I have had the experience of living in a city and the suburbs, both as a child and as an adult. Definitely different lifestyles; each with its own merits. I was raised in a neighborhood of homes built at the turn of the 20th century in upstate New York. While each home had its own distinct style, one thing they all had in common was either a front porch or a ‘stoop’. Traveling down memory lane one day I Googled the street on which I was raised. The memories came flying back. Without divulging how many years ago this was, the one main fond memory is that of a slower time in life. Everyone on our street knew each other. In the summer months, we sat on our front porches or stoops and watched friends and neighbors walk by. In those days people took the time to stop, say hello, and chat. It was a very good way to get to know your neighbors. In many ways, it will always be ‘home’.

When I first started The Home Front, one of the reasons I titled my article The Front Porch was to reflect on the experience of watching and observing. Assessing and evaluating sales agents through the mystery shop process is an exercise of observation and examination of the agent’s ability to structure an effective sales presentation. Now my front porch is either a hidden audio recorder or a hidden video camera. The observation of the sales agent in action provides both management and the agent the opportunity to discuss how effective the agent is at securing the sale. Management and agents must have a constructive conversation about what occurred during a specific sales encounter. The emphasis is on constructive. Make it a friendly and positive discussion.

Many aspects of an effective sales presentation need to be in place. We have discussed the technical components over the years in this newsletter. But beyond the technical skills, an agent must incorporate much more.

Building rapport. We talk a lot about creating rapport with our prospective buyers. But so many agents just don’t know how. Why is that? Is it because an agent sees a sale vs. a neighbor? In a sense, an agent should treat their sales center as a front porch in a neighborhood they live in. Do they take the time to offer a friendly and warm hello? Do they take the time to ‘chat’ with their prospective buyer who just might become a neighbor? Do they take the time to determine ‘how is it going’? Do they take the time to have a conversation? In short, do they just take the time to get to know their buyer? Too often our agents just rush through the drill and the whole encounter is perfunctory and impersonal.

While we do not want mindless chatter in a sales presentation, home sales must never be a mechanical process. Information download is not conducive to creating a relaxed selling environment and creating rapport.

One of the 1st steps to allow us to have an effective conversation is the use of small talk. Never underestimate the power of small talk. Whether we are at a party or any other social function, we have all found ourselves engaged in it. It is the icebreaker we use to converse with people we do not know. It is how we find common ground so we can engage in casual conversation. You should enjoy the process of learning about someone through hearing their story. The value in small talk is not so much in the words being spoken, but in the geniality of the interaction. Through small talk, we are setting the stage for further interaction.

For example, someone asks 'how are you?' These words, when said in the right way, represent friendliness and a sincere interest in that other person. Now we don’t want to spend time to get into the details of each others lives. But some small talk, keeping it short, helps break down the barrier of the buyer who ‘won’t be sold’. I observed one agent start their conversation by complimenting someone on their jewelry and learned that that person had her own jewelry business. A brief conversation ensued and instant rapport was created.

In good times or bad, agents must think in terms of people and homes, not traffic and units. Our homes are our refuge and when we make that decision to purchase a home, it has to feel right. Therefore an agent needs to get to that point in their sales presentation where one of their homes feels right to the prospective buyer. So instead of asking how do you like it or what do you think, perhaps a better question might be, ‘how does it feel’? When you get your buyers feeling positive about your homes, you are on the road to obtaining a purchase commitment. Get the buyers to chat about their family in their new home. They will then begin their journey down a new memory lane.

Our Kudos to the following sales professionals who demonstrated excellence in sales this past quarter. Most of our superstars this past quarter sell for Richmond American Homes. This division of Richmond American works with their team until their minimum score is 90%. Their effort shows!

Sarah Lockhart
K. Hovnanian
Sarah sells at an active adult community. She excels in all areas of her sales presentation. She slowly builds rapport, gets to know her prospective buyers, tailors her presentation to both the buyer’s needs and preferences and also structures her presentation to meet her buyer demographics. Sarah knows how to lay the proper foundation to ask for the sale and then asks for it!

Kelly Dryden
Arcadia Homes
Kelly demonstrated an organized and effective sales presentation. She listens well, uses great benefit selling language and creates uniqueness for her community. Most importantly, Kelly obtained her buyer’s emotional connection to both the home and home site. She then helped her buyer visualize living in the home.

Richmond American Homes:

Perfection:
Our Kudos to Cindy Wilk and Kimberly Nichols. Each of these superstars scored a perfect 100 excelling in all areas of very effective sales presentations.

Almost Perfect:
Chris Papin. Chris scored 99%. Chris is a true sales professional. She is confident, demonstrates excellent product knowledge and did not hesitate to ask for the sale.

Dana Colia. Scoring 98 points, Dana also demonstrated superb selling skills. She proudly stated to her buyer, ‘My job is to find you the home of your dreams’.

Near Perfect:
Scoring in the high 90’s are the following Super Stars: Jason Brantell, Shaun McKay, Lori Lynch and Melissa Loprino.
For those regular readers of my column who have already experienced other previous down-cycles, as well as for those of you who joined our industry from the mid-1990s through 2006, this is without a doubt a great time to think “outside the box” in how you sell and market your houses.

This is the worst cycle I have experienced in my 49 years involved in home building. Whatever worked for you during the great years either stopped working or at best isn't working as well as it did.

I really cannot take personal credit for these great ideas; they come from our clients, and they work.

1.) Have your sales offices shopped! I recently shopped sales teams. I was shocked at how few, if any, salespeople tried to sell me a home. They were still operating as if buyers were going to take houses away from them rather than selling their offerings. You need to have your salespeople sharp and selling.

2.) Make sure your sales offices and models are in tip-top shape! Models need to be clean and fresh; offices well organized; burned out light bulbs replaced; and trash picked up daily. Landscaping and signs need to be in tip-top condition; they're what homebuyers see first.

3.) Remember that Net sales after cancellations are what really count! In these times, it's most important to keep sales after you've made them. It's easy for buyer's remorse to set in. One of our clients has solved that problem in the novel way the company finances its sales.

After seeing 20-plus of their 30 pre-sold houses cancel after construction started and winding up with 20-plus speculative houses to sell, they realized they had to stop cancellations. They talked with the banks providing their construction financing as well as other banks they had no previous relationship with and convinced them to make the construction loans directly with the home buyer rather than the company (subject to buyer's credit being acceptable and so long as the buyer had a commitment for a permanent takeout loan). The result: no cancellations.

4.) Expand your current referral program or start a new one! Whereas newspaper and other media ads are costly and won't necessarily produce enough sales to warrant the investment, fees to your existing homeowners for referrals that are paid at closing directly relate to actual sales and are easy to track. The builder we refer to is offering $2,500 to existing homeowners for each referral they turn in that results in a sale, payable at closing.

Check your local state laws in each market to make sure you aren't breaking the law. We also suggested the builder hold a bi-monthly reception for all homeowners in the subdivision to introduce new buyers to the other families in the community. The firm also offers $25 for each referral, just for the lead.

5.) Help your buyers sell their existing homes! Dust off your previous guaranteed resale programs or start a new one. Help your buyers sell their existing home if that's what it takes to make the sale.Make sure your broker properly values the house for a quick sale within the new house construction period.

That way the existing house is sold and ready to close when the new house is completed.

Ideally, the broker should be the one who guarantees the sale; it ensures that they're motivated to sell the home quickly. Work only with brokers who have the financial wherewithal to buy the existing home if it's not sold when the new home is complete. Also, it's very important that the broker is on your team; they need to be able to explain the program effectively (i.e. “You may not get all you want from the sale of your home but you're getting a great deal on the new one”). If it isn't sold quickly, you either priced it incorrectly or somebody wasn't paying attention.

6.) Revisit your product offerings and standard features! To really get out of the box, don't think that sales and marketing ends in the sales office. It's about the product too; does it still work for today's buyer? If your competition includes re-sales and foreclosures, it may just be all about price. Are your specs too high? Are the homes too big? Do you really need granite countertops as a standard feature? What's wrong with vinyl flooring? Don't leave any stone unturned; get the price down!

These are just a few ideas. Examine your own business and come up with your own. They may seem crazy or absurd at first but after studying them they might just help you stay in the game until the market stabilizes once again — and it will

Michael P. Kahn is president of Michael P. Kahn & Associates, a financial advisory firm specializing in housing industry mergers, acquisitions and capital formation.

The best sales manager can be the messiah for a merchant builder. A sales messiah has the ability to take his or her flock to the promised land. They can lead followers themselves and leverage results by using the talents of their closest confidants. This happens not by command but by leadership. By providing tools, coaching, support, guidance, and simple caring. The sales messiah seems to be able to calm waters and cause results that will feed a large flock. They may well perform miracles.

The sales messiah’s followers will all bring different talents to the table. All are interested in creating the same basic result, but have different, sometimes complementary approaches toward a common goal. Some are the masters of making the possible happen. To do so, they often ignore the storming waters or the drought or the plague or pestilence. But some followers need much more help to become successful at making the possible actually occur. They all find different ways to interact with believers.

Some followers are not believers; they are, in fact, a distraction. Sometimes they are even sinister. But all are part of the sales messiah’s flock.

I call these different personalities the apossibles. Some apossibles naturally leverage the skills of the sales messiah. Some apossibles need more mentoring. Despite their exalted status, appossibles are still human, still have frailties.

Which of these appossibles do you see in your own flock?

1. The Rock: This is the apossible that is reliable, steady, and a quiet leader. This is the apossible that others can count on to provide guidance, leadership and advice. Typically a seasoned apossible, this person has gathered a great deal of success and knows that he is doing God’s work…providing shelter!

2. The Fisher: This is the apossible that is best at casting a wide net. In new home sales, she understands the value of self-prospecting. When one cast does not succeed, she quickly re-focuses, and casts the net again. One cast does not make a fishing endeavor!

3. The Farmer: This apossible prepares well, is always cultivating crops. Crops for this season’s harvest but also the next. The Farmer knows how to leverage the current crop into improving the yield of future harvests.

4. The Healer: This apossible is an excellent listener. By outstanding questions, and keen observation, the Healer can diagnose well. Then she can prescribe the appropriate remedy to individual situations. She realizes that the same remedy may be successful for different situations.

5. The Doubting Thomas: This is the apossible that is too concerned with excuses for failure, rather than reasons for success. Without more mentoring, this apossible may spread negative attitudes throughout. He needs much attention from the Messiah and, for that matter, the Rock. Once Thomas is convinced, he becomes a zealot and his performance should be exemplary.

6. The Martyr: This is the apossible that has an excuse for everything. He feels that all forces in the universe conspire to make him fail…and tells anyone who will listen that he would be successful if only. If only the weather were better, crops more plentiful, taxation less onerous, and people more generous. The martyr needs to change attitude or be banished from the rest of the apossibles. His diseased attitude can be contagious.

7. The Tax Collector: This apossible is not well understood. While very thorough, she focuses too much on the tax issues. She misses the point that taxes are never liked. They are, at best, a necessary evil. Few followers make decisions based on taxation. This apossible finds such a comment confusing. The Tax Collector needs to be guided into a more holistic approach. As a decision is looming, the taxation matters may sway a believer one way or the other, but few believers make taxing the primary decision point.

8. The Beloved: This is the favorite of the Messiah…and, thus, causes some jealousy from other apossibles. Frequently, this apossible is able to ignore the entreaties of the Messiah. After all, these should apply to the “average” apossible and not the favored one. It is incumbent on The Rock to help the Messiah shepherd all the flock toward the same pasture.

Having one apossible heading in another direction may lead other apossibles into a thorny thicket. The rest of the apossibles will then waste time, while the straying apossibles are rescued. Then forgiven. This is not as good use of messianic energy.

9. The Scribe: This apossible would rather write to believers he has not yet met. However, he often is blind to those who are actually in his presence. He often has his head down, as much to hide as to write!

10. The Evangelist: This apossible is committed to the cause. He is always preaching the message. Salvation. Solving the problems of the flock. And is ALWAYS prepared to carry the message whether in the company of other appossibles or not. Whether in earshot of the Messiah or not.

11. The Zealot: Zealots are often confused with evangelists. While their devotion is intense, they do not carry their commitment to others.

12. The Traitor: Aside from the obvious character flaws, the Traitor takes the short-term view and will sell out every principle for an immediate payment. We are not surprised that there is a Traitor among the apossibles, but we are surprised that it is often the one who professes the most love.

Dave “HARD” Harding is President of HARDintelligence.com a sales and marketing resource for homebuilders, developers and lenders. He is a former NAHB national sales manager of the year. Dave trains homebuilding teams throughout Canada, The United States and in China and has been the workout expert for lenders from Japan, France, Britain, Canada, HongKong and many US institutions. He instructs land acquisition, master planned development and developing green and sustainable master planned communities at UC Irvine. He can be reached at 949. 315. 5890 or HARD@HARDintelligence.com

What is success to you? Ask yourself these questions:
1. How can you be more successful?
2. Why is it so difficult to focus your energy on your goals?
3. Why are you always running out of time?
Time Utilization
The $86,400 question – If you had a bank that credited your account each morning with $86,400, that carried over no balance from day to day, and allowed you to keep no cash in your account, and every evening canceled whatever part of the amount you had failed to use during the day, what would do?
Draw out every cent, of course!
You do have such a bank, and its name is “time”. Every morning, it credits you with 86,400 seconds. Every night, it rules off, as lost, whatever you failed to invest in a good purpose. If you fail to use the day’s deposits, the loss is yours.
Premise:
There is not enough time in the day to get all the things done you want to do! Accept this premise and you are on your way to improving your use of time. If you still believe you can do everything you want to, you will remain as frustrated as you are right now.
Solution:
Since you can’t do everything you want to, the logical solution is to begin eliminating certain tasks. You do this by saying “NO” and separating your HIGH PAYOFF ACTIVITIES from your LOW PAYOFF ACTIVITIES.

High payoff activities
Directly related to your goals
Can’t be delegated
Might be unpleasant
Might be difficult to do
Tend to be risk-taking
High return on investment

Low payoff activities
Not related to your goals
Comfortable to do
Non- creative
Non- risk taking Routine Trivial
Make a list
What are you doing with your time? Ask yourself this- “Is what I am doing right now helping me to sell another home or helping me achieve a personal or professional goal?” Is today getting you one day closer to what you want to be, or what you want to have in life? Listed below are some common time wasters for real estate sales people:
Telephone interruptions Inadequate planning
Attempting too much
Drop in visitors (not prospects)
Failure to delegate Personal disorganization
Lack of self discipline
Inability to say “No”
Procrastination Meetings
Paperwork Leaving tasks unfinished
Socializing Confused responsibility
Poor communications No goals
Take the time to make a list of “time wasters” that you encounter which keep you from reaching your goals.

The Action Plan

Organize your plan into three parts:

1. Goals for the day – the core tasks you must get done. Prospect follow up, setting appointments for return visits, Realtor activities, prospecting for referrals, etc.

2. Scheduled appointments, meetings, and blocks of time set aside for specific responsibilities.

3. A to-do list of things you don’t want to forget and lower priority items you would like to get done if possible.

Here is an excerpt from chapter four (Knowing Your Authentic Self) of True North, a book on leadership written by Bill George (Published by Jossey- Bass 2007):

“The advice to know yourself is thousands of years old. But knowing ourselves at the deepest level is not easy, as we are complex human beings with many aspects to our character. We are constantly evolving, as we test ourselves in the world, are influenced by it, and adapt to our environment – all in an attempt to find our unique place."

Charlie Roter has worked with many major home building companies developing and communicating their company’s vision and strategy through training, positioning, branding, and associated growth initiatives. Customer focused, Charlie believes in setting strategic direction and helping sales teams and sales managers learn and grow. Charlie brings a very unique style to his teaching, a style that is based in understanding and giving. Attend a Charlie Roter seminar and he will change the way you sell because he will change the way you look at selling. Charles L. Roter & Associates LLC
buildingresults@charlieroter.com CharlieRoter.com 719.205.1385

SEEING IS BELIEVING. Eliminate the doubt. No matter what the market conditions may be, a community’s success ultimately relies on the quality of the sales agents. Video Profiles from LeBlanc & Associates capture each agent’s sales presentation, the good and the not-so-good, through the eyes of the buyer.
TRAINING. Using a Video Profile from LeBlanc & Associates of you best agent(s) demonstrates what you expect from the rest of the sales team. What better way can an agent learn than from the best of their peers? The training aspect is then reinforced with our self-evaluation guide.
TECHNICALLY SPEAKING. To maintain the highest quality of final product, all our work is done in-house. Our clients receive two DVDs of each sales encounter and have the option of either a fully processed or non-processed format.
QUALITY. LeBlanc & Associates is established as the premiere company for sales agent evaluations. Our business is your business . . . new home sales. Our high level of training for our field techs provides the best capture rate of your agents. We know you are paying to see your agents – not the walls and windows of your sales office.
WHY LEBLANC & ASSOCIATES? Have you tried the rest and found ill prepared field personnel? Have you seen more walls than agents? Do ceiling shots make you dizzy?
THEN BE PREPARED FOR THE BEST. GIVE US A CALL!
LeBlanc & Associates
800.838.1779
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