Success as a real estate agent for dummies

Success as a Real Estate Agent FOR l.c om DUMmIES w w w T he G et Al by Dirk Zeller ‰ om l.c Al et G T he w w w Success as a Real Estate Agent FOR l.c om DUMmIES w w w T he G et Al by Dirk Zeller ‰ Success as a Real Estate Agent For Dummies® Published by Wiley Publishing, Inc 111 River St Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600 Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, or online at http:// www.wiley.com/go/permissions l.c om Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc and/or its affiliates in the United States and other countries, and may not be used without written permission All other trademarks are the property of their respective owners Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book w w T he G et Al LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ For general information on our other products and services, please contact our Customer Care Department within the U.S at 800-762-2974, outside the U.S at 317-572-3993, or fax 317-572-4002 For technical support, please visit www.wiley.com/techsupport w Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Library of Congress Control Number: 2006923950 ISBN-13: 978-0-471-79955-9 ISBN-10: 0-471-79955-6 Manufactured in the United States of America 10 1O/RZ/QW/QW/IN About the Author Dirk Zeller, who as an agent rose to the top of the real estate field quickly, has been on a meteoric rise since he began his career in 1990 Throughout his sales career, Dirk was recognized numerous times as one of the leading agents in North America He has been described by industry insiders as the most successful agent in terms of high production with life balance His ability to sell more than 150 homes annually, while only working Monday through Thursday and taking Friday, Saturday, and Sunday off weekly, is legendary in the real estate field Al l.c om Dirk turned his selling success into coaching significance through founding Real Estate Champions Real Estate Champions is the premier coaching company in the real estate industry with clients worldwide Dirk’s clients average more than a $200,000 increase in their income annually Dirk has created such revolutionary programs as “Protect Your Commission,” “Stewardship Selling,” “The Champion Listing Agent,” and “Positioning Yourself as the Expert.” These programs and others like them have changed the lives of hundreds of thousands of real estate agents worldwide .T he G et Dirk is one of the most published authors in the areas of success, life balance, sales training, and business development in the real estate field He has more than 250 published articles to his credit His weekly Coaches Corner newsletter is read by over 200,000 subscribers each week His book Your First Year in Real Estate (Prima Publishing) has sold just shy of 100,000 copies in just a few years w w w Dirk is also one of the most sought-after speakers in the real estate arena He has spoken to agents and managers at the local, regional, national, and international level for most of the large real estate brands, such as Coldwell Banker, RE/MAX, Century 21, ERA, and Prudential He has shared the stage with such notable speakers as Zig Ziglar, Brian Tracy, and Les Brown Besides contributing to the real estate agent community, Dirk and his wife of 16 years, Joan, are very active in their church They live with their 4-year-old son, Wesley, and 8-month-old daughter, Annabelle, in Bend, Oregon om l.c Al et G T he w w w Dedication So many people have contributed to my success in life, from my parents to my two brothers, my mentors and coaches, and now my two children, Wesley and Annabelle No one, however, has contributed to my success in the real estate field more than my wife, Joan I dedicate this book to her: my supporter, encourager, coach, role play partner, accountability partner, and best friend The success that has been achieved in real estate sales, writing, speaking, training, and coaching was achieved only through our partnership We did it together! Some 16 years later, I’m still amazed at God’s grace in giving me a wife without compare om Author’s Acknowledgments l.c Just as a successful business is always a collaborative effort, so is a book While I receive the unfair lion’s share of the credit, countless others are behind the scenes making me look good et Al To Barbara Schenck, who took my experiences, strategies, thoughts, and techniques and put them into the Dummies format you enjoy, thank you This book would not exist without your enduring effort and patience w w T he G To the team at Real Estate Champions, an incredible group of people who change people’s lives each day, you are the best Thank you to our support staff of Judy Cox and Julie Porfirio whose loyalty all these years means so much to me and to Luci Hamilton and Mary Stewart whose passion to serve others is unparalleled A special thanks to Rachelle Cotton who arduously read every unreadable handwritten word and typed, corrected, and revised the whole manuscript while enduring every last-minute induced deadline Thanks w To our coaches and salespeople who really change the lives of everyone they touch; to our marketing staff of Dan Matejsek and Shaylor Murray; everyone at Real Estate Champions had a hand in this book I also need to thank the team at Wiley Tracy Boggier, acquisition editor, Chrissy Guthrie, project editor, Jessica Smith, copy editor, and the Composition Department You are truly pros at what you I also want to thank Ken Edwards, technical reviewer, as well as my literary agent, Barry Neville, of The Neville Agency Lastly, I must thank my personal clients and our Real Estate Champions clients With you constantly challenging us and wanting passionately to improve, you drive us to work so hard to stay ahead It would be easy to become complacent, but you don’t let us Thanks! Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/ Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Media Development Composition Services Project Coordinator: Jennifer Theriot Project Editor: Christina Guthrie Layout and Graphics: Claudia Bell, Karl Brandt, Carl Byers, Stephanie D Jumper, Barbara Moore, Barry Offringa, Alicia B South Acquisitions Editor: Tracy Boggier Copy Editors: Sarah Faulkner, Jessica Smith Editorial Program Coordinator: Hanna K Scott Proofreaders: John Greenough, Jessica Kramer, Christy Pingleton, Techbooks Technical Editor: Dr Kenneth W Edwards Editorial Assistant: Erin Calligan, Nadine Bell, David Lutton Cover Photos: © Jeff Cadge/Getty Images Special Help Elizabeth Rea Al l.c Cartoons: Rich Tennant (www.the5thwave.com) Indexer: Techbooks om Editorial Manager: Christine Meloy Beck Publishing and Editorial for Consumer Dummies et Diane Graves Steele, Vice President and Publisher, Consumer Dummies Joyce Pepple, Acquisitions Director, Consumer Dummies G Kristin A Cocks, Product Development Director, Consumer Dummies T he Michael Spring, Vice President and Publisher, Travel Kelly Regan, Editorial Director, Travel Publishing for Technology Dummies Andy Cummings, Vice President and Publisher, Dummies Technology/General User w w Composition Services Gerry Fahey, Vice President of Production Services w Debbie Stailey, Director of Composition Services Contents at a Glance Introduction Part I: Acquiring the Keys to Real Estate Success Chapter 1: Discovering the Skills of a Successful Agent Chapter 2: Residential versus Commercial: Deciding Which Type of Real Estate Is Right for You 21 Chapter 3: Pairing with the Right Agency .41 Chapter 4: Researching and Understanding Your Marketplace 61 om Part II: Prospecting for Buyers and Sellers 73 et Al l.c Chapter 5: Prospecting Your Way to Listings and Sales 75 Chapter 6: Mining Gold from Referrals 95 Chapter 7: Winning Business from Expired and FSBO Listings 115 Chapter 8: A Time-Tested Prospecting Tool: Planning and Hosting a Successful Open House 139 Chapter 9: Presenting and Closing Listing Contracts 157 Part III: Developing a Winning Sales Strategy 183 T he G Chapter 10: Determining a Home’s Ideal List Price 185 Chapter 11: Getting the House Ready for Showing 203 Chapter 12: Marketing Yourself and Your Properties Online and in Print 221 Chapter 13: Negotiating the Contract and Closing the Deal .245 w w Part IV: Running a Successful Real Estate Business 261 Chapter 14: Staking Your Competitive Position 263 Chapter 15: Keeping Clients for Life 281 Chapter 16: Maximizing Your Time 305 w Part V: The Part of Tens 327 Chapter 17: Ten Must-Haves for a Successful Real Estate Agent .329 Chapter 18: Ten Tips for Working with Buyers 335 Chapter 19: Ten Biggest Mistakes and How to Avoid Them .341 Chapter 20: Ten Web Sites for Real Estate Agents .347 Index .351 om l.c Al et G T he w w w Success as a Real Estate Agent For Dummies lifetime clients, 282–287, 299–304 prospect qualification, 158, 159, 160–161 referral cultivation rules, 101 customer service, after-sale communication strategies, 289–290, 292–299 gifts, 290–291 lifetime clients, 286–287 overview, 287 transaction-period tasks, 288 Customer Service For Dummies (Leland and Bailey), 301 •D• om daily rate, 252 database after-the-sale communication, 294–295, 298–299 agency selection, 52 commercial real estate drawbacks, 28 contact mining, 102–104 referrals, 99, 100 dated home, 205 day off, 306, 316, 345 day planner, 308 days-on-market statistic, 267–269, 272 deadline, 320, 322–324 deal after-the-sale service tasks, 288 agent partnerships, 250–251 checklist, 302–303 concessions, 255–256 derailment causes, 248, 259–260 market analysis, 69–70 service encounter, 299–300 deal, control of advance or acceptance of offer, 251 commercial real estate drawbacks, 27 importance, 339–340 listing presentation tips, 170–171 deal, negotiating agent partnerships, 250–251 concessions, 255–256 days on market, 267–268 faxes, 246 list-to-sold ratio, 267 w w T he G et Al l.c contact (continued) lifetime clients, 282 management software, 91–93, 329–330 market penetration, 277 prospecting goals, 84 referral cultivation rules, 102–104 referral sources, 98–99 tracking tips, 90–91 contact information, 232 continuing education credit, 56 contract See also specific types acceptance or advance of offer, 251–256 FSBO listing, 132 offer below list price, 252–255 offer preparation, 249–250 repair allowance, 260 control, of deal advance or acceptance of offer, 251 commercial real estate drawbacks, 27 importance, 339–340 listing presentation tips, 170–171 conviction, 168 cookies, 153 co-op broker, 250 copy, advertising, 228–230 couch potato personality, 205–206 counseling clients See client counseling counter offer form, 132 counter top, 209 courtesy, 297 Covey, Stephen (Seven Habits of Highly Effective People), 99 creating customers See prospecting creative accounting, 340 creative avoidance, 80 curb appeal open house preparation, 146–147 preshowing tasks, 208–212 current client, 97 customer See client customer relationship management program, 233, 329–330 customer service checklist, 302–304 versus client creation, 14–15 explanation to client, 338 extras, 301 w 354 Index w w •E• T he G w earnest money, 248–249 easy-exit listing agreement, 124 education See training ego, 109, 255 80:20 rule, 307–312 11 a.m rule, 312 e-mail after-the-sale service, 292, 294–296 contact management software, 92–93 distractions, 319 open house benefits, 143 open house follow-up, 156 outside-the-home flyer, 232 prospecting distractions, 80 referral development strategy, 114 om emotion failed deal, 248 first impression, 218 full-time versus part-time agents, 35 offer below list price, 253–255 preparation for negotiation, 247 specialty selection, 40 energy, 42 enthusiasm, 42, 168, 288 equity, 187, 201, 256 errors and omissions (E&O) insurance fee, 46 escrow closer, 258–259 ethics agency selection, 44 agent-agent relationship, 57 competitive positioning statistics, 273–274 saying no, 340 strategy for success, 18 evening work, 316 expectation after-the-sale service, 297–298 agency selection, 47–48 lifetime clients, 282 preparation for process, 246 prospecting goals, 85 real estate bubble, 187 referral cultivation, 101 expertise client creation versus customer service, 15 expired listing contact, 124 positioning tips, 226 referral cultivation rules, 101 expired listing agent competition, 134 benefits, 116–117 causes, 119, 122 competitive market analysis, 189–190, 191 contact tips, 117, 119–127 days-on-market statistic, 269 versus FSBO listings, 127, 128 need for sale, 163 overview, 115–116 qualification, 122–123 eyeball, 237 l.c et Al offer below list price, 252–255 offer preparation, 249–250 overview, 245 preparation of seller, 246–248 protection of seller, 248–249 win/lose clients, 256 decision making, 13, 219 decoration, 205, 207–209 delayed closing, 259 delivery, presentation, 167–170 design flyer, 233 Web site, 235–236, 237–238 desire, 161, 163 digital camera, 242–244 direct income-producing activity definition, 309 time management plans, 309–312 time-blocked schedules, 316–317 direct mail See mailing DirkRecommends.com (Web site), 350 disabled buyer, 230–231 discrimination, 229–230 distraction, 79–80, 312, 319 divorce, 163 domain name, 236–237 dominance, 277–278 dual-income family, 142 dumb terminal, 52 dumpster, 213 duplex, 23 355 Success as a Real Estate Agent For Dummies versus expired listings, 127, 128 overview, 115–116 prospecting, 78 relationship building, 137 scouting tips, 128–129 seller’s challenges, 133, 137 full-time agent, 35 furniture, 213, 214–216 •F• •G• om garage, 215 gated community, 148 gift, client, 290–291, 301 goal broker-agent relationship, 54 procrastination, 320–321 prospecting tips, 83–85, 90–91 referral development strategy, 107 rewards, 322–324 GoldMine (software), 91 graduated split, 45 grass, 211 guest register, 132, 152, 154 gung-ho renovator, 204–205 w w T he G et Al l.c Fair Housing Laws, 229–230 family FSBO location, 129 open house benefits, 142 support system, 334 time management schedule, 313 family room, 209 fax advance or acceptance of offer, 251–252 negotiating process, 246, 247–248 feature, home advertising copy, 228–229 outside-the-home flyer, 232 sheet, 150 fiduciary representation, 11–13 file system, 244 financial goal agency selection, 48 overview, 10–11 prospecting disciplines, 79–82 financial management, 342–343 financing sheet, 132 finished basement, 209, 210 first position, 259 first-time home buyer, 78 Fix-It personality, 204 flextime, 317 flooring, 209 flower arrangements, 219 plantings, 147, 211 flyer, 150, 152, 232–233 FlyInside.com (Web site), 241 fourplex, 23 franchise fee, 46 fraud, 340 free report, 133, 231 freedom, 26 friend, 129 FSBO (for sale by owner) listing agent competition, 134 benefits, 116–117, 127–128 contact, 129–134 conversion rate, 128 conversion tips, 129–134 w 356 •H• handwritten letter, 294 hassle compensation, 208 have-to prospects, 156 headline, 227–228 headset, 79, 333 high-priced home, 225 high-probability lead, 118 history, 62–63 home See also investment property; listings complete makeovers, 204–205 equity loan, 201 improvement, 204–210 inspection, 255, 258 office in, 33–34 home builder See builder, new home home inventory access, 13 homogenous neighborhood, 192 honesty, 30, 58 Index hope-to prospects, 156 hourly value, 323 human connection, 250 100 percent commission, 45 commercial real estate drawbacks, 28 common mistakes, 343 FSBO listings, 136 residential agent specialties, 23 residential real estate benefits, 30–31 specialty selection, 40 invitation, 148, 301 IPIX equipment, 240 IRED.com (Web site), 350 •I• •J• junior representative, 25 om •K• kitchen, 209, 210 knick-knack, 214 •L• w w w T he G et Al l.c image commercial real estate benefits, 24 mortgage originator versus real estate agent, 59 residential real estate drawbacks, 37 ImageMaker360.com (Web site), 241 imagination, 228 income potential agency selection, 43 commercial real estate benefits, 25, 26 commercial real estate drawbacks, 27, 28 hourly value, 323 listing agent benefits, 17 possibilities, procrastination, 320–324 professionalism, 19, 30 residential real estate benefits, 29–31 time management, 310 work habits, 30 independence, 26, 28 indirect income-producing activity, 311 information-distribution site, 234–235 in-house listing, 25 initial offer, 246 initial training, 43 Inman.com (Web site), 348 inside-the-home flyer, 233 insulting offer, 254 intensity, 306 interest rate, 229 interest-only loan, 62–63 interior design specialist, 214 interview agency selection, 50–53 FSBO conversion, 130–131 open house objectives, 144–145, 153–154 pricing feedback, 199–200 inventory See listings investment property See also home after-closing services, 286 commercial real estate disciplines, 24 landscaping open house preparation, 147 preshowing tasks, 210–211, 217 Landvoice (FSBO listing source), 129 law accumulation, 9, 88–89 advertising creation, 229–230 agency relationship, agency selection, 44 expired listing contact, 120, 121 forced efficiency, 319 low offers, 254 prospecting tips, 81 lead See also referral definition, 84 expired listings, 118–119 FSBO listings, 128, 130 information-distribution site, 234–235 networking referrals, 98 open house benefits, 141–143 open house objectives, 144–145 open house preparation, 149 prospecting goals, 84 screening tips, 107 tracking tips, 90–91 Web site design, 236, 237–238 357 Success as a Real Estate Agent For Dummies w w T he G om control of transaction, 251 overview, 17 residential real estate benefits, 31 listing agreement definition, 117 expired listings, 117, 124 listing presentation guidelines, 165 preparation for sale process, 246 listing period, 202 listing presentation competitive position, 272–273, 278–280 conclusion, 181–182 explanation of services, 338 formula for success, 171–178 guidelines, 164–171 lifetime clients, 282 order request, 181 preparation for sale process, 246–247 price reduction formula, 198, 200 sales objections, 178–180 listings See also home agency selection, 42, 46, 50 agent-agent relationship, 58 days on market, 267–269 low inventory, 142, 146 market analysis, 67–71 market research tips, 64–69 prospecting, 77–78 referral development strategy, 106 sale of own, 250 listings, expired agent competition, 134 benefits, 116–117 causes, 119, 122 competitive market analysis, 189–190, 191 contact tips, 117, 119–127 days-on-market statistic, 269 versus FSBO listings, 127, 128 need for sale, 163 overview, 115–116 qualification, 122–123 listings sold statistic, 269–271, 272 list-to-sold ratio, 265–267, 271, 272 loading time, 235 loan approval, 249, 253, 337 officer, 58–59, 257 l.c et Al lead creation See prospecting lead-based paint disclosure, 132 leadership, 31 lead-generation site, 235 lease, 23 leasing agent, 26 Leland, Karen (Customer Service For Dummies), 301 lender-required note, 260 lessee, 23, 24 lessor, 23, 24 letter, 93 license, 52 life balance, 57 life-long learners, lifestyle change, 163, 308–309 lighting, 152, 219, 243 list price basic pricing approaches, 185–186 buyer’s misconceptions, 338 calculator personality, 206 days on market, 267, 269 expired listing causes, 119, 122 feedback, 199–200 FSBO benefits, 128 home improvement, 206, 207–208 importance, 194 inside-the-home flyer, 233 market analysis, 68, 186–194 offer below, 252–255 online real estate shopping, 225 open house preparation, 148 outside-the-home flyer, 233 overview, 185 philosophy, 194–198 positioning tips, 224 presentation formula, 176–177 prospect qualification, 160 reduction, 196–200 sales objections, 180 statistics, 265–267 troubleshooting problems, 198–202 listening, 346 listing agent benefits, 17–18 car, 332–333 commercial real estate benefits, 25 w 358 Index logic, 218 loss leader, 140 loss ratio, 43 lower-credit client, 59 loyalty, 78 luxury car, 332–333 w w w T he G et Al l.c mailing after-the-sale service, 293–294 expired listing tactics, 117 FSBO conversion, 132–133 market research results, 72 referral development strategy, 114 virtual tours, 242 manager, agency, 42, 54–56 market area statistics, 274–275 dominance, 277–278 penetration, 276–278 share, 275–278 market conditions agency selection, 47, 48, 49 analysis, 66–71, 186–194 client creation, 16–17 commercial real estate drawbacks, 27 expired and FSBO listing benefits, 116 listing presentation guidelines, 165–166 need for agent, 14 preparation for process, 246–247 residential real estate benefits, 29 residential real estate drawbacks, 33 ruling truths, 62–63 targeted prospects, 82 market research analysis, 66–71 information sources, 63–65 overview, 61 prospecting tips, 81 sales tips, 71–72 marketing See also specific types agency selection, 47, 50 client creation versus customer service, 15 competitive position, 264 om •M• creation, 227–231 expired listing contact, 124 lifetime clients, 284 market research results, 72 mass, 18, 222, 295 mortgage originator benefits, 59 open house planning, 149 overview, 221 residential real estate benefits, 31 targeted message, 222–227 master bedroom, 209 media outlet, 230–231 See also specific outlets meeting broker-agent relationship, 55 price reduction, 200 prospecting distractions, 80 mega pixel, 243 memory card, 243 mental focus, 30 mentor, 57 middle-income buyer, 225 migratory pattern, 66–67 MLS See multiple listing service mortgage originator benefits, 58–59 delayed closing, 260 overview, 260 partnership, 339 service encounter, 300 motivation overpriced listing, 201 prospect qualification, 160, 161, 163 Mr Fix-It personality, 204 multiple listing service (MLS) agency selection research, 49 agent-agent relationship, 58 bypassed submissions, 64 competitive market analysis tools, 190–192 expired listing contact, 118, 119–120 market research tips, 64–69 outside-the-home flyer, 232 virtual tours, 242 multiplex, 23 music, 219 359 Success as a Real Estate Agent For Dummies •O• National Association of Realtors (NAR) agency selection rules, 44 customer service ratings, 287 market research tips, 65 number of members, 297 Real Estate Insights, 65 targeted advertising, 223–224 terminology, Web site, 65 navigation, Web site, 235 need to sell, 161, 163 negativity, 30, 34, 55 negotiating deals agent partnerships, 250–251 concessions, 255–256 days on market, 267–268 faxes, 246 list-to-sold ratio, 267 offer below list price, 252–255 offer preparation, 249–250 overview, 245 preparation of seller, 246–248 protection of seller, 248–249 win/lose clients, 256 neighbor, 148 net-proceeds sheet, 177 networking definition, 97 listing prospects, 77 referral sources, 97–98 neutral design, 216 new home builder See builder, new home newsletter, 92, 295 newspaper ad copy, 228 FSBO location, 129 market analysis uses, 72 Web sites, 348 niche market market penetration, 276–277 referral development strategy, 106–107 No Call law, 81, 120, 121 no, saying, 340 non-escrow state, 258 notecard stock, 294 offer advance or acceptance, 251–256 below list price, 252–255 buyer’s representation, 249–250 human connection, 250 preparation for negotiation, 246, 247 office agency selection, 42–43 agent-agent relationship, 57–58 commercial real estate benefits, 25 location, 318 prospecting tips, 79–80 residential real estate drawbacks, 33–34 specialty selection, 39 older buyer, 223 ongoing training, 43 Online Agent (software), 91 online real estate shopping advertising creation, 227–231 effects, 140 list price, 225 open house benefits, 142, 143 overview, 234 popularity, 234 Web site creation, 234–238 open house agent-agent relationship, 58 benefits, 140–143 criteria for success, 145–149 follow-up, 155–156 FSBO conversion, 131 hosting tips, 150–156 number to host, 143 objectives, 144–145, 153–154 overview, 139 preparation, 146–149, 151 signs of success, 153 open-door policy, 34 optimism, 246 order, 181 outdated home, 205 outside-the-home flyer, 232–233 w w T he G et Al l.c om •N• w 360 Index w w w T he G et Al l.c padding prices, 197 paint color, 147, 208, 211–212 condition, 212, 217 paperwork, 257, 258–259 Pareto’s principle overview, 307 steps, 307–309 weighted tasks, 309–312 part-time agent, 35 past client, 97 pastel color, 211 pausing, 179 pending property, 69–70, 189, 191 per-agent productivity, 274 perfect home, 337–338 performance monitoring broker-agent relationship, 55 commercial real estate benefits, 25, 26 sales, 26 personal relationship, 105, 313 pet odor, 207 philosophy client-agent relationship, 159 pricing listings, 194–198 phone call See also sales call after-the-sale service, 289–290, 296 headset, 79, 333 scheduled, 317 time management tips, 325–326 photo business card, 332 clutter clearing, 214, 215 equipment selection, 242–243 in-home flyer, 150 inside-the-home flyer, 233 Realtor.com, 239 techniques, 243–244 population trend, 67 positioning See competitive position positive mindset, 76 postcard, 242, 291 PowerPoint slide, 167 presentation, listing competitive position, 272–273, 278–280 conclusion, 181–182 explanation of services, 338 formula for success, 171–178 guidelines, 164–171 lifetime clients, 282 order request, 181 preparation for sale process, 246–247 price reduction formula, 198, 200 sales objections, 178–180 previewing property, 193–194 price, list basic pricing approaches, 185–186 buyer’s misconceptions, 338 calculator personality, 206 days on market, 267, 269 expired listing causes, 119, 122 feedback, 199–200 FSBO benefits, 128 home improvement, 206, 207–208 importance, 194 inside-the-home flyer, 233 market analysis, 68, 186–194 offer below, 252–255 online real estate shopping, 225 open house preparation, 148 outside-the-home flyer, 233 overview, 185 philosophy, 194–198 positioning tips, 224 presentation formula, 176–177 prospect qualification, 160 reduction, 196–200 sales objections, 180 statistics, 265–267 troubleshooting problems, 198–202 price, sale, 265–267 prioritizing, 78, 321–322 privacy, 318 problem solving agency selection, 52 agent’s tasks, 12 list price, 198–202 procrastination deadlines and rewards, 322–324 production-supporting activities, 311 objectives, 320–321 overview, 319 priority setting, 321–322 steps to eliminate, 320 vision, 320 om •P• 361 Success as a Real Estate Agent For Dummies punctuation, 228 purchase and sale contract, 132, 249–250 purpose, sense of, 320 •Q• om questions, asking agent partnership, 251 expired listings, 122–123, 124 importance, 339 open house tips, 154–155 prospect qualification, 158, 159–161, 162 sales objections, 180 showing property, 220 virtual tour production, 240–241 •R• rainy-day fund, 343 ranch home, 212 real estate agent agent-agent partnership, 250–251 common attributes, 9–10 public’s view, 14, 37, 157 self-view, 11 strategy for success, 18–19 real estate board, 64 Real Estate Insights (National Association of Realtors), 65 Real Estate License Exams For Dummies (Yoegel), real estate magazine, 50 real estate search, 13 RealEstateChampions.com (Web site), 347 RealEstateMarketingMastery.com (Web site), 348 RealEstateSchoolofChampions.com (Web site), 348–349 Realtor.com (Web site), 238–239, 347–348 RealTourVision.com (Web site), 242 RealtyTimes.com (Web site), 349 RealtyU.com (Web site), 349–350 RECyber.com (Web site), 349 reduction, price early high pricing, 196–197 on-the-button pricing, 197–198 pricing problems, 198–200 w w T he G et Al l.c production-supporting activity, 311–312, 326 productivity, 306, 307, 323 professionalism after-sale service, 297–298 broker-agent relationship, 56 commercial real estate benefits, 25 fiduciary responsibilities, 11–13 income potential, 19, 30 overview, 11 referral cultivation rules, 99 residential real estate drawbacks, 34–36 strategy for success, 19 wardrobe, 330–331 property disclosure, 132 property profile, 232 prospect See also buyer; client; seller common mistakes, 344–345 competitive advantage presentation, 272–273, 278–280 definition, 157 qualification, 158–164, 335, 339 virtual tours, 242 prospecting See also specific strategies common mistakes, 345–346 consistency, 89 versus customer service, 14–15 definition, 75–77 disciplines, 79–82 goals, 83–85 importance of sales ability, 15–16 listings versus buyers, 77–78 market conditions, 16–17 market research, 71–72 myths, 85–88 overview, 14, 75 persistence, 88–90 positive mindset, 76 qualified referrals, 111 referral development mindset, 105 referral drawbacks, 96 residential real estate benefits, 32 steps, 77 targeted prospects, 82–83 time management activities, 311, 316 pruning, 322 public board, 42 punctuality, 30 w 362 Index om respect agent-agent relationship, 56–57 broker-agent relationship, 56 referral development call, 108–109 residential real estate drawbacks, 37 specialty selection, 39 response mechanism, 231 restricted-access neighborhood, 148 retirement plan, 343 reverse-no technique, 135, 136 reward, 322–324 risk commercial real estate drawbacks, 27 rent-a-desk arrangement, 45 residential real estate benefits, 29 specialty selection, 38, 39 rock feature, 211 rudeness, 179 w w w T he G •S• l.c et Al referral See also lead business card, 104 buyer versus listing prospects, 77, 78 communication, 292–293 conversion to client, 113–114 cultivation rules, 99–105 cultivation strategy, 105–112 database, 99, 100 definition, 96 drawbacks, 95–96 first-time contact call, 112–113 levels, 110–111 mindset, 105 overview, 95 qualified, 111 sources, 96–99 referral-based business overview, 96 referral database, 99–105 referral sources, 96–99 refreshments, 152, 153 regional market, 66 rejection coping tactics, 133–134 listing presentation, 178–180 relationship building FSBO listings, 137 lifetime clients, 282–283 trust, 56–57 remodeling, 204–205, 210 renovator personality, 204–205 rent-a-desk arrangement, 45 repair work after-closing services, 286–287 closing derailment, 259–260 customer service extras, 301 list, 212 preshowing tasks, 204, 205–206, 208 reputation, agency, 42 research service, 25 residential real estate benefits, 29–33 versus commercial real estate, 21–24 drawbacks, 33–38 overview, 22 specialties, 23, 38–40 resource, 306 salability, 195, 196 salary agency selection, 43 commercial real estate benefits, 25, 26 commercial real estate drawbacks, 27, 28 hourly value, 323 listing agent benefits, 17 possibilities, procrastination, 320–324 professionalism, 19, 30 residential real estate benefits, 29–31 time management, 310 work habits, 30 sale, of business, 31–32 sale price, 265–267 sales market research, 71–72 own listings, 250 performance monitoring, 26 residential real estate benefits, 31 sales ability benefits, 16 expired listing contact, 125 FSBO versus expired listings, 127 lack of training, 16 overview, 15–16 presentation delivery, 168–169 363 Success as a Real Estate Agent For Dummies om personality, 203–206 preparation for negotiation, 246–248 protection by agent, 248–249 referral development strategy, 106 seller’s market, 67 service delivery plan, 285–286, 301–304 service encounter, 299–300 Seven Habits of Highly Effective People (Covey), 99 short-term note, 248 showing property client counseling, 206–210 first impression, 218–220 overview, 203 seller personality, 203–206 virtual tour, 240 shrine wall, 214 shutter, 147, 209 siding, 147 sign, for sale, 129 sign-in sheet, 144, 152, 154 smoke odor, 207 social contact, 98–99 software agency selection, 52 competitive market analysis tools, 190–192 customer relationship management, 91, 329–330 flyer design, 233 sold property, 188, 191, 193 sound system, 219 spam, 296 special occasion card, 294 square foot pricing, 193 staff, 31, 80 staging, home clutter clearing, 214–216 decorations, 216 overview, 213–214 statistics analysis, 271–272 calculations, 265–271 comparisons with other agents, 272–274 goal setting, 274–275 storage unit, 213, 215 w w T he G et Al l.c sales call See also phone call capture technology, 231 contact management software, 92–93 expired listing, 117, 119–127 FSBO listing, 130, 131, 133 laws, 121 open house follow-up, 156 prospecting tips, 79–81, 88 referral development strategy, 108–110, 112–114 salesforce.com (software), 91 satisfaction, customer, 300 savings account, 342, 343 saying no, 340 scent, 152, 218–219 schedule, 313–319 screening leads, 107 script expired listing contact, 120, 125–126 first contact with referral, 112–113 FSBO listings, 135–137 listing presentation guidelines, 166 open house objectives, 145 overpriced listing, 202 overview, 334 presentation formula, 174 price reduction, 197, 199, 200 prospecting station, 79, 81 referral development strategy, 108, 109 sales objections, 178, 179, 180 search engine, 50, 237 season tickets, 301 second home market cause and effect, 62 National Association of Realtors research, 65 residential agent specialties, 23 self-discipline, seller See also client; prospect acceptance or advance of offer, 251–256 concerns, 179–180 emotion versus logic, 218 expired listing contact, 118–122 offer below list price, 252–255 open house benefits, 141 open house hosting, 152 w 364 Index strategic partners, 58–59 suit, 330 sun, 243 supply and demand, 62, 70–71 surface replacement, 209, 217 w w w T he G et Al l.c targeting prospects, 82–83, 130–131 tax, 286, 343 teamwork, 40 technology equipment digital camera, 242–244 virtual tours, 240–242 telephone call See phone call; sales call testimonial, 234 thank-you note after-the-sale service, 289, 297 agency selection, 54 contact management, 93 FSBO conversion, 132 open house follow-up, 155 presentation follow-up, 182 referral cultivation rules, 101 referral development strategy, 112, 114 themed bedroom, 216 time blocking mistakes, 317–319 overview, 313 steps, 313, 316–317 worksheets, 314–315 time management action-oriented attitude, 324–326 common mistakes, 344 contact management software, 92 contact mining, 102–103 income potential, 310 listing presentation guidelines, 166–167 listing prospects, 78 open house benefits, 142 overextended agents, 305–306 overview, 305 Pareto’s principle, 307–312 plan, 308–312 pricing to please client, 195–196 procrastination, 319–324 om •T• prospect qualification, 159, 160 prospecting disciplines, 79 prospecting persistence, 90–91 referral development strategy, 106 schedule, 313–319 time, open house, 149 title company market research sources, 65 purpose, 259 strategic partnership, 59 to-do list, 321–322 toiletry item, 215 TOP PRODUCER (software), 91, 330 traffic drive-by, 149 flow through home, 215 online, 237 training agency selection, 43, 51 auto-university, 326 broker-agent relationship, 56 budget, 92 commercial real estate benefits, 25, 26 common mistakes, 344 expired and FSBO listing benefits, 116–117 residential real estate drawbacks, 34, 36 sales, 16 transaction after-the-sale service tasks, 288 agent partnerships, 250–251 checklist, 302–303 concessions, 255–256 derailment causes, 248, 259–260 fee, 45 market analysis, 69–70 service encounter, 299–300 transaction, control of advance or acceptance of offer, 251 commercial real estate drawbacks, 27 importance, 339–340 listing presentation tips, 170–171 transaction, negotiating agent partnerships, 250–251 concessions, 255–256 days on market, 267–268 365 Success as a Real Estate Agent For Dummies Al et Ultimate Referrals (Cates), 109 underwriting, 260 urgency, sense of, 229, 319–320 URL forwarding, 236 USB cable, 243 l.c •U• G •V• w w T he values, 47 vanity item, 215 virtual tour, 239–242 vision, 320 visual aid, 167 VisualTour.com (Web site), 242 voice-mail message, 326 volatility, 29, 69 •W• wallpaper, 216 wardrobe, 92, 330–331 warm referral, 98 wasted time, 306, 324–325 weasel clause, 249 Web sites agency selection, 47, 50 client creation versus customer service, 15 creation, 234–238, 331 Fair Housing Laws, 230 free reports, 133 FSBO listings, 129 National Association of Realtors, 65 Realtor.com, 238–239 scripts, 334 top picks, 347–350 virtual tour production, 241–242 win/lose client, 256 work habits income potential, 30 prospecting myths, 86 prospecting persistence, 89–90 work hours commercial real estate benefits, 26 increased volume, 36 residential real estate drawbacks, 36–37 schedule, 313–319 specialty selection, 39 workaholism, 18, 37 workspace, 33–34 om transaction, negotiating (continued) faxes, 246 list-to-sold ratio, 267 offer below list price, 252–255 offer preparation, 249–250 overview, 245 preparation of seller, 246–248 protection of seller, 248–249 win/lose clients, 256 tree trimming, 211 trend, housing market analysis, 67–71 real estate truths, 62–63 trendy decorations, 208 triplex, 23 trust, 108, 130, 172 turnover, agent, 35 w 366 •Y• yard box flyer, 232–233 Yoegel, John A (Real Estate License Exams For Dummies), younger buyer, 223 BUSINESS, CAREERS & PERSONAL FINANCE Also 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