REAL ESTATE

PRESENTATIONS
THAT MAKE
MILLIONS
Jim Remley, ABR, ALHS

American Management Association

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Library of Congress Cataloging-in-Publication Data
Remley, Jim, 1969-
Real estate presentations that make millions / Jim Remley.
p. cm.
Includes index.
ISBN-13: 978-0-8144-7401-3
ISBN-10: 0-8144-7401-2
1. Real estate business. 2. Sales presentations. I. Title.
HD1375.R456 2007
333.33068⬘4—dc22
2006032610

 2007 Jim Remley.

All rights reserved.
Printed in the United States of America.
This publication may not be reproduced,
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without the prior written permission of AMACOM,
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1601 Broadway, New York, NY 10019.
Printing number
10 9 8 7 6 5 4 3 2 1
 Contents

Introduction 1
Chapter 1 Flash Point 6
The Tokyo Challenge 10
Market-Driven vs. Strategy-Driven 14
Burning Your Business to the Ground 20
Chapter 2 The People Paradox 25
Reading Minds—Uncovering Client Motivations 29
Building an Ideal Client Model 34
Finding Your Coconut 39
Chapter 3 Impact: The Power and Importance of First Contact 48
Judging Books by Their Cover: Mastering First
Impressions 51
The New Internet Interview 58
Building a Brand Presentation 64
Engaging the Client 73
Chapter 4 Building a Master-Level Presentation 77
The 100 Percent Seller Solution 80
Creating a Visual Feast 81
Baking a Presentation Cake 93
Building a Success Portfolio 95
Anticipating Hot Buttons 99
iii
iv CONTENTS

Chapter 5 The Magician’s Secret 102

Presentation MAGIC 104
The Prelisting Kit 108
The Due Diligence Inoculation—A 17-Point Research
Plan 122
The Market Grudge Match 127
Fantasy vs. Reality 133
Chapter 6 Legendary Seller Presentations 137
Positioning for Success 139
The Six-Step ACTION Presentation 143
One-Stage vs. Two-Stage Appointments 154
Chapter 7 Questions, Concerns, and Objections 157
Teaching Clients to Say No 159
Early Minor Objections 161
Serious or Restated Objections 165
Answering 10 Common Seller Objections 173
Chapter 8 Making the Big Decision 179
Building a Client’s Decision-Making Muscle 182
The Assumptive Close 185
The If–Then Close 188
‘‘Facing’’ Your Clients 190
Tipping the Scales 194
Chapter 9 A Superstar’s Guide to Salable Listings 197
The Home-Scoring System 201
The Sexy House 206
Strategic Pricing 212
Price Adjustments—Planting an Early Seed 214
Condition Adjustments—Planting Early Seeds 218
Chapter 10 Mastering the Game 221
Conviction: Buying Into What You’re Selling 231
Avoiding Crisis Addiction 235
Establishing a Communication Plan 237
Signature Selling 240
Index 245
Introduction
I was drowning. Blackness would come at any moment. My stomach
rolled as I realized suddenly with a pang of fear and dread that nothing and
no one would save me. I had no life preserver, and there were no rescue
swimmers. I floundered, thrashed, and fought for control. But nothing
helped. I was sinking, and now the seller unmercifully tied an anvil to my
ankle by asking me the worst possible question at the worst possible moment:
‘‘Are you okay?’’
A dark abyss opened beneath my chair. As I looked down at the papers
scattered all over the dining room table, my lap, and now the floor, my mind
screamed, ‘‘No! No, I’m not okay!’’ but instead I mumbled weakly and contin-
ued searching frantically for the missing property disclosure forms.
It was my first listing appointment, and I was sure it was going to be my
last. The family had invited me to their home after I had randomly stumbled
upon them while doing something that my coworkers had referred to as cold
calling. But now, as the sellers quietly watched my frustration turn to despera-
tion, I could feel them looking at each other as if signaling in silent couple
code, ‘‘How do we get this idiot out of here?’’
The rustic farm home was a fixer, or, as I would later learn, something
that we call in the business a ‘‘handyman special.’’ The home had a broken-
down collage of cracked windows, unpainted walls, missing doors, and worn-
out carpets. But for me, fresh out of real estate school, all I could see was a
1
2 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

dream opportunity. Preparing for the appointment back at the office, I could
see the flyers, the advertising, and the brand new ‘‘For Sale’’ sign with my
name on it. But as I walked across the threshold of the home, something
strange happened.
My excitement melted into a mush of anxiety bordering on absolute
panic. Inside my mind, everything that I had so carefully prepared to say slid
away into a well of mental darkness. I felt disoriented, nauseous, and short
of breath. For a moment I flashed back to an eighth-grade speech where I
had choked so badly that I was unable to speak and had taken a failing grade
rather than face the humiliation of making a second botched presentation.
Sitting near the home’s sole source of heat, an ancient potbellied wood-
stove that seemed to glow red with blast-furnace intensity, the sellers waited
patiently until I finally found the disclosure statement, which had been hiding
conveniently on the top of my briefcase. Taking a deep breath, I began to
explain the fascinating history of the Latin term caveat emptor, otherwise
known as ‘‘buyer beware,’’ when the bearded husband with schoolteacher
glasses and a short ponytail raised his hand. It was the universal sign for
stop. I stopped in midsentence.
‘‘You know, Jim, I think we need some more time to think about this.’’
He paused, glanced at his wife, and continued. ‘‘So why don’t we give you a
call in a few days.’’
My new colleagues at the real estate office had told me that this listing
appointment should be a slam dunk, a lay down, as the sellers had explained
on the phone that they needed to sell fast because of the family’s new preg-
nancy. Taking a listing is easy, the veteran agents had all said. Just tell them
a little about the company, tell them the price, and then get out the paper-
work—‘‘You should be done in less than an hour!’’
But I had been in the home nearly two hours, and now, as the couple
stood in unison and looked down on me and my paperwork, I knew that the
end had come. Without a word, the expectant mother stepped behind me and
disappeared into the kitchen. Within seconds I began to hear the clanging of
pots and pans. As I stood awkwardly in the middle of the small home, the
husband opened the door for me to go. I looked past him to the outside. It
was raining.
‘‘Thanks for coming by.’’ He shook my hand, and our eyes met. Without
saying more, we both knew that I wasn’t coming back; there would be no
phone calls or office visits. This wasn’t just good-bye. It was good riddance.
INTRODUCTION 3

It was a hard lesson, and, like most spankings, it made a deep impression.
Sure, in the real estate business we all lose listings, but for me this first one
was an experience that I never, ever forgot. Why? Because it burned into my
psyche a realization: Presentation is the key to performance.
Consider your own real estate career for a moment. When you think
about your greatest successes and worst failures, the common thread that
probably links these two experiences together is your presentation. In any
client meeting, your display of the information, services, and benefits you
can provide is absolutely fundamental in determining the outcome. For in-
stance, a great presentation can separate you from your competition, differ-
entiate your services, and get the client excited about working with you. On
the other hand, a poor presentation can lead to your standing in the rain
outside a house wondering what just went wrong and how close the nearest
fast-food restaurant is (or maybe that was just me).
Some agents and brokers would argue that what makes a superstar real
estate agent is a successful prospecting plan, or a terrific marketing idea, or
the ability to build a deep database of past, present, and future clients. And
to them I would say yes, yes, and yes, but those are only parts of the story.
Let’s think about this for a moment. Assume that you have a terrific prospect-
ing plan, and you can find a steady stream of qualified leads. Getting to this
point is no easy task in itself, but once you have done so, you have to ask
yourself the next question: What is the goal of prospecting, or, for that mat-
ter, what is the ultimate goal of marketing, or of building a successful sphere
of influence? Isn’t the goal to set appointments with buyers and sellers to
present your services? Of course it is.
Your presentation, then, is the focal point of all your efforts. It is where
your business balances between terrible failure and incredible success, where
you can literally make millions selling real estate (oddly enough, the title of
my first book) or go bankrupt watching others outshine you in the market-
place. These crucial moments are the dividing line between greatness and
mediocrity. As Christian Bovee once said, ‘‘The method of enterprising is
to plan with audacity, and execute with vigor.’’ A planned, well-thought-out
presentation is a top-producing real estate agent’s touchstone, the center-
piece of his or her career.
For me, this first disastrous listing appointment was a turning point, a
jolt to my arrogant ignorance of what it would take to become a successful
real estate professional. When I replayed the whole scene in my mind, it
4 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

reminded me of my driver education classes in high school: the vivid scenes

of horrible crashes, deaths, and dismemberments combined with the low
voice of an off-camera narrator pointing out the drivers’ fatal mistakes—their
failure to heed warnings, to pay attention, to use a seat belt. If only they had
turned left instead of right, stopped at the red light, or waited a second longer
before crossing the railroad tracks. My presentation errors continued to flash
across my mind with the same intensity as the deep voice of the narrator
pointing out my own errors: ‘‘Notice how the agent fails to maintain eye
contact. . . . He is unfocused. . . . The driver is now losing control of the
conversation. . . . He is panicking. . . . Now he’s overcompensating. . . . He
can’t steer the client back around. . . . He’s all over the road. . . . He has
crashed and burned.’’
Of course, in high school we all tried to pretend that we didn’t care about
the people on the screen, but if you looked around the room carefully,
through the darkness, you could see some students turning green. We cared,
just like real estate agents care when they lose a listing. Yet, ignoring the
fundamentals, some real estate agents, not unlike teenagers, drive their busi-
nesses with reckless abandon, careening into client meetings as if they were
on their way to grab a burger with friends, blaming lost listings on the client’s
failure to stay focused, or accusing buyers of disloyalty when they purchase
a home from another agent.
Not me. From that day on, with the intensity of a drowning man, I com-
mitted myself to learning from the best and brightest minds in the industry,
to becoming a sponge in the pond of presentation ideas, and to discovering
how to master the client meeting. Surprisingly enough, it worked, and al-
though I certainly had days when I coughed up water and thought for sure
that someone had put cement shoes on my feet, I did go on to master the
skills that enabled me, a 19-year-old college dropout, to reach the top 1 per-
cent of real estate agents nationwide and to take over 150 listings in one 12-
month period of time.
But this book isn’t about me; it’s about you and what you are capable of
doing. Are you capable of earning a million dollars selling real estate? Are
you one of the few who can become a real estate superstar, a person who can
successfully master presentation skills and rise above the mediocrity that
surrounds you? I think you are. I think that’s why you bought this book. You
can smell opportunity; it’s all around you every day, waiting to be ravenously
devoured by the select few agents who have the skills to sit down at the meal.
INTRODUCTION 5

For people like you and me, success isn’t something that we can sit passively
on the sidelines watching happen to others. We want to be a part of it; we
want the sense of achievement, fulfillment, and euphoria that comes with
crossing the finish line first.
So how can I help? By using this book, you will be able to tap into the
strategies, techniques, and ideas that I have learned during 17 years in the
industry as a multimillion-dollar-producing agent and as the broker owner of
the largest independent real estate network in southern Oregon—ideas that
the best and the brightest in the real estate industry, the veterans and the
young lions, are using at this minute to win the battle for motivated sellers
and qualified buyers in markets across the country. With an easy-to-follow,
step-by-step process, you will discover exactly what it will take to move your
business to the next level and gain complete confidence at every client meet-
ing that you have from this day forward.
Are you ready to begin? Let’s get started.
 C H A P T E R 1

Flash Point
How many presentations have you botched in your career?
Wait! When I say botched, I don’t just mean that you lost the listing or
didn’t begin working with the buyer. I want you to also include in your total
the presentations where you might have
taken the listing or started working with the $49,300
Median earnings among all
buyer, but you still failed to properly set the Realtors in 2004.
stage for success. For instance, perhaps you
failed to discuss the importance of negotia- In 2004 the top 5 percent of
Realtors earned
tions, concessions, financing, compliance
work, escrow, or some other key facet of the $250,000
According to the 2005 National Associ-
transaction, which, of course, led inevitably ation of Realtors member profile.
to a failed sale. Be honest; unless you’re a
brand new agent, it’s a huge, scary number, right? Now rewind a moment
and consider how much more income you might have earned during your
career if you had been able to successfully convert those failed presentations
into successful closings.
Ouch. It hurts a little, doesn’t it?
The brutal truth is that buyers and sellers today don’t care about our
glamour photos (but I look so sexy), our S-class Mercedes (but I just waxed
it), or, shockingly, how much money we made last year (but I was the top
agent at my company). Buyers and sellers care about only one thing: what we
6
FLASH POINT 7

can do to help them. One example of this is the 2004 National Association of
Realtors Profile of Home Buyers and Sellers study, which revealed that the
quality that buyers preferred most in their next agent was knowledge of the
purchase process (95 percent), followed by responsiveness (93 percent) and
knowledge of the real estate market (92 percent). Amazingly, not on the list
was the agent’s hairstyle, his vehicle make and model, or even his latest
ranking in the company.
With nearly $2 trillion changing hands each year in the sale of both new
and existing homes, and over 80 percent of those transactions involving a
real estate professional, the importance of creating and using a powerful
presentation can’t be overstated. For the profit-driven superstar, building a
successful presentation is not an option, it is a necessary investment of time,
money, and energy that will provide proven benefits, including more closings,
better client relationships, better time management, and, best of all, more
referrals.
Of course, it’s easier to just blow off building a presentation. Most agents
won’t find the time or have the patience to conceptualize a powerful client
meeting strategy, much less create a systematic plan for making it happen
consistently. Instead, most of us are experts at coming up with every excuse
known to man to avoid building (or, harder yet, using) a presentation in the
field. In fact, if you listen real close, you can almost hear the voice in the
back of your head right now. Shhh . . . shhh . . . listen. . . . ‘‘Presentations
are for rookies, newbies, or the weak. You don’t need a presentation. You’re
way, way too cool to use a presentation.’’
Yes, you do, and no, you’re not.
Mastering the real estate business means gaining mastery over your pre-
sentation skills. Just as professional athletes spend their time preparing to
do battle on the playing field, successful real
estate agents spend their time preparing to $1,150
Median amount spent by
perform at their highest and best level dur- Realtors in 2005 on
ing each of their client meetings. And promotion and marketing.
whereas athletes may spend 90 percent of
9 percent of Realtors
their time training and only 10 percent of spent over
their time competing, we, the real estate ath- $10,000
letes, are likely to train 10 percent of the
time (if we’re lucky) and spend 90 percent of our time competing in the fields
and homes of our marketplace. Because of this, in superstars’ eyes, everything
8 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

they do in business is leading either up to or away from a successful client

meeting. They understand the fundamental truth that presentation is the key
to performance. During these relatively few minutes in front of buyers and
sellers, you define your entire career. This is the critical flash point on which
a superstar’s business profitability hinges, a natural and necessary extension
of any great marketing plan. Most important, a high-quality presentation en-
sures that every lead generated by your prospecting and marketing efforts
will be given the best chance at developing fully into a closed sale. (This is
important, since the median amount spent by Realtors in 2005 on promotion
and marketing expenses was $1,150, and most of us spent several times that!)
I know, it all sounds so rosy, doesn’t it? Build a presentation and buyers
and sellers will lie down end to end across your office parking lot and wait
patiently for their turn in line to work with the almighty, the chosen one, the
greatest living real estate agent to walk the earth—in other words, you. Sorry,
no; your presentation will not create a tsunami of new clients beating a path
to your door. But what a great presentation will do is give you the tools to
effectively and persuasively talk to any prospect with whom you do come
into contact. Fortunately for me, it was early in my career when, with the
dull thud of a hammer hitting something soft and squishy, I came upon the
undeniable yet simple truth that I could prospect until I was blue in the face,
spend a zillion dollars on personal marketing, invest in the best technology,
and still end up ‘‘living in a cardboard box down by the river’’ unless I built
and began using a presentation.
So there I sat in mid-1989 behind my brown desk, looking at my brown
phone and the brown walls, enjoying a full head of hair, a flatter stomach,
and clearer vision while considering my next step. With each idea came
thoughts of Michael Jordan making a three-point shot, Joe Montana throw-
ing a touchdown pass, or Martina Navratilova knocking down another ace
(it was 1989), which made me wonder: Do these sports stars get performance
anxiety? Do they sweat each shot, question each play, or wet the bed after a
really bad game? Or, instead, are they machines, gods of the game, made of
inner steel, unflinching, mechanical terminators who execute each move with
robotic precision?
Images of myself tripping over words, concepts, or objections suddenly
popped into my head like migraine flashbulbs as I considered the dangers of
building a presentation that might actually make me look more inexperi-
enced, nervous, or flat-out incompetent. Would the sellers smirk, wink, or
FLASH POINT 9

make the dreaded L finger pattern on their forehead as I fished out my three-
ring binder with my back to them? Would they hammer me so hard with
objections that I would retreat from the house like a wounded animal in a
thunderstorm? Would I regret becoming a real estate agent and wonder why,
oh why, hadn’t I just stayed in the lumber mill and punched a time clock for
the rest of my life?
Sitting at my desk a week or so later, still clutching that same number
two pencil, I looked down from my contemplative thousand-yard stare to find
my answer in a magazine quote from Michael Jordan. He said,

I’ve missed more than 9000 shots in my career. I’ve lost almost 300
games. Twenty-six times, I’ve been trusted to take the game winning
shot and missed. I’ve failed over and over and over again in my life.
And that is why I succeed. I’ve always believed that if you put in the
work, the results will come. I don’t do things half-heartedly. Because
I know if I do, then I can expect half-hearted results.

Amen to that, Michael, I thought to myself with a smile. I can become

the agent I want to be if I accept that not everything I do will be perfect, not
every presentation will be a success, not every meeting will go as planned.
But, of course, that’s not the point. The point is that I will have done every-
thing in my power to create a successful meeting, to anticipate challenges,
and to give myself the best chance at winning. And so, with the sage advice
of an NBA superstar who had no connection whatsoever to real estate, I
began the journey of building and using a presentation that would create tens
of millions of dollars in real estate sales, create a foundation to build a net-
work of real estate offices, and secure my family’s future with millions of
dollars in real estate investments.
So what did I learn along the way? One thing that I learned is that a
great presentation can change the world.

L E A R N I N G O P P O R T U N I T I E S

Presentations are the flash point where an agent’s profitability is de-

termined.
10 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Mastering a persuasive presentation is the key to converting leads

generated from prospecting and marketing activities.

The Tokyo Challenge

In the summer of 1950, not too many years after the end of World War II,
21 of Japan’s most influential leaders and industrialists met for a private
dinner in the heart of Tokyo. The assembled group was beaten down, psycho-
logically bruised, and no doubt somewhat depressed. In the 1950s, Japanese
manufacturers were known largely as makers of shoddy, knockoff imitations
of their higher-quality American counterparts, and products stamped ‘‘Made
in Japan’’ were largely avoided by consumers.
As the dinner concluded, a young, unknown American statistician took
the podium. To a skeptical audience, he outlined a plan that would revitalize
productivity, create bigger profits, provide more jobs, and bring Japan back
to the world stage as an economic powerhouse. The key to opening this door
of prosperity, he explained, was the unflinching pursuit of quality. He then
carefully outlined a five-year, 14-point plan to make the goal a reality.
His presentation changed the world. Without fanfare, trumpets, or even
fireworks, W. Edwards Deming changed the way every company approaches
the manufacturing process. As Dr. Deming later recalled, ‘‘They surprised
me and did it in four years!’’ Today his ideas are embraced not just in Japan
but worldwide.
Growing up on 40 acres of poverty just outside the small town of Powell,
Wyoming, Deming probably never would have guessed, during those cold,
hungry winters in his parents’ tar-paper cabin, that he would someday change
the world economy. And yet he did, with one superb presentation.
One superb presentation can change the world, and one superb presenta-
tion can certainly change your career. It has changed mine many times, and
if you really think about your own career, it will become clear that your
successful business is really just an endless string of successful presentations.
My first Million Dollar Presentation was to a friend, which at first blush
might make it seem easier, but for me, a kid barely out of high school, it only
terrified me more. Bob was an investor, a guy I had known all my life, who
had the financial capability to buy an unlimited number of properties, and
he was looking, aggressively looking, for new acquisitions. For me this was
FLASH POINT 11

both terrifying and exhilarating. Land this whale, this high roller, and it
would put me on the road to multimillion-dollar sales; lose him, and I would
step back down in the trenches and the knife fight of competing for the next
big buyer to swim through the shallow waters of my small market.
Like most investors, Bob planned to work with only those agents who
could produce properties of interest that fit his narrow needs. For Bob, this
meant (in his mind, at least) that he would have every agent in the city
looking for new properties for him to purchase. The reality, of course, was
that most agents would never lift a finger to do any actual work on his behalf,
figuring that the odds of actually closing a deal with him were about as good
as finally capturing Bigfoot in the Cascade mountain range, and since most
of us had given up on catching Sasquatch (UFOs, after all, are far easier),
most agents just ignored Bob altogether. But I had an idea that if I could
demonstrate to Bob that I could provide him with a steady stream of proper-
ties to consider for his portfolio, perhaps I could convince him to use me as
his exclusive agent.
This looked great on paper, but in reality, of course, it was actually akin
to finding a piece of hay in a needle stack—very, very painful. The reason for
the difficulty was that Bob was after the same investment properties that
nearly every other affluent buyer in our market would snap up in a microsec-
ond as well: privately owned farmland. Privately owned farmland in Oregon
is sought after because of the profit in harvested agricultural goods (an often
controversial topic when it involves timber), but also, and as important, be-
cause of the underlying land as well, which in many cases has even higher
aesthetic value as a home site.
The challenge was finding these highly sought-after properties, which,
short of plugging myself Matrix style into the Multiple Listing Service, were
almost impossible to find before a swarm of other agents had made full-price
offers. I had to find another way. Fortunately, as William Maxwell once said,
‘‘If you turn the imagination loose like a hunting dog, it will often return with
the bird in its mouth.’’ And so it did. After a few days of pondering the
problem, I had an idea: I would go after absentee owners, property owners
who lived outside the county. Of course, back in those early computing days,
none of this information was available from a title company, or even, believe
it or not, from the county itself. Instead, the tax records were kept on old-
style microfiche. In short, gathering the names and addresses of all the absen-
tee owners in the county would require that I read every single tax record in
12 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

the county, then transfer those by hand into my own computer. So I immedi-
ately hired an assistant, Jennifer, to do this tedious work for me.
Within a couple of weeks I was sitting with Bob holding a hot potential
property for him to review and a presentation. We sat in the back room of
my office, which had been commandeered for our mailing program. Stacks
of unsent mail were scattered all over the room, along with a computer and
a printer that spat out a letter every few seconds. Bob took it all in quietly.
A retired builder, he casually wore jeans and a flannel shirt, and, as always,
he was armed with a generous smile.
The presentation was simple. I had developed a system for finding his
target properties and would be able to provide him first access to viewing and
making offers on these properties. In exchange, I would need an exclusive
commitment from him in writing that I would become his sole agent, the
only one to represent him as a buyer in the county.
‘‘But if I only work with you, Jim, I might miss out on working with other
agents who also have properties to show me,’’ Bob said after a long silence.
The smile was gone now, replaced with hard concentration.
‘‘That’s true, but those agents also won’t be bringing you these proper-
ties.’’ I held up three more potential leads, leads that I had not yet handed
over to him.
Looking back on the conversation, I’m sure I appeared nervous, and
maybe my voice shook, but the night before, in thinking about what might
be said, I had prepared for this exchange. My confidence rested on the fact
that I knew that I could replace Bob, if I was forced to, with any number of
other investors. It was at that moment, as Bob considered my offer, that I
had something precious, something that I had never had before in a real
estate presentation—control.
Within 24 hours, Bob said yes, and we together, investor and agent, went
on to make millions of dollars in deals over the next several years. The key
to this successful presentation was that I had offered the same thing that
Deming had offered to those manufacturing executives in Tokyo 50 years
earlier, something that is irresistible to any audience—a solution.
All presentations start with a problem; it’s the reason that the client
comes to us in the first place. It’s the reason clients talk to us, listen to us,
or really spend any time with us at all. The better our solution, the more
unique, efficient, or effective it is, the better our chances will be of persuading
the client to accept our presentation as her solution.
FLASH POINT 13

Of course, most agents assume that presentations are built on personal-

ity. If they like me, they will list with me. If they like me, they will pay me. If
they like me, they won’t sue me. Maybe, or maybe not. Maybe a flashy pre-
sentation will work, or maybe not; maybe a presentation that includes
pictures of your pets will work, or maybe not. Maybe if you cut your commis-
sion, clients will commit to you, or maybe they won’t. Strong agents don’t
work in the hazy world of maybes; instead, they cut through the fog of indeci-
sion by focusing their presentations on providing clients with a compelling
reason to make a decision, to take the next step, to make the commitment.
They provide a solution. They know that most clients aren’t looking for a new
best friend (or a new pet); after all, according to a recent study, the average
American spends nearly eight hours a day watching television, so who has the
time for new best friends when CSI or Law and Order might be on?
Deming was right on another topic as well: the importance of quality.
Without a high-quality presentation, delivering the right solution may still
end in disaster. For instance, imagine that Deming had screwed up his pre-
sentation. Maybe he choked, lost his notes, or made some other embarrassing
blunder. Where would we all be today? Would some other brave soul have
taken up the mantle, or would the idea have rotted and died on the vine? It’s
an interesting, even scary question to consider, and yet it’s extremely impor-
tant, because without the ability to convey ideas or concepts convincingly in
a well-thought-out, high-quality presentation, as Deming was able to do, it’s
nearly impossible for any salesperson to achieve the success he deserves.

Deming’s 14-Point Plan (Applied to Real Estate)

1. Constancy of purpose. Decide on a long-range goal.
2. Adopt a new philosophy. Become a learning, adaptive company.
3. Be independent. Stop relying on others’ approval; only the client matters.
4. Demand quality. Demand it of yourself and of everyone who is part of your
team.
5. Improve every process. Search continually for problems and solutions.
6. Train yourself to win. Model the best in the industry and commit to training.
7. Institute leadership. Lead yourself and others by raising standards.
8. Drive out fear. Encourage open communication at every moment.
9. Break down barriers. Link your success to the success of everyone around you.
10. Eliminate exhortations. Avoid self-praise and focus on improving quality.
11. Eliminate arbitrary targets. Every goal should have a driving purpose.
12. Take pride in your work. Ensure that every transaction is one you are proud
of.
13. Encourage education. Educate customers and clients about the process.
14. Commit to action. Push every day for advancement in at least one area.
14 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Many agents are still resistant to building—and using—a presentation.

Why? Perhaps because they have allowed their business to become market-
driven, as opposed to strategy-driven, a key distinction in the coming days of
a changing marketplace.

L E A R N I N G O P P O R T U N I T I E S

One superb presentation can change your life and your career.
Wise agents take the time to determine each client’s real estate
problem.
By offering unique solutions to each client’s problem, strong agents
are able to take control of client meetings, and their careers.

Market-Driven vs. Strategy-Driven

For anyone who is even loosely connected with the real estate industry (a
large number, since nationally 1 in every 266 adults now holds a real estate
license), there is little doubt that real estate professionals over the last several
years have experienced a near perfect storm of market conditions—interest
rates at 45-year lows, an overall strong economy, and buyers and sellers who
are ready, willing, and able to trade dollars for deeds. In fact, the numbers
are a little scary—double-digit appreciation, cost hikes, buyers stampeding,
owners scrambling, and still not enough supply to meet demand (and that’s
just at the local Starbucks). Residential real estate in the United States went
up $2.5 trillion in total value in 2005, to top out at $18.4 trillion.
Like politics, all real estate markets are local, but nationally, according
to the 2005 National Association of Realtors Profile of Real Estate Markets,
residential real estate increased in value by more than 13 percent in 2005
(see Figure 1-1), with an overall three-year increase of 33 percent (2002–
2005). This includes some hot spots where the increase was even higher—
areas like Phoenix, Arizona, which had year-over-year gains of 55 percent,
and many areas of Florida and California, which had appreciation of between
30 and 40 percent—and some slower markets in the South and Midwest that
posted only single-digit gains.
Of course it’s easy to find ways to explain away all the hysteria. I’ll give
you a few talking points for ammunition:
FLASH POINT 15

F I G U R E 1 - 1 . H O M E P R I C E A P P R E C I AT I O N

Source: National Association of Realtors.

• Since 1968, when real estate records first began to be kept, most of
the country has never experienced even a temporary downturn in
home prices, and national median prices have risen every year, even
during times of recessions and periods of slower sales. Typically,
according to David Lereah, chief economist for the National Associ-
ation of Realtors, homeowners can expect home appreciation of 1 to
2 percent above overall inflation over the long haul.
• Homeownership is still the cornerstone of wealth for most Ameri-
cans, and for good reason. According to Harvard University’s Joint
Center for Housing Studies, a home buyer who puts 10 percent down
on her home and holds it for just 3 years will generally receive a 94
percent return on her investment; if she holds the home for 5 years,
it ratchets up to 225 percent, and if she hangs on for 10 years, she
can expect an infomercial-ready return of 623 percent! How? The
return is based on the actual cash invested, not the total purchase
price of the property.
• Home prices actually lagged behind income growth for most of the
previous two decades. It’s only relatively recently that they have been
playing catch-up. For example, from 1980 to 2004, incomes rose by
150 percent while home prices increased by 180 percent.
16 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

• Home prices are only one way to measure the real cost of home-
ownership. Another possibly more accurate way would be to mea-
sure housing costs as a percentage of income. As an example, with a
2 percentage point drop in interest rates, a home buyer can afford a
23 percent larger loan, and bingo, you get higher prices.
• A home is more than just an investment; it also offers a tangible
benefit to its owners—shelter. You can live inside the darn thing and
keep warm. Try doing that with an Enron stock certificate.

Interestingly, the real estate expansion has not just been confined to the
United States; it has been a worldwide boom, as the Economist magazine
stated in June 2005: ‘‘Never before have real house prices risen so fast, for
so long, in so many countries. Property markets have been frothing from
America, Britain and Australia to France, Spain and China.’’
In a busy real estate market, a high tide floats all boats. Yet, common
sense should tell us that when even the worst agent in your office (you know,
the guy who couldn’t sell his way out of a wet paper bag) sells a couple
million dollars of real estate, this should be a red flag to the rest of us that
maybe, just maybe, this magic carpet ride won’t last forever. As Joseph Ken-
nedy, father of President John F. Kennedy, reputedly told his colleagues in a
speech before taking the reins as the first SEC chairman (referring to the
stock market crash of 1929), ‘‘When your shoeshine boy starts giving you
stock tips, it’s time to sell.’’ The same might be said about real estate. Yet it
is tough—really, really tough—for industry veterans to accept the idea that the
market could lose power and parachute softly back down to earth or, worse
yet, burn up in the stratosphere. However, great agents are also smart agents;
they watch which way the wind is blowing, and the tide is turning against
real estate. As Richard DeKaser, chief economist for mortgage banker Na-
tional City, was quoted, reluctantly, as having said during an interview,
‘‘We’re coming down the other side of the mountain.’’
So what does that mean to you and me?
What it should mean is that now is the time to analyze our business
practices and make a critical distinction about how we are running our ship.
Are we market-driven, or are we strategy-driven? It’s an important question,
because the answer can determine your fate in the coming market downturn.
What’s the difference? Let’s start with a market-driven agent. A market-
driven agent is a person who, by all outside appearances, has done very, very
FLASH POINT 17

well over the last five years. He has more business than he can handle. He
comes in early and goes home late. He wears nice clothes, lives in a nice
home, and drives a nice car, and like the rest of us he struggles to keep up
with all of his clients, closings, inspections, and minor (and major) problems.
These agents are busy people, and they look the part of a successful agent.
But there is a huge problem looming for market-driven agents, an iceberg
hidden under the water just off the bow of their business, and they are steam-
ing full speed ahead right toward it. The problem is that they have absolutely
no idea where their business comes from. They pretend that they know, and
many of them think they know, but they don’t. They have no idea what has
been fueling the engine of their business; all they know is that it has been
cruising nicely and comfortably. As H. G. Bohn once said, ‘‘Success makes
a fool seem wise.’’ Unfortunately, the engine of their business may soon come
to a sputtering stop, and these agents’ once-thriving careers may be left red
tagged on the side of the real estate superhighway.
So how do you know if you are a market-driven agent? Here is an easy
litmus test: If you answer no to any of these three questions, you may have a
gremlin lurking in your career’s carburetor:

1. Do you know where your clients come from, i.e., floor time, referrals,
or prospecting?
2. Do you have a consistent daily system for attracting new potential
clients to your business?
3. Looking back at your last three sales, did you actively seek out the
clients, or did they just happen to find you?

The market-driven agent is someone who is completely at the mercy of

the marketplace. If interest rates go up, her
business goes down. If buyers or sellers stop Market-Driven Agents
calling, her bank balance drops. More agents Success is tied to the
market conditions.
enter the business, and she gets a smaller
piece of the pie. The economy takes a nose-
Strategy-Driven Agents
dive and her kids don’t go to college. For
Success is tied to the
many of these unfortunate souls, the best quality of their plan.
years of their career have already come and
gone, and it’s only downhill from here, unless they decide to make a massive
change in the way they view their business, something that’s not easy but is
18 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

doable. As William Boetcher once said, ‘‘There are two ways of meeting
difficulties: you alter the difficulties, or you alter yourself to meet them.’’
This path to progress may lead some to follow the example of many
superstars who have embraced a strategy-driven approach to their business.
What does this mean? It simply means that strong agents build a strategy to
consistently attract new potential customers and clients. They have discov-
ered that the bigger the pool of potential clients they can present their ser-
vices to, the greater their odds of success. The key difference is that they take
control of how and when those potential clients come through the front door
of their office. They don’t wait for the clients to come to them; they go to
the clients. They are not a retail store; instead, they are first and foremost a
sales organization. A strategy-driven agent has a predictable pipeline, under-
stands his own business model, and knows how to drive leads to his organiza-
tion.
At first, this may seem not to be connected to a discussion about building
a powerful presentation strategy. But, in fact, it is perhaps the most critical
component. Why? Imagine my dilemma if, when I had presented my ideas
to Bob the investor, I had had no alternative if he had said no. My position
would have been weakened dramatically, to the point that I might never have
even had the discussion for fear of losing Bob altogether. But because I had
many other investors to turn to should Bob reject my presentation, I was able
to retain control of my presentation.
Why is this so important? Take a look at the two agents in Figure 1-2.
Having a predictable pipeline of new customers and clients to present
your services to ensures that you can match your solutions to customers and
clients who actually have a need for your services. In addition, it gives you
the power to become selective when choosing which clients to enter into a
professional relationship with. Wise agents build an ideal client model, a
picture of the client that they would prefer to work with and for, and then
they build their marketing plan around finding those ideal clients.
On the other side of the fence, market-driven agents, especially in a down
market cycle, are far more likely to wrap their arms around any potential
client they come into contact with. Veterans have seen this before during
previous soft markets. Agents are stepping on top of each other to work with
anyone and everyone who comes within 500 yards of their SUV: ‘‘Unquali-
fied buyers, no problem. I’ve got a lender who can fix that! Unmotivated, just
FLASH POINT 19

F I G U R E 1 - 2 . W H I C H P R O S P E C T P O O L W O U L D Y O U R AT H E R H AV E ?

Market-Driven Mark Strategy-Driven Sally

Prospect Pool Prospect Pool

10 Clients 100 Clients

wait till I show you my hot new listing! Unready, well, get ready, partner,
because now is the time to sell!’’
There is another name for this: creating needs. Weak agents, like vacuum
cleaner salesmen, attempt to create needs. They try to fill a void that just
isn’t there—the people already own a vacuum cleaner, so they don’t need
another one, or, for that matter, a new house. From a presentation stand-
point, these agents are stuck attempting to sell a solution that the client
doesn’t need or want. They are forever trying to put square pegs in round
holes, and they just don’t fit (unless you find a really big hammer).
What is the alternative? Strong strategy-driven agents work with large
pools of buyers and sellers and present their services only to people who are
ready, willing, and able to make a decision, people who have a real estate
problem, people who need a—drum roll, please—solution!
So what is your solution, and is it good enough to convince a client to
commit to you in writing? If you don’t have good answers to these questions,
it may be time for you to burn your business to the ground.

L E A R N I N G O P P O R T U N I T I E S

Easy success has led many agents to a market-driven business

model. Market-driven agents are at the mercy of the marketplace and
are not in control of their career path.
20 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Superstars embrace a strategy-driven approach to their business by

building a plan for success; they have a predictable pipeline.
A strategy-driven approach ensures that agents will have a large pool
of buyers and sellers to present their solutions to.

Burning Your Business to the Ground

If it ain’t broke, don’t fix it!
It’s easy to think that way; after all, when you’re making money so fast
that you can’t seem find the time to actually deposit your commission checks,
it might seem strange to even begin contemplating an overhaul of your pre-
sentation strategy, but in reality you may be standing at the threshold of two
diverging paths. One leads to continued prosperity even in the face of falling
sales and the potential for depreciating home values, and the other path leads
to an earnings cliff, where your income drops dangerously out from beneath
your feet. The good news is that others have passed this way before. Decision
makers like yourself, businessmen and -women who have had to make the
tough and in many cases unpopular decision to go against the grain, to
choose the less-traveled road, and in some cases to figuratively burn their
business to the ground.
General Robert F. Wood was one of these men, a man driven by num-
bers, statistics, and logistics, a born leader. Such was his talent that he was
tapped early in his career to help coordinate one of the most massive building
projects in the history of the world—the construction of the Panama Canal.
A 50-mile channel of locks, waterways, and dams connecting the Pacific and
Atlantic Oceans, it took nine years to build (1904–1913) at a cost of $375
million and involved the management of over 56,000 construction workers.
But an even bigger project lay in his future, a project that would help reshape
retailing in the United States for decades to come.
After his return from World War I, General Wood noticed something
disturbing in the U.S. economy. As historian Richard Tedlow would later
write in his book New and Improved, he ‘‘was one of those fortunate few to
whom numbers spoke.’’ His observation: The American farmer was in dan-
ger, as agricultural income was dropping precipitously. Conversely, the num-
ber of automobile registrations was rising. Disconnected? Not in Wood’s
mind. These facts, added to the fact that the number of department stores
FLASH POINT 21

was increasing exponentially (led by retailing maverick J. C. Penney),

painted a picture that General Wood could not ignore: The farm economy
was dying. Instead, people were buying cars and moving to the cities to find
work. For his employer Montgomery Ward, this meant that its once-vaunted
catalog business might soon suffer a slow and agonizing death. He said as
much in a memo to the top brass at Montgomery Ward headquarters in
Chicago: ‘‘We can beat the chain stores at their own game,’’ he wrote. ‘‘We
have four distribution points; we have an organized purchasing system; we
have a wonderful name if we choose to take advantage of it.’’ Their answer:
Thanks, and oh, by the way—you’re fired!
Undaunted, he crossed the retail street and took his conclusions to Mont-
gomery Ward’s archrival, Sears Roebuck. The answer there: Let’s make it
happen! Within four years General Wood
had been named president of the company. The price of leadership is
But changing Sears Roebuck from a catalog unceasing effort; we cannot
get smug and self-satisfied,
operator to a chain store would be no easy we must always keep
task, especially for a company that had learning, we must keep
improving our methods, our
never operated brick-and-mortar stores, organization, if we are to
with managers, locations, marketing, em- retain our leadership.
—Robert F. Wood
ployees, and inventory to suddenly oversee
nationwide. In today’s world, this might be
akin to Amazon.com’s jettisoning its Internet portal position and suddenly
deciding to open a store in every major city in the country. It was a gamble,
a bet-the-company, cross-your-fingers, and hold-your-breath type of wager.
From the beginning, Wood acknowledged that there would be challenges.
‘‘Business is like war in one respect,’’ he said. ‘‘If its grand strategy is correct,
any number of tactical errors can be made.’’ And there would be mistakes,
failures, and breakdowns, but as the famous IBM technology manager Fred
Brooks was fond of quoting: ‘‘Numquam incertus, semper apertus,’’ or, for
the rest of us, ‘‘Never uncertain, always open.’’ General Wood was certain
his decision was correct for the company; he was unwavering, and some
might say unsympathetic, but not only was his vision right, it was the only
course the company could have taken to ensure survival. However, he was
always open to new ideas on how the stated goal might be achieved.
The result: Sears went from being the largest mail-order company in the
United States, primarily serving the country’s rural population, to becoming
22 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

the world’s largest merchandiser. Montgomery Ward, on the other hand, did
not fare as well. Declining sales and a late start putting in more retail outlets
led the company, after rejecting a 1950 merger bid by Sears, to declare in
2000 the largest retail bankruptcy liquidation in U.S. history.
So are you ready to burn your business to the ground?
Julie was, but she had problems, and they were hanging all around her.
Above her desk, on both sides of her computer, over her office door, they
were literally everywhere the eye could see—awards, plaques, certificates,
prizes, photos, every accomplishment in her real estate career from her first
million-dollar sale to her last record-breaking year, and they were all remind-
ing her of what had worked in the past. So it was hard for Julie, once the
envy of every agent in her multiple-listing system, to accept the fact that what
had worked so well before might not work again.
‘‘Just lean into your business,’’ her broker had told her. The not so subtle
message: Get off your tail and work harder. So she did, prospecting, market-
ing, and presenting day and night, eight days a week, and nine if she could
find the extra time. But still her sales continued to drop. Recognizing a down-
ward spiral, she made a decision. She had to kill what she loved. She had to
tear down her old business model and start from scratch. As she later ex-
plained to me after I had conducted a seminar for her company, ‘‘Successful
salespeople aren’t built by their last sale but by their next one.’’
Letting go of past success is the key to future brilliance. For Julie, this
meant that she should start with a fresh perspective, a new way of looking at
her goals and action plan; in other words, she needed to work on her business
and not just in her business. By doing so, she soon realized that volume sales,
the push to keep the turnstile of buyers and sellers whizzing through the
conference room doors, would not save her or any of her colleagues, who,
she had noticed, were also struggling. Of course, the idea that the answer to
any business dilemma is just selling more—more products or more services—
sounds reasonable. More sales means more profit, right?
The problem is that when everyone
wants a piece of that gold-plated pie, it’s Commodity: A term used to
very easy to reach a saturation point. describe any product or
service that can be
Reviewing the numbers, it wasn’t hard sold in mass quantities.
for Julie to surmise that in her community,
this was exactly what was happening. More and more of the top agents in
FLASH POINT 23

her community were turning themselves into volume stores, like a Costco or
Best Buy, or Sears. More volume can lead to more profits (sometimes even
at discounted commission rates). But when too many people in any one
market begin using the same approach to selling products or delivering ser-
vices, there is a name for this in the financial world—commoditization.
When a product or service becomes a commodity—in other words, when
you can receive roughly the same services or products from just about any of
the competing providers in the marketplace—there can only be one result:
Blood will run in the streets as each company or salesperson attempts to
undercut the competitors with price discounts, giveaways, and rebates; it can
quickly escalate to an all-out no-holds-barred marketing war. Examples from
the recent past might include personal computers, Internet service providers,
or even travel agencies. As each of these industries experienced a flood of
new competitors offering roughly the same products or services, many of the
businesses collapsed.
Time Warner’s acquisition of America Online and it’s subsequent $54
billion writedown (a fancy way of saying loss) in 2002 (roughly equal to the
gross domestic product of New Zealand) is a prime example of what can
happen to a business when many other players enter the market and begin
offering similar services. For AOL, this meant the loss of hundreds of thou-
sands of subscribers. Of course, many would argue that this is great for the
consumer, as a competitive market will, in the end, give consumers maximum
value for each dollar spent. True, unless to achieve the economies of scale
needed to be profitable, the company is forced to cut services or quality.
In any event, after careful consideration, Julie knew that she didn’t want
to be a commodity player; no top performer would. Top service providers,
the most sought after in their chosen profession, never allow themselves to
become a commodity. Instead, Julie wanted to build a business that would
guarantee that her prospective clients would have to choose her over her
competitors, not just because of her terrific marketing or her magnetic per-
sonality (or even her trophy husband), but because she had built a company
that offered something that her competitors hadn’t (yet) commoditized. We
might call this building a unique solution.
Her unique solution was to team up with an expert in self-directed IRAs
and begin hosting real estate investment seminars, teaching people how they
can move their IRA and 401(k) retirement savings from the stock market to
the real estate market. Did it work? Yes; within months, both she and her
24 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

The Self-Directed IRA

From March 2000 to July 2002, $5.6 trillion in stock market wealth evaporated,
along with many families’ retirement accounts, college savings, and medical
savings. Because of this, many investors decided that instead of placing their
money in intangible stock certificates (many of which had dropped dramatically in
value overnight), they would be better off investing their retirement dollars in real
estate, something that they could see, feel, and drive by every day.
The good news for these new real estate investors is that if they adhere to
strict IRS guidelines (www.irs.gov), they can roll over their traditional IRA and
401(k) accounts and use these funds to buy real estate. For more information on
using this technique yourself, or to help your own clients, visit www.pensco.com or
www.iraplus.com.

expert partner began to see an enormous return on their investment, with

both selling in excess of $10 million of product during the next 12 months,
far surpassing her previous high-water mark of just under $7 million. The
best part, according to Julie: ‘‘I don’t lose any sleep wondering where my
next client will come from, because I know that at each of my seminar presen-
tations I will have at least ten new leads.’’
Julie burned down her business by rejecting the old-school approach of
just trading marketing dollars for clients. She understood that in today’s
world, if 10 people can do exactly what you can, the only way to win is to
stop playing their game. She adopted a new strategy, a strategy that starts
with understanding what clients want and delivering a powerful presentation
of how you can give it to them.

L E A R N I N G O P P O R T U N I T I E S :

To stay competitive, top producers may need to choose a new busi-

ness model, and, contrary to what many may believe, volume sales
may not be the answer.
Wise agents avoid becoming a commodity, or someone who provides
products or services very similar to those provided by their competi-
tors in the marketplace.
To differentiate themselves, superstars build unique solutions for
their clients’ real estate challenges.

So what do your clients want from you? The answer to this question will
become the foundation for building a powerful presentation strategy and the
topic of our discussion in Chapter 2, ‘‘The People Paradox.’’
 C H A P T E R 2

The People Paradox

Real estate buyers and sellers can be odd ducks. Some want what
they can’t have: ‘‘I want $1 million for my single-wide mobile home and not
a penny less!’’ Others demand crazy concessions: ‘‘I want this toaster oven
but they can keep all the clocks in the house.’’ A few will cook up harebrained
schemes: ‘‘Let’s offer them half what they’re asking, and go down from
there.’’ Occasionally they hide things: ‘‘Bankruptcy? I thought that we took
care of that last month.’’ And more clients than you would guess will flat out
lie to you: ‘‘Fire? No, we just barbeque inside during the winter.’’ As Jim
Morrison of The Doors was fond of singing, ‘‘People are strange.’’ They are.
A few years ago, a good friend of mine, John, confided to me after a
housewarming party he had thrown to celebrate the completion of his 4000
square foot waterfront home, ‘‘As nice as this is, I know that in a few months
I’ll be wishing I had something bigger and better.’’ At first blush, you might
say to yourself, ‘‘Oh, how sad; the poor devil will never be satisfied.’’ But take
a look inward for a moment and ask yourself whether you are completely
satisfied with where you live, what you drive, and what clothes you wear.
Perhaps we aren’t so different from John, with his constant need for more,
bigger, and better. This is the people paradox. We always want what we don’t,
or can’t, have. Fulfillment for many of us is never in the here and now; it’s
just around the bend, over the next hill, just out of reach. Is this a bad thing?
25
26 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Probably not, as our inner drive, our hard-wired ambition is exactly what
allows us to succeed and survive in a highly competitive world.
We need to understand the underlying motivations of each of our cli-
ents—why they buy and sell homes. You might think that buying a home is
simply a matter of getting a roof over your head or some shelter. Or perhaps
you might think that people are looking for safety, because a home provides
us with a certain degree of security from the outside world. But in my experi-
ence, both answers would be wrong. Why? As one of the fortunate few who
live in the richest country in the world, I can say with confidence that very
few of us are in danger of losing at least basic shelter. Nearly all of us will
have a roof over our heads every night of our lives. So the question isn’t
whether we will have shelter, but what kind of shelter we will have.
I learned this valuable lesson in the first year of my second marriage. My
new bride and I had taken a road trip to visit some family in Washington
State, where we had planned to picnic along the Columbia River and enjoy a
summer day on the water, fishing and swimming. Unfortunately, after driving
several hundred miles up and down the river, I got very lost. (My later de-
fense: It is the largest river in the Pacific Northwest, over 1,200 miles long!)
By nightfall we gave up on finding my family.
Frustrated, tired, and irritated, we pulled into a small town along the
river that had two hotels. The first was a brand new multistory waterfront
hotel. The place was lit up like a Wal-Mart at Christmas, and strangely, after
all those hours of driving, searching, fighting, and fatigue, it gave us that
same sense of warmth, joy, and euphoria. We couldn’t help but smile.
Through the window we could see that a fire was blazing in the new lobby,
hot coffee was steaming from an oversized pot, and the gleaming white teeth
of the cashier beckoned us to come on in. But this is where I made one of
the biggest mistakes of my life—I kept on driving. The place looks expensive, I
thought to myself; after all, we just need a place to sleep for a few hours.
‘‘Let’s see what’s down the road.’’
What was down the road was my new bride’s worst nightmare, an old-
fashioned motor lodge. In its day it must have been an incredibly plush hotel,
with wood-paneled walls, freestanding ashtrays, and clown-inspired paint-
ings. But now it just looked old and tired (but cheap!). Although the lobby
was closed, it did have a night bell, and the flickering sign outside did say
‘‘vacancy.’’
‘‘No,’’ my new wife pronounced. It wasn’t a discussion; it was a decision.
THE PEOPLE PARADOX 27

I guess as a recent bachelor I just hadn’t come full circle yet as to what
adequate shelter would mean to my new wife. That night I learned. Four
walls and a roof ? Not even close to good enough. Fearful of quickly becom-
ing a bachelor once again, I humbly turned the car around and drove back to
the first hotel.
To my surprise, there was now a line at the check-in desk. Other lost
travelers? As I finally made my way to the front of the line, I learned from
the overly friendly receptionist that the last room had just that minute been
filled. The retired couple in the elevator had taken the honeymoon suite. She
pointed at them and they (mischievously?) smiled as the doors closed. As I
slowly made my way across the parking lot, I could feel my wife’s eyes boring
a hole through my head, past my brain, and into my very soul. Fortunately,
there were no blunt instruments within her reach as I opened the door and
told her the news—the hotel was sold out.
I am absolutely confident that someday in the distant future, when my
wife and I are celebrating our fiftieth wedding anniversary and one of our
grandchildren begins talking about taking a vacation or staying in a hotel,
she will shake her head in disgust and regale everyone in the room with the
story about the night I made her sleep at the motor lodge. Needless to say,
today she makes all of our hotel reservations.
For most Americans owning a home isn’t about shelter. It’s not about
staying dry, or staying out of the weather, or keeping the wolves from coming
in; it’s about something much deeper, something that is beyond physiological
needs, and deeply seated in psychological needs. Four walls and a roof do
not make a home (or a hotel). Reflect for a moment about your last home
purchase or sale. What motivated you to make that life-changing decision?
Was it one of the reasons in Figure 2-1?
Like you, each of your clients has a core
motivation. But here’s the rub: Many of Inner Motivations
your clients won’t themselves realize what it The core motivation for
making a real estate change
is they are truly seeking. Sure, they know
the outside motivations, those surface is-
sues that they present you with as they walk Outside Motivations
through your office doors, like, ‘‘We need a The surface needs that serve
the inner motivation.
three-car garage,’’ ‘‘We want to live in Lau-
relwood,’’ or ‘‘We want to be closer to the center of town.’’ But they haven’t
yet grasped (and may never grasp) their own inner needs, their core motiva-
28 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 2-1. WHY DO PEOPLE MAKE LIFE-CHANGING DECISIONS?

Love/Belonging Esteem Actualization

Move closer to Move based on Move to better

family or friends. promotion or reflect lifestyle.
increased income.
Move to Move to
accommodate family Move to match self- accommodate
—size of home. image change. personal growth.

Move to meet needs Move to keep up Move to change life

of family members. with social circle. direction.

tions for making a real estate change. Instead, these deeper needs remain
untapped, repressed, and unspoken. So how do superstars uncover this hid-
den agenda? Many start by using a simple technique that I call the three-way
technique.
The three-way technique is a quick way to diagnose our potential client’s
core motivations. Not unlike doctors, great presenters evaluate each poten-
tial client by probing, narrowing, and exploring the symptoms of what ails
their patients. In other words, they quickly find their client’s pain. Let’s take
a look at the three-way technique in action.
The key to this system is to always ask at least three questions during
any initial conversation with a new potential buyer or seller client to reveal
that client’s true motivations and determine if you want to continue building
the relationship. For instance:

The Three-Way Technique

Buyer: Yeah, I’m looking for a three bedroom in the country, around
$200,000.
Weak Agent: Great. I’m not doing anything now. How soon can I pick you up
and start showing you homes?
Strong Agent: Great. Do you mind if I ask you why you’re looking for a three
bedroom and not a four?
THE PEOPLE PARADOX 29

Buyer: Well, we have a new baby on the way, and we are in a two bedroom
now, but we would take a four bedroom if we could find one.
Strong Agent: Terrific; and why the country? Did you grow up on a few acres?
Buyer: No, but my wife grew up on a ranch, and she wants our new son to
grow up on some property.
Strong Agent: Great; and do you mind if I ask how you decided on looking
in the $200,000 range?

Three questions later and this agent has discovered that this couple’s
core motivation is to provide a rural environment for their son to grow up
in. They’re moving because they want to create a loving environment for
their son that reminds them of their childhood. This skilled agent knows that
she isn’t selling bedrooms and bathrooms; she’s selling something far more
precious—a special place for this couple to raise their new baby. Knowing
this, can she now do a better job for her new potential clients? Of course she
can. Because in the end, none of us sells square footage; we also don’t sell
split-levels, condos, ranch-style homes, or ranches. Instead, we sell the way
buying or selling real estate makes a person feel. We sell emotions.
Some might say that in order to tap into this hidden agenda with their
own clients, they would need the ability to read their clients’ minds. They
would be right, so let’s do that next.

L E A R N I N G O P P O R T U N I T Y

Purchasing a home is a social need.

Inner motivations. The core underlying motivation for making a real
estate change is what professional real estate agents work to un-
cover.
Outside motivations. These are often surface needs that may help to
satisfy the greater underlying client motivation. Superstars often use
these stated needs as a way to reveal a client’s true inner motivation
using the three-way technique.

Reading Minds—Uncovering Client Motivations

Odds are that unless you have recently attended one of my seminars, you
and I have never met. You are reading this book because you purchased it
30 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

online or at your local bookstore, or maybe a friend gave it to you as a gift.

Nevertheless, I’m going to read your mind. Sound impossible? Let’s see how
close I can come to hitting the mark. Okay, relax. Go to your mental sanctu-
ary and let me see if I can cross the space-time continuum and tap into
your cramped cranium. Take a deep breath and concentrate on something
pleasant—like a big commission check.
This may take just a minute, so stay calm and relaxed, with happy
thoughts.
Aha, yes, I’m getting you now. I’m receiving you. You’re coming in crys-
tal clear. Now let me just make a couple of small adjustments . . . wait there
it is . . . I’m reading your innermost thoughts. Interesting . . . um . . . yep . . .
oh . . . wow . . . oops! I’d better stop there. I don’t want to know too much!
Now that I’ve completed my reading, I’m going to describe you, the real you.
Not just the person everyone sees on the outside, but the person underneath
your skin, hiding just beneath the surface, the person whom only a few peo-
ple in your life have ever met. To test my accuracy, I want you to be open
and honest to my reading. Okay, here is what I picked up:

You have a need for other people to like and admire you, and yet
you tend to be critical of yourself. While you have some personality
weaknesses, you are generally able to compensate for them. You have
considerable unused capacity that you have not turned to your ad-
vantage. Disciplined and self-controlled on the outside, you tend to
be worried and insecure on the inside. At times, you have serious
doubts as to whether you have made the right decision or done the
right thing. You prefer a certain amount of change and variety and
become dissatisfied when you are hemmed in by restrictions and
limitations. You also pride yourself on being an independent thinker
and do not accept others’ statements without satisfactory proof, but
you have found it unwise to be too frank in revealing yourself to
others. At times you are extroverted, affable, and sociable, while at
other times you are introverted, wary, and reserved. Some of your
aspirations tend to be unrealistic.

So was it a success? Did I accurately describe the real you? If you’re like
95 percent of college students who were given this ‘‘cold reading,’’ you would
probably rate this description of yourself as good to excellent. How is that
THE PEOPLE PARADOX 31

possible? It’s not. This mind-reading exercise was developed by psychologist

Bertram Forer to expose supposed mind-reading psychics as frauds. The real-
ity is that this ‘‘reading’’ applies to the vast majority of the population, and
although it sounds specific to the person to whom it’s being given, it really
isn’t. Mystics and so-called psychics often use a number of memorized stock
readings and then apply them to their customers as needed.
So should you memorize some stock real estate readings to use with your
clients? It’s probably not the best idea (unless you can fit a crystal ball into
your briefcase), but what we can learn from these so-called clairvoyants is
the ability to read people. The skill, as Forer points out, in being a physic or
mystic isn’t in the divination of voices or thoughts from the great beyond,
but the ability to read the subtle feedback given to them by their subjects
during a reading. As many of us know, the closer a ‘‘hit’’ that a clairvoyant
makes is to the truth, the more ‘‘tells’’ the subject will reveal. A tell is what
is often referred to as a sign or signal from one person to another; it’s like a
flashing neon bulb that says, ‘‘I’m trying to tell you something!’’ but no words
are ever spoken. In the psychic’s case, if a customer agrees with part of the
reading or the client makes an obvious signal that the psychic is on the right
track with a tell, the psychic can instantly adjust the message to focus on the
obvious hot button.
Why is this important to us as real estate professionals? As many com-
munication experts point out, up to 80 percent of human communication is
nonverbal. Instead, it is body language and
voice intonation that often clue most of us What’s not being said is often
in to what people are thinking but not say- more important than what is.
ing. For instance, can we feel someone’s
anger, disappointment, or joy? Of course we can, and often way before we
are slapped, yelled at, or hugged. Why? Because before we learn to talk, we
learn to interpret facial expressions, voice tones, hand gestures, and many of
the other subtle nuances that make up the bulk of nonverbal communication.
As children, we did this to avoid spankings and to read our parents for just
the right moment to ask for a new toy. As young adults, we did it to fit in
with groups and gauge our success (or in my case failure) when talking with
the opposite sex, and as adults, we continue to do this every day with our
friends, spouses, and coworkers. Unfortunately, we may not be using this
intuitive skill with our clients. Yet mastering the art of reading the subtle
subtext of a conversation is one way superstars can enhance any presenta-
32 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

tion. Just like the psychic who hones his reading to appeal to his customers,
we can do this when talking with a new potential client. How? Let’s look at
the Four Ways to Read Minds.

Four Ways to Read Minds

1. Eye contact and brow movement. When I teach seminars, students often
pose questions about the material; after dealing with their concern, I
often follow up my response by asking, ‘‘Did that answer your ques-
tion?’’ Interestingly, in a group setting many students will say yes, but
often their eyes say no. The same can be true when doing a presenta-
tion. Here are some behaviors to watch for:

Acceptance/Agreement
• Direct eye contact. Client is showing interest in your information.
• Smiling eyes. Demonstrate that the client is comfortable.
• Relaxed brow. Shows that the client is open to your discussion
points.

Rejection/Negativity
• Head drop. A client whose head is down is often avoiding a discus-
sion.
• Limited eye contact. This client may want to break off the discus-
sion.
• Tension in brow. The client may be confused, upset, or afraid.

2. Facial gestures. Experts in reading body language often study the

mouth as a way to determine a subject’s acceptance or rejection of a
given message. How? Upward turns in the corners of the mouth are
often positive indications that the client is engaged and interested,
whereas flat lines, downward turns, or pressed lips often can indicate
unhappiness or the rejection of a given message.
3. Upper-body movements. When someone attempts to throw a swing at
you after your presentation, it’s a good bet that he has rejected your
ideas. But you might have received another, more subtle message much
earlier in the conversation if you had just watched for the right cues.
For instance, as a general rule of thumb, a closed-off posture means a
close-minded attitude; arms crossed, leaning backward, or moving a
chair in the opposite direction is not so good. On the flip side, an open
THE PEOPLE PARADOX 33

or willing attitude is often inferred by someone who keeps her arms

open, leans forward, or nods as you are speaking.
4. Leg activity. Although many clients cross their legs for many reasons
that have nothing to do with what you are saying, clients who are
fidgeting with their feet or legs are often nervous or anxious (or have
to go to the bathroom). In either case, it is probably wise to stop
talking and ask a question like, ‘‘How does that sound?’’ or ‘‘What are
your thoughts on that?’’

Now, setting all these finer points aside, I think we are already pretty
adept at reading minds; we just may not realize it. For instance, I guarantee
you that when I walk through the door of my home tonight, I can gauge my
wife’s demeanor by taking only one quick glance at her face. After all, how
many times have you ever heard someone say, ‘‘I could cut the tension with
a knife?’’ Think about that statement; how do you sense tension? Can you
see it, smell it, or touch it? No, but it’s still there, like your weird aunt sitting
in the corner staring at everyone. This sixth sense is often attributed to our
mind’s ability to sense things on a far smaller, more nuanced scale than
anyone has yet to comprehend.
Interestingly, computer designers are now chasing the ability to read
human emotions. According to Rosalind Picard, professor and founder of
the Affective Computing Research Group at Massachusetts Institute of Tech-
nology (MIT), the next generation of computers will include the ability to
read their users’ emotions and respond appropriately. ‘‘When people interact
with other people who ignore their emotion, who don’t empathize with them,
who don’t look concerned when they are upset, it drives them crazy,’’ Picard
pointed out. ‘‘And yet technology is full of that.’’ New technology, she ex-
plains, will soon be able to measure each user’s voice intonations, emotional
levels, and user patterns to become more empathetic.
I wonder how long it will take humans to match this upgrade. Think
about how many times you have had human interactions where your emo-
tions were ignored, where the salesperson made zero effort to read your body
language, demeanor, or emotional state. Anger, confusion, annoyance, inter-
est—ignored. Granted, some people seem to have high-definition extrasensory
perception, almost as if they have a pair of beelike antennae waving in the
wind trying to catch a whiff of some new disturbance in the force. But many
(or most) salespeople never seem to see the pink elephant sitting on the
couch no matter how many times he trumpets.
34 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

‘‘It is so much easier to suggest solutions when you don’t know too
much about the problem.’’—Malcolm Forbes

Weak agents provide the same solutions to all of their clients, regardless
of the client’s true motivation level. They use a sort of one-size-fits-all or one-
presentation-for-everyone approach. Wise agents, on the other hand, under-
stand that each client is unique, with different needs, questions, and con-
cerns. Clients aren’t unisex, interchangeable, or cookie-cutter models. But for
some clients, expressing their true motivations, those inner needs, is difficult,
sort of like trying to pet a porcupine. They want to, but it really hurts. So it
falls to us, the professional real estate practitioners, to unravel the motivation
mystery by carefully listening to our clients’ verbal and nonverbal communi-
cation cues.

L E A R N I N G O P P O R T U N I T Y

Communication. Experts agree that up to 85 percent of communica-

tion is nonverbal.
Reading minds. Superstars hone their ability to read their clients’ non-
verbal communication to better tap into their clients’ inner motiva-
tions.

The next step in the process is to understand what it is that top producers
are looking for when they select potential clients. Wait; don’t I mean what
clients are looking for when they select us? Nope. Great agents enjoy a luxury
that mere mortals can only dream of: the power to reject clients who don’t
meet their ideal client model. This enables them to perform presentations
only when they have the best odds of success.

Building an Ideal Client Model

When you picture the average Joe and Jane Buyer or Sue and Sam Seller
sitting patiently in your office conference room, what do you see? Not the
THE PEOPLE PARADOX 35

girl with the clown shoes, or the guy in drag (those are your special clients).
I’m talking about your typical, everyday client. According to the 2005 Na-
tional Association of Realtors Profile of Home Buyers and Sellers, here’s
what should come to mind:

Joe and Jane Buyer

• Repeat buyers have a median age of 46 and a household income of
$83,200.
• They place an average of 21 percent cash down. (Amazingly, 11
percent pay all cash.)
• They pay an average of $235,000 for their home, and 94 percent
believe their home is a good investment.
• The typical buyer will walk through nine properties and will spend a
total of eight weeks searching for a home.
• On average, they will move 12 miles from their previous residence.
• About 81 percent will use the Internet in their search for a new
home.

Sue and Sam Seller

• The typical seller has lived in the home for six years and has pre-
viously owned three homes (including the one being sold now).
• The average seller will place the home on the market for four weeks.
• On average, the seller will move 15 miles to the new residence.
• About 61 percent of the market is made up of married couples.
• About 43 percent of sellers choose their agent based on a referral.

One of my favorite classroom exercises is to ask students to describe

their ideal client. From top to bottom, head to toe, I instruct them to write it
all down. Why? To build a business, you need to understand your target
customers, the bread-and-butter clients who will feed your real estate practice
today, tomorrow, and for years to come. My specific instructions for each
participant are to think back to all of their favorite buyers and sellers, the
ones they really enjoyed working with, and then pick out the best traits from
each to build their new superclient—a client who is faster, stronger, and better
36 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

than those who have gone before her. Why not give it a try yourself ? Here
are a few questions to get you started:

The Ideal Client Worksheet

1. What demographic age group does your ideal client fall into?

2. Is the client married? Does he have children?

3. What income bracket does the client fall into?

4. What is his educational background?

5. Has he bought or sold a home before?

6. What kind of occupation(s) does your client have?

7. What is your client’s net worth?

8. What are your client’s hobbies?

9. Is your client tech-savvy?

10. Does your client own investment real estate or a second home?

Many agents will raise their hands at this point and ask, ‘‘Why is this
important? I’ll work with anyone who pays me!’’ The funny thing is, they’re
THE PEOPLE PARADOX 37

right. I think we would all agree that we won’t always fall in love with each
of our clients, just as a defense attorney won’t like all of the clients she
defends. Yet we do have the power, as our practice grows, to become more
and more selective in choosing with whom we work. So while we may work
with a few rough-hewn buyers and sellers in the beginning, as we move up
the success ladder, we should be able to graduate to working with clients we
might actually be comfortable taking home to our parents (or our broker).
But moving up the client food chain requires decision making. After all, take
a look around your office and you will probably see a large number of veteran
agents who, at any moment, are ready to drop their latte and run like a
jackrabbit toward anyone who even whispers the words real estate within a
hundred-mile radius of the office. Some might call this aggressive, whereas
others might find this desperation vaguely pathetic.
How can you avoid the same fate? By building an ideal client model.
Wise businesses of all types take the time to build an ideal client model for
several reasons. One of the most important is the ability to target their mar-
keting. One truism in the advertising world has always been: You attract the
people you advertise to and for. If you place an ad in the penny shopper, you
shouldn’t really expect a flood of luxury home–buyer calls; on the other hand,
advertising a single-wide mobile home in the DuPont Registry will probably
also fail to make your cell phone ring. Successful marketing in today’s over-
saturated, media-rich world requires a narrow target, a window to shoot for.
Superstars identify their ideal clients, their target audience, and then market
their brand exclusively to this audience.
Also if you know who your audience is before you deliver a presentation,
it will become vastly easier to develop a discussion that will be relevant,
timely, and interesting. For me, listening to a discussion about the history of
Mayan art would put me right to sleep, but for an art history major, I’m sure
it would be riveting. Different strokes for different folks. This is exactly why
smart marketers often work backward. They first build an ideal client model;
then they create a message that they know will appeal to this specific audi-
ence.
Having an ideal client model will also enable you to better deliver your
services. How? By providing smart agents with the keys to giving their clients
exactly what it is they want. A great example of this is how some savvy
agents are applying this idea to a new, relatively untapped segment of the
market—single women who are buying and selling homes.
38 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

The Master Architect’s Ideal Client

Architect Donald Rattner understands the power of building an ideal client model.
Charged with designing a model home for a new community at the historic
Greenbriar Resort in Sulfur Springs, West Virginia, he first set about fleshing out
his ideal client. By researching the surrounding area, the economics of the
community, and the development he would be building within, he decided that his
ideal client would be a family-oriented outdoor lover with the financial ability to
purchase a second home. From there, he was able to design a home that would
fit this client’s lifestyle.
This may be one reason that Greenbriar was listed in 2006 by Forbes.com as
‘‘where we want to live!’’

To run an efficient business, you must take the time to decide exactly
what kind of client you want to attract and work with. Think about your own
past experience with buyers and sellers. How many times have you spent
days or weeks trying to convince someone to buy or sell a home and received
only rejection in return? How did you feel? At your best, ready to tackle the
world? I doubt it. Instead you (and probably the potential client) were no
doubt frustrated, tired, and irritated by the whole ordeal. So even though
your technique and your skills may have been flawless, you still hit a sales
wall. What went wrong?
You were efficient but not effective. Great skills are only half the answer
to the sales equation. Even though countless books, seminars, and CDs tout
the power of sales technique as the answer to all selling challenges, the reality
is that even the best skills in the world will take you only halfway to your
destination. To get to the Promised Land requires something else—

Emerging Markets—Single Women Buying and Selling Homes

In 2005, 21 percent of homes were sold to single women compared to just 9
percent to single men. In fact, Fannie Mae, the largest secondary mortgage insurer
in the United States, estimates that by the year 2010, there will be 31 million
women-headed households in the United States, nearly 28 percent of total
households. Wisely, some enterprising agents have begun to focus their business
on this emerging market by retooling their marketing and presentation styles to
better assist their female clients in buying and selling their next home.
As Judy, an agent from the Midwest, points out, ‘‘I enjoy helping my women
friends buy and sell homes because I think I understand what it is they’re looking
for in a home.’’ One way she does this is by discussing with her clients the ancillary
benefits of homeownership; for instance, the Harvard Joint Center for Housing
Studies shows that homeowners are likely to stay in their home longer and to
participate more in community and political activities.
THE PEOPLE PARADOX 39

effectiveness. As the famous management consultant and author Peter

Drucker said years ago, ‘‘Efficiency is doing things right; effectiveness is
doing the right things.’’ Great agents understand the fundamental business
truth that they are effective only when they are presenting their services to
qualified buyers and sellers.
But what if a client doesn’t fit your ideal model? Do you tell him to go
fly a kite?
The short answer is yes; the more pragmatic, realistic answer would be
maybe. For most top producers, their ideal client model is not a Polaroid
picture; instead, it is more like a mosaic—defined, yes, but able to fit in the
odd piece of color here and there. Acceptance or rejection of each client
then becomes a business decision, a risk versus reward calculation. Putting
this into practice means asking yourself, ‘‘How well do these new clients
match my business model?’’ The further the potential client is from your gold
standard, the more likely you should be to walk away from the table, chips
still in hand. Having the power to push back and say no will help you to
become a more powerful and profitable presenter. Now let’s look at another
technique for unlocking the people paradox: finding more coconuts.

L E A R N I N G O P P O R T U N I T Y

The ideal client model. Superstars build a model of what they are look-
ing for in each new client with whom they work. They then measure
each client against this standard.

Three Reasons to Build an Ideal Client Model:

1. Targeted marketing. Wise agents market their services to a tar-
geted audience that they know their message will appeal to.
2. Customized presentations. By building a presentation that fo-
cuses on the needs of their ideal client, superstars are far more likely
to be successful.
3. Enhanced service delivery. Superstars who provide specialized
services will be able to create more client value.
Key question: ‘‘How well do these new clients match my business?’’

Finding Your Coconut

As a rookie real estate agent, I had the good fortune to spend a day with a
true sales professional, a man who had risen through the ranks of a Fortune
40 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

500 company to become head of a vast sales department with thousands of

employees across the world. While showing him property, I decided to pick
his brain for advice, so I asked him what he thought was the greatest lesson
he had learned over his long and prosperous career.
Without hesitating, he smiled and said, ‘‘Jim, I learned that to succeed
in life, you have to be able to find your coconut.’’
Okay, I thought to myself, that was a little weird. Sensing my confusion,
he went on to explain a sales theory that was truly unique and, yeah, a little
weird. But weird is fun. So let’s have a little fun.
Imagine for a moment that you are the owner of a vast amount of land
in Thailand. (I told you it was weird.) You own hundreds of acres of coconut
trees, and you must harvest them before the season ends. So to get the job
done, you need to hire some employees to do the picking.
The question my client asked me was this: ‘‘Whom would you hire?’’
My first impulse was to hire local people from the town, but my client
quickly shot that down—‘‘They have higher-paying jobs in the cities, so they
wouldn’t do it.’’
Digging deeper, I offered another suggestion: ‘‘How about bringing in
workers from other areas?’’
‘‘Too expensive,’’ he explained.
‘‘What about hiring teenagers?’’
‘‘It’s a full-time job, and they have to go to school,’’ he answered.
Since I was out of suggestions, my client finally revealed what Thai farm-
ers have been doing for generations. They use trained monkeys to climb up
the trees to pick the fruits and bring them back down. Why use monkeys?
The coconut trees are so tall that it would be too tiring, time-consuming, and
even dangerous for farmers to climb up the trees themselves, so they train
monkeys to do the job for them.
He went on to explain that a well-trained monkey can pick hundreds of
coconuts a day, all for just a few bananas and some affection. What’s more,
if the Thai farmers were to pay their monkeys based on productivity, most
would earn a midlevel salary in Thailand.
‘‘Now, Jim, if that same monkey were earning a midlevel salary here in
the United States, he would be beating 95 percent of the salespeople in
America, and you know why he would beat them?’’
I didn’t have a clue, but I have to admit that I was now captivated by this
crazy monkey story.
THE PEOPLE PARADOX 41

‘‘Because those monkeys have figured out what most salespeople never
will—how to earn a banana every day.’’
It was such a perfectly simple story that I had to think about it for a
minute to really grasp what he had just said. So I replayed it again in my
mind until I thought I had figured it out.
‘‘So what you’re saying is that a great salesperson needs to figure out
what he needs to do every day to create a sale and then do those things over
and over again, just like those monkeys picking the coconuts.’’
‘‘Exactly. You see, Jim, most salespeople ignore the fact they there are
really just a few simple things that we all need to do every day to create a
sale. The bottom line is that salespeople find reasons to do everything else
but pick coconuts.’’
So did you catch the moral of the story? To improve your productivity,
you must identify what it is that creates a sale and do that thing over and
over again. From a presentation perspective, this means identifying what
you’re doing right and doing those things over and over again.
But how do you know what is working in your presentation, and what
isn’t?
It’s tough if you’re winging it, which is exactly why most agents flounder
when it comes to refining and improving their presentation skills. They treat
every meeting with a client as unique and unrepeatable, like an artist ap-
proaching a canvas. When they do happen to strike creative gold, the process
may seem so opaque, unclear, and vague that re-creating the success consis-
tently seems nearly impossible.
For instance, imagine that you do ten seller presentations; five of them
end up with you ‘‘eating a pavement sandwich,’’ and five turn into signed
listings contracts. Reflecting back on those presentations, the big question is:
What’s the difference? Why did you fail half the time? The easy out is to
blame the client, like a surgeon pointing his finger at a corpse. The harder
thing to do is to point the finger back at ourselves and assess what we did
right or wrong. After all, superstars don’t operate on clients who don’t need
their services. They qualify their clients thoroughly before they ever spend
their valuable time and energy on a presentation, but, as we all know, even a
thoroughly vetted client can still tell us to hit the bricks if we make a mistake
during a presentation. So the question becomes: Are client meetings so
unique that our successes really can’t be duplicated?
Absolutely not. Rarely do great artists like Rembrandt or Picasso or great
42 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

photographers like Bernice Abbott or Eugene Atget create only one master-
piece; instead, they are able to re-create their success again and again. Not
with carbon copies, but with brand new captivating artwork. So even though
their individual pieces are uniquely different, their mastery of their art form
and the creative process is something that they have learned to duplicate
over and over again. The same is true of a real estate presentation. Although
every client is different, every home unique, and every situation seemingly
incomparable, the way in which the master real estate presenter approaches
the appointment is the same. Like an artist who doesn’t blame the canvas, or
a photographer who won’t break his camera after a missed shot, the superstar
real estate agent understands that her art is her own responsibility, good or
bad, masterpiece or rubbish.
To master your own presentation process, let’s take a look at some sim-
ple ways you can begin measuring and then improving your performance,
starting with the Monthly Presentation Success Chart (Figure 2-2).

FIGURE 2-2.

Monthly Presentation Success Chart

Success Ratio
30 30

25 25 Number of
listings divided
20 20
by number of
15 15 appointments.
10 10

5 5 _________ %
2 2

Appointments Listings
THE PEOPLE PARADOX 43

Sherry, a southern California real estate broker, reports, ‘‘I find that I
can’t let myself slip when tracking my presentations. If I do, pretty soon I
start getting lazy.’’ If you sensitize yourself to a monthly success ratio, you
may find that you will naturally begin to improve your presentation skills by
doing nothing more than becoming outcome focused. Sherry uses the
Monthly Presentation Success Chart to record how many appointments she
goes on and how many actual listings she takes; by doing so, she can quickly
determine her success ratio.
Like Sherry, as the president and CEO of your own minicorporation, it
is your responsibility to create accountability within your business. So let’s
tighten the screws just a bit more by using another measurement tool, the
Play-by-Play Evaluation.
Even if you’re like my wife and hate sports, you no doubt have sat
through a broadcast of a professional athletic event or two in your lifetime.
During the game, you may have noticed that the announcers often replay the
highlights of the game, sometimes to show off mind-blowing field maneuvers
like a touchdown or a three-point shot, or in some cases to replay jaw-dropping
injuries. This color commentary usually follows the second-by-second action,
with some announcers having the ability to freeze and replay the scenes over
and over again. Players and coaches use these films to enhance their game
and to study their opponent’s strengths and weaknesses.
How can we use the same type of system to enhance our own presenta-
tion performance? Let’s take a look at one Arizona superstar team’s tech-
nique for reviewing its performance highlights to find out (Figure 2-3).
After each appointment, this team takes just a few minutes and uses the
Play-by-Play Evaluation form to quickly rate itself on a scale from 0 to 5,
with 5 being the best and 0 the worst. After evaluating each item, the team
members add up their numbers and divide by the highest possible total score,
in this case 35. This enables them to quickly grade their own performance
immediately after every client meeting. For instance, if they are in the 4 to 5
range and they have taken the listing, they have done great; anything below
this standard calls for a reexamination of their weak points (even if they have
taken the listing).
For agents who are genuinely struggling or brand new agents, a great
twist on this idea is to invite a more experienced agent along to complete the
Play-by-Play Evaluation on their behalf. This relatively unbiased opinion can
reveal listing-blowing mistakes that a rookie agent might not have recognized.
44 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 2-3.

Play-by-Play Evaluation

Task: Rating: 0–5

Qualification

Asked a series of detailed questions

Preparation

Thoroughly prepared for every aspect of the meeting

Building Rapport and Trust

Put the client at ease during the meeting

Presentation

Reviewed presentation and focused on client needs

Engaging

Asked the client involvement questions

Closing

Asked the client for the business

Follow-Up

Reconnected with the client after the meeting

THE PEOPLE PARADOX 45

Even for the veteran agent, this can be a terrific way to sharpen skills he may
have lost over the years. Another way to quickly and dramatically improve
any presentation is to create your own highlights reel by recording yourself
delivering your presentation.
Of course the ultimate judge and jury of any agent’s presentation skills
is that agent’s audience, buyers and sellers. Strong agents not only rate them-
selves; they also ask their clients to rate them as well. By doing so, they
receive the opinion that really counts, that of the ultimate decision makers.
Imagine using this script before beginning any presentation:

Client Evaluation Preparation Script

Listen, before we begin talking, I want to let you know that my team always
sends out an evaluation form based on my performance today. It takes
only about two minutes to complete, and I would really appreciate your
thoughts on any way that I can change or improve my presentation. Would
that be okay?

If you were the client, how would you feel about this script? If it were
me, I would be impressed by this dialogue for a couple of reasons: First, it
would demonstrate to me that this person really cares about self-improvement,
and second, it would show me that I’m not working with an egomaniac (not
that any real estate agents are egomaniacs).
Now to follow up this discussion point, let’s take a look at one Florida
agent’s actual postmeeting evaluation form.

Meeting Evaluation Form

It was truly a pleasure meeting with you. Because our team is committed to
continuous improvement, we ask each of our customers to evaluate our
presentation skills. If you could answer this quick questionnaire, it would be greatly
appreciated. Thank you.

1. Did you feel that the presentation was well prepared?

2. Did the presentation answer all of your questions and concerns?

3. Was the presentation concise and relevant to your needs?

4. Is there any area of the presentation that can be improved?

5. Overall, what suggestion do you have for our team?

46 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Notice that the questions used here are designed to make the client feel
more comfortable about making constructive comments because the focus is
on the presentation and not the individual agent. Evaluations that focus on
people are rarely answered honestly, if they are answered at all.
So will every client or customer carefully fill out this form? Not a chance.
In reality, probably only a small percentage will take the time away from
their sitcom reruns to give you any feedback. To improve your odds, you may
want to follow the example of many agents who have put the form into an
e-mail format, which many clients now prefer as being faster and easier to
complete, or, for your technology-challenged consumers, you may consider
including a self-addressed stamped envelope for return mail.
Now a final word of caution in using this system: If the vast majority of
your evaluations come back positive, but you get that one odd duck that rips
out your heart and stomps on it, don’t start crying. Evaluations should be
looked at based on the totality of the comments, not necessarily on each
individual tirade about your mismatched socks or your fancy-dancy shirt.
Remember, people are strange. In the professional-speaking business, we are
taught to focus on the audience members who are smiling, not on the idiot
in the back row who has his arms crossed and hasn’t sold a house in 10
years. As superstar presenters, we can’t play to the peanut gallery; instead,
we must have the discipline to study the bigger picture. Strong agents unemo-
tionally look for trends in their evaluation responses. By looking at trends,
they can enhance their presentation by putting each of their client comments
into the context of the big picture.
Leaning into your strengths and understanding your weak areas is the
mark of the seasoned professional, someone who is confident and under-
stands that every single presentation detail matters. One of the most over-
looked details is the power of first contact. Let’s dive into this important
topic in Chapter 3, ‘‘Impact: The Power and Importance of First Contact.’’

L E A R N I N G O P P O R T U N I T Y

Finding your coconut. Superstars focus on the areas of their business

that produce maximum results (like developing presentation skills).
Reproducible results. Although every client is different, every home
unique, and every situation seemingly incomparable, the way in which
the master real estate presenter approaches each appointment is the
same.
THE PEOPLE PARADOX 47

Monthly Presentation Success Chart. This measures an agent’s rate

of conversion of appointments to listings taken.
Play-by-Play Evaluation. This is a self-evaluation of the key aspects of
each client meeting to determine areas that can be improved.
Meeting Evaluation Form. This is a form for clients to use when provid-
ing feedback on an agent’s performance during her presentation.
 C H A P T E R 3

Impact: The Power and

Importance of First Contact
Imagine that your tires are bald. They are so bad that at any mo-
ment your vehicle may go careening off the road and into a ditch. So it’s
time. The duct tape and bubblegum just won’t cut it anymore. You’re going
to have to go to the tire store today and buy some new rubber shoes for your
gasoline-guzzling chariot. After walking into the store and waiting in a long
line of other procrastinators, you finally reach the clerk, a high-energy kid
fresh out of high school. As your eyes meet, he smiles, and then he does
something really, really crazy. He bounds over the sales counter, wraps his
rubber-stained arms around your new white shirt, and gives you a big, sloppy
kiss on the cheek.
‘‘Welcome back!’’ he exclaims. ‘‘It’s so great to see you again. We’ve
really missed you around here.’’
How would you feel at this point—uncomfortable, awkward, or perhaps
just a little frightened? For most normal adults, this would be an extremely
strange encounter. Why? Because we have no desire to enter into a personal
relationship with our service providers (no matter how good-looking they
may be). We simply want what we want—in this case, a new set of tires, but

48
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 49

it could just as easily be a new television, a car stereo, a cup of coffee, or a

new home.
So does this mean that we don’t want friendly service? Of course not!
We all want our service providers to be affable, courteous, and helpful. We
also want them to explain their services thoroughly, be ready to answer our
questions, and listen to our problems. But beyond this boundary lies a no-
man’s-land, a black hole for sales professionals that can lead some unfortu-
nate souls to make a string of potentially career-ending bad first impressions.
The monster under the bed is the tendency of most agents to think that
the key to building a good first impression is to ‘‘win over’’ clients with sheer
personality. If you blind each new prospect
with the power of your great suit, expensive Client Relationships
haircut, and bubbly chitchat, those pros- Professionally Based
pects will melt like a small pat of butter on Based on the client’s needs and
the services you can offer him.
your business pancake, right? Wrong! Wise
Personality Based
agents have learned from experience that
Based on the client’s ‘‘liking’’ you
what clients really crave is a rock-solid pro- more than your competitor.
fessional relationship, an exchange of val- (What if he doesn’t?)

ues, money for service.

Think about yourself and the tire store example. Going in, what is it that
you really want from the clerk? You want professional service, right? In other
words, you want to pay a fair price for your new tires; perhaps you want
advice on what would be the best tires for your type of vehicle; a guarantee
would be good; and, of course, you want the tires put on quickly. To top it
off, you probably want someone who asks you detailed questions about your
needs and provides concise, easily understood answers.
And herein lies the key to sales excellence. To become a master presenter
requires that all client meetings be first and foremost built on a professional
relationship. Can a personal relationship follow? You bet. I have become
close friends with many of my clients over the years. But the cornerstone of
the relationship, the beginning and the end, the alpha and omega, was my
professional presentation. Everything else, from my Hollywood good looks
to my boyish charm and keen wit (yeah, right!), must always come a distant
second.
After all, what if you just don’t ‘‘click’’ with every single client? If your
career depends on your being the most likable, outgoing, or ‘‘on’’ person in
50 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

every sales situation, sooner or later you are doomed to failure. Inevitably
someone prettier, smarter, funnier, or more magnetic will come along whom
the clients like better.
On the other hand, if your sales presentations are based on determining
what the client’s true needs are and what services you can offer her to satisfy
those needs, your likability factor, although still important, is not the deter-
mining factor in your being hired. Instead, it becomes a question of who can
offer the client the most value per dollar spent. Most value per dollar spent
is the basis of every great presentation.
As a consumer, when I perceive that the value of the products or services
I am considering exceeds the cost, then, and only then, I begin reaching for
my checkbook. I need to be sold. Not on
how many compliments a sales clerk can Value Equation
throw my way, or how good a ‘‘vibe’’ I am Only when the perceived value
of a product or service exceeds
getting from the car dealer, but on the rea- the perceived cost will a
sons why this particular purchase will sat- consumer consider a commitment
to purchase or proceed.
isfy my personal needs. This is exactly why
you may not be willing to spend $5,000 on a Louis Vuitton handbag, but the
woman next to you will. The value equation in her mind has been solved; the
value of this product to her has exceeded the cost. Once a real estate agent
can tip the scale in his favor by offering each and every one of his clients a
solution to the value equation, the presentation cards are suddenly stacked
overwhelmingly in his favor.
Of course, there is a catch to this logic, because it is very possible that
before we even open our mouths to utter a word, a client will have formed
an opinion about us and our services just based on how we look, our body
language, and our perceived attitude, and, surprisingly, her gut instinct about
us will probably be right on the money.

L E A R N I N G O P P O R T U N I T Y

Strong agents strive to build a professional relationship with each of

their clients by discovering the client’s needs and offering unique so-
lutions.
By solving the value equation, wise agents can help their clients make
an informed decision about whom to hire as their next real estate
agent.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 51

Judging Books by Their Cover: Mastering First

Impressions
Now, I know I just told you that your Hollywood good looks shouldn’t matter
at all in your presentation, but in the real world, they will have an impact on
your ability to make a good first impression and thus will affect your chances
of delivering a high-quality presentation. How do we know this? In a first-of-
its-kind study published in the November 2004 issue of Aesthetic Plastic Sur-
gery from the University of Illinois in Chicago, it was found that a prettier
face, natural or man-made, will result in a better first impression. Surprise!
‘‘Good-looking’’ people, it was found, have a tendency to land better jobs,
benefits, and rewards than ‘‘average-looking’’ people. (Damn you, Brad Pitt!)
So can you accurately judge a book by its cover? It seems that, contrary
to what your mom taught you, yes, you can, with a few added twists, as Dave
Kenny, Ph.D., a psychologist at the University of Connecticut and a pioneer
in the field of measuring the accuracy of first impressions, has discovered. In
his landmark study, which appeared in the Journal of Personality and Social
Psychology, he studied 250 college students. Each of the students was as-
signed to a group of three others whom they had never met and had not had
a chance to speak with. Armed with nothing more than their first impression,
the students were asked to measure each person in the group, including them-
selves, on five criteria. The results were then compared to the individuals’
self-assessments.
Amazingly, the students were able to describe one another’s personality
traits accurately based on nothing more
than their gut instincts. The bottom line: Shake Them Up!
People are extremely good at a mental func- A good handshake is one
that conveys self-confidence,
tion that is now known as ‘‘thin slicing,’’ a trust, and a genuine interest
term coined by author Malcolm Gladwell, in the other party.

which means taking huge amounts of data; • Always stand, if possible, to

shake hands.
paring it down to the key elements; and • To show trust, move out from
making a conscious, or often unconscious, behind your desk.
• Make eye contact and smile.
decision based on this narrow window of • Grip hand firmly (don’t crush).
• Shake for one to three seconds,
knowledge. and then release.
If you think about it, we do this all the
time. When you meet a friend of a friend for the first time, or perhaps when
you meet another parent at your daughter’s school, you instantly create a
52 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

mental snapshot of what you perceive this person to be about. Try not to get
a first impression of the next person you meet. It’s impossible. You might
assume that to achieve this mental feat, our brains are empowered with a
phenomenal amount of processing power and memory. You would be right
on both counts; in fact, for decades the ability to thin slice large amounts of
data was attributed to a large memory, and therefore a higher intelligence
level. But in a recent study, Edward Vogel, an assistant professor of cognitive
neuroscience at the University of Oregon, found that the brain actually em-
ploys a ‘‘bouncer’’—a neural mechanism that controls what information gets
into awareness. The bouncer’s job is to assess each piece of information and
decide if it gets processed or tossed.
To ensure that we get past the bouncer and have a shot at building a
professional relationship, we need to understand the power of making a
strong first impression. Many studies, including detailed research from the
University of Toledo, suggest that in a sales setting or job interview, we have
30 seconds (or less) to make a lasting first impression. According to these
studies, the keys to a great first impression (and the first step to terrific
presentation) are based 55 percent on visual appearance (body language,
posture, facial expression, and eye contact), 38 percent on voice quality
(tone, inflection, and volume), and the remaining 7 percent on the content
of your conversation (Figure 3-1).
In building this critical first impression, how you appear to someone
visually is the single most important aspect of building a positive impression.
One piece of your visual package is your attire. Mike Hasson, a hugely suc-

F I G UR E 3 - 1 . IM P AC T : TH E 3 0 - SE C O N D C LO C K STAR T S NO W !

55% Visual Appearance

38% Tone of Voice
7% Content

First Impressions
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 53

cessful independent broker in Portland, Oregon, believes that dressing for

success is essential to building a good first impression. (It is rumored that he
has sent home a few agents who did not meet his high office standards.) This
may be one reason that, according to Realtor Magazine, the Hasson Com-
pany’s average sales volume per agent of $6.4 million is the highest in the
Pacific Northwest and fourth highest in the entire nation.
Within my own firm, we have always encouraged the Million-Dollar Stan-
dard, which is the expectation that every agent should, within 10 minutes, be
able to meet with a million-dollar buyer or seller. Sure, some agents argue
that their clients would prefer them to be more comfortable: ‘‘I don’t work
with millionaires!’’ But as my friends from the South say, ‘‘That dog don’t
hunt.’’ Consider a truck driver, a mechanic, or a plumber who needs to hire
a real estate professional. If he is trusting this person to sell his largest finan-
cial asset, does he expect to see someone who dresses the way he does when
he walks through the office doors? Of course not. Instead, what clients expect
to see, what they deserve to see, and what they are paying to see is someone
who is dressed professionally. To become a superstar real estate professional,
you need to look the part. (Say good-bye to those sweat pants and T-shirts.)
The client’s expectations aside, consider how you feel when you dress
and look your best. Don’t you feel more confident and powerful? You bet
you do. This strength is a tangible asset that everyone around you can in-
stantly sense and respect. Try walking into a restaurant, a hotel, or a business
meeting looking your best and notice how differently you are treated. What
changed? Perception. Perception is reality. People’s perception of you
changed, and, just as important, the way you view yourself, your own self-
image, changed. As Coleman Cox once said, ‘‘Keeping your clothes well
pressed will keep you from looking hard pressed.’’
Now, for those of us who won’t be mak-
ing the cover of GQ or Vogue anytime soon,
there is still hope because our visual appear- What you say is
not nearly as
ance is only a part of the first impression important as
that we make. Also included in the mix is how you say it!
our tone of voice and the content of our
conversation.
Consider for a moment what would
happen if you closed your eyes in a restaurant and just listened to the voices
around you (not the ones in your head). No doubt you would instantly begin
54 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

forming opinions about each person around you just based on voice quality.
It’s no wonder, since 38 percent of our first impressions are based entirely
on hearing a person’s tone of voice. The old adage that what we say is not
nearly as important as how we say it is absolutely true.
So are you soprano, tenor, or bass? More important, can you motivate,
inspire, and move people to action using just your voice? In the seminar
industry, a powerful speaker will use her voice like an instrument to engage,
titillate, amuse, and break the hearts of her audience. Within minutes, she
can have an audience span the whole range of emotions, from fear and trepi-
dation to tears and laughter, all with just the power of words. Wars have
started and ended, democracies formed and crushed, and businesses begun
and bankrupted, all through the power of one person’s voice.
So how powerful is your voice? In a highly visual culture, it’s easy to say
little or nothing at all and just let the pictures, graphs, and PowerPoint slides
do the talking for us. Yet when we do speak, the sound of our voice can
either draw people toward our presentation or repel them from it. Our speak-
ing voice is a very powerful, often unconscious motivator during any presen-
tation, large or small.
We have all been vocalizing since birth—talking, babbling, screaming,
singing, ranting, raving, and now selling. Yet rarely do we give our voices a
second thought. When we do hear ourselves on a video- or audio-tape bab-
bling like a rhesus monkey about some long-lost banana, we cover our ears
and exclaim, ‘‘I don’t sound like that!’’ Yes, my furry friend, you do. Unfortu-
nately, most of us haven’t taken the time to fully develop our vocal skills.
Instead, we fall victim to developing bad speaking habits that can limit the
power and persuasive tone of one of our most powerful sales tools.
The good news is that with just a little effort we can all develop a more
pleasing voice. One way is by controlling the tempo and volume of your
voice. Listening to someone with a flat, monotone voice is like watching a
tire deflate: You just want it to be over. Expert speakers modulate their
tempo, the speed at which they talk, and the volume of their speech to engage
their audience. To inspire buyers and sellers, we also need to perk up their
ears by offering variation. By doing so, we can unconsciously force them to
stay focused on our discussion points and encourage them to actually listen.
Just consider how many ways you can say one word or sentence using the
power of variation. This is sometimes known as punching up words to bring
attention to the most important areas of a conversation by stressing content
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 55

words, or words that carry the meaning of the sentence, while giving less
attention to structure words, or fillers. To see this demonstrated, watch and
listen to any news broadcast and notice how those on camera use the power
of their voice to keep audiences ‘‘tuned in.’’
In a business setting, another common mistake among rookie presenters
is talking too quickly. It’s often been said that the average person speaks at
about 100 to 200 words a minute, but an overly excited or nervous presenter
can gust up to 500 words a minute. Like a fire hose, they keep gushing
information so fast that they drown their listeners. To make our ideas, con-
cepts, and questions resonate, we must pause, slow down, or even stop talk-
ing. In fact, the most powerful presenters understand that to really engage a
client, they must first ask lots of questions. Think about the next time you
are at a business luncheon. When someone new approaches, would she make
a better first impression by talking about herself—her hobbies, job title, or
shoe size—or would she do better by asking about you—what you do, where
you work, your family, and so forth? Our clients and customers are the same
way: Their favorite topic is always themselves!
On the phone, where our voice is the only thing that clients will have to
base their first impression on, it becomes even more important to develop
strong voice and etiquette skills. Take a look at some specialized tips on
handling phone inquiries:

Telephone Tactics for Making a Great First Impression

1. Speak clearly. Superstars make a point of slowing down on the phone,

enunciating clearly, and avoiding the shorthand real estate lingo that
can often confuse a real estate client. This shows that they are com-
pletely interested and engaged in the conversation.
2. Smile. In training real estate agents to prospect, we often use the age-
old wisdom of ‘‘smiling while you’re dialing.’’ Why? Because when you
smile, your whole body, posture, voice, and attitude change. Amaz-
ingly, you can sense these subtle changes over the phone.
3. Prepare to take calls. Real estate agents should expect that they will
receive hundreds of calls a month from their listing, marketing, and
prospecting activities. Wise agents prepare for these calls by keeping
copies of their advertising, prospect inquiry logs, appointment books,
and any other necessary tools at their fingertips.
56 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

4. Give them more. Real estate agents who field calls successfully often
find that creating a better first impression is as simple as offering clients
more than they asked for. For instance, when talking with buyers about
a specific listing, many agents keep a list of similar alternative proper-
ties that they can provide information about to prospective buyers.
5. Take great messages. In real estate, any phone call can be of critical
importance—a deal breaker or a deal maker. Superstars, therefore, take
great messages by recording the date and time of each call along with
the caller’s name, phone number, best time to call, and a brief message.
In addition, many superstars now ask callers if they would prefer a call
back or an e-mail.
6. Catch the name. A client’s name is an important piece of information
that should always be written down immediately, lest, like me, you
forget it five seconds later.
7. Train your team. Don’t forget that your front office, team members,
and assistants can often be a client’s first point of contact with your
brand. Thus, your front line must be trained on proper phone etiquette.

This brings us full circle to the last critical component of making a great
first impression: having strong content. Imagine watching a singer take the
stage. He is dressed in a suit and tie; he jokes with the audience, putting it at
ease; the band begins to play; and then, like a broken power saw, he begins
to sing the most offensive song you could ever imagine. He has perfect pitch,
tempo, and volume, but what comes forth from his mouth would make
George Carlin, Larry Flynt, and Marilyn Manson queasy. Do you stay and
listen? After all, he looks the part. He took the time to engage the audience
and build rapport. Most of us would be gone before the second verse, which
is why content is still incredibly important. What you say matters.
So what will you say within the few seconds you have to make a lasting
first impression? By packaging a standard, clear, and concise sound bite of
information, superstars can instantly adapt and customize their dialog to fit
any setting. Take a look at these real-world examples:

First Contact Business Meeting

It was a pleasure meeting you. Listen, do you mind if I give you a couple of my
business cards? I specialize in selling rural ranch land here in ⬍county name⬎;
in fact, we just started a new marketing campaign ⬍describe⬎. If you hear of
anyone buying or selling ranch land, please give me a ring.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 57

First Contact Phone Call

It’s been great talking with you today. You know, I specialize in residential
investment properties; in fact, we just closed ⬍name property⬎. I keep a list of
possible investors on my desk at all times for those kinds of hot buys; may I add
you to my list?

First Meeting at Client’s Home

Listen, before we tour the home, let me give you a couple of my cards. I
specialize in real estate relocation for my firm. In fact, my team has already
helped 25 families this year buy and sell a home.

Notice that each of these scripts is designed to give the potential client
a quick, bite-sized nugget of information that will help the agent stand out
from the crowd of other real estate practitioners in his market. ‘‘Hello, my
name is Bob, and I sell real estate’’ may be an accurate statement, but it is
extremely boring, like a glass of seltzer water—yeah, it satisfies your thirst,
but there’s no kick, wallop, or buzz to it. How long will someone remember
this person? Probably about as long as it takes you to read this sentence.
What was that guy’s name again?
Take a minute and write down your own first impression sound bite:

Now, although talking with someone in person or on the phone is often

how we build a first impression, it’s likely, in today’s fast-paced world, that
our first point of contact with many of our next-generation clients will be in
cyberspace. To underscore this, according to the 2005 National Association
of Realtors Profile of Home Buyers and Sellers, 77 percent of all buyers used
the Internet as their primary information resource. So how do you build a
good first impression online? Let’s find out.

L E A R N I N G O P P O R T U N I T Y

First impressions are crucial to mastering presentation skills. Super-

stars work hard to improve their appearance, tone of voice, and con-
tent to create a positive first impression.
58 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

The Million-Dollar Standard. By being prepared to meet with a million-

dollar client at any time, strong agents can improve their confidence
level by always looking their best.
Punching up your voice. By using the power of variation, tempo, and
timing, wise agents can keep their audience interested and engaged
in their presentation.
Content matters. By asking questions that relate to a client’s inter-
ests and needs, strong agents keep their client excited about building
a professional relationship.

The New Internet Interview

Imagine that you aren’t a real estate salesperson. Life is treating you pretty
good; you have a great job, great benefits, and great friends, but then sud-
denly your significant other lands a plum job in another state. It’s a career-
making opportunity that can’t be passed up, so unfortunately you will have
to sell your home and move.
As a buyer, if you log on to Google, the largest Internet search portal,
today, you can find over 355 million webpages that have something to say
about the topic of real estate. For real estate
professionals specializing in buyer represen- Home Buyers’ Use
tation, this ease of access to information of the Internet
• 79 percent of home buyers
can provide savvy agents with both a com- used the Internet as a source of
petitive edge and an incredible challenge, as information.
• 21 percent of Internet home
buyers, in order to sift through this literal buyers found their agent online.
mountain of available information, become • 75 percent of buyers who
searched online drove by or
virtual terminators, capable of blasting looked at a home they first saw
through websites faster than bolts of online.

greased lightning. In fact, according to re- Source: The 2005 National Association
of Realtors Profile of Home Buyers and
searchers at Carleton University in Ottawa, Sellers

online people are registering their likes and

dislikes in as little as a twentieth of a second based on their overall impres-
sion of a website’s home page. In addition, researchers have discovered a
‘‘halo effect’’ based on that emotional first impression that carries over to
cognitive judgments of a website’s other characteristics, including usability
and credibility.
Welcome to the new Internet interview. where you may be questioned,
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 59

probed, searched, and discarded without ever knowing that a client has even
come into contact with your company. Like shadowy ghosts, these anony-
mous Internet-empowered consumers float above your marketing, assessing
every aspect of your business before vanishing into a puff of virtual smoke,
never to be seen or heard from again.
‘‘It’s a constant struggle to move people out from behind a keyboard and
through the front door of our offices,’’ says Scot Spalding, managing broker
and Webmaster at All State Real Estate (www.allstaterealestate.com) in
Roseburg, Oregon. ‘‘We constantly have to be improving our website to be
competitive.’’
How many companies have you interviewed online? Hundreds? Thou-
sands? Tens of thousands? How many even knew you had evaluated them?
Close to none, right? The company had to make a terrific first impression
and then offer you something interesting enough for you to take the next step
and make contact with it. So how can we do the same for our own website
visitors? Often the first step for real estate professionals is knowing what it
is buyers want when they visit a website.
According to a study done in 2006 by the California Association of Real-
tors, entitled the ‘‘Internet vs. Traditional Buyer Study,’’ it was found that
buyers primarily visit a real estate website to find information on specific
homes and to conduct neighborhood research. Because of this, tech-savvy
agents make their property search engine easy to find by placing it front and
center on their home page (see Figure 3-2). The importance of this technique
is further supported by the 2005 National Association of Realtors Profile of
Home Buyers and Sellers, which states that the number one item that buyers
want from a real estate professional is help in finding the right home to
purchase.
So why wouldn’t a buyer just log on to Realtor.com and see virtually
every listing in North America? They do. According to the CAR study, 80
percent of Internet buyers who eventually purchase a home visit Realtor.com,
but many (73 percent) also visit specific real estate company websites, and
58 percent view individual agents’ websites. Interestingly, when asked, In-
ternet buyers prefer to deal with local or regional players in their area of
interest, most likely because of the perceived value of doing business with
someone who knows the intimate details about the local area market condi-
tions.
In addition, the CAR study found that the top three items that buyers
60 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 3-2.

listed as important on an agent’s website were more (and better) photos (78
percent), more detailed descriptions of the properties they had viewed (77
percent), and more virtual tours (47 percent). To stand out in the luxury
home market, Roberta Baldwin uses her website, www.njdreamhouses.com,
to appeal to all of these buyer requests and much more (Figure 3-3). Like-
wise, Anthony Marguleas, owner broker of A.M. Realty Inc. in Pacific Pali-
sades and Pasadena, California, has found that having an Internet strategy
can pay huge dividends. His team spends $75,000 a year on Internet market-
ing but yields an impressive $50 million in sales volume per year as a result.
He and his 10 sales associates use two virtual assistants to enter Internet
leads generated from his website, www.homebuyersonly.com, and other sites
into a biweekly e-mail marketing campaign.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 61

FIGURE 3-3. COPYRIGHT  ROBERTA BALDWIN.

What about sellers? For agents who focus on the listing market, a website
is still critically important. Consider for a moment the psychology of selling.
What is a seller’s first step when considering making a real estate change?
For many, it would be to start daydreaming about their next home. Because
of this, many people begin searching for their ideal replacement property
online long before they have placed their home for sale.
As Kellie Jones, a broker-associate with Century 21 Superstars in Santa
Margarita, was quoted in Realtor Magazine Online, ‘‘If I can get the phone
number and a face to face meeting [after the client visits her site at www
.kelliejones.com], I can usually get the listing.’’ Strong agents like Kellie are
experts at converting buyer leads into seller listings. They have discovered
the not-so-secret truth that many buyer leads are in fact seller leads in dis-
guise. An equally important consideration is that many tech-savvy sellers,
62 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

when considering whom to hire as their listing agent, will first visit a prospec-
tive listing agent’s website to conduct a virtual ‘‘interview.’’ Because of this,
Joseph DeLorenzo (www.sellmyhome101.com) uses a unique approach of
providing sellers with valuable information through a virtual classroom
where sellers can learn about critical aspects of marketing their home and
what Joe can offer.
To ensure that your website will make a strong first impression and stand
up against even your toughest competitors, follow these simple guidelines
from Stanford University based on three years of intensive research, and
interviews with over 4,500 people:

Stanford University Guidelines for Website Credibility

(Adapted for Real Estate)
1. Make it easy to verify the accuracy of the information on your site. Super-
stars often build their site’s credibility by providing third-party support
(citations, references, source material, and testimonials) for any infor-
mation they present. Even if people don’t follow these links, you’ve
shown confidence in your material. For example, to find reams of in-
formation on housing statistics, check out www.realtor.org, www.nahb
.com, or www.census.gov.
2. Show that there’s a real organization behind your site. Many agents ac-
complish this by posting a photo of their office location along with
driving directions, a map, or even a satellite image of their location.
For a quick and easy satellite photo of your office (and your listings),
check out www.earth.google.com.
3. Highlight your expertise. Wisely, many agents demonstrate their exper-
tise by listing their membership in councils, their accreditations, and
their certifications, like ABR, CRS, and GRI. For instance, linking
your website to www.rebac.net can highlight your expertise in buyer
representation.
4. Show that you are honest and trustworthy. To convey a sense of honesty
and trustworthiness, many agents use only the highest-quality images
and text to describe their services. To add high-quality images to your
website, consider using www.gettyimages.com, a website that boasts a
database of over a million photographs. In addition, many agents post
a brief biography of themselves and each team member.
5. Make it easy to contact you. A simple way to boost your site’s credibility
is by posting contact information in a prominent position on each page
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 63

of your website. In addition, many communication companies like

www.genutec.com can provide agents with one-stop calling solutions
and real-time website client communication platforms to make it even
easier for users to find you.

The Stanford study also found that it is helpful to design a site that not
only looks professional but is extremely easy to use, as website designers
often have a tendency to build sites that may dazzle high-end users but can
turn off a typical buyer. The study concluded by recommending that the
content within a website be updated often in order to be viewed as credible
and timely, with special attention being paid to avoiding errors of all types,
including typographical errors and broken links.
These critical components can help create a website that has ‘‘flow,’’ a
term coined by Dr. Mihaly Csikszentmihalyi in his book of the same title.
Andrew King, a respected author and founder of the websites www.web
reference.com and www.javascript.com, agrees: ‘‘Flow is an ‘optimal experi-
ence’ that is ‘intrinsically enjoyable.’ Responsive, well-designed websites can
induce a flow state in their users.’’
How can you ensure a sense of flow on your website? One way may be
to follow these simple design tips from www.weboptimization.com:

• Speed and simplicity. Create web pages that load quickly and easily
by using an uncluttered layout. Many agents choose to minimize
animation, which can often distract users with a limited attention
span.
• Feedback and clear navigation. Provide fast feedback for links and
site navigation (menus) by including ‘‘signposts’’ such as site maps
to help clients find their way around your website.
• Match the site to the end user. Many user-friendly websites can adapt
to their clients’ needs by offering varying download speeds, different
font sizes, and even multiple languages.
• Avoid cutting-edge technology. Cutting-edge technology often gets in
the way of user goals. Research shows that users don’t want it; in-
stead, they just want to receive their requested information.

Strong agents actively manage their business brand by carefully orches-

trating every aspect of their corporate identity, including their Internet strat-
64 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

egy, because they know that at this very minute someone, somewhere has
just logged on to Google and is now looking for his next home.

L E A R N I N G O P P O R T U N I T Y

Internet first impressions. Studies have found that our clients can
form an impression of our website in as little as a twentieth of a
second.
Buyers and sellers. Both use the Internet as a way to ‘‘interview’’ po-
tential agents. By understanding how they use agent websites, we
can build a stronger first impression.
Credibility. By following simple guidelines, agents can create a web-
site that helps consumers feel more relaxed and confident about
using their services.
Flow. Using simple design principles, any agent can make her website
easier to navigate and user friendly, and a website that flows is likely
to attract more users.

Building a Brand Presentation

Congratulations, you have just been nominated for your first Oscar! I guess
all those acting classes in college finally paid off. Unfortunately, the cere-
mony is tonight, and you can’t make it because you’re on location with Vin
Diesel in Bangladesh. (Blast!) On such short notice, your agent has informed
you that you have only six choices to act as your stand-in to accept the award
on your behalf. Your choices are Corey Feldman, Mickey Rourke, Farrah
Fawcett, Robin Williams, Tom Hanks, and Susan Sarandon.
So who would you choose to represent you on Oscar night?
In a classroom setting, the overwhelming majority of my students choose
either Tom Hanks or Susan Sarandon. Why? They are extremely well re-
spected, likable, and credible actors. They won’t embarrass you, make fools
of themselves, or run off with your statue. In other words, they would repre-
sent you well.
Our clients go through a similar process. This is sometimes known as the
ego-driven decision. This ego-driven decision-making process can be influ-
enced by many factors, but it can be boiled down into one sentence: Your
image is a reflection of their image. And your image is called your brand.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 65

When companies sell a brand name like Gerber, Sony, or iPod, they’re
really selling what those names represent. Clients buy into a sense of familiar-
ity, trust, and quality when they buy a brand name. This is exactly why movie
studios will pay people like Russell Crowe, Reese Witherspoon, or Julia Rob-
erts tens of millions of dollars to star in a new motion picture. They are
brand names. Audiences know what to expect, they are comfortable watching
them act, and they trust the actor to deliver a good performance.
So if we haven’t yet won an Oscar, how do we create a strong profes-
sional brand? According to the Small Business Administration (www.sba
.gov), there are three aspects to building a successful company identity. The
first is understanding the concept of building brand equity, the second is
finding a brand personality, and the third is cultivating a brand reputation
(see Figure 3-4). Let’s take a look at each of these components individually.

Brand Equity
A brand’s equity is considered its value or worth. Like other business assets,
such as furniture, fixtures, and equipment, a brand name has its own unique
valuation. For instance, what would you pay for just the brand names of

FIGURE 3-4. BUILDING A PROFESSIONAL BRAND

Brand Equity

Brand
Personality

Brand
Reputation
66 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Pepsi, IBM, or Disney? No doubt many wise investors would pay millions of
dollars for any of these iconic names. Why? The names themselves have
tremendous value.
The importance of branding has become so fundamental to American
business that it is often the first consideration when companies fund new
ventures. Brands like Joe Boxer, Leapfrog, and Sierra Mist—names that didn’t
exist 10 to 15 years ago—are now ingrained in our culture and instantly recog-
nizable. How did that happen? With a carefully planned presentation of their
product combined with an aggressive marketing plan targeting a very specific
audience.
When you use either your own name or a name you have created, such
as Judy McCutchin’s hugely successful www.dallashomes.com (Figure 3-5)
as a brand, the brand must be treated as an asset, perhaps the most valuable
company asset you will ever own. Every success adds value to the brand, and
every misstep can sharply affect your equity as well. A great example of the
power of brand equity is Martha Stewart. Her public company, Omnimedia,
worth $2 billion at its peak, saw its share price fall by 60 percent because of
an insider-trading scandal involving Martha and her close friends that first
emerged in June 2002.
In building your own brand equity, it’s always wise to follow the path of

FIGURE 3-5.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 67

companies that have already blazed a trail both inside and outside of the real
estate industry because, as has been said many times, success leaves clues, and
failure follows a pattern.
To determine what superstar brands are worthy of study, Landor Associ-
ates, a brand and design consultant in San Francisco, teamed up with Brand-
Economics to discover the 10 breakaway
brands of the 2000s. To accomplish this Ten Breakaway Brands
feat, they commissioned a study of 9,000 and Their Value Increase
consumers from 2001 to 2004. In asking from 2001 to 2004
• iPod: $1.3 billion
consumers what they thought of 2,500 U.S. • DeWalt: $775 million
brands, they measured two distinct proper- • Leapfrog: $236 million
• Subway: $1.8 billion
ties: differentiation and relevance. Differen- • Gerber: $153 million
tiation measures how well the brand stands • BP: $3.3 billion
• Eggo: $58 million
out in a crowded market, and relevance • Sony Cyber-Shot: $595
million
measures whether the product will actually • Google: $21.3 billion
meet the consumer’s real needs. For exam- • Sierra Mist: $131 million
ple, a Gulfstream jet has terrific differentia- Source: Fortune, October 2005/Landor
Study.
tion but very little relevance because most
of us don’t have the means to buy one (yet); on the other hand, Kleenex is
something that almost anyone can use, but a gazillion companies now make
facial tissues, so it has very little differentiation. The strongest brands have
found ways to give their customers both.
So now here are the tough questions: Have you carefully cultivated your
services by differentiating them from those of others in your marketplace?
Are you demonstrating your relevance to potential clients as an agent who
delivers results? Is your brand name recognizable in your community as a
result of a consistent, well-thought-out marketing plan?
Strong agents set the stage for presentation success by exposing their
potential clients to a quality brand. One way to powerfully influence their
decision is by deciding on your brand’s personality.

Brand Personality
When I walk through the doors of the Mandalay Bay Casino in Las Vegas,
the first thing I do is take a deep breath. Not because I can finally relax, but
because the place has a certain smell: tropical, fresh, clean . . . inviting?
Honestly, I can’t quite put my finger on it, but I can tell you this: I like it. I
could go on and on about the other amenities that the hotel offers, like eating
68 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

at the Russian-themed restaurant Red Square, or listening to music at the

House of Blues, or savoring a glass of wine in the huge Romanesque spa. The
sandy beach, lazy river, and huge wave pool don’t hurt, either. But at the end
of the day, when I’m on the plane flying home, the thing that I miss most,
and that I long for again, is that smell. Weird, right?
Not really. Great brand managers have found my strange olfactory fasci-
nation to be a new beachhead for building consumer loyalty, excitement,
and desire—building a brand personality. Contrary to popular belief, many
companies have found that the service economy has already peaked. As auto-
mation, obsolescence, and offshoring have eroded the value of many prod-
ucts and services within the U.S. economy, it has become all too common to
watch once-thriving companies (and whole industries) fall under the weight
of commoditization and price-based competition. To fight back, fleet-footed
business innovators have embraced a unique solution, known to many adver-
tising executives as experience-based marketing, or just experience marketing.
Experience marketing, or building a brand personality, involves surrounding
your products and services with experiential value, the key to which is creat-
ing a meaningful emotional and sensory experience that a consumer will be
excited to have happen again.
For instance, most of us know that Nordstrom’s sells fashionable cloth-
ing, shoes, and accessories to a market that includes upper-middle-class to
affluent customers (a finicky bunch). At the
center of the Nordstrom’s brand is finding Nordstrom’s
ways to tempt its customers to return to the Experience Marketing
• Champagne Receptions
store. How? One way is by using experience • Gown Shows
marketing to attract floor traffic, including • Desert Receptions
• Cocktail Receptions
hiring DJs and hosting cosmetic events, • Fragrance Festivals
fashion shows, and invitation-only sales. Of-
fering multisensory experiences, Nordstrom’s has found, turns shopping
from something that many consumers dread into something that they relish.
Likewise, according to USA Today, Whole Foods grocery stores enjoyed a 15
percent jump in total sales during 2005, whereas the average supermarket
grew by just 1 percent. How did Whole Foods do it? One way is by carefully
managing its customer experience and its brand personality. At Whole
Foods, customers can enjoy a chocolate strawberry fountain, choose from
150 fresh seafood items, and even sample some wine on the way out of the
store. Like Nordstrom’s, Whole Foods has mastered managing the customer
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 69

experience. It is these types of companies, the ones that avoid the tendency
to homogenize and converge on one boring piece of middle ground, that
consumers prefer to do business with.
You might ask, ‘‘How can I apply this to building a successful brand
personality and building a better real estate presentation?’’ One start, accord-
ing to Martin Lindstrom, author of Brand
Sense, is to ask what feelings or emotions Sensory Brand Audit
your brand personality evokes when a po- Desire: Attraction or repulsion
Arousal: Energized or irritated
tential client is exposed to your marketing. Dominance: Empowered or
Superstar agents are experts at creating inadequate
Delight: Happy or sad
a desire in clients to do business only with Fulfillment: Contented or
anxious
their brand. They do this by offering their Calm: Peaceful or bored
clients and customers a powerful brand per- Martin Lindstrom, Brand Sense, 2005.
sonality, one that rings true throughout
every ‘‘touch’’ the client has with their microcompany, including a presenta-
tion. Check out how Florida real estate agent Patty Willis (www.pattywillis
.com), after teaming up with The Agent Design Firm (www.theagentdesign
firm.com), successfully created an integrated theme throughout her entire
marketing plan (see Figure 3-6). From her business cards to her personal
brochures, website, and postcards, she has created a consistent look and feel
for her brand. Her brand has a personality.
Looking at Patty’s marketing, you might assume that she has been in the
real estate business for a long time. Not true. Patty is a relative newcomer to
the real estate business, but she has already made her mark in the luxury
home market, in part by building a strong brand name. Consider how this
will affect her credibility when she is sitting with a client during a presenta-
tion. No doubt her clients will get the sense that Patty is committed to a
long-term, successful career in the real estate business.
In addition to using traditional print marketing to build a brand personal-
ity, many agents are now using technology to enhance their company identity
by hosting blogs and broadcasting podcasts. A blog is a cross between a
website and a daily diary or log. A great example of a popular real estate
blog is www.raincityguide.com. At this blog, a group of dedicated real estate
professionals update a constant stream of relevant data about the Seattle real
estate market. Potential clients and blog visitors can ask questions, partici-
pate in active discussion threads, and review downloadable bits of data, tips,
and statistics about the marketplace in real time. Rather than being a static
70 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 3-6.
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 71

page of marketing information like a website, a blog offers an interactive

exchange of information among all the users, with a moderator (you) to help
keep the information organized (and appropriate). To start your own blog
(for free), check out www.blogspot.com.
Perhaps you’re more of a Larry King fan; you enjoy the radio. A podcast
is like a radio broadcast, except that instead of sending your signals over the
airwaves, you send them through the Internet. Podcasts are made possible
through the use of RSS, or Rich Site Summary, an XML format that creates
portable audio files that can be distributed in the MP3 format and played by
virtually any portable media player and computer on the planet. Yes, for a
few dollars a month at host sites like www.audioblog.com, virtually anyone,
including you, can start wearing red suspenders and have your very own
soapbox. Brad Korn and his team in Kansas City use their regular podcasts
to keep their clients up to date on market trends and moving tips (see Figure
3-7).
Brad also uses his podcast as a way to build relationships with customers
whom he hasn’t even met yet by posting his podcast on his website and his
blog. According to Brad, his team receives 15 to 20 quality leads a month,
many of which result in a buyer or seller presentation.
So now that you are on your way to building strong brand equity and a
unique brand personality, it’s time to defend, nurture, and grow your brand’s
reputation.

Brand Reputation
Have you ever heard the term soft opening? It’s what happens when a restau-
rant, hotel, or business opens before it is really ready to do so. The idea is to
work out the operational kinks with a limited audience before the ‘‘grand
opening.’’ The theory is that by sacrificing a few clients early, you can start
the cash flow rolling, and down the road, when the business is running

FIGURE 3-7.
72 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

smoothly, you can overcome any negative press that resulted. This is not
unlike the way many real estate agents run their business. They dive headfirst
into the deep water and start splashing around in hopes that they can keep
their business above water. These agents often take a short-term view of their
business and their need to close immediate sales, with no regard for their
business horizon or the long-term consequences of their actions.
But is this a wise decision? Probably not, as according to the 2005 Na-
tional Association of Realtors Profile of Home Buyers and Sellers, it was
found that the most important factor by far in choosing a real estate profes-
sional was an agent’s reputation (41 percent for buyers and 57 percent for
sellers). Positive or negative, good or bad, our customers’ overall satisfaction
is not the result of one great meeting but of the entire history of our profes-
sional relationship. It is the cumulative effect of these contact points over a
period of time that becomes your brand’s reputation. Every interaction, then,
that your brand has with a customer is a touch point, holding the potential
to carry the brand flag and create either another in a long line of positive
interactions with a customer or the place where your business crashes head-
first into the rocks. As Lord Jeffery once said, ‘‘A good name, like good will,
is got by many actions and lost by one.’’
On the flip side of this discussion is the realization among veteran agents
that just as our clients choose us based on how well we will represent them
in the marketplace, the reverse must also be true. This means that strong
agents don’t accept weak buyers, the ones who will never close a transaction
or who consistently make ridiculously low offers, nor, for that matter, do
they accept sellers who dramatically overprice their property or who won’t
cooperate with showings. Why? Because working with weak clients is a bad
reflection on a strong agent’s brand.
Summing up the importance of managing a real estate agent’s brand
reputation, NAR (National Association of Realtors) senior economist Paul
Bishop had this to say: ‘‘Word-of-mouth recommendation is the most com-
mon way to learn about real estate professionals. The most important crite-
ria, whether you’re buying or selling, are the individual agent’s reputation
and their knowledge of the local market.’’
Obviously your brand can and will affect your client’s first impression of
your company and will directly affect the consumer’s choice when she is
interviewing you for the position of representing her in the marketplace. Yet
even the strongest agents—the superstars who have built tremendous brand
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 73

equity, a fantastic brand personality, and a great brand reputation—can still

blow it by failing to connect with their clients. To avoid becoming the ‘‘New
Coke’’ of the real estate world, let’s take a look at engaging the client.

L E A R N I N G O P P O R T U N I T Y

Branding. Strong agents strive to create a company identity, a pro-

fessional brand. A well-managed brand can help clients buy into a
sense of familiarity, trust, and quality when buying new products and
services.
Three Components of a Strong Brand
1. Brand equity. A brand should be treated as a company asset that
has tremendous value. Every success and failure can add value to the
overall brand or reduce its value.
2. Brand personality. Successful brands have their own personality.
Strong agents create an integrated marketing approach to show off
their signature style.
3. Brand reputation. Preserving a high-quality brand reputation is ex-
tremely important, as it is the number one reason clients choose an
agent.

Engaging the Client

Are you pushing or pulling business?
This question may seem like the beginning of one of those philosophical
discussions that may be interesting but really doesn’t help you make more
money. But if money is the issue, then this may be the most important ques-
tion you ask yourself all year.
Why? Because one of the biggest companies in the world asked itself this
very question a few years back, and it discovered that it had the wrong an-
swer. What’s more, to fix the problem would cost time, effort, and energy,
and it would shake the company to its very core. The company was Wal-Mart,
and the challenge was the age-old problem in retailing of stale inventory.
The challenge for Wal-Mart had always been how to manage inventory
so that each store could maximize its profits. Since the dawn of retailing,
the sales cycle had virtually remained unchanged. Manufacturers produced
74 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

products; stores then acquired the products and stocked their shelves in an
attempt to sell the items to customers. In effect, then, the manufacturers
pushed the products to the stores, and the stores then pushed the products
onto the shelves, and hopefully into customers’ shopping carts.
Unfortunately, this process has some inherent flaws, the most problem-
atic of which is: What if the customer doesn’t want what you’re pushing? To
deal with this problem, Wal-Mart decided to completely rebuild its sales sys-
tem. The company began by computerizing its entire distribution system (a
massive undertaking that other companies, such as its archrival at the time,
Kmart, scoffed at). By computerizing each store, the company could in-
stantly identify exactly which products were selling, how quickly, and for
what margins. It also began to ask customers which products they would like
to see on the shelves, and which products they didn’t really have a need for.
In the end Wal-Mart pioneered the concept of pulling from the customer.
By watching for trends, margins, and customer input, Wal-Mart was able to
reverse the retailing model. Today Wal-Mart is able to pull from the manufac-
turer exactly the products that it knows will sell. Instead of buying blind, it
works with producers to build products that it knows will have a high likeli-
hood of selling in its stores.
So how does this apply to real estate? How can we reverse the selling
cycle?
When you look at most markets, many agents and brokerages are push-
ing their services. In many cases, these are the same services that have been
pushed to real estate consumers for decades. For instance: List your home
with me and I’ll place your listing in the MLS system, or I’ll hold open
houses, or I’ll have a broker tour. But here is the big question: What is it that
your client actually wants from you?
Superstar companies and agents reverse the sales cycle by pulling from
the consumer. They discover exactly what it is that buyers and sellers want
from them in their market and then deliver on those needs. To lead with
the client need, top producers often have to throw out old assumptions and
traditions and accept that today’s sophisticated buyers and sellers may have
a completely different set of priorities from that of their predecessors.
So how can you pull from your customers and clients what they really
want? Perhaps the easiest way, and the path used by some of the top compa-
nies in America, is to simply ask your clients what it is that they want. Here
are five questions to ask your clients before, during, and after a transaction:
IMPACT: THE POWER AND IMPORTANCE OF FIRST CONTACT 75

1. What services did you find most valuable during the transaction?
2. Can we improve these services in any way?
3. What services should we consider adding?
4. When choosing a real estate professional, what was your biggest moti-
vator?
5. What are three ways in which we can improve.

Imagine for a moment that every client who came into contact with your
company was presented with these five questions, by either phone, mail, or
e-mail. Would all of them provide meaningful answers? Not a chance. But a
few would, and wouldn’t that be a powerful first step in pulling from your
clients exactly how you can help them best?
Carl, a $7 million producer in San Diego, California, did just that and
discovered that what his clients really wanted was more of his time. No
surprise there, but when he questioned his clients further, he found that what
they were really after was better communication about what was happening
(or not happening) each week in the marketing of their home. To address
this dilemma, he put together a simple e-mailable form like the one shown in
Figure 3-8 to update his clients on all the activity on their home every seven
days. He now uses this as a way to differentiate his services when interview-
ing for new listings. As he puts it, ‘‘Clients love the idea of getting constant
feedback. I know my closing ratio has gone way up as a result of this one
idea.’’

L E A R N I N G O P P O R T U N I T I E S

Pushing vs. pulling. Strong agents don’t push services. Instead, they
discover exactly what it is that buyers and sellers want from them in
their market and then deliver on those needs.

As many agents have discovered, one of the upgrades that is most re-
quested by consumers is a higher-quality presentation, including a descrip-
tion of what to expect during a transaction, high-quality consultation and
advice, and a thorough explanation of the agent’s services and fees.
To meet this new standard let’s set the stage for success by diving into
Chapter 4, ‘‘Building a Master-Level Presentation.’’
76 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 3-8.

Marketing Update
Listing ID: 1234567

Listing Address: 1332 Johnson St.

Clien Name: John Smith

Marketing Period: 06/10/06–06/17/06

Website Activity: www.superstar.com (Link Attached)

Page Views: 36
E-mails: 4
Virtual Tours: 12

Additional Websites: www.realtor.com, www.company.com, www.mis.com

Local Print Marketing: San Diego Daily (Ad Attached)

Number of Calls: 11
Number of Appts.: 3

Regional Print Marketing: California Real Estate Guide (Ad Attached)

Number of Calls: 31
Number of Appts.: 5

Sign Inquiries:

Number of Calls: 12
Number of Appts.: 2
Call Capture: 12
Flyer Box: Restocked
Talking House: Transmitter Working

Open House: Scheduled: 06/24/06

Showing Following Up: 22 Showing E-mails Sent/Responses Attached

 C H A P T E R 4

Building a Master-Level
Presentation
The most important tool in every real estate agent’s utility belt should
be his listing presentation. Think of it as a universal tool, like a real estate
Swiss army knife, that can be used to help buyers and sellers wade through
complicated issues, unravel vexing questions, and escape MacGyver style
from difficult situations.
For superstars, the real estate presentation is the hub of their conversa-
tion with any new client. It keeps them focused, and it enables them to move
the presentation forward. The best thing about a strong presentation is its
simplicity. Great presentations are never complicated. They are clean, con-
cise, and extremely easy to follow. For a top-producing real estate agent,
there are three key elements to every successful seller presentation. To keep
it simple I call them the three Ps, otherwise known as price, product, and
promotion, as shown in Figure 4-1.
Let’s take a look at each of these individually, in order of importance:

• Price. The number one reason why a home will or will not sell is its
price. This should be the first major discussion point in any listing
presentation. Many things contribute to the price of a property, in-
cluding what terms the sellers are offering, the speed of the sale, and,
77
78 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 4-1. THE THREE Ps OF SELLING A HOME

Price

Product
=
Promotion

of course, most important, what other homes in the area are selling
for.
• Product. Every home becomes a product the moment a ‘‘For Sale’’
sign is placed on the lawn. Sellers should be encouraged to improve
their home’s condition to increase their odds of securing a buyer.
Top condition typically equals top price; on the other hand, a home
that is in poor condition can have a problem finding a buyer unless
the price is discounted to compensate for the needed repairs.
• Promotion. This is where a professional real estate agent’s job begins.
Top producers demonstrate to sellers how they will expose the listing
to the widest possible group of buyers in the marketplace.

If you were to strip away all of the frills, the tassels, and the fanfare from
your listing presentation, what should be left, standing naked in the breeze,
is the three Ps. Without a discussion of these main points, an agent’s listing
presentation is nothing more than empty calories; sure, it might be fun to
eat, but an hour later the client may get hungry and go hunting for something
more substantial, like another, more qualified agent. To avoid this fate, check
out the three-legged table discussion, and how easy it is to begin a conversa-
tion centered on the three Ps.
It sounds easy enough, right? It isn’t really. The problem is that agents
BUILDING A MASTER-LEVEL PRESENTATION 79

The Three-Legged Table Discussion

You know, Mr. and Mrs. Seller, the ability to sell any home really rests on three major issues.
I call them the three Ps. Imagine a three-legged table, with the ability to sell your home being
the top of this table; each of these three Ps represents a leg. If one of these legs is out of
alignment, your home may never sell.
The first leg is the price you set on your home. This is the number one reason why a
home will or will not sell.
The second leg is the product, which is the home itself. Your home will be competing
with many other listings for a buyer’s attention.
The third leg is the promotion of the property. This is where I step in to market the
property to all of the available buyers in the marketplace.
Can we spend just a few minutes talking about each of these key issues?

can talk to a seller for hours and hours about everything from baseball to
Venezuelan politics and never get around to discussing the three core reasons
why a client’s home will either sell or sit like a holiday fruitcake in the back
of the real estate market pantry. Whether they’re avoiding the tough issues
or simply ignorance, agents who fail to discuss the key components of a
successful real estate sale are putting their clients’ interests at risk and, in my
mind at least, perhaps even violating their fiduciary duties. Believe it or not,
when agents fail to discuss price, product, and promotion with their sellers,
they should be held accountable. Heresy, you say. I know it’s easier to just
blame the dumb client for overpricing the property, or for not cleaning up
the front lawn, or for making the property hard to show. But is it the client’s
fault, or is it yours for not pointing out specifically what it will take to sell
the home? Remember, you agreed to take the listing.
Strong agents have strong discussions with their clients about exactly
what it will take to sell their home. They use what I like to call gentle brutal-
ity, a consultative yet pragmatic approach of explaining to sellers what the
realities of the market are and how they can best achieve their real estate
goals. As Sandra, an agent from North Dakota, explains, ‘‘My clients don’t
want to be placated or whitewashed. They want me to tell them the straight
scoop on what it is going to take to sell their property. No beating around
the bush!’’ This fresh approach to a seller meeting is a key component in
something that I call the 100 percent seller solution.

L E A R N I N G O P P O R T U N I T Y

The three Ps of selling a home. The three biggest reasons why a home
will or won’t sell are price, product, and promotion. Strong agents
80 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

center their presentation on these key discussion points to ensure

that they secure a salable listing.

The 100 Percent Seller Solution

During my second year in the business, I was given a crash course on posi-
tioning homes to sell. In that year, I was fortunate enough to take 150 listings
in one 12-month period of time. One thing
I learned by taking all of those listings was 74 Percent
that to succeed in selling all of that inven- of sellers list their home with the
first agent they contact.
tory I would need to take a different ap-
2005 National Association of Realtors
proach to delivering my listing presentation. Profile of Home Buyers and Sellers.
Showing up with a yellow legal pad, a mea-
suring tape, and my coffee-stained smile just wasn’t going to work. Sure, I
could almost always get the listing, but, as I quickly learned, getting the
listing wasn’t good enough, because in 1989, in my market, over half the
listings taken would fail to sell the first time they were placed on the Multiple
Listing Service (MLS).
A 50 percent failure rate should be unacceptable, but surprisingly, many
of the training systems at the time encouraged agents to embrace this statistic
with open arms as a fact of life. To succeed, they would tell us on tapes and
in their books, you just make it up on volume. Expect to take two listings for
every one that sells. Work twice as hard for half the money, and you are
bound to be successful; after all, it’s just a number game. What about all
those disappointed clients whose homes didn’t sell? Forget about them and
prospect harder.
Honestly, I’m not so altruistic that I couldn’t live with a few disappointed
clients, but half ? I just couldn’t stomach the thought of wasting half my time,
half my energy, half my marketing budget, and half my life failing half my
clients. So as I contemplated this dilemma one hot summer day before setting
out on yet another listing appointment, I made a decision: My presentation
that morning would be different. I would offer these clients something that I
came to call the 100 percent seller solution, which is simply the idea that
every listing I take should sell (what a concept!). In addition, I further con-
cluded that unless I honestly believed I could sell the home, I should reject
the client’s listing.
BUILDING A MASTER-LEVEL PRESENTATION 81

Reject a listing? I know, I know. But don’t go running for your defibrilla-
tor yet; consider the alternative: I take a listing that I know probably won’t
sell anyway. For a top producer, it just doesn’t make good business sense to
take a listing just to take a listing. For strong agents, a stagnant listing, one
that has been on the market for what seems like decades, can be extremely
embarrassing—it’s almost like paying a guy to stand on the lawn of your
listing with a bullhorn screaming to every car that drives by, ‘‘This agent can’t
sell this house!’’ or, ‘‘Don’t list with Jim Remley because he takes listings but
he never sells them!’’ No, thanks. I prefer to sell listings, not just take them.
How do top producers introduce the 100 percent seller solution? Check
out this simple dialogue:

The 100 Percent Seller Script

Listen, you may not be aware of this, but most real estate agents fail
about half the time they take a listing. To me, that is just unacceptable;
my goal is to sell 100 percent of the listings that I take. In order to
accomplish this goal, I have to work quite a bit differently from most
agents.
So we can go two ways here: I can tell you what you want to hear,
or I can tell you the truth. Which would you prefer?
Follow-up: Are you sure?

What would your answer be if you were the seller? As hard as it may be,
we all want to hear the truth, which coming from a salesperson can be espe-
cially refreshing, and perhaps even unexpected. So assuming that your client
has agreed to go behind the woodshed if need be to get the listing sold, what
do you do now? Let her enjoy a visual feast.

Creating a Visual Feast

If you visit Fort Ouiatenon in West Lafayette, Indiana, during the fall of
every year, you may just stumble upon the annual Feast of the Hunter’s
Moon, a dramatic re-creation of an event that took place in the year 1717,
when French fur traders, Native Americans, and British soldiers gathered
82 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

along the banks of the Wabash River to enjoy a bountiful harvest festival.
During the two-day event, participants can enjoy hearty meals cooked over
open fires, try their hand at crafts from the past, cheer on soldiers and mili-
tary competitors dressed in period costumes, learn lacrosse, and even enjoy
some home-made brew. Or instead you could visit the local library in West
Lafayette and read about the festival in a book.
Which would you prefer?
It’s an easy choice, right? We all want the E-ticket ride, with the big
loops, dips, and fast turns. No one wants the lame carousel. This is just human
nature. Our clients are the same way. They
don’t want a boring discourse about local Edutainer
real estate values; they want a visual feast of A person who can both
educate and entertain
information, an immersion into the real es- an audience.
tate market using an interactive, fun presen-
tation. To accomplish this goal, many top producers think of themselves as
edutainers, people who can educate and entertain a client at the same time.
One clear reason for this approach is the fact that attention spans are falling.
Many studies have found that the average attention span for an adult in today’s
fast-paced world is only about 20 minutes of sustained concentration. By keep-
ing a client interested, engaged, and involved in a presentation, moving from
one point to the next in a clear, concise manner that is interesting and very
specific to the client’s needs, wise agents are able to masterfully cover all of
the main points of their discussion and walk out of a home with not just a
listing but a salable listing.
How do they do it? For many top producers, the first step in designing a
powerful client meeting strategy is to embrace presentation software, and by
far the most popular presentation software in the world is PowerPoint by Mi-
crosoft (www.microsoft.com). One of the advantages of building a presenta-
tion using PowerPoint is that you can create a visually appealing, step-by-step
discussion of what it will take to successfully market a seller’s home; you can
then modify, customize, and adapt this presentation to any situation in just a
few minutes. Change a photo, add a web file, update statistics—you can do it
all with just a click of your mouse (even while you’re sitting in the seller’s
driveway). Check out the ways that many top producers use PowerPoint to
enhance their presentation skills:
BUILDING A MASTER-LEVEL PRESENTATION 83

Five Ways Top Producers Use PowerPoint

1. On a laptop. PowerPoint comes with a slide show feature that allows
users to advance slides as they are talking about each point in their
presentation. In addition, users can link slides to audio and video files,
and also to webpages.
2. As projected images. Using a compact LCD projector, many agents use
their PowerPoint presentation as projected images on a conference
room screen, a white wall, or even at the seller’s home. To see a catalog
of projectors, check out www.infocus.com or www.boxlight.com.
3. As a printed presentation. For their low-tech customers, many agents
print out their PowerPoint presentations and review a hard copy with
their prospective clients, which they can also leave at the seller’s home.
(That’s not a bad idea for a high-tech client as well.)
4. On a website. Using third-party software from companies like www
.articulate.com or www.pointcaste.com, agents can convert their Power-
Point presentations into Flash presentations complete with narration.
These files can then be stored on an agent’s website and be viewed by
virtually any Internet user with a high-speed Internet connection. Of
course, it may be wise to provide several teasers in the presentation to
give prospective clients a reason to get the presentation live.
5. On a disk. PowerPoint comes equipped with the ability to transfer your
presentation and narration to a CD. By using this feature, you can
hand out your listing presentation to virtually anyone you come into
contact with. Superstars are even professionally labeling their presenta-
tion disks using relatively inexpensive software and hardware from
companies like www.lightscribe.com.

Regardless of what presentation platform you adopt, whether it is a

PowerPoint file, a professionally printed booklet, or even just a three-ring
binder, the key to success is having a marriage of strong visual design and
fantastic content. Just like a professional athlete, not only do you want to
look good, but you have to be good.
For some ideas on how you might flesh out your own presentation I’ve
included a sample PowerPoint Presentation that was built using the three
cornerstones we discussed earlier: the three Ps of price, product, and promo-
tion (see Figs. 4-2 through 4-14). As you review each slide and the suggested
dialogue, take a minute to decide what you might use, reject, modify, or adapt
to your own personal style of delivery.
84 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 4-2.

Thank you for the tour of your home and for answering all my questions.
Do you mind if I take just a few minutes to show you how I work?

Selling Your Home

10
10 Keys
Keys to
to Sell
Sell Faster
Faster and
and for
for Top
Top Dollar!
Dollar!

The two top concerns I hear from my clients when they are selling a home is a
desire to sell faster and for top dollar. So I’ve outlined my top ten ideas to help
sellers accomplish those goals.

FIGURE 4-3.

The number one reason why a home will or won’t sell is the price. Because the
average buyer looks at between 12 and 15 homes, if your home is priced too high,
your home may never sell. On the other hand, if your home is priced too low, it may
sell quickly, but at a discount. At this point, which is most important for you: a
faster sale or a higher sales price?

Key
Key##11

Setting
Setting the
the Right
Right Price
Price

•• The
The average
average home
home
buyer
buyer looks
looks at
at
between
between 1212 and
and 15
15
homes!
homes!
BUILDING A MASTER-LEVEL PRESENTATION 85

FIGURE 4-4

There are always three prices for every home: what the seller would love to receive,
what the buyer would love to pay, and what the home will eventually sell for. One of
my jobs as your agent is to provide an in-depth pricing analysis of your home and
the entire market. Would you like me to start that process today?

The
The Three
Three Prices
Prices
The
The Asking
Asking Price
Price
What
Whatwe
wewould
wouldlove
loveto
tosell
sellfor!
for!

The
The Offered
Offered Price
Price
What
Whataabuyer
buyerwould
wouldlove
lovetotopay!
pay!

The
The Sales
Sales Price
Price
Market
Marketvalue
valuefor
foryour
yourhome!
home!

FIGURE 4-5

The real estate market can be influenced by many things: the competition, what
homes are selling for and what is for sale, the overall economy and the local housing
inventory ⬍add local information⬎, and the available financing options. May I have
my finance team put together some financing options for your home?

Key
Key## 22

Understanding
Understanding the
the Market
Market
•• Competition
Competition
zz What
WhatHas
HasSold
Sold
zz What
WhatIsIsfor
forSale
Sale
•• Market
Market Conditions
Conditions
zz Overall
OverallEconomy
Economy
zz Buyer/Seller
Buyer/SellerMarket
Market
•• Financing
Financing Options
Options
zz Interest
InterestRates
Rates
zz Owner
OwnerAssisted
Assisted
zz FHA/VA
FHA/VA––Low LowDown
Down
86 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 4-6

When your home goes on the market, it becomes a product. To ensure a faster sale
and a higher price, many sellers like to have advice on improving their home’s
condition, including areas like curb appeal, personal items, staging the home, and
helping the home tell a story.

Key
Key##33

Your
Your Home
Home the
the Product
Product
•• Top
Top Condition
Condition
zz Faster
Faster Sale
Sale
zz Higher
Higher Price
Price
•• Areas
Areas toto Consider
Consider
zz Curb
Curb Appeal
Appeal
zz Personal
PersonalItems
Items
zz Staging
Stagingthe
the Home
Home
zz Telling
Tellingaa Story
Story

FIGURE 4-7

One of my biggest jobs as your agent will be to expose your home to the largest
group of buyers possible.

Key
Key ## 44

Promotion
Promotion –– Marketing
Marketing
More
More Exposure
Exposure
zz Faster
Faster Sale
Sale
zz High
HighPrice
Price
zz Less
Less Hassle
Hassle

More exposure will lead to a faster sale, a higher price, and fewer hassles. My
company has developed a comprehensive marketing strategy to do just
that. In just the last 30 days we’ve sold these homes. ⬍Provide list.⬎
BUILDING A MASTER-LEVEL PRESENTATION 87

FIGURE 4-8

We cast a wide net in looking for a potential buyer for your home, including a mix of
the Internet, print advertising, the MLS system, and e-mail marketing to expose your
home to the widest range of buyers possible. Do you mind if I show you some
specific examples of each of these?

Casting
Casting aa Wide
Wide Net
Net
The Print
PrintAdvertising
Advertising
TheInternet
Internet
85% Newspapers
Newspapers
85%of
ofHome
Home
Buyers
BuyersGo
GoOnline!
Online! Real
RealEstate
EstateGuides
Guides

The E-Mail
E-MailMarketing
Marketing
TheMLS
MLSSystem
System
Thousands Top
TopProducers
Producers
Thousandsof
ofAgents!
Agents!
Statewide Active
ActiveBuyers
Buyers
StatewideExposure
Exposure

FIGURE 4-9

In addition, I often use other traditional methods for finding buyers, such as mailings,
open houses, signage, and tapping into my sphere of influence. But instead of doing
things the old-fashioned way, I like to be more progressive. Can I show you how
my team uses a unique approach to each of these areas?

Casting
Casting aa Wide
Wide Net
Net
Mailings
Mailings Open
OpenHouses
Houses
Just
JustListed
ListedMailings
Mailings Invite
Invitethe
thePublic
Public
Put
PutYour
YourNeighbors
Neighbors Special
SpecialMarketing
Marketing
to
toWork!
Work!

Signage Spreading
Spreadingthe
theWord
Word
Signage
30% Networking
Networking
30%ofof Our
OurCalls
Calls
Are
AreaaDirect
DirectResult
Resultof
of Sphere
Sphereof
ofInfluence
Influence
the
theSign!
Sign!
88 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 4-10

One of my biggest priorities is making sure that you always know exactly what is
happening with your listing. If we decide to work together, would you prefer a
weekly or bimonthly phone call (or e-mail)? We also send (or e-mail) a regular
written activity report to our clients along with all of the advertising copy.

Key
Key## 55

Communication
Communication
•• Consistency
Consistency
zz Regular
Regular Contact
Contact
•• Written
Written Reports
Reports
zz Mailed
MailedCopies
Copies
•• Advertising
Advertising Copy
Copy
zz You’re
You’reon
on the
theTeam!
Team!
•• Agent
Agent Feedback
Feedback

FIGURE 4-11

Staying in control of your home sale is vital. So once we find a buyer, I’ll help you
manage the entire transaction, including all of the details. ⬍Review⬎ If you like, I
can prepare an estimated net sheet of what to expect as the proceeds from
your home sale. How does that sound?

Key
Key## 66

Control
Control
•• Stay
Stay in
in the
the Driver
Driver Seat!
Seat!
zz Information
InformationIsIsVital
Vital
•• Details
Details Make
Make the
the Sale!
Sale!
zz Negotiating
Negotiating
zz Representation
Representation
zz Inspections
Inspections
zz Repairs
Repairs
zz Disclosures
Disclosures
BUILDING A MASTER-LEVEL PRESENTATION 89

FIGURE 4-12

One of the reasons I’m able to provide this level of service is that I have a strong
company behind me. We have a highly trained and motivated sales team, relocation
services, strong ties to the community, a home warranty program, and a great
support staff. Plus we provide our clients with a communication guarantee. Let me
show you what that means.

Key
Key## 88

Company
Company Benefits
Benefits
Home
HomeWarranty
WarrantyPlans
Plans
Highly
HighlyTrained,
Trained,Highly
Highly to
toProtect
ProtectBuyers
Buyersand
and
Motivated
MotivatedStaff!
Staff! Sellers
Sellersfrom
fromUnexpected
Unexpected
Repairs!
Repairs!

We
WeCan
CanHelp
Helpwith
withYour
Your Strong
StrongSupport
SupportStaff
Staffto
to
Relocation
RelocationNeeds!
Needs! Keep
KeepYour
YourFile
FileaaTop
Top
Priority!
Priority!

Event
EventMarketing
Marketing Communication
Communication
Means
MeansThat
ThatWeWeKeep
Keep Guarantee
Guarantee
Strong
StrongTies
Tiesto
tothe
the We
WeKeep
KeepYou
YouPosted
Postedon
on
Community
Community Every
EveryDevelopment!
Development!

FIGURE 4-13

A large part of my marketing strategy is to develop an advertising plan specific to

your home, including ⬍review list.⬎ May I show you some samples of plans I
have built for other sellers?

Key
Key## 99

Specific
Specific Marketing
Marketing Plan
Plan
•• Advertising
Advertising
•• MLS
MLS Tour
Tour
•• Photo
Photo Flyers
Flyers
•• Open
Open Houses
Houses
•• Signage
Signage
•• Internet
Internet Access
Access
•• Follow-up
Follow-up Plan
Plan
90 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 4-14

When I work with a seller, I provide a written pledge of all of the services I have
promised to you. If I don’t live up to my promises, the Seller Pledge allows
you to fire me and hire another agent. ⬍Check with your broker.⬎ Does
that sound fair?

Key
Key ## 10
10

Our
Our Guarantee
Guarantee

We
We pledge
pledge toto provide
provide all
all
of
of the
the services
services we
we
have promised to
have promised to youyou
in
in writing!
writing!

Strong agents use their presentation to organize their discussion and to

control the flow of the conversation with the client. Controlling the flow of
a meeting can often sound negative; when I hear the word control, I think of
being pinned to the ground in the fourth grade by a much larger third-grader
while he eats my Twinkies. But controlling a meeting in a professional sense
simply means that you keep the conversation focused on the client’s needs
and your solutions. As when you encourage your children to eat their peas
and carrots so that they can have a piece of chocolate cake, you control the
conversation and the overall direction of your meeting to ensure your client’s
successful home sale. Terry, a $5 million producer from Tennessee, agrees.
‘‘My presentation gives me time to think. I don’t have to wonder where the
conversation is headed next because I know what’s on the next page.’’
A planned presentation also forces us to anticipate questions, objections,
and concerns. For instance, when will a pricing question come up? Obvi-
ously, it will no doubt magically appear during the pricing pages. And a
question about curb appeal? Probably about the time the seller begins think-
ing about that stagnating pond in the backyard (which used to be the family
swimming pool) during your review of the condition pages. Strong agents
encourage these discussions.
BUILDING A MASTER-LEVEL PRESENTATION 91

Of course, this is sometimes easier said than done. I found this out as a
rookie agent during one of my early listing disasters, a presentation to a
senior couple in the dining room of their bungalow-style home. As I turned
to the last section in my three-ring binder, I finished by asking my one and
only question of the morning: ‘‘So would you folks like to list your house
today?’’
‘‘No!’’ The elderly couple said it in unison, loudly and with conviction,
as if the thought of me listing their house was so repugnant that they had to
spit it out.
What could I have done differently? Asked more questions. If you look
closely at the slide dialogues, you may notice that several pages ask the seller
a question. For instance, ‘‘May I have my finance team put together some
financing options for your home?’’ These are called engagement questions.
Engagement questions, sometimes known as trial closes, test the client’s
thinking process by regularly affirming the client’s desire to take the relation-
ship to the next level while also revealing lingering questions or concerns that
may prevent a client from moving forward. By learning to ask engagement
questions, strong agents can move from a presentation that is centered on
their own needs to a presentation that is focused on what the client actually
wants to discuss. Take a look at 25 of the engagement questions most asked
by top producers:

The Top 25 Engagement Questions

1. How does what I’ve said so far sound?
2. May I put together a pricing analysis for your home?
3. Tell me, which of these do you prefer?
4. What concerns you the most about selling your home?
5. What is important for you to talk about today?
6. Based on this information, what are your thoughts?
7. What ideally would you like to have happen?
8. May I have my finance team put together a package for your home?
9. Can I do some more research on that question and e-mail it over to
you?
10. Would you like me to continue, or do you have any questions?
11. How much time would you need to move after closing?
12. What areas would you like me to focus on?
13. May I take some photos of the home?
92 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

14. Do you mind if I do a home warranty inspection?

15. How much notice would you like before a showing?
16. What motivated you to buy this home?
17. What kind of advertising appeals to you?
18. May I put together a sample flyer for you?
19. When ideally would you like to be moved?
20. If what I said makes sense, are you ready to move forward?
21. May I do a curb appeal appraisal?
22. Where would you like a lockbox placed?
23. Where do you see a sign being placed?
24. May I review the paperwork with you?
25. How can I help you?

Having an active, focused conversation about what it will take to sell a

home may seem easy for you and me. But for many Americans, who unplug
themselves from society at five every evening, turn the TV on, and float free
in the warm waves of thoughtless indecision, it can be almost excruciating.
By using regular engagement questions, superstars can help snap their seller’s
attention back to the presentation at hand and get her thinking about what
will need to happen if her home is to actually sell. It’s also a great time to
feed her your presentation cake.

L E A R N I N G O P P O R T U N I T Y

Edutainer. Strong agents seem themselves as edutainers, people

who can educate and entertain a client while delivering real estate
information.
PowerPoint. Many real estate professionals use PowerPoint from Mi-
crosoft to build a visual presentation that can be adapted to many
delivery formats.
Planned presentation. A planned presentation provides a client with a
well-thought-out, focused outline of information that can help him sell
his house quickly and for top dollar.
Engagement questions. Sometimes known as trial closes, these
questions test a client’s acceptance of an agent’s presentation and
help to uncover questions or concerns.
BUILDING A MASTER-LEVEL PRESENTATION 93

Baking a Presentation Cake

During every seminar I deliver that involves the topic of a seller presentation,
there is always someone in every audience who will say, ‘‘Now wait a minute,
Jim, I don’t think my sellers really want me to do a presentation.’’
Yes, they do. According to ‘‘Housing Wealth Effects,’’ produced by the
Joint Center for Housing Studies at Harvard University and Macroeconomic
Advisers, LCC, housing wealth accounts for 36 percent of the nation’s tangi-
ble assets. With the average American saving only 3 percent a year (down
from 8 percent a decade ago), for most Americans a house is more than a
home; it is their largest financial investment, their retirement, their nest egg,
and their kid’s college education. So, yes, they want a professional planned
presentation. What clients don’t want is a canned presentation, and here is
where the fear for most agents lies.
A canned presentation is one in which a salesperson reads from a script
verbatim, with no deviations. Like the cookware salesperson at the county
fair, she pitches her wares and hopes to get as many customers to the counter
as possible.
‘‘Hey, friend, look at the way this knife slices and dices tomatoes. Don’t
let your wife near this one when she’s mad! Right, fellas?’’ (Wait for laugh.)
Watching anyone recite a canned presentation is painful, and it’s no won-
der that agents wince when they picture themselves doing any kind of pre-
pared presentation. But a planned presentation is not a canned presentation.
The goal of a planned presentation is to tailor the discussion to the specific
needs of the individual client. There are no canned speeches, no recitals. I
know what you’re thinking: But what about the dialogue? The dialogue is
simply an outline of what you should cover on each page. Should you memo-
rize it? Yes, just as a doctor must memorize medical terminology, an attorney
an opening argument, or a CPA certain sections of the tax code. Professional
real estate agents should memorize a professional presentation. But this is
not where they stop; this is where they begin. Superstars make their presenta-
tion deeper by applying two more layers to their presentation cake:

The Three-Layer Presentation Cake

• Memorize. Top producers use a planned presentation that they have

taken the time to memorize. Yes, as professionals, we do have to
94 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

memorize a script. If you want to be paid like a professional, you

have to act like a professional.
• Internalize. This simply means that you become so familiar with your
listing presentation that you know it forward, backward, and in re-
verse. The presentation becomes an extension of you. Just like a
quarterback with a football or a surgeon with a scalpel, you have to
know your presentation cold.
• Personalize. Because you have the power to personalize the presenta-
tion on the fly, you will be able to customize your discussion around
the seller’s hot buttons and provide the seller with a far more effec-
tive and powerful presentation.

Ask any group of superstars what separates them from the rest of the
agents in their community who are barely making a living, and the answer
may surprise you. They are simply better at the fundamentals, those simple
areas of an agent’s business that, when overlooked, disregarded, or ignored,
can spell disaster. Like professional athletes who go back to spring training
every year to get reacquainted with the basics, top producers hone their pre-
sentation skills by sticking to the fundamentals. While their competitors hit
the snooze button, wait in line for their muffins and coffee, or play just
one more game of solitaire, superstars are memorizing, internalizing, and
personalizing their presentations. They master the basics, the fundamentals.
So what are you thinking about when you’re sitting with a seller? Are
you relaxed, focused on the client, and truly listening to both his verbal and
his nonverbal cues, or are you in a state of sheer terror and barely hidden
panic? Agents who wing every client meeting and don’t think they need a
planned presentation often fall into the latter group. These agents are often
so consumed with trying to think up ways to convince the seller to do busi-
ness with them that they lose touch with the client himself. Superstars are
relaxed, calm, and completely in tune with their clients; they have moved up
to subconscious selling.
Subconscious selling is a state in which you don’t have to consciously
think about your presentation. In the same way that you don’t have to con-
sciously think about how to drive a car, ride a bike, or hit a tennis ball, agents
operating at a subconscious selling level have their presentations at the tip
of their tongue, hard wired. This peak state frees them to personalize their
BUILDING A MASTER-LEVEL PRESENTATION 95

approach to each individual client. Like a chef who can adjust her signature
dish for a special guest, top-producing real estate agents are able to personal-
ize their presentation style to best accommodate their individual clients.
Our clients want to feel complete confidence in our abilities—no ques-
tions, no second guessing. They want to feel secure about the person to
whom they are entrusting their largest financial asset. What breeds confi-
dence? As has often been said, confidence breeds confidence! To help with
this endeavor, many superstars have added a new dimension to their presen-
tation, with some even replacing their formal presentation altogether with a
success portfolio.

Learning Challenge: Create a planned presentation tailored to your

client; then memorize it, internalize it, and personalize it.

Building a Success Portfolio

Once you have mastered your core presentation, you might consider a tech-
nique that many agents find helpful: creating a success portfolio. A success
portfolio is a pictorial journal of your past success stories. One of the best
ways to envision a success portfolio is to imagine yourself interviewing a
photographer or an architect. People in both of these professions almost
always have a success journal that shows off their talents; for instance, a
photographer may include photos of different scenes, lighting, models, and
backgrounds, while an architect may include elevations; interior and exterior
drawings; and, most important, pictures of completed projects. Likewise,
many top real estate agents carry with them a success portfolio, which may
include photos of homes they have sold; past flyers and marketing cam-
paigns; pictures of clients in front of the homes they purchased; brochures;
website samples; advertising slicks; open house invitations; and, most impor-
tant, quotes and pictures of satisfied clients.
Some progressive agents even use a success portfolio as their listing pre-
sentation. Carolyn, a luxury home specialist from Georgia, says, ‘‘I want to
impress upon my clients the fact that I get things done. I’m not just talking
in a vacuum. When I say something, it happens.’’
96 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Consider organizing your success portfolio around the same discussion

points as your listing presentation. You can then follow the lead of elite
agents who use their success portfolio either as a stand-alone tool or to aug-
ment their formal listing presentation. Let’s take a look at how one superstar
introduces the portfolio into his presentation:

Success Portfolio Introduction

If you don’t mind, what I would like to do is show you some of the
homes I’ve recently helped families buy and sell here in the area, and
some of my most successful marketing pieces. May I show you my
portfolio?

Have you ever noticed that you learn faster by listening to a story than
when you are just receiving hard facts? This may be one reason why as chil-
dren we aren’t just told not to talk to strangers; we are told the scary story
of Little Red Riding Hood and the Big Bad Wolf. Stories are powerful; they
resonate, sticking to our long-term memory like a pasta dinner to our ribs.
And they aren’t just for kids. While attending a recent play with my wife,
John Steinbeck’s Of Mice and Men, I noticed that as the curtain went up, I
could still hear a faint rustling and whispering. It was obvious that a number
of the audience members were restless, anxious, and perhaps a little nervous.
There was a hum, a murmur in the auditorium. But then magically, within
just a few short seconds, the room became deathly silent as all eyes focused
on a performer who had quietly walked on to the darkened stage and now
stood motionless. The story was about to begin.
Master presenters are master storytellers. Statistics, numbers, trend lines,
markets, and opinions can be interesting, but when they are wrapped up in a
story about real people in real situations, the data come alive and resonate.
No longer is the discussion an abstract analysis of what may or may not
happen. Instead, it becomes a real-life lesson in what can and will happen,
the ups and downs, the triumphs and tragedies that happen to real-world
buyers and sellers in the often unforgiving real estate market. Let’s take a
look at three real-world stories from top agents using their success portfolio
as a starting point:
BUILDING A MASTER-LEVEL PRESENTATION 97

Price
Jeremy, a $6 million producer from Chicago, tells this story while
showing a collage of pictures centered on a two-story waterfront home
he sold for over a million dollars.

‘‘The couple who sold this home had a tough time, but we eventually
were able to get their home sold just before the husband was trans-
ferred. The problem was that they decided they wanted to squeeze
every nickel they could out of the home, so, against my advice, they
priced the home above the top of the market.
‘‘Unfortunately, when the Realtors in the area looked at the prop-
erty, they pegged it as overpriced, and the home sat on the market for
a couple of weeks without any showings.
‘‘So I took the time to call every agent who had seen the home to
get their feedback. All of them told me that they felt the home was
overpriced. When I took this back to the sellers, after another week of
waiting, they adjusted the price.
‘‘Within three days the home was sold.’’

Product

Sarah, a $9 million producer from northern California, always tells this

story while showing pictures to emphasize the importance that im-
provements in conditions can have for a sale.

‘‘Last year I took a listing that needed some cosmetic work. . . . Here
are some photos of the home. The sellers really felt that they could
just sell the home ‘as is’ and let the new buyers pick out the carpet and
paint. So we priced the home to sell, and we even threw in a carpet
and paint allowance of $5,000 for any full-price offer. After a month,
even though we had a ton of showings because of the low price, we
received no offers.
‘‘My recommendation to the sellers was that they go ahead and
paint the home, which would improve the curb appeal, and carpet the
home in an earth-toned color. This is how the home turned out. . . .
Take a look at these pictures. . . . The home sold a week later at the
same market price but with no allowance.’’
98 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Promotion

Tony, a veteran from the Florida market who consistently sells over $5
million a year, likes to show off the growth of his marketing campaign
over the years he has been in business.

‘‘I’ve been in the business for a long time, and in the beginning what I
thought would sell homes was traditional marketing in the newspaper.
. . . Here are a few of my early marketing pieces. They worked, but I
like to be more aggressive with my business, so I started doing a
tri-fold brochure mailing to my entire service area every three weeks
featuring all of my listings, and targeted mailings to families who I
know can afford to purchase homes in the area. Tell me what you think
of these pieces.’’

Building a success portfolio will allow you to weave a story into every
main point of your presentation. Long after clients have forgotten the per-
centage of listings sold in their neighborhood, they will remember the story
of the lady who refused to budge from her demand to be paid only in gold
coins (one of my true stories).
What if you don’t have any stories? If you’re a new agent who hasn’t yet
accumulated some anecdotes about your own clients’ trials and tribulations,
you might consider borrowing some stories from your office mates or your
managing broker. Of course, when you present your portfolio, just be sure to
point out that each story relates to something that happened within your
office, but not necessarily to you.
To ensure that a presentation comes alive for the client and is interesting,
captivating, and downright fascinating, strong agents often take out an insur-
ance policy by learning how to anticipate hot buttons.

Learning Challenge: Create a success portfolio with photos of

homes you have sold, past flyers and marketing campaigns, pictures
of clients in front of homes purchased, brochures, website samples,
BUILDING A MASTER-LEVEL PRESENTATION 99

advertising slicks, open house invitations, and, most importantly,

quotes and pictures of satisfied clients.

Anticipating Hot Buttons

Minds are like parachutes—they only function when open.
—Lord Thomas Dewar

Have you ever had the uneasy feeling that your clients weren’t paying any
attention to you at all? Like wax sculptures, deadeyed and blank, they look
past you with a half smile. Many times as I sat across the kitchen table from
a seller explaining the benefits of my company and its marketing, I got the
distinct impression that I could probably wave my hand within inches of the
seller’s face and he wouldn’t even blink. It’s creepy, and it can last for what
seems like an eternity until the client magically snaps out of it, as if a spell
has been broken, a curse has been lifted, or your presentation is finally over.
So why do some clients turn into barely conscious zombies when you
begin discussing the mechanics of selling a home? The easy answer is to say
that your presentation is boring (which may or may not be true). But another
answer may be that you haven’t customized your discussion to fit the needs
of this particular client. In other words, you’re talking about things she really
doesn’t care about. For me, this would be like having a long discussion about
cooking with tofu. While my dad, a vegetarian, would love to talk about the
thousands of ways you can prepare this versatile dish, I would probably nod
off about the time you started discussing how to turn the pliable soy into
faux hamburger patties (gross!).
To excite a seller client about their services, many wise agents use a
preclosing question to better shape their discussion to fit the client’s inter-
ests. This doesn’t mean that they skip the main points, like price, product,
and promotion, but it does mean that they focus on topics within those main
points that the client is interested in exploring. For instance, some clients
may be fascinated with e-mail marketing and want to see all of the ways you
tap into this area of advertising, others may be interested in talking about
100 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

feng shui (an ancient Eastern design philosophy), while still others may want
to study the comparable sales in depth. Different strokes for different folks.
Let’s take a look at how using preclosing questions can reveal client hot
buttons and potential stumbling blocks to taking the listing.

Preclosing Questions
Before I begin my presentation, I want to ask you a couple of questions
if you don’t mind. First, are there any areas that are of particular inter-
est to you in terms of marketing or preparing your property for sale
that you would like me to focus on? And second, if my marketing plan
looks like what you are looking for, is there anything holding you back
from moving forward today?

Superstars always lead with the client need. I call this process identifying
trigger topics. A trigger topic is a presentation leverage point, an issue on
which the client’s decision to hire you hinges. Strong agents invest their
presentation capital on expanding, deepening, and exploring these points of
interest. Sure, we could add a bunch of fluff, filler, and perseverance to the
mix, but is that what our clients want? Not according to Jan, a luxury home
specialist in Seattle, Washington. ‘‘My clients are busy, busy people. They
aren’t going to sit through a lot of nonsense that doesn’t relate specifically
to getting their home sold and what they want to talk about.’’ I think Jan is
right. In today’s world of working families, multitasking, and hectic sched-
ules, the vast majority of our clients are just not interested in hearing about
anything that does not relate specifically to solving their particular real estate
challenge. As my old friend Bob Martin was fond of saying, ‘‘They just want
the time; they don’t want you to build them a clock.’’
In the second half of the preclosing dialogue, the agent asks another
critical question that may reveal many agents’ gut-o-meter. Your gut-o-meter
is your ability to ask gutsy questions at critical moments. In this case, the
agent is determining up front what roadblocks to taking the listing may lie
ahead. For example, suppose I ask you, ‘‘If my marketing plan looks like
what you are looking for, is there anything holding you back from moving
forward?’’ If you reply, ‘‘Well, I still need to fix a few things around the
BUILDING A MASTER-LEVEL PRESENTATION 101

house,’’ my approach to the presentation would change to focus more on

preparing the product for sale, as this is obviously your hot button. A gutsy
question asked in the right way can yield tremendously important informa-
tion.
Here’s a challenge: Take a look at these five gutsy questions and decide
which one you could use during your next presentation:

Five Gutsy Questions

1. If the home doesn’t sell, are you more likely to give it more time or to
adjust the price? Would you like to adjust the price now?
2. May I point out what you may wish to consider upgrading in the home
to help you receive better offers?
3. May I show you what an inspector may require to be fixed prior to
closing?
4. Many of my clients like to have their home deep cleaned prior to the
start of showings. May I refer you to a professional home cleaner?
5. Because many buyers don’t smoke, they are very sensitive to the smell
of cigarettes. Because of this, many of my sellers use a professional to
remove the odor. May I refer you to a company?

Like pulling a rabbit out of a hat, you can often discover hidden thoughts,
concerns, and even objections by taking the time to find a client’s hot buttons
early in the presentation process and, although it may seem a little unnatural
at first, asking gutsy questions. The more relaxed you become at asking these
questions, the more relaxed your clients will become about answering them.

Learning Challenge: Ask a preclosing question prior to the beginning

of a presentation to better shape your discussion to match the inter-
ests of each client and better determine his trigger topics. Also try
asking a gutsy question at a critical moment.

To take this process further and enjoy a flawless client meeting perfor-
mance, many agents choose to employ the secret that master illusionists have
been using for centuries. Let’s explore this together in Chapter 5, ‘‘The Magi-
cian’s Secret.’’
 C H A P T E R 5

The Magician’s Secret

Eric stood on stage in his signature blue bathing suit. Wiry but strong,
he looked out at the crowd that had come to witness his performance. He
was pleased. The show was once again sold out, just as it had been at nearly
every performance he had given throughout his entire career. Mesmerized by
the magician, audience members watched with wonder as two uniformed
attendants slowly rolled a heavy riveted metal can toward center stage and
then quickly filled it with 22 pails of water.
The tension became palpable. Eric motioned for the heavy lid to be
attached to the container along with six spring-loaded locks. After a deep
breath and a momentary pause he dropped beneath the water. Water
splashed over the sides as the lid was quickly slammed closed, the locks
clasped into place, and the milk can along with the magician rolled behind a
small curtain.
A drum began to beat slowly. The audience hushed to a whisper. One
minute slowly passed, and then, excruciatingly, two. A surge of panic swept
the hall. Women began to swoon, and grown men cried out to release the
fool. An attendant holding a large axe stepped forward, but just as his arms
reached their apex Harry Houdini magically appeared from behind the cur-

102
THE MAGICIAN’S SECRET 103

tain, his arms raised in triumph, to the relief and thunderous applause of the
terrified onlookers.
Eric Weiss, better known worldwide as the world’s greatest escape artist
and master magician Harry Houdini, had once again done the impossible:
He had vanquished death.
So how did he do it?
The secret of the Great Milk Can Escape was a combination of Houdini’s
superb physical conditioning and his patented tools. Although the trick was
extremely dangerous for anyone, including Houdini himself, he minimized
the risks through intense preparation. By running and swimming for long
periods of time, in addition to holding his breath underwater in his bathtub
at home, he trained himself to hold his breath for over three minutes. More
important, he designed a special trick milk can with a false lid, completely
undetectable under even the closest inspection. By pushing up from beneath
the lid, he could bypass all of the locks. Still, with just one miscalculation,
the trick could easily have killed him.
Suppose for a minute that the amount of preparation you invested in
your next real estate presentation wouldn’t just determine your ability to take
a listing or make a sale, but would mean your life or death. Would you pre-
pare a little better? Spend a little more time on research and practice? This
was Houdini’s secret. Everything was on the line during each performance.
Escape or die. Now when you and I fail to take a listing, we probably won’t
keel over dead (although it can often feel that way), but in fact a little piece
of our business has died, a piece that can’t be resuscitated or saved (not even
by the guy with the axe).
For the real estate professional, preparation can mean many things. In
the previous chapter, for instance, we worked on some basics, such as creat-
ing a visual presentation and building a success portfolio, both of which are
tools that you can use with every seller. But to become a master presenter
requires more; it requires intensive preparation specific to every individual
seller. Just like the performance of a master magician, to your audience, the
real estate seller, it should seem that your presentation is effortless, seamless,
and incredibly detail oriented. To rise to this master level requires that your
tools work flawlessly, your materials be impeccable, and your transitions
from one discussion point to the next be superb. To accomplish these goals,
let’s take a look at how superstars create presentation MAGIC.
104 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Presentation MAGIC
M: Motivate Yourself
Take this quick test: Closely examine all of your presentation materials. What
do they say about your motivation level? Do they say that you are completely
committed, fired up, and excited about taking a seller’s listing, or do they
read like standard-issue propaganda pieces? To create a presentation that is
powerful enough to motivate a seller to grant you and your firm a percentage
of the sales price of his home, you must be able to show him that you are
motivated enough to thoroughly prepare for the meeting.

Top Producer Tip: Many agents go the extra mile when preparing for
a listing appointment by taking outside photos of the seller’s home,
which they then insert into sample flyers, web pages, and mailings.
Not only can this get sellers excited about your level of motivation, but
it may also encourage them to begin visualizing you as their agent.
Check out this superstar script:
‘‘This morning my assistant took some quick exterior photos of
your home and inserted them into several sample flyers, web pages,
and mailing pieces. . . . Looking at these, which style do you find best
highlights your home?’’

A: Accept Your Limitations

Master presenters accept their own limitations. If they are not tech savvy,
they don’t pretend to be; if they aren’t specialists at explaining home financ-
ing, they don’t attempt the impossible by trying to describe the APR (annual
percentage rate) to their sellers. Instead, they expertly pivot the perceived
weakness into a perceived strength. How? Check out this superstar dialogue:

You know, I’ve chosen not to become a computer person. I’ll admit I’m
a little technologically challenged, so I hire someone who is an expert
to do that work; she works with me every day to make sure our Internet
strategy is top flight. Instead, I focus my time on what I do best: finding
buyers for my listings. So I’ll ask her and find out the answer to your
THE MAGICIAN’S SECRET 105

question, but in the meantime let me show you some of the ways I will
be working for you.

G: Gain Leverage
To gain leverage on their audience, superstars make a point of knowing more
about the local real estate market than their clients do. This may sound easy,
but it is becoming increasingly difficult as our sellers gain more and more
online resources that let them conduct their own fact-finding missions. To
stay competitive and add value to their services, strong agents understand
that they must double their knowledge base and extend their research into
every possible nook and cranny of the market. Check out how one agent is
combating free valuation websites within his market:

Many of my clients are doing research on websites like www.zillow

.com,* and I have to admit that these are fun places to visit. But when
you study the reports that these systems generate, you often find serious
flaws in the data. In fact, I have a few examples. . . . Take a look. When
my clients are selling their largest financial asset, I feel it’s my obliga-
tion as a real estate professional to do an in-depth market analysis on
each property that I market based on accurate information, which is
why I compile data from 10 different sources.

I: Invest Time and Resources

Winston Churchill, one of the greatest speakers of the last century, report-
edly would spend one hour of preparation for every minute of his presenta-
tion. Wisely, he understood that to be thought of as a great presenter required
the investment of his valuable time and resources. Imagine what would hap-
pen if real estate agents made that same commitment.
Building a standard 20-minute presentation would then require 20 hours
of preparation, and no doubt a substantial amount of additional time to
customize each presentation to meet the needs of a specific client. It’s not
unthinkable. In fact, Scot, a top-producing broker from Arizona, thinks

*One of the latest entrants to the real estate research community is www.zillow.com,
founded by Rich Barton and Lloyd Frink, the famous founders of www.expedia.com. They
claim that their systems can provide a free home valuation report for nearly every seller in
the country without the need to use a pesky Realtor.
106 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Churchill’s assessment may be below the mark: ‘‘I’ve invested thousands of

dollars and hundreds of hours of time in refining my presentation.’’ This may
be one reason Scot makes well over $300,000 a year in commission income.
One way in which some agents ensure that they are thoroughly prepared
for every seller meeting is by using a simple seller meeting checklist like the
one shown in Figure 5-1.

C: Capitalize on Your Strengths

When conducting an interview to hire employees, I often ask the question,
‘‘What is your greatest strength?’’ It’s a tough question. Almost invariably the
applicants will smile, fidget, laugh nervously, or stammer as they try to think
of something that won’t make them sound ridiculously conceited or, worse
yet, terribly underqualified.
Why is it so hard to recognize and then communicate our own strong
points? One reason is the powerful need to conform, to become a boring part
of the crowded masses. Yet master presenters almost always have the ability
to separate themselves from the pack and lean into their strengths. They
leverage their uniqueness and make it work for them. Take a look at this list
of strengths and circle the ones that apply to you:

Acceptance Assertiveness Boldness Balance

Clarity Confidence Courage Creativity
Curiosity Energy Enthusiasm Flexibility
Fortitude Freedom Generosity Gratitude
Harmony Integrity Kindness Learning
Nurturance Objectivity Openness Optimism
Passion Patience Persistence Playfulness
Purpose Resilience Simplicity Stability
Steadfastness Strength Vitality

How well you can convey your own strong points during a presentation
may determine how well received and accepted your message is by the seller.
She must buy into your story. One way to help guarantee success and set the
THE MAGICIAN’S SECRET 107

FIGURE 5-1.

Seller Meeting Checklist

➢ Home Information
 Customer Service Information
 Tax Records
 Zoning
 CC&Rs (covenants, conditions, and restrictions)

➢ Market Information
 Comparable Sales 6 Months/12 Months
 Comparable Listings – Active
 Average Days on Market
 List to Sale Price Difference
 Average Sales Price

➢ Competitive Market Analysis

 Complete/Incomplete – Need More Info

➢ Marketing Materials
 Personal Brochure
 Website Materials/HTML Resaved
 Referral Book Updated
 Advertisements – Paper/Magazines
 Marketing Plan – Updated with Home Information

➢ Prelisting Kit
 Mailed/Delivered/E-mailed

➢ Samples - Customized
 Flyers
 Advertisements
 Webpages
 Home Books

➢ Supplies
 Sign/Lockbox/Listing Kit
108 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

stage for a fantastic presentation that focuses on the client’s needs is to stack
the deck in your favor by using a prelisting kit.

L E A R N I N G O P P O R T U N I T Y

The power of preparation. To become a master presenter requires

intensive preparation. To your audience, the seller, it should seem
that your presentation is effortless, seamless, and incredibly detail
oriented.
Presentation MAGIC:
M: Motivate yourself.
A: Accept your limitations.
G: Gain leverage.
I: Invest time and resources.
C: Capitalize on your strengths.

The Prelisting Kit

Going into a meeting cold can be nerve-racking. As my friend Michael Pap-
pas of the Keyes Company (www.keyes.com), a leader in Florida real estate
sales, told me when I was going on stage to do a presentation to his company,
‘‘Don’t worry, Jim; they’ll give you 15 seconds of unconditional love, and
then, if you’re not good, they’ll rip you to shreds.’’ Thanks, Mike!
To ease the pressure when you are sitting in a seller’s home, a fantastic
tool that many top producers employ is a prelisting kit. A prelisting kit is a
packet that is sent or delivered to a seller prior to your arrival at his home
that can be a starting point for your initial discussion. Think of it as your
warm-up act. A good prelisting kit can do many things; for instance, it can
help to build your credibility, demonstrate the quality of your brand, and let
the client know what to expect during the meeting. In addition, a well-crafted
prelisting kit can serve as a preemptive strike against potential competitors.
So what kind of powder do you put into this magic bullet? Let’s take a look
at what many top producers include in their prelisting kits, and then take a
look at a sample kit.
THE MAGICIAN’S SECRET 109

Prelisting Kit Contents

• Cover letter. This letter will confirm your listing appointment, provide
your contact information, and explain the contents of the entire
package.
• Résumé. As well as fleshing out an agent’s work history, a résumé
allows the agent to expand on professional designations. For in-
stance, instead of a long list of letters, like ABR, ALHS, CRS, or
GRI, many superstars define what it means to hold each designation
by explaining it with a brief sentence or paragraph, such as ‘‘Com-
pleted the Accredited Luxury Home Specialist Designation program
in 2006.’’

New Agent Tip: Brand new real estate agents may wish to substitute
a company résumé, which could include the accomplishments of the
company, company history, and a list of differentiation points that sets
your company apart from your competitors. Another option is to use
a brief biography page (as described later) as a way to highlight your
strengths.

• Personal marketing brochure. According to Realtor Magazine, to build

a high-quality personal brochure, you may want to consider these key
items:
An unusual size. Some agents choose to create a brochure that
will stand out from others by making it an unusual size. One
example is Dan Olague, a salesperson from Puyallup, Washing-
ton; his brochures stand out like a head of lettuce at a Krispy
Kreme counter. Why? They are six inches square—a weird size.
A memorable tag line. ‘‘The Rancher’s Realtor’’ and ‘‘Selling San
Diego Skylines’’ are great examples of tag lines (or, for the
buzzword-friendly crowd, positioning statements). Whatever you
call them, they are an essential part of a strong agent’s marketing
strategy.
Friendly photographs. A mix of professional photographs taken
with just the right lighting, background, and colors can make
110 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

even me (a guy born for radio) look friendly enough to do busi-

ness with. The secret for many agents is to employ a professional
photographer (not their Uncle Jerry). ‘‘Consumers today want
someone they can relate to,’’ says Greg Herder, a partner in
Hobbs Herder Advertising (www.hobbsherder.com).
Testimonials. A satisfied client saying good things about you is
always your best advertising. Supercharge your testimonials by
making sure they are unedited, specific, and detailed, and in-
clude the clients’ full names.

Testimonials

June Smith—Home Sold July 1, 2006

Our transaction was an extremely pleasant experience for us, even though the buyer
wanted us to spend a fortune on repairs. Sally was able to help us negotiate a fair deal
and we were able to close on time! Phone Number 1-541-673-1106
John Thompson—Home Sold April 16, 2006
Sally was able to market our property in a way that attracted a lot of showing; we sold
the home in less than four weeks! She stayed right on top of the buyer loan process and
we closed three weeks later! Phone number 1-541-672-1159
Jose Cruz—Purchased a Home January 2, 2006
Sally took the time to help us find our dream home. We plan on living in this home the
rest of our lives. She really listened to us, and she made recommendations that helped us
save a lot of money! Phone number 1-541-672-1559

• Brief biography. A professional biography often includes a brief his-

tory of your professional career and, for some, an extra helping of
personal information as well. Giving a small glimpse of your per-
sonal life can help soften your image and personalize your presenta-
tion. My personal bio includes this paragraph: ‘‘Jim is happily
married and has two sons, Michael and Mathew. He currently lives
in Sutherlin, Oregon, with his wife, Jessica, where they and the kids
enjoy spending time in the garden, camping, and snowboarding in
the winter months. Jim is also an active member of his community
and contributes his time and energy to many local events and chari-
ties.’’
THE MAGICIAN’S SECRET 111

Top Producer Tip: Many agents include the biographies of the other
members of their team, along with photos and contact information.
This is wise, as often clients will be speaking with or e-mailing these
team members throughout the listing and transaction period.

• Meeting outline. Clients are often antsy about their first meeting with
a real estate professional for no other reason than they don’t know
what to expect. You can remove this question mark by providing
your new clients with a meeting outline, a step-by-step timeline of
what to expect during their initial consultation.
• Questionnaire. To gain a huge meeting advantage, many agents ask
their clients to fill out a simple questionnaire, which can be sent,
faxed, or e-mailed back to the agent prior to his arrival at the client’s
home. The questions are often the same questions you would ask
when you are sitting with a seller for the first time. But knowing the
answers ahead of time gives top producers the chance to focus their
presentation on hot buttons, as well as anticipate questions in ad-
vance.

Top Producer Tip: Some agents find it wise to include a list of ques-
tions that the seller may want to consider asking the agent when she
arrives at the home. This is also a great tool in multiple-interview situa-
tions, as it will arm the seller with tough questions to hammer other
agents with (and since they didn’t write the questions, answering may
be a wee bit tougher for them).

• Video. Here’s a wild idea (for you wild agents): What if you video-
taped yourself delivering your presentation? Just imagine your cli-
ents watching with a bowl of popcorn in hand as you walk them
through the key points of successfully selling their home. Ralph Rob-
erts, one of the most successful real estate agents in North America,
112 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

actually sends along a bag of microwavable popcorn with his video.

(What, no candy?)

Top Producer Tip: For camera-shy agents, you may prefer to invest
in a professionally created video to hand out to sellers. David Knox
(www.davidknox.com), a real estate speaker and author, has created
two DVDs that may just do the trick: Pricing Your Home to Sell and
Preparing Your Home to Sell. Both are generically designed for agents
to hand out or lend to sellers.

• Press clippings. If you have been fortunate enough to receive some

free press for your accomplishments, why not make copies and keep
them as an insert for your prelisting kit? Doing so will expose your
potential clients to your status as a living legend without you having
to tell them yourself, which would be kind of embarrassing, wouldn’t
it?

Top Producer Tip: To get your name in the paper, start telling news
editors about your professional accomplishments. To learn how to
write an effective press release and distribute it free nationwide, visit
www.prweb.com.

Now, between you and me, this list could go on forever. But if you give
sellers every single shred of information about you, your company, and your
services, do they really need to meet with you? After all, why waste an hour
talking to you in person when they can make a decision just based on how
you look on paper?
My problem is that I don’t look so good on paper—5⬘9, balding, 180
pounds, snores loudly. I look much better in person. So here’s a secret that
even the most successful agents often miss: What we leave out of a prelisting
kit can be just as important as what we put in. A great way to think about
your prelisting kit is as a movie trailer. A good movie preview is intriguing;
THE MAGICIAN’S SECRET 113

it grabs you, shakes you, and says, ‘‘Come to the movies and watch me! No,
no, don’t wait for the DVD. Only losers wait for the DVD; you need to see
this now!’’ If you think back to your childhood, you can probably remember
the best movie trailers, ones like those for Jaws, Star Wars, or Raiders of the
Lost Ark. This is in sharp contrast to some of the extended previews we see
today. You know, the ones where you think to yourself: ‘‘Wow, they are really
giving away a lot of information here. How much longer is this going to last?
Why are they showing me all this? Hey, I ate all my popcorn!’’
More is not necessarily always better; in fact, sometimes less is more. A
strong prelisting kit should entice people to want more, to get them salivating
for not just a taste but a whole piece of your presentation cake. So let’s put
this idea into play by showing a sample prelisting kit. When you review this
kit, decide if you would add to or take away from the information, or perhaps
completely revise it.
As you read the cover letter (Figure 5-2), notice that this agent refers to
the prelisting kit as a premeeting kit. Many agents prefer this softer approach,
as it doesn’t presume that you will be taking the listing.
She also wisely confirms the appointment and quickly outlines the kit’s
contents.
Most professional letter writers agree that a sales letter should almost
never be more than three paragraphs long. If it’s any longer, most readers
will instantly disregard the entire letter as too wordy.
In her one–page, no doubt simplified résumé (Figure 5-3), the agent
doesn’t provide a high school yearbook, a copy of her dissertation, or copies
of her designation certificates.
Why not? She knows that her clients are sophisticated enough to recog-
nize the work behind each sentence. She doesn’t need to spell it out in
crayon.
What’s the difference between providing a résumé and providing a biog-
raphy (Figure 5-4)? It’s a good question. A résumé is more or less a list of
professional accomplishments, whereas a biography humanizes the agent,
making her become more than just a sentence. It tells the agent’s professional
history and allows the agent to become three-dimensional. This is also a great
way for a new agent to show his strengths in areas outside of the real estate
business.
A shortcut to re-creating your company history may be to borrow a page
from your company’s website (Figure 5-5), which often contains either a
114 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 5-2.

John and Jane Smith

123 Lakeview Dr.
Portland, OR 97435

RE: Premeeting Kit

<Date>

Dear John and Jane,

It was my pleasure speaking with you today. I’m excited to find out how I may be
able to help with your real estate needs. I have you scheduled for an
appointment on <Date> at <Time>.

Before the appointment, I thought that you might like to review my premeeting kit.
The kit contains many items that many of my clients have found helpful,
including:

➢ Résumé
➢ Brief Biography
➢ Company History
➢ Meeting Outline
➢ Seller Questionnaire
➢ Agent Questions
➢ Website Links
➢ Video—Pricing Your Home to Sell
➢ Testimonials

If I can answer any questions before I arrive, please don’t hesitate to give me a
call or an e-mail. Thank you.

Warmest regards,

Sally Superstar
555-1212
THE MAGICIAN’S SECRET 115

FIGURE 5-3.

Sally Superstar—Resume

Position Objective: My mission is to become your trusted real estate professional.

Educational Background:

➢ Graduate Thurston Senior High 1987

➢ Graduate University of Oregon 1994—Major in Economics
➢ Completed Real Estate Licensing Program 1995
➢ Completed Graduate Realtor Institute Training 1997
➢ Completed Certified Residential Specialist Training 1999
➢ Completed Accredited Buyer Representative Training 1999
➢ Completed Accredited Luxury Home Specialist Training 2005

Professional Accomplishments:

➢ Bachelor of Science Degree in Economics 1994

➢ Currently hold the following real estate designations:
° GRI, CRS, ABR, ALHS (explained further in kit)
➢ Salesperson of the Year 2000 and 2001
➢ Multi-Million Dollar Sales Production Since 1996

Memberships:

➢ Eugene Association of Realtors

➢ Oregon Association of Realtors
➢ National Association of Realtors
➢ Multiple Listing Service Member
➢ Lions Club & Optimist Club

Working History:

➢ 1993–1995 OSU Campus Library

➢ 1995–1998 ABC Realty
➢ 1998–2003 XYZ Real Estate Inc.
➢ 2003–2006 All State Real Estate
116 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 5-4.

company history or the principal broker’s background. Both add depth to

the picture of who will be representing the seller’s home in the marketplace.
(The only caveat to this approach is if you work with a competing broker.)
Providing a meeting outline (Figure 5-6) is sometimes referred to as the
‘‘safe island’’ approach, meaning that we empower the seller by giving her a safe
place that we will return to throughout the appointment—the meeting outline.
Also take careful note of the privacy statement, which gives sellers the
ability to speak freely without fear of hurting their own interests. Just be sure
to check your state’s agency laws regarding confidentiality.
THE MAGICIAN’S SECRET 117

FIGURE 5-5.

By providing her clients with a preinterview questionnaire (Figure 5-7),

this agent is setting herself up for success.
If the client doesn’t send the questionnaire back, one of her team mem-
bers can follow up with a phone call to conduct the interview, or she can use
the form during the presentation itself. In either case, she will be in a position
to control the flow and tempo of the meeting by focusing on the client’s real
needs.
By providing the seller with questions that he may wish to ask you upon
your arrival (Figure 5-8), you have given yourself a huge sales advantage.
Why? Because obviously you should have great answers!
118 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 5-6.

When you read these questions, it might be easy to panic. After all, what
if you’re a new agent or you haven’t sold many homes? What then? To over-
come these challenges, many agents fall back on the strength of their com-
pany. A simple restructuring of the questionnaire can focus the questions on
your firm and not on you personally. (Whew!)
Many agents provide their clients with website links (Figure 5-9) as a
THE MAGICIAN’S SECRET 119

FIGURE 5-7.

way to provide additional information without having to add reams of paper

to their prelisting kit.
The idea is not to become a Google-like dictionary of websites, but in-
stead to offer a narrow list of the best websites you have found to help your
clients research the real estate process.
It’s long been said that the best advertisement is a satisfied client. But
120 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 5-8.
THE MAGICIAN’S SECRET 121

FIGURE 5-9.

that’s true only if your satisfied clients tell someone about your services. This
agent provides not only the names of her satisfied clients but their phone
numbers as well (after gaining their written permission). To me, this sends
the signal that her clients are so happy with her services that they are willing
to provide live testimony to her skills.
So assuming that you run out and build your own kit, how often, realisti-
cally, will you send one or have one delivered to your client’s doorstep? To
be honest, even the most aggressive agents who have every intention of using
their carefully crafted prelisting kits often just can’t find the time to get them
into their clients’ hands. To deal with this problem, many agents have taken
to delivering their prelisting kits electronically in the form of an e-booklet.
122 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

An e-booklet is just a fancy name for a document that is sent or downloaded

from the Internet. The advantages to this technique are that it is instanta-
neous; free; and, most important, far more likely to actually be done.
So now that the prelisting kit is in the mail, we can just put our feet up
and wait for the clock to count down to launch, right? Wrong. For top pro-
ducers, there are still some key ingredients needed to ensure a successful
listing appointment.

L E A R N I N G O P P O R T U N I T Y

Prelisting kit. A prelisting kit is a packet sent or delivered to a seller

prior to your arrival at his home that can be a starting point for your
initial discussion, and later your presentation.

The Due Diligence Inoculation—A 17-Point Research

Plan
Okay, here it is—the absolute worst possible thing that can happen to you
during a listing appointment. You’re sitting with the seller in his spacious
kitchen, crunching on a year-old gingersnap and showing off your latest mar-
keting extravaganza, when bam! The seller hits you over the head with a
sledgehammer by asking you, ‘‘Hey, what did the home across the street sell
for?’’
Huh? Quickly digging out from underneath a mountain of useless papers,
you discover that you don’t have the information. The house across the street
wasn’t a comparable for your competitive market analysis, so it didn’t come
up in your research. Dagnabit! The seller’s face drops as you stammer.
Quickly you dial your assistant to do an emergency MLS search, but she’s
gone. All you can get is her voice mail. (It seems that your assistant needs an
assistant.) A bead of sweat forms on your palm, then another as the seller’s
demeanor changes from warm and cuddly to formal and businesslike.
‘‘Don’t worry about it,’’ the seller says, no longer looking you in the eye.
It’s gone. Your listing just fluttered away like a spindly dandelion puff in
a big gust of wind. You could have caught it if you had been fast enough, but
instead you tripped and fell face-first in the mud. No flowers for you. And
THE MAGICIAN’S SECRET 123

no listing, either. Once again you failed to take the listing because of a lack
of knowledge.
Has this happened to you? It’s happened to me many, many times. What
we failed to do was to complete our due diligence, otherwise known as due
care. Due diligence is defined by the online encyclopedia Wikipedia (www
.wikipedia.org) as the effort made by an ordinarily prudent or reasonable
party to avoid harm to another party. Harm? Yes, harm. When you fail to
prepare thoroughly for a client meeting, you can harm your clients by leaving
them with unanswered questions or, worse yet, unasked questions. Both can
leave the seller feeling anxious and dissatisfied. To inoculate your presenta-
tion from potentially lethal mistakes requires vigilant research deep into a
home, the surrounding neighborhood, and the local community. This is the
kind of due diligence that other agents will scoff at, your broker may discour-
age, and your assistant may want to lynch you for for even suggesting.
So roll up your sleeves; it’s time for your due diligence inoculation. Warn-
ing: You may feel a slight burning sensation as you read this list, but don’t
worry; it’s completely normal and should go away within 24 hours.

Seventeen-Point Research Plan

1. All active, expired, and sold listings in the area. Sellers are often curious
about their neighbor’s homes, even when their neighbors have more
square footage, an extra bedroom, and a three-car garage. Sellers don’t
care; they still want to know all the juicy details.
2. School information. Detailed school information is available online
through many state-sponsored websites, as well as from www.homefair
.com, a site owned and operated by REALTOR.com. These sites pro-
vide an in-depth look at each school’s ‘‘report card’’ and student-
teacher ratio, both of which can directly affect a home’s value.
3. For sale by owner list. A quick drive through the neighborhood should
reveal the for sale by owners in the area, and a follow-up phone call or
visit can provide you with everything you need to know about each
property. Just make sure to follow the federal do-not-call guidelines
(www.fcc.gov).
4. Department of Transportation. Many local governments and cities pro-
vide statistics on road usage, congestion, and upcoming improvements,
which can be invaluable when you are attempting to sell a home in a
high-traffic location.
124 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

5. Comprehensive plan review. Many top producers make a point of pur-

chasing their city or county’s comprehensive plan. This huge book
should provide an outline of the path of progress for your area and
provide a red flag when listing homes within these zones.
6. Farm book. If you are a farmer, real estate lingo for someone who
specializes in a certain demographic or geographic segment of the mar-
ket, you may already have created a farm book. A farm book is a refer-
ence book that often includes all of the details about the community
you have targeted, including average utility costs, school bus routes,
service providers, shopping, and places of worship.
7. Neighborhood walk-about. Nothing will put you in touch with a neigh-
borhood faster than just walking around inside it. Taking just 20 min-
utes to get the feel and flavor of the area can provide insights that you
would have missed by just looking at a computer screen.
8. Satellite image. Any agent can now view satellite images of every home
in her inventory; better yet, she can use the maps as a tool when taking
a listing. To pull up a map of your next listing, visit http://earth.google
.com.
9. Competitive market analysis. Strong agents thoroughly review every
comparable sold, expired, and active listing in the neighborhood of
their subject property. A word of caution here: Many sellers will ask
you if you have actually ‘‘seen’’ these listings. If you haven’t, it may be
worth a quick drive to at least view the homes from the outside.

Top Producer Tip: Much of the information for items 10 to 17 is

generally available for free from your local title company.

10. Legal owner’s name. This should be confirmed with the seller during
the presentation. Often deeds will show deceased parties, divorced par-
ties, children’s names, and trusts or corporations, all of which may
pose hurdles to taking or closing the listing.
11. Lot size. Although we don’t pretend to be surveyors, we should have a
rough idea of a property’s boundary lines before taking the listing. This
way, we don’t sell someone else’s backyard.
12. Tax record history. Is the current owner paying her taxes? If she’s not,
that’s not necessarily bad for you. Why? The seller’s motivation to sell
THE MAGICIAN’S SECRET 125

may be relatively high, and your likelihood of taking a listing that much
greater. (Twisted, right?)
13. Last deed. This should show when the seller purchased the home and
often (but not always) what he paid for the property. This is a great
piece of information to have on hand when going into a listing appoint-
ment.
14. Building permits. Reviewing these permits can give you a sense of not
just the square footage of the property, but what the sellers have done
to make the house a home.
15. Zoning restrictions. Many agents purchase or keep at their fingertips a
list of all of the zonings in their service area. They can then review and
photocopy the restrictions for each property that they will be visiting.
16. Covenants, conditions, and restrictions. These outline what a seller may
do within a subdivision and what she may not do. Watch out for ex-
pired CC&Rs that may no longer have any effect.
17. Homeowner association information. In many communities, a home-
owner association is in place to enforce the CC&Rs, approve new con-
struction, and maintain common areas. New owners may have to be
approved by a committee and agree to a monthly assessment for ser-
vices.

To help with this seemingly monumental task, many agents invest in a

virtual assistant. A virtual assistant is a person who helps real estate agents to
complete a variety of tasks over the Internet, including research, prospecting,
website management, and database management. They are often paid by the
hour or by the task, but they rarely come into face-to-face contact with their
agent employer. Instead, they are given an assignment and then e-mail their
completed work to the agent within a specified time frame. To find a virtual
assistant in your area, check out the Real Estate Virtual Assistant Network
at www.revanetwork.com.
If you’re not quite ready to invest in a live assistant, and a dead one just
freaks you out, you may want to consider employing a Web-based research
system like www.eneighborhoods.com (Figure 5-10). This system enables
agents to choose from a variety of different seller reports that include much
of the research data that we listed in our 17-point plan, along with a couple
that we didn’t, like employment and demographic data sets.
So assuming that you either do the research yourself or have it done
professionally, let’s do a little Groundhog Day reenactment (you know, the
126 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 5-10.

movie with Bill Murray where he relives the same day over and over) and see
if we can change your fate by deploying our new arsenal of information with
your original seller. Ready?
Cue the alarm clock. . . .
‘‘Hey, what did the home across the street sell for?’’
‘‘You know, I’m glad you asked, because I went ahead and pulled up
every listing that sold in your neighborhood in the last 12 months. Let me
show you what I found. . . .’’
Yes, yes, yes—all is now right with the universe. By completing your due
diligence, you have now taken the first step toward taking a spanking new
listing. You should feel at peace and confident that you are at the top of your
game, that nothing and no one can stop you. Unless . . . unless the seller
pipes up with a statement like this: ‘‘So my house should sell for at least
twice that, right?’’
Sounds like it’s time to break out the big gun, the competitive market
analysis (CMA). But how do you go about preparing a convincing competi-
tive market analysis? It’s a great question and an essential part of the prepara-
THE MAGICIAN’S SECRET 127

tion process, so let’s take a look at the first step in the process by
understanding the overall market.

L E A R N I N G O P P O R T U N I T Y

Due diligence. Strong agents avoid presentation blunders by conduct-

ing vigilant research deep into the home, the surrounding neighbor-
hood, and the local community.

The Market Grudge Match

Let’s be honest, preparing a CMA is something that we in the real estate
business like to make a big deal of. We tout CMAs as being objective docu-
ments, with numbers, statistics, and trend lines that make them seem infalli-
ble, like a Senate briefing or a Tom Clancy novel. But the truth is that most
of these documents are about as objective as a rat in a cheese factory.
A competitive pricing analysis is really no more than a pricing opinion.
In many cases, it’s no different from an appraisal, which by definition is also
just an opinion of value. The problem with opinions is that everyone has one,
and they are almost always inherently biased by something. (Somewhere I
can hear an appraiser screaming.) For example, sellers are biased to want to
push the envelope and ask the highest price possible, while buyers are almost
always looking for ways to justify a lower price. Agents, on the other hand,
have two competing objectives; the first is to take the listing, and the second
is to actually sell it. Mixing this all together creates what we in the real estate
world call the ‘‘market.’’
The real estate market is the amalgamation of everyone’s biases: buyers,
sellers, renters, Realtors, lenders, appraisers—everyone’s opinion wrapped up
like pigs in a blanket into the overall demand for housing. The most pervasive
bias wins. Like an emotional grudge match between two bitter rivals, the
market is always in flux, moving up and down depending on who’s winning
the round.
This pushing and pulling, hitting and scratching, biting and kicking is the
yin and yang of the real estate market. Like a toilet that won’t flush, it always
swirls endlessly around the eternal question: Is it a seller’s market or a buy-
er’s market (Figure 5-11)? A seller’s market is defined as a period when the
128 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

F I G U R E 5 - 1 1 . T H E M A R K E T G R U D G E M AT C H .

Seller’s Market:
High demand for housing,
lots of buyers, low
inventory.

Buyer’s Market:
Low demand for housing,
lots of homes, high
inventory.

emotional pendulum has swung (or been pushed) to light a fire under buyers
to want to own a home, thus creating a high demand for housing. Sellers
then have pricing power. They can and do command higher and higher prices
as less and less inventory becomes available. In southern California, for in-
stance, during peak buying frenzies, there have been times where the market
has had less than one month of available inventory, meaning that if no addi-
tional listings were taken, the inventory would be completely sold out in less
than 30 days. The flip side of this equation is a buyer’s market, an event that
many or even most agents operating in North America have yet to experience
(but are beginning to). A buyer’s market happens when there is an excess of
supply and falling demand. This provides buyers with the ability to negotiate
lower prices and demand more concessions from sellers.
A home’s value, then, is a moving target; its worth is always relative to
when the seller decides to begin marketing the home. Contrary to what the
tax rolls may indicate, a home doesn’t have a static value that moves a certain
predictable percentage every year. Instead, it flows like water, following the
market’s ups and downs until a seller puts a ‘‘For Sale’’ sign in the lawn, and
then suddenly, depending on the number of buyers in the marketplace, the
home’s value solidifies.
So let’s talk about pricing a specific home. As a seasoned professional,
every time you walk into a new home, you instantly form a price opinion; I
call this your gut price. Your gut price is intuitive—it’s your brain thin-slicing
THE MAGICIAN’S SECRET 129

huge amounts of data, compiling them instantly, and then flicking a switch
that says this home is worth X, Y, or Z. Is your gut price always right? Not
always. But I’ll bet that more often than not, it’s pretty darn close to the final
sales price.
Unfortunately, many agents don’t listen to their intuition; instead, they
ignore their gut price and catch a bad case of what I call CMAitis. CMAitis
is the need that many agents feel to impress their sellers with hundred-plus-
page reports that conclude in a dramatic flurry by predicting, sometimes
down to the last penny, what a home will eventually sell for—something like,
‘‘Mr. and Mrs. Jones, according to my calculations, your home should sell
for $596,325.13.’’
Sounds impressive, doesn’t it? It feels good, too, like you really know
what you’re talking about. But what if we are competing for the seller’s af-
fection with two or three other agents? Who will the seller hire then? Obvi-
ously, without anything to go on but the price, most sellers will hire the agent
who tells them the highest price. As with an Elvis autograph on eBay, the
highest bidder wins. Unfortunately, everyone comes out a loser in a bidding
war—the agents who competed and lost, the agent who won the listing but
never sells the house, and the seller who never achieves her real estate goals.
They all come out losers.
So how can you avoid this fate? The bear trap that snaps the legs of
many agents is the tendency to want to name a specific price. Perhaps a
seller has asked a specific question like, ‘‘Well, now that you have seen the
home, what do you think it should sell for?’’ Watch out! The second you
answer that question, you have just slapped a price tag over your mouth that
will prevent the seller from hearing another word you say. You will have
become the price. Like a cow branded at birth, you will always be tagged as
‘‘the bald guy who told us our home was worth only $450,000.’’ (All right,
maybe you aren’t a bald guy or gal; go ahead and insert your own signature
flaw here.) So what’s the solution? The solution is to reject the notion that
you must become a twenty-first-century Nostradamus and predict to the
penny a home’s eventual sales price. It’s impossible. Instead take a look at
this superstar’s answer to the question:

Pricing Question Dialogue

Seller: What do you think the home will sell for?
Agent: You know, that’s the first question that almost every seller asks me,
and it’s important because price is the number one reason why a home
130 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

will or won’t sell. I’ve put together a competitive pricing analysis that takes
the entire market into account, and that’ll help answer your question. Do
you mind if I show you what I found?

I know what you’re thinking. Didn’t I just say that a competitive market
analysis is a biased document that’s almost always prejudiced by an agent’s
need to take a listing, and also that wise agents shouldn’t attempt to predict
a specific sales price? Guilty on all counts, but the trick is to not throw the
baby out with the bathwater. The data in a solid CMA are incredibly valuable.
We absolutely need this information to help the seller price the home accu-
rately, but it’s how we present the information that will separate us from the
herd. To demonstrate, let’s start by filling the client in on the overall market
conditions.
Giving the client a sense of what’s happening in the overall market is
critical to sensitizing him to the big picture. Whether it’s good, bad, or even
ugly, the client needs to know what’s happening at the macro level, before
we move down to the micro level of focusing only on his home or neighbor-

FIGURE 5-12.
THE MAGICIAN’S SECRET 131

hood. Take a look at how one of my coaching students, Mark, repackages his
MLS data into a very easy to understand one-page report that helps acclimate
his clients to the real estate real world (see Figure 5-12).
Now watch as Mark effortlessly breaks down seemingly complicated data
into bite-sized pieces of information that his sellers can easily grasp and
apply to their own unique real estate challenge.

Sample of Mark’s Overall Market Condition Dialogue

Mr. and Mrs. Seller, my team and I put together a report for our clients
each month that we think provides an insight into what’s happening
with the big picture of real estate in our area. We call it our Overall
Market Condition Report.
On the top line, we have the number of listings taken last month;
this was 135 new listings, which as you can see is over 10 percent
more than last year at the same time. This is consistent with the next
line, which shows that the total number of listings available in our mar-
ket is up 7.5 percent to 1,421 listings. A quick calculation tells us that,
if no more listings were added to the market, it would take roughly 13
months to sell off that inventory.
The next set of data deals with sales; the top line here is what we
call pending sales, or homes that have offers but have not yet closed
escrow. As you can see, the number of pending sales last month was
down considerably, 14.2 percent, but the actual number of closed
sales was down only slightly, to 109 closed transactions.
On the plus side, the average listing price has jumped 6.8 percent
and the average sales price is now $412,500, 5.2 percent higher than
last year. In addition, sellers in our market who actually sold their
home last month received on average 98 percent of their asking price.
Also, the average time it took to sell those homes—something we call
the DOM, or days on market—was 39 days.
Breaking this down, we see the number of listings is up, so you
have more competition, but the number of actual closings is roughly
even and sellers are averaging a higher price for their homes.
Do you see anything else that concerns you about these numbers?

Of course, this sample dialogue is specific to the current market condi-

tions; as the market changes, the script changes. Yet regardless of the individ-
132 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

ual numbers, it’s important to notice something very important in the way
Mark talks about his statistics: He doesn’t take sides. He doesn’t spin the
information. He isn’t saying that the market is a strong market or a weak
market, a buyer’s market or a seller’s market. At this point, he is just stating
facts. The numbers should speak for themselves.
By taking sides too early in a client meeting, agents can often take a
position that is contrary to a seller’s worldview. Our worldview is how we see
things from our own unique perspective. It’s our worldview that shapes our
thoughts, decisions, and actions. It’s the reason some people vote Republi-
can, some people vote Democrat, and some people don’t vote at all, although
we all have access to roughly the same information to make those decisions.
For example, looking at these numbers tells me that the market may have
peaked; prices may soon level off or even fall, and longer times to market are
probably a distinct possibility. This is my worldview. But what if my seller
looks at these numbers and decides that what she is seeing is sellers hanging
tough on their prices even in a competitive market and still, by and large,
getting a higher price than a year before? Is she wrong? No, she’s right. Am
I wrong? Not from my worldview. We both just have a different way of look-
ing at the same data.
Superstars get in tune with their clients’ thinking pattern, their thought
process, early in the presentation. By doing so, they will be able to gently
guide their clients during the meeting to make informed, reasonable deci-
sions that will benefit their interests. By avoiding taking an early position,
agents can remain flexible enough to counteract any crazy thoughts the cli-
ents may have without seeming confrontational. For instance, perhaps the
seller might reason: ‘‘Well, it seems to me that if sellers are getting 98 percent
of what they’re asking for, we can just ask more and wait for an offer.’’
An idiotic statement? Yes, but only from your worldview. From the sell-
er’s position, it seems perfectly reasonable based on the market data. To
counteract this, look at how Mark handles the situation:
‘‘Well, one thing you have to remember about that statistic is that it
represents only sellers who actually received offers and closed escrow. Sellers
who priced their home over the market and never sold actually received 0
percent of their asking price.’’
It would be easy to say this with smug, condescending arrogance, like a
waiter deciphering a menu in French. But Mark doesn’t; instead, he smiles
while he talks and states the facts in a kind, warm, engaging manner. He’s
THE MAGICIAN’S SECRET 133

there to help. He is a consultant, not a friend but an ally, someone to answer

questions and wade through mountains of data to make heads or tails of our
crazy real estate market.
Now, you might wonder if Mark ever takes a position. Does he ever
finally come out and say, ‘‘Well, based on these numbers, it’s my opinion
that . . . ’’? Yes, but that will come later. First we need to help the seller
understand the difference between fantasy and reality.

L E A R N I N G O P P O R T U N I T Y

The market. The real estate market is defined as the overall demand
for housing at any given moment; a buyer’s market is a high supply–
low demand market, and a seller’s market is a high demand–low sup-
ply market.
The numbers. Wise agents don’t spin market information; instead,
they allow the market numbers to speak for themselves and get ‘‘in
tune’’ with their client’s perspective on the market.

Fantasy vs. Reality

Shhh . . . shhh . . . shhh . . . it’s supposed to be a secret.
The truth is that real estate agents can actually force a competitive mar-
ket analysis to come out any darn way they want. It’s the reason agents
often walk around real estate offices saying, ‘‘Hey, what do you think a four-
bedroom, three-bath home in Newport Dunes will sell for?’’ while a chorus
of veteran agents sing out numbers like a convention of drunken auctioneers:
‘‘$495,000 . . . $475,000 . . . $680,000!’’
Sure, we all use sophisticated CMA programs to manipulate and massage
the data, but in the end, it is we who finally decide on a recommended price.
Like an Enron accountant before an investor conference call, we often spend
hours adjusting, tweaking, and bending the numbers to make them come out
just the way we want them to. We want to beat expectations and have the
sellers buy stock in our presentation.
In preparing your CMA, you will no doubt include all of the usual sus-
pects: a list of all the properties that have sold in the neighborhood, a list of
homes that are for sale today, and finally a list of all the homes that were on
134 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

the market but never sold. It’s all neat and tidy. Yet, why is it that if you ask
four different real estate agents to do a CMA on the same property you will
receive four different answers, sometimes wildly different? The answer is that
real estate agents don’t set home prices; the market does. We just pretend to.
Wise agents, on the other hand, don’t attempt to predict sales prices;
instead, they provide their clients with accurate market data and allow their
sellers to make informed decisions based on a careful study of the numbers.
Yes, it’s easier to just give the seller a quick ‘‘off the cuff ’’ estimate using
what my friend Neil Moffitt calls the PFA, or pulled-from-air, method of
pricing. But in doing so, you run the risk of alienating the seller by taking a
position she disagrees with or by being just plain wrong.
Wrong? Yes, you can be wrong. To avoid this fate, my friend Rick De-
luca, a master CRS instructor, uses the fantasy vs. reality technique. The
fantasy vs. reality technique is so deceptively simple that it seems too easy.
It shouldn’t work. But it does. To use the system, agents build a traditional
CMA, but instead of concluding with a traditional price recommendation,
they take a different approach: They leave off the suggested price page. In-
stead, they let the seller decide the price. How do they make this work in the
real world? Take a look at this sample dialogue:

Fantasy vs. Reality Dialogue

Mr. and Mrs. Seller, what I have put together for you today is detailed
information about properties that have sold and that are comparable
to your home—I call these the reality (in other words, what sellers
were actually able to sell their homes for in our market)—and a list of
properties that are on the market now that haven’t yet sold and may
never sell—I call these the fantasy.
Ultimately, it’s your decision on where you choose to price your
home, and then it’s just a question of whether the market will accept
or reject that price.
What I would recommend is that we look at each of these listings
in depth, and then see if we can find a price that you feel comfortable
with and that I feel we can successfully market the property for. Does
that sound fair?
THE MAGICIAN’S SECRET 135

Top Producer Tip: To defuse competing agents in a multiple-interview

situation, consider using the script that Marylyn, an agent from Atlantic
City, adds to her pricing discussion. She says this:
You know, there are many agents who will tell you a price just to
get a listing, but really, unless an agent is willing to write a check for
your home, the number is meaningless.

By using the fantasy vs. reality dialogue instead of entering into a bidding
war with other agents, you are able to step into the role of a consultant. Now,
to prepare for this pricing conversation, strong agents do more than just pull
up MLS printouts; they highlight critical information. Here are three pieces
of key information to point out to sellers during your next listing presenta-
tion:

1. Listing feature differences. Obviously, every home is different. Pointing

out the unique features of each property and how it differs from your
seller’s home is an important consideration. For instance, a home’s
age and lot size can greatly affect its value, but less obvious factors,
like school and taxing districts, utility costs, or even proximity to shop-
ping, are sometimes overlooked.
2. Starting price and offer-generating price. Often listings will have been
reduced in price a number of times before generating an offer. This is
a very important item to point out to sellers, who might think starting
high won’t be an issue. Strong agents point out that starting at an
artificially high price may hurt a seller in the long term, as a home may
become stigmatized.
3. Days on market. When reviewing both active and sold listings, let sell-
ers know how long each of these properties has been on the market.
For instance, a seller may have sold for full price, but perhaps it took
six months to secure the offer. Is this seller willing to make a similar
sacrifice?

Are there more key points? There are probably hundreds of different
things you could point out during a pricing discussion that would be relevant,
136 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

but although overwhelming the client with data may seem like the right thing
to do, it is often the sign of a weak agent. Like a speaker who tries to cover
too much information or a book that lingers too long on one topic, some-
times too much is just too much. The wise agent finds a balance between
educating her clients and smothering them by paring down mountains of
information to a more manageable size, one that the client can act on.
So now that you have done your in-depth research, prepared for a pricing
discussion, and sent over your prelisting kit, it’s time to roll up your sleeves,
bag up the laptop, and head over to the seller’s home. Let’s explore the nuts
and bolts of sitting with a seller in Chapter 6, ‘‘Legendary Seller Presenta-
tions.’’
 C H A P T E R 6

Legendary Seller
Presentations
The home offered a view of the lake—a tremendous, breathtak-
ing view that stretched over dark green meadows and rolling hills, and even
extended dramatically down into the clear waters of a creek-fed reservoir
below.
‘‘Wow, nice view,’’ I said, interrupting myself in midsentence.
The sellers glanced at each other in a knowing way. They were used to a
luxury lifestyle. The wife had let me know that they owned three homes and
were now building a new lodge-style home in Colorado, as if I would be
impressed. I was.
I had already done all of the preliminary work: reviewed the home, sent
over a prelisting kit, and asked a series of qualifying questions during the
walk-through. It was now time for me to do the actual listing presentation.
‘‘Is there anything you would like to talk about before I start?’’ I asked.
‘‘Jim, to be honest,’’ the husband replied, ‘‘we have already met with
three other agents, and my wife has decided on someone she feels could do
a great job for us.’’
Earlier in my career, this answer would have been a sucker punch to the
midsection of my presentation. On this day, however, something clicked. It
137
138 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

suddenly occurred to me that not only did I still have an excellent shot at
taking this listing, but it would be nearly impossible for me not to take it.
My realization was simple: If the couple had been unified in their deci-
sion, they would have simply cancelled my appointment. Why waste their
time talking with me if they were already sold on another agent? The answer
was unmistakable; the husband had just laid it out for me: ‘‘My wife has
decided on someone she feels could do a great job for us.’’ Yes, his wife was
sold on my competitor, but he wasn’t.
I started slowly. ‘‘To be honest, I guess the biggest difference between
me and all the other agents you have talked with is that I don’t need your
listing.’’
The couple was momentarily stunned, as if they couldn’t decide which
emotion to fix on—anger, frustration, jealousy. But this wouldn’t last long, so
I charged ahead. ‘‘Listen, here’s where I’m at in my business. I work with
only a handful of sellers at a time. Financially, I don’t need to take any more
listings for the rest of the year, so I can be very selective about the clients
and homes that I choose to represent. This allows me to work with clients
completely differently from most agents you will meet.’’
I had the couple’s attention. Even the wife seemed to be pondering my
statements carefully. Finally she asked, ‘‘What do you mean by differently?’’
‘‘I mean I don’t need to tell sellers what they want to hear just to take a
listing. I’ll tell you exactly what I think it will take to sell your home and
move on with your life, and then I’ll leave it in your hands to make the big
decisions.’’
‘‘So what will it take to sell our home?’’ the husband asked, leaning for-
ward.
‘‘Three things, actually,’’ I replied, turning my laptop around so that the
screen faced the couple. ‘‘I call them the three Ps.’’
Bingo, I had them! The home was listed and sold within a month. For
me, this magical experience was one of the best sales performances of my
career—the kind of presentation that you replay over and over in your head
to relive the drama, tension, and excitement of having everything you say
come together in one legendary meeting experience. But when I reflect back
on that meeting today, I see a serious flaw, a lurking gremlin hidden beneath
my success that could easily have torpedoed that presentation and every
presentation thereafter. Where was my mistake?
I had failed to follow the mechanics of a perfect meeting by thoroughly
LEGENDARY SELLER PRESENTATIONS 139

qualifying the client. If I had done so, I would have discovered that I was
competing for the listing—something that I should have known long before I
arrived at the home. Although I got lucky and hit a home run, the meeting
could just as easily have imploded. My success had hidden my failure. As
one superstar from Seattle taught me years ago, it’s not enough to recognize
what you’re doing right at every client meeting; it’s what you’re doing wrong
that you need to discover and correct. For me this meant relearning the
mechanics of a perfect meeting, starting with positioning for success.

L E A R N I N G O P P O R T U N I T Y

An agent’s apparent success can hide a serious system failure.

Wise agents take the time to reflect on what they are doing right,
and, just as important, what they are doing wrong after each client
meeting.

Positioning for Success

As your car idles to a slow stop in front of the home, your heart skips a
beat—it’s go time. You’ve done all you can do to prepare. The time has come
to stand and deliver your best presentation. An hour or two from now, if
you’ve done a good job, you will step back through the seller’s front door,
listing in hand, walking on a cloud, unstoppable. But if you make a mistake,
slip up, or just plain blow it, you will walk through that same door with your
head hung low, frustrated, defeated, and sucked dry of enthusiasm. It’s the
same door. The only difference is what happens behind it.
What should happen? What are the mechanics of a perfect meeting? I
wondered that myself my first couple of months in the real estate business.
Like you, I had heard all the motivational stuff—be positive, smile, try to win
the sellers over by finding common ground. But that just wasn’t enough.
What I wanted was a step-by-step, A leads to B . . . B leads to C explanation
of exactly what I should be doing from the second I walked through the
seller’s front door. After a couple of months of pestering, I finally got an
answer from an agent in my office, a salty Navy veteran named Tom. Tom
agreed to take me with him on a listing appointment to give me an education,
140 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

a field exercise in how to execute a listing presentation. To my surprise, the

lesson began while we were still sitting just outside the seller’s home.
‘‘Now, Jim, the second you step outside this car, you have to become an
actor,’’ Tom began. ‘‘Whatever problems you have going on back at the office
or at home, the seller could care less about them. All he cares about is selling
his home. So clear your mind of any distractions, and turn off your pager.’’
This turned out to be great advice. Later, as I went on to coach my own
students, I was shocked at what agents would tell potential sellers about their
personal lives. Things like: ‘‘Last year my son knocked up a girl at school,
and yesterday I found out that his brother got kicked out of third grade,
so I’m sorry I’m late, but I had to meet with the principal. I’m sure you
understand.’’
No, they don’t.
Check your baggage at the door. Sellers don’t care about you. They care
only about themselves, which was another reason why Tom instructed me to
turn off my pager (this was long before cell phones). The worst insult you
can give anyone in a meeting is to answer your phone. It says to the person
you’re sitting with that she is not as important as the person calling. Trust
me, I’ve heard all the arguments before: ‘‘Doesn’t it make me look busy or in
demand?’’ Nope, it just makes you look like a self-absorbed idiot. Turn it all
off.
We started for the door, Tom carrying a leather briefcase and I carrying
a stack of papers. As Tom rang the bell, I looked up at a wind chime that
had begun to sound, but as I tilted back to get a better view, all of Tom’s
carefully prepared listing paperwork spilled out of my folder and onto the
wet ground. ‘‘Crap,’’ Tom snapped. Scrambling, I just had time to scrape up
the last piece of paper before the front door opened.
‘‘Good morning,’’ Tom said cheerfully, ignoring my gaff. (He really was
a good actor.) ‘‘I brought along a friend from the office, Jim. He’s new in the
business, so he’s just here to observe today.’’
The sellers were a friendly older couple. They graciously ushered us into
their small home and carefully locked the door behind us. Standing in the
entry, we seemed momentarily at a standstill, not moving forward or back,
until Tom took the lead and said, ‘‘Do you mind if I drop my briefcase at the
kitchen table?’’ The sellers easily agreed, pointing him in the right direction.
Tom gave me a look that read, ‘‘lesson number two.’’ It was obvious to
me that the reason he had asked the question was so that he could return to
LEGENDARY SELLER PRESENTATIONS 141

that location later to do his presentation. Tom later explained that instead of
attempting to keep up with a conversation that bounces back and forth be-
tween a husband and wife, it is always smart to drop your ‘‘stuff ’’ in a strate-
gic location, ideally one where you will be able to maintain eye contact and
read the body language of both your new clients (Figure 6-1).
Now that Tom had deposited his things on the sellers’ well-worn kitchen
table, he stopped for a moment to pet the dogs and ask their names. Then,
after pulling out a note pad and pen from his suit jacket, he smiled and began
his presentation.
‘‘Would you mind giving me a tour of the home?’’
I might have expected that Tom would spend more time visiting with the
sellers over a cup of coffee or looking for something in the home that he
could identify with, like a fishing pole or a picture of a recent vacation, but
Tom didn’t waste time with fake pleasantries. Instead, he had a unique ap-
proach for building rapport and trust with his clients—asking questions.
‘‘Jim, let me ask you a question,’’ Tom explained to me later. ‘‘Does your
doctor sit and have coffee with you, or chitchat about the weather or local
politics?’’
Actually, mine did, but this didn’t matter to Tom. ‘‘Well, mine doesn’t,
and I prefer it that way. I still have a good relationship with the guy; we talk
and joke. But he’s there to do a job, not to be my best friend. Jim, the best
way to build rapport and trust in a professional setting is to focus on the
client’s needs.’’

F I G U R E 6 - 1 . P O S I T I O N I N G F O R A P R E S E N T AT I O N

Place yourself in a position

where you can see all the
parties in a meeting or a
presentation. This will enable
you to maintain eye contact
and read body language.
142 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Tom’s perspective was interesting. Within the selling universe, the words
trust and rapport are often lumped together to create a catch-all phrase that,
roughly translated, means that we need to get clients to like us or identify
with us just long enough to sell them something. The actor Jack Lemmon
provided a cringe-inducing example of this in the movie version of the play
Glengarry Glen Ross: As land salesman Shelly Levene, he barges into a pros-
pect’s home during dinner and struggles desperately to build trust and rap-
port with the bewildered family. Did it work? No; they threw him out of the
house.
Top producers reject the notion that trust and rapport are joined at the
hip. Yes, both are absolutely necessary elements of a successful sales meeting,
but, as wise agents know, our clients are perceptive people. They can see
straight through a salesperson’s vain attempts to build a fake bond or the
illusion of common interests. Instead, wise agents break these two topics
apart and treat them as separate targets.
The first goal of a superstar presenter should be to establish trust within
her new clients. Establishing trust means
that a client should feel at ease and be com- Establishing Trust
fortable enough to provide you with honest and Rapport
answers to your questions. Rapport, on the Trust
Client is at ease,
other hand, is the ability to have an easy, providing honest answers.
free-flowing conversation with your clients
without any jerky stops or starts, dead air, Rapport
Conversation flows
or awkward silences. In short, you need to easily.
be a good conversationalist.
‘‘How do you do that?’’ I asked Tom, considering his suggestions.
‘‘By asking questions!’’ Tom chided me.
As we began a tour of the couple’s home, I watched in awe as Tom,
following his own advice, masterfully built trust and rapport with the couple
by using a series of gently probing questions. This simple yet powerful strat-
egy was the first step in a six-step system that I have come to call Tom’s Six-
Step ACTION Presentation.

L E A R N I N G O P P O R T U N I T Y

Great presenters are great actors; they can completely set aside any
negativity and focus completely on the presentation at hand.
LEGENDARY SELLER PRESENTATIONS 143

Top producers position themselves where they can see all the parties
in a meeting and be able to maintain eye contact and read body lan-
guage.
Superstar presenters establish trust and rapport with their clients
early. Establishing trust means that a client should feel at ease and
be comfortable enough to provide you with honest answers. Rapport
is the ability to have an easy, free-flowing conversation with a client.

The Six-Step ACTION Presentation

If you were to get the crazy idea of taking up The Six-Step Presentation
ballroom dancing and you boldly decided to
begin your first night by attempting a six- Step 1
Ask Questions
step Viennese waltz in three-quarter time to
the music of Johann Strauss, you might
Step 2
soon discover that not only were you born Clarify Answers

with two left feet, but you seemingly were

born with no feet at all. Step 3
Tap into the Audience
Impossible, painful, embarrassing! These
flashes of clarity might detonate in perfect
Step 4
time with each painful connection your back- Introduce Solutions
side made with the freshly waxed floor. Be-
cause even though it looks easy from the
Step 5
sidelines—left turn, right turn, quarter turn, Offer Options

dip, right turn, dip (how hard can it really

Step 6
be?)—it’s actually a very intricate sport. Nurture Decisions
In real estate, our dance floor is our sell-
er’s home, and, not unlike the Viennese
waltz, our seller presentation includes six key steps that must be committed to
memory and practiced rigorously. Our six-step presentation plan (outlined in
the sidebar) can be easily remembered by using the ACTION acronym:

A: Ask questions.
C: Clarify answers.
T: Tap into the audience.
144 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

I: Introduce solutions.
O: Offer options.
N: Nurture decisions.

Step 1: Ask Questions

Asking questions and letting a client talk is the fastest way to build trust and
rapport, as it demonstrates that you are actually interested, engaged, and
committed to building a professional relationship. As one top producer ex-
plained to me: ‘‘When I visit with a seller, I pretend I’m there as a therapist
for the first 10 minutes.’’
How do you get a client to lie down on your real estate couch? Just
remember Tom’s approach: ‘‘Would you mind giving me a tour of the home?’’
While he could have sat down with the clients and asked them a series
of qualifying questions, Tom, like many top producers, noticed that people
tend to be more at ease and willing to answer questions when they are walk-
ing around showing off their home. By giving them something else to think
about, superstars put their clients at ease while asking them gentle, probing
questions. In addition, they don’t overwhelm clients with a barrage of rapid-
fire queries. Instead, they ask carefully crafted open-ended questions. Open-
ended questions are questions that can’t easily be answered with just a simple
yes or no; instead, they require expository thought.
Take a look at seven open-ended first-step questions that top producers
often use during this early meeting phase:

Seven Open-Ended First-Step Questions

1. Where did you move from, and why did you choose this area?
2. What do you like most about living here?
3. Why are you selling?
4. Where will you be moving to, and why?
5. What improvements have you made to the home?
6. What do you see as the home’s best features?
7. How well do you like the neighborhood?

Now, you may notice that many of these questions may have already
been asked and answered during a premeeting interview or perhaps included
in a prelisting questionnaire. If so, any agent can easily modify her questions
LEGENDARY SELLER PRESENTATIONS 145

by making small adjustments. For instance: ‘‘I see on your questionnaire that
you have lived in the home for five years; what’s been the best part of living
here?’’
While Tom gently peppered his clients with questions, he was also taking
copious notes about the home. He had a clipboard in his hand and a pen to
record his data. Today many top producers
expand on this concept by carrying a digital Vesting Strategies
camera, flashlight, and room measurement • Take Notes
• Take Pictures
device. Others bring along a personal digital • Measure Room Sizes
• Record Appliance Info
assistant, or even use their cell phone to • Test Systems
produce a voice recording. Employing these • Look under the Home
• Look in the Attic
techniques is something that I call using a • Locate Property Corners
vesting strategy. Using a vesting strategy
means that you encourage clients to become invested in a professional rela-
tionship by working with them side by side during the interview process. The
more information the seller provides and the deeper you dig for details, the
more likely the seller is to become vested in your relationship. In fact, some
agents go so far as to record appliance serial numbers, test the heating and
air-conditioning systems, and even locate property corners during their first
appointment.
Now, after all that effort, will the seller want to reset the clock and begin
this process again with another agent? The odds are against it. But what
happens if a client suddenly turns cold? He clams up, shuts down, or just
becomes catatonic? Ideally you will have already qualified the client, but
sometimes things change. For instance, a seller who just yesterday was box-
ing up her Bing Crosby collection may now suddenly appear unmotivated,
unready, or unwilling (the three UNs) to market the home. Be very careful
here! Many sellers will become unresponsive or appear to have suddenly had
a change of heart when the problem is nothing more than a case of nerves
or anxiety surfacing. After all, moving is one of the most stressful events in
any person’s life, and stress can make even normal things seem distorted.
Like doctors, we all wear many different hats. One of these hats is to be
a reassuring voice of calm, another is to coax out of our sellers what their
true needs are by qualifying their symptoms, and still another is to confirm
that what they are telling us is actually accurate. This brings us front and
center to the next step in our presentation.
146 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Step 2: Clarify Answers

Have you ever lied to a salesperson? Come on! Yes, you have. We all have;
it’s natural, and besides, lying to a salesperson isn’t really lying, is it? It’s
more like concealment, self-preservation, survival of the fittest. Why do we
do it? What’s our underlying motivation? Clients lie to salespeople because
the salesperson has failed to establish trust and rapport.
In a real estate setting, this can mean that when you asked the seller why
she was moving, when she needed to move, and where she was moving to,
she responded by saying, ‘‘Oh, I’m moving because my husband has been
transferred, and we really need to move up to North Dakota in the next 90
days.’’ The truth is that her husband is in jail and has just been transferred,
and she has to sell the house to pay for his next appeal. Unless you clarify
her answers, you may never learn this vital information.
So how do you clarify answers? The easiest way is to restate to the client
what she has said. This doesn’t mean that we parrot the seller; instead, we
paraphrase or approximate what she said earlier for clarification. Clients will
appreciate this approach because it gives them the opportunity to clear up
any question marks and provides them with an easy way to back out of any
white lies they may have told you without losing face. Let’s take a look at
this technique in action:

Clarification Dialogue
Agent: Ms. Seller, you said earlier that the reason you’re selling is . . . , that
ideally you would like to be moved by . . . , and that you will be moving
to . . . Is that right?
Seller: Yes, and there’s one more thing. . . .

Clarifying a seller’s earlier answers is a master communication tool.

While she may have been hesitant in the beginning to confess all her real
reasons for selling, by the time you ask this follow-up question, often she will
be ready to tell the truth, or at least expand her story. This brings up another
question: When do you clarify answers?
Tom’s choice was to ask his follow-up questions just as he was making
his way back to the kitchen table. This was a good decision, as most top
producers make it a point to clarify answers before they begin their formal
presentation.
LEGENDARY SELLER PRESENTATIONS 147

‘‘So, Mr. and Mrs. Seller,’’ Tom began, ‘‘it sounds like you are thinking
of selling because you would like to be closer to your grandchildren in Ohio,
and ideally you would like to be moved in the next three months. Is that
right?’’
‘‘Yes, that’s right,’’ the wife said pleasantly.
Huh? Did we miss a step? Aren’t the sellers supposed to come clean by
telling us the truth? Yes, but only if they mixed a little bit of fiction into their
story in the first place, and the fact is that most of our clients tell the truth,
especially if, like Tom, you have done a good job of building trust and rap-
port. But don’t be fooled; even with a strong seller connection, we’re not out
of the sales woods yet, because now it’s time to give your clients a real test.

Step 3: Tap Into the Audience

One of the skills of a master presenter is the ability to involve his audience
in the presentation. For a seller, this means that a great real estate presenta-
tion is never passive, like sitting down to watch a movie; instead, it’s active,
like going to a hockey game, where the audience is a vital part of the excite-
ment. After all, without an active, engaged, and often vocal audience, a
hockey game would be pretty boring.
Superstars encourage their clients to be vocal, active participants during
a presentation, not just passive spectators, which is why it is often wise to
give your clients permission to interrupt you, debate you, and even berate
you throughout the discussion. Tom’s technique for doing this was simply to
say, ‘‘As we talk today, I want you to know that this is a discussion, so if any
questions pop into your head, ask them, and if you disagree with any points
or don’t quite catch something I’ve said, please stop me. Okay?’’
Once they have their audience engaged, many agents also find it wise to
lay out what to expect during the presentation itself. This simple technique
gives clients a sense of control and removes any doubts about how the meet-
ing will proceed. Let’s take a look at how one superstar explains the process:

Meeting Outline—Discussion
Just to give you an overview of what to expect during our conversation
this morning, I’ll cover the three main points of selling a home and
answer any questions you may have as we go, and then we can review
148 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

some comparable sales together. The whole presentation shouldn’t

take any more than 30 minutes. How does that sound?

Now that the clients are primed and ready, it’s time to dive headfirst into
the most important part of any presentation—introducing solutions.

Step 4: Introduce Solutions

So you’re ready to roll out your presentation and introduce your solutions.
But how do you do it in a way that is natural? After all, you don’t want to
look uncomfortable getting out your binder or laptop. This simple challenge,
believe it or not, prevents many agents from ever using their presentation.
Instead, they leave it inside their briefcase, and there it stays, never to see
the light of day.
Tom, on the other hand, didn’t have any stage fright; as I sat at the
kitchen table, hands folded in my lap, I watched as he approached this di-
lemma with the practiced calm of a poker player holding a straight flush.
‘‘Do you mind if I just take a minute and show you how I work?’’ Tom said
while pulling back his chair to sit down. Not waiting for an answer, he reached
down and brought out a clean three-ring binder, his listing presentation.
‘‘Sure,’’ the couple said nonchalantly.
That was easy. Really, it is easy. Although I’ve seen speakers recommend
asking sellers for a glass of water to establish control before beginning a discus-
sion (something I find to be a ridiculous idea), the key to opening a presenta-
tion isn’t to establish control; it is to maintain trust and rapport. A seller
mustn’t feel trapped, tricked, or terrified about your beginning your discussion.
Instead, he needs to feel at ease and calm, while enjoying the same free-flowing
conversation that he had with you earlier. A good presentation, then, should
be an extension of your earlier discussion, one that has now simply moved to
the kitchen or dining room.
Once the discussion has begun, you can begin to introduce specific solu-
tions on each page of your presentation. One thing to remember when intro-
ducing each new concept is the strategy of framing. To frame a discussion
means that you take the time to put the subject matter into a context that will
benefit the seller, or at the very least pique her interest. To illustrate, let’s look
at two sample listing presentation pages borrowed from the Luxury Home
Council (www.luxuryhomecouncil.com) and use the technique of framing to
introduce a solution (Figures 6-2 and 6-3):
LEGENDARY SELLER PRESENTATIONS 149

FIGURE 6.2.

‘‘When you hire me to represent your home, I will put together a comprehensive
marketing plan that will include . . .’’ (Review list).

‘‘I have over 25 strategies we can use to help get your home sold for top dollar.
Just for fun this morning I plugged your home into a couple of sample pieces. Tell
me what you think of these. . . .’’

FIGURE 6-3.

‘‘When selling a luxury home we are appealing to a very demanding set of buyers.
They expect only the highest quality.’’

‘‘I often help my sellers get top dollar for their homes by providing advice on what
areas a buyer might notice that living in the home you may not. You may want to
consider (Review list).’’
150 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

In both cases, this agent successfully framed the discussion as ways in

which the seller can benefit from her expertise. She also provided compelling
solutions to the challenges of selling a luxury home and receiving top dollar in
a very competitive market. Now it’s time to offer the seller some options.

Step 5: Offer Options

Would you like French fries or onion rings? A window or an aisle seat? Two
queen beds or one king? Options, options, options. Every day it seems as if
we, as consumers, have more and more choices to make. Why? Because we
like them!
Companies know that because every customer is unique, providing op-
tions is a smart way to create products and services that customers will actu-
ally be excited to buy. In the old days, we used to call this technique the
preference of choice close. Today we just call it a true win-win; the client gets
what he wants, and you get what you want: a happy customer.
So how do you provide options to real estate clients? First, look at each
page of your real estate presentation and see if you can offer the client any
alternatives. At first this may seem like a challenge, but as you begin to
review the possibilities, you may discover that there is an almost limitless
supply of options to offer your clients. Let’s take a look at some user-friendly
preference of choice questions:

Preference Questions: Pricing Pages

‘‘Would you like to consider hiring an appraiser, or would you prefer that
we take a look at my competitive market analysis? It’s free.’’
‘‘Would you prefer to set a higher price and be willing to wait for a buyer,
or would you rather price the home to the market and sell quickly?’’
‘‘Would you like to preset a price adjustment 30 days from now, or would
you prefer to do that sooner?’’
‘‘Would you be willing to help a buyer with closing costs or an interest-
rate buydown, which could help you sell quickly, or would you rather
wait for a buyer who can pay those costs herself ?’’

Preference Questions: Product Pages

‘‘Would you like to offer a home warranty that can enhance the market-
ability of your home at no cost to you unless the home sells?’’
LEGENDARY SELLER PRESENTATIONS 151

‘‘Would you like me to provide you with a list of the best ways to help
your home stand out in the marketplace, or would you prefer to sell the
home as it is?’’
‘‘Would you be willing to begin to pack up nonessentials now, which can
help a buyer picture himself in the home, or would you rather wait until
we have an offer?’’

Preference Questions: Promotion Pages

‘‘Would you like me to do an open house on the property, or would you

prefer just a Realtor tour, or both?’’
‘‘Would you like to have a flyer box or a talking house on the home, or
both?’’
‘‘Would you like to feature interior or exterior photos of the home or
both in our marketing?’’

You might notice that most of these questions assume that whichever
way the client answers, you will be listing the property. This technique is
called an assumptive close, meaning that just by virtue of the client’s answer-
ing you have moved closer to listing the property. If you’re a rookie or even
a veteran who is not used to asking this type of strong question, you can
soften this approach by adding a quick preface to each question. For exam-
ple, some agents add, ‘‘If you decide to work with me’’ or ‘‘If we decide to
work together’’ to each question, thus eliminating the assumptive close por-
tion of the question.
Regardless of the semantics, by offering your clients options, choices,
and alternatives, you are helping them to take baby steps toward an ultimate
decision. This is important because many of our clients have a hard time
making decisions, which leads us to step 6.

Step 6: Nurture Decisions

I used to own a small ranch—a ranchette, as they are called in my area. The
property was beautiful, lying next to a small stream and adjacent to a historic
covered bridge. We loved it.
The first day we moved on to the ranch, my wife had to have chickens.
152 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

As an old farm girl, she loved the thought of having animals scurrying around
the property. So we promptly drove to the local farmers co-op and picked up
some new baby chicks. Not full-size chickens, but little bantam chickens. A
banty chicken is like a miniature schnauzer or a toy poodle, but instead of
being a small dog, it is a minichicken. Within a few months, our tiny little
baby chicks turned into little banty chickens, six hens and a rooster that we
named Caesar. The hens made their home in an old barn, and soon each was
proudly sitting on top of her little eggs.
Being curious, my son Michael, who was three years old at the time, and
I decided to take a peek at the eggs. The problem was that those little hens
weren’t about to let us get near their babies. As we approached each nest, we
talked softly, attempting to coax the hen off of the nest, but to no avail. They
sat down harder, covering their eggs protectively. Finally my son, irritated
that he couldn’t see the eggs, reached under a hen and was rewarded with a
peck to the back of his hand. He screamed as if he had been bitten by a viper.
Over the years I have often thought of my clients as being like those
hens. They won’t be rushed. Colorful and unique, they sit in their home
patiently pondering the idea of listing the home. They nurture their decisions.
For a real estate agent who wants to take a listing, this can be a frustrating
wait, which is exactly why, over the years, I have developed strategies for
helping my clients accelerate this agonizingly slow process. Like using a mi-
crowave instead of a conventional oven, we can help clients speed up their
decision-making process by using four easy strategies:

1. Don’t go big. Going big means forcing the seller to make a big decision
with an ultimatum question like, ‘‘Would you like to list your home
today?’’ Going big is like driving to Las Vegas with your life savings
and placing it all on red; yes, if you win, you might drive home in a
Porsche, but you can just as easily end up hitchhiking home. It’s a
crapshoot.
2. Talk them down. For many clients, making a life-changing decision is
like being a first-time bungee jumper. They want to jump, but they
really, really don’t want to jump. To get them to take that first step into
thin air, the positives must outweigh the negatives. Superstars stack up
as many positive reasons as possible for their clients to take that leap
of faith.
LEGENDARY SELLER PRESENTATIONS 153

Top Producer Tip: If the client has a negative reason for selling—
death, divorce, or financial problems—reframe the negative into a pos-
itive. For example: ‘‘John, I know that when you sell the home, you
aren’t going to benefit financially, but on the plus side, your credit will
be saved, you will be able to move on with your life, and a huge burden
will be lifted from your shoulders.’’

3. Employ the cascade effect. What causes an avalanche to happen? Many

scientists ascribe it to something called the cascade effect, where one
small push or tipping point causes an unstoppable chain reaction. The
same is true in decision making. Top producers use this theory as a
sales tool by finding their clients’ tipping point, their fulcrum of deci-
sion making. They then apply leverage to this point until the client is
buried in an irresistible avalanche of reasons to move forward.

Top Producer Tip: Whenever it is to your advantage, use your own

personal sales statistics to build creditability and motivation: ‘‘From
our earlier discussion, it sounds like getting moved before summer is
over is your biggest concern. During the last year, my average days
on market has been 43 days compared to 69 days for the overall
market, which means that on average I sell homes 26 days faster than
my competitors. How does that sound to you?’’

4. Gift bag it. Trying to rip open a gift-wrapped present can be a challenge,
which is why many people today use a gift bag. From a selling stand-
point, gift bagging means that you make it easy for people to say yes.
For example: ‘‘Now, if you decide to move forward, I have some space
available to do a special feature on your property in the real estate
guide next month. How does that sound?’’

One question that I get asked at every seminar that I conduct is, ‘‘Do I
do all of these six steps in one sitting?’’ It’s a great question and the subject
of a great debate in the real estate industry.
154 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

L E A R N I N G O P P O R T U N I T Y

Top producers use a six-step presentation plan that can be easily re-
membered by using the ACTION acronym:
A: Ask questions.
C: Clarify answers.
T: Tap into the audience.
I: Introduce solutions.
O: Offer options.
N: Nurture decisions.

One-Stage vs. Two-Stage Appointments

It’s an age-old dilemma facing real estate professionals: Do we ask for a kiss
on the first date or the second? In other words, do we go for the listing on
the same day we meet with the clients, or do we spend more time getting to
know the sellers and making them feel more comfortable, and then ask for a
commitment?
The good news is that there is no wrong answer. Many multimillion-
dollar-producing superstars use a two-stage approach, and an equal or greater
number use a one-stage approach (and a few crazies like me alternate be-
tween the two styles). Let’s take a look at both approaches (see Figure 6-4).
The underlying issue in this quandary is confidence. Do you feel confi-
dent enough to ask for the listing after perhaps an hour of talking with the
seller, or do you need more time?
During a one-stage listing appointment, all six steps of the presentation
are completed during one meeting. The advantage to this approach is that it
saves time, both yours and the client’s. With a motivated seller, this is defi-
nitely the way to go. Why? Because when a seller gives you the signal or says
out loud, ‘‘We want to list our house,’’ smart agents shut up and list the
house. The worst thing you can ever do is talk yourself right back out of a
listing, a common occurrence among weak agents.
One of my speaking friends became famous for his one-minute listing
presentation in which he simply asked the sellers: ‘‘Do you like me? Do you
want to list your house with me?’’ He went big. The downside to this ‘‘go
LEGENDARY SELLER PRESENTATIONS 155

FIGURE 6-4.

One-Stage Approach Two-Stage Approach

A: Ask Questions

C: Clarify Answers

All six steps are T: Tap into the Audience

completed during
one meeting. I: Introduce Solutions

O: Offer Options

N: Nurture Decisions

big’’ style is that the client might not like you, or at least might not like you
yet. This is exactly why many agents prefer a two-stage approach.
The two-stage approach to taking a listing means that you complete your
listing presentation over two meetings. The first meeting involves a survey of
the home, where you build rapport and trust with the seller by asking ques-
tions and clarifying answers, and the formal presentation is conducted at the
second meeting. The advantage of a two-stage approach is that it allows more
time for a seller to warm up to you and your sales style, as well as gives you
more time to complete detailed research. One downside, and there are many,
is that, as when digging in wet sand, all of the rapport and trust that you
worked so hard to build might disappear overnight.
So what’s the right answer—one stage or two? Instead of setting a hard-
and-fast rule as to which approach you will use with every seller, why not
make the decision at the seller’s home? How will you know when to pivot
from one approach to the other? Take a look at this decision table:

O N E - S TA G E A P P R O A C H TW O - S TA G E A P P R O A C H

Seller’s motivation high Seller’s motivation low

Competing for listing No competition
156 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Rapport and trust strong Confidence low

All decision makers present Missing a decision maker
Comparable properties accurate Additional research needed

The first rule of thumb is to always be ready to take the listing. That
means that you bring along all of your heavy artillery: listing forms, disclo-
sure statements, and MLS data input sheets. The reasons for attempting a
one-stage approach are straightforward: You think you have an excellent shot
at taking the listing, all the decision makers are present, the seller’s motiva-
tion is high, your data are correct, and you have strong rapport and trust
with the seller. Or you are being blitzed by a 300-pound center for the compe-
tition who will break every bone in your real estate body unless you go for a
touchdown.
The reason for considering a two-stage approach might include a little
more pragmatic thinking. For instance, perhaps one of the sellers seems un-
motivated (not uncommon when you are dealing with a couple) or you are
missing a decision maker or there are flaws in your data (you thought it was
a one bath and it’s a two) or you need to do additional research before talking
about pricing or marketing strategy. Any of these items can lead to a low
confidence level and be a red flag to schedule a second meeting.
But an agent’s lack of confidence may be a warning sign of something
far more serious: his inability to deal effectively with objections, questions,
and concerns, key ingredients in every seller’s decision-making process. To
inspire a client’s ultimate faith and lead her to entrust her most valuable
asset—her home—to you, let’s see how top producers deal with these in Chap-
ter 7, ‘‘Questions, Concerns, and Objections.’’

L E A R N I N G O P P O R T U N I T Y

One-stage approach. Agents who practice a one-stage appointment

technique complete all six presentation steps during one meeting
with a seller.
Two-stage approach. Agents using this approach break up their pre-
sentation over two client meetings, giving them more time to do re-
search and find ways to help motivate a seller to list his home.
 C H A P T E R 7

Questions, Concerns, and

Objections
‘‘I’d like a Realtor to explain why I should pay a percentage to sell a
house. Do you pay your accountant a percentage of your annual
income to do your taxes? Do you pay the guy who washes your car
a percentage of the value of your car to wash it? With the Internet
(zillow, craigslist, information, and so on), you’re being disinterme-
diated right before your eyes. Either you change or you go away.
First step: Charge a fee for your services, hourly if you like. But the
days of percentages are over.’’

How would you respond to this challenge? As a contributor to several

real estate blogs and forums, I was asked to respond to a very similar post in
the largest real estate industry blog (www.realblogging.com). Fortunately,
because many of my own clients have voiced similar concerns over the years,
I had some experience in handling the objection. My response was the fol-
lowing:

In response to the previous comment, I would say that as a Realtor

myself, and someone who charges a percentage for my services, the
difference in how I’m paid for my work and the way an accountant
157
158 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

or a doctor is paid is that I am paid a ‘‘success fee’’ instead of an

hourly fee, meaning that I get paid only if I am successful at doing
my job.
Imagine paying your doctor only if he cured you or paying your
accountant only if he was able to get you a tax refund. Good luck.
Yet, I agree every day to be paid only if the seller receives exactly
what he or she wants. Frankly, sometimes I would much prefer to be
paid for every hour of my time, because in some cases, even though
I have invested thousands of dollars’ worth of my time in a project,
I never do get paid.
If the majority of clients, like you, prefer an hourly rate, market
forces will bring these services to you, and in many markets many of
my friends are using an hourly model already. In other markets,
some agents are offering clients the option of either a success fee or
an hourly fee. The assumption that this will reduce a client’s overall
costs may or may not be true. What you can count on is that Realtors
are powerless in the face of consumer demand. If consumers demand
hourly services, they will get them. But be careful what you wish for;
the next time you visit a Realtor, he may send you a bill for $400 for
taking up an hour of his valuable time.

Do you think I changed his mind? Probably not, but perhaps I got him
thinking about his position. Right, wrong, or in between, everyone has a
position on just about everything. Your position is your take on the world,
how you see things through your life lens.
Unfortunately our perceptions, and therefore our positions, can be dead
wrong. As one of my property managers, a former police officer, likes to say,
‘‘There is what he said, there is what she said, and then there’s the truth.’’
For example, a buyer may not be able to accept the idea that home prices in
one area of the country are different from those in another area, or a seller
may not be able to accept falling home prices. These false perceptions can
give a client some trepidation or outright fear about moving forward with a
decision that’s contrary to his original position.
There is an appropriate acronym for this type of apprehension: FEAR,
or false evidence appearing real. In real estate, our clients come to every
meeting with a set of perceptions, their evidence, on everything from com-
mission rates to pricing strategies. Unfortunately, when a client can’t or
QUESTIONS, CONCERNS, AND OBJECTIONS 159

won’t accept a new position or new evidence, she often becomes full of this
FEAR by allowing old assumptions to override her common sense.
Throughout history, there have been numerous examples of people rely-
ing on FEAR to make bad business decisions. One of the biggest examples
of this is the story of William Orton and Alexander Graham Bell.
In 1876, Bell had won the race to the patent office (by mere hours,
narrowly beating out Elisha Gray) to become the first person to hold a patent
on a crazy device called a telephone. But shortly thereafter, when Bell and
his new bride left on their long-awaited honeymoon, Gardiner Hubbard,
Bell’s father-in-law, and another man, George Sanders, the biggest investor
in the enterprise, decided to unload the patents for some quick cash. They
pitched the patents to communication giant Western Union. The asking
price? $100,000!
Western Union’s president, William Orton, responded to the proposal by
saying, ‘‘This ‘telephone’ has too many shortcomings to be seriously consid-
ered as a means of communication. The device is inherently of no value to
us.’’ He rejected the offer. His FEAR of something new, a device that would
go on to replace the telegraph, clouded his position and his decision.
So how can we overcome this FEAR and gently sway our clients’ percep-
tions on areas where they may have objections, concerns, or questions? The
first step is helping them to say no.

L E A R N I N G O P P O R T U N I T Y

Positions. Our clients’ positions are formed from their unique world-
view. To change their positions, we must change their perceptions.
FEAR. Many times our clients’ decision-making process becomes
clouded by allowing FEAR to overrule common sense:
F: False
E: Evidence
A: Appearing
R: Real

Teaching Clients to Say No

My partner and mentor in the real estate brokerage business, Dick Calafato,
is a legendary sales professional. Working first as a dynamic salesperson, he
160 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

listed 223 homes and closed over $14 million in sales during his first two
years in the business. Then in 1972 he founded All State Real Estate (www
.allstaterealestate.com) and grew the organization to 165 offices and over
3,200 sales associates in seven western states.
One of Dick’s most famous approaches to working with client questions,
concerns, and objections is encouraging clients to say no. Sounds strange,
right? But Dick spells no a little differently from the rest of us; he spells it
K-N-O-W (Figure 7-1). So when the rest of us hear an objection or a flat-out
no, what he hears is a client saying, ‘‘I don’t know enough information to say
yes.’’ For example, ‘‘I don’t know why I should list with you’’; or, ‘‘I don’t
know why I should pay you X percent of the purchase price’’; or, ‘‘I don’t
know why I should give you a three-month listing.’’
For Dick, hearing the word no means that he needs to stop, drop what
he is saying, and listen to his clients. He needs to assess what information
his clients are basing their decisions on and attempt to influence their posi-
tion by providing them with additional points of reference. His reasoning is
that without a dialogue, a give-and-take, a push and push back, clients often
won’t move forward with a decision. Do they always come around and agree
with him? Obviously not, but by moving toward objections instead of away from
them, he has a much better opportunity to convert these clients into closings.
Let’s look at five ways superstars, like Dick, encourage objections:

Five Ways to Encourage Objections, Questions, and Concerns

1. ‘‘Listen, as we talk today, I want you to feel completely comfortable
asking me any questions or voicing any concerns that you may have.’’

FIGURE 7-1. IS IT A NO OR A KNOW?

No, I think I
will wait until
spring to list my She doesn’t
home . . . know why she
should list her
home today in a
hot market. . . .
QUESTIONS, CONCERNS, AND OBJECTIONS 161

2. ‘‘Is there anything holding you back from moving forward, any ques-
tions or concerns that you may have?’’
3. ‘‘Based on what we’ve covered so far, do you have questions I can
answer for you?’’
4. ‘‘Before I begin today, do you have any specific questions or concerns
that you would like me to address?’’
5. ‘‘Have you had any past issues buying or selling real estate that concern
you today?’’

Superstars don’t sell clients on decisions. They don’t use fast-talking,

slick techniques to manipulate clients into making decisions. Instead, they
provide buyers and sellers with a different perspective on each issue, a new
way of looking at the world. In some cases, this new information will be
enough to motivate a client to take action; in other cases it will be like talking
to a pet rock—the client won’t budge even when it is in his best interest.
By focusing on how we react and deal with an objection, not on the
endgame or outcome, we can free ourselves to focus at all times on the one
thing we can always control—our own actions. So what should our first action
be when we hear an objection? For many top producers, their first step is to
ignore it.

Learning Challenge: Seek out objections by asking for a client’s

input frequently as a way to move the decision-making process for-
ward. Also assess what information your clients are basing their deci-
sions on and attempt to influence their position by providing them with
additional points of reference.

Early Minor Objections

We are taught from birth not to trust salespeople. It’s true. As consumers,
we often express objections not as a real barrier to working with a salesper-
son but as a defense against moving too quickly or being pushed into a deci-
sion unnecessarily. Why? Most Americans have the ingrained notion that
salespeople are out to get them, to steal their money, take their babies, and
run off with their spouses (okay, maybe it’s not quite that bad). But consider
162 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

how you react to meeting a new salesperson. Are you filled with feelings of
warmth, trust, friendship, and good cheer? Or instead are you immediately
consumed by nervousness, distrust, dislike, or even outright hostility?
The bottom line is that, as salespeople, we don’t have a lot of built-in
goodwill. Instead, we have to earn our clients’ trust over time. This is exactly
the reason that in the beginning of a new relationship you may run headlong
into a thorny hedge of early minor objections.
An early minor objection is simply an objection that you hear over the
phone or very early in a client meeting. This first line of defense for a client
is meant to push you back, to keep you, the salesperson, at bay until the
client decides she is ready to let you into her personal decision-making space.
For example, take a look at this short list of common for-sale-by-owner
objections.

‘‘I won’t pay a fee.’’

‘‘If I list, I’m going to list with a friend.’’
‘‘We’ve sold many homes by ourselves.’’

Ring any bells? Be honest; I bet you have been stopped cold by at least
one of these statements during your career. You’re not alone. These knee-jerk
objections stop 95 percent of agents from pursuing a listing any further.
Superstars, on the other hand, realize that these early minor objections are
nothing more than a conditioned response, like a stuffed animal at a toy store
that says, ‘‘Hug Me’’ . . . ‘‘Love Me’’ . . . ‘‘Squeeze Me’’ when a button is
pushed. But most agents have a terrible habit: They treat all objections
equally, as if each objection, question, or concern is an appointment-killing
missile that will explode on impact as soon as it is launched from the client’s
mouth. This is simply not true. In fact, most objections are just a client’s
automatic reaction, or conditioned response, and for a top producer, they
can amount to nothing more than a minor bump on the road to taking a
listing.
So how do you deal with these potentially lethal conversation stoppers?
The best way to deal with early minor objections is not to deal with them.
Yes, I know; it goes against the grain for most of us not to jump in, roll up
our sleeves, and attempt to engage in a verbal dual of wits with a seller, but
this approach is very likely doomed to failure. Why? Because the better your
offense, the more entrenched and committed the client’s defense will be-
QUESTIONS, CONCERNS, AND OBJECTIONS 163

come. As when two evenly matched tennis players meet, the verbal volley
will continue indefinitely, or at least until the seller walks off the court. To
avoid this no-win scenario, strong agents take a unique three-step approach
to dealing with early minor objections. Let’s take a look:

The Three-Step Method: Early Minor Objections

1. Listen and empathize: ‘‘I understand.’’ Wise agents give their clients
no platform for continuing to object. They are neither offensive nor
defensive in their posture. Instead, they listen and empathize with the
client’s point of view. To achieve this state of swami-like serenity, su-
perstars use the magic words I understand. This easy technique can
reduce a client’s need to shovel himself into a defensive bunker and
gives an agent a simple way to neither agree nor disagree with the
client’s statement.
2. Sidestep: ‘‘At this point . . .’’ Don’t accept the objection. Like an unex-
pected gift from your ex-husband, this package can be marked ‘‘return
to sender.’’ Why? In this case, it’s way too early in your new relation-
ship to begin dealing with objections. Wise agents smoothly move past
the issue by simply saying, ‘‘I understand, but at this point . . .’’
3. Close: ‘‘Is today good . . . ?’’ Once you have moved past the issue, it’s
time to move on and either set the appointment over the phone or
move into the next topic of conversation at the seller’s home. Agents
who stand their ground in a vain attempt to win each debate often find
themselves left debating which fast food management course looks the
most promising.

Now let’s put this three-step method to work and take a look at how
strong agents deal with early minor objections:

‘‘I won’t pay a fee!’’: ‘‘I understand how you feel, but at this point all I
would like to do is take a look at your home to see if it would fit any of
my buyers’ needs. I don’t charge anything for stopping by and looking at
the home. Could I come by today, or would tomorrow be better?’’
‘‘If I list, I’m going to list with a friend’’: ‘‘I understand, and I can certainly
respect your loyalty to your friend, but at this point you are trying to sell
on your own, right? The information that I have will help you do that,
sell on your own without the help of a professional. May I show you my
free For Sale by Owner kit?’’
164 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

‘‘We’ve sold many homes by ourselves’’: ‘‘I understand that you’re trying to
sell on your own, and I respect your decision. At this point, what I would
like to do is bring you some information that will help you sell on your
own, without the help of a professional. Is today good, or would later in
the week be better?’’

None of these responses deals directly with the stated objection; instead,
in a sense, they all ignore the objection by sidestepping it. Interestingly, these
seemingly insurmountable objections often don’t resurface. They just fade
away. How is that possible? Once an agent has successfully built trust and
rapport with the client, and then provided an exciting presentation of her
services, many of these questions, concerns, and objections disappear.
A terrific quote from one of my mentors years ago is this: ‘‘A great pre-
sentation closes itself.’’ Think about a time when you experienced a great
presentation. What happened next? Did you immediately begin formulating
objections, reasons why you shouldn’t move forward? Or instead did you
become the advocate and begin looking for ways to move ahead?
Yes, great presentations close themselves.
But what if the objection, like bad breath, just won’t go away? What if it
comes back at the worst possible time, like right when you are concluding
your home tour and are warming up for your big dog-and-pony show? Now
it’s time to move up to dealing with serious or restated objections.

L E A R N I N G O P P O R T U N I T Y

Early minor objections. These are objections that you hear over the
phone or very early in a client meeting. In many cases, these objec-
tions are nothing more than a filtering device, a smokescreen to pre-
vent agents from becoming too aggressive.
Three-Step Method: Early Minor Objections
1. Listen and empathize: ‘‘I understand.’’ Let the client know that you
care.
2. Sidestep: ‘‘At this point . . .’’ Smoothly move past the objection.
3. Close: ‘‘Is today good . . . ?’’ Set the appointment or go on to the
next topic.
QUESTIONS, CONCERNS, AND OBJECTIONS 165

Serious or Restated Objections

Early in my career, I decided that sellers must have a secret club, an invita-
tion-only back-alley joint where they swap stories on how to avoid working
with real estate agents. I came to this conclusion because at almost every
interview I went on I heard the same nearly verbatim objections. Inevitably
sellers would say something like, ‘‘Thanks, Jim, but . . .’’

‘‘We’re going to wait until spring.’’

‘‘We have a family member in the business.’’
‘‘We don’t want to pay X percent.’’
‘‘We had a bad experience with another agent.’’

Eventually I accepted the idea that I would have to learn how to handle
these common seller concerns effectively, because even with a terrific presen-
tation, my business would be doomed to a slow stall and perhaps even a
horrific nosedive unless I could learn to answer sellers’ objections smoothly.
Fortunately, another real estate veteran came to my rescue by explaining his
secret to handling every objection using a system that he called the TREAT
approach.
You might think of this technique in terms of a surgical procedure. If you
have ever had an operation, you know that the highly trained doctors and
nurses go through a preoperative routine before beginning any new surgery.
Step by step, they prepare the room, the patient, and the tools needed for
surgery. They know that if they follow a strict routine they will be less likely
to make a mistake that could cost a patient his life. Like these medical profes-
sionals, real estate professionals are wise to take a similar approach by using
the TREAT approach when dealing with serious or restated objections. Let’s
take a look at this technique by breaking down the steps:

T: Track
R: Restate
E: Empathize
A: Answer
T: Trial close
166 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Track
The first step in dealing with a major objection is to move toward the objec-
tion by getting on the same track as the seller. One of my own agents, Dave
Moore, uses an unusual technique to accomplish this goal. When a seller
begins to express an objection, he stops talking, listens to the concern, nods
his head, and uses a long pause before addressing the issue. Sometimes he
may even add a ‘‘Hmmmmm . . .’’ to his pause, for dramatic effect.
Sound a little nutty? Not really. A surprising number of sellers will an-
swer their own objections if they are given ample time and space to do so.
This may sound incongruous; after all, why would a seller bring up an objec-
tion if he already knows the answer? The answer is that in many cases he
feels compelled to do so; for example, take a look at this exchange:

Seller (Husband): John, we like your presentation, but my cousin is in the

real estate business.
Agent: ⬍Nods his head.⬎ Hmmmmmmm . . . ⬍pause⬎.
Seller (Wife): I wouldn’t list our house with your cousin if he were the last
man on the planet. The guy is an idiot.

In this example, the husband felt a moral obligation to at least mention

his cousin. But both he and his wife (and I bet his cousin as well) knew that
they would never list the house with the guy. The same is true for many
sellers; they feel that they must at least ask for something or throw out an
objection before moving forward with a big decision. Wise agents don’t fall
for these red herrings. They give the seller time to answer her own objection
or move past it entirely.
But does this technique work with all objections? Of course not, which
is why it’s so important to learn all the steps in the TREAT approach. Let’s
look at the next step in this technique.

Restate
Strong communicators are often a little redundant; in other words, they tend
to repeat what’s just been said before continuing with a conversation. Did
you get that? Strong communicators tend to repeat things before continuing
with a conversation. Restating an objection may sound like a waste of time
to some agents; after all, why would you repeat what a seller has just said?
But there are actually a couple of good reasons. First, clarifying a seller’s
QUESTIONS, CONCERNS, AND OBJECTIONS 167

concern before diving in and formulating an answer is a good communication

skill because often we may have misunderstood the client. For example, an
agent asks a seller, ‘‘Did you just say you don’t want to market the property
until you get more ice cream?’’ And the seller replies, ‘‘No, no, no; I said that
we don’t want to market the home until we are able to get the home cleaned.’’
Ah, yes, that makes more sense.
But often the communication gaff isn’t that you are mishearing the seller
but that the seller just isn’t making sense. Like a seller who says, ‘‘I need to
sell quickly, but I need to wait until after Christmas.’’ What? What kind of
crazy statement is that? By repeating back to a seller her own wacky com-
ments, it gives her a chance to correct herself: ‘‘No, no; I meant to say that
we would like to sell soon after Christmas.’’ Ah, yes, obviously so that she
can take advantage of that post-Christmas real estate rush.
Another important reason to restate a client’s comment is to isolate the
objection. Why isolate an objection? Have you ever noticed that when you
answer one objection successfully three more can pop up in its place like
weeds? Like a merciless track coach, the seller keeps giving you one hurdle
after another after another, until finally you end up a bloody mess.
What’s the solution? Isolate each objection by making absolutely sure
that this is the one and only reason the client is hesitant to move forward.
How? Take a look at how one superstar makes this happen in the real world:

Isolating the Objection Script

Mr. and Mrs. Seller, just so I understand you correctly, the only reason
you are not comfortable moving forward today is ⬍state objection⬎.
If we set that aside for a moment, is there anything else that’s holding
you back?

Once the seller has committed himself to one objection (or even several),
the agent can move on to the next step in the TREAT approach: empathizing
with the client.

Empathize
What’s the difference between empathy and sympathy? One of my real estate
mentors asked me this early one winter morning before heading out to one
168 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

of his many appointments. After waiting a full tenth of a second for me to

answer, he went on to give me his oddball version of a definition:

‘‘Jim, I’ll tell you the difference. Suppose you were standing on a
cruise ship one evening, say out on the poop deck, and you saw a
young woman standing near the rail crying. Being the gentleman that
you are, you might approach her to ask what was wrong. Now sup-
pose she told you her whole sad life story, and then, just as she was
wrapping up, she suddenly jumped overboard. A sympathetic person
might get so caught up in the tragedy that he would leap in after her,
but an empathetic person would just lean over the railing and wave
good-bye!’’

It’s an interesting analogy—a little kooky, but that’s a top producer for
you! I think what he was trying to say is that having sympathy for someone
means that you have such deep compassion for the other person that you
may even begin to share that person’s feelings. During my wife’s last preg-
nancy, for instance, I had sympathy pains for her during labor and delivery.
In a personal or family setting, this is perfectly acceptable (unless the doctor
attempts a C-section). Empathy, though, means that we understand what the
other person is experiencing without experiencing it ourselves. We have some
distance. This is an important distinction, especially when we are working
with a client in a professional relationship.
Great agents are very empathetic. They understand what their clients are
going through and attempt to help their clients’ real estate transactions go as
smoothly as possible. So when she is faced with an objection, a wise agent
will often empathize with a seller’s dilemma by saying the magic words I
understand. For example:

I understand that X percent of the purchase price is a big investment.

I understand that you are loyal to your previous agent.
I understand that you would prefer to wait until spring to get started.

Now, just because you understand the objection doesn’t mean that you
agree with it; instead, it simply means that you can understand the seller’s
viewpoint. You can empathize with her situation.
Many top producers find it wise to dig deeper with their clients by explor-
QUESTIONS, CONCERNS, AND OBJECTIONS 169

ing other aspects of their clients’ thought processes. Check out how they dig
for details:

Digging for Details

Encouraging: ‘‘Please tell me more. . . .’’
Clarifying: ‘‘Explain what you mean by that. . . .’’
Normalizing: ‘‘I’ve had other clients who . . . ’’
Soliciting: ‘‘I would like your ideas on that. . . .’’
Validating: ‘‘I appreciate your willingness. . . .’’

Now that you have heard the client’s concerns, it’s time to answer his
objection. So roll up your sleeves and put your hard hat on; it’s time to go to
work.

Answer
Here’s the thing. There are about 10 objections that you will hear over and
over again in your career. Sure, you can try to duck and cover, or you can
try to overpower your clients with your dazzling smile, but we both know
that neither of these approaches will work in the real world. Answering an
objection is where the rubber hits the road. Either you have an answer or you
don’t. You can’t fake your way through it, leapfrog over it, sidestep around it,
or even flat out ignore it. A restated or serious objection is the pink elephant
sitting on the couch next to you; she’s not going anywhere, and she’s getting
hungry.
So how do you formulate answers for this relatively short list of common
seller concerns? The answer is to become the client and ask yourself: If I
were a real estate seller, what would I say yes to? I call this building a yes-
able answer, something that you would agree to if you were sitting on the
other side of the kitchen table.
Real estate agents are solution driven. They want answers handed to
them gift wrapped, batteries included, so that they can run out and use the
solution instantly. Unfortunately, this can lead some agents to give an answer
to an objection that they would never in a million years buy into if they were
the client. For instance, let me give you an example of an answer that I hear
speakers use all the time that audiences always seem to lap up like cats with
a saucer of milk.
170 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Objection: I think your commission is too high.

Speaker’s Stage Answer: Well, I understand what you’re saying; the commis-
sion is a big investment. But one thing you should understand is that the
commission actually covers many services. In fact, let me show you what
that fee actually includes ⬍show off a list of services⬎. Now, if we were
to reduce the fee, which of these services would you like me to eliminate?

Some agents may feel that this is a terrific, yes-able answer, something
that would make sense to them if they were the seller. They buy it so that
they can sell it. For me, it just doesn’t work. In my market, I can just imagine
a seller gleefully grabbing that list from my hands, marking off 10 items, and
then handing it back to me with a smug smile and a reply of, ‘‘Great. Now
what will you charge me?’’
That being said, I answer that objection before the end of this section,
and I also provide you with field-tested answers to 10 additional common
seller objections before the end of the chapter. These answers should give
you, at the very least, a starting point to begin crafting your own inventory
of answers to tough seller questions. Your own unique answers should be-
come an essential part of your selling vernacular, because once you have
answered the client’s concern, it will be time to take the last step in the
TREAT approach—the trial close.

Trial Close
Probably very few of us have ever set foot in a courtroom other than to pay
a parking ticket or to bail out our spouse (again!). But I’m sure most of us
have watched trials on television. For me, the most interesting part of a court
proceeding is the closing arguments, which in many ways are really just a
high-stakes game of presenting and answering objections. The prosecution
attempts to tear down the defense arguments by appealing to the jury’s com-
mon sense. The defense, on the other hand, works feverishly to provide alter-
native explanations, refute the evidence, discredit the expert testimony, and
plant seeds of doubt in the jury’s mind.
During this process, the best attorneys are the ones who can read the
jury. Are the jurors nodding their heads, smiling, engaged, and receptive, or
instead are they shaking their heads, arms folded, fists clenched, not at all
drawn into the attorney’s version of the facts? It’s an important skill for an
attorney to develop.
QUESTIONS, CONCERNS, AND OBJECTIONS 171

Who will win? Typically the side that has done the best job of creating
answers that a jury can buy into. Likewise, as real estate agents, we, too, need
to develop the ability to read our clients. But unlike attorneys facing a jury,
we have a distinct advantage: We can ask our clients direct questions to learn
their opinions about our suggested solutions. This process is known as asking
trial closing questions.
A trial close is simply a way to test the waters to determine whether a
client is buying your explanation, solution, or argument. Typically a trial clos-
ing question will come directly after an agent has delivered a potential solu-
tion or an answer to an objection. Let’s take a look at some ways in which
agents might use a trial close to find out if their clients are actually buying
what the agents are selling:

Does that sound reasonable?

Does that make sense?
How does that sound to you?
Does that sound fair?
What do you think?
What are your thoughts?

Now, you might imagine that not all of your clients will agree with your
newfangled solution. You’re right; some might even say, ‘‘That’s the dumbest
idea I’ve ever heard,’’ or, ‘‘I’m still not convinced that moving forward is my
best option.’’ What then? Good news; the reason we call this a trial close is
that it is first and foremost a test, a trial run of your argument. If it doesn’t
work out, no problem; you just shift gears and try another answer that may
sound more reasonable to the client.
Can you imagine an attorney being able to say to a jury, ‘‘Hey, listen,
what do you think of this defense? Don’t like it? No worries; I’ve got three
more I want to run by you.’’ Now let’s see how this might work in a real-
world situation by tackling the number one objection in the marketplace—the
commission objection.

Handling the Commission Objection

Client: Listen, we just can’t see paying X percent of the price to work with you
when other agents charge less.
172 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Agent: Hey, listen, I understand how you feel, and to be honest with you, a lot
of my clients have felt exactly the same way. But what most of my clients
have found is that the most important issue for them hasn’t been that they
might be able to save 1 percent or even 2 percent with a discount broker;
it’s been how much they might have to sacrifice to make that happen. You
see, the number one service my clients are looking for when they hire me
to represent them is my skill as a negotiator. If I can help them make an
extra 5, 10, or even 20 percent on the proceeds of their sale, they come
out winners. How does that sound?

And/or

Agent: I understand that you feel the commission is a big investment. Many
of my clients have felt exactly the same way. But let me tell you what a
few of them have found after they listed with a discount broker. Generally,
when one of these brokers lists your house, he is providing a limited ser-
vices agreement. One way discount brokers often save money is by offering
cooperating brokers less money to sell your home. So imagine you’re a
real estate agent and you have 10 homes to show; nine of them are offer-
ing a full fee, and one is offering a discounted fee. Which home would you
show last? ⬍Answer⬎ With fewer buyers looking at their home, sellers
often end up taking less money for their home, or even not selling at all.
Are you comfortable with your home being the last home shown?

You might notice that at the end of this objection, we tested the seller’s
reaction to our argument by using a trial close. In addition, we used another
ancient (in the sales world, ancient means 10 years old or older) technique
called the feel, felt, found method. The feel, felt, found method can be used
with any objection to instantly put a seller at ease because it normalizes a
seller’s objection by letting her know that other people have shared her con-
cern, as in, ‘‘I understand how you feel; others have felt the same way, but
what they found was . . .’’
Now that we have mastered the TREAT approach, let’s take a look at
how top producers handle 10 other common seller objections.

L E A R N I N G O P P O R T U N I T Y

To deal with serious or restated objections, many agents use the

TREAT approach.
QUESTIONS, CONCERNS, AND OBJECTIONS 173

T: Track. Get on the same page as the client by listening to his con-
cerns.
R: Restate. Clarify the client’s concern by restating the objection
back to him.
E: Empathize. Let the client know that you understand his position.
A: Answer. Formulate a yes-able answer to the objection.
T: Trial close. Test the client’s acceptance of your solution.

Answering 10 Common Seller Objections

One of the benefits of becoming part of a profession that has been around
since the dawn of carbon copies is that we get to learn from other, more
experienced agents what works and what doesn’t in the real world of real
estate. Because these veteran agents have done the heavy lifting, all we have
to do is follow their lead. So let’s take a look at how superstars respond to
10 common seller objections, the same ones we all hear day in, day out.
While you’re reviewing these answers, take a minute to decide if they are
a good fit for your selling approach or how you might modify them to fit
your own personality and delivery style.

1. I have a friend/relative in the business.

I can understand that, and I respect your relationship with

your relative/friend. Let me ask you, has your relative/friend
called you in the last few days about selling your home?
⬍No⬎ Do you think it’s possible that he doesn’t want to jeop-
ardize your personal relationship by entering into a business
relationship? ⬍Pause⬎ After all, it would be tough to ask him
to pull the sign out of the lawn, wouldn’t it?

Or

I can respect your personal relationship with your friend/rela-

tive. Setting that aside for just a moment, let me ask you: If it
were simply a question of which person offered the most ser-
vices for the same cost and, more important, who could net
you the highest price possible, would you allow me to share
what my company can offer you?
174 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

2. I don’t want to pay a fee.

I can understand how you feel. Many of the For Sale by Own-
ers I talk to about selling have felt exactly the same way, but
what many have found is that buyers often ask the seller to
reduce the price by the amount of the real estate fee anyway,
so the seller often ends up paying the fee whether she uses an
agent or not. Let me ask you, though, if I can show you how
my marketing plan could actually net you more dollars than
you could get on your own, would it be possible to show you
how I work?

Or

I understand, but what you’re really after is the highest amount

of net dollars to you after closing, right? ⬍Yes⬎ If I could
show you how my marketing plan can expose your home to
more buyers, so that you could secure a higher price and net
the same amount of money, or actually make a little more,
would you allow me to show you how I work?

3. I’m going to try it on my own for a while and then list.

I can understand how you feel. If you sell the home on your
own and save the commission, you will be that much further
ahead, right? Many of my clients have felt the same way, but
what’s interesting is that they lost about 40 percent of the
market when they attempted to sell by owner. The reason is
that statistically 4 out of 10 buyers are out-of-area buyers,
meaning that they’re coming from another city or state, and
those buyers work almost exclusively with real estate agents.
How do you feel about that?

Or

I can understand your decision. In fact, many of my clients

have started out as For Sale by Owners. May I ask how long
you plan to market the home yourself before you hire an
agent? ⬍Answer⬎ Let me ask you this: If I could demonstrate
how I can handle all of the details, decrease your marketing
time, and still net you as much as or more than you can get
selling by owner, would you consider moving up your time-
table?
QUESTIONS, CONCERNS, AND OBJECTIONS 175

4. I had a bad experience with another agent.

I’m sorry to hear that. I can understand that you would be

hesitant to talk with another agent. Can you tell me what went
wrong? ⬍Answer⬎ If I can provide you with some letters of
reference from some of my clients who were completely satis-
fied with my professionalism, would you give me a chance to
show you how I work?

Or

I understand. One thing that I give all my sellers is a written

guarantee of service. If anyone is unhappy with me for any
reason, he can fire me and hire another agent. Does that sound
fair?*

5. I can’t afford to sell if I have to pay a fee.

I can understand your position. In fact, I have had several

clients in exactly the same situation. Let me ask you this: If I
could secure a higher price for your home than you can on
your own, enough to justify my fee, wouldn’t it make sense for
you to use my services? May I show you how I believe I can
make that happen?

Or

I understand what you’re going through; one of the ways I

have helped other sellers in similar situations is to work with
their lenders on a short sale agreement, where the lender
agrees to take a discount on its fees or loan to facilitate a sale.
What’s really important is that the home gets sold, you get
what you need out of it, and you move on with your life, isn’t
that right?

6. We’re going to wait until . . .

I can understand how you feel. Let me ask you, what was
your ideal target date for moving? ⬍Answer⬎ In our area, the
average number of days it takes to sell a home is ⬍⬎. In

*Check with your broker about using a guarantee of service.

176 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

addition to that, there is an escrow period of usually ⬍

days⬎. So that means, from today’s date, you would be look-
ing at ⬍Date⬎ before you would actually be moved. Are you
comfortable with that?

Or (We’re waiting until spring/summer.)

It’s true that spring/summer is one of our peak selling seasons,

so I can understand how you would feel that way. In fact,
many of my sellers have felt the same way you do, but what a
lot of them have found is that because most sellers, like you,
wait until spring/summer to list their home, there are a lot
more homes on the market during those times. More competi-
tion for buyers can mean that sellers become more likely to
accept lower prices.
So would you rather wait until spring/summer and com-
pete with everyone, or would you rather start now and get top
dollar for your home?

7. We’re going to list with . . .

I understand. Let me ask you, is there a specific service that

that company is offering that is helping you to make your deci-
sion? ⬍Answer⬎ If it were simply a question of who could
offer you the most services, would you go with the person who
could offer you the most value per dollar spent? ⬍Answer⬎
May I just take a couple of minutes to show you an apples-to-
apples comparison of our services?

Or

I understand your decision; ⬍Agent name⬎ is a good agent.

Let me ask you this, though: I know that many of my clients
comparison shop before they choose an agent; have you con-
sidered allowing someone to give you a second opinion on the
marketing of your home? I know that for many of my clients
selling their home is the largest financial decision of their
lives.
QUESTIONS, CONCERNS, AND OBJECTIONS 177

8. We’ve decided not to sell.

I understand. May I ask what your original reason for selling

was? ⬍Answer⬎ Has that changed? Let me ask you this: If
you were able to receive what you were asking for the home
within a reasonable time frame with the least amount of incon-
venience possible, would you reconsider your decision?

Or

I understand. Is the reason you are choosing not to sell some

frustration you may have had with your previous agent?
⬍Yes⬎ Can you tell me what went wrong? ⬍Answer⬎ What
I provide my clients is a 10-point guarantee of service that
outlines everything I’ll do to market your home if you decide
to hire my firm. Does that sound reasonable?*

9. We have some buyers interested.

I understand. One way we help sellers like yourself to shake

out the real buyers from the tire kickers is by listing the prop-
erty with a ⬍⬎-day exclusion. Here’s how it works. Once
we have listed the property with your permission, we call the
buyers on your behalf and alert them that the property has
been listed, but that they have been given an exclusive for
⬍⬎ days. This means that they have ⬍⬎ days to make an
offer and still buy the property at the prelisting price. Using
this method, you can benefit from all your hard work and
still get started using our marketing services. Does this sound
reasonable to you?

Or

I understand how you feel. You would sure hate to pay a real
estate fee if one of those buyers came through, wouldn’t you?
How long are you prepared to wait for the buyers to make a
decision? ⬍Answer⬎ One way I could get started working on
your property is by postdating the listing agreement until that
date. You could also tell your buyers that if they don’t make a

*Check with your broker about using a service pledge.

178 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

decision by that time, the home will be on the open market—it

might inspire them to make a decision or shake them out if
they are just tire kickers. Does that sound like a solution?

10. I need to talk with . . .

I understand how you feel. Selling your home is a big decision.

Listen, some of my clients are a little hesitant about moving
forward because they want to make sure they understand all
the facts. Are there any questions or concerns that you have
about listing the home that you would like to discuss with me
while I’m still here? ⬍Answer⬎ Would you feel comfortable
completing the paperwork subject to ⬍Name’s⬎ approval
within a couple of days?

Or

I understand. Is there a specific concern about listing the prop-

erty that you need to discuss with ⬍Name⬎ before making a
decision? ⬍Answer⬎ How would you feel about completing
the paperwork today but then keeping the documents yourself
to review with ⬍Name⬎? If it meets with his or her approval,
you can just give me a call to come by and pick up the listing
and we can get started.

Now let me guess: You can think of 10 more objections that we could
have added to this list, right? Good! Superstars look forward to these chal-
lenges; they embrace their sellers’ questions, concerns, and objections in the
same way a doctor looks forward to a unique patient whom she can help, or
an attorney relishes a juicy case.
For a top producer, the ultimate goal is to help each of these clients
achieve his real estate goals by gaining his acceptance, something that we
will explore in depth in Chapter 8, ‘‘Making the Big Decision.’’

Learning Challenge: Study the various approaches for handling ob-

jections and adapt them to your own selling style and personality to
create yes-able answers.
 C H A P T E R 8

Making the Big Decision

The listing agent tracked me down at a business dinner to give
me the good news. The decision had been made. I could buy the RV park for
$2 million with a down payment of $400,000, and the seller would even agree
to take back a note for the balance. The listing agent was giddy with excite-
ment. The seller had just called and given a verbal approval. This would be
her largest sale ever!
But sitting at the restaurant with my family and friends, I had a sixth
sense. My instincts were telling me that the deal wasn’t done. ‘‘Can we get it
signed tonight?’’ I asked. To her credit, the listing agent, who had bent over
backward to make the deal come together, told me that she would attempt
to get the seller’s signature that night.
Two hours later, the call came in: ‘‘She won’t sign it.’’ In a despondent
voice, the agent went on to explain that the owner was having second
thoughts about accepting such a low down payment. In fact, she had now
decided that she needed a $700,000 down payment.
Decisions are often thought of as a final point, the apex of a mountain
of smaller choices that, once committed to, are immediately cast and fired
into a mold that becomes a person’s ultimate verdict. But client decisions
aren’t immovable mountains; instead, they are more like wide, flowing rivers,
stopping and starting, swirling and bending in response to a client’s ever-
changing mental landscape. At one point the waters can be glassy and clear,
179
180 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

with a decision seemingly set in stone; later, even within the same hour, the
waters can turn to a churning white froth of dangerous rapids, where clients
waffle, turn, and even flip their decisions completely over.
What happens in those few minutes? What changes a seller’s mind?
Two major types of issues can come back to haunt even the best real
estate agents. I call these two types above-the-water issues and below-the-
water issues. Above-the-water issues are outside factors that can suddenly
crop up to change a seller’s mind about moving forward. Like an iceberg,
these floating time bombs arrive at just the wrong moment. Within a real
estate presentation, this might be the influence of a client’s family, friends,
or coworkers. Below-the-water issues are hidden influences that only the sell-
ers are aware of. These might include undisclosed debts or financial obliga-
tions, timing problems, spousal disagreements, or even just a bad case of
seller’s remorse. For example, the RV park owner’s decision reversal was the
result of a below-the-water influence. She still owed a significant amount of
money on the property, something that she hadn’t disclosed to her own agent
when the property was listed.
To deal with both above- and below-the-water issues, an agent must be
proactive. A proactive approach to dealing with decision making ensures that
clients will not only make good initial decisions but, more important, stick
with them over the long haul. To become proactive, many superstars use the
Five-Star Service Technique. This simple approach is shown in Figure 8-1.

FIGURE 8-1. TH E FIVE-STAR SERVICE TECHNIQUE

Information

Disclosures Services
Sold

Expectations Advice
MAKING THE BIG DECISION 181

Imagine this graphic as a page in your presentation. As you begin to

wrap up your seller meeting, you conclude by using a script similar to the
one given here in the Five Star Service Discussion box.
Notice that in just a few short minutes, we can lay the groundwork for
future discussions regarding such sensitive issues as price adjustments, condi-
tion improvements, motivation issues, family and friend disputes, financial
issues, and even seller’s remorse.
But we might still have a problem, because this particular seller hasn’t
decided to list with you. Instead, he’s on the fence, straddling the commit-
ment like a six-year-old on his first bike. At times he seems ready to say yes,
but then he backslides, putting his feet down and skidding to a dead stop.
What next? It may be time to do some decision-making calisthenics to help
him build his decision-making muscles.

The Five-Star Service Discussion

Mr. and Mrs. Seller, I am excited that you have considered hiring me to sell your home. I
pride myself on helping my clients during every step of the listing and sale process, which is
why I’ve developed my Five-Star Service Technique to ensure a smoother sale.
As you might notice, the first letter of each point spells out the word IDEAS, which is
good because I think the more ideas, the better! Here’s what I think these stand for:

I: Information. This means that it’s my job to keep you abreast of any new market information
that may affect your sale. If you decide to hire me, I would like to set up an in-person meeting
with you every 30 days until your home is sold to discuss new market information, along with
a weekly conference call. How does that sound? Likewise, if anything changes with your
situation, timing, or motivation, please give me a call anytime.

D: Disclosures. Part of my job is risk management. If you can think of anything that might
affect the sale of your home that I should know about before we get started—unrecorded
loans, judgments, or other title issues—please let me know now so that we can work together
on solving these issues.

E: Expectations. If you see any area where I can improve or enhance my services to meet
your expectations, please let me know. Likewise, I will keep you informed of any buyer and
agent showing comments. This way, you can stay in control of your home sale by making
any listing adjustments you see fit.

A: Advice. When you put your home on the market, you may receive advice from family,
friends, and neighbors on pricing and marketing strategies. My job is to advise you based on
the facts and accurate market data so that you can make informed decisions that are in your
best interests.

S: Services. My services include more than just marketing your home. I am here to answer
any questions and concerns you may have, and to provide you with referrals for support
services to help get you moved. If you need anything during the transaction to make your life
easier, please call me immediately and I will work hard to make it happen.

How does all that sound? Would you like to get started?
182 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

L E A R N I N G O P P O R T U N I T Y

Making the big decision. Clients can often flip-flop when making big
decisions for various reasons.
Above-the-water issues. These are outside factors that can suddenly
crop up to change a seller’s mind about moving forward. They might
include the influence of a client’s family, friends, or coworkers; an
agent’s lack of rapport with his client; or even an agent’s poor expla-
nation of the listing documents.
Below-the-water issues. These are hidden influences that only the sell-
ers are aware of; they might include undisclosed debts or financial
obligations, timing problems, spousal disagreements, or even just a
bad case of seller’s remorse.
Agents often help their clients move past these issues by using
IDEAS:
I: Information
D: Disclosures
E: Expectations
A: Advice
S: Services

Building a Client’s Decision-Making Muscle

Look around at the people in your life—not your friends and family (they’re
perfect), but the people at the periphery, the ones you see in the coffee shop,
or at the doctor’s office, or in line at FedEx. Don’t some of them seem a
little dazed and confused, like they’re just going through the motions in a
state of zombie-like semiconsciousness?
For instance, look at the cashier. How many more mochas will she serve
today? Does she really care? Now imagine her being asked to make a real
estate decision that will affect the rest of her life and shape her financial
future for decades to come. Would she be able to rise to the occasion, take
command of the moment, and make a quick judgment call? No way. Or at
least not without a triple shot of espresso.
I know, you’re not selling homes to kids behind a coffee counter, right?
Or are you? Today’s Generation X, young adults born between 1965 and
1978, are moving up to their second and even third home, while their
MAKING THE BIG DECISION 183

younger cohorts, the infamous Generation Y, born between 1979 and 1994,
are fast on their heals. Interestingly, a groundbreaking study by Century 21
Real Estate LLC and International Communication Research (ICR) found
that these two generations move through homeownership differently from
older age groups. For instance, both Generation X and Generation Y tend to
be motivated to purchase and keep homes as investments, rather than as a
family sanctuary; they are also willing to spend more than older generations
on housing (on average up to 25 percent of their household income), and
they hold on to their homes for shorter periods than their parents.
But contrary to popular assumptions, the same study also found that
both Generation X and Generation Y seem to suffer from a mild case of
decision-making paralysis when they attempt to purchase a new home. In
fact, these seemingly quick-talking, fast-moving, cell phone–loving ‘‘kids’’
took as much as a full month longer to decide on a home to buy than their
older counterparts, even while using the Internet as their primary source of
information.
So for many of our younger clients (and a few of our older ones as well),
making a decision is difficult, and making a big decision is extremely difficult.
Fortunately, the study of neuroeconomics sheds some light on this decision-
making quandary. This relatively new field explores such phenomena as how
the brain tends to release a pleasure-inducing chemical when it anticipates
big financial rewards and how emotions influence thinking. For instance,
experts point out that when it comes to making big decisions (including
housing-related ones), most people are incapable of being objective. Instead,
they tend to consider abstract, unrelated, or emotional pieces of information
by giving them too much weight, with the result that they often make poor
choices or no choice at all. For this reason, many of our clients may suffer
from a condition known as mental atrophy, or the wasting away of their
figurative decision-making muscle.
Consider the big real estate decisions you have pondered over during
your life. Have you ever allowed rumor, speculation, or past experience to
cloud your decision-making process?

I can’t live on a street with a dead end; it’s too spooky.

We can’t sell our house in July; that month has only four letters.
My mom sold her house 10 years ago for a bundle of money, so our
house should be worth over a million bucks, right?
184 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Crazy ideas, disconnected thoughts, unrelated data—they can all come

flowing through our brains like a broken sewer line when we attempt to focus
on a big real estate decision. Our sellers are the same way; they often fall
victim to overthinking the next step.
So how can we rebuild our clients’ decision-making muscle and help
them make good ‘‘big picture’’ real estate decisions? For many top producers,
the answer is to provide their clients with a decision touchstone. In ancient
times, a touchstone was a literal stone, such as jasper or basalt, that was
often used to test the quality of gold or silver. Today we can use a decision
touchstone to help our clients measure their real estate decisions against
their real estate goals.
Let’s take a look at how one agent applies this simple technique:

The Decision Touchstone Discussion

Agent: Listen, I know that making a decision to market your home is an
important step, so I want to ask you a really simple question. At the end
of the day, what would you ideally like to see happen with your home
sale?
What are your real estate goals?
Client: ⬍Answer⬎
Agent: I understand. If you don’t mind, as we review my presentation, I might
ask you if you think that the services I’m proposing would help you make
that happen. Would that be okay?
Client: Yes.

Amazingly many agents can meet with a couple, build trust and rapport,
provide a great presentation, and even list a home without ever finding out
why their clients are selling or what their real estate goals are. If they know
their clients’ ideal endgame, the result they are looking for from the sale of
their home, wise agents can use this as a decision touchstone throughout
their presentation.
For instance let’s check back in with this same agent as he wraps up a
page on e-mail marketing:

Agent: As you can see, my team uses the Internet not only as a way to stay in
contact with our existing customers, but also as a way to constantly cross-
MAKING THE BIG DECISION 185

sell every listing in our inventory. Can you see how this might help you
find a buyer faster and meet your goal of selling the home by August?

Notice how the agent is now encouraging the sellers to measure his pre-
sentation, piece by piece, against their real estate goals. By using minor agree-
ments, superstars give their clients the ability to make a series of smaller
decisions before ramping up to the big one. But, believe it or not, we can
make it even easier for our clients to make that last leap of faith by employing
the oldest closing technique in the book of sales—the old-fashioned assump-
tive close.

L E A R N I N G O P P O R T U N I T Y

Decision touchstone. To help clients rebuild their decision-making

muscle and help them make big picture decisions, many top produc-
ers use a decision touchstone. A decision touchstone is a reference
point against which all choices can be measured.

The Assumptive Close

Years ago, there was a television series called The Odd Couple, based on the
Neil Simon play. The television series starred Tony Randall as Felix Unger,
the uptight neatnik, and Jack Klugman as Oscar Madison, the obnoxious,
unkempt sportswriter. In one of the most famous lines in television history,
Tony Randall yells at his costar, ‘‘You should never assume. Because when
you assume, you make an ass out of U and ME!’’
That may be true, Felix, but not in real estate. Why? For many agents,
the most successful technique is the assumptive close, which means that after
receiving enough positive-feedback, minor agreements from a seller, the
agent moves straight into completing the listing paperwork. Yes, you read it
right. These gutsy agents don’t get down on one knee or stop and ask a big
closing question; instead, they just start filling out the listing paperwork. I
know what you’re thinking: Isn’t this presumptive and potentially offensive
to some clients?
Yes, it certainly can be, which is why superstars use this technique only
after careful consideration. Here are five key points to consider before mov-
ing into an assumptive close:
186 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

1. Do I have strong rapport and trust built with this client?

2. Have I built a decision touchstone and used it throughout my presenta-
tion?
3. Has my client provided positive feedback to my presentation?
4. Is it in my client’s best interests to move forward?
5. Am I confident that the client is ready to move forward?

If you answered yes to all of these questions, it may be time to consider

using the assumptive close, and believe me, it’s one of the easiest things you
will ever do in sales. How is that possible? Because the assumptive close
starts with asking simple assumptive closing questions, questions that gently
guide a client from being a passive presentation participant to being an ac-
tive, engaged decision maker. Let’s take a look at 10 real-world assumptive
closing questions that you can use today:

Ten Assumptive Closes

1. Sign placement. ‘‘Now, where would you like to place the sign, near the
driveway or closer to the road?’’
2. Lockbox placement. ‘‘I’ve brought along a lockbox. Where would you
prefer to have this, on the front door, or perhaps on the faucet, where
it is less visible?’’
3. Flyer design. ‘‘I can have my assistant create a flyer this afternoon;
which design style do you prefer?’’
4. Advertising. ‘‘I can submit advertising to the newspaper this afternoon.
What features of the home would you like me to focus on in the adver-
tising?’’
5. Website promotion. ‘‘I can have the listing posted online later today,
but I’ll need to take some photos. Do you have any preferences on
what angles you would like me to feature?’’
6. Paperwork. ‘‘To begin the paperwork, I like to start with the disclosure
statement. It outlines to a buyer everything he needs to know about
the home.’’
7. Flyer box. ‘‘I like to use a flyer box on my listings, but I’ll need your
help to keep the box full. Would you mind refilling the box every week?
I’ll have my assistant stop by later and drop off a hundred to get us
started.’’
MAKING THE BIG DECISION 187

8. Talking House. ‘‘I like to use a Talking House on my listings. A Talking

House broadcasts a constant 90-second radio message about your
home to anyone driving by. I just need a place to plug the unit in. Do
you have a good spot near a front window?’’
9. Top producer e-mail. ‘‘When I list a home, the first thing I like to do is
to e-mail all of my top producer colleagues; I have a list of every agent
who closed over $3 million in sales last year. As soon as we complete
the paperwork today, I can send that out immediately. How does that
sound?’’
10. Showing instructions. ‘‘Are there any times of the day that you would
prefer the home not to be shown or any special showing instructions
that I should note on the paperwork?’’

You might notice, in reading these dialogues, that by answering just one
of these questions the seller is indicating that she plans to move forward. In
order to stop this forward motion, a seller has to put on the brakes and say,
‘‘Hey, wait! I haven’t even decided to list my house yet!’’ To be honest, some
unethical agents use a seller’s reluctance to take such a strong stand as a way
to rack up bigger listing numbers. Their attitude is that the more cavalier
they are, the bigger their odds of success, but obviously clients who feel that
they were unfairly manipulated will find a way to back out of the listing, so
in the end the agent will have gained nothing. Strong ethical agents, on the
other hand, use the assumptive close as a way to help clients who have al-
ready shown a strong indication that they would like to move forward. These
agents take the burden off of clients who may have a hard time confronting
a big decision by giving them an easy out.
But what if the assumptive close just doesn’t feel right? Trust your in-
stincts and consider using the if–then close.

L E A R N I N G O P P O R T U N I T Y

The assumptive close. The assumptive close simply means that after
receiving enough positive feedback from a seller, many agents choose
to move straight into completing the listing paperwork without stop-
ping to ask the seller a big closing question.
188 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

The If–Then Close

My son Michael is a master negotiator, capable, I’m sure, of negotiating with
world leaders, heads of state, and rogue nations if necessary to gain some-
thing he wants—like an Xbox, Playstation, or Nintendo video game. As a
student in the art of closing, he is shrewd, crafty, and diligent in his quests.
He is so good, in fact, that occasionally I get the feeling that a no is what he
really wants, perhaps as part of some higher-order negotiating gambit, so I
fake him out with a yes, just to show him who’s boss.
In studying Michael’s technique over the years, I have noticed that he
has developed a sophisticated closing strategy that I call the if–then close.
The magic in his technique is that it is literally endless. A no in Michael’s
world is never final; it is simply a minor delay. Interestingly, I have noticed
that not only does Michael use this technique, but all great negotiators do as
well. In other arenas it’s referred to by different names, but I’ll always refer
to it as Michael’s if–then close, and here’s how it works:

Michael: Hey, Dad, can I get Mario Party 19 for my Game Cube?
Dad: Nope.
Michael: I understand. ⬍Yes, he actually says I understand!⬎ Well, if I
clean my room, then would you get it for me?
Dad: Nope.
Michael: Okay. . . . How about if I clean my room and mow the lawn; then
would you buy it?

You can see where this is going, right? No matter how many times I say
no, it doesn’t matter, because he doesn’t give up. He just keeps coming back
with a different approach. The key for Michael is to know when to move
ahead and when to back off. So he watches and listens, all the time attempt-
ing to diagnose when he can push forward with another proposal and when
he is risking life and limb. Like a supercomputer, he endlessly crunches possi-
ble solutions, often while eating Cap’n Crunch cereal and watching Tom and
Jerry, until finally, with a slurp and a smile, he arrives at a new ingenious
approach.
In the world of real estate the if–then close can be a terrific tool for
clients who need a little extra help in making a decision. Obviously we can’t
go through endless scenarios with our clients; besides, they couldn’t possibly
MAKING THE BIG DECISION 189

have that much Cap’n Crunch on hand. Instead, we need to choose our
proposals carefully.
Let’s take a look at five real-world if–then closes:

Five If–Then Closes

1. ‘‘Let me ask you this: If we could still get your property in the upcom-
ing real estate guide, then how would feel about moving forward this
evening?’’
2. ‘‘Perhaps if we went ahead and filled out the paperwork today, I could
then begin putting together all of the marketing pieces while you’re
preparing the home to be shown. How does that sound?’’
3. ‘‘I know you’re a little hesitant to move forward because the numbers
look a little tight. Perhaps if we can go ahead and list the property but
remain firm on the price, then you can still hit your goals. How does
that sound?’’
4. ‘‘Listen, if I agree to list the house at the price you have in mind, which
based on the market numbers is a stretch, then would you agree to a
price adjustment in two weeks if we have had no offers?’’
5. ‘‘I understand your reluctance to sign a long-term listing. Let me ask
you this: If I agreed to provide you with an easy out, meaning a no-
questions-asked exit strategy, then how would you feel about moving
forward?’’

By providing clients with alternatives, choices, and easy ways to say yes,
strong agents are able to help clients move past their indecision and toward
fulfilling their real estate goals. During this process, it’s important to recog-
nize the importance of ego and the danger of putting a client in a position of
losing face, something that humans, like all animals, will almost never do
willingly.

L E A R N I N G O P P O R T U N I T Y

The if–then close. The if–then close is a closing technique used by

skilled negotiators who are attempting to provide their clients with
possible alternatives, choices, and options. By using this technique,
strong agents are able to help clients move past indecision and
toward fulfilling their real estate goals.
190 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

‘‘Facing’’ Your Clients

Walking into the seller’s home, one of my students, Carl, a broker from
Idaho, found himself him in a dilemma. The home featured a giant illustra-
tion of the solar system, not a small one but a huge one, almost life-sized,
extending from the kitchen to the living room. With the sellers watching
proudly, Carl traced his way from Earth to Mars and back again. ‘‘Wow,
interesting wallpaper.’’
‘‘Do you like it?’’
Oops. Carl froze in midflight. ‘‘Houston, I think we have a problem.’’ If
Carl said he didn’t like it, his clients would be embarrassed, and having a
red-faced client is never a good way to start a listing presentation. On the
other hand, if he said he did like it, the clients might not be willing to do
anything about it when preparing the home to sell.
Brilliantly, Carl, in a clutch moment of inspiration, blurted out, ‘‘It’s
unbelievable!’’
Carl, like many of us working in the real estate field, was faced with a
common quandary: How do we talk to clients about sensitive issues or help
them make big decisions when we may end up causing them to lose face?
Sarah Rosenburg, a political science expert and member of the Univer-
sity of Colorado Conflict Research Consortium, has this to say about the
term face:

Face is a multi-faceted term, and its meaning is inextricably linked

with culture and other terms such as honor and its opposite, humilia-
tion. Saving face or giving face has different levels of importance,
depending on the culture or society with which one is dealing. Per-
haps the most familiar term to many is ‘‘saving face,’’ which we un-
derstand simply to mean not being disrespectful to others in public,
or taking preventive actions so that we will not appear to lose face
in the eyes of others. Some will immediately associate the term
‘‘face’’ with Sino-Japanese cultures, but it would be a mistake to think
that those are the only cases where face issues are important.

In helping our clients make big real estate decisions, losing face often
becomes a central issue. Let’s take a look at four ways in which the risk of
the client losing face may affect your ability to take a salable listing:
MAKING THE BIG DECISION 191

1. The seller’s opinion of price differs from your information.

2. The seller has relatives whose opinion has no basis in reality.
3. The condition of the seller’s home is less than acceptable.
4. The seller has unreasonable marketing expectations.

In the end, no matter how strong your logic, services, or sales record
may be, clients won’t list their home with you unless you continue to foster
feelings of rapport and trust. Once these crucial connections are lost, the
listing is lost. To deal with these issues and still be able to take the listing,
strong presenters use three strategies to avoid the flight-or-fight response that
losing face can trigger.

Strategy 1: Don’t Take a Personal Position

Sellers love to pigeonhole agents by asking questions like, ‘‘What do you
think my home will sell for?’’ If you answer this question, you can easily
become the price, meaning, in essence, that the seller now looks at you as a
walking representation of your opinion. That’s great if she agrees with you,
but it can be a disaster if she doesn’t. Presentation experts avoid this trap by
redirecting this type of question to the ultimate source of pricing answers—
the market. Take a look at the way some superstars deflect this question:

Client: What do you think my home will sell for?

Agent: You know, my opinion doesn’t really matter; what matters is what’s
happening in the market. Let me show you the comparables I’ve found.
Or
I think the home should sell for $5 million, but unfortunately I’m not
buying it. Let’s take a look at the market numbers.

This same tactic will work for many types of similar issues. For instance,
let’s take a look at a seller with unrealistic marketing expectations:

Client: I’d like to see my home advertised in the Wall Street Journal every
weekend. Don’t you think you can find more buyers that way?
Agent: Well, I can certainly understand what you’re saying, and honestly I’ve
had similar requests from other clients. But in conducting our after-sale
survey, something we do with every client on the day of closing, we’ve
found that when buyers are shopping for a home locally their number one
source of information was the local real estate guide, and second to that
was the Internet.
192 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Or
You know, my motivation is to get your home sold for top dollar in the
shortest amount of time possible. Based on the 2005 National Association
of Realtors Profile of Home Buyers and Sellers, a survey sent to 90,000
consumers across the country, the number one answer for how buyers
learned about their home was from a real estate agent, the next was
through the Internet, and the third was through a yard sign. I’ve brought
along a copy—take a look. ⬍Show graph.⬎ I would consider all of these
to be local sources of information.

Strategy 2: Don’t Question the Reasoning

Clients often come up with all kinds of bizarre reasoning to justify their
positions. Unfortunately, the second you question a seller’s crazy ideas, you
may fall victim to becoming viewed as an adversary instead of an ally. To
avoid this fate, many agents have learned to stutter step around these sensi-
tive issues by not questioning a seller’s absurd ideas; instead, they focus on
unbiased market data. For instance, let’s take a look at how one agent deals
with a client whose nutty relative has suddenly become an overnight real
estate expert:

Client: My uncle Bob says the house should be worth $20,000 more than our
neighbors’ because it has a porch swing. What do you think?
Agent: You know, ultimately the market takes every aspect of a home into
consideration. Let’s do this: Let’s take a really hard look at all the ameni-
ties that each comparable home is offering and see what homes are actu-
ally selling for, and then you can decide for yourself what you think.
Or
I understand. Actually, in addition to the market data and comparable
sales that we have already reviewed, I’ve brought along the National Asso-
ciation of Realtors Cost vs. Value report, which highlights home amenities
and their relative value to buyers. Let’s take a look.

We can also use this strategy when dealing with clients who can’t under-
stand that their home isn’t in show-ready condition without offending them.
Check out how one agent makes this happen:

Client: Hey, we just like to live comfortably. Can’t buyers understand that?
Agent: Well, I can certainly understand it, but buyers may not. What happens
is that you’re competing with other homes for a buyer’s attention, and if
MAKING THE BIG DECISION 193

you look at the homes that have sold over the last six months, you’ll see
that most of them have been in top condition, and the two that weren’t
sold for a discounted price. How do you feel about a discounted price?
Or
Really, I can understand it, but one thing to consider is that condition and
price are always linked. Just like when you buy a car or a piece of furni-
ture, the better the condition, the higher the price. So really it comes down
to your decision: Do you want top dollar, or are you willing to accept a
lower price?

Strategy 3: Don’t Allow Sellers to Argue in Front of You

If you can think back far enough to remember when you were a kid, you may
be able to recall your parents fighting. Afterward you may have noticed that
one party or the other was generally the winner. But did this dynamic change
when an audience was present? In many cases, when we have an audience,
whether it is during a friendly debate or a knock-down, drag-out brawl, our
potential for losing face raises the stakes dramatically. Where once we might
have settled down and even accepted a common-sense resolution to an argu-
ment, now, with others watching, we might pound the table with the self-
righteous indignation of the innocently accused, even if we are dead wrong
and guilty as sin.
Our real estate clients are the same way. When one party wants to sell
more than the other does, as is often the case, this can lead to serious dis-
agreements that can spill over into a listing presentation. To solve this chal-
lenge, wise agents never allow clients to argue in front of them. Instead, they
excuse themselves from the conversation. Take a look at how one top pro-
ducer handles this tough situation delicately:

Client: ⬍Arguing⬎
Agent: You know, if you don’t mind, I’m going to return a couple of phone
calls while you two discuss this issue.
Or
Listen, either way you decide to go, I’ll support your decision. Why don’t
I start taking some photos of the outside and let you two discuss this in
private?

So what happened to Carl? Wisely, he waited until after he had the listing
signed to explain to his clients that to receive top dollar for the home, they
194 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

might wish to consider removing their precious wall art. Reluctantly, they
did, but not until he had tipped the scales in his favor.

L E A R N I N G O P P O R T U N I T Y

Face. In helping our clients to make big real estate decisions, losing
face often becomes a central issue. To avoid having their clients fall
into this awkward dilemma, many agents use three strategies:
1. Don’t take a personal position. Wisely, whenever possible, many
agents avoid taking a position on topics that can later lead to an
adversarial discussion.
2. Don’t question the reasoning. Instead of attacking a client’s
thought process, top producers default to a discussion centered
on facts.
3. Don’t allow sellers to argue in front of you. Excusing yourself from
an argument between sellers allows them to hash out their dis-
agreements in private.

Tipping the Scales

If you were a Viking living in 920 A.D. (and who wouldn’t want to be a
Viking—with those horns on their helmets, big swords, and cool boats?), it’s
not likely you would have carried paper money with you as you pillaged
and conquered your neighbors. Instead, the Viking economy was a bullion
economy; traders carried small scales that could measure the weight of their
customers’ gold and silver very accurately. For the Vikings, then, the more
metals they carried in their purse, the better their chances of getting what
they wanted. Likewise, today we can tip the scales in our favor during a real
estate presentation by always carrying a full purse of benefits that outweigh
our client’s reluctance or objections to moving forward. The more reasons
we can pile on the decision-making scale, the more likely it is that it will tip
in our favor, and we will be rewarded with our prize: the seller’s listing.
Now you might think, ‘‘Didn’t I already do that when I reviewed my
listing presentation?’’ Yes, you did show the client your list of services, but
at that moment it wasn’t being measured against his reluctance or objections
to moving forward; at that point, he was probably just taking it all in. Like a
MAKING THE BIG DECISION 195

jury watching a trial, your client heard all of the testimony, saw all of the
evidence, and listened to the eyewitnesses. But he still needs to be convinced.
In real estate, as in all sales, we often engage in this type of moment market-
ing, where our entire presentation comes down to a handful of seconds dur-
ing which the client is weighing his options. What clients need is a closing
argument. Trials are won and lost on closing arguments, and the same can
be true of real estate listings. The more powerful the argument, the more
likely an agent will be to take a listing.
Take a look at how one agent uses his closing argument to stack the
presentation deck in his favor:

The Closing Argument Discussion

Client: You know, I think we need to sleep on this before we make a decision.
Agent: I understand, and I certainly want you to be comfortable moving for-
ward. Now just to review the benefits I can offer you, I’ve prepared a
bulleted list of my services. ⬍Review list.⬎ Let me ask you, is there any-
thing that’s not on the list that you would like me to add that would make
you feel more comfortable about moving ahead this evening?

Using this kind of closing argument obviously requires that you take the
time to build an overview of your real estate services, one that doesn’t at-
tempt to rehash your entire presentation, but rather covers the high points.
By doing so, wise agents load up their client’s decision-making scale with
their precious cargo of services.
Take a look at the sample overview of services in Figure 8-2.
There is an old adage concerning writing, speaking, and presenting infor-
mation: First you tell your audience what you’re going to tell them, then you
tell them, and then you tell them what you told them. The same is true of a
real estate presentation. By using a simple overview, you can tell your clients
what you told them by reminding them that if they hire you, they will be
getting not only your winning personality and expensive wardrobe, but a raft
of incredibly valuable services to boot.
So now that we have completely sold the client on our services and she
is ready to sign the listing agreement, have we forgotten anything? Yes, we
have. We have forgotten to plant some early seeds, a critical component in
repositioning a listing that fails to sell right out of the gate. Let’s take a look
at this critical step in Chapter 9, ‘‘A Superstar’s Guide to Salable Listings.’’
196 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

FIGURE 8-2.

L E A R N I N G O P P O R T U N I T Y

The closing argument. At the end of a presentation, it is often wise

for agents to do a quick review of what they covered during the meet-
ing. Many accomplish this by creating a visual overview of their ser-
vices.
 C H A P T E R 9

A Superstar’s Guide to Salable

Listings
Just like our clients, we often create arbitrary boundaries, guidelines,
and standards that probably have nothing to do with our true needs, but
instead keep us anchored in a warm bubble of what we consider to be safe.
Our decision making, then, is often skewed by this compulsion to stay within
our own comfort zone. For instance, we often don’t want to offend a seller
by telling her that it’s possible that she will have to adjust her price or the
condition of her home in order to achieve her desired real estate goals. Yet
superstars must move beyond these self-imposed barriers to move up to creat-
ing real estate presentations that make millions.
For instance, somewhere in the country, or maybe in your own city,
town, or even office, there is a top listing agent, an agent who really rips
through new listings, prospects hard core every day, uses her sphere of influ-
ence to the full, and always asks for new business. But as successful as this
agent seems to be, she may also face a huge problem: the cost of supporting
all those listings! Why? Taking a listing isn’t free; it costs real money. In fact,
after factoring in the cost of signs, advertising, labor, flyers, Internet posting
fees, and lockboxes, many industry veterans claim that they spend $500 to
$1,000 or more for each new home they list.
Because of this staggering investment, an agent who is taking overpriced
197
198 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

listings, listings that are in poor condition, or listings with unfavorable terms
may be sitting on a huge pile of costs. Like a clothing store that is trying to
sell winter clothes in the summer, these agents can easily suffer from stale,
unappealing inventory. And as we all know, taking a listing means that you
have to market the listing, and when you market a listing that has little or no
chance of selling, you have created a monster. This monster must be fed, and
what is it being fed? Your time and money.
The good news is that if you understand the age-old dilemma that has
faced buyers and sellers since the dawn of private property rights, you can
turn this dilemma on its head by taking back control of your inventory. Be-
lieve it or not, this conundrum underlies and controls every seller’s decision
to sell and every buyer’s need to complete a purchase.
What is this great, often hidden motivator that is lurking in the dark
corners of your clients’ gray matter? For sellers, it is the need either to sell
within a set time frame or instead to hold out for the best possible price, and,
as you might guess, for buyers, it’s the need either to buy within a set time
frame or to purchase a home for the lowest possible price.
Looking at Figure 9-1, you can quickly see that a seller who would like
to sell for top dollar should be prepared to potentially wait longer for a buyer
who is willing to pay a premium price. Like someone who is trying to sell ice
during December, a seller might have to give the stuff away just to get rid of
it, but if he waits long enough, say until mid-August, when temperatures rise

FIGURE 9-1. THE PRICE VS. TIME SOLUTION

Sellers Higher Price Lower Price

Longer Time Shorter Time

Buyers Higher Price Lower Price

Shorter Time Longer Time

Motivation
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 199

to crest over 100 degrees, that same ice can suddenly have real value. On the
flip side, a seller who needs to sell quickly and doesn’t have time to wait
should expect to have to discount her price somewhat because of the limited
time she has to expose her home to the market.
What’s the difference? Timing.
By having a price vs. time discussion with your clients, you can help
frame the seller’s decision making in real-world terms that he can instantly
relate to. How? Let’s take a quick look at how one superstar incorporates
these concepts into her listing presentation:

Price vs. Time Discussion: Round One

Agent: One item to consider when pricing your home is timing. As they say,
timing is everything, and that is certainly true in real estate.
In general, the higher the price of your home, the longer it will take
to sell. The more competitive the price, the faster your home will sell.
So what do you feel is your highest priority—selling quickly or selling
for a higher price?

You might guess that many of your clients will smile coyly when you
pose this question and answer, ‘‘I want both!’’ The funny thing is that they
aren’t kidding.
This sticky situation often reminds me of one of my first jobs after gradu-
ating from high school, which was working the graveyard shift at a local
lumber mill. Like clockwork every night, the foreman would come by to
monitor my production. We called him Perry, which could have been his last
name or his first name, because he never clarified it. Over the roar of the
machinery, Perry would cup his hands together and yell, ‘‘You need to put
out more wood!’’ Finally, after an especially tough day, I looked him in the
eye and yelled back, ‘‘Do you want quantity or quality?’’ Throwing his yellow
hard hat down on the concrete floor and then kicking it for emphasis, he
snarled back, ‘‘I want both!’’
Like Perry, most of our clients want their cake with the icing generously
slathered on top. Not only that, but they want it with a glass of milk, and
yeah, maybe a little bit of ice cream, too. They want it all.
But as much as they hate to admit it, the truth is that sellers are almost
always motivated by either a need to sell quickly or a need to get top dollar.
Sure, they aren’t going to make it easy for you, just as Perry wasn’t about to
200 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

make it easy for me. Instead, they’ll attempt to put the responsibility back on
your shoulders. If this happens, take a look at how one smooth operator
hands their gift back to them by using a simple follow-up question.

Price vs. Time Discussion: Round Two

Seller: I want both.
Agent: I understand, and believe me, it’s my goal to get you both, but let me
ask you this: If we should get to the end of the listing period and the home
hasn’t yet sold at this price, do you think you would be more likely to give
it a little more time or adjust the price?

This is not, as you might think, a gotcha question; we’re not trying to
trap the seller into committing himself to an immediate price adjustment or
a change in the listing terms. Instead, we are framing the ability to sell the
home through a timing question. We want the seller to understand that re-
ceiving top dollar may require a longer period of time, and if he wants to sell
quickly, then a price adjustment may be the fastest way to accomplish this
goal. It boils down to motivation. Top producers have learned that it is imper-
ative to help sellers thoroughly understand the difference between these two
key motivations.
Why is this so critical? Take a look at this same listing a few months
down the line. The seller is pacing the floor; the home hasn’t sold, and he is
on pins and needles waiting for an offer to come in. Let’s take a look at how
an agent might follow up her earlier price vs. time discussion:

Price vs. Time Follow-Up

Agent: You know, when I took the listing, I asked you a very important ques-
tion: I asked you what was more important to you, selling quickly or
selling for a higher price.
At this point, we can continue to try to find a buyer at the listing
price we started at, which may take more time, or we could make a price
adjustment so that you can secure a buyer faster. Which would you prefer?

Notice that this approach shifts the responsibility of securing a buyer

back to where it should be—on the seller’s shoulders. The seller decides how
long he is willing to hold out for top dollar and when he is ready to make a
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 201

price adjustment. Depending on his motivation, he can choose to wait for

the market to catch up to his price, or he can choose to take control of his
home sale by adjusting the price.
Of course, this isn’t a one-way decision. A listing contract is a bilateral
agreement, meaning that you have some choices in this matter as well, the
biggest of which is, do you really want to take the listing? So how can you
and the seller really know if you have a listing that has a reasonable shot at
actually selling?
Many agents have found that one of the easiest ways is to use a home-
scoring system.

L E A R N I N G O P P O R T U N I T Y

Price vs. time. Sellers are almost always motivated by either a need
to sell quickly or a need to get top dollar. Top producers have learned
that it is imperative to help sellers thoroughly understand the differ-
ence between these two key motivations.

The Home-Scoring System

Okay, so you took the listing. It was overpriced, and you knew it, but you
didn’t argue too much because you really needed a listing, and besides, the
seller was really pushy. Two days later, when you’re sitting at the morning
breakfast meeting, while each of your colleagues dives headfirst into an over-
sized banana nut muffin, your mind races to find a way to explain your pric-
ing mistake. Heart pounding, sweat beading, stomach fluttering, you watch
nervously as the team leader finally makes her way to your seat, and then
asks with a smile, ‘‘Any new listings this week?’’
‘‘Yeah,’’ you begin nonchalantly. ‘‘Uh . . . this one is owner priced. . . .’’
Smooth.
How many times have you heard an agent begin a listing pitch to other
Realtors with this opening? Countless, right? As an agent sitting on the other
side of the conference room table, what do you do next? Do you sit rapt with
anticipation, pen at the ready, or do you instantly move on to thinking about
how your pet hamster didn’t seem quite so spunky this morning?
Saying that a listing is owner priced is like waving a red flag that says,
202 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

‘‘I’m a weak agent,’’ or, ‘‘This listing is a waste of your time.’’ But that’s not
the worst of it; what happens next is far more painful—some would say bor-
dering on torturous. What could that be? The seller blames you for not selling
her overpriced home. Even more outrageously, she demands that you find a
way to produce a buyer or she will fire you and hire another agent (often at
a lower price).
You might think that, as highly paid real estate professionals, we would
scoff at this treatment and calmly explain to the seller that, in fact, she was
responsible for overpricing the property (we just filled out the paperwork).
But by and large we don’t. Instead we meekly accept responsibility for the
failure. You don’t believe me? Take a look at how most of these conversations
go down, and see if you have ever had a similar experience:

Seller: Why hasn’t my home sold yet?

Agent: Umm, well, we have been getting a lot of calls. . . . It just takes that
one right buyer.
⬍And the crowd screams, ‘‘Here we go, defense, here we go!’’⬎
Seller: Yeah, but don’t we need showings to get offers? Where are you adver-
tising?
Agent: Well, we do have your home in the newspaper this week. What if I do
a bigger, color ad in the upcoming real estate guide, or how about an
open house this weekend? How does that sound?

Sad isn’t it? This poor sap of an agent is now stuck spending more money
on a dog of a listing that will probably never sell. Why? To keep the seller at
bay long enough so that maybe, just maybe, a Hail Mary buyer will arrive—
you know, a buyer who falls off the pumpkin wagon and is willing to buy any
home, no matter how overpriced it is or what condition it’s in. And it gets
worse. Short of winning the lottery, this agent is going to have to face this
same seller not once but over and over again to explain why he just can’t
seem to pull his head out of his Aston Martin long enough to sell her home.
Guess what? Most agents just can’t deal with this pressure. So within weeks
they begin to duck the seller’s calls. They become invisible, shielding them-
selves behind e-mail reports and handwritten notes while pretending that the
problem will just go away. It doesn’t.
So what’s the solution? For many agents, the answer is a home-scoring
system. Many top producers around the country use a home-scoring system
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 203

to reverse the communication dilemma we just encountered. Here’s how it

works: When you take the listing for the first time, you announce to the seller
that as part of your services you provide each of your listings with a home
score. This score will determine how salable the home is. For instance, if the
home scores low, it may never sell; if it scores in the midrange, it has an
average chance of selling; and if it scores high, it has a terrific chance of
selling. Take a look at the sample in Figure 9-2.
During the listing presentation, a home-scoring system allows a strong
agent to enter into a discussion of the key elements necessary to put the
seller’s home into a realistic position for selling. It’s a pragmatic, realistic
approach to getting homes sold quickly and for top dollar. No more pie in
the sky, hoping for the best, or wishing upon a star. Instead, a home score is
a score; it’s an unemotional, clinical evaluation. Can a seller disagree with
your assessment of an item—for instance, the overall condition? Absolutely,
but that’s the beauty of the system. It front-loads these discussions at the
beginning of your relationship instead of waiting for the middle or the end.

FIGURE 9-2.
204 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

This particular home-scoring system has 17 points, each covering an im-

portant aspect of creating a product that has a reasonable shot at selling. By
completing the worksheet and tallying up the overall score, any agent can
rate a home’s ability to sell. It’s easy. For instance, in using a similar form
myself, I have found that any home that is rated A, meaning in this case a
home that has received 35 points or more, has sold. Because of this, I can
truthfully say to a seller, ‘‘If you want to sell, I can tell you that 100 percent
of the homes I have represented that scored a 35 or better have sold.’’ That’s
a powerful statement to make to a seller.
Now you might wonder how a form can predict a home’s ability to sell.
It can’t, but common sense can. Take a minute to study the form. For exam-
ple, take a look at the first topic, a home protection plan. A home protection
plan, otherwise known as a home warranty, protects a buyer against any
unexpected mechanical system breakdowns after closing. Buyers love these
plans because they take the mystery out of buying an unfamiliar home. Be-
cause of this, on this particular agent’s home-scoring system, if the seller
offers a home warranty as an inclusion in the sale, the home gets 3 points.
Naturally, some sellers may ask a question as you’re reviewing the form, like,
‘‘Hey wait, what if I don’t want to pay for a home warranty or a preappraisal.
You’re telling me that my home is less likely to sell?’’
The short answer is yes. The long answer, the one you say slowly and
with empathy, is that the form is simply a way to compare competitiveness.
Sure, by itself, offering a home warranty or a preappraisal may or may not
cause a home to sell, but the cumulative effect of these 17 selling points can
certainly have an effect on a home’s overall competitiveness.
From an agent’s perspective, using a home-scoring system allows you to
open up discussions on items that may have been missed or overlooked dur-
ing the listing presentation. But that’s not even the best part. The best part
about using a home score is your ability to take back control over your seller
interactions after you have taken the listing.
Check out how your follow-up calls might change when you use a home-
scoring system as a tool:

Home-Scoring System: First Follow-Up Call

Agent: Good morning, John. I’m just doing my regular follow-up on your
listing. Let me give you an update on what we’ve done so far. . . . Now, I
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 205

have to be honest; I’m a little concerned about the amount of activity we

have had. By this time we should have had more showings.
Do you remember the home-scoring sheet we did together?
Client: Yes.
Agent: Great. I’ve got your home’s profile here in front of me. I noticed that
when we took the listing, the deck still needed some repair, so we gave the
home only a good instead of an excellent on the condition. At this point,
would you prefer to work on the deck, or would you like to make a price
adjustment?
Client: I’ll work on the deck.

Remember that the seller controls both the price of the home and the
product; you as the agent control only the promotion. By giving the seller the
ability to make changes to his listing, you empower him to take control of
his home sale. What’s more, you force him to come to grips with the fact
that he can either take action and move forward with his home sale or not,
but it’s his choice, not yours.
Check out how this agent continues the dialogue a couple of weeks later:

Home-Scoring System: Second Follow-Up Call

Agent: Good morning, John. I’m just doing my regular follow-up on your
listing. Let me give you an update on what we’ve done so far. . . . As you
know, we still haven’t received an offer on the home, and frankly, I’m
concerned about the amount of activity we’re having. Do you have a
minute?
Client: Yes.
Agent: Great. Listen, first, I want to thank you for fixing the deck; I think that
did help us generate some more interest, but I want your home sold, and
I know you do as well. Looking back on the home-scoring sheet, I noticed
that we offered only conventional financing as an option. What do you
think now? Should we go ahead and open it up to VA and FHA buyers, or
would you rather adjust the price?

So who will be ducking whose call now? Feels good, doesn’t it?
By taking control of the communication dilemma and turning the tables
on the person who is ultimately responsible for a home’s selling (the seller),
you can actually help sellers to realize that selling a home is less about who
206 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

can do the most open houses or pile on the most signage, and more about
which seller is willing to offer the best product to the marketplace at the best
possible price. The seller who can turn up the heat and make her home—yeah,
I’ll say it—the sexiest home on the block is often the first one to have buyers
knocking down the doors to get inside.
To turn on the charm even more, let’s take a look at some other creative
techniques to make a seller’s home stand out.

L E A R N I N G O P P O R T U N I T Y

Home-scoring system. Many top producers around the country use a

home-scoring system to reverse the communication dilemma that
many agents encounter by helping a seller to understand how to make
his home more competitive in the marketplace.

The Sexy House

Your sellers want top dollar for their home (hey, who doesn’t, right?). So
how can you help your clients secure the highest possible price for their
home in the shortest amount of time? Use the strategy that professional
marketing executives have known for years: Make the product sexy. How in
the world do you make a house sexy? you might ask. That’s a great question.
Let’s take a look at several ways to make your listing the most attractive
house in the neighborhood.

Dress Up the House

The home’s curb appeal will create an instant and irreversible first impres-
sion on every buyer. According to Ellen Boettcher, president of Staging by
Design, real estate professionals should assess several factors when listing a
home for sale, the first of which is: ‘‘How bad is the place?’’ ‘‘Maybe the
general appearance of the property is dated, worn, or unattractive,’’ says
Boettcher. Use this checklist to make sure your listing is dressed for success:

• Paint the trim and front door.

• Plant flowers and pull weeds.
• Clean the downspouts and gutters.
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 207

The Psychology of Color

The first impression on prospective buyers should be a lasting and positive one. Researcher
Debbie Zimmer of the paint manufacturer Rohm & Haas says that there is a psychology of
color that sellers can use to help make a good impression on buyers. According to Zimmer,
these colors have a special impact on people:

Red. The color red can increase blood pressure, heartbeat, and energy in most people. It
instills feelings of intimacy and passion, and it increases appetite. Red is often a good choice
for a formal dining room.

Orange. This color works well in living rooms and family rooms because it can warm up a
room in a friendly way. Sellers often experiment with various tints and shades to find the best
match for their tastes.

Yellow. Yellow is warm and welcoming, but it is more of an attention getter than either red or
orange. It is a good color for poorly lit foyers or dark hallways.

Blue. This color makes most people feel tranquil and at ease, which is why it is ideal for use
in bedrooms. Blue has also been shown to be an appetite suppressant, so it is not a good
option for a dining room.

Green. This is also a relaxing color that many find more versatile than blue. Light greens are
ideal for bedrooms and living rooms; midtones are good for kitchens and dining rooms. It is
often used in hospitals, workspaces, and schools.

Violet. Many adults dislike purples but are fond of the rose family, which can work in many
rooms. Young children, on the other hand, seem to like violet, so this color can be used
successfully in children’s bedrooms and play areas.

• Clean the screens and windows.

• Pressure wash the sidewalk and driveway.
• Mow the grass and apply new bark mulch.
• Replace outside lightbulbs.
• Wash the house’s exterior, or paint it if needed.
• Clean or replace house numbers.
• Remove all cobwebs and spray for pests.

Create a Warm Environment

Every home should offer the potential buyer a warm, friendly experience,
especially during the first showing. What greets the buyer on the other side
of the seller’s front door? Things to consider:

• Consider the smell of the home—candles and vanilla can help.

• Replace lightbulbs; clean drapes, blinds, and windows.
• Professionally clean carpets; replace if needed.
208 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

First Impression Home Study Findings

A recent study conducted by the Canadian firm Royal LePage showed that

• 53 percent of buyers said that strong odors, such as pet or cigarette smells, had a bigger
impact on their impression of a home than the overall tidiness and cleanliness.

• 41 percent of men stated that they would pay more for a home with updated décor, while
only 30 percent of women said that they would pay a premium.

• 79 percent of buyers said that they would be willing to pay more for a home with a
renovated kitchen.

• Paint or wash walls.

• Clean doors, cabinets, and closets.
• Dust the home; remove cobwebs.
• Clean appliances.
• Paint or clean baseboards.
• Recaulk bathtubs and showers.
• Replace cracked or damaged outlet covers.

Remove Barriers from the Relationship

Buyers need to build an emotional bond with a home before they can make
a decision to purchase the home. Help them by removing potential barriers:

• Pack and store seasonal clothing.

• Remove unused furniture.
• Remove personal photo clutter.
• Secure pets before each showing.
• Remove and replace fixtures that are not included with the sale.
• Leave the home during showings.

Tell a Story and Be Interesting

Buyers want a home that stands out from the competition. To help, many
agents recommend to clients during the listing presentation that they employ
the services of a professional home stager or, if they have been trained to
provide the services themselves, offer their own staging recommendations.
Jeanne Gardner, owner of First Impressions by Gardner, agrees: ‘‘Your listing
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 209

presentation should incorporate a comprehensive marketing strategy—one

that includes a consultation with a home stager.’’
Here are a few top producer suggestions for staging your next listing:

• Set the kitchen table.

• Turn down the master bed and place a book on the nightstand.
• Display an open game in the kids’ room.
• Turn on the fireplace in the living room.
• Turn on soft music.
• Display a family DVD near the entertainment center.

Use Accessories
The smallest items can often turn the buyer on to your listing. For instance,
many agents use a home book as a tool to organize a mix of critical informa-
tion that the buyer may need in order to move forward with a purchase.
Examples that superstars include are:

• Copies of the public MLS information

• Disclosure statements (if required)
• Flyers of the home
• Plot maps and tax information
• Financing and payment sheets
• Average utility costs
• A local service provider list
• Warranty information
• A letter from the seller entitled, ‘‘Why We Love This Home’’
• Photos of the home at different seasons
• An offer form

Open Up the Dark Areas

Buyers want to know everything about a home before they decide to move
forward. In most cases, this means that they want to view every area of the
home. By making this easier, you may be able to position your listing as the
most appealing match to the buyer’s needs. For example:
210 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

• Unlock and open all areas of the home.

• Clean the garage—sweep and pressure wash.
• Unlock outside buildings, including shops.
• Clean out the closets and pantry.
• Provide access to the crawl space or cellar
• Provide access to the attic.

Offer Protection
Buyers want to feel secure in the purchase of their new home. One way to
help them feel more secure is by removing the fear of added repair costs after
closing. You can accomplish this by simply offering the buyer a home war-
ranty. The cost of the warranty can generally be paid at closing. For more
information on home warranties, go to www.ahs.com.

Offer Incentives
According to the 2005 National Association of Realtors Home Buyers and
Sellers Report (www.realtor.org), the average buyer will look at nine homes
over eight weeks before making a purchase. How can you make your listing
stand out from the crowd? One way is to offer the buyer an incentive to
purchase your listing. Here are some examples of incentives that could be
offered:

• Buy down the interest rate or pay points.

• Pay for limited closing costs.
• Pay for inspections or compliance work.

Incentives on the Horizon

According to Kemba J. Dunham and Ruth Simon of the Wall Street Journal Online, as the
market has begun to slow down, many builders are beginning to pile on the incentives to
keep their homes moving.
In a recent posting, they noted, ‘‘One developer is offering as much as $10,000 toward
closing costs, while another home builder is throwing in golf-club memberships. Some
incentives are available to any buyer, while others are tied to the buyer making use of a
builder’s preferred mortgage lender.’’
Builders also are paying higher commissions or special bonuses to real estate agents.
Other deals are more creative: A Miami developer is offering to buy back its condo-hotel
units at a premium after 18 months. Another builder, taking a cue from last summer’s
automakers’ deals, is offering ‘‘employee pricing’’ discounts in certain markets.
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 211

• Provide an allowance for upgrades.

• Provide a home warranty.
• Provide a selling agent bonus (broker approval required).

Prepare for the Sale

What would happen if a buyer decided he wanted to purchase your listing
and close within a short period of time? Prepare for success by taking care
of the details of the sale in advance. Top producers’ suggestions for their
sellers include the following:

• Presale inspections done for pest and dry rot for the whole house
• Pre-preliminary title reports done to remove clouds on title
• Net sheet check prepared based on estimated sales price
• Moving and storage companies researched
• Utility company list compiled for switchover
• Packing boxes ordered
• All keys and garage door openers located
• Loan numbers and estimated balances obtained
• Relocation research started
• Alternative short-term housing researched

Follow Up
It’s not always love at first sight for buyers. In many cases, buyers need added
information or an extra push to help them make that big decision. Smart
sellers and great agents team up to ensure that buyers are never left without
all the information they need to make an informed decision.

• Establish a communication plan—seller and agent.

• Follow up with potential buyers and agents after price adjustments.
• Follow up with all showing agents to learn their thoughts.
• Follow up with all open house attendees to learn their thoughts.
• Follow up with MLS and tour attendees to learn their thoughts.

So there you have it—10 ways to make your home sexier even in a hot
market. Taken separately, each item may seem insignificant and barely worth
212 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

mentioning, but taken as a whole, this list may be just the ticket for attracting
a high-quality suitor for your next listing. Ah, but what if the buyer doesn’t
even make it to the front door?
Often buyers don’t see every home that may have fit their needs because
listing agents fail to recognize the power of strategic pricing.

L E A R N I N G O P P O R T U N I T Y

The sexy house. Superstars explore ways in which sellers can make
their home stand out in the marketplace and appeal to the largest
number of buyers possible. They do this in many ways, including rec-
ommending ways to stage the home for showings, encouraging the
seller to prepare for a sale, removing barriers that keep buyers from
building a bond with a home, offering incentives for a buyer to make
a purchase, and helping the home tell a story.

Strategic Pricing
Here is a conversation you almost never hear in a real estate office:
‘‘Okay, folks, you mentioned earlier that you have a price range in mind
based on your lender’s recommendations. Staying within those guidelines,
I’ve gone ahead and set our search pattern to look for homes priced between
$332,000 and $308,500.’’
Does anything strike you as odd in this statement—like a price range of
between $332,000 and $308,500? For whatever reason, buyers and agents
almost always look in price ranges in $10,000 or $5,000 increments. For
instance, a more likely price range for this agent would have been to look at
homes priced between $330,000 and $310,000. Because of this psychological
oddity, wise agents use what I call price points as a way to gain the maximum
exposure for their client’s home.
Let’s take a look at how top agents use this simple technique:

SELLER PRICE STRATEGIC PRICE POINT MAJOR PRICE POINT

$307,000 $305,000 or $310,000 $300,000

$283,500 $280,000 or $285,000 $275,000
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 213

$196,000 $200,000 or $195,000 $200,000

$512,000 $510,000 or $515,000 $500,000

By slightly adjusting a seller’s price to a more strategic price, agents can

greatly increase the chances that the home will come up during a buyer
search. For instance, take a look at the first example of a seller who wishes
to price her home at $307,000. A buyer looking for homes probably isn’t
going to say, ‘‘Let’s look for homes from $292,000 to $308,000.’’ So pricing
a home at $307,000 doesn’t make a lot of sense. Instead, a strategic price for
this home would be either $305,000 or $310,000. By making this simple
adjustment, agents can help keep their listings in the sweet spot for buyer
searches.
You might notice that there is another category for this home as well,
called the major price point. A major price point is a $25,000 pricing incre-
ment. Major price points are important to recognize because these are gener-
ally the diving boards that buyers and agents spring their home searches from
initially and then slowly ratchet up from later. To stay with our first example,
a buyer probably wouldn’t start a search by looking at homes that are priced
at $305,000 or $310,000. Instead, most buyers, at least in the beginning,
would say, ‘‘Let’s look at homes priced at $300,000 and under.’’ Because of
this, a seller who wants to secure a sale quickly may consider adjusting his
price down to the nearest major price point.
Now for something really controversial. How many times have you heard
the urban legend about a seller who after unsuccessfully marketing her home
actually increased her price and then, bingo, sold the home? I know; when-
ever I hear a seller begin one of these tales, I always think, ‘‘Yeah, right.’’ But
the truth is, it can happen. How? The seller probably hit a more active price
range. By researching which price ranges in your market are the most active,
you can help your sellers fish for buyers in the best market holes.
For instance, take a look at these sample data:

PRICE RANGE NUMBER OF SALES, JANUARY–JUNE

$200,000–$225,000 162
$225,000–$250,000 97
214 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

$250,000–$275,000 104
$275,000–$300,000 173

Obviously, the most active price range for this particular market is the
$275,000–$300,000 price range. Now, I know this goes against the grain of
traditionalist thinking, which says that you should always price a home based
on its individual merits compared to other similar homes. But this often
ignores the overall market reality. For instance, might it be wise for a seller
who was considering pricing his home at $270,000 to move up to the next
major price point of $275,000? It makes sense to me if there are significantly
more sales in that price range. Of course, this works both ways; for instance,
a seller who was considering a strategic price of $230,000 may be wise to
move down a category and price her home at $225,000. Why? For the same
reason: It’s a better pricing strategy.
So let’s assume for a minute that you miss the mark with pricing, because
inevitably you sometimes will, and the home just sits. No showings, no calls,
no activity, nothing but dead air, silence. Now may be the perfect time to
consider a price adjustment.

L E A R N I N G O P P O R T U N I T Y

Price points. Most buyers and agents conduct MLS searches by

searching for properties in $10,000 and $5,000 increments. Be-
cause of this, many agents find it wise to price their listing at these
strategic price points.
Major price points. A major price point is any $25,000 pricing incre-
ment. Major price points are important to recognize because this is
often where a buyer begins a search for her next home.
Price range research. By understanding the most active price ranges
within a neighborhood, agents can better counsel their sellers on how
to find the highest concentration of buyers.

Price Adjustments—Planting an Early Seed

In sales, we are often told that what you do today will affect your income
tomorrow. It’s a classic scientific theory: causality, cause and effect, actions
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 215

create results. But what we often fail to consider is what happens when we
take the wrong actions. A classic example of this is spending a tremendous
amount of energy and effort listing a home and then watching helplessly as
the home sits, like a cement slab, at the bottom of the market ocean because
of a pricing mistake. Thankfully, there are steps that all of us can take during
the listing presentation to ensure that we end up with the result that the seller
hired us to make happen: getting the home sold.
One simple action we can all take to make this happen more frequently
is to have the no-showing discussion. The key to this technique is planting
an early pricing seed during your initial consultation. Planting an early seed
simply means that we give our clients ideas to consider early in a relation-
ship, preferably during the initial consultation, that may help later if it is
necessary to reposition the listing because it has failed to sell.
Let’s take a look at the no-showing discussion in action:

Agent: I’m very excited about getting to work on marketing your home, but
one thing I would like to talk about before we begin the process is what
can happen when we begin advertising and promoting the listing.
It doesn’t happen often, but it’s certainly a possibility to be aware of.
You see, on average, it takes about 12 to 15 showings to produce an offer.
So if we find that the home isn’t attracting buyers, even with my extensive
marketing plan in place, what that is signaling is that the market is reject-
ing the price, and no matter how much advertising I do, I can’t overcome
that.
If that happens, we may need to consider a price adjustment.

Now you might think, ‘‘Well, that’s a big buzz kill. Do I really want to
say that right after I have taken the seller’s listing?’’ For many top producers,
the answer is yes. The reason is that if you wait and attempt to have this
discussion later, say when the home is not being shown and the seller’s time
deadline is ticking down to zero, the seller may not buy into your statements.
At that point, she may think that you’re just trying to cover your tracks.
Instead, superstars, like Boy Scouts, come prepared. During the listing pre-
sentation, they talk about things that may help them later.
Another powerful strategy for planting early seeds is to employ the price
adjustment letter technique. This user-friendly approach ensures that should
216 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

you and the seller misfire when you aim your pricing gun at the market you
will be able to reload and try again at a more competitive price. When using
this technique, you simply explain to the seller that as a normal part of your
sales process, your team mails out a price adjustment letter every 30 days to
any listing in your inventory that has not yet received an offer.
Take a look at how one superstar employs this powerful technique:

Price Adjustment Letter Discussion

I want to thank you for this listing. I’m very excited to begin marketing
the property. I want to take just a couple of minutes and talk about the
follow-up process. Would that be okay?
One of the things that my team does is mail out a price adjustment
letter every 30 days to all of our listings that have not yet received an
offer. I don’t want you to be offended by this; we do it with every seller.
You can do one of several with the letter: You can throw it away or you
can save it in case you might want to use it in the future or you can
just fill in the price adjustment and mail it back in. If you do adjust your
price, let me tell you what will happen then . . .

Notice that this agent explains that these price adjustment letters are
part of her SOP, her standard operating procedure. In other words, she does
this with every client, not just this particular seller. She is not singling this
client out, so there is no reason for him to be offended. This is a powerful
technique. Like a dripping faucet, this strategy forces the seller to consider,
every month, the fact that the reason his home isn’t selling may be at least
partially because it is overpriced.
One key item to notice in the dialogue is that the agent discusses not
only the price adjustment letter itself, but makes the transition into what will
happen should the seller decide to go forward with a reduction. For most
agents, this will mean a minimarketing blitz that will reenergize the listing
and reintroduce it to the marketplace. This added enticement may be just
enough to motivate a seller to consider sending the form back in.
Let’s take a quick look at a sample price adjustment letter:
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 217

Mr. and Mrs. ⬍Seller⬎

123 Any Street
Any Town, Any City, Zip

Dear ⬍Seller⬎,

As a service to my sellers, I provide a monthly opportunity to consider a

price adjustment.

Price is the number one reason why homes sell in any market, and it’s
my firm commitment to help you sell your home for top dollar.

If you think now may be the right time to make an adjustment in your
price strategy, please fill out the enclosed form and mail it back to my
office. Rest assured that we will immediately market your new adjusted
price aggressively through every medium available to our firm.

If you would like to talk to me personally about this important issue,

please call me at your earliest convenience.

Warmest Regards,

Jim Remley
Broker

You might notice that the key words price adjustment rather than price
reduction are used in the body of the letter. Why? In many sellers’ minds, the
words price reduction can have a negative connotation, as if they are actually
giving up money that they might have eventually received. In fact, I’ve often
heard sellers later say, ‘‘Yeah, well, I came down from X,’’ or, ‘‘Well, tell the
buyers I started at X.’’ Using the words price adjustment may help sellers
make the mental leap needed to realize that they aren’t really giving up any-
thing; after all, it could take years for the market to catch up with an over-
priced listing. Instead, they are simply tweaking their current price by making
a small adjustment toward an offer-generating price range.
But there could be a flip side to this coin that many agents never prepare
their client to face, which is a home that generates loads of showings but still
produces no offers.
218 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

L E A R N I N G O P P O R T U N I T Y

Planting an early seed. This involves giving clients ideas to consider

early in a relationship, preferably during the initial consultation, that
may help later, if needed, to reposition the listing if it has failed to
sell.
The no-showing discussion. Superstars inform clients of what it
means when their home is not being shown, which in most cases is
that the home is priced over the market.
The price adjustment letter. Many agents use this technique as a way
to explain to the sellers that as a normal part of their sales process
their team mails out a price adjustment letter every 30 days to any
client whose listing has not yet received an offer.

Condition Adjustments—Planting Early Seeds

You would think this would be a rare event: A home is priced right—in other
words, the market loves the price, so it generates lots of showings—yet myste-
riously it still fails to generate offers. Amazingly, this is a relatively common
occurrence; what’s uncommon is to find agents who understand what’s actu-
ally going on.
The answer is that the market is rejecting the home, the product. There
is something inside the home that is turning buyers off. Thankfully, we can
prepare our clients for this possibility by planting another early seed at the
outset of the listing, during the initial presentation.
Take a look at how one agent tactfully covers this ground:

Condition Feedback Discussion

Agent: Earlier we talked about the possibility of having no showings of the
home and the need to consider a price adjustment if that happens, but on
the other side, it’s also possible to have a lot of showings on a home but
still receive no offers.
In that case, what’s happening is that there is something about the
home itself that is preventing buyers from moving forward. Part of my job
will be to talk to everyone who tours your home to get their feedback. Good
or bad, I’ll report this information back to you. How does that sound?
A SUPERSTAR’S GUIDE TO SALABLE LISTINGS 219

No one likes to be rejected, which is why even the most jaded sellers will
often be spurred to action by this discussion, even before the first showing
takes place. This discussion also creates a great starting point for an early
price adjustment or allowance should the seller still be unwilling to make a
condition improvement and prefer to sell ‘‘as is.’’
So how do you track the feedback on showings? Many agents simply in-
struct their clients to alert them when a showing takes place so that they can
then follow up with the agent who showed the home. Some agents use technol-
ogy to help them speed this process along. For instance, Figure 9-3 shows a
sample follow-up form that many agents use after completing an open house.
Personally, I think five questions is the maximum; any more and you
may scare off your potential client. Will everyone respond? Nope. But a
surprising number will. Once you have received the results, you can strip off
the client’s e-mail address and any potential confidential information, and
forward this unbiased, unfiltered information directly to a seller. Like it or
not, the seller will get a glimpse of what real-world buyers are saying and
thinking about his home. Sometimes the truth both hurts and helps.
Many agents who really want to streamline this process are turning to

FIGURE 9-3.
220 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

outside vendors like www.homefeedback.com that can provide automated

solutions for customer feedback tracking.

L E A R N I N G O P P O R T U N I T Y

Condition feedback discussion. This discussion creates a great start-

ing point for agents to explore the importance of keeping a home in
top condition if the seller expects to receive top dollar.

Powerful listing agents gently open their client’s eyes to the importance
of creating a competitive product, an important consideration in a constantly
changing real estate environment. These superstars have learned how to mas-
ter the game, something that we cover in depth in Chapter 10, ‘‘Mastering
the Game.’’
 C H A P T E R 1 0

Mastering the Game

Some people just seem to be naturals. They are born to win,
fearless leaders who are, I think, genetically predisposed to success. Within
my own real estate company, I can think of many top producers who by all
appearances slipped into the real estate business as if they were putting on a
pair of their favorite sneakers—agents like Kelley Forney, a successful entre-
preneur who before entering the real estate business had built a successful
chain of music stores and then went on to generate over $10 million in sales
during his second year in the business, or Diane McKilliop, who was re-
cruited by my partner while she was serving us lunch at a local restaurant
and blew us away by selling over $8 million in her first year.
Like tornadoes, these dynamos were off and running within days of en-
tering the industry, cutting an unstoppable swath through the market. And
then there are guys like me. When I started out in real estate, I watched, nose
pressed to the glass, as my own local real estate idols, agents who were a lot
like Kelley and Diane, seemed to walk on water, knocking down sales like
baseball players on steroids. These agents, it seemed, could hit only home
runs. They were, and still are, my personal superheroes, men and women
who made their bones the hard way, during one of the toughest real estate
markets imaginable, when interest rates had pushed toward 17 percent.
Now you might assume that I’m about to tell you that these agents are
no different from you and me; that they put their pants on one leg at a time;
221
222 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

and that fundamentally, at their core, they are just like the rest of us. Wrong.
After a couple of false starts, I finally worked up the courage to actually sit
down and talk with a few of these agents over lunch, and coffee, and donuts,
and beer.

Why Some Agents Stand Out

What I learned was that these agents are successful for a reason. And, yes,
there is definitely something about how they work that’s different from the
way the vast majority of agents operate their businesses. It’s what makes
them both uniquely successful and competitively dangerous. They have an
edge. In my discussions with these superstars, I found that there are, in fact,
at least five key ways in which these agents SHINE. Let’s take a look:

S: Sell to everyone.
H: Help others.
I: Invest in change.
N: Never fear the next step.
E: Exude confidence.

Sell to Everyone
One of the first things you notice about successful real estate agents, master
presenters, business leaders, and any good beautician is their ability to sell
to anyone at any time. One of my good friends, Susan Murphy, now a super-
star real estate agent who closed over $8 million in sales in 2005, launched
her real estate career after retiring from a hair salon where she had worked
for over 20 years as a hair stylist. ‘‘With a pair of sharp scissors in my hand,
I always had a captive audience!’’ Susan says of telling her clients about her
career move. Susan is a natural-born salesperson, an engaging, high-energy
person who, after only a few years in the real estate business, now works
almost entirely from her referral base.
Like Susan, superstars tell everyone they know, everywhere they go about
real estate. They are constantly on stage presenting their services. It’s their
passion. They don’t think of it in terms of selling; for them it’s a natural
extension of their personality.
Okay, so what if you’re not an extrovert? I can relate to that. To be
MASTERING THE GAME 223

honest, I’m not much for schmoozing, pressing the flesh, or the whole air
kiss thing either. But in recognizing this about myself early on, I came to
accept that allowing a fear of people to determine the success of my business
and the number of times I could get in front of a buyer or seller to conduct
a presentation was something that I could not allow to happen. Instead, I
had to become an extroverted introvert. I had to push past my fear of rejec-
tion and, at least while on the clock in my real estate business, turn up the
volume on my people skills.
According to James J. Messina, Ph.D., and Constance M. Messina,
Ph.D., ‘‘Fears are irrational beliefs about how an object, event, happening,
or feeling will result in negative, disastrous, life threatening, disturbing, or
unsettling consequences for you.’’ Here are a few of their suggestions for
moving past your own fears:

• Make an honest assessment of your fear and create a consistent, system-

atic plan of action to overcome it. In real estate, this may include
building a consistent plan for prospecting and setting a goal of con-
ducting at least one presentation to either a buyer or a seller each
day.
• Learn to relax physically; reduce anxiety and tension by focusing on
how to calm yourself in high-stress situations. In a presentation setting,
this means that you should be able to relax to the point that your
voice is calm and confident, and you are able to make consistent eye
contact and smile throughout your presentation.
• Establish a sense of confidence in your ability to overcome and deal
with the feared objects or events. In sales, this can often be achieved
through intensive preparation, practice, and rehearsal. Many agents
role-play their presentations and prospecting techniques with a part-
ner to gain confidence.

Help Others
It’s an old truism: ‘‘Help enough other people to achieve their goals, and you
will achieve yours.’’ Give and you shall receive. Do you believe that? I do.
Some call it the law of reciprocity, meaning that when you give to others,
what comes back is often far more valuable. Superstars apply this to real
estate by digging into their clients’ long-term goals and finding ways to help
them achieve those dreams.
224 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

For Dennis, a veteran agent from Alaska, this means that he includes in
his client notes a section dedicated to discovering his clients’ long-term real
estate goals, in addition to any business, investment, or personal goals. ‘‘I
like to ask my clients during my first meeting where they see themselves
housewise 10 years from now,’’ he says. By asking this simple question, Den-
nis finds that clients often open up about all kinds of unrelated topics that
are meaningful to them.
For a twist on this idea, check out the sample newsletter in Figure 10-1,
which includes a shout-out to clients who have just completed a major life
mission: jumping out of an airplane at 10,000 feet.
Agents who can help their clients achieve long-term goals often find that
those clients instantly become referral generators. Another way to have fun
with life goals is to add a link to your website like www.43things.com, a
website where hundreds of thousands of people enter their aspirations and
then help one another make their dreams a reality.

Invest in Change
Have you ever seen someone who refuses to change, to get with the times, to
move upward and onward? For some, this may mean that they still wear
parachute pants and their sunglasses at night, while for others it may mean
that they’re still lugging around an old-fashioned typewriter to peck out offers
and counteroffers.
Real estate agents who don’t adapt their technology, business model, and
presentation message to meet the needs of a constantly changing real estate
customer run the risk of becoming like an old home, one that hasn’t been
remodeled since its original construction date in 1959: obsolescent.
Master presenters are topical; their message is perishable because it
changes, adapts, and contorts to fit the needs of each client. This means that,
over time, an agent’s message is always changing. Let’s take a look at an
example of this by examining a common seller concern:

Why should I list my house now?

Have you heard this question recently? I have, and it can be a showstop-
per if you don’t have a solid response. In today’s hot real estate market,
sellers can have many legitimate fears about selling their home, not the least
of which is finding another one to buy.
MASTERING THE GAME 225

FIGURE 10-1.
226 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

The ultracompetitive environment of escalation clauses, multiple offers,

and endless showings is daunting for the listing agent, let alone for a seller
who is considering listing his home. In making the largest financial decision
of their lives, many sellers are hesitant to jump into the deep end of the pool.
So how can you, the professional real estate agent, help a seller find the
courage to jump off the diving board and into the market? You can start by
giving her this list of 10 reasons to market her home now.

Ten Reasons to Market Your Home Now (Seller’s Market)

1. Pricing power. In most markets, sellers are able to sell for top dollar, as
historically low interest rates and high demand have fueled a rush of
buyers into the marketplace.
2. High demand. The low inventory in most markets means that the num-
ber of buyers competing for each home is higher than it has ever been,
and thus the time it takes to secure an acceptable offer has dropped
considerably.
3. Low interest rates. Interest rates have remained at 30-year lows, despite
the fact that the Federal Reserve has hiked rates for the past several
quarters. Today’s low rates mean that more buyers can afford to pur-
chase more amenities and pay higher prices than in the past.
4. Fewer contingencies. Because many buyers have been able to sell their
former homes quickly, many of them are able to write offers that are
not contingent on the sale of their home.
5. Flexible financing. Many buyers today are able to enjoy hundreds of
different possible loan programs, from adjustable rate mortgages to
reverse amortization mortgages, and even no-documentation loans.
This flexibility means that more buyers can afford to buy homes than
ever before.
6. Timing control. Sellers who need more time to move, find a replace-
ment property, or move into a rental can be more selective in choosing
the offer that best suits their needs. They can also specify their timing
needs in advance.
7. Tax savings. Sellers who have owned their home for two of the past
five years and have lived in it for two of the past five years may be able
to take up to $250,000 for a single person or up to $500,000 for a
married couple out of the sale as tax-free gains. See www.irs.gov for
details.
MASTERING THE GAME 227

8. Nationwide market expansion. The national housing market is now at

record levels. This may mean that there are more out-of-state buyers
than ever before as potential buyers for a seller’s home.
9. Homeownership rates. The number of American families who own a
home is at an all-time high—70 percent. This is good news for sellers,
as it means that more families are recognizing the value and wealth-
building potential of owning real estate.
10. Discounted rental rates. Although home prices have climbed steadily
over the last several months, rental rates in most areas of the country
have not kept pace. This can be good news for sellers who would like
to take their time finding their next home.

As you read my Ten Reasons to Market Your Home Now, you may al-
ready be questioning some of my statements. Why? The market is changing.
In some markets, and maybe yours, there has already been a dramatic down-
shift, with home inventories piling up like a morning traffic jam and buyers
scattering in the wind. Obviously, if this is your market reality, this approach
won’t work anymore. Because of this, it may be time to adapt your message.
Let’s take a look at how my 10-point list might change for a slower
buyer’s market.

Ten Reasons to Market Your Home Now (Buyer’s Market)

1. Buying power. Many sellers are now benefiting from the ability to pur-
chase their next home at a bargain price because of the larger inventory
of homes now available. Don’t miss this tremendous opportunity.
2. Fewer showings. Having a smaller number of buyers in the marketplace
and more homes to view means fewer showings, which many sellers
prefer, as the showings they do have are for serious, committed buyers,
not just tire kickers.
3. Interest rates. Even though interest rates are rising slowly, buyers can
still benefit from record-low rates. Today’s low rates mean that more
buyers can afford to purchase more amenities and pay higher prices
than in the past. Many buyers are motivated to buy now while interest
rates are still relatively low (this may change in the future!).
4. Relocation advantages. Many parts of the country have experienced
significant real estate market slowdowns. As a buyer moving to one of
these areas, you may find significant savings.
228 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

5. Flexible financing. Many buyers today are able to enjoy hundreds of

different possible loan programs, from ARMs to reverse amortization
mortgages, and even no-documentation loans. This flexibility means
that more buyers can afford to buy homes than ever before.
6. Incentives for faster sales. Many sellers who would like to sell quickly
have found that buyers in today’s market respond to incentives. Many
seller incentives cost nothing or very little to implement but can make
a home extremely attractive to the market.
7. Tax savings. Sellers who have owned their home for two of the past
five years and have lived in it for two of the past five years may be able
to take up to $250,000 for a single person or up to $500,000 for a
married couple out of the sale as tax-free gains. See www.irs.gov for
details.
8. Strong homeownership rates. The number of American families who
own a home is still at an all-time high—70 percent. This is good news
for sellers, as it means that more and more families are recognizing the
value and wealth-building potential of owning real estate.
9. More time to shop for your next home. In our current market, you may
have more time to shop for your next home and less worry about com-
peting with other buyers for your next home. This means that you can
relax and take your time.
10. Contingency sales. Many sellers are now willing to accept offers that
are contingent on a home sale. This means that you can begin shopping
for your next home while your home is still on the market.

Watch out—you’re in the spin zone. As a master presenter, you’ve

adapted your message to the market and are now encouraging your clients to
move forward based on this new information. By doing so, you will be help-
ing your clients who need to sell to take the next step toward their housing
goals. Let’s see how top producers do the same in their real estate business.

Never Fear the Next Step

Overwhelmed. This was surely my feeling when my clients told me that they
wouldn’t be able to close the transaction. Through the wife’s tears and the
husband’s anger, the elderly couple explained that they had just now learned
that they owed something called ‘‘recapture’’ on their low-income home loan.
Recapture, I quickly learned, was the amount of money that the government
had paid each month to subsidize this couple’s house payment, and that the
MASTERING THE GAME 229

government required the couple to pay back if they sold the home. Because
of this, the couple wouldn’t have enough cash to buy their next home.
This was a disaster. Not only did I represent both sides of this transac-
tion, the buyer and the seller, but I also represented the sellers in their next
home purchase as buyers. Three sides, three commissions, and three reasons
to drink three bottles of tequila if this deal took a nosedive. Driving back to
the office, I called my broker to ask for his advice. He wasn’t in. So I dialed
my real estate buddy Scot. His advice: Don’t panic; instead, focus on the
next step.
Scot was right on the money. In a tough situation during a presentation,
a closing, or a negotiation, it’s easy to become overwhelmed and mentally
throw in the towel during a crisis. Superstars don’t fall into this trap; instead,
they focus on the next step. How? First they consider the outcome, the end
result that everyone would like to see happen, and then they work backward
by determining what steps are necessary to climb that mountain. In my case,
this meant getting on the phone and talking with the couple’s lien holder.
After taking a deep breath, crossing my fingers and toes, and hoping for a
miracle, I dialed the lender. The lender picked up on the fifth ring, sounding
exasperated. Carefully I explained my clients’ predicament, trying not to
sound too desperate or demanding. Near the end of the conversation, just
before it seemed about ready to stall, I employed a technique I had learned
from one of my veteran colleagues, a tactic that over the years I have come
to call the problem-solver technique.
Check out how this simple dialogue may help you with your next real
estate challenge:

The Problem-Solver Technique

Listen, knowing what I’m up against, if you were me in this situation,
what would you suggest? What are my best options?

I’ve used this exact phraseology hundreds and hundreds of times

throughout my career, and I am continually amazed at how perfect strangers
will rise to my challenge, dig in, and attempt to help me find a solution to
230 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

my problems. Yes, I still get the occasional idiot who cracks his gum, sneers,
and then tells me to take a hike, but that is extremely rare.
Now in this case, I would love to tell you that the lender gave me good
news. She didn’t. But she did give me a suggestion: Why not share the pain
by having everyone split up the cost and still close the transaction? It’s true
that this would have never worked in a hot market, but at the time the market
wasn’t hot; in fact, it was quite chilly—frosty really. So, hat in hand, I ap-
proached each party in the transaction (there were more players than I would
have guessed) and asked for participation.
In the end, aside from the seller, who came up with a larger contribution,
each of the players, myself included, pitched in less than $500 each to create
a successful closing of a deal that should, by all rights, have failed. How? By
never losing sight of the next step.

Exude Confidence
Consumer confidence, or the measurement of the public’s likelihood of buy-
ing durable goods like automobiles or real estate, is measured in detail as an
indicator of future economic prosperity or the harbinger of a possible slow-
down or, worse yet, recession. Interestingly, these trend lines may do little
more than reinforce false perceptions. Let me give you an example of how
this might happen. A consumer, we’ll call him Joe Seller, has just finished
his turkey casserole and is sitting down and watching the nightly news. With
glassy eyes, Joe listens as the anchor says in his deep baritone voice:

And now for some housing numbers. The National Association of Home
Designers reports today that the number of homeowners expecting to
sell their home and purchase a new home has declined by 21 percent
from last year. . . .

One of my speaker friends always likes to use this one-liner on stage:

‘‘Sixty-seven percent of statistics are made up by speakers on the spot.’’ Nor-
mally it takes an audience a second or two to get the joke. But he makes a
good point. We should always look for trends and be open to new informa-
tion, but we shouldn’t be fooled by false positives or statistics that aren’t
supported by other facts.
So what do you think—has Joe been fooled? My guess is that Joe has
bought into this information hook, line, and sinker, without bothering to
MASTERING THE GAME 231

compare these data with other studies or his own local market statistics. He
just knows one thing: ‘‘The real estate market is on the skids!’’ Our real estate
clients are a lot like Joe; they take their cues from us when it comes to
forming an opinion about the real estate market. After all, how many times
have you been asked, ‘‘How’s the real estate market?’’
Superstars exude confidence. They have the power to make others
around them become believers as well. And the one thing a real estate super-
star believes in more than anything else is the power of owning real estate.
So instead of saying something like, ‘‘Well, I think the market will bottom
out for a few years,’’ a top producer might say, ‘‘I think this is a terrific time
to buy real estate, just like it was a great time to buy real estate 5 years ago,
10 years ago, and 15 years ago. Real estate is always a great investment!’’
Our clients want us to be believers; they want us to be absolutely con-
vinced that our product is the best investment that money can buy. They
need us to give them positive reasons to move forward. Top producers exude
this confidence. So the question is, Do you believe? Do you believe in your
product and the value of your services? Do you buy into what you’re selling?

L E A R N I N G O P P O R T U N I T Y

Mastering the game. Superstars have an edge that enables them to

be both uniquely successful and competitively dangerous: They have
mastered their presentation skills by learning how to SHINE.
S: Sell to everyone.
H: Help others.
I: Invest in change.
N: Never fear the next step.
E: Exude confidence.

Conviction: Buying Into What You’re Selling

There is a new science that specializes in the study of attitude and its effect
on a person’s well-being and overall health. The name of this new field is
psychoneuroimmunology. This fascinating new area of study, dealing with
the power of belief, is beginning to catch on with mainstream scientists and
institutions, as a person’s attitude has been shown to dramatically affect her
232 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

ability to fight off fatigue, sickness, and even disease. This may seem like
common sense to the layperson: ‘‘If I’m in a good mood, I generally feel
better. If I’m in a bad mood, I often feel depressed, tired, or even sickly.’’ But
health-care professionals have been reluctant to embrace this line of study
unless there could be verifiable proof. Today there is, as numerous studies
have shown that a person’s attitude and health are strongly linked. For in-
stance, in one study of 400 reports of spontaneous remission of cancer, the
patients had one factor in common: a positive attitude and the conviction
that they would survive the disease.
So do you believe? Do you have an absolute conviction that your clients
can benefit from your services? The hard truth is that unless you believe in
the power and value of your services, your clients never will. In the sales
business, then, the first person we need to sell isn’t the client but ourselves.
We have to buy in, become believers, and affirm our own convictions.
Amazingly, there is a quick test to determine whether we truly think that
our services have value. Why not take a minute to measure your level of faith
by taking this quick conviction quiz:

1. Do I charge all of my clients the same fee for my services, or do I cut

my fees in some cases and not in others?
2. Do I adjust my services by giving some clients more and some clients
less?
3. Do I agree to different listing terms with some clients, like the length
of the contract?

So did you answer yes to any of the questions? Congratulations; you are
a mortal, like the rest of us. You bleed red, and you cry at sad movies. You
bend at times when you shouldn’t, and you give up things that you don’t have
to. You are, my friend, a sinner. But not to worry, we all are, which simply
means that we can always find ways to improve and strengthen our own
resolve. This is important, because when we give in to a seller who demands,
for instance, a commission concession, aren’t we really saying, ‘‘You know,
Mr. and Mrs. Seller, you caught me. My services were never really worth X
percent to begin with. I charge that only to people who don’t know any
better!’’
I know it’s not like that, right? Each situation is unique; every seller is
different. But is it and is she? Or is this what we tell ourselves to justify our
MASTERING THE GAME 233

not holding fast to our own standards? Obviously there are times when we
all have to bend or even break our own rules, but if this is a daily event,
something normal rather than abnormal, what does this say about our own
belief in the value of our services?
Superstars meet this challenge by preparing for confrontations with their
business standards in advance, and by understanding that competition often
drives the attitudes and expectations of a skeptical and often cynical market-
place. An agent’s self-confidence cannot be blind faith; it must be tempered
with proof, facts, and undeniable evidence that her services are the best in
the marketplace. To explore how to get this done in the real world, let’s look
at three ways strong agents prove to their clients that they are the cream of
the crop:

1. Provide a service comparison chart. This easy-to-build chart compares

your services with those of your competitors to demonstrate why you
alone can help the seller achieve his real estate goals faster and more
easily, as well as how you offer the most value per dollar spent. Take a
look at the sample service comparison chart in Figure 10-2.

FIGURE 10-2.
234 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

2. Provide personal statistics vs. the market. Strong agents can almost al-
ways beat the market. For instance, if the market average is that homes
sell within 45 days of being listed, but you are averaging a home sales
rate of 30 days or less, this is something that you should be shouting
from the rooftops. Here are three key numbers to measure:
• Average days on market
• Average percentage difference between list and sales price
• Average sales price
3. Give them evidence. According to the 2005 National Association of
Realtors Profile of Home Buyers and Sellers, the top two reasons for a
client’s hiring us are (1) our reputation and (2) our knowledge of the
neighborhood or area. So what proves beyond a shadow of doubt that,
first, you have the best track record in the industry, and second, that
you really know the market inside and out? Both of these questions in
clients’ minds can be answered by giving them a copy of your sales
track record (assuming that you have a strong track record) that dem-
onstrates that you are, in fact, selling homes in the neighborhood.

Top Producer Tip: Are you a new agent? Don’t worry; superstars
weren’t born with a real estate license tattooed on their forehead. If
you’re greener than grass, try using your office statistics compared to
the overall market, which will almost always show your firm in a favor-
able light.

Once your clients have bought into your story and have become believ-
ers, the true test of your abilities will arrive because it’s one thing to take a
listing, but it’s a whole different thing to keep one.

L E A R N I N G O P P O R T U N I T Y

‘‘Buying in.’’ Superstars have learned that a real estate agent’s self-
confidence cannot be blind faith; it must be tempered with proof,
facts, and undeniable evidence that her services are the best in the
marketplace.
MASTERING THE GAME 235

Avoiding Crisis Addiction

There is an ailment that afflicts an astonishingly large number of real estate
agents, crippling their business, paralyzing their ability to earn a living, and
causing huge amounts of stress and anxiety in both their business and per-
sonal lives. I call it crisis addiction. An agent with a crisis addiction is con-
stantly riddled with feelings of guilt, depression, apprehension, and, most of
all, fear—a fear of failure.
How do you catch this debilitating disease, and, more important, how
can you avoid it? For the answers, let’s first see if you are already infected.
Quickly, answer these five questions:

1. Do you always seem to be in a crisis or just leaving one?

2. Do your clients regularly get upset with you for not following through?
3. Do you seem to be always rushed, never able to keep up with your
workload?
4. Do you feel like you’re drowning in commitments that you can’t possi-
bly fulfill?
5. Do you feel guilty when you’re not working?

If you answered yes to any of these questions, it’s very likely that, at least
in part, you have fallen victim to a crisis addiction. Like Sandy, an agent
from Utah, you feel trapped in a vicious cycle of never living up to your
clients’ or family’s expectations. As she put it, ‘‘When I started out in real
estate, I always seemed to be at a dead run, never able to finish any one
thing. It was pretty depressing.’’
In large part, the solution to curing a crisis addiction is to understand
how insidious this disease can be by recognizing its symptoms, one of which
is the sense of relief you feel when you solve a crisis that you have actually
been responsible for creating. Sounds crazy, right? But let’s look at a real-
world scenario that almost every agent can identify with:

Jim is a busy guy; he is taking listings left and right, but he is failing to
follow through on his promises, and now one of his sellers has finally
tracked him down by phone at the office and is hotter than a firecracker
on the Fourth of July. Like any good agent, Jim immediately hops in
his car and rushes to the seller’s home to put out the fire. Not surpris-
236 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

ingly, Jim is able to make the seller feel better by promising him even
more services. Leaving the seller’s home, Jim feels terrific; he has saved
the listing. Another job well done! The seller is happy, and Jim is happy.

Can you see the danger in this example? Jim feels good about solving a
crisis that he actually created in the first place by failing to follow through.
By patting himself on the back, he may even reinforce this negative behavior.
Sadly, even the best agents can fall into the trap of becoming a serial real
estate arsonist by starting client fires, then returning to put out the blaze
only after it threatens to destroy their relationships with their clients. It’s a
dangerous game, and every agent who plays with fire in this way eventually
gets burned.
The good news is that you can get back control of your career by follow-
ing the path of agents who have learned how to avoid a client crisis. They
start by being short on commitments and long on fulfillments; in other
words, they underpromise and overdeliver. For agents who are at the top of
their game, this often means that it is critically important that they keep
their clients in the loop when designing and implementing a marketing plan,
managing client data, and ensuring the accuracy of the listing information.
For example, to accommodate the needs of sellers who are becoming
increasingly more sophisticated, and technologically savvy, many superstars
provide these value-added services when working with their clients:

Four Ways to Provide Exceptional Follow-Through

1. Provide advance copies. When designing advertising, many top produc-

ers provide their clients with an advance proof of ad copy before it is
run. This ensures that the client will be satisfied with the advertising,
and that there are no questions after the fact.
2. Review MLS data. Once the listing has been entered into the Multiple
Listing Service, it is wise to either e-mail or fax a copy of the listing to
the client for her review. The client can then add to the listing or
correct any errors that may have occurred.
3. Review and select property photos. Using the highest-quality home pho-
tos is an essential aspect of the marketing plan, and choosing the right
photo is critical. Allowing the client to have input into the photo selec-
tion is a terrific way to keep the seller in the marketing loop.
MASTERING THE GAME 237

4. Review and get approval for Internet marketing. Many superstars today
e-mail their clients a link to any Internet-based marketing pages that
the agent produces. This allows the client to see the work being done
to market his home and also gives him an opportunity to critique any
errors or omissions.

To continue on the road to recovery, many agents find it wise to stay

ahead of the game rather than behind the eight ball by establishing a commu-
nication plan.

L E A R N I N G O P P O R T U N I T Y

Crisis addiction. An agent with a crisis addiction is constantly riddled

with feelings of guilt, depression, and apprehension because he is
often either going into or coming out of a crisis.
Following through. To overcome this addiction, many agents start by
being short on commitments and long on fulfillments; in other words,
they underpromise and overdeliver.

Establishing a Communication Plan

An essential element of the success of any agent who is at the top of her
earning curve is her ability to communicate with her clients on a regular
basis. Obviously, different clients will have different needs when it comes to
this ongoing communication (some are needier than others).
To focus on the client’s need when dealing with sellers, wise agents often
establish their clients’ preferences at the initial seller consultation. Often they
do this by asking some simple assessment questions, as shown in Figure 10-3.
Using this form, an agent can now update her contact management sys-
tem and make a point of touching base with the client in accordance with
the client’s unique preferences and schedule.
As a part of this update process, many superstars mail (or e-mail) their
clients a monthly report that shows when and how the property has been
marketed. In addition, many agents establish a drip e-mail system with their
clients. A drip e-mail system is a series of preplanned, prescheduled e-mails
that are sent out periodically (like a dripping faucet) to keep the client up-
dated on any planned marketing activities. For instance:
238 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

F I G U R E 1 0 - 3 . S E L L E R C O M M U N I C AT I O N P L A N

Seller Communication Plan:

Seller’s Name ____________________________________________________

Address ________________________________________________________
City, State, Zip ___________________________________________________
Primary Phone ___________________________________________________
E-mail __________________________________________________________
Business _______________________________________________________

Preferences:
Communication by: Phone E-mail
How often contacted: Weekly Monthly
Advertising copies: Mailed E-mailed
Marketing reports: Mailed E-mailed
Personal visits: Weekly Daily
Follow-up on all showings: Yes No

I authorize the release of my e-mail address for the strict purpose of transaction
updates to third parties directly involved in the closing of any transaction:
________________________ Seller
________________________ Seller Date __________

Contact Management System updated

on______________________________________________________________

Dear Mr. and Mrs. Homeowner,

Thank you for listing your home with my team! We’re excited about your
listing, and we just wanted to let you know exactly what we will be doing
to market your property within the first few days:
1. Listing entered into www.rmls.com, www.Realtor.Com, www.allstate
realestate.com, www.homeadvisor.com, and www.agentwebsite.com.
2. Sign placed with Ryder’s.
3. Flyer box placed.
MASTERING THE GAME 239

4. Directional signs placed.

5. Home warranty faxed in.
6. Written ads approved by seller (they will come shortly).
7. Lockbox placed.
8. Office tour scheduled.
9. MLS tour scheduled.
10. Open house scheduled.
11. E-mail sent to top producers.
This is just during the first seven days! Please let me know if you would
like to see something that is not on the list!
Sincerely,
⬍Agent Name⬎
P.S. The highest compliment I can receive is your personal referral. Who
do you know who is considering selling or buying a home?

By refining your communication plan, you can follow the lead of compa-
nies that provide first-class service, like Ritz-Carlton. Ritz-Carlton doesn’t
advertise. Why? Ritz-Carlton’s reputation represents ‘‘brand equity that has
built up over the years,’’ says Bruce Himelstein, the company’s vice president
of marketing. ‘‘We mandate to our employees that they provide the finest
personal service,’’ he continues. ‘‘Each person is responsible for finding and
recording the preferences of individual guests, for example, so that they can
get things before the guest even knows they need it. And each employee is
empowered to break away from whatever they’re doing if a guest needs some-
thing. When you’ve built up that kind of culture over the years, it all starts
to stick.’’
This kind of signature selling is the hallmark of first-class service and a
key to mastering the presentation game. Let’s find out how superstars achieve
this goal by exploring your signature selling style.

L E A R N I N G O P P O R T U N I T Y

Communication plans. To lead with the clients’ need when dealing with
sellers, wise agents often establish their client’s preferences at the
initial seller consultation and follow up with calls and written reports.
240 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

Signature Selling
Have you ever experienced a work of art?
Perhaps it was a painting that took your breath away or a piece of litera-
ture that stirred your emotions. Just as likely, it may have been a mesmerizing
photograph, or even a piece of captivating music. Now think carefully; once
you had finished soaking the experience in, what was your next step?
If you’re like me, your first impulse might be to tell a friend or a loved
one about your discovery. But before you run for the door or reach for the
phone, you probably will take just a minute to find the artist’s signature.
Why? Because the person who created a work of art is an essential part of
the art itself. In fact, most of us are in awe of a powerful artist; we love to
study, dissect, and discuss how these inspired creators are able to tap into
their inner talent. As Sir Arthur Conan Doyle once wrote, ‘‘Mediocrity
knows nothing higher than itself, but talent instantly recognizes genius.’’
So are you an artist in the field of real estate? Are you willing to sign each
of your transactions or listings with your name? It’s an important question. A
signature is a powerful testament to your overall performance. It says that
you take ownership of and pride in your accomplishments and that you are
willing to allow others to admire and even critique your work.

Five Ways to ‘‘Sign’’ Your Work

1. Take pride in every listing. By taking pride in a listing, you take on
ownership of your work. Ask yourself: ‘‘If my business were to be mea-
sured only by my performance in listing, would I be proud of my
work?’’
2. Stop making excuses. Any agent who justifies his failure by making
excuses can fade into mediocrity and become one of the masses. Super-
stars rise above the horde by accepting only excellence as their finished
product.
3. Let your work stand for itself. Just like that of many master artists, even
the best agent’s work may go unappreciated. Superstars realize that
what’s important is not always the recognition of excellence by others,
but the fulfillment of their own true talent and potential.
4. Ask for input. Great agents often begin their career with nothing more
than a burning desire to succeed. To realize their full potential, then,
top producers often rely on a mentor to help them hone their skills,
MASTERING THE GAME 241

find their talents, and guide their steps. By asking for input, superstars
grow into the agent they wish to become.
5. Display your talent. Once their masterwork has been completed and the
transaction closed, even the most elite agents find great satisfaction
and profit in displaying their success. How? By asking for testimonials
from their satisfied clients and for referrals to others who may wish to
experience their unique gifts firsthand.

A strong agent is a uniquely talented individual who brings something to

his craft that others can admire and experience for themselves. Thus, he is
in a sense an artist, one who inspires his customers and clients to continu-
ously refer their friends and neighbors to his work. Thus, a signature goes
beyond your pride of workmanship to include a statement about the style of
the work itself.
Consider Rembrandt, Hemingway, and Mozart. Each offered tremen-
dous value and quality to his craft, but in addition, the art of each was some-
thing unique—each had a signature style that made him stand out and rise
above the countless other artists of his time. Do you have a signature style—a
uniqueness that sets you apart from the rest of the real estate community in
your own market area?
When you look at the top agents in your city, town, or state, you will no
doubt discover that many of them specialize in a particular market niche.
They often play to their innate strengths by recognizing their own natural
talents and leveraging those talents by specializing in the area of real estate
that they are passionate about. In much the same way that a master pianist
may choose to play country, rock, or classical music, a top producer who is
an Internet specialist may leverage that talent by focusing on the commercial,
residential, or income area of the real estate business. This powerful signature
style is what supercharges many agents’ success and differentiates them from
the hordes of agents occupying the hypercompetitive real estate industry.
My good friends Denny and Linda Austin, a husband-and-wife team,
have made all the right moves in real estate by leveraging their own natural
talents. The couple had a background in retail store ownership and was used
to working 80-hour weeks, so putting in long hours in their new real estate
business was a breeze. Their specialization was their ability to merchandise
their listings in much the same way a retail store merchandises its products.
By using virtual tours, print marketing, targeted mailings, and a powerful
242 REAL ESTATE PRESENTATIONS THAT MAKE MILLIONS

website strategy, they were able to create over $12 million in sales during
2005.
So how can you find your own signature style? Check out these sugges-
tions to help you develop your own signature style:

Five Ways to Develop Your Own Signature Style

1. Identify your natural talents. We are all born with innate abilities and
strengths; some would call these our natural talents. We should em-
brace these natural talents as a key part of our signature style.
2. Sharpen your skills. What skills could help your business grow and take
your natural talent to the next level—communication skills, computer
skills, crisis management skills? Find out what skills could lead your
business to a higher level of fulfillment.
3. Find a path of progress. Identify your endgame, where it is you want to
be in the next 12 months, and determine what needs to happen in
order to make this dream a reality. Finding this path of progress is
essential to goal setting and building a signature style that actually
creates results.
4. Choose a niche. Your market niche should be something that absolutely
gets you fired up about selling real estate. It should excite you, animate
you, and leave you ready to jump out of bed every morning to tackle
the day.
5. Become the best. Measured only against your own true potential, ask
yourself what it will take to become your absolute best, then commit
to a plan of action to raise your standard to this level.

Your signature style is what your clients, the real estate community, and
even your fiercest competitors should think about when they hear your name.
It is your brand, your defining difference, the thing that separates you from
the pack and makes you a shining example of an agent who is one of those
chosen few who can lead instead of just follow.

L E A R N I N G O P P O R T U N I T Y

Signature selling. A strong agent is in a sense an artist, one who in-

spires her customers and clients to continuously refer their friends
MASTERING THE GAME 243

and neighbors to her. To accomplish this, top producers often have a

signature selling style that supercharges their success.

So will you become the next Picasso, Rembrandt, or Bach of the real
estate industry? As a real estate artist, you have the ability to make it happen
if you make the right choices. For superstars, one of the most important
choices is to design and use a powerful presentation, a presentation that
inspires, captivates, and motivates a client to move forward with his real
estate goals—a real estate presentation that makes millions.
This page intentionally left blank
 Index

above-the-water issues, 180 asking questions, see questions

accessories for house sale, 209 assets, brand as, 66
accountability, creating, 43 assumptive close, 151, 185–187
ACTION presentation, 142, 143–154 attention span, 82
Ask questions, 144–145 attitudes, and health, study of, 231–232
Clarify answers, 146–147 audience, for argument, 193–194
Tap into audience, 147–148 audio files, 71
Introduce solutions, 148–149 Austin, Denny, 241
Offer options, 150–151 Austin, Linda, 241
Nurture decisions, 151–153
active price range, 213–214 Baldwin, Roberta, 60, 61
actualization, 28 Bell, Alexander Graham, 159
advertising, in assumptive close, 186 below-the-water issues, 180
Aesthetic Plastic Surgery, 51 bidding war, 129
Agent Design Firm, 69 biography, in prelisting kit, 110, 115–116
agent questions, in prelisting kit, 120 Bishop, Paul, 72
agents blogs, 69, 71, 157
advice on requirements for sales, 79 blue, psychology of, 207
confidence of, 156 body language, 31, 32–33
personal sharing by, 140 Boetcher, William, 18
qualities for success, 222–231 Boettcher, Ellen, 206
selecting clients, 18, 72 Bohn, H.G., 17
virtual assistant for, 125 ‘‘bouncer,’’ in brain, 52
agriculture, impact of decline, 20–21 Bovee, Christian, 3
All State Real Estate, 160 brand presentation, 64–73
America Online, 23 equity, 65–67
animation, on website, 63 personality, 67–71
answers reputation, 71–73
clarifying, 146–147 Brand Sense, 69
to objections, 169–170 Brand-Economics, 67
anxiety, 2 branding, 73
appraisal, 127 Brooks, Fred, 21
area listings, research on, 123 brow movement, 32
argument, audience for, 193–194 building permits, 125

245
246 INDEX

business meetings, first contact, 56–57 competing for listing, 139

business model, changing, 22 response to statement, 176
business standards, confrontations with, 233 competitive market analysis, 124, 126, 127
buyers fantasy vs. reality, 133–136
attitudes, 25 value of, 130
emotional bond with home, 208 comprehensive plan of city or county, 123
information for, 211 confidentiality, 117
potential, as objection, 177–178 consumer confidence, 230–231
priorities, 6–7 content, and first impression, 56
buyer’s market, 128 control, 148
reasons to market home during, 227–228 of conversation flow, 90
in presentation, 12
Calafato, Dick, 159–161 conviction of agent, 231–234
California Association of Realtors, Internet vs. Tra- core motivation, for home ownership, 27–29
ditional Buyer Study, 59–60 costs, of taking listing, 197
camera, 145 covenants, 125
canned presentation, 93 cover letter, in prelisting kit, 109, 112–114
Carleton University, 58 Cox, Coleman, 53
cascade effect, 153 credibility
cell phones, 140 sales statistics to increase, 153
Century 21 Real Estate LLC, 183 of website, 62–63, 64
Churchill, Winston, 105 crisis addiction, avoiding, 235–237
clients Csikszentmihalyi, Mihaly, 63
agent’s selection of, 34 curb appeal, 206–207
asking about needs, 74–75 customers, see clients
avoiding crisis with, 236
dark areas of house, buyer access to, 209–210
decision-making by, 151–153
days on market (DOM), 131, 135
evaluation preparation script, 45
decision touchstone, 184, 185
facing, 190–194
decision-making, 179–196
feedback for, 75, 76
above-the-water issues, 180
interest in truth, 81
assumptive close, 151, 185–187
meeting evaluation form, 45
below-the-water issues, 180
as participants in presentation, 147
by clients, 151–153, 182–185
perceptions, 158–159
closing argument, 195
pulling from, 74
if—then close, 188–189
qualifying, 41
proactive approach, 180
response to reasoning of, 192
tipping scales, 194–195
selecting, 18, 72 DeKaser, Richard, 16
single women as, 38 DeLorenzo, Joseph, 62
strategy to attract, 18 Deluca, Rick, 134
teaching to say no, 159–161 Deming, W. Edwards, 10, 13
see also buyers; sellers details, digging for, 169
close Dewar, Thomas, 99
assumptive, 151, 185–187 differentiation of brand, 23–24, 67
trial, 170–172 difficulties, response to, 18
clothing, 53 discount brokers, 172
coconut, 39–41 disks, PowerPoint on, 83
color, psychology of, 207 DOM (days on market), 131, 135
commission Doyle, Arthur Conan, 240
objection to, 157–158, 163, 171–172, 174 dressing for success, 53
price and, 175 drip e-mail system, 237–239
commodities, 22, 23 Drucker, Peter, 39
communication due diligence, 121–127
plan for, 237–239 Dunham, Kemba J., 210
repetition in, 166–167
company history, 116 e-booklet, for prelisting kit delivery, 119
company identity, building, 65 Economist, 16
INDEX 247

edutainer, 82, 92 gut price, 128–129

efficiency, vs. effectiveness, 39 gut-o-meter, 100
ego-driven decision-making, 64
empathy, 167–169 half-hearted results, 9
eneighborhoods.com, 125 handshakes, 51
engagement questions, in presentation, 91–92 Harvard University, Joint Center for Housing Stud-
engaging the client, 73–75 ies, 15, 38, 93
equity, brand, 65–67 Hasson, Mike, 52
esteem, 28 health, attitudes and, study of, 231–232
excuses, for justifying failure, 240 Himelstein, Bruce, 239
experience-based marketing, 68 history of company, 116
eye contact, 32 home ownership, core motivation for, 27–29
home protection plan, 204
facial gestures, reading, 32 home scoring system, 201–206
facing clients, 190–194 home warranty, 210
failure, excuses for justifying, 240 homeowner association, information on, 125
failure rate for listings, 80 homes, see house; residential real estate
farm book, 124 hot buttons, 99–101
farmland, privately owned, 11 and preclosing questions, 100
FEAR (false evidence appearing real), 158–159 Houdini, Harry, 102–103
fears, moving past, 223 hourly services, 158
feedback house
for clients, 75, 76 emotional bond with, 208
on home condition, 218–220 feedback on condition, 218–220
preparation for sale, 206, 211
from potential clients, 31
housing statistics, 62
feel, felt, found method, 172
Hubbard, Gardiner, 159
fees, objection to percentage, 157–158, 163, 171–
100 percent seller solution, 80–81
172, 174
first impressions, 51–57
of house, 208 ideal client model, 18, 34–39
worksheet, 36
keys to, 52
IDEAS approach, 181–182
on telephone, 55
identity of company, building, 65
Five-Star Service Technique to decision-making,
images, quality for website, 62
180–181
income growth, and housing prices, 15
flow of website, 63, 64
International Communication Research, 183
flyer, in assumptive close, 186 Internet
follow-through, providing exceptional, 236–237 client approval for marketing on, 237
for sale by owner list, 123, 174 and first impression, 57
Forbes, Malcolm, 34 homebuyers’ use of, 58
Forer, Bertram, 31 interview on, 58–64
Forney, Kelley, 221 for prelisting kit delivery, 119
framing discussion, 148–149 interview, on Internet, 58–64
friend in business, response to statement, 173 isolating objections, 167
fulfillment, 25
fundamentals, ignoring, 4 Japan, 10
Jones, Kellie, 61
Gardner, Jeanne, 208 Jordan, Michael, 9
Generation X, 182–183 Journal of Personality and Social Psychology, 51
Generation Y, 183
gentle brutality, 79 Kennedy, Joseph, 16
gettyimages.com, 62 Kenny, Dave, 51
gift bagging, 153 Keyes Company, 108
Gladwell, Malcolm, 51 King, Andrew, 63
Glengarry Glen Ross, 142 Klugman, Jack, 185
Google, 58 Kmart, 74
green, psychology of, 207 KNOW, vs. no, 160
248 INDEX

Knox, David, 111 presentation and, 104

Korn, Brad, 71 sales statistics to increase, 153
Multiple Listing Service, 236
Landor Associates, 67 Murphy, Susan, 222
laptop computer, PowerPoint on, 83
Lemmon, Jack, 142 National Association of Realtors
Lereah, David, 15 Home Buyers and Sellers Report, 210
leverage with audience, 105 Profile of Home Buyers and Sellers study, 7, 35–
life goals, 224 36, 59, 72
Lindstrom, Martin, 69 Profile of Real Estate Markets, 2005, 14
listing appointment, 1–2 needs, creating, 19
listing presentation, importance of, 77 negative, reframing, 153
listings negativity, body language indicating, 32
competing for, 139 neighborhood walk-about, 124
cost of taking, 197 neuroeconomics, 183
failure rate for, 80 no, vs. KNOW, 160
see also salable listings nonverbal communication, 31
lockbox, in assumptive close, 186 Nordstrom’s, 68
losing face, 190–191, 194 no-showing discussion, 215
lot size, 124 notetaking, 145
Luxury Home Council, 149
objections
early minor, 161–164
major price point, 213
early minor three-step response method, 163
Mandalay Bay Casino, 67–68
first reaction to, 161
Marguleas, Anthony, 60
of sellers, 173–178
market, see real estate market
serious or restated, 165–173
market niche, specializing, 241
sidestepping, 164
market statistics, vs. personal, 234 ways to encourage, 160–161
market-driven agent, 16–19 The Odd Couple (TV), 185
marketing offer-generating price, vs. starting price, 135
expenditures on, 7 offers, response to absence of, 218–220
experience-based, 68 Olague, Dan, 109–110
targeting, 37 Omnimedia, 66
Massachusetts Institute of Technology, Affective open-ended questions, 144
Computing Research Group, 33 orange, psychology of, 207
Maxwell, William, 11 Orton, William, 159
McCutchin, Judy, 66 outside motivations, 27
McKilliop, Diane, 221 owner priced listing, 201–202
meeting evaluation form, 45
meeting with client pagers, 140
analyzing mistakes, 139 Panama Canal, 20–22
mechanics of perfect, 139–142 panic, 2
one-stage vs. two-stage appointments, 154–156 paperwork, in assumptive close, 186
outline in prelisting kit, 110, 117 Pappas, Michael, 108
outline review, 147–148 people paradox, 25
mental atrophy, 183 percentage of sale price, as fee, 157–158, 163,
Messina, Constance M., 223 171–172, 174
Messina, James J., 223 perfection, 9
Million Dollar Standard, 53 personal marketing brochure, in prelisting kit,
Moffitt, Neil, 134 109–110
Montgomery Ward, 21, 22 personal position, avoiding, 191–192
Monthly Presentation Success Chart, 42–43 personality, brand, 67–71
Moore, Dave, 166 photos
motivations camera for taking, 145
of clients, 26, 29–34 for personal brochure, 109
core vs. outside, 27–29 of seller’s home, 104, 236
INDEX 249

Picard, Rosalind, 33 promotion

planned presentation, 92 expenditures on, 7
goal of, 93 in presentation, 78, 79
Play-by-Play Evaluation, 43–45 questions for client on, 151
portfolio, building, 95–98 story about, 98
positioning homes to sell, 80 psychoneuroimmunology, 231–232
PowerPoint, 83–90, 92 pulling from customer, 74
preclosing questions, and hot buttons, 100
preinterview questionnaire, 118–119 qualifying clients, 41, 139
prelisting kit, 108–121 quality, 10
contents, 109–111 importance of, 13
limiting contents, 112 questionnaire
vs. premeeting kit, 112 preinterview, 118–119
preparation in prelisting kit, 110–111
of house for sale, 206, 211 questions
for presentation, 103 asking, 141, 144–145
presentation clarifying answers, 146–147
cake layers, 93–95 for client choices, 150–151
control in, 12 for engaging client, 91–92
impact of failures, 6 list for agent, in prelisting kit, 120
importance of, 3, 9 preclosing, 100
need for, 7 in presentation, 101
questions in, 101 in trial close, 171
presentation MAGIC, 104–108 when making first impression, 55
Motivate yourself, 104 raincityguide.com, 69
Accept limitations, 104–105 Randall, Tony, 185
Gain leverage, 105 rapport, 141–142, 144, 148
Invest time and resources, 105–106 Rattner, Donald, 38
Capitalize on strengths, 106–108 reading people, 31, 171
press clippings, in prelisting kit, 111–112 methods for, 32–34
press release, 112 real estate license, 14
price real estate market, 133
adjustments, 214–218 bias in, 127
avoiding personal position on, 191–192 dialogue about, 131
commission and, 175 informing client about, 130
decision on recommended, 133 worldwide boom, 16
and house condition, 193 real estate services, providing overview, 195–196
market vs. agent determination, 134 Real Estate Virtual Assistant Network, 125
owner-set, 201–202 Realtor Magazine, 53
in presentation, 77, 79 Realtor Magazine Online, 61
questions for client on, 150 Realtors, median and top 5% earnings, 6
setting, 128–132 reasoning of clients, response to, 192
starting vs. offer-generating, 135 recapture, 228–229
story about, 97 red, psychology of, 207
strategic, 212–214 referral generation, 224
vs. time, 198–201 rejecting client listing, 80–81
price adjustment letter, 216–217 rejection, body language indicating, 32
printed presentation, from PowerPoint, 83 relationships, professional, 48–50
privacy statement, 117 relevance, of brand, 67
problem-solver technique, 229–230 repetition, in communication, 166–167
product reputation
in presentation, 78, 79 of agent, 72
questions for client on, 150–151 brand, 71–73
story about, 97 research system, Web-based, 125
productivity, identifying components of, 41 residential real estate
professional relationships, 48–50 appreciation, 15
projected images, PowerPoint for, 83 value, 14
250 INDEX

resource investment, in presentation, 105–106 Simon, Ruth, 210

résumé, in prelisting kit, 109, 114–116 simplicity in presentation, 77
Ritz-Carlton, 239 single women, as clients, 38
Roberts, Ralph, 111 Small Business Administration, 65
Rosenburg, Sarah, 190 smell of house, 207, 208
Royal LePage, 208 smile, and telephone calling, 55
RSS (Rich Site Summary), 71 social needs, 29
soft opening, 71–72
salable listings, 197–220 solution to problem, 12
accessories, 209 sound bite, for first impression, 57
buyer access to dark areas, 209–210 Spalding, Scot, 59
condition adjustments, 218–220 Stanford University, guidelines for website credibil-
curb appeal, 206–207 ity, 62–63
home scoring system, 201–206 starting price, vs. offer-generating price, 135
home warranty, 210 statistics
incentives, 210–211 discussion of, 132
preparing for sale, 206, 211 personal, vs. market, 234
price vs. time, 198–201 Stewart, Martha, 66
strategic pricing, 212–214 stories, 96
warm environment, 207–208 strategic pricing, 212–214
sales, of new and existing homes, 7 strategy-driven agents, 18–20
salespeople, attitudes about, 161–162 success of, 17
Sanders, George, 159 strengths, 106–108
satellite photos, 62, 124 stress, 145
schools, research on, 123 subconscious selling, 94
Sears Roebuck, 21–22 success, 17
selecting clients, 18, 72 success portfolio, 95–98
self-directed IRA, 23, 24 superstar real estate agent, 3
sellers
attitudes, 25 tag line, for personal brochure, 109
objections, 173–178 talking, speed of, 55
priorities, 6–7 Talking House, in assumptive close, 187
time for answering own objections, 166 tax records, 11–12
unrealistic expectations, 191–192 history, 124
see also objections technology, for company identity enhancement, 69
seller’s market, 127–128 Tedlow, Richard, 20
reasons to market home during, 226–227 telephone
selling for first contact, 57
negative reason for, 153 making first impression on, 55
subconscious, 94 testimonials, for personal brochure, 110, 119, 122
sensitive issues, discussion of, 190–194 ‘‘thin slicing,’’ 51–52
sensory brand audit, 69 three-legged table discussion, 79
service comparison chart, 233 three-way technique, to learn core motivations, 28
service economy, 68 time
service providers, relationships, 49 investment in presentation, 105–106
SHINE qualities of agents, 222–231 vs. price, 198–201
Sell to everyone, 222–223 Time Warner, 23
Help others, 223–224 Tokyo, 10–14
Invest in change, 224–228 tone of voice, 53–54
Never fear the next step, 228–230 transportation information, 123
Exude confidence, 230–231 TREAT approach to objections, 165–173
showing instructions, in assumptive close, 187 Track, 166
show-ready condition, clients’ understanding of, Restate, 166–167
192–193 Empathize, 167–169
sidestepping objections, 164 Answer, 169–170
sign placement, in assumptive close, 186 Trial Close, 170–172
signature selling, 239, 240–243 trial close, 170–172
INDEX 251

trigger topics, identifying, 100 Wall Street Journal Online, 210

trust, 141–142, 144, 148 Wal-Mart, 73–74
and salespeople, 161–162 weboptimization.com, design tips, 63
truth, client interest in, 81 websites
design tips, 63
University of Toledo, 52 Flash presentations on, 83
USA Today, 68 flow of, 63
list in prelisting meeting packet, 119, 121
Stanford University guidelines for credibility,
valuation websites, counteracting, 105 62–63
value equation, 50 Weiss, Eric, 102–103
value of brand, 65–67 Western Union, 159
vesting strategy, 145 Whole Foods grocery stores, 68
video, in prelisting kit, 111 Willis, Patty, 69
violet, psychology of, 207 Wood, Robert F., 20–22
virtual assistant, 125
visual feast, 81–92 yellow, psychology of, 207
Vogel, Edward, 52
voice zillow.com, 105n
developing pleasing, 54 Zimmer, Debbie, 207
tone, 53–54 zoning restrictions, 125
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The Property Management Tool Kit by Mike Beirne $19.95
The Real Estate Agent’s Business Planner by Bridget McCrea $19.95
The Real Estate Agent’s Field Guide by Bridget McCrea $19.95
The Real Estate Investor’s Pocket Calculator by Michael C. Thomsett
$17.95
The Successful Landlord by Ken Roth $19.95
Who Says You Can’t Buy a Home! by David Reed $17.95
Your Successful Real Estate Career, Fifth Edition, by Kenneth W.
Edwards $18.95

Available at your local bookstore, online, or call 800-250-5308

Savings start at 40% on Bulk Orders of 5 copies or more!
Save up to 55%!
For details, contact AMACOM Special Sales
Phone: 212-903-8316. E-mail: [email protected]