Insider Secrets: Sell Real Estate Like a Pro

Contents

INTRODUCTION

CHAPTER ONE

Reality 101: License, Broker and Need-to-Know Basics

CHAPTER TWO

Promises Made, Promises Kept: Business Plans and Accountability

CHAPTER THREE

Lead the Way: Generating Leads, Databases and Networking

CHAPTER FOUR

Yep, That’s Me: Branding Yourself

CHAPTER FIVE

Seek and Find: Marketing and Prospecting to FSBO’s and Expireds

CHAPTER SIX

Say This, Get That: Scripts for Handling Objections

CHAPTER SEVEN

Show and Tell: Prospecting at Open Houses and Following Up

CHAPTER EIGHT

Working with Buyers: Getting Them What They Want

CHAPTER NINE

What’s Mine Can Be Yours: Working with Sellers

CHAPTER TEN

He Says/She Says: Working with Contracts

CHAPTER ELEVEN

So That’s How You Do It: Success Stories

CHAPTER TWELVE

Resources: Scripts, Plans of Action, Checklists

ACKNOWLEDGEMENTS

INTRODUCTION

Life can take some strange and unexpected turns, and my life was no exception. At 37 years old, I found myself widowed with three children to support and no real prospects for a career, much less an outstanding and prosperous one. I lacked a college degree, and I had not been in the work force for 18 years.

A dear friend suggested that I go to real estate school. Are you kidding?  was my immediate reaction. There was no way I was cut out to sell anything. I knew because I had attempted Amway, Princess House and, of course, Avon. Since I had failed miserably at these, I was convinced I could not sell my way out of the proverbial paper bag. At my friend’s urging and encouragement, however, I signed up to take the week and a half course to join the ranks of those who called themselves realtors.

I studied like never before, and soon it was time to sign up for the test. This was back in 1994 when the testing in my area took place in a monstrous room in some obscure place in downtown Kansas City. My world had been a five-mile radius from my house, so for me, driving downtown was scary and unfamiliar. I was so nervous on the drive to a place I’d never been and a challenge I’d never had, I was sure I’d be sick before I got there. But, like many other women, I compared it to the trauma of giving birth, just focused and breathed deeply to get ready for the new life I was pursuing.

After arriving at an ancient-looking building, the other want-to-be realtors and I were herded into a large room set up theatre style with rows of those old-time, wooden desks. After everyone was seated, an extremely cranky lady gave us instructions, threatened us with our lives if we cheated and handed out massive, overwhelming test booklets. At this point in the experience, I’d moved on from feeling a little sick to worrying about hyperventilating. I knew that I had the material under control, but when I started to take the test, my nerves took over. It wasn’t until after the state portion of the test that I was calm enough to think clearly. By the time I got to the national section, I was able to breeze right through it.

Back then you had to wait a month to get test results. Not only that, the results came by snail mail. The day the letter came, I stood in front of the mailbox anxiously tearing it open only to find failed on the state portion. I had tried so hard and failed. It was devastating, but I was determined. Unlike today where if you fail, you simply pay again and sign up the next day to take the test over the Internet, my choice was to wait another month or drive to the state capital. Drive I did and passed—no problem.

The same effort and focus I needed to get through my licensing experience is what I also believe is needed to be truly successful in this business. In addition, you must have a deep desire and vision to see yourself as someone who is more than just a person who sells houses. Real estate may start out as a small business endeavor, but it can become a significant business leveraged with employees and subcontractors who compose a large team working for the same cause. Just like any business, it will take time and serious, consistent effort to build—especially in the beginning. And, once you have that license and are out there selling, it can look like a different game from the one you learned in the classroom.

One way to look at this book would be as your outdoor classroom, as I will take you deep inside the actual real estate world to learn the strategies and uncover the secrets you need to launch your new career or give a booster shot to one that may be faltering. As you begin the journey into Insider Secrets, you will discover some very simple, basic information from how to get a real estate license to more advanced techniques of listing and selling properties, negotiating contracts and much more. In my years of working with real estate agents, I have found that whether they were brand new in the business or a few years into their career, many of them lacked essential principles that would enable them to develop a successful business.

My hope for you, dear reader, is that you gain the advice and information you need to expand your current business to one where you realize the abundant future in real estate that I and other experts in the book have experienced. I hope you are as excited to learn these secrets, as I am to share them with you. Stories, factual information and practical advice borne of experience await—Cynda sells and now Cynda tells.

CHAPTER ONE

Reality 101: License, Broker and Need-to-Know Basics

First and foremost, know that every state can have different requirements with regard to license laws and hours required. Your local board of REALTORS® and local real estate schools can give you this information or you can go online. Everyone learns differently, and if you need human interaction (which would be most of us who qualify for this career), you might consider taking a course with other would-be agents as opposed to online. Daytime classes can vary from one to two weeks, and nighttime classes usually run about three to four weeks. Be aware that most real estate schools focus on teaching you how to pass the test. Just as the map is not the territory, information in the test is not going to give you all the tools you need to succeed. It simply gives you the legal right to try. Keep in mind also that while you can obtain a college degree in real estate, that degree is not necessary to obtain a license to practice in most states at this time. Again, review your state requirements and combine that with your goals, interest level, availability and financial status before you choose an educational direction. Start the journey with time invested in what will work best for you.

Take note of those agents running around frustrated by low sales and overloaded with paperwork when they do get one. They may be the ones who expected to be real estate experts at the end of a two-week course. Seriously, there is no way for that to happen. Licensing school is literally just the beginning. Real estate practice is a very detailed learning process, which will take months and years to perfect. Try to hook up with a great company and get the training you need to help expedite that process. Keep involved with your local board of REALTORS® as they will offer some great training events and sessions.

Your learning curve will not end with experience either. Many states have tightened their licensing requirements in the past few years and are also requiring an additional licensing course after you pass the test. In the state I practice, for instance, you must complete 48-hours of licensing school and a 24-hour post-licensing course, as well as pass a state and national test. Only then may you apply for your license. All states have continuing education requirements and code of ethics training as well.

One thing to remember is to treat that license like gold. In Missouri, as in most other states, agents have to renew their licenses every two years. It is critical to get your continuing education requirements done prior to the date indicated as the deadline. One year I got so darn busy selling houses, I completely spaced off finishing my continuing education. When the renewal came due on September 30th, it indicated that I was missing three hours of electives and three hours of core. I made a panicked call to the school where I had received my initial training, and they squeezed me in just in the nick of time. I had three days to spare before the due date, and I breathed a sigh of relief as I mailed off my money and proof of required credits. Whew! That was way too close.

Relieved at my escape, it was back to business as usual—or so I thought. Within the next seven days, I received another letter from the real estate board. I thought that was strange, so I opened it, more curious than anything, only to be shocked to discover they had denied my renewal! The reason? I had gotten married and forgotten to inform them of my name change. This was serious. In order to reinstate my license, I had to completely retake the state and national tests. Worse yet was the fact that if I did not pass, I had to go back to licensing school. The letter also indicated I was to cease and desist practice until I had passed the test. You talk about sweating bullets. I had to pass that test, and I had to do it fast.

So, feeling like I was in a déjà vu scenario, I grabbed my old books and started studying like a mad woman. One week later, I was back to driving downtown to take the test, nervous again because my livelihood was on the line instead of just beginning. I could not fail as my business was at stake; this was a non-negotiable situation. I stood shaking as the proctor announced I had passed. I quickly ran outside so no one could see me, jumped in my car and cried out of pure joy and relief. Believe me, you do not want or need to experience this kind of pressure. Pay attention to your licensing requirements after you pass, as well as before.

Ok, so now, forewarned and forearmed, you have passed your real estate exam and are ready for the fun to start. It is critical to start with a company that’s right for you so it makes sense to put some time into the search now rather than have to change companies later. Interview with at least three that share your business philosophies.

Do not, I repeat, do not make your decision to join an organization based on the percentage of commission splits charged to you by the company or seemingly cheap monthly fees. If it seems to be too good to be true, it usually is— the adage that you get what you pay for is reality based! Study and analyze the benefits and opportunities each company offers. Integrate the following questions and concerns into the interview; you have the right and the need to know.

Going Deep: Choosing a Company

1. What types of training programs are available to new agents?

2. Do they have a mentor program?

3. Do they offer coaching and consulting?

4. Do they offer a productivity coach, and is this someone who is not a full-time agent?

5. What type of Internet capabilities does the company offer the agents?

6. Do they offer business planning to jump-start your business?

7. Are there health care benefits and, if so, what are they?

8. Does the company offer a retirement program or some type of profit sharing?

9. Does the company offer an extended advanced training program as your business grows?

10. Do they encourage agents to build a team? Are there team split incentives?

11. Are there monthly fees, and what do they include?

12. Are there desk fees or mandatory transaction fees?

13. Were you provided with a detailed explanation of the commission structure (your split with the brokerage)?

14. Is there an agent leadership organization within the office or company that allows agents a say in office policies or does the broker have sole discretion over all policies and decisions that are made?

Once you have finished the interview, pay attention to the overall feeling you got when entering the office. Did you feel welcomed by the front desk person and was there an upbeat vibe from and among the agents? Was the broker a positive, enthusiastic person? It is crucial that you consider this qualitative impression as well as the information you gained. You’re going to spend a lot of time in that office, working with those agents. This is a not-to-be-ignored part of the success equation.

As a team leader and broker for our office, I interviewed agents seeking to leave their present companies. I was often disappointed at the complaints these agents had about their current brokers. Some relayed that their brokers had cheated them out of commissions or they had taken a client or they had been treated unfairly with regard to a problem with another agent in their office.

I know it sounds unbelievable, but these things really do happen, and sometimes you may not know it until you actually go to work for that person. Try to find a way to do some checking before you join. If you know a fellow agent who works there, ask questions. Think about it this way: you are going into business with this individual. He or she will be handling your money/commissions, and you will be entrusting him or her with information about your potential clients. Be very careful before jumping into a business endeavor with people you don’t know. Ask before you leap.

Now that you’ve joined a brokerage, here’s Insider Secret # 1: The practice of real estate is really quite simple, but succeeding will not be easy unless you practice the basics throughout your career.

So what are the basics? They are everyday habits to ensure continued success. If you practice these from the very beginning of your career and then carry through with these practices, you will have a better chance of succeeding at a higher level. This is such a simple concept that you might be thinking it’s a no-brainer. That would be a mistake. The problem is that most agents do not continue to practice the basics, not even some of the most seasoned realtors. Like many others, they go great guns at first and then when the business starts to pour in, they become caught up in the daily routines of a real estate business and forget what got them there. If you drop the core work and habits of selling real estate, you will most likely see a contingent drop in sales.

Going Deep: The Basics

Concentrate on turning the following basics into habits. You want to accelerate your sales, not decelerate them by skipping what got you there in the first place. Try these:

1. Generating leads—calling friends and past clients, email, direct mail, drop-bys (dropping by to visit), calling for sale by owners and expired listings.

2. Scheduling—doing daily activities pertaining to real estate sales on a set schedule five days a week.

3. Preparing marketing pieces—i.e. postcards and letters, developing and continuing a personal branding plan to set you apart from the crowd.

4. Putting yourself out there—knock on doors, hold open houses.

5. Focusing on the 80/20 rule—concentrate on the core 20% of your dollar-producing activities that will produce 80% of your results.

Cynda Tells: Know and Use the 80/20

Concentrate on the core 20% of your dollar-producing

activities as that will produce 80% of your results. It’s all

about focus. Put your work where it will pay off.

For your purpose as a real estate professional, this means identifying and focusing on the core 20% of your activities (dollar producing) that will produce 80% of your results—i.e. make you the most money all of the time. Stay focused on the basic activities that will bring you the quickest and most effective results. In the case of real estate it will be, at the minimum, the basic dollar-