New Construction Sales Training - Networking and the Art of Developing a Referral Network by Saying "Yes" to Business Opportunities

In new home sales, I often see sales associates who have a myopic focus on their builder's inventory and often do not see business opportunities when they present themselves - particularly when they act only as the on-site builder sales representative. Too often, we focus only on immediacy (ie. buy now) aspect of a sales call and not on the opportunity to cultivate long-term leads, seek referrals, or develop our referral network.

For example, an on-site sales representative receives a call for a rental or a single family home or some other housing product that they don't offer or have available. Instead of viewing this telephone call or interaction as a business opportunity, they simply dismiss the caller with an answer like "sorry we don't have any rentals" or "we only have condos and lofts for sale."
If the call stops with a simple "I can't help you" type statement, the on-site sales representative has missed multiple opportunities to capitalize on this contact. Here is my suggested plan of action:

Step 1 - Engage in Conversation: The first step requires you to engage the prospect in conversation. In doing so, you have an opportunity to "peel the onion" (ie. remove the layers) to see if the person has considered or is interested in purchasing the product that you offer. The simple fact is that some renters haven't considered purchasing, don't understand the costs and benefits of owning versus renting, or wrongfully believe that they can't or won't qualify for a loan to purchase a property. Step 1 is equal parts of qualifying the prospect and educating the prospect.

Step 2 - Provide Information: The second step is to provide the prospect with additional information to assist them with their search. In some cases, this could be as simple as directing them to the local multiple listing service or other website portal to search for properties. It can also entail providing them with information on local neighborhoods, schools, businesses, etc. Even if the prospect is not going to purchase a home from you now, you have added value and have acted as a valuable resource. With periodic contact, you may be able to cultivate the prospect as a long-term lead. In the alternative, you are enhancing your stature as a trusted advisor and have laid the groundwork to ask for referrals from the prospect's friends and family.

Step 3 - Make a Referral: The third step is to refer the prospect to another real estate professional who handles the types of properties of interest to the prospect. By doing so, you have provided assistance to the prospect. More importantly, you have created a referral relationship with another real estate professional. By creating a referral relationship, you now have created a bridge with that agent and that agent's office.

Instead of saying "no" to business opportunities, it is a better approach to recognize the business opportunity and say "yes."

• Yes, I will try to educate the prospect on the benefits of home ownership and will make a sales presentation.
• Yes, I will provide assistance to the prospect, cultivate the prospect as a long-term lead, and ask for referrals.
• Yes, I will develop a network of real estate professionals to whom I refer prospects that I am unable to assist.

With one call, you have at least three opportunities to sell, seek referrals or develop a referral network. In 2009, say "yes" to each and evey business opportunity.

PREA Signature Realty is a full service brokerage and consulting firm in Saint Louis, Missouri, providing sales management services to real estate developers and owners. For more information on our sales management and coaching/training services, please contact Ryan Shaughnessy at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.

New Home Sales Training - 10 Resolutions for Better Customer Service in 2009

At PREA Signature Realty, we are licensed Realtors and are bound by the Code of Ethics and Standards of Practice adopted by the National Association of Realtors as well as the regulations of the Missouri Real Estate Commission. We also provide our agents with extensive training on new home sales, including customer service. However, new sales representatives are not all created equally. In Missouri, sales representatives employed by a developer do not necessarily have to be licensed and not all new home sales representatives are licensed or have received any ethics training. Whether or not you are a licensed real estate agent or a member of the National Association of Realtors, it remains a good idea to adopt the Ten Golden Rules set forth below:

Rule 1 - Always follow the Golden Rule. Treat your prospects in the same manner that you would want to be treated. Remember a good customer service experience and provide the same prompt and knowledgeable service to your customer.

Rule 2 - Always introduce yourself and the project to prospects. When working with a prospect or speaking on the telephone, promptly acknowledge the presence of a new prospect. If a licensed real estate agent represents the prospect or customer, honor the agency agreement by directing communications to and through the real estate agent. Keep the real estate agent informed. When you do so, they can assist in addressing and resolving issues and managing customer expectations. An outside real estate agent should never receive the cold "surprise" call from their client (and your customer).

Rule 3 - Schedule appointments and property showings as promptly as possible. Call if you're delayed for a showing. Before you cancel a showing appointment, contact the sales manager to attempt to coordinate coverage before canceling. In a competitive market, buyers and their real estate agents don't wait. If they don't receive prompt service, they generally may and will move on to the next development or the next builder.

Rule 4 - Preview the units before you show the units. Report any adverse conditions (including safety or cleanliness issues) to the sales manager or other person responsible for such items. Conditions that present a danger of property damage or personal injury should be addressed immediately.

Rule 5 - Present a professional appearance at all times, dress appropriately and maintain a clean work space in the display units. No smoking, eating, or drinking in front of prospects.

Rule 6 - Be organized and prepared. Anticipate questions and objections. Prepare standardized answers. Know the product.

Rule 7 - Respond promptly to inquiries and requests for information. If you don't know the answer, contact the sales manager, transaction coordinator, or project leader for the answer. Always follow up promptly with the prospect. The prospect would rather receive prompt follow-up to an unknown question than to receive inaccurate or incorrect information. Instead of saying what the prospect or customer wants to hear, provide the prospect or customer with the correct information.

Rule 8- Stay positive. Never criticize the property, developer or competitor in front of a prospect. Focus on solutions to challenges, not on the problems. In today's market, there is no such thing as that "isn't my job" or that "isn't my responsibility." The customer doesn't care who is responsible - the customer just wants the job to be done and done well. As a new home sales representative, you are the frontline and direct contact for the prospect and customer. They are your customer, not just the builder's customer.

Rule 9- Communicate clearly. Promise only what you can deliver or, better, under promise and over deliver. You can follow what others do and be average. Or, you can exceed expectations and secure a customer for life. Technology is changing so you need to match the style of your communication to the communication style of the customer. When you are addressing an issue, memorialize conversations in writing - email or otherwise. Don't assume that simply because you sent an e-mail that it will be read or understood. If you want customers for life, you need to pick up the phone and explain or provide guidance and assistance on the topic. E-mail provides anonymous, confrontation-free forum and are great for documenting or clarifying an issue. However, if you want a customer for life, you need to speak and connect with them.

Rule 10- Work as a team. Whether an outside real estate agent is involved or not, it is best to focus on what is important to the customer. It does no good to point blame or to simply wash your hands of an issue simply because it may fall within someone else's primary duties. Don't simply delegate. Rather, you must be willing to fully participate in each step of the sales process. Although you represent the owner, developer or builder, your responsibilities include facilitating the sales transaction to provide your customer with the best possible experience and a smooth, stress-free closing.

These ten rules are intended to address the most common areas of dissatisfaction identified by purchasers of new homes as identified in response to recent J.D. Power Builder Customer Satisfaction Surveys. These surveys consistently show that one of the leading factors driving overall customer satisfaction is customer service. Remember, these rules represent minimum or expected customer service standards. If you want to be the best, you need to be willing to go above and beyond the service levels provided by other new home sales representatives.

For all of those real estate professionals who sell new homes, I wish you season's greetings and a prosperous 2009.

PREA SIGNATURE REALTY is a full service brokerage and consulting firm located in Saint Louis, Missouri. If you are interested in our sales training, sales management, and other consulting services, please contact Ryan Shaughnessy at 314.971.4381 or Michelle Silies at 314.397.3182.

Developing a Blueprint for Sucess in 2009

With the start of a new year, we earnestly make resolutions to improve our personal and professional lives over the next 12 months. For those few precious days or weeks, we zealously pursue these resolutions. However, after the holidays are over, the hectic pace of everyday life begins. With each passing day, we seem to lose our ardor and the intensity of our commitment to pursuing our new goals. By mid to late January, we are deeply entrenched in the grind of our everyday lives. The resolutions that we so ardently made are relegated to the back of a junk drawer and are forgotten. So this year, instead of simply making resolutions, I developed a plan that I intend to use as my blueprint for success in 2009:

Step 1 - Embrace Change: Before I set my goals for 2009, I made a list of five daily affirmations. The affirmations focus on my ability to effect change in my daily life. It included such affirmations as:

• I can and will take control my daily life.
• I can and will effectuate change in my daily life.
• I acknowledge that there are things in my daily life that I will not be able to control or change.
• I will strive for progress, not perfection, in reaching my goals.
• I understand that it is insane to continue with the same activities and expect different results.

These affirmations are simple reminders that no plan is perfect. In real life, our goals and plans to reach them must be fluid and must change with our personal circumstances. We cannot and won't be able to change everything. I also used the affirmations to refocus my thoughts. Instead of thinking in absolute terms such "I will always..." or "I will never...", I set my resolutions and personal goals with the simple recognition that I am committed to making progress towards these goals. Whether it is a weight loss goal or a sales goal, I recognize that I am looking for gradual and steady progress or change, not immediate perfection.

Step 2 - Take Personal Inventory of Core Values: After I finished writing my five daily affirmations, I then took a personal inventory of my core values. By the term "core values", I mean those unifying principles and beliefs that guide my conduct and bring me personal satisfaction. I then wrote down ten core values. After making the list, I then asked why these values were important to me. Often, a value such as income or job security was really a subset of a deeper and more concise value like providing for my family. As I reviewed the list, I then narrowed my core values to a list of five items. While making this list, I noticed that my daily actions and my core values were not always consistent. For example, working long hours did not match my strong commitment to family. By reducing my core values to writing, I intend to use the list as a reminder of what is and isn't important to me. When you take the time to think through your fundamental values, and then commit yourself to living your life consistent with them, you feel a surge of mental strength and well-being. You feel stronger and more capable. You feel more centered in the universe and more competent of accomplishing the goals you set for yourself.

Step 3 - Create Visionary Statements with Long-Term Goals: Woody Allen once was asked "How can you make God laugh?" He responded "Tell God your future plans." Although I don't remember the context in which the line was uttered, I do remember what it meant to me. To me, it is important to set visionary goals. These visionary statements are lofty goals. When they are first made, they can and should appear to be impractical, unrealistic or even impossible to attain. I wrote out five personal and five professional goals. Even reading them now make me laugh. For example, I spent twenty years adding to my waistline. One of my visionary statements is to return to my college weight. It is a visionary statement because I am trying to undo in one year that which took me twenty years to build up.

Step 4 - Break Visionary Statements into a Series of Milestone Goals: After re-reading my affirmations, I realize that I will not be able to make permanent changes or achieve the goals in my visionary statements overnight or even in a matter of weeks. When I look at the goals, they can seem overwhelming. However, for each long-term goal in each visionary statement, I set a series of milestone goals with one new goal to be met each month. For example, for weight loss, I set a series of progress and related goals: January - elimination of fast food in-take; February - start regular fitness program; March - reduce carbohydrate in-take; April - start regular running program; etc.

Step 5 - Announce Your Milestone Goals to Your Partner: It is difficult to make life-altering changes unless you have the support and encouragement of colleagues, friends and family. For each goal, I selected a partner to act as my mentor, coach and/or sounding board for change. Too often, we don't share our goals. Instead, we attempt to pursue our goals in isolation. When we commit to a goal, write the goal down, and announce the goal to others, it strengthens our commitment to reach the goal. With the support and encouragement of others, we are more likely to accept short term set backs in pursuit of our long-term goals.

Step 6 - Track Your Success: It is much easier to achieve a goal when you have a sense of personal satisfaction. When you pursue a goal, develop a plan and monitor progress toward achieving the goal, you generate a feeling of success within yourself when each small step in the plan is accomplished. You tend to feel more in control and more motivated to proceed with the next step to reach the lofty goal. When you track your progress and generate the feeling of success, it becomes easy to do the "hard" or "necessary" things. When you clear the first few hurdles, you then develop a psychological momentum that enables you to address and handle adversity that would otherwise be setbacks to achieving your goal. If you need software to track your goals, consider using free software available at mylifeorganized.com to create your plan and to track the tasks necessary to meet your goals.

Step 7 - Take Action: After you have set your goals, take action. Each day review your milestone goals and your long-term goal and take some small step to reach the goal today.
If you have made resolutions for 2009, post a comment as to what your resolution was and how you are planning to reach the goal. There is nothing like peer pressure to meet your goals. Good luck in 2009.

PREA SIGNATURE REALTY is a full service brokerage and consulting firm located in Saint Louis, Missouri. If you are interested in our sales training, sales management, and other consulting services, please contact Ryan Shaughnessy at 314.971.4381 or Michelle Silies at 314.397.3182.