Note from the author:
Over my last 25 years while in management, I've had thousands of one-on-one's with rental and sales agents. A few years back, I began writing down some of the more common conversations as an experiment to save myself time. Much to my surprise, my initial efforts were so well received I began to write more and more of these fictional "dialogues".
I have now written over 40 of these brief conversations down, and here at Broker Heaven NY, will be giving out a story at each seminar to help illustrate a point or two. Perhaps someday we will bind them all together and make a book of sorts.
I hope you enjoy the stories below and, more importantly, I sincerely hope they give you some ideas to improve your business.
© 2010 Broker Heaven NY, Inc. All rights reserved.
| DOWNLOAD
G$ Consultation - Enter Agent Jack Oatmon
G$: Hi Jack, thank you for coming.
Jack: My pleasure Greg, thanks for having me.
G$: What would you like to talk about today?
Jack: Well…this business really isn't what I hoped it would be.
G$: How long have you been in the biz?
Jack: 9 months.
G$: Do you like it?
Jack: Actually...yes I do...but it's a lot more work than I thought it would be.
G$: Are you making money?
Jack: Well…yes, but not enough.
G$: Give me an idea how many deals you have done?
Jack: Let's see…I think my total…is maybe 14 rentals.
G$: So basically...you're doing one or two rentals a month.
Jack: Sad to say...but yes.
G$: Would you like to do better?
Jack: Of course, that's why I'm here with you.
G$: Jack…the same actions will probably equal the same results. Are you willing to make some changes?
Jack: Absolutely.
G$: Ok, then let me see what I can do to help. Do you believe I can help you?
Jack: To be honest…
G$: Please do be honest Jack or this will all be wasted time.
Jack: Well...I hope you can help me...but I'm not sure.
G$: Fair enough Mr. Oatmon. Let's give it a shot and see what happens...tell me, how do you get your clients?
Jack: I have stuff on our website and I use Craig's List.
G$: Are you good at making the phone ring?
Jack: Mostly I get emails…a few phone calls though.
G$: (laughing) I'm sorry Jack...what I meant was, "Are you getting enough leads?" In the old days all we had was the telephone.
Jack: (smiling) I'm surprised they even had telephones way back when you started Mr. Young.
G$: Well, they sure didn't have cell phones Jack!!! So you know how to attract people?
Jack: Yeah, I think I do pretty well. It took me a couple months to figure it out but now I can pretty much get as many people as I want.
G$: How do you decide what to advertise?
Jack: Cheap stuff mainly...pretty much anything that I think will get a response.
G$: What are you good at Jack?
Jack: Good at? I don't know…I'm good at talking to people...and…
G$: Sorry to interrupt...but that's not what I mean. What part of our inventory are you an expert on? What do you specialize in?
Jack: Expert? Well…I do all kinds of things...studios…1 beds...2 bed shares…whatever I've got at the time…you know how it is.
G$: How many clients do you have right now?
Jack: 4...err…5...yeah 5 right now.
G$: Tell me what they are looking for.
Jack: OK...studio near Wall Street…2 Bed near Columbia…1 Bed in Brooklyn...studio in Midtown…
G$: All right...I got the idea. So correct me if I'm wrong...but you are sort of a "Jack of All Trades"…aren't you?
Jack: (laughing) Nice pun GMoney...they told me you were kind of funny. I guess I am…a little of this...a little of that.
G$: But what are you a MASTER of Mr. Oatmon?
Jack: When it comes down to it Greg...since I'm not doing many deals...I guess I'm "master" of very little at this point.
G$: Would you like to know how to change that Jack?
Jack: I sure would. If I can't start making more money I'm going to need to do something else to pay the bills.
G$: OK, let's see what we can do to remedy the situation. You ready?
Jack: Show me your stuff GMoney!
G$: Then here we go...when a potential client responds to one of your ads...how do you handle it?
Jack: Well...I usually try to get them to see the apartment I'm advertising. Then I get all their requirements, etc…then I go do a search in our system.
G$: When you run your search, how do you determine the best apartments to show them of all the ones that fit their parameters?
Jack: Ummmmmmmm…to tell the truth…
G$: (smiling) Please do tell the truth Jack.
Jack: (laughing) I've got to quit saying that. Mostly I just pick apartments that are easy to get into or look good for some reason.
G$: So you really don't know if you are showing the very best deals or not?
Jack: Wow...I never thought of it that way.
G$: Essentially, you are just taking them out and hoping they will like something and you get lucky, right?
Jack: Yeah well, isn't that what we are supposed to do?
G$: Not in my opinion Jack. You see I don't believe you are acting like real estate agent.
Jack: No? Then what am I doing?
G$: You are a "Tour Guide"…and tour guides don't make very much money Jack!
Jack: Tour guide, huh?
G$: Yup...you're missing a big piece to the puzzle Jack.
Jack: I don't understand.
G$: Jack, do you know anybody who is a real estate agent anywhere else besides New York?
Jack: Yes...actually my aunt sells houses in Jersey.
G$: Do you know what is expected of agents all over the country?
Jack: No, what's that?
G$: Everywhere else real estate agents are expected to be experts on their marketplace. They are expected never to show a property they haven't seen.
Jack: But that's impossible here.
G$: Yes it is...but that doesn't mean you can't become an expert on a portion of our inventory.
Jack: Hmmmmmm…
G$: All over the country agents hop in their SUV's with their Starbucks and Krispy Kremes and they go see the new houses that were listed in their town that week. They do this every week. They never show a house they haven't seen. They are expected by the public to be experts.
Jack: I preview whenever I can.
G$: I'm sure you do...but what can you really say you are an "expert" on?
Jack: I guess I already answered that...ZIP!
G$: Why do you think someone will be willing to pay a 15% fee to you Jack?
Jack: Because I give good service.
G$: And…?
Jack: I save them time.
G$: Do you? How can you say you save them time when you don't know if you are even bringing them to the best apartments available?
Jack: Point taken GY.
G$: I think people are willing to pay our 15% for two primary reasons…#1 we bring them to things they couldn't find or it would be very hard for them to find on their own, and we make the whole process easier for them.
Jack: True.
G$: The other half of the equation is what you are missing Jack...the other reason they are willing to pay us is because we are GOOD. We are experts and we know what apartments to bring them to and what apartments not to waste their time on.
Jack: What am I supposed to do? I could preview all day, every day of the week and still not know everything out there!
G$: That's true…that's why you need to specialize. There needs to be something that you know better than any other agent in the city.
Jack: So how do I do that?
G$: We'll get to that in a minute. Have you ever taken out a client who was looking for the same type of apartment as the client you had just finished working with?
Jack: Oh yeah...I love that...makes things easy.
G$: Why is that?
Jack: Well...because I had just been showing those apartments and I knew some good ones to show and I knew which ones to avoid.
G$: How did that make you feel?
Jack: Pretty good GY...I felt pretty confident.
G$: Do you feel confident when you are showing apartments you haven't seen?
Jack: Well...I do my best to prepare. I research…I speak to other agents…
G$: Jack...which scenario is better?
Jack: Of course it's better when I know what I'm showing.
G$: Exactly! It's a lot better than being a "Tour Guide" who is trying to get lucky, isn't it?
Jack: Sure it is...but you never know what type of apartments your clients will want.
G$: But wouldn't it be nice if most of your clients were looking for the same sort of thing? Right now you told me you have 5 clients looking for 5 different things in different price ranges and in different parts of the city. How would it feel if they all wanted the same sort of apartment?
Jack: It would feel great GY!
G$: Good, then let's get to work!!
G$: What part of the city do you know best Jack?
Jack: Probably the Upper East Side.
G$: Where have you done most of your deals?
Jack: All over the place...my clients seem to be all spread out.
G$: Your clients are all spread out because your ads are all spread out.
Jack: I know but I have to do that to try and attract people.
G$: No you don't. You can attract people for anything...you just have to know how to do it.
Jack: So how do I do it?
G$: We'll get to that. You need to choose a specialty first. You seem to know the UES best right?
Jack: Sure, that's where I live.
G$: And of course that's where your office is located, correct?
Jack: Yes…so I guess you are saying I should be an expert on the UES?
G$: How many apartments are available for rent right now on the UES?
Jack: I don't know...thousands.
G$: Then you can't be an "expert" on the UES…not really...can you?
Jack: No, I guess it's too big.
G$: So let's narrow it down some. Where do you live?
Jack: 95th & York.
G$: And your office is on 84th & First Ave right?
Jack: Yes.
G$: Doesn't it make sense for you to specialize in the 80's and 90's on the East Side?
Jack: Well, it certainly would make things easy for me.
G$: Do you have a problem with easy Jack?
Jack: No but could I make a living doing that?
G$: Jack…you're not making a living now...remember?
Jack: Point taken.
G$: And you absolutely could make a very nice living specializing in the East 80's and 90's.
Jack: OK, sounds like a plan. Now what?
G$: Well, you've decided on the East 80's & 90's but we need to decide on a size of apartment.
Jack: What do you mean? You mean I need to narrow it down to just one size apartment?
G$: Yes, what size apartments do you feel most confident working on?
Jack: Studios I guess.
G$: Why?
Jack: I'm not sure. I just seem to be more comfortable working with studio clients. I guess I can relate to them.
G$: That's good Jack. It's very important that you feel comfortable and confident. We are almost there. What does the average studio go for?
Jack: Doorman or non-doorman?
G$: You tell me Jack...what are you going to be the expert on?
Jack: Well...I'm not sure what the average is but it seems like most people want to spend around $1,800 or less.
G$: OK, I'd like you to do something for me.
Jack: I'm listening.
G$: Please go to the computer and run a search. Search for all studios currently available in the East 80's and East 90's under $1,800 a month, OK?
Jack: Consider it done GMoney!
G$: How did you make out?
Jack: 96 studios in the East 80's & 90's at $1,800 or less and I figured you would say that's too much so I ran another search.
G$: What did you do?
Jack: I ran studios at $1,600/month or less in the East 80's & East 90's.
G$: How many of those came up?
Jack: (smiling) 31.
G$: Why are you smiling Jack?
Jack: Because I'm getting pumped up man!!! I'm starting to think this might work!!
G$: Good for you! So...what are you going to do now?
Jack: I'm going to go see as many of these as I can in the next few days and figure out which ones are the best!
G$: Then what?
Jack: Well...I'm taking down all the other stuff I've got on the website and I'm going to put up the best of these studios.
G$: Good plan...isn't it going to be nice working with a bunch of people looking for the same sort of apartment?
Jack: I can't wait! But what do I do if I get a referral or some kind of lead for a two bed or something?
G$: You do the same thing you are doing now Jack...you do your best...you do your "Tour Guide" thing.
Jack: So, you mean...just because my bread and butter is studios in the East 80's and 90's…I can still do other stuff if it comes in?
G$: Exactly...just put your efforts on our website and Craig's List into attracting clients for your area of expertise.
Jack: Cool...I'm excited G$!!!
G$: Good for you...put your plan to work! We'll meet again in about a week, OK?
G$ Consultation Follow Up - Enter Agent Jack Oatmon
G$: How's it going Jack?
Jack: (big smile) It's going man!!! It is going!!!
G$: So…it's working?
Jack: You better believe it...a signed lease yesterday and I've already got three other people looking for the same thing that I happen to be an "EXPERT" on!
G$: Feels good, doesn't it?
Jack: It sure does! And you know what GMoney? For the first time in this business…I feel like I know what I'm doing for a change!
G$: Confidence makes a world of difference Jack. I'm happy for you!
Jack: Another thing, now that I really know this segment of the market I don't think I'm going to need to take out 8 or 10 people to do a deal.
G$: I agree Jack. "Tour Guides" don't know their product, so they don't add value. As an "expert" you will close a higher percentage of the people you work with.
Jack: I am truly grateful Greg, how can I thank you?
G$: (smiling) You really want to know?
Jack: I sure do!
G$: It's simple…keep a record of all these people you are meeting and doing business with. Stay in touch with them...build relationships.
Jack: That's all? How does that "thank" you GY?
G$: Because all these people you are going to meet are going to buy someday Jack...and they certainly are going to know people who are going to buy and sell!!!
Jack: Aaaaaaaahhh...now I get it!
G$: It's a very simple business Jack…contacts will make you a living, but relationships will make you rich! Meet people...do a good job…stay in touch…make them feel special…and they will be "clients for life".
Jack: I'm pumped up! I better get back to work…
G$: Hold on Jack...first we have to change your name.
Jack: What do you mean? I can't change my name!
G$: Yes you can Jack. In fact…Oatmon no longer applies...it's already changed!
Jack: You're crazy...what are you talking about?
G$: You are a fictional character Jack Oatmon...I made you up from all my one-on-one meetings with real agents.
Jack: You mean…I don't exist?
G$: Nope. Just look at your name…Jack O(f) A(ll) T(rades) M(aster) O(f) N(one).
Jack: That's just cold man.
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
G$ Consultation - Enter Agent Jack Oatmon
G$: Hi Jack, thank you for coming.
Jack: My pleasure Greg, thanks for having me.
G$: What would you like to talk about today?
Jack: Well…this business really isn't what I hoped it would be.
G$: How long have you been in the biz?
Jack: 9 months.
G$: Do you like it?
Jack: Actually...yes I do...but it's a lot more work than I thought it would be.
G$: Are you making money?
Jack: Well…yes, but not enough.
G$: Give me an idea how many deals you have done?
Jack: Let's see…I think my total…is maybe 14 rentals.
G$: So basically...you're doing one or two rentals a month.
Jack: Sad to say...but yes.
G$: Would you like to do better?
Jack: Of course, that's why I'm here with you.
G$: Jack…the same actions will probably equal the same results. Are you willing to make some changes?
Jack: Absolutely.
G$: Ok, then let me see what I can do to help. Do you believe I can help you?
Jack: To be honest…
G$: Please do be honest Jack or this will all be wasted time.
Jack: Well...I hope you can help me...but I'm not sure.
G$: Fair enough Mr. Oatmon. Let's give it a shot and see what happens...tell me, how do you get your clients?
Jack: I have stuff on our website and I use Craig's List.
G$: Are you good at making the phone ring?
Jack: Mostly I get emails…a few phone calls though.
G$: (laughing) I'm sorry Jack...what I meant was, "Are you getting enough leads?" In the old days all we had was the telephone.
Jack: (smiling) I'm surprised they even had telephones way back when you started Mr. Young.
G$: Well, they sure didn't have cell phones Jack!!! So you know how to attract people?
Jack: Yeah, I think I do pretty well. It took me a couple months to figure it out but now I can pretty much get as many people as I want.
G$: How do you decide what to advertise?
Jack: Cheap stuff mainly...pretty much anything that I think will get a response.
G$: What are you good at Jack?
Jack: Good at? I don't know…I'm good at talking to people...and…
G$: Sorry to interrupt...but that's not what I mean. What part of our inventory are you an expert on? What do you specialize in?
Jack: Expert? Well…I do all kinds of things...studios…1 beds...2 bed shares…whatever I've got at the time…you know how it is.
G$: How many clients do you have right now?
Jack: 4...err…5...yeah 5 right now.
G$: Tell me what they are looking for.
Jack: OK...studio near Wall Street…2 Bed near Columbia…1 Bed in Brooklyn...studio in Midtown…
G$: All right...I got the idea. So correct me if I'm wrong...but you are sort of a "Jack of All Trades"…aren't you?
Jack: (laughing) Nice pun GMoney...they told me you were kind of funny. I guess I am…a little of this...a little of that.
G$: But what are you a MASTER of Mr. Oatmon?
Jack: When it comes down to it Greg...since I'm not doing many deals...I guess I'm "master" of very little at this point.
G$: Would you like to know how to change that Jack?
Jack: I sure would. If I can't start making more money I'm going to need to do something else to pay the bills.
G$: OK, let's see what we can do to remedy the situation. You ready?
Jack: Show me your stuff GMoney!
G$: Then here we go...when a potential client responds to one of your ads...how do you handle it?
Jack: Well...I usually try to get them to see the apartment I'm advertising. Then I get all their requirements, etc…then I go do a search in our system.
G$: When you run your search, how do you determine the best apartments to show them of all the ones that fit their parameters?
Jack: Ummmmmmmm…to tell the truth…
G$: (smiling) Please do tell the truth Jack.
Jack: (laughing) I've got to quit saying that. Mostly I just pick apartments that are easy to get into or look good for some reason.
G$: So you really don't know if you are showing the very best deals or not?
Jack: Wow...I never thought of it that way.
G$: Essentially, you are just taking them out and hoping they will like something and you get lucky, right?
Jack: Yeah well, isn't that what we are supposed to do?
G$: Not in my opinion Jack. You see I don't believe you are acting like real estate agent.
Jack: No? Then what am I doing?
G$: You are a "Tour Guide"…and tour guides don't make very much money Jack!
Jack: Tour guide, huh?
G$: Yup...you're missing a big piece to the puzzle Jack.
Jack: I don't understand.
G$: Jack, do you know anybody who is a real estate agent anywhere else besides New York?
Jack: Yes...actually my aunt sells houses in Jersey.
G$: Do you know what is expected of agents all over the country?
Jack: No, what's that?
G$: Everywhere else real estate agents are expected to be experts on their marketplace. They are expected never to show a property they haven't seen.
Jack: But that's impossible here.
G$: Yes it is...but that doesn't mean you can't become an expert on a portion of our inventory.
Jack: Hmmmmmm…
G$: All over the country agents hop in their SUV's with their Starbucks and Krispy Kremes and they go see the new houses that were listed in their town that week. They do this every week. They never show a house they haven't seen. They are expected by the public to be experts.
Jack: I preview whenever I can.
G$: I'm sure you do...but what can you really say you are an "expert" on?
Jack: I guess I already answered that...ZIP!
G$: Why do you think someone will be willing to pay a 15% fee to you Jack?
Jack: Because I give good service.
G$: And…?
Jack: I save them time.
G$: Do you? How can you say you save them time when you don't know if you are even bringing them to the best apartments available?
Jack: Point taken GY.
G$: I think people are willing to pay our 15% for two primary reasons…#1 we bring them to things they couldn't find or it would be very hard for them to find on their own, and we make the whole process easier for them.
Jack: True.
G$: The other half of the equation is what you are missing Jack...the other reason they are willing to pay us is because we are GOOD. We are experts and we know what apartments to bring them to and what apartments not to waste their time on.
Jack: What am I supposed to do? I could preview all day, every day of the week and still not know everything out there!
G$: That's true…that's why you need to specialize. There needs to be something that you know better than any other agent in the city.
Jack: So how do I do that?
G$: We'll get to that in a minute. Have you ever taken out a client who was looking for the same type of apartment as the client you had just finished working with?
Jack: Oh yeah...I love that...makes things easy.
G$: Why is that?
Jack: Well...because I had just been showing those apartments and I knew some good ones to show and I knew which ones to avoid.
G$: How did that make you feel?
Jack: Pretty good GY...I felt pretty confident.
G$: Do you feel confident when you are showing apartments you haven't seen?
Jack: Well...I do my best to prepare. I research…I speak to other agents…
G$: Jack...which scenario is better?
Jack: Of course it's better when I know what I'm showing.
G$: Exactly! It's a lot better than being a "Tour Guide" who is trying to get lucky, isn't it?
Jack: Sure it is...but you never know what type of apartments your clients will want.
G$: But wouldn't it be nice if most of your clients were looking for the same sort of thing? Right now you told me you have 5 clients looking for 5 different things in different price ranges and in different parts of the city. How would it feel if they all wanted the same sort of apartment?
Jack: It would feel great GY!
G$: Good, then let's get to work!!
G$: What part of the city do you know best Jack?
Jack: Probably the Upper East Side.
G$: Where have you done most of your deals?
Jack: All over the place...my clients seem to be all spread out.
G$: Your clients are all spread out because your ads are all spread out.
Jack: I know but I have to do that to try and attract people.
G$: No you don't. You can attract people for anything...you just have to know how to do it.
Jack: So how do I do it?
G$: We'll get to that. You need to choose a specialty first. You seem to know the UES best right?
Jack: Sure, that's where I live.
G$: And of course that's where your office is located, correct?
Jack: Yes…so I guess you are saying I should be an expert on the UES?
G$: How many apartments are available for rent right now on the UES?
Jack: I don't know...thousands.
G$: Then you can't be an "expert" on the UES…not really...can you?
Jack: No, I guess it's too big.
G$: So let's narrow it down some. Where do you live?
Jack: 95th & York.
G$: And your office is on 84th & First Ave right?
Jack: Yes.
G$: Doesn't it make sense for you to specialize in the 80's and 90's on the East Side?
Jack: Well, it certainly would make things easy for me.
G$: Do you have a problem with easy Jack?
Jack: No but could I make a living doing that?
G$: Jack…you're not making a living now...remember?
Jack: Point taken.
G$: And you absolutely could make a very nice living specializing in the East 80's and 90's.
Jack: OK, sounds like a plan. Now what?
G$: Well, you've decided on the East 80's & 90's but we need to decide on a size of apartment.
Jack: What do you mean? You mean I need to narrow it down to just one size apartment?
G$: Yes, what size apartments do you feel most confident working on?
Jack: Studios I guess.
G$: Why?
Jack: I'm not sure. I just seem to be more comfortable working with studio clients. I guess I can relate to them.
G$: That's good Jack. It's very important that you feel comfortable and confident. We are almost there. What does the average studio go for?
Jack: Doorman or non-doorman?
G$: You tell me Jack...what are you going to be the expert on?
Jack: Well...I'm not sure what the average is but it seems like most people want to spend around $1,800 or less.
G$: OK, I'd like you to do something for me.
Jack: I'm listening.
G$: Please go to the computer and run a search. Search for all studios currently available in the East 80's and East 90's under $1,800 a month, OK?
Jack: Consider it done GMoney!
G$: How did you make out?
Jack: 96 studios in the East 80's & 90's at $1,800 or less and I figured you would say that's too much so I ran another search.
G$: What did you do?
Jack: I ran studios at $1,600/month or less in the East 80's & East 90's.
G$: How many of those came up?
Jack: (smiling) 31.
G$: Why are you smiling Jack?
Jack: Because I'm getting pumped up man!!! I'm starting to think this might work!!
G$: Good for you! So...what are you going to do now?
Jack: I'm going to go see as many of these as I can in the next few days and figure out which ones are the best!
G$: Then what?
Jack: Well...I'm taking down all the other stuff I've got on the website and I'm going to put up the best of these studios.
G$: Good plan...isn't it going to be nice working with a bunch of people looking for the same sort of apartment?
Jack: I can't wait! But what do I do if I get a referral or some kind of lead for a two bed or something?
G$: You do the same thing you are doing now Jack...you do your best...you do your "Tour Guide" thing.
Jack: So, you mean...just because my bread and butter is studios in the East 80's and 90's…I can still do other stuff if it comes in?
G$: Exactly...just put your efforts on our website and Craig's List into attracting clients for your area of expertise.
Jack: Cool...I'm excited G$!!!
G$: Good for you...put your plan to work! We'll meet again in about a week, OK?
G$ Consultation Follow Up - Enter Agent Jack Oatmon
G$: How's it going Jack?
Jack: (big smile) It's going man!!! It is going!!!
G$: So…it's working?
Jack: You better believe it...a signed lease yesterday and I've already got three other people looking for the same thing that I happen to be an "EXPERT" on!
G$: Feels good, doesn't it?
Jack: It sure does! And you know what GMoney? For the first time in this business…I feel like I know what I'm doing for a change!
G$: Confidence makes a world of difference Jack. I'm happy for you!
Jack: Another thing, now that I really know this segment of the market I don't think I'm going to need to take out 8 or 10 people to do a deal.
G$: I agree Jack. "Tour Guides" don't know their product, so they don't add value. As an "expert" you will close a higher percentage of the people you work with.
Jack: I am truly grateful Greg, how can I thank you?
G$: (smiling) You really want to know?
Jack: I sure do!
G$: It's simple…keep a record of all these people you are meeting and doing business with. Stay in touch with them...build relationships.
Jack: That's all? How does that "thank" you GY?
G$: Because all these people you are going to meet are going to buy someday Jack...and they certainly are going to know people who are going to buy and sell!!!
Jack: Aaaaaaaahhh...now I get it!
G$: It's a very simple business Jack…contacts will make you a living, but relationships will make you rich! Meet people...do a good job…stay in touch…make them feel special…and they will be "clients for life".
Jack: I'm pumped up! I better get back to work…
G$: Hold on Jack...first we have to change your name.
Jack: What do you mean? I can't change my name!
G$: Yes you can Jack. In fact…Oatmon no longer applies...it's already changed!
Jack: You're crazy...what are you talking about?
G$: You are a fictional character Jack Oatmon...I made you up from all my one-on-one meetings with real agents.
Jack: You mean…I don't exist?
G$: Nope. Just look at your name…Jack O(f) A(ll) T(rades) M(aster) O(f) N(one).
Jack: That's just cold man.
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
| DOWNLOAD
G$ Consultation - Enter Agent Mary
Mary: Hi Greg.
G$: Hello Mary. I remember you from the seminar.
Mary: I loved it. I got a lot out of it.
G$: Good, are you working a buyer now?
Mary: Yes, I am.
G$: That's great…just one buyer at a time, right?
Mary: (smile) Yup. I was listening.
G$: Perfect, so how are you today?
Mary: I'm good...looking forward to chatting with you.
G$: Good...so how is your business going?
Mary: So so…I guess I'm doing all right.
G$: Would you like to do better?
Mary: I sure would…I'm eating into my savings.
G$: How long have you been in the business?
Mary: About 8 months.
G$: How many apartments have you rented?
Mary: Just closed my 12th.
G$: That's not terrible Mary but I'm sure we can find a way to help you out.
Mary: I hope so. I was hoping to be able to make at least $5,000 a month after the first few months.
G$: Well Mary, the good news is that we are about to hit the busiest time of year.
Mary: That's what I've heard.
G$: You've been doing about 1 or 2 deals a month, right?
Mary: Pretty much.
G$: If we can tweak your business just a little we should be able to get you up to 3 or 4 deals a month or maybe more.
Mary: Sounds great.
G$: I'm going to do a quick diagnostic on your business to see where we need to change a little, OK?
Mary: OK.
G$: It's the first week of April. How many apartments did you rent in March?
Mary: Just 1 and another fell through.
G$: How many appointments did you have in the last 7 days?
Mary: It was a little slow…3 I think.
G$: I see…and how many appointments did you have the week before?
Mary: Hmmm...I'm not sure but I try to have an appointment every day.
G$: How many appointments would you say you had in the whole month of March?
Mary: Hmmm…about 20...at least 20 I guess...Why?
G$: Because most agents tend to overestimate the number of appointments they have. They remember the busy days but not the slow ones.
Mary: You're probably right.
G$: Do you think that the 3 appointments last week was probably a fairly average week after all?
Mary: More or less.
G$: So then you are probably taking out more like 12 people a month correct?
Mary: I guess you are right.
G$: Do you know what your closing ratio is?
Mary: You mean...how many people do I take out to do a deal?
G$: Exactly.
Mary: I'm not sure...maybe I close 1 out of 5.
G$: Mary, all successful businesses keep records. I strongly recommend that going forward you keep track of your number of appointments and the percentage that you close.
Mary: Do you think that will help?
G$: I know it will. The act of keeping track will improve performance all by itself.
Mary: Consider it done.
G$: Mary you need to understand that on some levels this business is incredibly simple. There are only 3 ways to make more money.
Mary: Only 3?
G$: Yes. #1 work with more people...#2 close a higher percentage of the people you work with...#3 get bigger commissions.
Mary: How do you get bigger commissions?
G$: Sales commissions are bigger or higher budget rental deals and those things will come later. Let's talk about the first two.
Mary: All right.
G$: Very few agents err on the side of working too many people and their issues can be fixed by improved product knowledge and better follow up.
Mary: That makes sense.
G$: You seem to have a fairly decent closing ratio…1 out of 7 or so seems to be about the average for cold leads.
Mary: Cold leads?
G$: Cold leads are from your web ads or Craig's List...leads other than referrals.
Mary: Referrals are definitely better. I've gotten 3 referrals and closed 2 of them.
G$: Yes, they are. Most agents close well over half their referrals which comes under "#2 - close a higher percentage of the people you work with."
Mary: I guess I should do everything I can to get more referrals.
G$: You got it Mary! EVERY AGENT SHOULD!
Mary: I never looked at it that way.
G$: (smiling) Well, that's why I get the big bucks. It's pretty simple Mary. If you take out enough people…you will do enough deals.
Mary: It's not like I'm lazy, Greg. If I have people, I take them out.
G$: Most agents are the same way. We need to improve your lead generation.
Mary: I had a ticket to the Craig's List seminar but I had an appointment.
G$: That's a shame because it would have helped you a lot.
Mary: I'm so bummed.
G$: Your manager can help you on Craig's List and in the mean time I have a simple tip for you.
Mary: What's that?
G$: Half the battle with Craig's List is choosing the right apartment to advertise. Show your manager the listing before you write and place the ad.
Mary: I think they are too busy.
G$: No they aren't…trust me…they want you to do this. They don't have the time to find apartments for you to advertise but they can look at the listing you choose.
Mary: Just show them the listing before I write the ad?
G$: Yes! Just show them the listing and say, "Is this a good choice for Craig's List"?
Mary: That's it?
G$: Yes…they will look at it and say yes or no. If they say no then ask them why.
Mary: Ask them why it's no good?
G$: Yes...that way you will learn very quickly and without spending money what apartments will work and what won't.
Mary: Pretty cool.
G$: Very cool. Then take the listing back to your desk and write the ad...but don't submit it yet.
Mary: You want me to show them the ad before I run it?
G$: Absolutely 100%!
Mary: I remember my manager saying something about that but I don't want to bother them.
G$: It's not a bother. They don't have time to write the ad for you but they do have time to "tweak" it a little to make sure it will work.
Mary: I like to be independent.
G$: I know but you won't have to do this very long. After a couple months you will learn all the tricks to Craig's List because your manager is an expert.
Mary: Can't you just teach us?
G$: We try very hard but there are a lot of variables to learn about advertising so much of it has to be learned hands on.
Mary: Sounds good.
G$: OK...the next step for you is to double your number of appointments.
Mary: Double?
G$: Yes. We are coming into the busy season and you need to make a living, no?
Mary: I sure do.
G$: 3 or 4 appointments a week is not enough Mary. The best agents have an average of 2 appointments a day year round.
Mary: Wow, sounds like a lot.
G$: It is but that is the business. You can't change it until you build your referral network.
Mary: Then I won't have to take as many people out because I will be closing a higher percentage of them.
G$: Exactly. Or keep taking the same number out and make a whole heck of a lot more money.
Mary: It makes sense. I see what you are saying.
G$: It's your choice Mary. But if you average 10 appointments per week you would probably make close to $100K this year.
Mary: 10 appointments a week would be 40 appointments a month. And if I close 1 out of 5, I would do 8 deals!!! WOW!
G$: Now you are thinking like a pro...and even if you close 1 out of 8, you will do 5 deals which will make you well over $7,000 a month.
Mary: Thank you so much Greg...I mean GMoney!
G$: No you don't. My pleasure Mary! Are you going to do it?
Mary: You can bet on it!
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
G$ Consultation - Enter Agent Mary
Mary: Hi Greg.
G$: Hello Mary. I remember you from the seminar.
Mary: I loved it. I got a lot out of it.
G$: Good, are you working a buyer now?
Mary: Yes, I am.
G$: That's great…just one buyer at a time, right?
Mary: (smile) Yup. I was listening.
G$: Perfect, so how are you today?
Mary: I'm good...looking forward to chatting with you.
G$: Good...so how is your business going?
Mary: So so…I guess I'm doing all right.
G$: Would you like to do better?
Mary: I sure would…I'm eating into my savings.
G$: How long have you been in the business?
Mary: About 8 months.
G$: How many apartments have you rented?
Mary: Just closed my 12th.
G$: That's not terrible Mary but I'm sure we can find a way to help you out.
Mary: I hope so. I was hoping to be able to make at least $5,000 a month after the first few months.
G$: Well Mary, the good news is that we are about to hit the busiest time of year.
Mary: That's what I've heard.
G$: You've been doing about 1 or 2 deals a month, right?
Mary: Pretty much.
G$: If we can tweak your business just a little we should be able to get you up to 3 or 4 deals a month or maybe more.
Mary: Sounds great.
G$: I'm going to do a quick diagnostic on your business to see where we need to change a little, OK?
Mary: OK.
G$: It's the first week of April. How many apartments did you rent in March?
Mary: Just 1 and another fell through.
G$: How many appointments did you have in the last 7 days?
Mary: It was a little slow…3 I think.
G$: I see…and how many appointments did you have the week before?
Mary: Hmmm...I'm not sure but I try to have an appointment every day.
G$: How many appointments would you say you had in the whole month of March?
Mary: Hmmm…about 20...at least 20 I guess...Why?
G$: Because most agents tend to overestimate the number of appointments they have. They remember the busy days but not the slow ones.
Mary: You're probably right.
G$: Do you think that the 3 appointments last week was probably a fairly average week after all?
Mary: More or less.
G$: So then you are probably taking out more like 12 people a month correct?
Mary: I guess you are right.
G$: Do you know what your closing ratio is?
Mary: You mean...how many people do I take out to do a deal?
G$: Exactly.
Mary: I'm not sure...maybe I close 1 out of 5.
G$: Mary, all successful businesses keep records. I strongly recommend that going forward you keep track of your number of appointments and the percentage that you close.
Mary: Do you think that will help?
G$: I know it will. The act of keeping track will improve performance all by itself.
Mary: Consider it done.
G$: Mary you need to understand that on some levels this business is incredibly simple. There are only 3 ways to make more money.
Mary: Only 3?
G$: Yes. #1 work with more people...#2 close a higher percentage of the people you work with...#3 get bigger commissions.
Mary: How do you get bigger commissions?
G$: Sales commissions are bigger or higher budget rental deals and those things will come later. Let's talk about the first two.
Mary: All right.
G$: Very few agents err on the side of working too many people and their issues can be fixed by improved product knowledge and better follow up.
Mary: That makes sense.
G$: You seem to have a fairly decent closing ratio…1 out of 7 or so seems to be about the average for cold leads.
Mary: Cold leads?
G$: Cold leads are from your web ads or Craig's List...leads other than referrals.
Mary: Referrals are definitely better. I've gotten 3 referrals and closed 2 of them.
G$: Yes, they are. Most agents close well over half their referrals which comes under "#2 - close a higher percentage of the people you work with."
Mary: I guess I should do everything I can to get more referrals.
G$: You got it Mary! EVERY AGENT SHOULD!
Mary: I never looked at it that way.
G$: (smiling) Well, that's why I get the big bucks. It's pretty simple Mary. If you take out enough people…you will do enough deals.
Mary: It's not like I'm lazy, Greg. If I have people, I take them out.
G$: Most agents are the same way. We need to improve your lead generation.
Mary: I had a ticket to the Craig's List seminar but I had an appointment.
G$: That's a shame because it would have helped you a lot.
Mary: I'm so bummed.
G$: Your manager can help you on Craig's List and in the mean time I have a simple tip for you.
Mary: What's that?
G$: Half the battle with Craig's List is choosing the right apartment to advertise. Show your manager the listing before you write and place the ad.
Mary: I think they are too busy.
G$: No they aren't…trust me…they want you to do this. They don't have the time to find apartments for you to advertise but they can look at the listing you choose.
Mary: Just show them the listing before I write the ad?
G$: Yes! Just show them the listing and say, "Is this a good choice for Craig's List"?
Mary: That's it?
G$: Yes…they will look at it and say yes or no. If they say no then ask them why.
Mary: Ask them why it's no good?
G$: Yes...that way you will learn very quickly and without spending money what apartments will work and what won't.
Mary: Pretty cool.
G$: Very cool. Then take the listing back to your desk and write the ad...but don't submit it yet.
Mary: You want me to show them the ad before I run it?
G$: Absolutely 100%!
Mary: I remember my manager saying something about that but I don't want to bother them.
G$: It's not a bother. They don't have time to write the ad for you but they do have time to "tweak" it a little to make sure it will work.
Mary: I like to be independent.
G$: I know but you won't have to do this very long. After a couple months you will learn all the tricks to Craig's List because your manager is an expert.
Mary: Can't you just teach us?
G$: We try very hard but there are a lot of variables to learn about advertising so much of it has to be learned hands on.
Mary: Sounds good.
G$: OK...the next step for you is to double your number of appointments.
Mary: Double?
G$: Yes. We are coming into the busy season and you need to make a living, no?
Mary: I sure do.
G$: 3 or 4 appointments a week is not enough Mary. The best agents have an average of 2 appointments a day year round.
Mary: Wow, sounds like a lot.
G$: It is but that is the business. You can't change it until you build your referral network.
Mary: Then I won't have to take as many people out because I will be closing a higher percentage of them.
G$: Exactly. Or keep taking the same number out and make a whole heck of a lot more money.
Mary: It makes sense. I see what you are saying.
G$: It's your choice Mary. But if you average 10 appointments per week you would probably make close to $100K this year.
Mary: 10 appointments a week would be 40 appointments a month. And if I close 1 out of 5, I would do 8 deals!!! WOW!
G$: Now you are thinking like a pro...and even if you close 1 out of 8, you will do 5 deals which will make you well over $7,000 a month.
Mary: Thank you so much Greg...I mean GMoney!
G$: No you don't. My pleasure Mary! Are you going to do it?
Mary: You can bet on it!
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
| DOWNLOAD
G$ Consultation - Enter Enter Agent Bob
G$: Hello Bob. How are you?
Bob: OK Greg, thanks.
G$: I was just reading your bio. It looks great. You've been an agent for 5 years?
Bob: Yup. Feels like a lifetime.
G$: How do you like the business?
Bob: I hate it. The clients are all jerks. I never catch a break. I'm not making any money and frankly it sucks.
G$: I understand…a lot of experienced agents are having difficulties the last 6 months.
Bob: It's a nightmare and I really am thinking about doing something else.
G$: I'm looking at your production history here and I see you made over $100K 3 years in a row in 05, 06 & 07.
Bob: Yes, I did but 08 & 09 were terrible. I had 5 buyers that I was sure were going to buy this year but they didn't pan out.
G$: You and about 5,000 other agents had the same problem last year Bob.
Bob: Whatever...it just sucks.
G$: Do you want my help Bob?
Bob: Isn't that why we are here?
G$: Not necessarily. Why are you here?
Bob: My manager said I should come because you were my last hope.
G$: Do you know why?
Bob: I'm not sure but it's probably because I've only closed 4 rentals this year.
G$: How do you feel about your production this year?
Bob: I told you it sucks. Those guys should fire me.
G$: Do you want to be fired?
Bob: Not really, I guess.
G$: Do you want my help?
Bob: What do I have to lose at this point?
G$: But do you want it?
Yes, I guess...yes, I do.
G$: Good. That's the first step. Now we have a chance.
Bob: What do you mean, "we"?
G$: We're partners in this Bob. My job is to help you and I can't help you unless you want to be helped.
Bob: If you want to help me then tell me how to sell apartments in this market because I really hate rentals now.
G$: I will do that but I need to know if you believe I can help you. Do you?
Bob: I know the business.
G$: (nods his head in silence)
Bob: (long pause)…...All right.
G$: All right?
Bob: (laughs) Yes, I believe you can help me.
G$: (smiles) Good. Now we really have a good chance.
Bob: You crack me up.
G$: Just doing my thing…I was talking to your manager and she said you used to rent 6 or 8 apartments a month.
Bob: Yeah I did…back in the old days but the market was different then. Now I'm more into sales. Can we talk about that?
G$: I've been in sales for 25 years. I want you to sell apartments, believe me. We'll get there before we are done.
Bob: I'm listening.
G$: Good. Let's start with this…How much money do you need to pay your bills this year?
Bob: Minimum? Well, about $80K to break even.
G$: How much did you make last year?
Bob: $43K.
G$: So your business ran at a deficit last year and I guess 4 rentals in the first quarter of this year and no sales isn't helping?
Bob: No, it's not. It's a disaster…just terrible.
G$: Bob does it makes sense that the same actions on your part will probably equal the same results?
Bob: Yes, yes, I know but it's not me…it's the market!!!
G$: You mean the market changed?
Bob: Duh…of course it changed.
G$: Let me see if I have this right...the market changed…you did the same things that used to work…and your income was cut in half, correct?
Bob: Well, if you put it that way...
G$: Am I wrong?
Bob: I guess not.
G$: New sales volume has gone down 30 plus percent over the last 2 years in number of transactions depending on who you believe. Do you agree?
Bob: Sure.
G$: In addition, prices have come down substantially which means smaller commissions on the deals as well, correct?
Bob: What the hell are you trying to do? Talk me out of doing sales for God's sake?
G$: No, of course not. What I'm trying to do is develop a business plan with you that will help you survive until the market improves.
Bob: Survive?
G$: Yes Bob, survive. One of the common denominators of success is the ability to adapt and survive a market downturn like this.
Bob: Makes sense.
G$: How many apartments have you sold now in your career?
Bob: I think about 30 or close to it.
G$: In 2007 you closed over 10 sales, right?
Bob: Actually 14.
G$: And you will again someday and maybe even more than that.
Bob: From your mouth straight to God's ear, Baby.
G$: All we need to do is make sure you last in the business until things turn around a little.
Bob: I hear you.
G$: Good. In 2005 you made $110K. Did you close any sales that year?
Bob: No but I put 3 in contract that closed later on.
G$: So then in 2005 you made over $100K just in rentals?
Bob: Sure did...I was a machine back then.
G$: Could you do that again?
Bob: I hate rentals, Man…all that running around…$1,400 walk-ups…$2,400 2-beds…I don't want to do that again.
G$: How much are your bills this month?
Bob: You're killing me.
G$: Are you closing a sale soon?
Bob: You know I'm not.
G$: The people you write the checks to don't care if the money comes from sales or rentals.
Bob: I know.
G$: If you rented 4 apartments a month…just 1 per week…could you pay your bills?
Bob: Yes.
G$: We both know you are going to sell some apartments this year, right?
Bob: Yeah, eventually.
G$: But not as many as 2007, right?
Bob: That's highly unlikely.
G$: So we have a choice…make a lot less…or adapt our business plan.
Bob: I hate rentals.
G$: For you Bob…think of it as a means to an end.
Bob: Rent enough to pay the bills?
G$: Exactly…you shouldn't hate rentals…you should love them…they will keep you alive!
Bob: But I want to sell.
G$: How many sales appointments do you have a week these days?
Not sure, it varies…maybe 3 or 4 on average.
G$: OK. Then how many rental appointments a week would you need to close a deal a week?
Bob: 5 to 7 maybe.
G$: It sounds like 10 appointments a week then…sales and rentals combined. Can you do that?
Bob: If I get in the right head.
G$: Well then, if you get in the right head, you will rent 1 apartment a week and still sell too and the sales will be gravy.
Bob: Can we talk sales?
G$: We are! Do you keep track of your clients?
Bob: Of course. I got on that band wagon a long time ago.
G$: Then all these rental clients you work with this year will turn into your buyers of the future.
Bob: Good point. That's how I got started doing sales.
G$: And it will happen again. When we come out of this downturn you will be one of the top earning agents in town!
Bob: I guess you could say that for a lot of agents, couldn't you?
G$: I say it every day Bob. Did I help you?
Bob: Yes…yes, you did Greg. Thank you.
G$: Do you believe you will succeed?
Bob: You know what…yes, I do!
G$: So do I!
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
G$ Consultation - Enter Enter Agent Bob
G$: Hello Bob. How are you?
Bob: OK Greg, thanks.
G$: I was just reading your bio. It looks great. You've been an agent for 5 years?
Bob: Yup. Feels like a lifetime.
G$: How do you like the business?
Bob: I hate it. The clients are all jerks. I never catch a break. I'm not making any money and frankly it sucks.
G$: I understand…a lot of experienced agents are having difficulties the last 6 months.
Bob: It's a nightmare and I really am thinking about doing something else.
G$: I'm looking at your production history here and I see you made over $100K 3 years in a row in 05, 06 & 07.
Bob: Yes, I did but 08 & 09 were terrible. I had 5 buyers that I was sure were going to buy this year but they didn't pan out.
G$: You and about 5,000 other agents had the same problem last year Bob.
Bob: Whatever...it just sucks.
G$: Do you want my help Bob?
Bob: Isn't that why we are here?
G$: Not necessarily. Why are you here?
Bob: My manager said I should come because you were my last hope.
G$: Do you know why?
Bob: I'm not sure but it's probably because I've only closed 4 rentals this year.
G$: How do you feel about your production this year?
Bob: I told you it sucks. Those guys should fire me.
G$: Do you want to be fired?
Bob: Not really, I guess.
G$: Do you want my help?
Bob: What do I have to lose at this point?
G$: But do you want it?
Yes, I guess...yes, I do.
G$: Good. That's the first step. Now we have a chance.
Bob: What do you mean, "we"?
G$: We're partners in this Bob. My job is to help you and I can't help you unless you want to be helped.
Bob: If you want to help me then tell me how to sell apartments in this market because I really hate rentals now.
G$: I will do that but I need to know if you believe I can help you. Do you?
Bob: I know the business.
G$: (nods his head in silence)
Bob: (long pause)…...All right.
G$: All right?
Bob: (laughs) Yes, I believe you can help me.
G$: (smiles) Good. Now we really have a good chance.
Bob: You crack me up.
G$: Just doing my thing…I was talking to your manager and she said you used to rent 6 or 8 apartments a month.
Bob: Yeah I did…back in the old days but the market was different then. Now I'm more into sales. Can we talk about that?
G$: I've been in sales for 25 years. I want you to sell apartments, believe me. We'll get there before we are done.
Bob: I'm listening.
G$: Good. Let's start with this…How much money do you need to pay your bills this year?
Bob: Minimum? Well, about $80K to break even.
G$: How much did you make last year?
Bob: $43K.
G$: So your business ran at a deficit last year and I guess 4 rentals in the first quarter of this year and no sales isn't helping?
Bob: No, it's not. It's a disaster…just terrible.
G$: Bob does it makes sense that the same actions on your part will probably equal the same results?
Bob: Yes, yes, I know but it's not me…it's the market!!!
G$: You mean the market changed?
Bob: Duh…of course it changed.
G$: Let me see if I have this right...the market changed…you did the same things that used to work…and your income was cut in half, correct?
Bob: Well, if you put it that way...
G$: Am I wrong?
Bob: I guess not.
G$: New sales volume has gone down 30 plus percent over the last 2 years in number of transactions depending on who you believe. Do you agree?
Bob: Sure.
G$: In addition, prices have come down substantially which means smaller commissions on the deals as well, correct?
Bob: What the hell are you trying to do? Talk me out of doing sales for God's sake?
G$: No, of course not. What I'm trying to do is develop a business plan with you that will help you survive until the market improves.
Bob: Survive?
G$: Yes Bob, survive. One of the common denominators of success is the ability to adapt and survive a market downturn like this.
Bob: Makes sense.
G$: How many apartments have you sold now in your career?
Bob: I think about 30 or close to it.
G$: In 2007 you closed over 10 sales, right?
Bob: Actually 14.
G$: And you will again someday and maybe even more than that.
Bob: From your mouth straight to God's ear, Baby.
G$: All we need to do is make sure you last in the business until things turn around a little.
Bob: I hear you.
G$: Good. In 2005 you made $110K. Did you close any sales that year?
Bob: No but I put 3 in contract that closed later on.
G$: So then in 2005 you made over $100K just in rentals?
Bob: Sure did...I was a machine back then.
G$: Could you do that again?
Bob: I hate rentals, Man…all that running around…$1,400 walk-ups…$2,400 2-beds…I don't want to do that again.
G$: How much are your bills this month?
Bob: You're killing me.
G$: Are you closing a sale soon?
Bob: You know I'm not.
G$: The people you write the checks to don't care if the money comes from sales or rentals.
Bob: I know.
G$: If you rented 4 apartments a month…just 1 per week…could you pay your bills?
Bob: Yes.
G$: We both know you are going to sell some apartments this year, right?
Bob: Yeah, eventually.
G$: But not as many as 2007, right?
Bob: That's highly unlikely.
G$: So we have a choice…make a lot less…or adapt our business plan.
Bob: I hate rentals.
G$: For you Bob…think of it as a means to an end.
Bob: Rent enough to pay the bills?
G$: Exactly…you shouldn't hate rentals…you should love them…they will keep you alive!
Bob: But I want to sell.
G$: How many sales appointments do you have a week these days?
Not sure, it varies…maybe 3 or 4 on average.
G$: OK. Then how many rental appointments a week would you need to close a deal a week?
Bob: 5 to 7 maybe.
G$: It sounds like 10 appointments a week then…sales and rentals combined. Can you do that?
Bob: If I get in the right head.
G$: Well then, if you get in the right head, you will rent 1 apartment a week and still sell too and the sales will be gravy.
Bob: Can we talk sales?
G$: We are! Do you keep track of your clients?
Bob: Of course. I got on that band wagon a long time ago.
G$: Then all these rental clients you work with this year will turn into your buyers of the future.
Bob: Good point. That's how I got started doing sales.
G$: And it will happen again. When we come out of this downturn you will be one of the top earning agents in town!
Bob: I guess you could say that for a lot of agents, couldn't you?
G$: I say it every day Bob. Did I help you?
Bob: Yes…yes, you did Greg. Thank you.
G$: Do you believe you will succeed?
Bob: You know what…yes, I do!
G$: So do I!
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
| DOWNLOAD
The following is an excerpt from a lecture that I presented for 7 years to agents during their first week of rental training. If you are new to the business or struggling at the moment, you may find this information helpful. It applies equally to both rentals and sales.
REAL ESTATE 101
I'm going to give you some information now that will make your learning curve getting started in this business a lot shorter. Every agent that stays in this business and makes a living understands this principle that I call Real Estate 101. If you did not hear this presentation today, it might take you a few months or possibly an entire year or more to understand this principle and even worse some of you might not last in this business without learning it.
Some agents don't understand Real Estate 101 and as a result they don't like the business and they certainly don't make a decent living. You have a choice right now. Embrace the concepts we are about to discuss and incorporate them into your business or struggle along tryin g to swim against the current and work in misery for very little money. The choice is yours.
The phenomenon I'm going to discuss exists not just in New York City or Manhattan. It exists all over the United States and probably all over the world. It's the same in rentals and sales and it's the same now as it was 10,000 years ago when we were looking for a new cave to call home. It doesn't change because human nature doesn't change.
Please understand that you cannot change the nature of the real estate business either. If you try to fight these simple truths you are going to be extremely frustrated and you will have very little success. Successful agents understand these principles and work with them not against them. Understand human nature and work with it and as a result you will have a lot more success and you will like what you are doing a whole lot more than you would otherwise.
OK, are you ready? Here we go!
How many phone calls do you think we get like this?
"Hi, I need an apartment. I'd like to rent an average apartment. Nothing special at all. Please find me one that looks small and boxy like the other small boxes that people live in. It's also important to me that I pay fair market value or maybe even a little more than that. I believe in Karma and I don't want any boomerang back on me from paying the landlord too little and I know you are going to work hard for me so I want to make sure you are well compensated. Would it be OK if I paid you a 20% fee instead of 15%?"
Not many calls like that, right? What kind of calls do we get?
EVERYBODY WANTS A DEAL, EVERYBODY WANTS SOMETHING DIFFERENT & ALMOST EVERYONE WOULD PREFER NOT TO PAY A FEE!
There is one simple axiom that will help you attract more people with your advertising…"Advertise what THEY want!"
Find a great deal that has something a little different from the norm and your phone will never stop ringing in either rentals or sales.
People want a deal. Today more than ever. People will call on ads that are less than their budget but they will not call on ads over their budget. Obviously, lower priced ads get more response. The first step to doing enough deals is to attract enough people to work with. Come to our seminars and work closely with your manager until you learn the tricks to attracting enough people.
Here is a statistic that is well known by successful brokers:
First time buyers and first time renters almost always end up spending their maximum allowable housing budget.
That is a fact and it's true all over the good old US of A. In Manhattan, it is even more true. Have you noticed that this is one of the most expensive places in the country to live? New Yorkers as a rule spend a higher percentage of their income on housing than almost any other city dwellers in the country.
Now, given the fact that most people end up spending their max, how many inquiries do you think we get like this?
"Hi, I need an apartment. I'm not sure what I can afford but I want you to max me out. Yep, max me out. I know you have some kind of formula so please use it and max me out. Yep, I want to have nothing left over. I'm trying to quit a bunch of bad habits and I want to have zero disposable income."
Not many, right?
So this is our dilemma. Nobody plans on spending their maximum but everyone does in the end. We need a game plan to deal with this reality.
Statistics:
On average, a client who rents in New York City ends up spending 20% more than their original budget.
This means:
A client answering an ad for $1,500 will ultimately end up spending $1,800.
A client answering an ad for $2,000 will end up around $2,400.
$2,500 ad…$3,000, $3,000 ad…$3,600, $5,000 ad…$6,000, etc, etc.
On average, a client who buys in New York City ends up spending 25% more than their original budget.
A buyer calling on a $300K ad…$375K, $400K ad…$500K, $800K ad…$1M, etc, etc.
So what do we do? How do we do our job given this environment?
Number 1:
We must "respect" their budget. We have to show them the very best apartments that are out there at the budget they give us.
People will not raise their budget until they are absolutely 100% sure they will not be happy with what they can get at their budget.
Some agents attract people with low priced ads and immediately try to show them higher priced properties. They will lose 95% of their clients who will think they are a sleazy broker who is playing bait and switch. These types of brokers do not succeed.
Number 2:
People need to feel they are making an informed decision. No one is going to pay $2,500 a month unless they are sure there isn't an apartment down the block for $2,300 that is just as good.
People educate themselves on the marketplace by comparison shopping. Everyone's comfort level is different. Some people might feel comfortable after seeing 6 or 8 apartments. Another person may not feel like they know the market until they see 40 apartments.
So how many apartments do we show them? As many as they need to see to feel like they know enough to make an informed decision.
Number 3:
You can fail by raising their budget too soon and you can fail by raising their budget too late.
If you have strong product knowledge and you know you are showing them the best apartments out there and they aren't happy, you will lose them to another broker unless you try to show them a better selection of apartments for slightly more. If you don't do it, the next broker will and you will lose them after all your hard work educating them. COMMUNICATE AND SPEAK THE TRUTH.
Number 4:
90% of people who rent or buy end up getting something very different than what they started out looking for. IN NYC EVERYBODY COMPROMISES!
Here are the classic tradeoffs:
Price, Location, Size, View and Luxury Level.
We are not "order takers". When people first start looking, they give you a "wish" list and 90% of the time the requirements will change. They give you an original "wish" list based on an uniformed and inaccurate view of the marketplace. As they learn what is really out there and at what prices, most people will adapt their requirements and raise their price range a little bit.
Listen for the real "needs" behind the "wants". People will not take an apartment unless it is everything they "need". Most people only get some of the things they "want". Even in the highest price ranges people compromise.
Number 5:
90% of the concessions in any negotiation come in the last 10% of the time. People will not raise their budget or lower their expectations until they feel some time pressure. "When do you need to be in your new apartment?" is the most important question to ask in both sales and rentals. People will not get "realistic" until they are forced to by time pressure.
To sum things up:
For every client you have that says their budget is $2,000 a month but their income says they can afford $2,500 a month, I will bet you 100 bucks that what they end up renting is closer to $2,500 a month than $2,000 (and I will win 95% of the time).
I'll also bet you that they didn't raise their budget until you showed them 14 $2,000 apartments and they were starting to feel some time pressure.
I also wouldn't be surprised if they started out looking downtown and absolutely had to have a doorman and ended up on the Upper West in a brownstone!
Welcome to the real estate business! It's a people business and people change their minds. It's emotional, not always logical, and if you understand and embrace these principles you will love your job and make a great living besides.
That's REAL ESTATE 101. Live long and prosper!
G$
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
The following is an excerpt from a lecture that I presented for 7 years to agents during their first week of rental training. If you are new to the business or struggling at the moment, you may find this information helpful. It applies equally to both rentals and sales.
REAL ESTATE 101
I'm going to give you some information now that will make your learning curve getting started in this business a lot shorter. Every agent that stays in this business and makes a living understands this principle that I call Real Estate 101. If you did not hear this presentation today, it might take you a few months or possibly an entire year or more to understand this principle and even worse some of you might not last in this business without learning it.
Some agents don't understand Real Estate 101 and as a result they don't like the business and they certainly don't make a decent living. You have a choice right now. Embrace the concepts we are about to discuss and incorporate them into your business or struggle along tryin g to swim against the current and work in misery for very little money. The choice is yours.
The phenomenon I'm going to discuss exists not just in New York City or Manhattan. It exists all over the United States and probably all over the world. It's the same in rentals and sales and it's the same now as it was 10,000 years ago when we were looking for a new cave to call home. It doesn't change because human nature doesn't change.
Please understand that you cannot change the nature of the real estate business either. If you try to fight these simple truths you are going to be extremely frustrated and you will have very little success. Successful agents understand these principles and work with them not against them. Understand human nature and work with it and as a result you will have a lot more success and you will like what you are doing a whole lot more than you would otherwise.
OK, are you ready? Here we go!
How many phone calls do you think we get like this?
"Hi, I need an apartment. I'd like to rent an average apartment. Nothing special at all. Please find me one that looks small and boxy like the other small boxes that people live in. It's also important to me that I pay fair market value or maybe even a little more than that. I believe in Karma and I don't want any boomerang back on me from paying the landlord too little and I know you are going to work hard for me so I want to make sure you are well compensated. Would it be OK if I paid you a 20% fee instead of 15%?"
Not many calls like that, right? What kind of calls do we get?
EVERYBODY WANTS A DEAL, EVERYBODY WANTS SOMETHING DIFFERENT & ALMOST EVERYONE WOULD PREFER NOT TO PAY A FEE!
There is one simple axiom that will help you attract more people with your advertising…"Advertise what THEY want!"
Find a great deal that has something a little different from the norm and your phone will never stop ringing in either rentals or sales.
People want a deal. Today more than ever. People will call on ads that are less than their budget but they will not call on ads over their budget. Obviously, lower priced ads get more response. The first step to doing enough deals is to attract enough people to work with. Come to our seminars and work closely with your manager until you learn the tricks to attracting enough people.
Here is a statistic that is well known by successful brokers:
First time buyers and first time renters almost always end up spending their maximum allowable housing budget.
That is a fact and it's true all over the good old US of A. In Manhattan, it is even more true. Have you noticed that this is one of the most expensive places in the country to live? New Yorkers as a rule spend a higher percentage of their income on housing than almost any other city dwellers in the country.
Now, given the fact that most people end up spending their max, how many inquiries do you think we get like this?
"Hi, I need an apartment. I'm not sure what I can afford but I want you to max me out. Yep, max me out. I know you have some kind of formula so please use it and max me out. Yep, I want to have nothing left over. I'm trying to quit a bunch of bad habits and I want to have zero disposable income."
Not many, right?
So this is our dilemma. Nobody plans on spending their maximum but everyone does in the end. We need a game plan to deal with this reality.
Statistics:
On average, a client who rents in New York City ends up spending 20% more than their original budget.
This means:
A client answering an ad for $1,500 will ultimately end up spending $1,800.
A client answering an ad for $2,000 will end up around $2,400.
$2,500 ad…$3,000, $3,000 ad…$3,600, $5,000 ad…$6,000, etc, etc.
On average, a client who buys in New York City ends up spending 25% more than their original budget.
A buyer calling on a $300K ad…$375K, $400K ad…$500K, $800K ad…$1M, etc, etc.
So what do we do? How do we do our job given this environment?
Number 1:
We must "respect" their budget. We have to show them the very best apartments that are out there at the budget they give us.
People will not raise their budget until they are absolutely 100% sure they will not be happy with what they can get at their budget.
Some agents attract people with low priced ads and immediately try to show them higher priced properties. They will lose 95% of their clients who will think they are a sleazy broker who is playing bait and switch. These types of brokers do not succeed.
Number 2:
People need to feel they are making an informed decision. No one is going to pay $2,500 a month unless they are sure there isn't an apartment down the block for $2,300 that is just as good.
People educate themselves on the marketplace by comparison shopping. Everyone's comfort level is different. Some people might feel comfortable after seeing 6 or 8 apartments. Another person may not feel like they know the market until they see 40 apartments.
So how many apartments do we show them? As many as they need to see to feel like they know enough to make an informed decision.
Number 3:
You can fail by raising their budget too soon and you can fail by raising their budget too late.
If you have strong product knowledge and you know you are showing them the best apartments out there and they aren't happy, you will lose them to another broker unless you try to show them a better selection of apartments for slightly more. If you don't do it, the next broker will and you will lose them after all your hard work educating them. COMMUNICATE AND SPEAK THE TRUTH.
Number 4:
90% of people who rent or buy end up getting something very different than what they started out looking for. IN NYC EVERYBODY COMPROMISES!
Here are the classic tradeoffs:
Price, Location, Size, View and Luxury Level.
We are not "order takers". When people first start looking, they give you a "wish" list and 90% of the time the requirements will change. They give you an original "wish" list based on an uniformed and inaccurate view of the marketplace. As they learn what is really out there and at what prices, most people will adapt their requirements and raise their price range a little bit.
Listen for the real "needs" behind the "wants". People will not take an apartment unless it is everything they "need". Most people only get some of the things they "want". Even in the highest price ranges people compromise.
Number 5:
90% of the concessions in any negotiation come in the last 10% of the time. People will not raise their budget or lower their expectations until they feel some time pressure. "When do you need to be in your new apartment?" is the most important question to ask in both sales and rentals. People will not get "realistic" until they are forced to by time pressure.
To sum things up:
For every client you have that says their budget is $2,000 a month but their income says they can afford $2,500 a month, I will bet you 100 bucks that what they end up renting is closer to $2,500 a month than $2,000 (and I will win 95% of the time).
I'll also bet you that they didn't raise their budget until you showed them 14 $2,000 apartments and they were starting to feel some time pressure.
I also wouldn't be surprised if they started out looking downtown and absolutely had to have a doorman and ended up on the Upper West in a brownstone!
Welcome to the real estate business! It's a people business and people change their minds. It's emotional, not always logical, and if you understand and embrace these principles you will love your job and make a great living besides.
That's REAL ESTATE 101. Live long and prosper!
G$
DOWNLOAD | © 2010 Broker Heaven NY, Inc. All rights reserved.
