Presentation on theme: "PSYCHOLOGY OF THE SALE Welcome to----. “Get Acquainted” 1. How important is psychology and human nature in the real estate transaction process? 2. Share."— Presentation transcript:
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 ResponsiveMore Responsive Q-1Q-4 Q-2Q-3 DRIVEREXPRESSIVE ANALYTICALAMIABLE