Chapter 5SellingFinding the Right Buyer

I. The American Dream

American Dream

Think of yourself as a navigator: you should guide your clients through the selling and buying process with a good map and a solid strategy

II. Shopping for a Home

Shopping for a Home• For most buyers, purchasing a home is the most

important financial decision they will ever make

• It becomes the largest asset they will every own as the loan is paid off

• Most property owners move on the average of every 6 to 8 years

A. Purchasing A Home : A General Discussion

• New Homes offer the advantages of:

• Modern, up-to-date design

• Kitchen built-ins

• Being more attractive

• New heating and cooling equipment

• They may cost more

• Many buyers believe that newer homes are not as well built as older ones

Older Homes offer:• Located in proven, fully-developed areas• Better public transportation• More shopping choices and schools• Wider variety of choices• Physically “shaken down”• Landscaping/irrigation already in place• More house per square foot can be obtained for the price• Any major repairs made within the last 5yrs must be disclosed

Obsolescence

• FUNCTIONAL OBSOLESCENCE is the loss of value due to adverse factors within a structure that affect the marketability of the property

• ECONOMIC or SOCIAL OBSOLESCENCE is any loss of value due to conditions outside of the property itself (external)

B. Some Advantages to Owning a Home

• Possible appreciation

• Tax benefits

• Equity buildup

• Cash flow

C. Some Disadvantages to Owning a Home

• Loss of value

• Upkeep and maintenance

• Liquidity

• Foreclosure

D. Budgeting for a Home

• Housing payments should not exceed 30% of the borrower’s gross monthly income

• Personal debt and house payment combined should NOT exceed 38% of a buyer’s gross income

• As a prospective buyer, it is vital you are aware of what ratios the lenders will be using to qualify you for a loan

III.Why Buyers Buy

Why They Buy

People don’t buy houses; they buy benefits

Among those buyers who shopped with licensees, most bought through them, yet over half went to more than one firm before buying

IV. Techniques of Selling

Techniques of Selling

Selling is communicating, so as a licensee, you must be able to communicate effectively

Listening is just as important as talking

Don’t try to impress a prospect with vocabulary or slang you’re unfamiliar with

Communicate on more than one level by using charts, photos, and graphs

A. Direct Contact Communications

Face-to-face is the most effective two-way communication

The ability to react to the entire communication and to adjust behavior accordingly is called FEEDBACK

The closer you get to a prospect, the better your chances for a sale

Soliciting business on a direct-contact basis is more effective than by telephone or mail

B. Letter Communications

As the least effective mode of communication, the letter should be used principally as a pre-conditioner

A well-organized letter, using AIDA can should the benefits being offered

C. Phone Communications

• Two-way

• If used properly, the telephone can open more doors and result in more sales because it leads to direct contact and saves time

• Remember to:• Make proper use of the phone• Use an incoming call register• Answer ad calls• Transition them from phone call to appointment• Use a switch sheet• Go on the weekly office caravan to view new properties

V. The Critical Path of Selling

A. Steps Involved in a Sale

1. The Pre-Approach

2. The Initial Contact or Greeting

3. Counseling Buyers• 3 C’s of Credit

• Character• Capacity• Capital

• Types of Buyers

4. Planning the Showing

5. The Showing

6. Overriding Objections

7. The Close

VI. The Sale

A. Closing Techniques

• You should use as many different types of persuasion as you can

• Convince your prospects to buy

• Always focus attention on the buyer’ needs

• A creative salesperson constantly works at learning new selling and closing points

B. Seller Relocation

• A REFFERAL FEE is a commission earned by introducing your client to another broker

• You should contact two reputable brokers and send them a referral form for you client

• A CRS ROSTER is a list of Certified Residential Specialists used for finding other professionals for referrals

Chapter Summary

• The American Dream

• Shopping for a Home• Purchasing a home• Advantages• Disadvantages• Budgeting

• Why Buyers Buy

• Techniques of Selling• Direct-contact• Letter communications• Telephone

• Critical Path of Selling• Steps in a sale

• The Sale