From RealSource... Glenn's Blog

Just a quick thought this morning about how even the smallest of details can change the big picture.

For instance, the old story goes that back in the days of the telegraph, a man traveling is sent the following telegram from his wife...

NOT GETTING ANY BETTER, COME HOME AT ONCE.

The telegraph office, however, misplaced the comma and the man received this message...

NOT GETTING ANY, BETTER COME HOME AT ONCE.

May your day be great and your commas well placed!

Our businesses have an in-house business mentor. 

A retired, savy businessman that built his business from scratch and sold to a multi-national conglomerate.  He does not know all of the things our businesses do but he can read a balance sheet and business plan and tear each apart if it does not work.  He has investment properties and understands money in a way we can all dream about. 

So, here are some tips from him you might find useful, even if you already know them.  We sure did.

"Find people you can do business on a handshake.  Then do the paperwork because no one's memory is very good."

"It's not about the numbers alone.  It is about the relationships first."

"If you don't step up and lead your employees, you'll all be looking for work."

"Get to work."

What is the cost of our in-house mentor?  A desk and chair, a phone, access to the building at any time,  Internet access and the okay to call us out on crap we need to stop doing so we can make more money and build better business relationships.  His schedule is his own and we are glad he shares it with us!  And even more so, we are glad he calls us "friend."

For Good or Bad, Our Behavior becomes Our Reputation.  As much as the marketing world wants us to believe we can all spend enough money to define and promote the reputation we want others to know us by, it is not that simple. 

In high school one long ago Fall in Bear Creek, Alabama, a classmate went on and on to the coach about all he was going to do to prepare for the upcoming basketball season. 

Note, it was not what he had done yet (which he could have done all Summer).  Instead what he was bragging he was going to do. 

Coach Roberts listened calmly, then replied, "Don't tell me, show me."

Actions speak louder than words.  Cliche' but true.  You already know that.

To expand that concept, I submit that Many Actions Speak Much Louder Than Other Actions.

For instance, which are you known for....

• Selling houses... or helping people find the right house?
• Finding a mortgage... or finding the right mortgage?
• Listing houses... or remarkably promoting your listed houses?
• Showing houses you listed... or showing houses that fit the buyer best?
• Learning about the client's needs and goals as you show houses... or before you show houses?
• Doing whatever the client asks... or finding out what the client really needs?
• Acting professional... or being professional?
• Great talker... or great "doer?"
• Nice person... or great, polite, effective professional?

These things are not that different.  But yet they are very different too.  Which do you want to be known for?   

If your reputation is not what you desire, are you doing anything different to change or improve it?  If not, why?

Remarkable behavior, over time, builds a strong reputation that is difficult to change.  And that can be good or bad, but either way you are building that reputation every day.  Even from inaction.

Be sure you behavior is positive, professional and so client-focused it leads people to literally remark to others. 

That sound will be the evolution of your reputation!

Related posts:

• Referrals... Not Giving Any?  You Get What You Give!
• Trying to be "unique"just like everyone else?

Whether as an agent, appraiser, buyer or seller, anyone that has done many residential real estate transactions has dealt with the owner that says (or feels), "I can get a higher price for my house because my house is SPECIAL!"... or some variant of the remark.

And since most buyers and sellers are not accustomed to large financial transactions from a business perspective.. and because they often do not understand money... the decisions are often more emotional than logical.

So, what can you do about this??? 

And, more importantly, can you help them?

First off, there are probably as many great approaches to this problem as their are sellers and agents.  But here are some ideas to consider:

1. Don't argue.  That makes people defensive and reinforces their position.  If you just need to be right and prove how smart you are, then this is not the industry for you.  It is not about being right, it is about finding ways to make the deals happen fairly for all involved.
2. Ask for help understanding what they mean (who knows, maybe there is something about the house we didn't know that adds value).

Strategy 1:

1. When asking for help understanding, ask if it is okay to make a list.  (Getting permission helps them believe you are ready to listen to them... and sometimes that is all they want... for someone to listen first).
2. Once you have permission, make three columns.
   1. Their reason (or item) such as "location", "bathroom", "pool", "Favorite designs",  etc.  If they say something is the "Best" in the neighborhood, get them to explain what best means to them.  And at this stage, don't comment or judge, just listen.  Don't agree or disagree on value.
   2. Leave this middle column blank for now, not even a title.
   3. Their belief of the value it has to them (in dollars).
3. After making the list and completing the values, cover up the last column and go back to the middle column.  Ask them to pretend they are looking to buy a house in another city.  Talk about what, as newcomers in a new city, they might look for in a house.  If they mention something not on the current list or in the current house, ADD IT to the bottom of the list.  Now, as the buyer, go back down the list and get them to assign a value to each item on the list and ask why to be sure you understand the value.
4. You can now compare the perceived initial value to the new value... and subtract off the values they would look for in a house that their house does not have! 
5. Remind them that the price in not just about how their house is special to them but also what the house is missing that buyers expect (sellers like to ignore this part).

RISKS: They will work hard to still justify the original value and not be emotionally able to assign a new value.

POSSIBLE VALUE: By creating a new perspective, they may see that the memories in their house are only important to them and are not something they can sell.

Strategy 2: 

1. Ask permission to talk about money.  People are uncomfortable and by asking it often opens the door emotionally. 
2. Ask that they agree to be very candid and if you ask anything they do not want to answer, they tell you they would rather not answer instead of giving a polite but inaccurate answer.  As their adviser, you need factual information so you can help them.
3. Once you have permission and agreement, determine what they plan to do with the proceeds from the sale.  Many people ask for a high price because they already have emotionally spent the money (or literally have spent it already).   Or they are using the house price to be "the best" to someone or show how smart they are to a neighbor, their dad, their buddies, their spouse, etc.
4. Whether they owe more than they are asking or they have only emotionally spent the money, this is the opportunity to talk about the cost of a long sales cycle that will only cost them more money.

RISKS: They won't be honest about the money or will still ignore the long sales cycle

POSSIBLE VALUE: You have discovered their emotional (or fiscal) justification.  You can either help them adjust it or, if they refuse, politely decline to proceed (a future post).

There are many more approaches and strategies and you often have to match an approach to the personality of the sellers.  And some sellers are just not going to be realistic.  Just be sure to mutually qualify quickly in a professional efficient manner.  This will help you and them find the business relationships that meet the respective needs.

Even if the buyer or seller has unrealistic emotional responses, your job is to be the professional in the process. Earn the role of trusted adviser, even if it means you don't get deeply involved in every opportunity. 

Additional Related Posts:

• Do You "Mutually Qualify" Your Potential Clients?
• Why is "MONEY" a Difficult Topic?
• Your Seller Insists on Overpricing?  Try This?