Archive for May, 2008

Selective Hearing in Real Estate Negotiations

Thursday, May 29th, 2008

While it is important to hear every word of what your client says, it is also important to only focus on the words that will be beneficial for you. This means considering some details of what your client said while automatically dismissing some of it. We call this selective hearing, where we just take in what we want to hear and ignore those we don’t want.

Selective hearing can be especially helpful to real estate negotiations. When handling negotiations with sellers and clients, it is expected that there would be some objections and maybe some disapproving remarks from the other party. One way to ensure that the negotiations would flow as smoothly as possible is to enhance your selective hearing skill.

The most important benefit of selective hearing when in real estate negotiations is that it helps you build a wall against negative attacks from the client. You’ll be able to ignore them and continue on with the negotiations without taking things on a personal turn.

Another benefit stemming from the use of selective hearing is that you are reminded not to believe everything your client says. It also reminds you to look deeper into the details, into what he or she is not saying.

You can also use selective hearing to your advantage by modifying some things that your client has said. It allows you to restate what your client said, and modify it a bit by adding or deleting or changing some words to build the negotiations in your favor.

Selective hearing is very useful not only in real estate but in all businesses. It helps negotiations and deals build up as you like it. You’ll also find that the real estate negotiations will go smoothly with selective hearing.

How To Negotiate Successfully With Seller Objections

Friday, May 23rd, 2008

When the seller or homeowner objects to your deals, what do you do? You may need the deal badly, or you may just think you’ve had enough seller objections for the day. Either way, it is better to negotiate successfully with the sellers and make the most out of it.

Even if the seller flatly refuses your deal, the end result would still be that you will still be a polite and courteous real estate investor who offers help to them. If you won’t get the deal, at the very least, you have a reputation to protect.

So how do you negotiate successfully when the seller objects to your conditions?

  1. Handle the objection face to face. It’s better to solve the problem at once rather than stray from it. It will still be reeling in the seller’s mind throughout the negotiation if it’s not put to rest and this could affect the whole deal. Keep in mind that you have to be polite in doing so, however. Some sellers might not take it kindly if you’re going to force the issue too much.

  2. Let the objection fade away by leaving it alone. This will bode well with seller objections that are really just all about trying to make a little distraction in an uncomfortable topic. There are times when the seller doesn’t like a subject and would rather object to it. You can leave it alone and just proceed to the next topic on hand. The objection can fade with time.

  3. Gently cast the objection aside and focus on gaining the seller’s trust instead. There are some objections that stem from skeptic thoughts on the seller’s part and one way to cast these aside is to bring in some connection between the two of you. Try no to bring the objections up in your conversations. It will just fade away as the seller grows to trust you.

  4. Prevention is the best cure, medical specialists would say. In real estate, and regarding seller objections, we can use the same concept. The best way to handle a successful negotiation is to avoid bringing up seller objections. You can do this by being as informative and sensitive as you can be to the seller’s situation and problems. If you can judge what would worry your sellers in advance, then prepare a talk wherein you can ease their mind and not have to deal with the seller objections.

Getting That First Phone Call

Thursday, May 15th, 2008

 

You won’t be able to secure a deal unless you get that first phone call and first deal. After you’ve done some advertising (flyers, ads, etc.) and made some connections with foreclosure and real estate agents, all you need to do is prepare to take on your first seller as he or she calls you.

One thing you have to remember first is that you may not get a call right away. When this happens, do not panic. There are homeowners who opt to hold on to your number until they are ready to call you themselves.

When the first phone call comes and your phone rings, do not panic, too. Be calm and composed. Act like you’ve done this a couple of times before.

Here are some tips to bag that deal when the seller calls:

  • Your greeting should not go like you are promoting your company. For instance, do not go answering your calls with “Good morning. Thank you for calling Real Estate Company.” Homeowners feel more comfortable sharing their home troubles with individuals, not companies. The proper greeting should go like “Good morning. Real Estate, this is Name speaking.” Your greeting should be more on a personal level to get the sellers to be comfortable with you.
  • Get right on the point of how you can help the seller. He or she called for your help, after all.
  • There are some homeowners who would want to ask you for information first before going unto the problem. Be patient with them and be courteous. These homeowners may feel upset about having to sell their property and may also not like to trust you. Concentrate on building trust between the two of you and there is a possibility that he or she may warm up to you about their real estate problem.
  • Take down some personal information about the homeowners. You will be able to see whether or not the homeowner will face a possible foreclosure or not. They may also share that they are behind bills and loans. You might be able to help them in a different way with these information. For instance, you might be able to help the sellers better by offering to work with their lenders and avoid foreclosures.
  • Ask if you could take a look at their property on the same day they called. This will show the homeowners your dedication and sincerity in helping them. Negotiations and talks may also go more smoothly when you are talking face to face and not over the phone. There is also the danger of losing the seller to other investors if you postpone looking at the property on another day and the homeowners are in need of immediate action.

It all goes down to getting that first phone call right. When you have successfully communicated to the homeowners and they warmed up to you, then that real estate deal is yours.

Reviewing Your Real Estate Advertisements

Tuesday, May 6th, 2008

 

There are some real estate advertisements that just don’t cut it. Some advertising projects might not be appealing to the customers. Some just don’t attract the attention of your target market.

There’s always room for improvements, though. You just need to realize first what is wrong with you advertisements. You should critique your marketing and look into its faults. You can also ask someone else, a friend or a colleague, to take a look at your marketing project and ask for their opinion.

Here are some points to look into when inspecting your advertisements:

  1. Your ads are not at the right locations.

All marketers and advertisers know that location is very important when promoting the business. It is not any different in the real estate business. There is really meaning to the famous “location, location, location!” line.

You should obviously put your ads in an area wherein much of your target customers can be found. It should also be in a place where it can be clearly seen by people passing by. It’s no use putting up ads in places where people can’t even see them. Visibility, exposure, and accessibility is important if you want your advertisements seen and read.

  1. Your message is unclear.

The message of your ads should be clear and direct. It is what the advertisement and marketing project is all about, after all. Your ads should speak of what you have to offer, your products, and/or your services. You should also be precise on the benefits that the customers will receive when taking your offer, and you should be direct and firm on what you advertise.

  1. Your ads don’t catch the attention of potential customers.

Many people will sometimes just take a short look at your ads. In that short amount of time, you need to capture the customers’ attention. You can start by making your headlines big, understandable, and catchy.

  1. Your ads don’t help in promoting your credibility and success rate.

You also need to get your potential customers to trust you based on your advertisements. You should also offer some information about yourself and your experiences in the real estate business. With this information, the customers will feel more relaxed and easy when coming to you.

  1. You cannot be contacted as easily as you would like to be.

Your ad may have attracted the attention of many people. But it won’t give you customers if you do not give them details and clear directions on how to contact you. Your contact details should be clearly displayed in the ads. Your phone number should be active and it is best to personally take phone calls rather than have the answering machine take them. If possible, show a map where your office is located. You can also add in your email address or fax number.

  1. No unique selling proposition distinguishing you from your competitors.

A unique selling proposition is very important in an industry where you need to do better than your competitor to get more leads. You need to have something, or offer something that will allow your customers to think that it is better to do business with you than with another real estate investor.