sellers, there are a few key things you'll want to keep in mind.
Take the Time to Understand Their Point of View
By far, the most important thing to keep in mind when fielding an objection from anyone is that you need to be proactive about trying to understand someone's position. Don't just think literally about what the objection is - try to go beyond the words and really get a sense of where this is actually coming from.
Buying or selling a home is a major transaction (not to mention a significant moment in someone's life), and that's naturally going to put people on edge. Likewise, some people are simply more risk adverse than others. By really trying to understand someone's position and by getting a better sense of their point of view, it can help focus on exactly what you need to say to move forward with the deal, and how to best present it moving forward.
Be Sure to Validate Their Opinions
Similarly, you'll also want to make sure that the prospect feels validated. Don't simply write off their concern as irrelevant because that's only going to put you farther away from your goal, not closer to it. Even if an objection is coming up simply because of someone's fear of change, that's okay - you can't help that someone feels the way they feel.
As an example I’m writing this six months into the Coronavirus pandemic and prior to a presidential election. Your buyer might want to wait until after the election to make a buying decision. This may or may not be a wise decision but I would dig deeper into their motivation for buying a home. Do they want to get wrapped up into a one year lease and pay a year worth of rent while they “wait it out”. Are they willing to risk interest rates increasing while they try and wrap their minds around the market? Are they willing to risk losing out on their dream home if one is available now?
The major reason why all of this is important is because your ability to handle objections to everyone's satisfaction also helps build trust, an invaluable part of the relationships you're currently navigating. Remember that trusting someone isn't as simple as turning on a light switch - it ultimately takes time and care to build.
Build Trust by Actively Listening
By showing buyers and sellers that you're really listening to them and that you're paying attention to what they have to say, you're naturally in a better position to use trust to overcome the objection. Because at that point, they'll be able to see that you care about their success and that you clearly have their best interest in mind. Most of the time, that's all someone is looking for in the first place and sometimes objections happen when that sense of trust just isn't there yet.
As Always, Remain Positive
Whenever objections come up, try to remind both buyers and sellers of the positive side of what is going on. With rare exception, those positives will far outweigh the negatives and if you can just get them to say focused on those qualities that really matter, the situation will undoubtedly resolve itself and you'll be able to move forward in no-time.
Love,
Kartik
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In a lot of ways, the real estate industry is unique in that there are so many moving parts at play. Every property is different, and the same can be said for every buyer and seller. But the one common Read more...
In a lot of ways, the real estate industry is unique in that there are so many moving parts at play. Every property is different, and the same can be said for every buyer and seller. But the one common thread that runs through it all is that there is often a passionate industry professional involved.
What kind of personality does best in real estate?
But of course, this begs the question - exactly what makes for a good real estate agent anyway? What personality traits are required to move from real estate agent to “successful" real estate agent as quickly as possible? The answers to those questions are largely straightforward - they simply require you to keep a few key things in mind.
1. Having a Problem Solver Mindset
By far, one of the most important personality traits to have as a real estate agent involves a true problem solver mindset.
Every transaction you're a part of will have several "moving parts," and sometimes things can go unpredictably. You'll be asked to come up with creative solutions to interesting problems and issues on a daily basis. Likewise, something as simple as showing a home can be a challenge as every property is truly unique in and of itself. None of this is a problem at all if you're the type of person who genuinely loves coming up with solutions to these and other types of issues.
What happens if you are on the listing side of a transaction and the buyer completes their home inspection and asks for a laundry list of repairs? How are you going to handle this and keep your deal together? How will you deal with a difficult client? What happens if you are in a divorce transaction and suddenly one spouse no longer wishes to sell the home after you’ve spent 30 days heavily marketing it? You can see that the ability to think on your feet and problem solve is paramount.
2. Being an Ambitious Self-Starter
Likewise, the importance of being a self-starter is hard to overstate. Even if you're working in a firm with a lot of other agents, you're still the "master of your own domain," so to speak. You'll largely set your own hours and you'll need to be a driven, self-motivated person if you're going to make it work.
3. Tenacity
This relates to another one of the most important personality traits to have as a real estate agent - the type of tenacity that will serve you well all throughout your career. In addition to a great work ethic, you need to understand that leads in real estate aren't just going to generate themselves. You'll have to market your clients' properties - sometimes in aggressive ways - in order to attract as much attention as possible from qualified individuals.
There ARE buyers out there for every property, just like there is a home out there for every home buyer. It's just that they aren't going to suddenly land in your lap - you're going to have to go out and find them and some days that will be easier than others.
4. Be Engaging and Having a Winning Attitude
Finally, a critical personality trait that all successful real estate agents share is that they have an engaging and winning personality. A big part of your success as a real estate agent involves marketing yourself every bit as successfully as you market those properties. Being personable, acting with integrity and having confidence as an agent are significant pieces of the puzzle.
In the end it's important to note that despite all of the above, it's absolutely true that any personality will do well in the real estate industry provided that you know exactly what to expect. It's certainly not a profession for people who cherish the ability to work a standard "nine to five" job. It also may not be the best fit for someone who likes a rigid, predictable structure in terms of their professional life.
While the above traits are certainly helpful, they are not a requirement to succeed as a real estate agent. Provided that you have a deep passion for what you do and relish the opportunity to help people in your area find the types of homes they've always dreamed of, you will absolutely be able to succeed and make a real career out of it.
Love,
Kartik
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While this topic might be a little more advanced, especially if you are just starting real estate school online, it’s an important topic, nonetheless. Generally speaking, the way the real estate industry Read more...
While this topic might be a little more advanced, especially if you are just starting real estate school online, it’s an important topic, nonetheless. Generally speaking, the way the real estate industry typically works goes a little something like this:
A real estate agent works for a broker (think any company like Century 21, Coldwell Banker, etc.) and together, they combine their resources to help sell a home. More often than not, the company keeps some percentage of the overall commission fees that are paid out after the transaction in question has closed. As a direct result of their hard work and dedication, the real estate agent gets to keep some percentage of that commission. This process repeats itself, again and again, as each home is sold.
Over time, the real estate agent will sell more and more homes. Sometimes the average value of the homes they are selling increases. Sometimes their frequency increases. Regardless - this person continues to build experience and generate business for the broker and, as a result, the amount of money they get to keep should increase, too.
However, this doesn't necessarily happen automatically.
Typically, there will come a time when a real estate agent actually has to go into the broker’s office and negotiate to keep a higher percentage of the commission - something that can be particularly scary if you haven't been in the real estate industry for very long. But thankfully, the process itself is quite straightforward - provided that you're able to keep a few key things in mind along the way.
Most companies are going to have a published schedule wherein the commission splits are very transparent but what if you want to move up quicker? What if you have a huge deal you are working on and want a special arrangement on that transaction?
3 Negotiation Steps to Getting a Higher Commission Split
1. Analyze your Progress
What may be the most important thing to understand about this process is that before you even think about walking into the boss' office and asking for what amounts to a salary increase, you need to do your due diligence.
Decide on a period of time and pour over the data about each transaction to essentially track the trajectory of your career. Use cold, hard numbers to show not only how you've improved in your position, but how the value that you've been able to bring to the broker has increased, too. Maybe you've been selling more homes than you were when you first started. Maybe the average transaction price has increased exponentially. Maybe it's both at the same time.
Regardless, at a large company your broker might not “just know this” and they might not take your word for it. You need to be able to clearly illustrate the value that you're currently bringing to the operation and why that value is worth a higher commission split. You're not going to be able to get to that point without preparation, so this process begins here.
2. Do your Research
Likewise, you need to make sure that you're well aware of what commission split plans are in place to see exactly what you qualify for to begin with. Not only is this a great way to enter into the conversation armed with as much information as possible, but it's also a way to proceed without seeming too demanding as well.
So instead of going into someone's office and saying "I want X," start a conversation about your current split and why you have earned more. See which ones you qualify for and ask if there is one that will promote your growth within the company faster than the one you're currently on.
3. Review your Goals
Finally, you always want to make sure you know where you're headed before asking for your next commission split increase. Essentially, you need to know what your goals are for your career in the next five years to determine what you should be asking for to begin with.
If you know what the next "level" is and what you need to do to achieve it, suddenly something that was once overwhelming doesn't seem so insurmountable anymore. You've broken the process down into a series of smaller and more manageable steps, which will absolutely help you stay motivated at the same time.
If you can find time to do this between managing your client expectations and meeting your broker’s, you can be sure that you’re on the right track to taking your career to the next level.
Love,
Kartik
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If you had to make a list of some of the most important traits that any successful real estate professional should have, confidence would undoubtedly be right at the top. In a lot of ways, being a real Read more...
If you had to make a list of some of the most important traits that any successful real estate professional should have, confidence would undoubtedly be right at the top. In a lot of ways, being a real estate agent involves selling yourself every bit as much as you sell those properties in your area. There are so many real estate professionals in your area - people don't just need to know that you can get the job done. In a matter of moments, you need to be able to convince someone that nobody does what you do quite like how you do it, and why that will be such an advantage to them in the weeks and months ahead.
Without confidence in yourself and your abilities, that won't just be difficult - it'll be impossible.
But at the same time, a lot of people often come into the real estate business as a second or even a third career - making it a scary prospect for a lot of them. After all, there is no base salary. There are no health benefits. Most agents are independent contractors and, as stated, the competition is fierce.
If you truly want to separate yourself from the pack, increasing your confidence is how you do it - and this is something you can accomplish in a wide range of ways, all of which are worth exploring.
3 Ways to Build Your Confidence as a new Real Estate Agent
1. Find a Real Estate Mentor to “Show You the Ropes”
By far, one of the best opportunities you have to build confidence in your abilities as a real estate agent involves finding a mentor who can "show you the ropes," so to speak. They'll do more than just help build your skills and knowledge – real estate mentors also teach you how to better yourself in a way that you'd be hard-pressed to replicate on your own.
If you work day in and day out with someone who is a proven success, you'll be able to see first-hand what works and what doesn't. You'll see everything that goes into each victory and how they deal with each failure. It's a process that takes years but it's also one that is more than worth it.
2. Be Patient – Give Yourself Time to Learn and Gain Experience
Another one of the best ways to be more confident as a real estate professional involves giving yourself permission to be patient with your abilities. You're not going to come right out of the gate and be an overwhelming success in your field. You're probably not going to sell your first house immediately after you stage it. You will make mistakes and some days will be more difficult than others.
All of this is more than okay, because each part of it is a big factor in determining your career trajectory.
There's an old saying that tells us it takes a long time to become an "overnight success" - whoever coined that phrase was talking about real estate whether they realized it or not. In other words, try not to be too hard on yourself and just be patient. Slowly but surely, your confidence will build as a result.
3. Master Your Craft by Continuously Learning
Finally, you need to understand that continuing education and a willingness to keep learning and keep improving is one of the core components of a confident real estate professional. Anyone who tells you they've "done enough" to develop their career or they've "learned all they can" about the industry or their local real estate markets is someone who lost a game they never truly understood in the first place. Any confidence they have is unearned at best.
You should always look for new opportunities to improve your abilities. You should always capitalize on a chance to hone your skills, or develop a new trait. Your willingness to grow and learn will always impact your ability to do both. Once you acknowledge that, you'll see each incremental growth step - regardless of how small - as a victory in and of itself. Truly, the confidence that comes with that alone is more than worth the effort for most people and it certainly will be for you, too.
Love,
Kartik
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Generally speaking, it's common knowledge that real estate agents are required to be licensed in the state in which they practice. This is more than just a simple formality, of course. Taking the real Read more...
Generally speaking, it's common knowledge that real estate agents are required to be licensed in the state in which they practice. This is more than just a simple formality, of course. Taking the real estate classes and becoming a licensed agent proves that you've gone through the training and education necessary to do the job. It's also an example of your commitment to follow the industry ethics and standards of your specific state when it comes to marketing, sales, negotiations and the completion of transactions.
But more than that, a real estate license is also proof of your dedication to all of these ideas in the eyes of your potential clients - thus allowing them to move into a deeper and longer-lasting relationship with you with as much peace-of-mind as possible.
As you progress in your career you may have to hire an assistant one day who might not be licensed to help you manage some of the day-to-day aspects of your operation. Because of this, questions often arise as to exactly what these assistants can or cannot do. Are they a real estate agent in everything but the name? Are their duties limited in some other type of way, especially in the eyes of the law?
Luckily, the California Department of Real Estate has issued a set of guidelines specifically for these unlicensed assistants who work in the real estate industry, shedding insight into exactly what is expected of them and, more importantly, what isn't. It's an invaluable resource for anyone involved in a real estate transaction and understanding it requires you to keep a few key things in mind.
What Unlicensed Assistants CAN Do in California: An Overview
In the state of California, unlicensed assistants are definitely allowed to assist in the performance of cold contacting potential prospects. Indeed, this is a large part of the reason why real estate agents may seek out their help in the first place.
This includes not only making telephone calls, but also using electronic communication like emails or social media sites like Facebook and Twitter to try to generate as much interest in the services of the real estate agent as possible. The unlicensed agent can answer questions about what types of services that the agent can provide, and they can even schedule an appointment so that all parties can meet.
It's important to note, however, that this type of canvassing can ONLY be used to develop general information about the person being called. An unlicensed agent can call to determine whether or not someone would be interested in the services of the real estate agent, for example. They can NOT try to induce the person to use the agent's services in any way.
Another way that unlicensed agents often prove invaluable ultimately comes down to the role they play in open houses. Unlicensed assistants are absolutely allowed to place signs in public areas throughout the neighborhood, for example, and can provide factual information about the house in question either verbally or through pre-printed materials. They can greet the general public when they walk through the door and can even schedule times for further appointments. All of this can again save the agent an incredible amount of time, thus allowing them to devote more of their attention on those tasks that truly need them. They have to do all of this with the express consent of the owner however - they can't just decide to do it on their own.
The Administrative Roles of the Unlicensed Assistant
Unlicensed assistants are also allowed to help their agent in other ways, too, particularly when it comes to a lot of those "back office" duties that are important but that also require a tremendous amount of time.
In the state of California, an unlicensed assistant can:
Make, conduct and even prepare a comparative market analysis for a particular property. It's just that only the licensed real estate agent can actually use it when conducting business, and they have to approve everything contained within the document first.
Unlicensed assistants can let a prospective buyer into a property to inspect some or all of it, so long as this activity is necessary for the preparing of a report regarding future repairs that will be made. So an unlicensed agent can give a home inspector access to a property prior to a sale, for example. It's just that they cannot provide them with any supplementary information to actually complete that report - that will need to come from the agent directly.
Unlicensed assistants are not only allowed to prepare advertising relating to a transaction for their employer - they can actually have input on the design elements of those materials, too. Once again, the agent with the license will need to approve everything before it is published and made available to the general public.
Unlicensed assistants are also allowed to both prepare and complete documents before and during a transaction, so long as they do so under the supervision (and at the direction) of the licensee.
Unlicensed assistants can also mail, deliver and pick up documents relating to a transaction - including obtaining signatures. While they are doing this, however, they are not allowed to discuss the content or relevance of those documents. An unlicensed agent can bring something to a client's house to have them sign it, but the conversation isn't allowed to get any more detailed than that.
On the subject of documents, it should be noted that the guidelines state that unlicensed assistants are also able to thoroughly review the types of materials commonly coming into and going out of a real estate brokerage - so long as their employer has specifically directed them to do so. Overall, they can review documents for completeness or compliance, for example.
Finally, unlicensed real estate agents are allowed to not only accept but also account for and provide a receipt for any trust funds received from a client or other party to a transaction. Of course, this means they can also communicate with those same individuals in connection with the transaction about topics like when reports or other information will be delivered.
In the end, it's important to think of an unlicensed real estate assistant in the state of California as exactly what they are: an assistant in nearly every sense of the term. Under Section 10131 of the California Business and Professions Code, the state government has made it very clear which activities actually require a real estate broker license to execute. Nothing in these guidelines supersedes them in any way, shape or form.
But that's okay, because an unlicensed assistant isn't supposed to replace the need for a real estate agent at all. Instead, it's supposed to support and empower them - helping to relieve as many of the administrative tasks from their plate as possible so that they can focus their attention on actually running their business and executing real estate transactions.
To that end, an unlicensed assistant in the real estate industry really might be thought of as a paralegal in the legal profession. Paralegals are usually employed by lawyers to devote their attention to specialty tasks like case planning, development, management and others. They research legal topics and provide support for any tasks that don't require a law degree. They're not a replacement for an attorney, but then again they were never designed to be and that's not what is expected of them. An unlicensed real estate agent really does operate in much the same way, albeit via an entirely different field.
Finally, it’s important to remember that the rules can change on what the state allows an unlicensed assistant to do so it’s important to check your state’s rules periodically to ensure that you are following the rules.
These guidelines are intended to help not only real estate agents but also the members of the public that they've dedicated themselves to serving - which is ultimately the most important goal of all.
If you are unlicensed and would like to obtain your real estate license visit our website for more information or take one of our free classes
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A question I get frequently from first year real estate agents is “How should I prepare for a listing appointment?” A real listing appointment. Not your mom’s house or your best friend from college Read more...
A question I get frequently from first year real estate agents is “How should I prepare for a listing appointment?” A real listing appointment. Not your mom’s house or your best friend from college but a genuine listing appointment from someone you don’t really know.
I wanted to put together a quick guide that will help you as you move through the process of pitching your first seller client! While this is not exhaustive, it should get you closer to a signature than just winging it.
1. Make sure that the person you are meeting with is the owner
The first step to having a great listing presentation is to ensure that the person you're meeting with is in fact, the true owner of the property. As an agent, you don't want to be on the wrong side of real estate fraud. While you don't necessarily need to see a driver license on the first meeting, use common sense. If the person on title is a female, for example, and you're meeting with a male who says they're the representative of the owner, it's important to dig deep and ask additional questions. In that case, that person may have power of attorney over the recorded owner, but your title insurance company and escrow company will need those documents anyway so ask for them upfront.
2. Research liens on the home
The second step is to call your preferred title insurance company and have them pull title on the home to examine liens against the property. This is a prudent second step for a lot of reasons. First, you want to make sure that the market value of the home is greater than any existing liens. If not, this could turn into a short sale, which would trigger an additional set of documents and an entirely different process.
Additionally, a search of the title will reveal if there are any notices of default recorded on the property, which in many states will require a different purchase agreement. A title search is also important because it shows the owner that you were prepared for the listing appointment and are able to work with title to eliminate any liens that may be showing on the property in error.
3. Have a well researched CMA
The main reason that most properties expire out is an improper pricing strategy. A CMA will examine three aspects of the market:
1.The active listings
2.The expired listings
3.The recently sold listings.
Clearly the most important part of this research are the properties that have recently sold as they represent a willing buyer and a willing seller doing a deal with one another. However, the active properties are also important because it shows the seller what the competition in the area is. Finally, the expired listings indicate a warning as to where you should not be pricing the property.
4. Have your documents ready
All documents should be ready for the listing at the time of the listing. You should bring any state required forms you need to take a listing as well as a listing contract itself. The worst thing in the world is to have the seller say that they are ready to list, and you not have the appropriate documents.
Bring multiple copies of the listing contract with you incase you need to make notes or changes.
5. Leave your judgement at the door
If the seller has experienced a loss in income or a layoff requiring them to sell the property, it's important to be empathetic to the needs of the seller and listen while working diligently to try to maximize the net proceeds to the seller.
Understand what your unique selling proposition is, have confidence that you and your company can get the property sold. And don't forget to smile. =)
6. Handle objections professionally and with ease
It's quite likely that you'll face some objections when making your presentation. Invariably, you may get questions about whether you'll “do it for less”, “price it higher”, or “how many years you've been in the business”. It's important to research as many of these potential objections as possible, and have scripted and truthful responses to the seller’s concerns.
There are a ton of free resources online to help in this if your broker doesn’t provide enough training. There are YouTube videos, blogs, and articles that can help you wade through the sea of a dozen or so objections that are most common in our real estate business. Remember that proper prior planning can prevent poor performance and the more you prospect, role play, and rehearse the greater the likelihood of you taking every listing appointment that you go on.
Remember you have to list to last!
Love,
Kartik
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Generally speaking, helping a buyer purchase a home should be one of the most fun and exciting times ever. However, sometimes life has other plans for you and your client.. and they don't necessarily Read more...
Generally speaking, helping a buyer purchase a home should be one of the most fun and exciting times ever. However, sometimes life has other plans for you and your client.. and they don't necessarily line up with your own.
Experienced agents have all been here - Imagine for a moment that you're helping your buyer shop for their dream home. You've done a tremendous amount of research and have put in significant time and effort into finding something that meets the needs of your client. You’ve written the strongest offer possible and the communication with the listing agent looks good. Things are finally starting to go your way...
... but you end up not getting your offer accepted.
The sense of defeat you feel in that moment can be crushing, to say the least. But that DOESN'T mean your search for the perfect home should come to an end.
As a buyer's agent, one of the most important things you can do in that moment involves helping the buyer get back on track so they can continue to shop and finally secure that home they've been waiting for. Getting to this point isn't necessarily difficult, but it DOES require you to keep a few key things in mind along the way.
Let the Mistakes of the Past Inform the Decisions of the Future
After getting outbid on a terrific home, it's natural for buyers to start to second guess nearly everything that led them to that point. Obviously, they don't want to make the same "mistakes" again in the future - regardless of what those mistakes happened to be.
As a buyer's agent, part of your job is to instill confidence in your client to the point where they believe they won't fall into the same trap a second time. Of course, this involves taking a look back at what happened and helping them learn from the experience in the most positive way possible.
If part of the reason why your buyer was outbid had to do with their insistence of lowballing, help them understand that buyers can often lose out on their dream home by engaging in exactly this type of behavior. Not only can a really low offer offend a seller - even unintentionally - but it can also make them less likely to negotiate upwards, even if your client is more than willing to do so.
Let your client know that they should find out what type of situation they're entering BEFORE they make their bid. Don't be afraid to come right out and ask if there are other offers and where those offers stand. At the very least, this can help manage their expectations prior to engaging in another bidding war over a property.
Encourage your buyer to consider things that go above and beyond a simple monetary offer. Let them know that they can write a letter to the seller, for example, outlining why they love the home and why it means so much to them. You'd be surprised by how much of a difference this can make when a seller is trying to decide between similar offers.
Put in Backup Offers in the Future
At the same time, you should also encourage your client to put in a backup offer on any home that they're serious about in the future. Even if a seller has indicated that they're going with someone else, this is still a great best practice to follow.
You really never know exactly what is going on across the negotiating table. That "accepted offer" from another buyer could fall apart due to a myriad of different reasons. Maybe those buyers got cold feet, or they were unable to secure the type of financing they thought they could. In any event, let your client know that there are still ways to be the "first in line" if that current deal should happen to fall through.
Have Them Believe Another “Dream Home” Is Out There
But in the end, the most important thing you can do to help your buyer get over a house that they lost involves getting them to believe the simple truth that another "dream home" will absolutely come along.
Don't forget that part of why they're working with an agent like you comes down to your negotiating skill. Not only do you have the knowledge from your real estate courses, you (or your company in the case of a newer agent) have been around the block more than a few times and at this point, you've likely seen it all.
With the real estate market developing as it is the chances are high that you'll be able to find a similar home for your client to the one they lost. You'll probably be able to find one that's even better, provided that you're given enough time to do so.
Indeed, that may very well be the most important piece of advice for this situation: tell your client that it's time to stop looking backwards and to return their attention to the future once again.
Love,
Kartik
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Prepare for the day
The first step in a great day as a Realtor is to prepare for the day itself. This includes going over your schedule, verifying and confirming appointments you may have for the Read more...
Prepare for the day
The first step in a great day as a Realtor is to prepare for the day itself. This includes going over your schedule, verifying and confirming appointments you may have for the day, and studying market statistics. The act of studying the market data can be especially helpful for a newer agent as they have time to check the Multiple Listing Service to see what new properties have come on the market, examine properties that have gone under contract, as well as properties that have closed escrow in their marketplace.
This 30-60 minutes of quiet time will set the agent up for business success.
Make sure you role play
As the morning progresses, the second thing that a real estate agent should do is role play. Role playing scripts and dialogues can be extremely helpful for the newer agent, especially because most buyers and sellers have a consistent set of objections that they will give the agent, and understanding how to respond to these objections smoothly and confidently can help increase sales. For example, if you're calling for-sale-by-owners, and the seller doesn't want to pay you a 6% commission, or is hesitant to set the appointment, there are several things that an experienced salesperson could say to increase their chances of success. Consistent role play will help delivery as well as syntax to ensure greater success.
Ensure that you are prospecting
The third thing, once role playing has been done, is to actually prospect. Daily prospecting must be the cornerstone of the salesperson’s day. Finding potential buyers and sellers is the lifeline of your business. As you continue in your career, you will come to realize that income for December actually has to do with how committed you were in October. An October client leads to a November escrow which leads to a December closing.
Understanding the longterm nature of our business means that prospecting must be the cornerstone of your day. High-performing real estate agents typically will spend a minimum of two hours on this activity.
Lead follow up
The fourth thing that should be in the schedule of every high-producing real estate agent is lead follow-up. Simply put, lead follow-up is, as the name implies, following up on the leads as a result of your prospecting. The worst thing that an agent can do is spend a lot of time, energy, and effort into prospecting only to cultivate leads that never get called back or followed up with. The nature of the real estate business is such that the sales cycle can take days, weeks, or even months. Consistently following up with your leads via email, phone, and text message will increase the chance of those prospects ultimately turning into clients and closings.
Schedule time to go on appointments
The goal of lead follow-up, of course, leads us to our fifth activity - going on appointments. Time should be in your schedule every day for face-to-face meetings with clients. This could be listing appointments or showing appointments for buyers who want to look at homes. Sticking to a strict schedule for showing can help you take control of your day. Many newer real estate agents will show property or meet with the client within minutes of them asking. This will lead to burnout because if you're always jumping without any direction, it's easy to get discouraged if deals ultimately don't happen. Having respect for your own time will translate into clients having respect for your time also, so put that appointment block in your calendar, and make sure to follow it as strictly as possible.
Examine the prior day
Finally, at the end of each day, 15 to 20 minutes should be spent reviewing the activities of the day prior and setting up for the next day. Ask yourself questions like, "How productive was I today? How much time did I spend actually and actively looking for business? Are there things that I could have done better today? How can I avoid making the same mistakes tomorrow?" At the end of the day, productive real estate agents ask these questions so they can improve daily.
Incremental improvement on a day-to-day basis will help you ultimately achieve success in the long-term.
Hope this helps.
Love,
Kartik
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If you were looking for a single statistic that underlined why smart home and home automation technology has become so popular over the last few years, let it be the following:
One recent study revealed Read more...
If you were looking for a single statistic that underlined why smart home and home automation technology has become so popular over the last few years, let it be the following:
One recent study revealed that the average amount of money a person can save from using smart home products is about $98.30 per month, adding up to roughly $1,179.60 per year. Equipment like smart thermostats, connected sensors and "intelligent" security systems are more than just a "modest convenience" for many people. They're a true investment in every sense of the term - and one that will essentially pay for itself over time with the right application.
But as is true with so many other areas of technology, smart home and home automation tech is evolving all the time. That's why there are a few important trends in this area that all real estate professionals should be paying close attention to in 2020 and beyond.
The Top Home Automation Tech Trends to Pay Attention To
1. Standardization
One of the most critical home automation trends for 2020 is also one that, for many people, couldn't have come along at a better time: standardization.
A major pain point for so many real estate professionals and home builders trying to use home automation as a marketing tool always involved the fact that there were so many platforms to choose from. Ecosystems from Amazon, Google and even Apple all exist - but rarely do they work together in the way someone would want. Limiting users to one ecosystem also limits device compatibility, while trying to put together a system with a mishmash of ecosystems could easily lead to security vulnerabilities, among other issues.
Thankfully, the major technology players have banded together to create a set of standards designed to make smart homes easier to embrace and more secure at the same time - which is something that professionals will absolutely want to keep a close eye on moving forward.
2. Improvements in Smart Home AI
Another essential trend to watch out for involves the continued evolution of the relationship between smart home technology, home automation and artificial intelligence. A lot of smart home devices are already leveraging AI in impressive ways, like with smart thermostats that "learn" your daily usage habits and automatically make adjustments to regulate a home's temperature without the intervention of the actual homeowner.
2020 may very well be the year that this concept shifts to the next level, when things like facial recognition software driven by AI and machine learning allow security and surveillance systems to become more proactive. Rather than simply telling you "there's someone at the door," your smart doorbell may soon be able to tell you that "John Smith is at the door," thus creating an environment where both threat detection and regular alerts are more personalized than ever.
Even going beyond that, smart devices powered by AI will be able to handle more complicated instructions than their current counterparts. This means that the average smart home user will be able to allow their devices to handle even more complex tasks than they can right now - thus freeing up more of their time and attention to focus on those activities that truly need them and that they're more invested in. This will likely drive a major boost in adoption in smart home tech across the board, too.
The Impact of Smart Homes on the Future of Real Estate
While it’s easy to be impressed by these home automation trends it's equally important to consider the impact they will have on both home building and the real estate industry moving forward.
Reports indicate that 43% of all smart home technology users are currently between the ages of 18 and 34-years old. As those that fall into this demographic mature financially and begin looking for houses, home automation is naturally going to become more of a priority - making it more of a selling point for first-time home buyers too.
Indeed, smart home tech is already having a major impact on people who fall outside of this category, too. There are reports that as many as 81% of people who already use some type of smart home tech said that they'd be more likely to purchase a home that already came with some level of connected technology that they could then add onto in the future.
You're already seeing the inclusion of smart home and Internet of Things-connected devices included in a lot of home listings in markets both large and small across the country. This is one trend that shows absolutely no signs of slowing down anytime soon.
All of this is to say that smart home equipment is more than just a novelty or another passing fad. It's already changed the way that many people think about what a home should include - to the point where it will impact the way real estate professionals think about how to market a property.
All this is to say that if you're a real estate professional who isn't currently paying attention to the hottest trends in smart home and home automation technology, now would be an excellent time to start.
Love,
Kartik
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