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We all know that sales agents in any industry are charged with the task of moving product. We also know that good sales professionals do not happen by accident. They achieve excellence through diligence and hard work. Sales professionals should also know that selling is not like a game of darts where you feel good if your dart lands anywhere the board and on the rare occasion when you hit center, it is celebration time. People who consistently hit the bull’s-eye don’t do it by chance.
In our industry, the good agents know that one of the key components of a successful sales presentation is a solid discovery and qualification process. Part of learning about our buyers is determining their motivation for being in our sales center. And dovetailing with motivation is the incentive to act. Not conducting a sufficient discovery and qualification process equates to consistently hitting the rim of the dart board. That is not a winning strategy.
Let’s take a look at each of these components.
Motivation is what drives all of us to do something. What motivates us to sell homes? Build homes? Play in a band? Run in a marathon? In short, it is the causal factor. Whatever the action, there has to be a driving reason behind it. The reason could be something as simple as we just want to do it. Or it could be more complicated such as fulfilling expectations, egos, ambition, etc. While some general basics apply to all people, motivation is also personal and unique to each of us.
While reviewing our video and audio shops, it troubles me that most agents never determine why a prospective buyer is in their sales office. Sure, they are looking to purchase a new home. But agents don’t probe for the why factor. Why your community? Why your location? Why not other homes or communities? For the most part all I hear agents ask is ‘what brings you out today?’ Falls short doesn’t it. Without probing deeper into a prospective buyer’s motivation, how can an agent match their product and community to the buyer’s driving needs and desires?
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The incentive for a buyer is tied very closely to motivation. While motivation is our reason to do something, the incentive is the reward to take action. For example, I am motivated to start a new exercise program to look and feel better. What is my reward? A new wardrobe! We know today’s buyers are looking for incentives (freebies from the builder or lender). But usually there is more to the story.
When an agent has a motivated buyer in front of them, they need to move that buyer from the motivational stage to the reward stage. The reward is the buyer believing he/she has now found the ‘it home’ . If the home feels right and makes sense, now they can take action, i.e. purchase.
Buyers look at a lot of homes…new, resale, short sales, etc. and for the foreseeable future, they have a smorgasbord of homes to choose from. Therefore the agent needs to determine what about their product and community will entice the prospective buyer to commit to what they are selling.
The sales professional is charged with directing that buyer’s action. That is achieved by creating a compelling reason to make a purchase commitment and convincing the buyer that purchasing your product in your community is their ‘it home’. An agent can not do that unless they know who they are selling to and what they are selling against. Only then will the buyer be motivated to say, “This is it!” And for the agent, Bull’s-eye!
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Our Kudos to the following sales professionals who demonstrated excellence in sales this past quarter. Each of these sales professionals scored in either our Excellent or Superior categories.
Sue Rohland
K. Hovnanian
Sue provided her prospective buyer with an exemplary sales presentation. While excelling in all aspects of her sales presentation, Sue’s strongest asset is her closing abilities and her ease of asking for the purchase commitment.
Tina Flournoy
Taylor Morrison
Tina offered one outstanding sales presentation. She demonstrated enthusiasm, rapport building skills, excellent discovery and needs assessment and in short, assumed the sale. Tina was organized and focused as she quickly narrowed down what the buyer was looking for. By learning about the buyer’s interests she was able to incorporate them into a desire to live in her community.
Elizabeth Rhee
Taylor Morrison
Elizabeth achieves excellence by establishing the benefits and value of home ownership. Additionally, she obtains her buyer’s personal involvement in the home. Her use of benefit language was superb and she created a reason to buy one of her homes.
Dave Christensen
Taylor Morrison
Dave demonstrated a thorough and organized sales presentation that was personalized to his buyer’s needs. He created a sense of excitement and value in his product. Dave is to be commended for offering a high level of service so his buyer could make an informed purchase decision.
Mike Collins
Taylor Morrison
Mike is another agent who offers a high level of service for his prospective buyer. He excels at interacting with his buyers through a relaxed and comfortable selling environment. He demonstrated knowledge, confidence, enthusiasm and sincerity….all essential to achieve excellence in sales.
Gloria assumed the sale. She established value in her product and was not afraid to use urgency to progress the purchase decision. She conducted a superior product presentation of both the model and production home. Beyond explaining the standard and upgraded features, Gloria sold benefits as well. She involved the buyers in their new home selection and expertly created visuals in each area of the home.
Cleo Nudegger-Tekell
Toll Brothers
Cleo demonstrated an organized and thorough sales presentation. Cleo also was not afraid to use urgency to obtain a purchase commitment. She created value in her product and asked for the sale.
Johnna Harrison
Toll Brothers
Johnna demonstrated a thorough discovery process that enabled her to offer a focused and personalized sales presentation. She controlled the direction of the encounter, listened well, and she directed her buyer to a home that met her specific needs.
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1. You don't cutback sales when sales are slow, otherwise sales, will be slow. You will create self-fulfilling expectations.
2. You increase your marketing efforts on the Internet (not expensive)
3. List your homes on the Internet. Check out 50 places to list your homes on the Internet.
4. You increase social networking (not expensive). You just need to take the time to do it.
5. You need to track your leads and follow-up more than ever.
6. You need to know what your salespeople are doing with their leads. If they don't follow-up, you need to.
7. Salespeople need to work more hours than ever now, and spend evenings on the phone.
8. Have your salespeople mystery shopped.
9. Do an analysis of what it costs you to get "one" suspect. You can't afford not to follow-up.
10. You need do more e-mail marketing and have a good system to do it. Be able to track who opens the e-mail and who doesn't, etc.
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11. You need to develop a strong customer relation's program. Referrals are your best lead source. If you are not in touch with your customers on a regular basis now, don't call and ask for referrals. It's not the best approach. There are ways to bridge into that.
12. In most cases you don't need more leads, just work the leads you have better.
13. Salespeople need to ask for the order.
14. The market is opening up: not a time to cutback. Review your sales and marketing budget. Reallocate the funds to areas that are more productive.
15. Spend money on training.
16. Participate in Webinars.
17. Time to get rid of those salespeople that are cruisers and strugglers; they are not going to make it in this market. They are missing the buyers, and are costing you more money than you can image.
18. Institute a public relations campaign, promoting your business.
Looking for tips on how to sell more homes? Tune in www.BuilderRadio.com. They provide weekly interviews with some of thetop sales people, pros and consultants in the housing industry. Youcan listen to the 25 to 30 minute interviews via audio or download theoverview. Ideal for training and sales meetings, over 100 interviewsin the archive files to pick from. Also available on I-tunes.
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To many builders, Realtors seem be to an expensive way to market and sell their homes. To many Realtors, selling builder’s homes seems to be more hassle than marketing used homes. In reality, and with a little planning, builders and Realtors can form a synergy that can make them the best of friends.
Realtors - A builder’s best asset
“The Realtor is really a new home sales representative’s extended sales staff. There are infinitely more Realtors out there than there are any of your other referral sources. In a typical submarket, there are probably 500 licensed Realtors. Those people have a real incentive to sell homes continually because they are on straight commission. So, it costs you nothing to keep in touch with them and to develop relationships with the best ones - the 20 percent or so that have real sales skills.
The bottom line is that Realtors can help us solve that age-old stall, ‘Well, we have to sell our home before we can buy yours.’ They’re also master net workers. In fact, if you look at the national statistics, over 50% of all new construction is sold with some sort of Realtor involvement.”
Why uninitiated Realtors avoid builders
Here are the top 5 responses:
1. Fear of losing control of the client. “Realtors are told that they have to ‘marry the client’ and not muddy the water by turning them over to a new home sales agent. It takes come confidence-building between the onsite sales agent and the Realtor, because we’re both trying to do the same thing - make a profitable sale for the builder. We need to work as a team and not be at odds.”
2. Inflexibility on sale price. “New home builders have to price their homes competitively with resales, but their working on an average net margin of just 2.7%. Realtors need to understand that builders just don’t have the margin for flexibility that resales have.
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3. Long delays in receiving commissions. “A lot of the entrepreneurial builders have solved that problem by going ahead and advancing commissions up front at the time of the contract.
The Realtor shouldn’t have any problem, but not all builders have learned how to do that.”
4. They don’t know how to sell off of blueprints. “Realtors are accustomed to dealing with tangibles see, feel, touch. In new home sales we simply don’t have the inventory; we have to sell the dream and build the home in the mind of the buyer. Realtors must learn how to make the blue prints ‘talk’ to the buyer.
5. Incompetent builders or reps. “We have to admit that builders have as many incompetent sales agents as there are incompetent Realtors,” says Fiehn. The trick is to find the good ones, and it seems the best builders generally find and attract the best Realtors.
Why top Realtors love selling new construction
1. New Home Warranty. “That’s the most powerful selling tool for people comparing new construction to resale.”
2. Rapid appreciation. “New homes appreciate faster in equity than the resale, particularly during the first five years.”
3. New objections. “It doesn’t smell like wet dog. It has that new home smell of fresh paint and new wood.”
4. Fresh choices. “People don’t have to worry about changing out the old appliances or carpet; they can often choose what they want before it’s installed. A new home is clean, fresh and a pleasure to show.”
5. Energy Efficiency. “The latest technology in green building and energy savings is built into today’s new homes. Buyers realize that the new home is going to be less costly to operate in the future than older homes, even those just a few years old.”
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Rules of Engagement
1. Find and court the top selling Realtors and their broker. “I like to start from the top down. I like to find out who the best selling agents not listing agents are and approach them and their broker jointly.”
2. Educate new Realtors as to what you have to offer. “Show them the advantages to working with new home sales, because they don’t get that in real estate school.
3. Treat Realtors as part of your extended sales team. “Get their email and send them updates, but make sure you understand what kind of updates they want and how often as individuals. Don’t try to send blanket communications; treat them with the same respect you would a client. Use the phone.”
4. Don’t try cheap tricks. “Don’t throw money into outlandish incentives to Realtors; it actually will alienate the ‘super-pros.’ Remember, on the face of the contract we have to show commissions paid to outside brokers. Savvy buyers won’t flinch at a 3% commission, but you start throwing in incentives and discounts to outside agents, that throws up a red flag to smart buyers and it can work against you.”
5. Make every sale a Big Deal. “Use a little showmanship. Instead of mailing their copy of the sales agreement to the Realtor and broker, deliver it by hand. Walk into their office with a logo cup from your building company filled with Kisses and with a helium balloon tied to it imprinted with ‘We love our Realtors!’ Make it a Grand Event. All the other agents are going to see that balloon flying around and will want to get with the program.”
However you do it, forging strong relationships with top-selling Realtors just makes sense. And, in today’s market, can’t you use as many ‘feet on the street’ as you can get to market you homes?
Contact Roger Fiehn at www.rfiehn.com

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- T'was the week before year end, when all through the sector
- Not a sales pro was happy, not e'en the Director.
- The drywall had been hung by the chimney with beer
- In hopes that the painter would not soon be here.
- The punch men were nestled all snug in their Fords
- With visions of plumbers who were out of their gourds.
- The moon on the pile of the approved, scattered plans
- Gave a picture of sadness round the blue Sani-Kans.
- The year that just passed had been one of the worst.
- Aside from decorum, Sales just might have cursed.
- At start of the year no one would make a guess
- That the year just now ending would be such a mess.
- The super in his Levis and "Sales" in Hugo Boss
- Had just roasted each other for a net fiscal loss.
- When out on the lot, there arose such a peal
- "Sales" sprang from his Beemer to see what's the deal.
- Away from its leather he jumped like a doe
- Tore open the door, and threw up the Merlot.
- When what to their anxious eyes should be viewed?
- But a builder's salvation, it must be St. Dude.
- With a long repertoire of war stories and tales
- They welcomed the Saint of new-home-lost-sales
- "Save Richmond, and Ryland, and Shea, Beazer,
- Laing And Lennar, and Centex, and Pulte." they sang
- And then in a twinkling they heard on the site
- Dude's yearend synopsis, and oh what a fright.
- "Performance to date has been such a shambles
- Twelve months ago, no need for such scrambles
- This entire year, disrespect for the buyer
- Now with days left, you are down to the wire.
- "Your bankers are watching all full of concern
- Considering homebuilders, will they ever learn?
- Stockholders are looking, their eyes wet with worry
- And vendors expect funds in more of a hurry.
- The buyers are nestled all snug in their bed
- To them, warranty work seems a matter of dread.
- "The cities approve at the pace of a snail
- NIMBYs, they always want you to fail.
- "As your patron Saint I am here to make certain
- The American Dream faces no final curtain.
- Your chosen profession is no easy vocation
- I grant you one more year's duration
- But blessings for you require new behavior
- Embrace these ideas from your patron and savior:
- "Become user-friendly this upcoming year.
- Redraw sales agreements to eliminate fear.
- Extend your hours to accommodate buyers.
- Accurate prices in each of your flyers.
- Driving directions in each and every ad,
- And be co-op friendly, make Realtors glad.
- "Sales agents to ask all the customers' names,
- Not spending such time on Internet games.
- "Construction crews to clean as they go.
- Music volume, if any, should be kept on low.
- No dogs or ex-spouses to disrupt the pace.
- At every chance, put on your best face.
- The streets to be swept as if someone cares
- Prospects will notice. See how it fares.
- "As for drinking on site, there can be no excuse:
- No sauce for the gander, no sauce for the goose.
- There is no right way to do wrong things
- Sensitivity counts, whether commoners or kings.
- "Upgrade all your training, and not just your specs.
- Inspect what you expect, then expedite those checks.
- The goal of the crew is to go extra miles
- Measured in currency of customer smiles.
- "Too often your focus is to tasks, not the goal,
- Taking parts of the picture and not of the whole.
- A buyer's sole wish is family refuge at home
- Not reading page 80 of your boilerplate tome.
- Remember it always, they just want to OWN.
- Easing the process is the builders' job alone."
- Saint Dude then sprang to his feet and opined
- "If you honor that promise, no need to remind
- Of the rewards, financial and buyer satisfaction
- Of stockholder, lender, and vendor reaction.
- As your Patron Saint all that I ask
- Is one hundred percent toward next year's task.
- Give the customer quality and not attitudes;
- Give your partners respect and not platitudes.
- "Put yourself always in the shoes of the others,
- Try to say yes, when given your druthers.
- Saint Dude then prepared to say his good byes
- He secured his halo and ascended the skies
- His visit had been timely, his message compelling
- Of designing, and staffing and building and selling.
- And they heard him exclaim as he rose in his contrails
- Seasons greetings, dream builders, and to all more "good sales!"
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, Hong Kong 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
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- 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?
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- THEN BE PREPARED FOR THE BEST. GIVE US A CALL!
- LeBlanc & Associates
- 800.838.1779
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