7 New Home Closing Experts Share Their Best Closing Strategy

Here’s  a quick read with 7 ideas you can use to help your closing process today!

Happy Selling

~Rick

http://www.housingzone.com/probuilder/article/CA6718962.html

Wondering How to be a “Hall of Fame” Home Builder, Remodeler or Realtor? Why Not Copy How a REAL Hall of Famer did it…

I caught a radio interview with John Randle the other day- a former NFL defensive tackle that was just voted into the Pro Football Hall of Fame.

With everything John had to go through, he never should of played in the NFL. Yet in 2010 he was voted, by his peers, as one of the best players to EVER play the game.

I couldn’t help but see the similarities in his story- with what we as home builders, Realtors and remodelers are up against on a daily basis.

There’s a few lessons we can all learn from John. Maybe you too can create a hall of fame business- against all odds.

~Rick

This was told to the 244 pound defensive tackle John Randle in 1990 at the Minnesota Vikings training camp by a coach.

John’s story starts in the little  town of Hearne, Texas- population 150. He was a self-proclaimed poor country kid that had to hitch hike home from practice every day.

He attended the small division II school of Texas A&I where he ALMOST went completely unnoticed.

After he went undrafted, a Minnesota Viking scout remembered catching one of his college games and invited John to attend training camp as an undrafted free agent.

The first thought on John’s mind was trying to last the entire 2 week camp. But as camp progressed he was overwhelmed by the chance to show the pro’s what he could do.

That chance was all he needed and John earned a roster spot on the team. He played in all 16 games his rookie year and earned a starting spot the following season.

After an injury sidelined him for part of the 1991 – 1992 season, John went on to play in 183 consecutive games. Over his 14 year career he amassed 137.5 sacks- tied for the number 6 most sacks of any NFL player.

Always Behind the 8 ball

Every game John played he was undersized. Just like every day you look for business- unemployment, low consumer confidence and tight credit are bigger and stronger than you are.

John developed 4 strategies to cope with his “market” and become one of the best to ever play the game…

Strategy #1: Leverage Your Coaches. A big heart and great attitude will only get you so far. John credits his coach’s for teaching him techniques that allowed him to stand out. He came in early and stayed late at practices- always looking for an edge.

I’m sure you work hard. But are you working smart? Are you leveraging the people in your life- or bringing others into your life that can give you that extra edge?

Strategy #2: The Law of Focus. John wouldn’t talk to his teammates before a game. He wouldn’t shake hands with any opposing players and he was superstitious. He had the same pregame rituals that HE felt gave him an edge.

Are you focusing on the activities that will bring your next buyer in the door? Or are you spending time doing things that are no longer relevant in this market? Everyone has the same amount of time in the day. How are you spending yours?

Strategy #3: Have a Secret Weapon. Speed was what John was known for. But he’ll tell you  what made him great was his hands.

“I used my hands to make sure guys couldn’t block me,” he said in his interview. “Nobody was expecting that.”

What do you do for your prospects that your competitors won’t do? How do you differentiate? Every owner and salesperson needs to push themselves to where they are uncomfortable.

You must constantly be developing your own secret weapons.

Strategy #4: What are You Saying? John was infamous for his “motor mouth.” He would study his opposing players and find out as much personal information as he could.

On Sunday he had his scripts all ready to go…

“I used trash talk to get into people’s heads and make them overplay, ” John commented. “One game Trent Dilfer was thrown out for beating on my chest because he was so upset at what I was saying to his offensive lineman.”

Now more than ever you need a carefully crafted verbal presentation. And it’s changed over what you needed just a few years ago. Many salespeople lose opportunities not because of outside forces. They lose buyers because they don’t pay attention to what they’re saying or asking.

It all comes down to objections…

During the radio interview John described how he got into the NFL. “Some guys get there in a limo. Some guys take a bus. I happened to walk.”

You’re just a country kid…

You didn’t go to the right college…

You didn’t get drafted…

You’re too small to play in the NFL…

These are nothing but objections. John learned to deal with them. And you can deal with the objections of the moment too.

You just need a big heart. The rest is easy…

Happy Selling!

This Tuesday February 9th from 12:00 – 12:45 CST (1:00 – 1:45 EST) I’ll be talking with Marie O’brien of Blue Tangerine Solutions as part of their “Ask the Experts” series about how to stimulate your sales in 2010.

You can use this link to register (there is NO fee)

https://www2.gotomeeting.com/register/753470490

The program we’ll be discussing is called 6 Secrets to Maximizing Your Sales in Any Market Revealed. It’s an UNCONVENTIONAL approach at marketing and selling new homes and design/build remodeling.

First of all- We’re NOT selling ANYTHING at this program. AND everyone that attends will be able to download a summary of the program- at NO cost. Plus you’ll have an opportunity to ask questions and offer your opinion.

We WILL uncover the most common mistakes builders and their salespeople are making today…and how you can avoid them.

We’ll talk about…

• What you’re doing wrong with your marketing approach and how to correct it

• Why relying on a sales process that worked during the last recessions WON’T WORK.

• Why 99% of home builders are looked at as all the same. What you can do to stand out to today’s consumer

“Thanks Rick. With your new ideas we’ve adjusted our attitude and will create some new opportunities.”
-Mark Williams, Mark D. Williams Custom Homes

We’ll be discussing REAL WORLD strategies, from the trenches, that are working in markets that are down 85%+ from their peak.

And I’ll even take a stab at predicting how builders and remodelers will need to evolve their sales strategies as the decade progresses!

Warning: This will not be more of the “been there heard that” from sales trainers and marketers that think the answers to today’s market is what worked in the past.

If you don’t want to be challenged with NEW IDEAS and a fresh perspective on the housing market- avoid this webinar at all costs!

If you are ready for something different…Get yourself signed up and hold on to your seat! Remember- there’s no cost but it’s this Tuesday only.

Register here>>

Realtors® and Home Builders: If You Knew a Sure-Fire Tactic to Generate More  Sales- Would You use it?

I’ve been teaching quite a bit of real estate continuing education of late and have noticed there is still a HUGE chasm between Realtors® and builders.

So here’s the questions…

How can Realtors® leverage builders to increase their business in 2010?

How can builders increase their co-op Realtor® sales?

Building relationships with Realtors® and builders is the fastest, easiest way to build your business. Here’s how to do it.

~Rick

Cracking the Realtor®/Builder Code

Every time I teach a real estate continuing education class I always ask this question…

“How many of you derive 5 – 15% of your income from representing buyers in new home sales?”

The statistics are pretty consistent…about 5%!

That means 95% of Realtors® AND builders are leaving money on the table.

Here’s what Realtors® are telling me about WHY they aren’t comfortable with builders…

1. They don’t trust builders. Either they’ve been burned by a client going directly to a builder or have heard a story about it in their office.
2. They don’t understand the building process. It’s hard to admit but Realtors® don’t feel comfortable working with builders because they don’t understand the process.
3. They don’t think of it. Most brokerages don’t have a training program that deals with buyer representation in new construction. Out of sight and out of mind.
4. They don’t want to wait to get paid. Would you? Let’s see…you can sell a used home and get paid in 45 days or wait 6 months to get paid for a build. Tough choice, isn’t it!
5. They don’t realize new homes are available in the area they’re showing homes. Most Realtors® don’t realize infill possibilities exist. Most aren’t aware of remodeling options and renovation financing either.

Now I’m sure there are more reasons but these are the top 5 I’m hearing on a consistent basis.

Builders Pay Attention

Because 85 – 95% of all transactions in any particular market are used- builders need Realtors® a lot more than Realtors® need builders.

Here’s the top mistakes I see builders making when it comes to working with Realtors®…

1. Paying the builders representative a higher commission if no outside Realtor® is involved. And how is this set up supposed to foster better cooperation?
2. Making the client registration process difficult. Have registration forms available at your model, office and on your website. Phone calls are just fine for temporary registrations too.
3. Relying on the MLS for your Realtor® business. Relationships, not showings will build your Realtor® business. Remember Mr. Builder, you need them more than they need you. You have to put your best foot forward to get these relationships going.
4. Treating the co-op fee as a commission. The 2-4% you pay out, Mr. Builder, is not a commission- it’s a marketing fee. The best news is you don’t pay a dime of it unless the sale is made.
   
5. Offering to take 2-4% off the price since the buyer doesn’t have a Realtor®. Look, I work in the trenches with my clients and I know how tight deals are today. But the minute you utter these words to your buyer and they get back to the Realtor® community- it’s the kiss of death. AND think about it- unless 100% of your sales are with cooperating Realtors®, you don’t have a 2-4% co-op fee built in on every sale.
   

“So herein lies our problem- Realtors® and builders keep traditional mind sets and no new business relationships are fostered. Well, is that good enough for you in 2010?”

Fresh Opportunities for the New Economy

Realtors® and Builders can’t continue the oil and water relationships of the past. Each needs a new avenue for business and both have something the other wants.

I’ve developed a list of “best practices” for Realtors® and builders. It’s called Cracking the Realtor®/Builder Code- 10 Sure-Fire Tactics to Jack up Your Sales.

This list is based on direct feedback from Realtors®, builders and builder sales representatives.

You can download it for absolutely FREE by clicking on this link>>

What about Your Thoughts?

Am I missing anything?

What are some of the successful relationships you have fostered with Realtors or builders?

We all have our horror stories of the past but that won’t help anyone grow their business today. I look forward to hearing what you think! Leave a comment below.

Happy Selling!

“Is it the Market or Is It Me?” How to Make Maximum Sales in Minimum Time in a Battle-Hardened Housing Market

This is THE question- isn’t it?

What’s the answer?

Two remodelers and a home builder contacted me last week asking the same thing and here is the answer I gave them- one that you may not expect…

~Rick

Is it the Market or Me?

I was speaking with Mike from Michigan this morning- a second generation remodeler who does NOT operate in the Detroit market.

Mike explained his situation- a situation that may be similar to yours. His business is down over 85% from its peak. He had to lay off most of his staff and is now doing everything himself.

Mike read my blog post on the importance of appealing to women in order to increase your sales. He could relate to the mistakes I had made and now his question was, “Is it the market or is it me?”

Your challenge in 2010

Your challenge in 2010 is no different than Mikes. I’ll bet you’re operating with less staff, have been forced to cut your advertising budget and seem to be constantly competing on price.

For most of you there are less people buying, building and remodeling homes in your market. There are less builders and remodelers you have to compete with but the ones still operating are pretty darn good.

You’re probably working longer hours and making a lot less…

This still begs the question- Is it your market or is it you?

The Answer

The answer is both.

Your changing market is to blame for your sales being off (aren’t I a genius to figure that one out!). Yet, the fact that you have been relying on the market to bring business into your company is your fault too!

“Wait a minute Rick…I’m working harder today than ever before. The business just isn’t there!”

You’re partially correct. You ARE working harder than ever before but are you looking in the right places for the business?

Is it the Market?

In my discussion with Mike I asked him how many other remodelers there were in his market. He told me 2-3 (at his level) but there were also home builders that were now remodeling (surprise surprise).

I suggested he visit the building inspectors office and get a list of permits from 2009.

The first step in identifying if the market is your problem is asking the question, “IS there a market for what I am selling?”

I suggested to Mike he take a look at the type of work being done in his market.

What type of remodeling projects were people building?

How many new homes were built? Where were they built and at what price point?

Assuming there is a market for your services, the second question is how do you get MORE of it?

Getting More Market Share

Now here’s an oxymoron for you- in order to get more market share you need to focus on doing less.

What?

You read that correctly. In order to get more market share you need to focus on less.

I’m not telling you to stop what you’re doing right now. I’m playing devil’s advocate and asking (as a consumer), ‘why would I choose to have you build or remodel my home?’

Unless your company is positioned to specialize in a certain geographic area, lifestyle offering or demograhpic/psycographic profile- you’ll come across as a jack of all trades and master of none.

To use an analogy, if you just had a heart attack would you want to see a general practitioner or a cardiologist? Of course it’s the heart specialist! And was your decision based on who costs less?

When you’re company is positioned as a specialist people will seek you out for more than just the lowest price.

3 Steps to Determining if it’s Your Market or if it’s You

Step 1: Review building permits and MLS sales for your market. Are people buying what you’re selling?

If they AREN’T buying what you’re selling can you offer something different or can you move to a different geographic market where they are buying?

If they ARE buying what you’re selling but you have a low market share, go to step 2.

Step 2: Specialize, specialize, specialize! If you’re in a small market and can’t move, you may need to specialize in 2-3 things.

The key to specialization is understanding your target market’s problems better than any of your competition. More on this to come at a later date…

If you HAVE a market and are perceived to be a SPECIALIST- go to step 3.

Step 3: Focus on Managing Tasks- NOT Time.

There’s no such thing as time management. We all have the same amount of time in a day.

Because you are doing more with less, are you focusing on the things that will get you your next sale? With all the extra duties you’ve taken on, you may have lost focus working ON your business vs. working IN your business.

Most people tend to spend the majority of time working IN their business. That’s where their comfortable- working on tasks they know.

But these tasks aren’t the same ones that will bring your next buyer in the door.

What you need to focus on each day is the tasks that will lead you to your next sale.

Over the last 20 years I’ve broken down these tasks into 3 categories- Preparing, Prospecting and Presenting.

You can download “Task Management for Housing Professionals” for FREE with the link below…

Download the Task Management List Here>>

Thoughts, questions, other ideas? Tell me what you think by leaving your thoughts at the bottom.

Happy Selling!

Cheapest reliable alternative- Home builders and remodelers…pay attention. This is why your prospects focus on price.

I love the way Seth Godin thinks (probably because I try to think the same way : ). Check out his latest blog on why consumers choose the Cheapest Reliable Alternative>>

If you want to get away from dealing with the “price-per-square- foot” black hole, you’ve got to be implementing Market Positioning. Here’s an interview and short article that will help you…

Click here for the article and interview>>

You can also download a FREE report on my website by clicking on the photo

Happy Selling

~Rick

So said the radio talk show host, as he commented on the current government administrations views on pending Cap and “Tax” legislation.

No matter what your political views are on man made global warming/climate change or whatever you want to call it- are you making a big mistake in the world of marketing “green” housing?

Here’s two stories on consumer’s reactions to Green housing and the lessons learned. I hope you don’t make these same mistakes!

~Rick

I had to say “Goodbye” to a wonderful salesperson I’ve had the good fortune to manage off and on over the last 10 years.

As he was wrapping up his sales duties we discussed a job that was sold- but he was still trying to get into production.

This client struggled to make decisions. She also was very interested in building a “green” project (not a good combination).

The salesperson updated me that most of the decisions had been made and the job was about ready for production. I asked him if the homeowner was still submitting the project for the Green designation program and the answer was “no.”

When I inquired if it was because of the additional decisions required for the designation I was surprised to learn that it was not.

For her- it came down to adding things to the home she didn’t see value in…the extra price didn’t justify the return.

Model Homes

Another client just sold a model home that was built with a Green designation and entered into a home tour.

The tour generated hundreds of traffic units and the model was well publicized that it was a Green home with the designation.

The result?

Approximately 15 traffic units out of 500 previewed the home because of the Green designation.

I asked my client about the person that purchased the home. “Did they buy it because of the green designation?” The answer- a flat “no.”

I asked what the cost to add the features and obtain the designation (I know some of you reading this are thinking there is no “cost”- only an investment. I would tell you that if the buyer didn’t value the “investment” the R.O.I is zero.) About $10,000 was spent to get the designation.

The Fallacy of Green Marketing & Where You May Have Gone Wrong

Oh sure the intentions are good. The execution just stinks!

Anytime you try to use a designation (LEED, NAHB Green Building, etc.) that was defined by someone else and ask a consumer to embrace it as their own is a losing battle.

Why?

Look at it this way. The average Joe and Josephine has no definition for…

• Blower door test
  
• R-value
• Building envelope
  
• Forest Certified
• U-Value
• LEED

And the list goes on and on.

The average consumer DOES understand…

• More money in my pocket from lower utility bills
• My kids are safe and healthy
  
• I live in a clean community

Ford “gets” this. Check out how they are promoting their new 2010 Ford Fusion Hybrid>>. Compare that to how Toyota promotes the Prius…

The Answer

The answer is simple. Make Green personal. Make it tangible for your buyer. You don’t need a designation to do that. You just need to understand what is important to your buyer.

Use this link to find out how to “segment” your Green offering based on your buyer’s interests>>

Until our government and building associations understand this fact, the current designations will continue to do what they have always done…Generate interest but very little sales.

Am I nuts? Have a different opinion? Think I’m the idiot?

Tell me what you think. Post your comment below.

Happy Selling!

As a Home Builder and Remodeler- How do You Move Your Business Forward in 2010? Maybe it’s Time for a New Hammer

No I’m not talking about MC Hammer (but how about those pants)!

Can't Touch This!

It’s getting to be the time of year to look back on 2009 and put together a strategy for 2010.

I hear the same old arguments from people who have ‘been through this before.’ I’m not so sure what worked in the past is the answer to our future.

Here’s an alternative “hammer” you may want to consider to finally beat this housing market….

~Rick

My wife tells me I’m the “ultimate planner”. I tell her she’s the “ultimate live in the moment person.” I guess that’s why we’re good for one another.

A couple of days ago “the ultimate planner” was lying in bed contemplating the future of housing? Specifically asking…

• How will this recession effect people’s behavior as it relates to housing? As it relates to purchasing behavior in general?

• Where are the opportunities today and 3 years from now?

• How will government continue to effect housing in the future?

• If I were a home builder or remodeler what strategy would I employ moving forward?
  

These are not easy questions- nor are they answered in a day. But I have this gut feeling that our industry is still going in the wrong direction.

Specifically- were still trying to use the same old “hammer” to shape the future.

Hammer Time

This morning I received a blog from Seth Godin titled, “Hammer Time” (thanks for letting me borrow the title Seth!).

You can see Seth’s Blog post here

Here’s an excerpt from the post…

“When the market changes, you may be seeing all the new opportunities and problems the wrong way because of the solutions you’re used to. The reason so many organizations have trouble using social media is that they are using precisely the wrong hammer. And odds are, they will continue to do so until their organization fails. PR firms try to use the new tools to send press releases, because, you guessed it, that’s their hammer.”

To summarize the blog- we (companies) are still trying to use our “hammers” (solutions) that we’ve always used.

Build a Better Mousetrap

So what is the contractor’s solution? Build a better home of course. That’s what we do.

We focus on better…

• Home Design
• Products/features
• Built Homes (Green)
• Sticks and Bricks!
  

Now I’m not saying these things aren’t important- they’re incredibly important. I just don’t believe they are at the top of your prospect’s mind.

What IS at the top of your prospects mind, without a doubt, is their own reality- their own problems. Until they feel you understand these problems better than anyone else and can provide a one-of-a-kind solution, they won’t buy from you.

Could it be that your product (hammer) of the future will NOT be the homes you build and remodel….

Rather, you’re product will be your actual customer

What if you spent as much time trying to understand what was going on in the head of your next customer as you did designing & building your next home?

How would you change your approach if you know the intimate details in the mind of your prospect?

My grandparents lived through the depression and I grew up watching how they, along with my father and uncles, were fundamentally changed for the REST OF THEIR LIVES because of it.

How will the current recession affect the housing decisions of the current and future generations? How has it affected you?

Maybe I’m completely wrong but I’d love to get your take on this topic.

Do you think our hammer for the future is the homes we build and remodel or is it something else?

Please post your opinion below (and don’t sugar coat it!)

Happy Selling!

Ask Rick a question and he may feature it in an upcoming issue of Coach’s Corner>>