This Course is part of (CE) Continuing Education. or it can be taken as a stand alone Elective.
It fulfills 4 hours of state mandatory (CE) Continuing Education.
by Dr. Lawrence Hasbrouck
Prospect – Preview – List – Sell
NO OTHER TASK IN THE REAL ESTATE BUSINESS CAN BE PERFORMED UNTIL WE HAVE A PERSON WHO IS: READY TO MOVE
AT THE CONCLUSION OF THIS COURSE YOU WILL BE ABLE TO:
1. Explain the importance of prospecting.
2. List major sources of prospecting.
3. Use a variety of prospecting approaches.
4. Prepare a prospect organization system.
5. Select promotional tools for contacting
THE PROSPECTING PROCESS
“Don’t let pending contracts or any other activity take you out of the business of prospecting every business day”
An agent’s #1 job everyday is to prospect!
DEVELOP A PLAN
CONTACT PROSPECTS——SO MANY EACH DAY
PRIORITIZE YOUR PROSPECTS
MAINTAIN A FOLLOW-UP SYSTEM
PRIORITIZING YOUR PROSPECTS
Determine their NEED
Determine their URGENCY
Determine their MOTIVATION
SOME REASONS WHY PEOPLE MOVE
Income Increase or Income Decrease
Transferred into or out of town.
Birth or Death
Marriage or Divorce
Bored with same ole town.
LOOK IN THE FOLLOWING PLACES FOR PEOPLE WHO ARE MOVING
Marriage Announcements in Newspapers
Bankruptcy or Foreclosure Notices
For Sale by Owner signs
Garage or Estate Sales
Vacant or Neglected Property
Local Business moves
Ways To Get Business because Success By Accident is Hard To Achieve.
1. Approach Someone
2. Determine their Needs
3. Ask for an Appointment
For a listing:
1. Approach the Sellers
2. Determine their Needs
3. Ask for the Listing
When Meeting a Buyer at a Open House:
1. Approach and Greet Them
2. Determine Their Need, Motivation and Urgency
3. Ask Them to Work With You to Find the Right Home or to Buy the Open House.
OPEN HOUSE EXAMPLE
This is the time when you establish rapport and begin the building of trust and confidence. Ask easy to answer questions.
I’m glad you came by today. Are you familiar with the area?
It Looks like a good day to be out house hunting.
My name is _________ ________. Are you a neighbor?
May I ask, did you see our ad in the newspaper or the Open House signs?
Would it be possible for me to get your comments on this house after the tour? The owners and I would really appreciate knowing your reactions.
Determine Their Needs
This is the time when you determine the visitor’s needs. It is time to assess if the visitor is a ready willing and able prospect. It is the time when questions are asked that lead to make a decision whether you want to work with this visitor.
There are two types of questions to use when assessing the visitor.
1. Open Probes
2. Closed Probes
Open Probes are used to gather information. They generally require a multi-word answer. Open Probes usually begin with the Why, When, What or How words. Other good openers include phrases like “Tell me about….” and phrases that elicit opinions or feelings.
Open Probes often ask for information about urgency, motivation, wants and needs.
1. When would be the best time for you to be in your new home?
2. What puts you in the market right now?
3. Which are your favorite neighborhoods? What do you like most about this area?
4. How important is the yard to you?
Generally a Closed Probe question can be answered with one or two words. It can confirm the information you have gathered, offer an alternative choice or elicit specific information. They often start with words like is, are, could, can, do and have. They are usually easily answered.
1. You said you wanted a large master bedroom, is that correct?
2. You said you would be coming to town the week of ___?
3. Is this the correct spelling of your name?
4. Are you including the basement in your square footage?
5. Would 5 PM or &PM be better?
Ask For Commitment
Asking for Commitment is the one area often neglected by real estate salespeople. But it can not be overlooked if you are to be successful in this business. Asking is not limited to asking people to list or buy. It includes asking for the right to help them, asking if you can refer them, asking for appointments or the right to call them another time. Most prospects need help in making a decision. It is your job to ASK.
How soon can we get together and find just what your looking for?
Bridge their Needs to connect the question.
Since you’re interested in a 5 bedroom house and a larger garage, I’m certain I can help. I previewed several properties this week that might be possibilities for you. Let’s get together. get a comprehensive list of all your wants and needs and find the very best home for you. I have an appointment available at 6:00 tonight or Saturday morning. Which time would be better for you?
APPROACH – DETERMINE THEIR NEEDS – ASK (in order)
Putting these in order is extremely important.
Think back to the times when you have been a potential buyer and remember the ineffective salespeople you have run into. When that have skipped APPROACH or DETERMINE THEIR NEEDS, you have probably said you were “Just Looking”.
Exceptional salespeople cover all three in order.
USING THE MAGIC QUESTION
Your objective when prospecting is to find people that have
1. A need to sell their house
2. A need to buy a house
3. Information about someone that they can refer to you who has a need for services
To find them, you have to ask the Magic question.
Who do you know who is planning to buy or sell real estate?
When you prospect the use of the open probe question will generate thought on the part of the contact. The closed probe question will usually only elicit a short response
Proper grammar for the Magic Question would be, “Whom Do You…”? However, “Who Do You…?” is more commonly heard and used. Throughout this text we will use the latter but use the one you are most comfortable with.
THE MAGIC PRESENTATION
The Magic Presentation is a basic method that you can use in almost any situation.
Asking people if they can help you is a good method of approach. Most people are willing to help if they can.
Hi. I wonder if you could help me? My name is _________ representing _______. Here is my card.
Hi. Could I take a moment of your time? My name is _______ and I represent _______. I really could use your help….
Determine the Need
Who do you know who is planning to buy or sell real estate?
After you ask the Magic Question it is important that you pause to allow the person to think. Most people will try to help. You may contact some people who are in a hurry. Respect that, remain polite and move on to the next contact. Some people will not be able to help you. in this case be sure to thank them for trying to help. Ask them to keep your card and to call you if they should think of someone.
Ask For The Commitment
Please keep my card so that when you or someone you know needs to buy or sell property you can ask them to give me a call. Thank you for your time.
The contact may know of someone or have a need for your services themselves. Use your appointment app or book and schedule a time to meet with them or to get the name and phone number of a referral.
Remember…Not all contacts will be able to help you. Success in the real estate business is meeting people. the more contacts you make the more likely your chances of securing leads and appointments. Measure your activity on contacts, not the results. The results will come.
BASIC METHODS OF LOCATING PROSPECTS
below is a list of activities that produce prospects. make enough contacts and the result will be prospects.
1. Ask 25 people
2. Sphere the influence
3. Expired Listings
4. For Sale By Owners (FSBO)
5. Territory Management
6. Open House
7. Converting Incoming Calls
ASK TWENTY FIVE
Talking to twenty five owners of homes around one of your company’s listings is an effective method of finding additional sellers. You may discover during this method of prospecting that a homeowner in the immediate area may know of someone who would like to purchase the house you have listed.
You must have a reason to make each contact. Have something of interest to tell the neighbors. During the life of the listing there are many opportunities to contact the neighbors.
Contact the Neighbors
1. When the home is first listed.
2. Any time you hold an open house.
3. Any time there is any change made to the property itself.
4. When the p[roperty is sold.
making these contacts with regularity when you are informing the neighbors of just sold properties is one of your best sources of business. You are capitalizing on the company’s track record in getting homes sold in an area. When a company listing sells, that news is an excellent reason for contacting the neighbors and offering our services.
SAMPLE APPROACHES FOR ASK TWENTY FIVE
Face to Face contact: Just Listed
Approach: Good morning. Mr/Mrs _______, I am _______ with _________. (Hand them a business card and Just listed Brochure.) Your neighbors at (address) have hired us to market their house. I wanted to stop by and let you know that it is for sale.
Determine: We have found that neighbors often have friends or relatives who would like to live near them. Who do you know who would be interested in looking for a home in this area?
(wait for response)
Ask: This is an excellent neighborhood and I know we will generate a lot of activity for this property. I’s like to leave you an extra card and when you think of anyone interested in buying or selling, would you give them my card and ask them to contact me?
In the meantime, I’d like to keep in touch from time to time and let you know about real estate news in the neighborhood, especially when you’ll have new neighbors. Thank you for your time.
Face to Face contact: Just Sold
Approach: Good Afternoon, Mr/Mrs. _______, I am _______ with _______. (Hand them a business card.)
Determine the Need: We have just sold the home at _______. In marketing the property we found several families interested in the neighborhood. Who do you know in the area who may be thinking of moving?
Ask: I would like to leave you a few of my business cards. When you do hear of anybody who is thinking about selling or buying, please ask them to give me a call. I would appreciate the opportunity to help them.
I would like to check with you on occasion to see if I can be of assistance to you or anyone you know who has any real estate need. Thank you for your time and when you have any questions about real estate, please call and ask for me.
Face to Face contact: Open House Invitation
Approach: Good Afternoon Mr/Mrs. _______. I am _______ with _______. (Hand them a card and Open House brochure.) I stopped by to invite you and a friend to the open house I’ll be conducting on (day/date) at _______.
Determine: Who do you know who might be looking for a home in the neighborhood? Anyone who has recently been transferred to the area?
(if positive response)
I would very much like to contact them to extend an invitation to the open house and to offer my assistance in their home search. Do you have their name and phone number?
I feel obligated to do the best possible job or them. I appreciate the information. Whenever I can assist you, please call me.