Death of the listing presentation
Guest perspective: Make it a 'listing education'
By Scott Einbinder, Wednesday, August 6, 2008.Bookmarking Sites
The death of the listing presentation cannot come soon enough for me. I have reviewed thousands of these presentations and the indisputable fact is that they all basically look the same, feel the same and clients could really give a damn about most of their content. Potential clients stare at the flip chart or PowerPoint presentation that reveals silly pie chart market share graphs, branding graphs that range from 94 percent to 99 percent awareness, print media outlet programs, open house campaigns and personal production awards that are deceptive at best. In addition, we make the client sit through a CMA (comparative market analysis) even though the client can find the same data online for free.
Now I know the CMA is a sensitive topic for some claiming that the online list price provided by Zillow or Cyberhomes, as examples, do not reflect the true value, as only a professional can determine this upon a physical inspection. This is where the head-fakes come into play! Too many agents want to believe that only they can properly determine list price. If this is true, why is there so much unsold inventory on the market? Why is the rate of listing expirations at an all-time high? It's not because the seller listed it too high -- it's because the agent took the listing at the wrong price. All listings require at least two signatures, that of the seller and that of the agent. No matter how unrealistic the listing price was, you the agent endorse the insanity the moment you sign your name!
This is all part of the presentation pitfall. So what to do? Change the listing presentation to a "listing education." After all, that's what your client really needs -- an education in truth, transparency and accountability. Hang up all of the things that you know don't work and start introducing services and strategies that do.
Start with this: guaranteed response time. As managers and brokers will tell you, the number one complaint sellers have with their agents is bad response time. Poor communication and slow callbacks, if any, remain as prevalent today as they were years ago. I still am amazed at the lack of responsiveness in our industry. In a service that commands thousands of dollars, the public still can't get a quick response.
Educate your client that a premium agent not only has the tools of a Blackberry, Palm, iPhone or other device to be "real time," but that "real time" is that starting point of service. Insert into your education a "Response Time Guarantee" that promises your seller that you will return his or her inquiries within three hours or you will or reduce your commission by 50 percent. That will get you in gear to make sure it happens. If you think you cannot handle this guarantee, you may start to wonder if you really give premium service.
The next phase of your education needs to be not about you but about them.
Share with your client your merchandising strategy rather than your advertising program. Show them how you assess true buyer quality via automated underwriting system (AUS) findings rather than accept preapproval letters from mortgage companies.
Teach them how you invoke a risk-mitigation protocol into your listing transaction. Let them see how you determine an effective list price from a return-on-investment perspective. Educate your seller on total market competition that includes not only multiple listing service data, but private-sale and pre-foreclosure inventory as well. Teach them how you determine agency versus non-agency buyers and if the mortgage applied for has a "portability feature" to protect their contract of sale.
These are but a few of the critical elements that you can use to educate your seller. Sure, throw in your market share, production awards and charitable donations, but remember that the three other agents who presented to the seller earlier in the day had the same book as you, although maybe in a different color.
Scott Einbinder is a national real estate speaker and trainer.
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Submitted by Ralph M on August 6, 2008 - 12:29pm.
"""""""Why is the rate of listing expirations at an all-time high? It's not because the seller listed it too high -- it's because the agent took the listing at the wrong price. All listings require at least two signatures, that of the seller and that of the agent. No matter how unrealistic the listing price was, you the agent endorse the insanity the moment you sign your name!""""""
I am in LUV......there is another person with a thoughts like mine...
You free for lunch?
Submitted by Ralph M on August 6, 2008 - 12:32pm.
Ok, Now Teresa and the rest of you bloggers get involved here and tell my luv above she is wrong because she needs to blog more and be involved with social networking sites and THAT will help her sell her listings in this type market?
You free for dinner?
www.aarsteam.com
Submitted by Daniel Rothamel, Inman Community Manager on August 6, 2008 - 1:25pm.
Ralph,
I'm not really sure what the point of your last comment is. I spent a lot of time with bloggers during Connect SF '08 (especially during Bloggers Connect). Not once did I hear any of them advocate abandoning the basic principles of real estate practice for blogging, or any other type of social media.
Quite to the contrary, those agents who do blog and take advantage of social media view it as a great way to educate clients and customers about real estate and their local markets. Teresa being one of the first among them.
Nothing can replace doing your job properly and being dedicated to your profession. Blogging is a manifestation of that dedication for some, not a means to replace it.
http://www.RealEstateZebra.com
Submitted by Bernice Ross on August 6, 2008 - 1:50pm.
Bernice Ross, CEO RealEstateCoach.com, the place you go to make Real Estate Dough!
Scott, great article and completely agree that listing presentations need to die--so 1990's. Instead, we need to move to having a listening consultation--one that starts with a conversation about what matters to the seller. Instead of the old approach of hunt'em, tell 'em, and sell 'em, the strategy that really works is to ask questions. What have you enjoyed about living in the property? Will these features be important in your next property? Are there any special features buyers might not notice while walking through the property? Take notes to let them see that you are listening.
Then be prepared with a list of services that you provide that will help the sellers obtain the highest price in the shortest amount of time--this means, how will you provide maximium exposure to the market place. Finally, share the numbers with the sellers and turn the decision back to them. It's their house and their decision.
Submitted by Catherine Read on August 6, 2008 - 2:10pm.
I am personally waiting for the death of real estate jargon. And I also agree with Bernice that it's about listening, which is the most important skill any sales person can have. Whatever you call it, it needs to be a conversation that sets expectations for both parties. (And people outside the industry don't call homes "listings" which makes a "listing presentation" too agent centric anyway.)
As for the ongoing debate on the value of blogging and social networking, one of the best books I have read on the subject is "Groundswell." Published by the Harvard Business Press in April, Charlene Li and Josh Bernoff draw a very compelling picture of how both are changing every business on the globe.
The world will keep changing whether the people inhabiting it choose to change or not.
Catherine S. Read
Creative Read, Inc.
Submitted by Mott Marvin Kornicki on August 6, 2008 - 2:40pm.
Itvseems that everything that is old-shoe real estate is dying. With technological advances in regards to data-collection, marketing, imaging, MLS, etc.
The technology is available to everybody. It's the way that the technology is used that will separate a pro from a novice.
Sellers will no doubt want to list the property wil someone that they like, trust and have confidence in. The data presentation, may have nothing to do with the outcome.
Mott Marvin Kornicki, Broker/Associate
www.WaterwayRealty.com
305.935.3533 Main Line
WaterwayRealty@GMail.com
Submitted by Cristina Chowath on August 6, 2008 - 3:40pm.
I guess that any smart buyer/seller can tell the difference between someone who is just talking and showing apple pie charts, to someone that listen and goes straight to the point. I guess that’s when a true professional comes up to a smoother process for all the parties. Isn’t it what we all want?
Submitted by Wenceslao Fernandez Jr on August 6, 2008 - 3:45pm.
Right on the money! So many factors affect weather a home sells, it's enough to spin anyone's head.
However, proper pricing as it relates to all the factors that must be considered (location, market and property condition, and seller motivation, to name a few), is in this market, one of the key factors in getting a property sold.
In the process, the one thing that can keep an agent getting referals and/or repeat business from past clients and customers, is without a doubt, service (communication being a heavily weighted portion of it)!
www.MiamiRealEstateKing.com
Certified Distressed Property Expert
Miami-Dade County, Florida.
Submitted by SCOTT EINBINDER on August 6, 2008 - 3:55pm.
Thanks Ralph! Yes I am free for lunch but it must be at the Palm Steakhouse in NYC! Thanks for the kind words....
Submitted by SCOTT EINBINDER on August 6, 2008 - 3:57pm.
Thank you Bernice! Keep up your solid message of value. It serves the the industry so well!
Submitted by John Grice on August 6, 2008 - 4:01pm.
Very good article and comments. The fact is that what the listing meeting should be as I was taught in the early 90's.
Two things, first everyone still needs to set themselves apart, questions could do this.
Second, I'm concerned if you really believe that those free online CMA's are valid. Or perhaps you hope they are. Each property is different and a local agent that knows the market needs to make that call.
Yes it does take 2 signatures to make a contract, and in at leaset the two states I have worked in one must be the owner and the second must be the broker, so unless the agent is the broker, it isn't a valid contract. Yes some agents will take overpriced listings, no guts, in a good area for exposure or for a friend or family member.
John Grice
REALTOR®
Naples, FLorida
Submitted by Lenore & Alex Wilkas on August 6, 2008 - 4:19pm.
Years ago I was trained in consultive selling – i.e. asking questions, probing, and then only once all questions had been asked, beginning to answer each of them while weaving them into what it is you can do for them. It sounds so easy but it takes a lot of practice. I try to use this with every meeting I have whether the client is a buyer or a seller. It's always all about them. It's mever about me, but what I can do for them. This can't be done in written form, it's verbal.
We don't have a formal "listing" presentation that we use any more(I can hear the comments now!). I need to know what the client's expectations are. What they hated, what went wrong the last time, what they dream about. I can't set expectations unless I know, truly know, what these are. Since most agents don't ask these things, we are immediately set above the others.
We use the virtual world for our marketing and data. I can spin a head with the data I have, but it's only useful if the person seeing it understands what I'm showing and why. Engineers and Executives take to this the best, Seniors don't.
Know your audience and address their needs. It works.
~~~~~~~~~~~~~~~
Lenore Wilkas
Prudential CA Fine Homes International
www.SanMateoRealEstateNews.com
Submitted by Mike Costanza on August 6, 2008 - 4:38pm.
The above mentioned article makes some great points.
It boggles the mind why there are so many over priced turkeys on the market.
Real Estate still comes down to having a flock of qualified buyers
making the phone ring off the hook to go see your wealth of great inventory.
I thank God that I found the secret to this the last 7 months.
I have taken over 1,000 listings in my career with over 800 sold but in the lasy half of 06 and all of 07 I thought I lost my fastball and forgot how to help buyers and sellers get what they want.
Listing after listing of referred homeowners and folks who knew about me were not impressed with my past. They just wanted to get
an unrealistic price for their house. They suffered from selective memory loss as they forgot what price range I told them to list and what to expect.
What is my point?
Take a well priced listing from a super motivated seller and you will like or love your business again.
It will make you want to prospect all the more.
For me, I found my niche in short sales. I tell anyone who is struggling to find the thing that makes your phone ring.
Your testimonials will be your listing presentation.
Submitted by Stacey Pfeifer on August 6, 2008 - 5:04pm.
Strong article, Scott. I'll be adding a link to it in some of our tips for Number1expert clients. I like that you just cut to it with such clarity.
Lenore- wow, great comment & an impressive approach!! It inspired me to consider what I'd need to approach any business conversation that way...practice listening more, research more know your stuff inside and out, be clear about your agenda [listening and solving problems], relax, be happy, know who I am and what my value is and do some creative problem solving. That seems like SO MUCH more fun than dumping a boring presentation onto someone!
Submitted by Dave "Utah Dave" Robison on August 6, 2008 - 5:09pm.
Its about providing value. When you are doing what everyone else is doing....your are average. What value do you provide that others dont? Dont say marketing or service. What specifically?
Your Friend,
Utah Dave
www.utahdave.com
Submitted by Mark Owens on August 6, 2008 - 6:37pm.
There Are No Deaths..Just Resurrections.
...Just repackaging and renaming. Consultative selling has been around forever.
The following paragraph is from "How To Sell Real Estate At A Profit...Methods Used And Proved In 32 Offices" .....PRINTED IN 1909!
"The methods used by an agent in presenting his proposition to the client have a great deal to do with making the sale of real estate. The conference between the agent and the client should be opened up by a series of questions from the agent in the endeavor to find out just what the client wants. In no way should he attempt to force upon his client a property unsuitable to his requirements. The whole battle of the first interview is to convince the customer that he can conserve his best interests through his expert knowledge of the conditions and circumstances of the real estate business, his knowledge of values and his facilities for properly filling the want. The agent must study his client and ascertain his wants."
Submitted by Jason Brown on August 6, 2008 - 11:07pm.
While I do not question Scott Einbinder's intelligence or his desire to provide information that is helpful to real estate agents, after 20+ years of selling real estate full time, what annoys me about people like him is that it is so easy for him to talk about what other people should do without him personally applying what he preaches out in the trenches.
I pride myself in how quickly I respond to my clients and even guarantee my response time. But Scott is recommending to "promise your seller that you will return his or her inquiries within three hours or you will or reduce your commission by 50 percent." This is absurd!
What if I was in a traffic accident and I was unconscious for a couple of hours. What if I accidentally lost my cell phone and did not know my client had called me. What if there was a problem with my voice mail and somehow I did not get the message till the next day? Does Scott not realize that voice mail message systems sometimes crash? Did Scott not know that the Blackberry system was down for some time before earlier this year? What about the new iphone buyers who had trouble activating their phones? This is one of the most idiotic ideas I have ever heard.
If Scott was a practicing agent actually applying what he teaches, he would quickly see that what he is recommending is a very bad idea. The penalty I give my clients if I am late in responding to their call is $20 per incident that increases every time it happens. So far I have yet to pay this penalty and my clients are very pleased with my response times. Scott is hurting his reputation with recommendations like this.
Submitted by Josh Blair on August 7, 2008 - 4:43am.
Fantastic! Thanks for breaking this business down time and time again. It is refreshing and inspiring to know that at anytime we can increase our sales by simply being truthful and honest with our clients and ourselves. Why do we tend to complicate what is seems so simple and obvious? Thanks again!
Submitted by SCOTT EINBINDER on August 7, 2008 - 6:44am.
Thanks for your comments Jason Brown. If in fact you are an agent, I applaud your service of even having a response time guarantee. I am sure all those who read my article understand the spirit in which I shared my view. If you have a service that has true value, it shows a commitment to deliver on it. I wonder how many of your clients see $ 20.00 as a thing of great value. To me, it does not seem to provide much of an incentive to deliver. It seems to me like a restuarant that gives you a "free drink" if you are unhappy with the meal and service. But if it works for you, great!
What is curious about your post is the negative tone! I think we can all agree that there are too many agents who are out there with a bad attitude. Those who knock new ideas, reject innovation and dwell on the exceptions and catastrophic events as reasons not to consider new strategies. Agents who voice their opinion surrounded by a personal attack.
I found it curious that you are able to assess what I realize about voicemail breakdowns and other facts of life that happen. I am sure the readers see the difference and see the point.
The underlying tone of your post is that those who give advice should not do so if not in the trenches. While I am sure you have no knowledge of what I apply, the larger issue is that there are tremendous ideas and strategies that come from support systems around you. There is always that group of agents within an organization who whisper to other agents their opinion of new ideas and often destroy the new idea before it had a chance to get started.
I was taught it is always good to listen to ideas, try them, and if not for you, move on to something else. To call other ideas "idiotic", speaks more to the one who makes that statement than it says to the one it is directed to.
I truly hope your $ 20.00 response time guarantee works for you. I am glad you have never had to offer it to one of your clients due to the excellent service you deliver. I just hope that you have never been asked for a
$ 20.00 penalty payment because you do not have enough clients you work for. Continued success!
Submitted by Ralph M on August 7, 2008 - 7:04am.
Dan,
You can color bogging as a "manifestation of that dedication for some" or any other bs. You can not prove blogging works to your clients advantage in any way for real estate transactions othere than heresay of which you as a real estate agent is banned from promoting.
Regardless of what you have heard from other real estate professionals, if YOU belive it works as a positive, then great. It is only your sole opinion with no facts or positive statistics in relation to real estate success.
If blogging was so great, why don't professionals such as Doctors, Attorneys, and/or Dentist(s) utilize it?
Answer- Its because it does NOT work.
Your opinion is one thing, but facts are another.
Blogging is a waste of time and does NOT benefit your sellers interest in any such way..
Prove me wrong and show me statistics here on Inman for everyone to view. Until then, leave your opinions on your zebra blog and only bring factual information here that will help other real estate professionals out....legally.
www.aarsteam.com
Submitted by Daniel Rothamel, Inman Community Manager on August 7, 2008 - 7:58am.
Ralph,
I'll contact you about it.
http://www.RealEstateZebra.com
Submitted by Jason Brown on August 7, 2008 - 10:05am.
Scott Edinger says: "I just hope that you have never been asked for a $ 20.00 penalty payment because you do not have enough clients you work for." Low Blow - LOL.
You criticized me for having a negative tone and assuming things about you. Yet you are doing exactly that to me.
1. OK I apologize for hurting your feelings by saying your idea was idiotic. If you read my post carefully, I was NOT calling you an idiot, I was just refering specifically to your recommendation to lower an agent's commission by 50% if an agent is late in returning a call. Sorry, but I still think this is an absurd recommendation. You may not know this, but even the smartest people come up with stupid ideas from time to time. I know I have been guilty of this myself - I guess you must be perfect and never come up with poor ideas. You have my permission to call me an idiot if you want to - it will not offend me.
2. Well I guess we all know now that you are good at putting other people down who disagree with what you have to say:
a) You sarcastically belittled my $20 penalty that works for me. I agree with you that $20 is nothing compared to a 50% commission cut. But if it works, why not? In case I accidentally forget to call back a client at least I won't lose 50% of my commission.
By the way, I am not offended that you don't like my $20 penalty idea and I won't do what you do and accuse you of "knocking new ideas and reject innovation" when someone disagrees with me.
b) I am disappointed that you would take your personal attacks further by sarcastically belittling my production numbers and insinuating that I don't have much business: "because you do not have enough clients you work for." The joke is that you don't know my production numbers. To give you a clue, in 2003 I was in the top 100 world wide out of 87,000 agents with the company I was with at that time. Despite that, you do have my permission to call me a low producer if you want.
My post may have come across as being negative because of my past experience with other trainers over the past 20 years who gave bad advice that I listened to. For example: "Farming is for mediocre agents", "Bonding is for losers", "Get straight to the point and don't use small talk." etc - that were all given by people who were not practicing agents and who did not realize at that time how wrong they were. Unfortunately there are many new agents (like myself at that time) who are not able to discern good vs bad ideas yet and implemented strategies that were detrimental to their success.
Most of the trainers in due time realized their errors and stopped teaching them - but they could not undo the losses suffered by the agents who followed their erroneous ideas.
OK Scott, I wish you continued improvement as you refine your skills because you do impact the lives of the people who listen to you. Today is my day off, so I had the luxury of time to respond to your post.
Cheers!
Submitted by Miss L.S. on August 7, 2008 - 10:57am.
Wow. I don't understand why people make comments so personal? Don't you realize that your buyers/sellers could be reading these posts too?
Maybe because I'm not "in the trenches" there's something I'm missing...
Submitted by Nancy Gray on August 7, 2008 - 12:43pm.
Nancy Gray. Well now; sure looks like this article has sparked some interesting comments and ruffled a few feathers. It's not easy to let go of the old habits. After 31 years I do recognize that the role of the real estate licensee has evolved. Today it is all about consulting and educating the buyer and seller. I do agree that it's not as easy to practice what you preach however in Scott's defense he has gone out in the field with agents and brought his philosphy right to the cleints table. It has been a long time now that we have all tried to impress the consumer with the same bill of goods wrapped in a different color. The internet has opened so many doors into our industry that there aren't many secrets left. I do believe that today you do need a strategic plan rather than the typical marketing plan.
I am not sure why so many of us are so upset with being responsive to the client! Why is "real time" so threatening? Scott is right on making the statment that it is the starting point of service. If real estate is your career, if it is who you are and what you do then a "Response Time Guarantee" should not be so threatening! As a Broker-Owner of a very active real estate brokerage I do not tolerate unavailable agents.
Submitted by Jason Brown on August 7, 2008 - 3:59pm.
While I disagree with the size of the penalty that an agent should pay if they are late in returning a client’s calls, I do whole heartedly agree with Scott that giving a Service Guarantee or a Guaranteed Response Time is very important. In all of my listing agreements I write : “Seller may cancel this agreement at any time without cost or obligation.” I do that because I am confident that they will not fire me due to bad service. I have done this for the past 10 years and no one has ever exercised this right yet.
To enable me to provide the highest level of communication for my clients, when I get a new client, I have them fill out a detailed Communications Preferences Questionnaire. Here I not only ask for all of their contact info, I also ask them:
_ What is the earliest that I can call you in the morning?
_ When is the latest that I can call you at night?
_ If the need arises, can I call you at work? If yes, at what times?
_ What time do you normally have dinner? (So that I don’t interrupt your dinner)
_ When there are multiple owners: who should I contact first when I have a question or need something?
Etc….
I give them my cell phone and home office phone number, and tell them that I can take calls between 7AM–10PM. But I ask them to please just email me their questions when it is non urgent or routine administrative in nature, and to please limit these types of phone calls to the hours of 8AM – 6PM Monday – Friday. So far this system has worked very well for me and I rarely get calls outside of those hours.
Submitted by A.V. Perez on August 7, 2008 - 9:33pm.
Scott starts out very well, addressing some of the main issues in marketing properties. However, I feel that he then appears to be more concerned with trying to impress the reader with such terms as AUS and Return on investment. He gives us no specifics, just fluff. As I understand it, AUS is one of the reasons the mortgage industry is in such a mess. Automatic Underwriting raises the debt to ratio allowed by automatic underwriting from 45% to 70% and places more value on the buyer's credit rating without fully looking at the reality of that buyer's ability to make those payments. Hence the serious situation the lending institution is in today. Now concerning ROI, I would have appreciated some serious discussion on this issue by receiving concrete examples. To make your talk worthwhile Scott, you must first educate us on this ROI-based listing technique of yours. I say this because in my experience, I have found that sellers are not real interested in a math course to determined what they have already decided for themselves. I have always found that a realistic explanation of "Market Price" and how it affects how fast his house will sell is effective in getting a realistice listing price.
A.V. Perez
Broker-Associate, GRI
Keller Williams Realty
AVPerez@AV-Perez.com
Harlingen, TX 78550
Submitted by SCOTT EINBINDER on August 8, 2008 - 7:07am.
Thanks for the comment A.V. Perez. The goal of my article is to start a conversation on helpful and critical issues often misunderstood by those in our industry. First, AUS stands for Automated Underwriting Systems. With this knowledge, you can request of the lender that provided you with a pre-approval letter, for a copy of the LP (Loan Prosepctor) or DU (Desktop Underwriter) electronic underwriting report. These are the underwriting engines for Freddie Mac and Fannie Mae. The value to both you and your client, is that this is the commitment behind the commitment. It will reveal if you have an agency buyer or non agency buyer. It will reveal if your buyer has "mortgage portability". Buyers with agency approval, notwithstanding the issues with Fannie Mae and Freddie Mac, can be, in many cases a more secure buyer, as Buyers who have non-agency commitments or portfolio lender products can be subject to a real problem should that lender go out of business or run out of funds prior to closing. I would recommend you reach out to your mortgage partnership to better educate you on LP/DU Analysis as it will help you in the field. You can also contact me directly and I can share more with you.
My ROI technique is to assess the sellers ROI from a real dollar standpoint. The broadstroke is to add the sellers real cash investment of down payment, improvements, estimated transfer tax, and estimated real estate commission and compare that total number to an estimated profit on the home. This will provide your seller with a ROI on real dollars, rather than provide a Market Value Analysis based on "false equity". All those REDUCED signs on the front of peoples homes are all under a false equity perspective.
My opinion of your statement that "sellers are not interested in a math course" might be an opportunity for you to redirect that perspective. The math is the money and I think sellers care about the math. What they need is accurate math and true math, rather than facts and figures that have no bearing on their specific home.
Salesmanship is about getting a seller or buyer to change perspectives. You provide much more of a valuable service than opening up doors and sitting open houses. Feel free to reach out to me directly if you have more questions...Good luck!
Submitted by lucas shortridge on August 13, 2008 - 3:42pm.
Great blog Perez, another good idea would be to make peronal webpages, and guide your consumers to those. This will allow your clients to see what your all about especially if you have blog links or your actual blogs on your site. If you have a fully integrated site they will be able to pick and choose what they want to see.
Submitted by Joseph Bridges on August 18, 2008 - 9:54am.
Listing education is the right mindset. Asking questions and interviewing the seller is much more effective then flipping through some charts. The consultation approach is far more effective then flipping through some charts.
Visit the blog at: http://www.InternetRealEstateSuccess.com
Real Estate Resources at: http://www.OnlineRealEstateSuccess.com
Submitted by Laurie Clark on August 18, 2008 - 8:56pm.
I thought the article was a new and refreshing approach and it is so true. I usually get most of my listings but have to say I have expireds under my belt. I will include the topics in the article in my next listing presentation.I do believe the sellers would benifit from this.