PSYCHOLOGY OF THE SALE

Welcome to----

“Get Acquainted”

1. How important is psychology and human nature in the real estate transaction process?

2. Share an example of an adverse situation that happened when you didn’t properly pay attention to sales psychology. What lessons did you learn?

Why People Buy

Why People Back-out

Why People Sell

Why Buyers Back Out of a

Purchase:

Why Sellers Back Out of a

Sale:

The Importance of Using Consumer’ Surveys

Designing a Roadmap for

Building a “Client For

Life”

Why Strive for Clients-for-Life?

Time

Energy

Cost effectiveness

Leverage

Word-of-mouth advertising

Business stability/ continuity

SANITY!

Challenges Posed by the Typical Real Estate

Transaction: It’s:

emotionally charged---People buy with their gut, and justify with their wallet! Called “Emotional Intelligence”

a combination of “need & greed”

a reflection of how well they keep/have kept their financial house in order;

focused on “hearth & home”; yet it only occurs once every 5-7 years!

“Emotional Intelligence” has more bearing on a client’s financial success than does “Financial Intelligence”

----Mitch Anthony, “Clients for Life” survey

Missteps We Take as Agents:

Focus more on the “product” than the people;

needs assessment upfront;

Fail to communicate (especially in writing) how the process works & related timeframes;

Rely on the quickest way to communicate, not necessarily the most effective

Decide to work with people we can’t stand!

“A dead fish stinks from the head!”

Self-empowerment Tip #1: Stop Working with People You Can’t Stand!

Consumers don’t understand what we do, how long it takes, nor the steps required to complete the

transaction.

A related reality

Nurture Clients for Life

with the

1. People First

2. Prep Them for the Process

3. Put it in Print

4. Profitable/Valuable Post-transaction Follow-ups

5. Promotions / Benefits Others Don’t Offer

People First, Then Property

Thorough Needs Assessment Upfront is Vital

Self-Empowerment Tip #2: Know Who You’re Dealing With!Let’s view a two-page needs

assessment tool!

Prep Them for the Process

Flow of Activities & Timelines Including What to Expect… (especially the adverse)

Let’s review the more than 200 activities we perform!

Exercise:

What “action verbiage” would you use to explain the 200+ activities that

we perform?

It’s an “inside” job.Keep Asking Yourself…

What would a Trusted Advisor / Consultant do?

Put It In Print!

Critical for Troubleshooting Tough Subjects

An Exercise: Explaining and detailing an adverse home-inspection report---what’s the RIGHT way to do it?

Profitable/Valuable Post-Transaction

Follow-ups

The tragic error many agents make…and keep making

— junk in the mailbox— Consumers called it “worthless

info”

Valuable Follow-up Items Include

Info on: Property Taxes

Filing a Homestead

Energy conservation/ Green homes

Federal law updates

Postage stamps during increases

The pros and cons of refinancing

_____________?

Key: Providing added-value information to the

consumer

Begin with the end in mind…

What’s the profile of your most-desirable consumer…?

Your “Ideal Consumer” Profile:

Who What When Where Why How How much

Dissect your three most successful / enjoyable transactions...What were the profiles of the consumers involved? Pinpoint their similarities…

The Profile of My “Ideal Consumer”

Self-empowerment Tip #3: Make what you do as enjoyable as possible!

1. Entrepreneurs

2. Have investment property experience

3. Would require property management

4. Long-term investors (5+ years)

5. On-target to purchase at least one property each year

6. Have financing in place

Promotions/Benefits that

Others Don’t Offer

Tailor to fit the clients in your target market, i.e. certificates redeemable for improve vs. move analyses, annual insurance updates, etc.

Post-Transaction Items Valuable to My “Ideal Consumer” would be: (Investment Property Buyers)

1. How to safely leverage your home’s equity

2. Freeware/software for calculating rates of return, etc.

3. Recent comps of investment properties

4. Certificate for 1.5 hours of investment consultation

Question: Do these items properly reflect your “brand” and imprint?

Bottom line:Real Estate Consumers’

Want:

1. Reliability

2. Assurance

3. Empathy

4. Responsiveness

5. Tangibles(in THAT order!)

---according to Texas A & M University study, 2008

Working with Various

Behavioral Types,

Personalities, and Psychology

in the Transaction

Process

Behavior Model Quadrant

More Assertive

Less Assertive

Less Responsive More Responsive

Behavior Model Quadrant

More Assertive

Less Assertive

Less Responsive

More Responsive

Q-1 Q-4

Q-2 Q-3

DRIVER EXPRESSIVE

ANALYTICAL AMIABLE

Personality Quadrant

Dominant

Submissive

Hostile Warm

Personality Quadrant

FACT FANTASY

FEELINGSFORM

Dominant

Submissive

Hostile Warm

PSYCHOLOGICAL TYPES

EXTROVERT

SENSING

THINKING

JUDGING

INTROVERT

INTUITIVE

FEELING

PERCEIVING

Working with Difficult People

DIFFICULT PEOPLE

A Trio of Hostile Aggressives

Sherman Tank Sniper Exploder

Complete Silent & Super – Complainer UnresponsiveAgreeables

Negativist at Know-it-All IndecisiveWork Experts Stallers

BASIC STEPS TO EFFECTIVE COPING

Take honest & objective view of situation

Separate yourself from difficult behavior

Accept that they are not going to change

Coping Steps (cont’d)

Develop a plan for coping

Evaluate your plan

Be prepared for a “Last Resort” position

Improved Communication

Using Questioning & Listening Skills

plus Neuro-Linguistic

Programming

How We Communicate

Words

Tonal

Non-Verbal

Communication Styles

Feeler

Analyst

Driver

Theorist

Self-Analysis of Communication Style

---A Quiz

Barriers to Communication

Personal Differences

Barriers to Communication

Ego Involvement

Strategies for Good Communication

Establish Rapport

Strategies for Good Communication

Pacing Through Verbal Cues & V-A-K

In The Blink Of An Eye!

VC VR

AC AR

K AD

Questioning Techniques

Open-ended questions

Probing questions

Question-Answer-Question

Closed-end questions

Silence

Conversational Ball-rolling

Preparing For Negotiation

Guidelines Define goals,

objectives Clarify issues Gather information Set the climate Prepare for conflict

Look for compromise

Strive for agreement

What did you learn today about real estate

consumers that will help you work more efficiently

& enjoyably with them?