Eight Points On Closing Effectively
Two weeks ago in Washington D.C. we had the first of what we hope to be many Production Retreat East. Some of you were probably in attendance. We had a great group 600 participants at our first East Coast Production Retreat and it was interesting because one of the questions that came up several times to me (in a small event, when you have 600 people we can do a lot of Q&A that we can’t do a lot of at our big retreats), the question was, “How would I become a little more effective at closing to get a signature after I make a listing presentation or work with a buyer?” I wrote down eight points that I want you to strongly consider. Closing, or in essence, getting them to sign a contract whether it’s buyer or seller.
1. Setting Great Appointments
Remember, a great appointment which is, of course, what you and I are always trying to accomplish is when the prospect that you’re talking to needs the services you have to offer and they can see that your services can help them achieve the goals they’ve set.
A great appointment is when you have a person that is a motivated and qualified buyer or seller that actually has a big need for the services you have to offer and they can see that your services are going to help them whether it be buy a home or sell a home and they can see that very clearly and very plain. This makes the close quite simple. The challenge is when you have an unmotivated, unqualified buyer or seller and you make your listing presentation, you show them 3 or 4 homes and you’re in that awkward moment of “how do I get them to sign a contract?” It’s very challenging.
The key to this whole process of closing is to make sure the people you’re talking to have a need for what you do, and we do that through the prequalifying process.
2. Attitude and Enthusiasm
Being a good closer is more about the attitude you have, the enthusiasm that you show and the confidence and belief than it is about using strong words or some type of thought intimidating them to sign a contract.
If you believe that people buy because of the quality of what you say, which I think most of you understand, if you believe that the energy and enthusiasm you bring to a presentation always affects their need or their ability to get involved with you quicker. If you believe that, then you can see why attitude, enthusiasm, the confidence you display and the belief you have are critical to the process.
3. Don’t Be Afraid to Be Direct
You don’t have to be too hard or difficult. I’ve listened to everyone I can find on how to sell. I’ve read thousands of books, I’ve listened to thousands of cassette tapes, CDs/DVDs on this whole concept of selling and, of course, one part of selling is always the process of closing to get a signature completed. It’s interesting how often the speaker/trainer/coach, I’m not exactly sure why they do this, they make the process of getting a signature very complicated. It’s not. Remember, if you’re fulfilling the need of the buyer or seller in what you say in your presentation the close is very direct and to the point.
4. Would You Sign the Contract, Please?
Saying, “Would you sign the contract, please?” It’s not complicated. It’s not sophisticated, it’s certainly what they understand.
I remember going to seminars years ago where they would say never say to a buyer or seller, “would you sign the contract, please?” I asked, “Well, if I’m not going to say that what would I say to a seller or buyer after the presentation when I want to get a signature on the contract?”
They would say things like, “would you approve the earnest money?” Okay, what’s the earnest money? That’s the contract a buyer signs. That’s a sophisticated term for a purchase agreement or contract a buyer would use.
Well I don’t understand, because we buy things all the time. It’s called human nature. We sign contracts all the time. It’s human nature! We understand the word “sign,” give us a signature. We understand we’re in contract, why would we complicate it. What I want you to start saying to yourself 50 times a day always with a smile, “would you sign the contract, please?” You have to practice because like any other script, it’s easy to get a little nervous, get a little hesitant, and possibly lose some of your confidence at the end because you haven’t practiced that simple script.
5. A Natural Ending
Closing is really technically a natural ending to a good presentation. If I make a great presentation to the buyer or seller, they anticipate, they expect, they want to be closed.
They’re not going to sit with you on a listing presentation for 15-20-30 minutes if they didn’t have the desire to do something if the circumstances we present are proper. They would find a way to excuse you or themselves, bring it to an end. The truth is if the buyer is willing to look at the number of homes you’re willing to show, they’re qualified, they’re motivated, then the close is nothing more than a natural ending.
Example: You’re in a nice restaurant, it’s not uncommon the waiter towards the end of the service of the meal will say, “Would you like a cup of coffee or tea?” They will often bring a dessert menu and say, “Would you like some dessert to end your evening?” It’s a natural ending. What I want you to think about is the close is a natural ending, like a coffee or dessert. The waiter doesn’t come up and say, “Well, you know, I’m trying to make this easy for you, do you, well, would you consider” – No, they just say, “would you like coffee and would you like dessert?” It’s a natural ending – “would you sign the contract, please?”
6. Let Them Answer
Doug Edwards, the famous real estate trainer, had a great line. I don’t know if you ever heard J. Douglas Edwards speak, but I thought he was one of the more dynamic speakers we ever experienced in the sales field, and he had a loud booming voice. He would stand up before a wonderful audience and tell them, “listen carefully, whenever you ask a closing question” – then he would scream, “SHUT UP until they answer.” When you and I ask a closing question, don’t speak again until the prospect does. Often, we want to jump in.
“Would you sign the contract, please, but I know if you don’t need to buy this house we have others to show you. I know that you’re probably going to compare companies, compare me to someone else.” Well maybe possibly sometimes we create the objection, we create the question they’re going to ask before they have a chance to ask it or give us an objection or maybe after the presentation when you say would you sign the contract please maybe they’re planning on signing the contract. Whoa, wouldn’t that be great?
7. Follow the Scripts
If you follow the listing presentation process we offer verbatim, and you’re sitting in front of a prequalified, motivated seller (which we assume you are), the close is simple.
When you haven’t prequalified them and you don’t know the motivation, the close becomes not only complicated but very difficult. If you’ve seen me speak in our audience I’ll often say out loud, “would you sing the contract please,” and then I’ll say how many of you felt chest pain or palpitations? How many had the nervous twitches? How many got sweaty palms? It’s not complicated if you’ve done your job right.
8. Start with the Right Mindset
Always assume they’re going to sign your contract at the end of your presentation.
I start with that confidence, remember attitude, enthusiasm, confidence, belief. I’m starting this today with you assuming you’re going to take and do what I suggest. That’s why we’ve had millions of people, like yourself, watching this over the years. You make this assumption by following your scripts, nodding and smiling, staying on track and asking a lot of questions.
A great presentation is when I’m talking to a person who has a desire to do something. When I talk to a person that’s motivated and qualified to do something. A great presentation is when I have a script I follow. Smiling and nodding and asking a lot of questions.
Production Retreat West
I want to share two things very quickly. The one thing I rarely do is any sort of commercial when I do these broadcasts for you. But I want to mention that our Production Retreat is approaching. This is one of our trendsetting events we do every year, and it’s coming up in January in Las Vegas at Caesars Palace. We would like all of you to be there. Call our office find out the dates find out the sign up time. If you are a coaching client, of course, you come at a greatly reduced cost. If you’re part of our EMG program, you get a reduced cost. The Production Retreat in January, very, very simple.
Dealing with a declining market
How do we take more listings that get sales signs or sold signs in the front yard? How do we get price reductions done effectively? Then the second day and a half, how do we work with buyers? How do we find and prequalify buyers? How do we have a showing process that gets them to buy the first time you show them property? So, for the first time in a long time, a day and a half working buyers. As the market declines or dips (as we’re experiencing now), buyers become important to us.
Meet the Millionaires
We have over 100 clients that earned in excess of a million dollars in commissions in 2018. These are not people that are selling expensive, high-priced homes. These are regular agents, selling regular homes. They just do it in high volume. It’s rarely done with a big team. These are real estate salespeople, like yourself, who are earning in excess of a million dollars a year.
We’re going to have 100 of them at the event, and during the course of over three days, I’ll have at least 50 of them up on the stage in groups of five or six and ask them one simple question: “What is the most important thing you do to be productive?” So, you’re going to get in addition to the material I present, 50 to 60 really great, very direct sales tips, techniques and skills from some of the best real estate people in the history of our industry come to the Production Retreat in January.
We have two months to finish strong, I want you to finish strong. Have a great week, talk to you next week, and thanks for today.
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Mike Ferry is the global leader in real estate coaching and training. Watch Mike each week as he discusses a variety of topics to help real estate agents and brokers. Grow your real estate business by improving your mindset, developing your skills and creating a plan of action to increase your production!
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