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Welcome to Issue 2 of 'Real Estate Agent News' 2015
"The thing always happens that you really believe in; and the belief in a thing makes it happen"
Frank Loyd Wright
Inside this issue;
1. Are You Putting On An Act?
2. Listings Presentations: How to Refocus Yourself and Your Seller
3.12 Personality Types to Avoid to Make 2015 Your Best Year
4. The Top Five Things Great Sales Organizations Do To Stay On Top
5.How to choose a commission advance company
6. Industry News
1. Are You Putting On An Act?
Lights! Camera! Action! When the spotlight of life is focused on you, what do people see? Are you an actor just playing a role or are you the “real thing?” Are you willing to let people see who you really are? Hollywood actors are paid big bucks to portray a make believe character on the silver screen, but there are many people outside of “Tinsel Town” who put on a very convincing act every day without ever being paid a dime. In fact, many of them pay a high price.
You don’t have to be a Hollywood star or public figure to be concerned with the way others perceive you. All of us are involved in personal image management to some degree, and in most cases, this is perfectly normal. In fact, thinking about who you will be with and what you will be doing is a reasonable way to determine what “image” to put on by dressing and behaving appropriately in a given situation.
There is nothing inherently wrong with putting your best foot forward in order to make the best impression possible. However, some people go too far to prevent others from seeing their “real self.” They hide behind a manufactured image in an effort to win approval, recognition and acceptance. Unfortunately, in order to keep up the charade, many people end up compromising their own personal values and needs.
People most likely to mask their real self are those who are overly concerned about what others think of them. They rehearse conversations in advance in order to avoid looking foolish, or they mentally revisit and analyze past interactions, often becoming embarrassed or angry with themselves because they wish they had said or done something differently.
“Masking” can be expressed by only saying what you think others want to hear, withholding your ideas and opinions because they may not be valued or well received, or ignoring your true feelings because you don’t want to “rock the boat” or appear weak and vulnerable. The fear underlying the motivation to mask your thoughts and feelings comes from the belief that people will not accept or approve of you just the way you are.
It isn’t easy to overcome fears of rejection and criticism, and it can be very self-defeating and painful to believe that you don’t measure up. If you struggle with putting on an act for others and want to change, here are some basic, practical strategies to help you begin the process.
First, regularly remind yourself that you would worry a lot less about what people think about you if you realized how little they really think about you. Frankly, most others are pretty focused on their own image management and don’t have time to analyze your every word or action.
Next, make an honest assessment of yourself. If you have habits or characteristics that you don’t like, work on changing them. Are you shy and awkward talking to people? Take a class in public speaking or join a group which shares your interests and gives you an opportunity to converse about a topic that excites you. Do you feel intimidated around highly informed, intelligent people? Try reading the newspaper, articles of interest and good books to expand your knowledge. Are you unhappy with your body image? Talk to your doctor about how to gain or lose weight in a healthy manner (and act on his or her advice). As you work on yourself, remember, everyone has weaknesses, including the people you are working so hard to please.
Of course, there are some things about yourself that you cannot change, and that’s where acceptance comes in. Accepting yourself can be extremely liberating, especially when you discover that other people are more willing than you realize to accept you as well. Ironically, it is usually our weaknesses – and our efforts to overcome them – that draw others to us.
It is also critically important that you understand and accept the fact that you will not be approved of or liked by everyone you meet. Everyone has different expectations and preferences, so trying to be all things to all people will only result in confusion, frustration and disappointment. Do what you can to be your best, and if it’s not good enough for someone else, remember that it’s their choice – and their loss.
Maybe the most powerful strategy you can use to enhance your image is practicing acceptance of others. As you turn the spotlight off yourself and focus on accepting and appreciating the people you meet, you will experience more confidence, more openness and more sincerity in your relationships.
They say a friend is someone who knows you well and loves you anyway. Every human being needs to be loved and to feel worthwhile and competent. It is through genuine relationship that these needs are ultimately met.
Now, where’s that camera? Let’s get a shot of the “REAL YOU!”
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2. Listings Presentations: How to Refocus Yourself and Your Seller to Get What You're Worth
Before you go to you next listing presentation, you need to check your attitude. Are you ready to sell yourself and make the buyer understand why you're worth the commission you receive or are you your worst enemy? If you don't have the right attitude, regardless of the dialogue or techniques you use, you simply will not be effective.
Refocusing Yourself
Two beliefs you must have to getting higher commissions are:
1. You are worth what you charge.
Even if you are a new agent, you can psych yourself up to feel good about what you bring to the table for a seller. You have one thing the average agent doesn't have -- enthusiasm. You bring a sort of freshness to the business and you have the time to devote doing the best possible job you can for the seller. If you're an experienced agent, obviously you have years of doing real estate, day-in and day-out. Keep this in mind: no matter what the seller's background is, the State that you're licensed in says you know more about real estate than the homeowner does.
2. The seller will not save money working on their own..
According to a recent study, homeowners selling on their own, on average, sell for 17% less than if they hired an agent. Therefore, if you charged DOUBLE your normal fee, homeowners will still net much more than if they sold on their own. Bottom line ? FSBOs lose money so, it makes absolutely no sense for them to sell the house on their own.
If you don't believe these two things, you'll always be faced with sellers asking you cut your commission and selling yourself short.
Most agents make the mistake of thinking the commission conversation happens at the end. Actually, the commission conversation starts the moment you walk in the door. The better you are in delivering the listing conversation, the easier it is to ask and command higher commissions.
Refocusing the Seller
One of the main reasons why commission becomes an issue on a listing appointment is because the homeowner is focused on the wrong thing. If a homeowner is trying to save the commission, they obviously have not seen the value of working with a real estate agent ? any real estate agent. So you first have to establish that working with a real estate agent is essential and then you have to make them understand why you're worth your commission.
1. Never even address commission until you have established the value you offer.
One of the mistakes agents make is addressing how much they charge when a homeowner asks them on the telephone. You should never address commission until you have sat down with the seller, built rapport and trust, and they fully understand the value you offer. If you can create a high-perceived value with a seller before you tell them the fee you charge, it will be easier for you to command a higher commission.
2. Selling a house is a complicated process and we need to educate them.
Explain that Real Estate Agents are licensed professionals and share an example. If you were sued, you would call an Lawyer. If you were sick, you would call a doctor. In each of these important areas, you would call a professional. So why would you do anything different when it comes to one of your most important assets, your home?
3. Identify the tools that successful agents use.
Open Houses, access to Internet sites etc. If you focus on selling the industry, and the seller buys into it, they will list with you because you are the one delivering the message. Plus, when you take this approach, your conversation comes across as less self-serving. The seller will feel you care more about serving them versus trying to sell them on giving you their listing.
4. Explain your marketing plan.
Successful agents market the home to create exposure so that every buyer in the price range knows about this house. You explain how you will do this through your marketing tools. The more tools you use, the more exposure a property gets, which means more buyers coming through the front doors, and usually results in a higher price. This is a good time to remind them that agents sell houses for 17-21% higher than FSBOs.
5. Remind them that you are a full-time agent.
If they plan to sell it themselves, they are getting a part-time unlicensed employee rather than a licensed professional. Which one is more likely to get the job done right? Remind them that this is your full time job and that you are committed to selling their property.
6. Or ½ %.
There is no law that says you have to negotiate in 1% increments. If you have to adjust your fee because the seller feels they need to win something, then consider adjusting your fee just a ¼ of a percent. If the seller has bought into you, this should be sufficient to soothe their ego.
Tips for When the Seller is Comparing Commissions Between Agents
1. You get what you pay for.
In any profession or industry, the price a professional charges is directly related to the service they provide. In other words, paying a premium price for a skilled agent could net the seller more because that agent can get the job done better than an agent who discounts their commissions.
2. Just 1%.
If a homeowner has made the decision to hire an agent, but they are leaning toward another one because the other agent is cheaper?, you only need to validate why you're that percentage better than them. Show the seller, through statistics, by paying you more, they will net more than with the other agent.
3. Value.
There will always be somebody who's going to charge less. Therefore, don't compete based on price, but based on the value you offer. Say this to a seller: If an agent is so willing to give there commission away in order to get your listing, how quickly will they be to give away your money in order to make a sale happen?
Remember, you are worth what you are paid and every buyer deserves to know why your service is valuable. Don't sell yourself or your pocketbook short
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3. 12 Personality Types to Avoid to Make 2015 Your Best Year
When it comes to creating life-long positive change in our world (that is, “forever results”), most people won’t and don’t - despite their constant attempts to re-invent themselves and ample access to an ever-increasing range of information, inspiration, resources, specialists, and facilities to help them through the change process. That’s not to say that they can’t transform themselves or don’t have the potential for greatness and forever results, it just means that typically, they won’t do it. And no, that’s not some negative spin, it’s a realistic snapshot of people’s mindset, behaviours and results over the long term.
Just take a look around. Most people know what to do, but for a range of reasons, don’t do what they know. Not consistently anyway. Great at starting, crap at getting the job done. Most people who get motivated, lose focus. Most people who lose weight, regain it. Most people who get fit, get unfit. Most people who make a New Year’s resolution have thrown in the towel by about now and most people who give up that bad habit have done it twenty times before. Which means they’ve never really done it at all; they’ve just taken a temporary break.
Man Eating Hamburger with SodaFriends of Yours?
Here’s a group of people that will continue to under-achieve and waste their time and talent unless they change their thinking and their behaviour. For good. I’ve worked with all of them at some stage. You might know some of them. You may even be some of them.
1. The Over-Thinker. We’ve all read about the Over-Thinker here at me-dot-com. She makes a regular appearance. She over-thinks, under-does and typically dies from analysis paralysis. She often has a facial expression which is a mix of constipation, confusion, desperation, exhaustion and fear. She will periodically have smoke coming from her ears and can often be seen talking to herself. Sometimes audibly. She may have a twitch. Her over-thinking will affect her physical health and reduce her lifespan by ten years. Or so.
2. The Procrastinator. The Procrastinator is always about to start something. If only he would. He is a world champion when it comes to almost doing things. Sadly, he will die waiting for the mythical right time.
3. The Rationaliser. The Rationaliser is first cousin of the Excuse Maker. They spend a lot of time together and as a result, look and sound very similar. The Rationaliser has an amazing ability to justify and explain her pathetic behaviour and consistently poor results. She is both delusional and entertaining.
4. The Reactor. The Reactor does just that; react. And usually badly.
5. The Defender. The defender will defend his actions, behaviours, results and mistakes, no matter what. He is arrogant, annoyingly self-righteous and a first cousin to the Blamer. He is an expert at responsibility transferal and shifting focus. He has the social appeal of herpes.
6. The BSer. Never one to let the facts get in the way of a good story, the BSer can be found in the workplace, the home, the sporting club, the gym and of course, where ever politicians hang out. Every family has at least one BSer and while they can be somewhat amusing, they also prove to be tiresome and annoying; especially when alcohol is thrown into the mix. For some unknown reason, a disproportionate number of fathers over the age of fifty have a PhD. in BS. This phenomenon is still being investigated. In some cultures the BSer is also known as the Wanker.
7. The Dreamer. It’s great to dream but not when that’s all you do. In order to produce positive and lasting change in our world we need to attach our dream to an action plan, wrap it in some logic and then turn it into a reality with some sweat, discipline, courage and commitment. Most dreamers have at least one tie-dye T-shirt in their wardrobe.
8. The Reminiscer. Aaaah, those were the days. The Reminiscer is always reminding anyone stupid enough to listen about her historical exploits and achievements. How amazing she once was. And curiously, the older she gets, the better she was. If only the Reminiscer would pull her deluded head out of her (largely fictitious) past and invest some talent and energy into the ‘now’, she might just turn her sad life around. And stop annoying the rest of us.
9. The Genius. The Genius is insecure, loves to be heard, and is compelled to demonstrate his intellectual and academic superiority as often as possible. Ironically, he’s usually not that smart. While he may possess a moderate level of academic intelligence, he typically demonstrates zero emotional intelligence, has no social awareness to speak of, and will take every opportunity to re-direct any conversation back to himself.
10. The Complicator. The Complicator has a gift for making the easy, hard. If there’s a long way around, she’ll find it. With her, the most simple task can become a major drama and a sixty second chat can easily be turned into a sixty minute hair-pulling exercise in frustration and confusion.
11. The Victim. The Victim is incredibly misunderstood. In his mind anyway. He sees himself as something of a martyr when in reality, he is a self-centred, attention seeking tool who wants sympathy not solutions. He is exhausting to be around and makes the BSer seem almost appealing.
Yes, I was going to add one more but I thought I might leave number twelve up to you. Feel free to complete my list, share a comment or tell us about an experience.
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4. The Top Five Things Great Sales Organizations Do To Stay On Top
These are the top five things that great sales organizations do to outsell and outperform their competitors.
1. Great sales organization take the time to hire the right people.
If you hire the wrong person it makes no difference how well you manage that person. They’re not going to perform. If you hire a strong person and you manage them marginally they’ll perform well, but they probably will not stay with your organization very long.
You have to hire with a great deal of caution and then determine very quickly if that person can perform or not. In most cases sales managers or decision makers try to solve intrinsic difficulties with a systemic process.
Here’s what we mean by the intrinsic and systemic gap. You can’t pull something out of someone that isn’t in them most sales managers and organizations think that if they can get someone to do something, they will automatically get better.
Using a systemic process to increase a persons level of performance is not the key to achieving results because, if intrinsically, the person doesn’t have what it takes to perform, they will never be able to achieve what you desire. You have to have people who intrinsically have the capacity to do what you’re asking them to do. If they have the capacity to perform they will be much more likely to be able to be trained to perform.
Dwight Eisenhower put it best many years ago when he said you can’t push rope up hill?.
2. Great sales organizations promote the right people to sales management and then empower them to perform.
In most cases companies take the top performing salesperson and make them the sales manager. By doing this they are taking the top producing salesperson out of the field and losing their productivity and in turn the company now has a lousy sales manager. For the most part effective salespeople are loners, not systematic thinkers, very aggressive. Sales management requires systematic thinking, process thinking, the capacity to pull something from someone else, the capacity to not be liked.
There is nothing worse than giving someone lots of responsibility and no authority. Responsibility is the obligation to perform and authority is the right to act. If you give someone lots of responsibility and no authority eventually that person is going to burn out. If you give them lots of authority and no responsibility you’ll have abuse of power. So it is absolutely critical to put the right people in sales management roles and then empower them to perform.
3. Great sales organizations orient, train and provide ongoing coaching.
The retention of salespeople is in direct proportion to the orientation program. In some organizations, the idea of an orientation program is, there is your desk or here’s the price sheet?. If an organization expects too much from someone too soon, with too little orientation, they're overwhelmed and it just won’t work.
In the book Good to Great by Jim Collins there is a lot of talk about valuing people. The most effective organizations focus on their people. When IBM was really blowing and going in the sales world, salespeople had to log a certain number of hours under the IBM tutelage before they would even be considered for a promotion.
The best sales organizations are well trained!
4. Great sales organizations establish a culture of accountability.
Establishing a culture of accountability is absolutely critical. Accountability means being held answerable for your own actions and your own results. In the book The Knowing Doing Gap the authors Pfeiffer and Sutton talk a lot about in-process measurement versus end-process measurement. Lots of organizations spend too much time at the end looking at someone’s sales numbers. The question is what goes into the sales numbers? What activities, what behaviours, what are the salespeople doing that results in the final outcome? If the end result doesn’t work and you look at it at the end of the time frame...it’s too late.
5. Great sales organizations forge a true sales culture.
As a sales manager you must forge a true sales culture in your organization in order to create the most effective selling environment for your salespeople.
What do we mean by that?
If you’re going to transform your culture from a utility or financial institution to a sales organization you must be fully committed because it’s a long term process. You can’t suddenly wave a magic wand and say we’re going to move from being a manufacturing organization to a sales organization. A sales culture is a culture that says, “it’s ok to be in sales”. True sales organisations take the time to hire the right people. They put the resources into coaching and training salespeople effectively. A true sales culture embraces an environment where being in sales is revered. Salespeople are not second or third rate citizens.
In many companies salespeople are so ostracized by the over-riding culture of the organization that they never receive the adequate amount of resources, training and coaching that is required and it creates a problem in the long-run
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5. How to choose a commission advance company
Lack of cash flow has long been one of the biggest business hazards for Real Estate Agents in Australia. Even the best agents are prone to intermittent cash flow because of the very nature of the business. A six week wait for commissions can be difficult to manage in the good times, and one bad month has spelled the end for more than a few solid businesses in this country.
At PaidOnExchange we recognised the Real Estate industry’s need for effective short-term financing, and did something about it. The solution is very simple: real estate commission advance companies. We turn commissions owing into cash within 4 hours. With none of the red tape that banks traditionally demand, the six-week starvation period has finally been consigned to history.
Don't stay awake at night worrying about your business expenses!
However, not all real estate commission advance companies are created equal, so here are 7 tips to help you choose the best one for your needs:
Same Day Approval – The approval process should be very quick for any real estate commission advances. The list of documents is very simple and easy to submit, and well established real estate commission advance companies should not need more than 4 hours to process your application and deposit your commission advance into your bank account.
Simple Application – An online application is now the standard for real estate commission advances. The advance company you choose to work with should offer a quick application form and a very concise and clear list of documents that can be emailed or faxed.
No Minimum or Maximum – Your chosen real estate commission companies should not impose a minimum or a maximum size commission that can be advanced. There should be no minimum fees either, so pay attention to the less obvious conditions that some advance companies may try to sneak in.
Can Advance More Than One Deal? – Real estate agents know very well that they may require funding on several deals at one time. Although many commission advance companies have a problem with the number of advances outstanding at any time, there are well established real estate commission advance companies like PaidOnExchange that do not impose any restrictions. Approval for your commission advance does not depend on the amount, but on the conditions of each deal. Each deal is treated and assessed separately.
How much real estate experience does your commission advance company have? - Don't deal with a commission advance company who does not understand nor have any real estate experience. Believe it or not some of these 'Johnny come latelys' are actual failed agents. Principal Mark Smith has been a licenced Real Estate Agent and Valuer and owned and operated a successful agency for 14 years and has worked in the industry for over 20 years. We understand real estate and have walked in your shoes!
How much funding experience does your commission advance company have? This business is a little like real estate - there's always a 'johnny com lately' popping up! Over the 9 years we have been in business we would have seen at least six companies come and go.
Now, you might say who cares, they're giving me money? True! But you will care when you come back for a further advance and they have either run out of funds (believe me it happens) or they simply don't have the appetite for further advances. You've made plans to grow around a reliable funding source! Now what? Don't get caught - deal with an established commission advance company!
Can you manage your advances online? Some commission advance companies don't have online access. This is like trying run your property management department the old manual journal and ledger way. Once you become a member with PaidOnExchangee you will receive a secure login to our client interface where you can track all advances, check balances, print statements and apply for further advances. Having an online client interface is essential and a good yard stick of how 'invested' the commission advance company is in their business!
There are a couple of companies in Australia that offer commission advances to real estate agents, so do your homework before choosing one. PaidOnExchange is the nation’s premier commission advance company. The first, the largest, the fastest commission advance company in Australia and the Agents preferred choice since 2005!
Call us today on 1300 667 286 to get started or complete our online commission advance application.
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6. RBA tipped to reduce cash rate tomorrow
The Reserve Bank of Australia is just 24 hours away from cutting interest rates to record-low levels, two commentators have predicted.
Bill Evans, chief economist at Westpac, and Nathan McMullen, head of product and digital at RAMS, expect the central bank to move at tomorrow’s monthly board meeting, according to a survey by comparison website finder.com.au.
The official cash rate has remained at a record-low 2.5 per cent since August 2013.
Mr McMullen said that with consumer confidence and inflation low, the Reserve Bank will cut rates to help boost the economy and depreciate the Australian dollar.
The finder.com.au survey of 30 economists and commentators found that 28 expect the cash rate to remain on hold tomorrow.
It also found that 18 respondents are forecasting some sort of change in the cash rate during 2015, with nine of those expecting it to happen in the first quarter.
Opinion is divided on where rates are headed: 14 think the next move will be down and 16 think it will be up.
ANZ chief economist Warren Hogan said the Reserve Bank would probably give some sort of warning before any rate reduction.
“Although the balance of risks has sharply shifted towards further rate cuts over the past two months, we think the RBA board will wait to see a little more data before cutting rates,” Mr Hogan said.
AMP Capital chief economist Shane Oliver said that the Reserve Bank announced in December that it favoured a period of stability in interest rates.
Since then, soft economic growth and inflation has been offset by strong data for jobs and building approvals, Mr Oliver said.
Greer Building Society chief executive Scott Morgan said the Reserve Bank would be reluctant to cut rates due to concerns over investor lending and property prices.
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