John Dini's Tips for a Better Real Estate Business

Face to Face

John Dini — Tue, 02 Mar 2010 18:37:00 GMT

Successful Realtors are becoming masters of communication methodologies. They email, voice mail, text, twitter, IM, and fax. Some regularly use two or three methods on each client contact, just to make sure the message got through.

As a side note, I’m not particularly thrilled when my phone vibrates with a voicemail, then with a text, then I get an email on my computer, and they are all the same message.

Regardless of your electronic communication skills, however, there are times when only face to face contact works.

First meetings obviously require face to face contact. While your introduction may have been generated through a web contact or an emailed referral, get some face time as soon as possible. If the prospect is a long distance away, try Skype or another video call program. Many are free, and there is nothing like putting your face in the client’s memory banks.

Pretty much any meeting for the purpose of discussing money is done better face to face. Both buyers and sellers have big emotional investments in the amount, and a small dollar amount percentage-wise can loom large psychologically. Looking in the customer’s eyes can give you an early warning, or tell you when what they are saying may just be posturing.

If you want future referrals, accompany your client to the final signing. I’m always surprised when an agent calls to tell me “Just go by anytime. They’ll have the paperwork ready.” This is the moment when the commission is made. Why would an agent want to “mail it in?” Any loyalty I have due to the agent’s efforts so far is greatly dissipated when they aren’t there at the finish to congratulate me.

Approximately 85% of human communication is posture, gesture and facial expression. Understand when you can get by with only the 15% that’s the message, and when you can’t.

Window of Opportunity

John Dini — Thu, 12 Nov 2009 19:02:26 GMT

Abraham Lincoln said "If I had eight hours to cut down a tree, I'd spend six of them sharpening my saw."

Thomas Edison said "Success is 10% inspiration and 90% perspiration."

Many salespeople think that their key skill is an ability to relate to people, or an understanding or the market, or a vast network of contacts. Your most important skill is being prepared. Nothing turns a prospect off faster than offering someone an opportunity and receiving an inappropriate response.

Your marketing efforts set the table for your windows of opportunity. Your networking, postcards, calendars and signs exist to put you at the "top of mind" for someone who is looking to make a purchase decision. That window opens once, and usually only once. Unless you are prepared to recognize the opportunity and address it, it's is unlikely to com around again.

You know what the windows of opportunity look and sound like. "My brother in law just got transferred." "It's time to place my aunt in assisted living." "My daughter got engaged."

Are you prepared to show your value in the next 30 seconds after the window opens? Too many of these opportunities are simply addressed with "Here's my card. Please have them call me if they need any help." Or "That's great! Do you think they need any help with their house?"

You need to jump through that window by giving someone a reason to sell you as the solution. "Did you know that I'm part of a full corporate team that handles thousands of relocations a year?" "When elders sell their homes, they often need cosmetic repair. Would you like me to look at it and see what I would recommend?" "I saw several great houses last week that would be very affordable for a young couple."

Sit down and write out all the reasons people need a Realtor, with your specific response to each situation. Be prepared for the window of opportunity when it opens.

Details Leave Lasting Impression, Can Build Loyalty

John Dini — Thu, 29 Oct 2009 15:45:00 GMT

A long time ago I sold foreign auto parts on the telephone. My customers were typically small foreign auto repair shops, whose owners had names like Otto, Franz, and Helmut.

One pair of Hungarian brothers had a very small shop. John had an excellent command of English, and spoke to the customers and vendors. Dobrei (with rolling ‘r’ and long “e”) spoke only a smattering of English, and spent the majority of his time cranking out the repairs.

They found us right after they opened, and I always handled their account, which grew to be sizable. When I decided to leave that job for greener pastures I called most of my regular customers to say good-bye.

“We will miss you,’ John told me “we never bought a single thing from another supplier.” I thanked him for his loyalty. “Don’t you want to know why?” he asked.

I wanted to think it was due to my sparkling personality and encyclopedic parts knowledge, but that obviously wasn’t the answer. I asked him to tell me.

“Because you were the only salesman who ever bothered to learn how to pronounce my brother’s name.”

I had done it out of simple human respect, but his comment sticks with me even 30 years later. I still cringe when I hear a real estate professional say “Meet the Smiths. They are from Wisconsin.” and the client says “No, actually we’re from Ohio.” Or “This is their lovely son Kenny” brings a six year old’s outburst of “My name is KEVIN!”

You can never know which personal information is most important to your client. Show that each one is important to you. Pay attention to the details.

Body Language

John Dini — Thu, 01 Oct 2009 18:43:00 GMT

Behavioral scientists claim that up to 85% of our face to face communication is non-verbal. There are literally hundreds of clues as to how your message is being heard when you talk to a client.

Unfortunately, most salespeople are focused on what they want to say; and a lot of those clues go right by them. I watch realtors and stagers take prospects through a house. What are they looking at? The house! Here’s a news flash…the house doesn’t have any money!

The stager is looking to see what she will do with the room. Your brilliant idea to paint over the chartreuse wall or remove the large brass nude on the coffee table isn’t going to convince the homeowner to hire you. YOU are what you are selling, not your ideas.

I’ve watched a real estate agent take a couple through the house pointing out obvious features, while totally oblivious that they were spending most of their energy on signals that they thought he was a clown. Smirks, elbows and rolled eyes were flying, and he was clueless. There was no way they were going to buy a house from him.

I don’t understand why so many agents feel that they have to blabber constantly. The client can probably discern that the room has a high ceiling, two sinks, or a tile floor. The information you miss by having your back turned when the clients first enter a room is priceless. Watch for a frown, an exchanged glance, eyes that are immediately drawn to a fireplace or breakfast nook.

These are the clues that will tell you what to emphasize when you sum things up, or when making a note on the client’s listing sheet. “Remember, this is the one with the stone fireplace and the oversized breakfast nook.”

The most important feature in any sale is not the product, it’s the client. If you are paying attention to anything else, then you are less successful than you could be.

Are You Referable?

John Dini — Wed, 16 Sep 2009 20:52:25 GMT

No one wants to be embarrassed by a friend or colleague’s negative comment about someone they’ve referred. One such will kill recommendations by that person forever. Here are a few simple habits that will help you generate glowing thanks from your new clients to the ones who sent them.

Show up on time. When you’re busy, it’s tempting to try to schedule every minute of the day. If you find a tight schedule has you apologizing to waiting clients, take a good look at the impression you’re creating. No one wants to feel that they’re your second priority.

Return all phone calls the same day. Even if it’s late, and you can only leave a voicemail. Always let every client know that you didn’t end the working day until you at least made an attempt to get back to them.

Don’t promise what you can’t do. If you can’t get something done until the end of next week, say so. It’s far better to manage a client’s expectations than it is to fail in fulfilling them.

Finish strong. Nothing makes me more reluctant to refer someone than waiting for a last minor task that they failed to close out. Always make one last extra call to your client, to make sure there is nothing else they think you are supposed to do.

Pay Attention!!!

John Dini — Thu, 03 Sep 2009 15:44:52 GMT

Most sales-oriented professionals spend the majority of their communications time either talking, or thinking about what they are going to say next. There is a reason you were born with two ears and one mouth. While you may have heard that before, and be conscious of it in conversation, listening is much, much more than just not talking.

According to some studies, up to 80% of our face to face communication is derived from non-verbal clues. Most of us assimilate those clues into our conversation without realizing it, but taking conscious notice of them can raise your effectiveness to a whole new level.

How does the other person process information? Most people are visual processors, but some rely more on auditory stimuli and a few on kinesthetic inputs. Listening for verbal clues can help you determine which methods will be most effective.

If someone says “I see your problem.” Make sure you provide them with visual stimuli such as pictures and graphs. If they mention that “Something doesn’t sound right to me.” Make certain to describe things clearly, as if you had no written material to fall back on. Do not assume that they will read your material later. If they say “This feels like something we should do.” Talk about what they will feel like when done, such as “You’ll be so comfortable in this neighborhood.”

Carefully noting a client’s preferred method of processing information, and responding in a way that they are most likely to understand, is a powerful tool for getting your message through when others fail.

Professional Communications

John Dini — Wed, 19 Aug 2009 19:21:00 GMT

Buying and selling homes though the years, I’ve had plenty of opportunity to observe real estate salespeople. It astonishes me how many of them have little clue about professionalism in their communications.

Professional communications begin with responsiveness to the needs of the client. Today, that means being able to communicate in a way that works best for the customer, not best for you. Some people text all day long. Others check their email constantly. Some still prefer not to be called on their cell. Everyone has developed personal systems for filtering the many forms of communication to a controllable level.

It’s your job to communicate in the way that the client prefers, not the other way around. I still hear comments from real estate professionals like:

“I just forget to check my email for days at a time.”

“My kids do that all the time, but I just don’t deal with technology.”

Call me on my cell phone. That’s the only way to get hold of me.”

Replace all of these with “How would you prefer that I communicate with you?”

Once you’ve established complete communications capability, make certain that each method represents you as a top professional. Your voicemail recording does not need to include 32 bars of your favorite Country & Western song. (I hang up after the first 5 notes.) Your email address should also show some thought. You may like cats, but kittylover@yahoo.com doesn’t inspire me with confidence in your business capabilities.

It’s a competitive market out there. Making communications inconvenient is just another reason for customers to do business with the next person in line.

Goooaaal! Your Daily Point Strategy

John Dini — Fri, 07 Aug 2009 17:53:46 GMT

How did you feel when you were handed your last commission or fee check? Was it the high point of your day? Did you tell family, friends or colleagues about it? Everyone reacts positively to "He shoots... he SCORES!!"

What do you do to re-create that feeling in between checks? You probably have secondary psychological "scores." The signing of a contract, a referral, or receiving an office award are all outside recognition of your talent and ability.

Most days (and some weeks,) however, don't afford the opportunity for third-party recognition. How do you keep yourself motivated? How do you stay excited enough to attack routine or difficult parts of your business with enthusiasm?

Set some SMART goals for yourself. SMART is an acronym for Specific, Material, Achievable, Realistic and Time-Sensitive. Sell a SMART goal might be “Attend at least one new networking event each month for the next year." Whereas “Become a great networker." isn't SMART, because there is no quantity of time frame attached.

Develop SMART goals for your major daily activities. Start with a focus on Achievable. Should you be making five cold calls daily? Start with a goal of two, focusing on the process of making calls every day is more important than the number you make at first. Set the number low to start and work it up once you've made it a habit.

Set points for each activity. You may want to give yourself an incentive by valuing things you dislike higher than things you like. So “write personal thank you notes” may be a 10% score, while “Make at least 10 cold calls” could be a 30% item.

As you progress, you'll develop a scorecard of five or six daily goals. Complete these to give yourself 100% on your scorecard, and you’ll develop the ability to look in the mirror for your well-deserved recognition.

Using Voice Mail Effectively

John Dini — Mon, 06 Jul 2009 19:54:00 GMT

I love voice mail. I hate voice mail. I love voice mail. On some days my opinion changes with every voice mail I send or receive.

You look at your cell phone. It says "7 new voicemails." Are you happy? Do you worry about the message?. "We decided that we aren't interested." or "We're tired of waiting. If you can't get an answer for us, we're doing something else."

Of course, "We got done early, come pick up your check." is always a nice one. The worst ones are those that create additional suspense and stress in your life. "Something's come up; we need to talk." is worse than no message at all.

Voice mail is an electronic tool, like email, and has its own rules for effective communication. Used properly, it enhances your image as a professional. Used poorly, it will cost you business.

First, check your voice mail message. You should state your first and last name, thank the caller, and give details of how a message should be left. Those instructions might be to press one, speak as long as you like, or state the time of your call, depending on the system and your preferences. Ten seconds is about right.

Don't go overboard expressing your personality in the message. What amuses the daylights out of your kids and friends may not seem so funny to a top executive seeking a real estate professional. Snippets of popular tunes, Darth Vader or Jimmy Cagney impressions and comic sound effects are definitely out.

When leaving messages, state your business. This is my absolute pet peeve. I have voicemail because I am too busy to answer all my calls as they come in. A message that says, "This is Bob calling. Call me back." tells me nothing more than I already knew from my Caller I.D. If I can make one call in the next ten minutes, why should it be to Bob?

I've done entire transactions via voicemail, when the person on the other end knew how to leave a message. "We have some problems with the language in paragraph 4." "The attorney is emailing you a revised agreement." "We think this looks good, let's move forward." "I'm sending final documents by courier. When can we pick up the check?"

Voicemail should be a time saver. Professionals should be careful not to use it as a time waster.

Cash (Flow) Is King

John Dini — Tue, 23 Jun 2009 18:47:00 GMT

“Cash is king," or at least that's how the old saying goes. Many consumers didn't realize that the rules changed substantially in the 1990s. Credit became the new king. Employees at retailers like Circuit City laughed when a customer said ”What can you do with the price if I pay cash?" In a company that generated all of its profits from interest on credit purchases, cash was subject to a higher price.

Cash flow, however, has always been the lifeblood of any business. Your ability to maintain marketing efforts for your practice or for your clients is directly related to the dependability of your cash flow. All marketing is more effective with consistent application. Being highly visible at times and invisible at others just isn't effective.

How do you maintain cash flow between transactions? Try paying yourself a reasonable salary, and banking the rest of your commissions as “profits" to pay business expenses. If you have insufficient profits to operate, you may have to incur some short term debt. The best debt instrument is a line of credit from a bank or credit union that you can draw on or pay back on a day to day basis. Term loans or home equity loans may have an attractive interest rate, but they violate a key rule of financing by incurring a long-term liability for a short-term benefit.

Very short-term financing, credit card advances and commission advances, are the most expensive way to maintain your cash flow, but can be useful for a specific short-term need. Credit card companies will encourage you to move your debt into the long term category by offering a “low easy payment.” Commission advances are self-liquidating when the home sells, but require the sales contract as security.

Regardless of how you maintain it, cash flow is vital to the concept of running your real estate profession like a business. If you are only a “business" when you have a commission check in hand, those checks will eventually be fewer and further apart.

Never Say "I"

John Dini — Tue, 26 May 2009 04:27:00 GMT

The vast majority of real estate agents and stagers are independent business people. You set your own schedules, find your own customers, and pay your own expenses. Your relationship with each customer is based on a strong one-to-one personal bonding. Why then, shouldn’t you refer to yourself as “I?”

At first, it might sound funny to say “we” when you are just referring to yourself. It is a prerogative that is usually reserved to kings and popes. It can occasionally incite a sarcastic comment, like “What ‘we?’ You got a mouse in your pocket?”

Nonetheless, using “we” when discussing business with a client is both appropriate and beneficial, not to mention good marketing.

When meeting with a prospective seller, remember that he or she has probably picked you for several reasons. Hopefully, they have had previous contact with you, or were referred by someone who has. Perhaps just as important, however, is the name and logo on your business card.

The vast majority of Realtors work in one of the franchised or branded offices of a national organization. When the prospective client meets with you, they are meeting with all those friendly, smiling folks on the TV commercial or magazine ads. Using “we” reminds them (and you) that you ride for a brand, and that there is an organization behind you.

When speaking with a prospective buyer, you are the agent of the seller (at least in most states.) You speak for the sellers, and are responsible for protecting their best interests. It is right and appropriate to use “we” when discussing those interests.

Using “we” appropriately communicates a sense of security, a vested alignment with your customer, and a feeling of substance.

One caution. “We” is not appropriate to refer to you and the person to whom you are speaking, especially in a negotiating situation. That usage will draw those sarcastic comments, and drive a psychological wedge between you and the other party. I always balk when a waitress asks “And how are we today?” I answer “We are fine, but I have no idea about you. We just walked in!”

What Makes You Different?

John Dini — Thu, 07 May 2009 17:31:00 GMT

To be an effective marketer, you must give prospects some reason to remember you. There are two ways to go about being memorable. You can spend a lot of money, or you can be different.

Differentiation is the art of finding something that is just yours, that sticks in people's minds for a long time after they meet you. Ideally, your differentiation is something that jogs someone's memory when they need your services, or want to refer you to a friend. Wearing a funny hat can be different, but how do you look up "The Realtor with the Funny Hat?"

There is a story about an exterminator. He usually treated his clients' houses while they were away at work. He left a note saying that he had been in that day, and as a thank you, he would put the note under a single red rose on the kitchen counter. Everyone knew him as "the exterminator who leaves the roses," and he got 100% of his new business from referrals.

What is your differentiation? Most Realtors® advertise with attributes like honesty, professionalism, and friendly service. That will only differentiate you from the people who advertise that they are nasty, incompetent crooks. Advertising that you merely meet the minimum expectations of a customer is a waste of time and money. Find something personal and memorable in the way you interact with your customers, and make it your brand.

There is another way to be remembered. You can make sure to stay in front of prospective customers all the time. Regular advertising, calendars and postcards work, they just cost a lot more than being different

Do You Have A Job Or A Business?

John Dini — Thu, 23 Apr 2009 03:56:00 GMT

For many self-employed individuals, what started out as a dream of independence has become merely a job. Even worse, self-employment often means a job with a really lousy boss. The first step to financial success and independence is to understand the difference between a job and a business.

A job pays you in direct proportion to your effort at the value of your skills in the marketplace. Business renders the payment of a job, plus a profit. That profit is your compensation for creating systems and value in excess of your direct personal effort.

Michael Gerber, author of "The E-Myth," says that every business, regardless of size, should be viewed as a franchise. A franchise develops systems and processes for each task and action of the business. Making your job into a business requires putting together a personal system to do the same things the same way every time.

Look at the activities you engage in this part of your business every single day. Divide your activities into major categories, such as meeting new prospect, taking a listing, completing assessment, or making a cold call. Each of those activities has a number of tasks that can be done. More consistently and efficiently, if they're done the same way every time. In future postings will talk about some of these areas, and how to develop the systems that will make you stand out as a professional in your field.

The Discipline of Drudgery

John Dini — Thu, 09 Apr 2009 18:11:00 GMT

Most folks in the Real Estate business like people. Unfortunately, a high level of interpersonal skills is frequently coupled with a very low interest in details, routines and systems. Without a process to make sure you are following through on the less exciting parts of being in business for yourself, however, you are far less likely to succeed as a real estate professional.

Each of us has a simple task we procrastinate on. For me, it is writing notes to clients who receive awards or are in a newspaper story. I don’t think it’s difficult. It doesn’t take a lot of time. I know that my clients and colleagues appreciate getting them, because they show that I pay a little more attention and I care a little bit more than the next guy. I just don’t like writing them, and I really dislike looking up addresses and putting them on the envelopes.

If I make a list of who I “owe” notes to, it seems to just get longer and longer. Then a slightly distasteful task starts growing into a nightmare. I start scanning my schedule for a window when I can do “note catch-up,” and believe me, I frequently find more important things to do!

My solution is to keep note cards on my desk at the office and at home. When I see an article or other trigger that deserves a handwritten note, I make a point not to let it leave my desk without writing it out. I get a little boost from the feeling that a boring task is out of the way.

Like most good systems, this one delivers unexpected benefits. By sending a note as soon as I see something, I’m usually the first acknowledgement that the client receives, and am therefore more memorable. In a number of cases, they receive congratulations from me before they even see the piece themselves!

Answering Prospect Questions

John Dini — Wed, 25 Mar 2009 20:38:00 GMT

Have you ever used the Frequently Asked Questions (FAQ) section of a website? If it is well structured you can usually find what you need to know in just a few seconds. You feel more confident knowing that apparently many others have had the same question previously.There is also a level of credibility in knowing that everyone who has the same question is receiving the exact same answer.

Whatever your professional role in the real estate transaction cycle, you are asked the same or similar questions by many of your clients. Don't they deserve to receive the same answers every time? Perhaps you are very careful to say the same thing to every client on every occasion.

That's only half the battle. Everyone hears things differently. Their attention waxes and wanes. They may focus on a single area that is more important to them, and forget the answers you gave them on less important items. Maybe they spoke to two or three professionals in your field, and later can't remember which one gave them the best answers.

Consider developing your own personal FAQ sheet to leave with prospective clients. Answer the most common questions exactly the way you would if you were face-to-face. It will give you something to leave behind with a prospect that reminds them how informed and helpful you were. It will differentiate you from the competition. Best of all, it will ensure that each of your clients receive your very best answer every single time.