VanEd Newslog

Q&A with Jennifer Allan - How to Compete with a Minimum Service Real Estate Company, Part II

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and other industry media outlets. 

“Dear Jennifer,

“I seem to be competing with flat-fee or minimum service agencies more and more these days. I understand the appeal of such arrangements to an equity-poor seller, but I’m having trouble explaining why a seller might want to consider a contingency-based agreement, even though on paper, it appears to cost significantly more.

When the seller says something along the lines of: ‘I'm sure you're worth your fee, but I simply can't afford you,’ how can I respond?”

JENNIFER’S RESPONSE:
First, as I discussed in an earlier Q&A, you should never argue with a seller about your commission or your value. Arguing makes you look insecure and somewhat desperate. And it doesn't work. So don't do that. Neither should you put down your competition - that will only subtly criticize the seller's judgment; after all, he chose to consider going to minimum service route.

But how about saying something like this?

"I hear ya and I understand. You have a tough decision to make. On one hand, you can pay this other company a much lower fee upfront and hopefully retain more of your equity. On the other hand, you can hire a full-service agent, whether it's me or someone else, and due to the increased exposure and marketing expertise, you might end up with even more of your equity. Either way, there's no guarantee that your house will sell for what you need it to. I'm sure you'll make the right decision. Do you have any questions for me that might help you in making that decision?"

The fact that you're sitting there in the seller's home means that he hasn't ruled out paying a full-service company. In fact, he probably wants full-service; he's just not convinced of its value. But if you first show him that you care about his situation and you trust his judgment, he'll probably give you the opportunity to persuade him.

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

Q&A with Jennifer Allan - "How Can I Compete with a Minimum Service Real Estate Company?"

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and other online media outlets. 

"Dear Jennifer,

Lately I am running into sellers who "have to get every nickel out of their home." They ask me if I’ll reduce my commission because there are other agents in my market who will list their homes for a flat fee. I find myself talking too much, trying to defend my commission and how hard I work for my sellers.  I argue that in this slow market, sellers need an agent who shows up every day with a strong marketing plan and a commitment to see it through til the end.

How can I convince a seller prospect that I cost more because I’m worth more?”

JENNIFER'S RESPONSE:
Well, as you're seeing, defending your commission isn't working. Arguing isn't working. What does work is a quiet confidence that you are TRULY worth your fee. Not because you need it and not because your broker doesn't allow you to charge less, but because you bring that much value to the table. You must know this yourself before you can convince anyone else.

You may not be doing a good job communicating that confidence to the seller. You don't communicate confidence with arguments or graphs or charts or lectures. You do it by walking into that appointment with a sincere desire to help and the knowledge that you can help. Not as a salesperson trying to "win" a listing, but as an expert advisor who is very likely the best (wo)man for the job.

I'm sure you've heard the old adage - "People don't care how much you know until they know how much you care." If a seller feels you are there in his home to truly help him, over and above your desire to get that agreement signed, he'll be much more willing to trust you. And once he trusts you, he'll be more open to hearing about why you're so wonderful. But you can't actually tell him you're wonderful, you have to show him.

How?

By knowing your market cold and being able to discuss it intelligently and calmly. By letting him do most of the talking and really listening. By having a plan to sell his home that is thoughtful and personal to him and his situation.

This may sound a little vague, but it's an attitude shift that is truly magical once it clicks. In short - as soon as you go into defense mode, you've shot your credibility.

Stay tuned for more tips on defending your commission!

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

CAR and Fox 31 team up for Carbon Monoxide awareness campaign

The Colorado Association of REALTORS^®and KDVR Fox 31 teamed up to create public service announcements in an effort to bring awareness and education regarding the dangers of Carbon Monoxide. There are three PSAs that are currently running on Fox 31. We encourage you to link to this video on your website and to show it to your customers and clients.

 

Q&A with Jennifer Allan ~ Listing Exclusions

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is a regular contributor to Realty Times and RE/MAX Times. This week she answers the question of whether or not to agree to a "listing exclusion."

Question: "What if the seller asks for a 'listing exclusion?'"

JA: For those who haven’t encountered a “listing exclusion” yet, it’s simply a request from a seller that if a certain person or persons buy the home after it goes on the market, your listing commission won’t apply. For example, perhaps the seller knows a guy at work who says he’d be interested in purchasing the house, but he’s still thinking about it. Your seller doesn’t want to wait for him to make up his mind to go on the market, but neither does he want to pay you if the guy actually ponies up. So, the seller asks you to “exclude” this particular person from your listing agreement.

Should you do it?

My advice? Sure. Don’t argue, don’t explain, and don’t make a big deal out of it. Write in the exclusion and get on with putting the house on the market. The chances that this guy is actually going to purchase the house are slim, but if he does, the seller will probably need your assistance to get the contract written and to closing. For which you most certainly may charge a reasonable fee.

No reason to go to battle over this. Save your energy for bigger things!

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

ENERGY STAR® Summit set for December 9th in Denver

The 2009 ENERGY STAR^® Summit is the fourth annual hosted by the Smart Energy Living Alliance^®. The event will be held December 9th, 2009 at the DoubleTree Hotel Denver at Stapleton. There will also be the first annual awards dinner following the event. The event will have four learning and education tracks running throughout the day that will focus on;

• Existing Home Performance
• New Homes
• Advanced Building Science
• Multifamily Housing

There will also be a pre-summit home tour and dinner on December 8th. This event will be a tour of a Platinum LEED Home (PLH) in Centennial, and will demonstrate that a holistic approach to building science using a clear roadmap and coordinated execution with ENERGY STAR^® programs provides a competitive advantage. 

Learn more by visiting http://summit.smartenergyliving.org/, or Register online today by Clicking Here

Congratulations to the 2009 Good Neighbor Awards Winners

At the General Session this past week at the NAR Conference, The 2009 Good Neighbor Awards winners were recognized. These REALTORS^® have made an extraordinary commitment to improving the quality of life in their communities through volunteer work.

REALTOR^® Magazine has sponsored the Good Neighbor Awards since their inception in 2000, and each of the past 10 years five winners receive $10,000 grants for their cause.

Visit http://www.realtor.org/GNA to read the stories of this years winners, and congratulations to each of the following 2009 winners (listed below) from all of us at VanEd.

Greg Adamson - Cindy Johnson - Helen Marotto - Regina Ragon - Samuel Thomas

Affiliate Spotlight: $2 Million in Commissions Paid and Growing!

Entrust New Direction reports that over $2 Million in commissions have been paid to real estate professionals who know about self-directed retirement plans have been brokering deals involving IRAs purchasing or selling real estate for their clients. Entrust New Direction has overseen over 900 real estate transactions for clients. Self-directed plan administrators like Entrust New Direction are not allowed to give investment advice, make recommendations, or sell any products.

“Being a marketing person, our limitations put me in an awkward spot at times. Potential clients call, are excited, and want to know how to find that first piece of real estate for their IRA. I can’t help them with that. That’s why we spend so much time building relationships with professionals who can,” offers Marketing Coordinator, Amy Sheflin.

“The key for professionals is just letting clients know that they can make these investments and then following up with listings of available investment properties. Knowing how to analyze the investments for the client’s retirement plan is key. This education can be a cornerstone to building sales and catering to investor clients.”

Many professionals are just starting to realize what this growing market of investors could mean for their business. Entrust New Direction continues to try to reach these professionals through continuing education and other events in the metro area and teach them how to use the tool to build sales. Entrust offers education both online and in their on-site classroom and has several events planned for this fall. For a full list of upcoming events, visit www.NewDirectionIRA.com.

Agents and brokers can take the MRE approved course online through Van Education - register online at http://www.vaned.com. Entrust New Direction will also be the featured course author in VanEd's booth at the Colorado Association of Realtors convention in Colorado Springs from 11:30am - 2:00pm at the Broadmoor on Monday, October 19^th. Stop by the VanEd booth to say hello!

Two follow-up classes are planned after this event and qualify for 2 hours of Continuing Education credit. The Introduction to the Real Estate IRA offers an overview of how it all works and how professionals can incorporate self-directed investment tools into their business to help sell properties. It will be offered on October 28^th from 8:30am – 10:30am and again on November 12^th again from 8:30am – 10:30am. Both classes will be held in Entrust New Direction’s classroom, registration is available online by clicking here.

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.

Q&A with Jennifer Allan - Do I really have to do an open house?

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.

Question: "Everyone knows that open houses aren't likely to sell the house. Do I really have to do one?"

JA: I think so, sorry. For many reasons, not the least of which is that your seller expects you to and any attempt you make to talk him out of it will make you appear, um, lazy. Even if the seller agrees to your face that open houses are a waste of time, inside he's wondering if you're really as committed to getting his house sold as you say you are. Open houses are one of the most visible things we do as real estate agents and a very easy way to keep a seller happy. Conversely, refusing to do one is a very easy way to make a seller UNhappy!

Here are three other reasons to hold your listing open, at least once:

1. You can gather feedback from the public to share with your seller,
2. You'll become more familiar with your listing and might notice features (or challenges) you didn't see before,
3. You might sell the house. You never know - but it's not as if you holding an open house will HURT your chances of getting it sold!

So, yeah, I think you oughta do it. What's the worst thing that could happen?

Jennifer will be presenting "Selling to your Sphere of Influence" next week at the CAR Convention. Click here for information.

Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.  

CAR convention and expo - REALTOR® World - October 19th - 20th

Scheduled for October 18th - 20th, 2009 at the Broadmoor Hotel in Colorado Springs, the annual CAR convention and expo - REALTOR® World - includes FREE registration to both the CREC Annual update course and a New Colorado Contracts course. The two-day exhibit hall and more than 35 education sessions highlight the annual conference (pre-registration is a must!).

Attendees will also have a chance to win the $1000 grand prize sponsored by Metro Brokers at the Exhibit Hall Oktoberfest on Monday night! The annual association business meetings will follow the conference and expo on October 21st and 22nd.

VanEd is proud to be an exhibitor at this years CAR Conference and Expo, so make sure to stop by and see us! There are also affordable hotel options available. Check them out by clicking here, and we'll see you there!

Click Here to view the entire REALTOR® World Schedule - or Click Here to register online!

2009 Boulder Valley Real Estate Forecast coming in November

The Boulder Valley Real Estate Conference and Forecast is being held at the Millennium Harvest House Hotel Thursday, November 19th. The conference will consist of a four part program that will look at the real estate economy in Boulder County as well as the country on the whole.

Topics being covered will include current banking and credit issues, demand, and Green issues and how the growth of the Green industry will benefit the local economy. The schedule again includes an update on what to expect in the year ahead.

Van Education Center will be providing 4 hours of continuing education credit to those Real Estate professionals who attend the entire program. Registration for CE will take place on site. To register in advance to ensure your seat at the conference, Click Here or click the link below for more information.

http://www.fallrealestateconference.com/