Optimize Your Real Estate Sales Process
September 10, 2018
September 10, 2018
Improving Each Stage of the Sales Cycle of Your Real Estate Business
As a Realtor or Broker, the objective of your real estate business is to generate as many sales as possible to earn commissions. But before you can close a single sale, there are certain steps that you need to accomplish first. These stages are what make up the sales process or sales cycle of your business. And if you want to succeed in this industry, you need to aspire to master every step.
Part 1 – Approaching Prospects
Figure out what methods of approaching (prospecting) you need to make to move someone to the next step of the sales cycle. Track the results of each of those prospecting methods, and identify which ones produced the best results for you. You also need to determine the number of approaches you need to generate the sales you want and improve that. Your goal will be to make your prospecting so on point that most (if not all) of your approaches will equate to successful sales and earned commissions.
To accomplish this, you need to do two types of marketing methods: active and passive marketing. In active marketing, the Realtor or the agent is directly responsible for making contact with a prospective client. Examples of this type of time-consuming marketing include cold calling and door knowing. In passive marketing, on the other hand, the physical contact between the agent and the prospect is usually initiated by the latter. This type of marketing is usually in the form of paid advertising, and its purpose is to get the word out in your community that you are an agent in the area that could help them. Some examples include newspaper ads, advertisement signs, and social media.
Part 2 – Making New Contacts and Setting Appointments
How good are you at converting approaches into contacts? And how many of the contacts you made did you successfully schedule an appointment with?
High conversion rates from approaches to contacts and then from contacts to scheduled appointments are your goal at this stage of your sales process. Therefore, you need to determine how many contacts you need to make before you can actually book a new client appointment. You also need to track how many contacts you make in a day, a week, and so on. These numbers will determine your sales and income level.
Ideally, you should be be able to convert 90-100% of your approaches into contacts and set appointments with all of them. For many real estate agents, this stage can get really challenging since, oftentimes, you literally only have a minute or less to sell yourself and the services you offer. Hopefully, by the end of that minute, you’ve made your case well enough that your contact agrees to set an appointment with you.
To improve your chances of scheduling appointments with contacts, you need a “toolbox” of scripts and strategies which are constantly practiced and sharpened. These tools should equip you well enough so that you can handle different scenarios when conversing with a contact. You must also have your resources and information at hand, ready to be used if the situation calls for it, so that you can persuade your contact to set an appointment with you.
Part 3 – Completing Appointments
Once you’ve successfully scheduled an appointment with a contact, that means you’ve built enough trust with that person that they’re willing to spend a little bit more time with you. They’re willing to let you in, and he is more than inclined to share some of his personal information with you like:
- Their personal financial situation
- Why they’re considering buying or selling
- What they can afford
At this stage of your sales cycle, the main goal is to walk away from every appointment having gained a new client each time. Booking appointments with clients and meeting them personally are not just an opportunity for the client to get to know the agent, but for the Realtor to get to know the client as well. It is at this point when both parties decide how far the business relationship will go, and it depends on:
- Whether or not you as a real estate agent feel like you can handle working with the client; and
- Whether the client has learned to trust you enough to allow you to help them buy and sell.
At the end of the day, it’s not just about what you want, or what they want. You both have to be on the same page.
Part 4 – Closing New Clients
The real estate market is a very competitive one. Aside from you, chances are very high that the contacts you’ve met have already spoken to other agents or have plans to explore their other options. And so, as a Realtor, how can you convince your clients that they should choose you? What are you going to do for them that no other agent can do? How do you compete with other agents who already have a history with your contact?
These are all valid concerns, and they are only few of the many hurdles that you will have to overcome every single day. There’s no magic trick that could automatically get clients to transact with you. The best thing you can do is commit your all to your chosen career. Show up for every scheduled appointment; always be prepared with your arsenal of tools and information; and exude a level of confidence and trustworthiness that only a competent Realtor can pull off.
Your listing or buyer’s presentation can be the difference between winning and losing a potential client. It is the first bit of real information you’ll share with a contact as a real estate professional. This initial presentation will be your opportunity to sell yourself as an agent without really bragging that you’re the best person for the job. For your selling contacts, your presentation should show faith to your contact that you know how to price and market a property. Your buying contacts, on the other hand, must feel confident about your skills after the presentation to the point that they are convinced that you can find them the perfect property and that you can negotiate a better price than any other agent is capable of doing.
To successfully close a client, you want to show them how valuable you are during your presentation so that they’ll want to work with you and no one else.
Part 5 – Making the Sale
So, you got a new listing or buying client. Now what? Well, you’re work is just beginning. Now that you have secured a client, you have to make good on your promise that you will help them find the best deals for the property they are either buying or selling. Not only do you need to give your listings your detailed attention in order for them to be sold, you must become a master negotiator for your home-buying clients as well.
Remember: To earn the commissions you want, you need to close as many deals as you can. To be able to do that, you need to get new clients who want to work with you. But before they become clients, you need to approach as many prospects as possible, and through a very limited window of opportunity, you need to show them that you’re the right person to help make their real estate dreams come true.