How Do You Charge Higher Fees?

Great real estate agents are worth the fees they charge because they provide greater value to their customers. In my Coaching Tip today I’ll explain how to identify and solve pain points for the client, and answer the question, How do you charge higher fees?

In the new market conditions, we’re entering now, properties aren’t going to simply sell themselves. Get focused now on the mindset that it’s what you do when the marketing stops working that makes the difference in your success. It’s more important than ever that you believe in your own value first. Then you can differentiate yourself from your competition by demonstrating that value to the customer.

Your client has hired you to know what to do if there are no bidders at the auction, to advise on whether or not to take an early offer, and know when to sell based on current market circumstances. You also need to understand how to set pricing based on bargaining strength and timing.

Understanding when to sell and when to hold is one of many important skills that a lot of agents have forgotten. Now more than ever there’s a real separation of agents, and customers will see that. It’s not just about how much you sold above reserve, it’s about whether you actually sold the home and maximized the sale price.

So how do you charge higher fees? The same way the airlines do. They can offer business class and first class fares because consumers will pay for value. It’s the agents who get on the phone and follow up, who do more face-to-face time with buyers, who do more private appointments, and in general, understand how to separate and differentiate themselves that will prove they’re worth more than the competition. The key to being a great agent is all about what you do for the client and the value they see in you.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Ep 127 – Maintaining Energy and Momentum

In this High Performance Podcast for Real Estate Agents Josh Phegan and Alexander Phillips talk about maintaining energy and momentum throughout the year. Josh mentions always having something exciting out in front of you, and Alex tells how he keeps going through stages and changes by creating his opportunities. They discuss what motivates them and why that motivation is important. Josh explains the reasoning behind understanding the market so you can plan ahead for time off during slow times of the year, and Alex emphasizes working during work time.

Josh notes how ambition drives achievement, how the value of money changes with greater accomplishments, and the importance of bringing other people up with you. Alex adds that it’s about the team and the brand, and Josh ends on setting your own energy and momentum.

Understanding What the Customer Wants

Being a great agent isn’t just about selling the house. Today my Coaching Tip is all about understanding what the customer wants, because you need to alleviate the challenges the customer is facing and do the job the customer is actually trying to get done.

Let me give you an example from a recent listing presentation. In this case, I knew both the agent and the vendor. This vendor had come up with a different location and was selling the home as executor of a will.

The agent went through the listing presentation and thought he had covered everything, but the vendor hesitated to sign and asked to think about it overnight. They left the listing unresolved. The agent then rang me and said he didn’t think he won the listing.

Next, the vendor called me and offered me feedback on the exchange. He said the agent was exceptional in understanding all the steps and the processes the listing would need to go through, but did not understand the vendor and his needs.

There was no consideration by the agent that, as the executor of a will, the vendor was experiencing an emotional time in selling a loved one’s property. He was also dealing with beneficiaries who didn’t get along. This vendor really needed an agent who would take some of that pressure off, and he felt that need was not being met by this agent.

As an agent, you must shift the conversation. Determine what the customer’s needs are other than just selling their property. You do this by asking the right questions to get the information you need so you can alleviate their pain. Gain an understanding of life cycle marketing so you know which stage your customers are going through right now. Your job is fixing those specific challenges so they can sell their property with the least amount of stress. Deliver on that service and you’ll be their logical choice.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Traction Series – Part 4

Part 4 finishes our special Traction Podcast Series featuring Josh Phegan and Alexander Phillips. Alex emphasizes the necessity of market knowledge and really knowing your own marketplace completely, and tells where he gets his own market knowledge. He tells how he increases sales regardless of market conditions, and how training, experience and time improve the art of making the sale.

He describes the set up to sell meeting, following up, and maintaining communication with your vendors. Alex then explains why taking a long term view is crucial to your success in real estate.

Alex tells how he maintains a high level of energy and consistency and describes what leaving a good legacy means to him. Alex says he loves real estate and couldn’t think of anything he would find better to do.

Setting Yourself Up For 2018

You will write more fees this year than ever before if you set your intentions right from the start. That’s why I’m talking to you in my Coaching Tip today about the importance of setting yourself up for 2018 with the right mindset and the right routines from the start.

How you navigate new market conditions over the next 12 months will have a massive bearing on your ability to build a bigger business this year than last. The 3 critical numbers you’ll need to think about are the average sale price, the volume of transactions, and average fee. And it’s what you do when the market stops working that will make all the difference.

You’re going to negotiate a much better sale price if you’ve already got a strong relationship and high level of trust with the buyer. They’ll take your advice and negotiations will go smoothly if you’ve established your relevance and consistency with them.

Getting intentions right is also about deciding to make this a year of growth, not only in your personal skills, but in really getting those intentions set. And that means setting routines to start your call sessions early and then head out to get those calls to happen.

I’m not going to talk about “prospecting.” In 2018 we’re going to call it “service” because you’re going to get on the phone and call people with important information they can benefit from, like open for inspections, new listings, and market appraisals.

Remember there are holidays in the first quarter, so get active around open for inspections and lead generation. Think about the volume of listings and sales, and put on new people so you can scale. You can only do five or six open for inspections on a Saturday by yourself. Build that team that can take you to twelve.

Setting yourself up for 2018 is about setting up for success. Set your intentions, set your routines, build your team for growth and you’re going to have a phenomenal year.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Traction Series – Part 3

In Part 3 of our Traction Podcast Series Josh Phegan and Alexander Phillips continue around asking the right questions to book the appointment. Alex emphasizes understanding why you’re meeting and how to progress the customer. They discuss the build-work-convert concept and Alex explains how to build your database beginning with good buyer management and playing the long game.

He shares what he teaches his team about building a pipeline and making it convert for you. Alex then tells how to pitch to win in the listing presentation by understanding the needs of the customer.

Alex lists some of the reasons customers decide to go with him instead of his competitors, he tells why he takes notes during the listing presentation, and why cases studies are such an important part of that presentation. They continue discussion in Part 4.

The Do and Don’t Do list

There are good solid foundational principles that we follow, but some old school practices just don’t work anymore. The world has changed over the past 10 years and agents need to change with it. In my Coaching Tip this week I’m going to give you the Do and Don’t Do List for finding your best lead sources, and explain why it’s important to the way you do business.

Clearly, there are things you know work, and there are old industry standards and dogmas that don’t. Technology, and the mobile phone, in particular, have revolutionized people’s relationships, expectations, and the way we all live. So why believe that old-school cold calling and door knocking is still effective?

In his book, Bottom Line Change, Ari Weinzweig describes the Change Formula, which simply states that change begins first with dissatisfaction. Next, there’s a vision, and last is the action of taking first steps. As you start thinking about how to get in front of more customers more often, consider why people make changes in the first place.

Will you see a greater response from cold calling or door knocking people who aren’t actively looking to buy or sell? Or will you have a better chance with customers who are dissatisfied, looking for a change, and/or taking action? There are already hundreds, even thousands of people inside of your database. Why are those contacts there if you’re not going to use them?

If you’re a new agent, work inside of someone else’s team to build your social proof, meet buyers at opens, learn about the stock and pricing of your area, and build on those existing relationships inside of the firm’s database. The goal here is to use the Do and Don’t Do List to generate your best leads with those customers who clearly want a change, have a vision and are taking steps to work with you.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Simple Numbers, Big Results

When an Olympic swimmer is in front of the yellow line they’re in a position to break the world record. The same is true inside of your business, and in my Growth, Leadership, and Management Tip this month I’ll explain simple numbers, big results, and how that relates to you.

Let’s start with a “report card” for your productivity. Divide your total annual sales volume by the number of salespeople inside of your team. You’ll likely get a number around 1.5 transactions per month, per person. That may seem low, but remember that average is affected by new people who aren’t as productive yet.

Now, what if you could boost productivity to 2 transactions per person per month? Again, that may not seem like much, but it can actually represent around a 33% increase in total sales volume. What I’m doing in executive coaching is doing that report card on a rolling 12 months of what each agent is achieving. We look at average sale price, volume, fee, and annual leave days taken. Then have one-on-one conversations with each agent around their report cards and get really intentional with them about success.

For me, the most important thing you can do to drive volume, performance and productivity of your sales team is to track the number of listings each week. Just like that Olympic swimmer, you want to be a quarter of the way to your goal by a quarter of the way through the month – halfway through the month, halfway through the target – three quarters of the way through the month, three quarters of the way through the target. Simple numbers, big results that you can see and work with.

You have to be willing to have the hard conversations. Call people out on poor performance, and reward those who are highly successful. Being that brave and bold leader is the way you’ll increase the productivity of your people.

I hope you’ve enjoyed this month’s Growth, Leadership, and Management Tip, and I look forward to seeing you here again next week.

Traction Series – Part 2

This is Part 2 of our Traction Podcast Series featuring Josh Phegan and Alexander Phillips. Alex states that how you manage your diary is how you manage your life. He describes his normal Saturday of open for inspections and the importance of his team in making that happen, and emphasizes why opens are necessary.

He tells how to overcome the fear behind call reluctance, develop your phone skills, get in the rhythm of making those calls, and build your personality with confidence around interacting with consumers.

Alex notes the importance of database management, building rapport with your clients by consistently providing them with relevant information, and being on the phone or face to face with them often. Discussion continues in Part 3.

Traction Series – Part 1

This begins our Traction Podcast Series, a special edition of our High-Performance Podcast featuring Josh Phegan and Alexander Phillips. Traction is an in-depth look at top agent Alexander Phillips’ career and success. He describes how he started, how he grew the business, his prospecting fundamentals, and his year-on-year growth methodology.

Alex and his team sold over $500 million this year. In this series he and Josh will give you the basics of what it’s taken for him to become number one in Australia, starting with a definition of the job we actually do for the real estate consumer.

Alex continues around developing your identity in the marketplace, why you should start out in the market area you want to end up in, choosing a big enough market for growth, and choosing a demographic you’ll appeal to. Discussion then continues in Part 2.