Risk Reduction For Sellers Montana 3 2009


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Can you reduce the risk to sellers and buyers in today's marketplace? Dave Beson considers the economy, the market, and the proper response from real estate professionals. You'll learn ideas on improving service, reducing risk, and delivering more results in a tough market.
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Risk Reduction For Sellers Montana 3 2009

  1. 1. 06/08/09 Dave Beson Risk Reduction for Sellers and YOU! Welcome Helena!
  2. 2. Introduction/Overview: <ul><li>ECONOMY: The economists warn of continued contraction of the marketplace. </li></ul><ul><li>ETHICS: Competition has never been fiercer. Professionalism and ethical behavior has never been more important. </li></ul><ul><li>INVENTORY AND EXCESS SUPPLY: The abundance of inventory, short sales, foreclosures, and overpriced property are confusing buyers and jamming up the usually efficient real estate marketplace. You have new liability and concerns with these sales. </li></ul><ul><li>MORE DEMANDS AND LESS PRODUCTION: Your customers and clients are demanding even more services and value, but also want options to pay less. Understand and explain your services with clarity. </li></ul><ul><li>TIME TO UPDATE AND REFRESH! </li></ul>
  3. 3. Professional Improvement <ul><li>Your customers and clients will benefit from your improved professionalism, service, and attention to contract and fiduciary interests. </li></ul><ul><li>Be informed! As a real estate professional you must strive to: </li></ul><ul><ul><li>Improve your level of service and “value—added” to every customer </li></ul></ul><ul><ul><li>Be customer and client centric: Innovate by delivering what your customers and clients want, when they want it </li></ul></ul><ul><ul><li>Energize your daily activity and every presentation by “sharpening your saw” as you master the best procedures, and industry practices to list, to sell, and to negotiate in the changing market. </li></ul></ul>
  4. 4. Waiting for the Market to Turn? <ul><li>What to do while you wait…get better. Step by step! </li></ul>
  5. 5. ETHICS: <ul><li>Choose Competence over Congeniality </li></ul><ul><li>Raise your sights and see the long-term nature of the business </li></ul><ul><li>Create legendary service. </li></ul>
  6. 6. Objectives: <ul><li>I. The student will discover and implement specific activities to avoid lawsuits and disciplinary actions through professional ‘best practices’. </li></ul><ul><li>II. The student will uncover deceptive practices and ‘gray areas’ of service and performance. By implementing a higher standard of service, the agent will go to greater lengths to assure compliance with laws, regulations, ethics, and standards of practice. </li></ul><ul><li>III. The student will create a plan to go beyond being ‘legal’, and to raise their customer service to a level where they will attract positive attention, respect and improved results with buyers and sellers. </li></ul><ul><li>IV. All real estate licensees need to understand who is protected by the fair housing laws. </li></ul>
  7. 7. Contracts, Purchase & Sales: <ul><li>How crucial are agreements in the legal transference of ownership? </li></ul><ul><li>The importance of contracts by which agreements are reached; i.e. a prospective buyer is placing an offer, or a seller is considering an offer on property. </li></ul><ul><li>How has this market “raised the bar” in terms of client and customer expectations? </li></ul>
  8. 8. Overview of the various types of contracts: <ul><li>I. General contracts </li></ul><ul><li>II. Various types of real estate contracts: </li></ul><ul><ul><li>Bilateral & Unilateral </li></ul></ul><ul><ul><li>Executed & Executory </li></ul></ul><ul><ul><li>Void & Voidable </li></ul></ul><ul><ul><li>Implied, </li></ul></ul><ul><ul><li>Express </li></ul></ul><ul><ul><li>Valid </li></ul></ul><ul><ul><li>Unenforceable </li></ul></ul>
  9. 9. The five components that make a contract valid: <ul><li>Mutual assent </li></ul><ul><li>Legally competent parties </li></ul><ul><li>Consideration </li></ul><ul><li>Lawful objective </li></ul><ul><li>Adherence to a statute of frauds </li></ul>
  10. 10. Issues of standards of conduct and moral judgment. <ul><li>Special concerns for today’s market. </li></ul><ul><li>Foreclosures and short sales </li></ul><ul><li>Buyer uncertainty and economic concerns </li></ul><ul><li>Inspection issues and buyer’s remorse: Case Study </li></ul>
  11. 11. TIME TO UPDATE AND REFRESH: <ul><li>Calendar of Improved Service: 12-Months of Service Activities Build your own, using this resource list. </li></ul><ul><li>1. January – Revise your pre-listing package, including the CMA and all disclosures. Feelings of wealth are diminished in this market, so you must have support for your pricing and valuation presentations. Evidence is essential. </li></ul><ul><li>2. February –Review your pricing dialogues and your evidence presented to sellers. Remind customer and clients that you can assist with mortgage issues by referring a specialist. </li></ul><ul><li>3. March – Seek new customer satisfaction - third party endorsements and testimonials. Call to announce recent results or market changes. Keep your customers and clients informed. Read ‘Raving Fans.’ Take a past client to breakfast to ask “what could we do better?” </li></ul>
  12. 12. Service <ul><li>4. April – Send your January through March quarterly summary of sales and market trends. 5. May – Make up a list of ten good builders or remodelers with phone numbers and share this with your customers and clients. 6. June – Develop your materials which explain ‘extra value’ services such as a “SATISFACTION GUARANTEE.” Revise your home highlight sheet layout. 7. July – Add testimonials and customer feedback on your services to your website and marketing materials in order to assist buyers and sellers in making informed decisions. 8. August – Analyze three sample properties for investment and share the analysis with prospective purchasers. Be sure to use all appropriate disclosures about assumptions and that results are not guaranteed. </li></ul>
  13. 13. Service <ul><li>9. September – Take time to analyze your business, your staff, and your communications program with prospects and clients. </li></ul><ul><li>10. October – Analyze new buyer objections and prepare to assist buyers. An example would be “We only want to look at short sales.” How do you explain short sales, show alternatives, and properly disclose the hazards of buying a short sale? </li></ul><ul><li>11. November - Vote! Add another layer of service for buyers by creating a client contact program that helps locate the right home for the buyer. You will raise your level of service and support for buyers and it will improve your results. </li></ul><ul><li>12. December – Revise your ‘seller moving and closing questions’ handout. </li></ul>
  14. 14. SERVICE IDEAS <ul><li>In a time of crisis people always look for LEADERSHIP. </li></ul><ul><li>Agents who are casual about their business will not get the work of representing sellers and buyers in this challenging market. </li></ul><ul><li>Experts are in demand. </li></ul><ul><li>Think TEAM! “Together Each Achieves More” </li></ul>
  15. 15. Disclosure and Risk Reduction <ul><li>Digital Cameras and how they help you list and sell. • Favorites include: Digital camera with video and voice: www.hp.com/go/realestate . • Use your digital camera to make an easy slide show of comparable homes, prior to your listing appointment. You can visually ‘tour’ the competition. • Make a slide show of potential listings DEFECTS. Secure the listing, and then offer to make merchandising suggestions. </li></ul><ul><li>While viewing the defects on your computer, ask, “Is this something you want to take care of before the appraiser raises objections, or the buyer takes a discount?” </li></ul>
  16. 16. BECOME MORE CUSTOMER FOCUSED <ul><li>Use a client survey. Learn what your clients want and how you are doing. • Include a cover letter prepared by you, signed by your manager, asking the customer to evaluate your performance on a one to ten in key areas: Communication, friendliness, professionalism, ability to handle problems, etc. </li></ul><ul><li>Have a meeting of customers to ask their help. </li></ul><ul><ul><li>What is one thing that you did best? </li></ul></ul><ul><ul><li>What is one thing you could do better? </li></ul></ul><ul><ul><li>Would they recommend you? </li></ul></ul><ul><ul><li>Do they have a friend you can help? </li></ul></ul>
  17. 17. Audit your systems for prospecting and client follow-up <ul><li>Focus upon past clients first. </li></ul><ul><li>Increasing results for sellers: fulfilling your fiduciary responsibility </li></ul><ul><ul><li>Would you like to follow-up on open houses visitors weekly? </li></ul></ul><ul><ul><li>Would you like to prospect builders? </li></ul></ul><ul><ul><li>Would you like to connect with relocation coordinators, personnel directors and headhunters for referrals of transferees? </li></ul></ul>
  18. 18. Changing Your Work-plan for the Changing Market: Doing More for Clients <ul><li>Bring Proven Evidence for the CMA and Seller Presentation </li></ul><ul><li>Update your pre-listing package to include key graphs such as “Initial Market Time is Important,” “Bulls-Eye Pricing” and more. </li></ul><ul><li>Add an “Ironclad Service Guarantee” for sellers. A written guarantee that you will present a marketing plan and follow it. </li></ul><ul><li>Use a seller follow-up program in MSOUTLOOK or Top Producer to keep them posted weekly. </li></ul><ul><li>Have a check point every 21 days with sellers to update them on the market and results. </li></ul><ul><li>Use the phrase “the market indicates” when discussing market trends and valuations. </li></ul><ul><li>Let input from buyers be a part of your dialogue with sellers. </li></ul><ul><li>Always talk in terms of price, terms, condition, and marketing and what needs to happen next. </li></ul>
  19. 19. RISK REDUCTION <ul><li>The “Seamless Transaction” </li></ul><ul><li>Solve problems before they come up. • Improve your odds with buyers by suggesting that they talk with your preferred mortgage lender prior to your appointment. Or give a suggested list of three professionals and allow the buyer to choose. • Add further to your timesaving and effectiveness by attaching the pre-qualification letter to any purchase agreement, prior to presentation. • Use a pre-listing appointment checklist. Call prior to your appointment with scripted questions. Avoid errors, omissions, and wasted effort. Be a professional with a plan. </li></ul><ul><li>“ What questions do you need answered tonight?  </li></ul><ul><li>“ Which is of greater concern, the price, the marketing, or your  selling and moving costs?”  </li></ul><ul><li>“ Is there anything else?” </li></ul><ul><li>  </li></ul>
  20. 20. SERVICE REDUCES COMPLAINTS AND EXPENSIVE FAILURE <ul><li>Avoiding Service Interruption </li></ul><ul><ul><li>“ Will you have all decision makers present?” </li></ul></ul><ul><ul><li>Would you please have original utility bills, a copy of your mortgage payment record? </li></ul></ul><ul><ul><li>Determine if they are ready to list by asking them to do something  physical, in advance. </li></ul></ul><ul><ul><li>“ Will you please have three keys available?” </li></ul></ul><ul><ul><li>The keys are used for marketing, for back up, and for the appraiser or for the buyer at the settlement. Keep them secure. </li></ul></ul><ul><ul><li>Think differently about your business and your life. Do something different! </li></ul></ul><ul><li>Unlock your creativity and think outside the box. </li></ul><ul><li>Read Roger Von Oech’s book, “A Whack on the Side of the Head.” </li></ul>
  21. 21. PROFESSIONALISM <ul><li>Checklists: Use checklists to save time and to check your progress on any transaction “at a glance” • Use a contract checklist inside the file folder of every transaction. • This may be based upon the checklist in your contact manager, or be a quick overview that you create. • By having it inside the folder, any team member can quickly determine status and needed action, without turning on the computer. </li></ul>
  22. 22. LEGACY SERVICE AND RESULTS FOR CUSTOMERS AND CLIENTS <ul><li>Develop ongoing education to serve you and your career goals, not just  CE deadlines  </li></ul><ul><ul><li>Designations: CRS, ABR, CCIM, CRB, SRES, and others  </li></ul></ul><ul><ul><li>Technology and software to improve your service, your business, and  your results  </li></ul></ul><ul><ul><li>Add to expertise in order to develop another ‘niche’ market:  builders, relocation, investment, seniors, vacation homes, or your  preference  </li></ul></ul><ul><ul><li>Develop enhanced business management tools: budgeting, projections, cash management, and family planning </li></ul></ul><ul><li>Develop a long-term view of the business </li></ul><ul><li>Long-term goals tell us “WHY” we work. </li></ul><ul><li>Short-term goals tell us “WHAT WE DO.” </li></ul><ul><li>Avoid “terminal awareness.” • Develop your “vision” of your business 3, 5, 10, or even 20 years out. • Think bigger, with a longer-term vision. • Work backward from your vision to your “action steps.” </li></ul><ul><li>Now start! </li></ul>
  23. 23. Transaction Platforms: Connecting with ancillary businesses <ul><li>• Begin to use services for online monitoring and communication. • Mortgage processing, title processing, inspections, disclosures and more will be the first to be involved. • Perhaps the “connected transaction” will be like the “paperless office.” It’s possible, but never really achieved. • The possibilities of linking your web site to your title company, getting email instead of phone calls, connecting your phone to your consumer hotline, forwarding your phone on your desk to your cell phone, and other applications are huge. • Be curious! Don’t refuse to participate in the expanding horizons of technology and tools.   </li></ul>
  24. 24. Q&A and Seminar Conclusion <ul><li>Questions and Answers on the class content. </li></ul><ul><li>Course concludes.  </li></ul>
  25. 25. SUCCESS STRATEGY #1– LOW TECH! What is your “X” factor? Something extra you do to assist buyers and sellers? 06/08/09
  26. 26. SUCCESS STRATEGY #2: DEMONSTRATE YOUR “REAL TIME RESULTS.” <ul><li>Exceed customer expectations. </li></ul><ul><li>Meet or beat deadlines for information, photos, Internet and email response. </li></ul>06/08/09
  27. 27. IMPROVE YOUR PROMOTIONS <ul><li>“ Just enough, just in time, just for you” </li></ul><ul><li>Digital Camera - Condition the home with your camera </li></ul><ul><li>“ How shall I explain this to buyers?” </li></ul><ul><li>“ Which of these defects would you like to eliminate before the buyer takes their discount?” </li></ul>06/08/09
  28. 28. SUCCESS STRATEGY #3: NAR STATISTIC: 99% USE WEB BEFORE THEY CALL US. <ul><li>NO CLICKS! </li></ul><ul><li>Most important info at the top of the page </li></ul><ul><li>Improve communication: Connect to PDA with Button:   “Please contact me” </li></ul>06/08/09
  29. 29. SUCCESS STRATEGY #4: PROFESIONAL PRESENTATION <ul><li>Practice your technique and perfect your performance </li></ul><ul><li>Use visuals to focus attention </li></ul>06/08/09 Snow Day Winning takes training!
  30. 30. The Market is Broken: We must “ RE-SET” your pricing.
  31. 31. My role is to interpret the market for you!
  32. 32. Your Neighborhood! BULLSEYE PRICING We can ask any price! $274,000 - $309,000 $327,000 Expired $309,000 Price reduced $289,000 Just listed! $274,700 SOLD!!!
  33. 33. The Importance of Price on Market Performance: Use Statistics June 8, 2009
  34. 34. How to Get Your Property Sold! SOLD Merchandising Condition Poor pricing Poor Merchandising Good pricing, merchandising and marketing!
  35. 35. SUCCESS STRATEGY #5: CRM: CUSTOMER RELATIONSHIP MANAGEMENT <ul><li>‘ Action Plans’ - pre-written, pre-prepared, pre-determined. </li></ul><ul><li>Longer market times and multiple offers require better communication. </li></ul><ul><li>Transaction follow-up is essential to the closing. </li></ul><ul><li>Foreclosures and short sales require multiple communications and documentation. </li></ul>06/08/09
  36. 36. SUCCESS STRATEGY #6: MARKETING to the INFORMED CONSUMER. <ul><li>Customer Centric Messages: Connect! </li></ul><ul><li>REALTOR.COM and the REALTOR organization </li></ul>06/08/09
  37. 41. SUCCESS STRATEGY #7: NEIGHBORHOOD FACTS AND GRAPHS <ul><li>Help build effective presentations. </li></ul><ul><li>Colorful presentation, printed, or emailable </li></ul><ul><li>Personalized listing presentations </li></ul><ul><li>Examples: </li></ul>06/08/09
  38. 42. SUCCESS STRATEGY #8: USE EMAIL PROFESSIONALLY <ul><li>Response time </li></ul><ul><li>Correct information </li></ul><ul><li>Retain for errors and omissions </li></ul><ul><li>Business improvement tool: Survey clients about </li></ul>06/08/09
  39. 43. SUCCESS STRATEGY #9: MANAGE YOUR PROFESSIONALISM TO THE NEXT LEVEL. <ul><li>Growth Cycles </li></ul><ul><li>Focus and discipline to do ‘the right thing?’ </li></ul><ul><li>What system do you use to measure results? </li></ul>06/08/09
  40. 44. SUCCESS STRATEGY # 10: FOCUS YOUR VISION <ul><li>Game-plan for key activities </li></ul><ul><li>Focus on incremental improvement </li></ul><ul><li>Re-dedicate yourself to not just surviving, but thriving by delivering results to clients and customers. </li></ul>06/08/09
  41. 45. SUCCESS STRATEGY #11: YOUR PERSONAL ACTION PLAN <ul><li>Close the Gap: NAR SURVEY </li></ul><ul><ul><li>80% of customers are satisfied </li></ul></ul><ul><ul><li>11% repeat </li></ul></ul>06/08/09
  42. 46. SUCCESS STRATEGY# 12: TURNAROUND YOUR BUSINESS WITH BEST PRACTICES <ul><li>Automate your listing </li></ul><ul><li>Improve your CMA and presentation </li></ul><ul><li>Schedule your marketing and client follow-up </li></ul><ul><li>Next 60 Days </li></ul><ul><ul><li>Improve the ‘look’ of your presentation </li></ul></ul><ul><ul><li>Create a pre-listing kit </li></ul></ul><ul><ul><li>Make a checklist for anything that will happen more than once </li></ul></ul>06/08/09
  43. 47. STRATEGY #13. Integrity. <ul><li>“ There is no such thing as a high level of integrity. You either have integrity, or you do not!” </li></ul><ul><li>Ethical behavior is the bedrock of our industry. </li></ul><ul><li>We will survive, thrive, and prosper by always doing the right thing. </li></ul>06/08/09
  44. 48. Seminar Conclusion and Evaluation <ul><li>END </li></ul>