Be Cautious During the Listing Presentation

Please read this before inviting a prospective Realtor to your home to make a sales pitch why he is the best candidate to sell your home.

Whether it’s a Realtor or a vacuum sales rep, there are common tactics used to get you to sign on the dotted line. When deciding which agent will represent you for the most important purchase or sale of your life, beware of certain tactics used.

Many of these examples come from the book How to Become a Power Agent in Real Estate, by Darryl Davis. The purpose of this book is to get agents to double their income in 12 months. It is an older book, but the principles are still applicable.

The first step in the process is to build rapport. Be careful with this. According to Davis, part of this process will include personal questions such as what is taking you and your family out of town, where you’re moving to, etc. These questions aren’t just to break the ice. They are to find out if you are committed to aggressively selling your house. If not, Davis says (in reference to buyers not committed) “… refer her or him to an agent that hasn’t read this book!” I guess if you’re not able to contribute to a Realtor’s doubled income, you’re not worth their time.

When agents tour your home to gather information for the CMA, or Comparative Market Analysis, they may point out problems with your home and make noises such as, “hmmm.” All this is so you are more willing to accept a lower sales price for your home.

When discussing what they will do to sell your home and why you need a Realtor, he focuses on how much Realtors do. Ironically, in much of the rest of the book, it talks about why Realtors should try to get more listings… because it requires so much less work. He even gives an example of a Realtor that was in a truck accident and wound up in the hospital for a few months. The focus was that since he had a lot of listings, he didn’t need to worry because he would still be getting paid – even while doing nothing. I will dedicate other blog posts specifically to address this sales tactic.

Finally, when the listing presentation is all done, Davis explains an effective way to get prospective clients to sign on the dotted line. He says, “As you’re filling out the paperwork, you don’t want any silent pauses. If there’s silence, they start thinking…” He continues on the next page in regards to when you hand the contract to one spouse to sign, “The key is to involve the spouse so the two can’t communicate.”

I’m baffled. I’m truly baffled. Does the real estate industry really want a bunch of clients that aren’t able to communicate with their spouses, or worse yet, aren’t able to even think about a decision this important.

What is account-based sales?

Account-Based Sales (ABS) is a form of business where the customer pays for products or services after they have been delivered. This type of business model can be used by companies that provide goods and services online. In this case, the company does not receive payment until the client has received their product/service. The benefits of using ABS are that the company is able to track how many units were sold, what price was set per unit, and how much profit was earned per sale. The disadvantages include the fact that the company cannot see who the customers are, and therefore, it is difficult to market directly to consumers.

Account Based Sales (ABS) is a term used to describe a business model where the company’s revenue comes from its customers’ purchases rather than selling products or services to them. This type of business model can be used by companies that sell their product or service over the internet. In this case, the company earns money through commissions charged to the customer at each step of the buying cycle.

What are account-based sales? Account-based sales (ABS) is a method of selling products where the customer pays for the product after they have received their order. This can be done through various methods including credit cards, PayPal, bank transfers, gift cards, etc.

Why would I want to use this type of sale? There are many reasons why you may choose to use account-based sales over traditional methods of selling. One reason is that your customers do not need to pay until they receive their order. Another reason is that you can offer discounts to your customers if they pay for their orders using certain payment methods.

How does it work? The customer places an order and then receives an email confirmation from us. Once the order has been placed, we send them a shipping notification via email. When the order ships, we charge the card used at checkout. If the customer chooses to pay later, we allow them to set up a payment plan. After the payment is complete, we ship out the order.

The Sales Negotiation Process

Your negotiation skill is vital for the negotiation process

Regardless of what you are selling or who your customer is, your negotiation skill is what allows both you and your customer to succeed in the end.  A strategy is only as effective as the techniques used.  You should view your negotiation skill as the tools for implementing your sales strategy.  The following are some helpful tips on how to succeed at sales negotiations:

Be prepared. Effective sales negotiations begin before you come to the bargaining table.  This means doing your research and planning ahead of time.  You need to consider your customer’s situation and ask yourself what they really need from the deal as well as list what you are willing to compromise and what you cannot. Being prepared also allows you to remain relaxed throughout the negotiation. 

Set Standards. In order to reach a mutual agreement, there are rules that have to be followed.  Setting some guidelines before the negotiation will ensure that each party works under the same standards. For example, you can approach your customer with your competitor’s price and use what they have paid in the past as a standard. 

Work together.  A good negotiation allows all involved to leave the sale feeling good about their final decision as well as about each other.  By approaching the negotiation with mutual satisfaction in mind, your customer will be a lot easier to work with.  If a customer feels as though they are being taken advantage of, they will become defensive. If they know that you are playing fair then they will most likely do the same.

Finalize and follow through. The point of a sales negotiation is to come out with the best deal for everyone involved so you should ask many questions.  Be sure to address important details and listen to your customer’s concerns.  After you have arrived at a mutually beneficial solution, negotiated and signed an agreement, you need to follow through.  This involves doing what you said that you would do.  For example if you promised a certain delivery date, make sure your product or service is delivered by that date. If something unexpected arises that will affect the delivery date, make sure that you contact your customer and make other arrangements.

Your level of negotiation skill can determine whether you are able to close a sale as well as how profitable the sales transaction will be. An important element of effective negotiation is being able to ensure that everyone can leave satisfied rather than feeling as if they have been short changed. In order to prevent a situation like this, you need to have a good negotiation strategy.