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Lead generation and commission negotiation skills are the hot topics of the summer for most agents right now. While I love a good lead brainstorming session, unless you have a solid plan for nurturing the leads you capture, you’ll struggle to see a return on investment from your prospecting efforts.
With our August deadline to implement new post-settlement policies and procedures for working with buyers and consulting with sellers approaching, it’s important to create workflows around onboarding new customers so you can ensure your bases are covered, And customers can move forward with confidence.
Smart agents know that a thorough consultation with a prospect is the glue that keeps the deal going and creates meaningful referral relationships for the future.
I’ll cover the anatomy of a well-organized consultation, helpful tools to help you stay organized, and the secrets to letting your clients know that you’re their number one advocate, not a caricature of a salesperson just trying to sell. .
Start at the Top: Take Control of the Game
Your prospects and customers are very busy, and so are you. Setting expectations about the length and purpose of the consultation is a great way to send the message that your client is working with a professional who has systems in place, rather than someone who is just trying to get them to commit over the phone. Strange caller collaboration on something.
example:
Hi Susan! I’m happy to discuss 123 Main Street with you online.
When can we schedule a time for a quick consultation on your goals so I can best help you. It is very important to me that I make time for each potential client to build a profile for them and listen to their needs.
I have a time slot for June 10th at 4:30 pm, is it useful? If not, please let me know a date and time that works for you!
Next, you will need a profile or contact form; I use written and digital forms that work with your CRM and contain basic questions to help you prepare for your consultation.
A consultation usually lasts about 30 minutes to an hour.
Suggested tools:
- customer relationship management
- Google Sheets
- Note cards (preprinted materials for live meetings)
- Sales Mail/Bomb Bomb
- file signature
- skyrocketing
These are my essential tools for organizing notes, gathering data, and ensuring my clients get the information they need to hear. These tools also aid in documentation. Remember, text messages and emails don’t always get the message across.
Key elements identified:
- Best way to contact customers: (phone, address, email, SMS, social media)
- Hours when the client is available: (Do they work nights? When is the child’s nap time? What is their work schedule?)
- Who is their financial advisor or lender?
- When do they want to move?
- Would they consider themselves a real estate newbie or a seasoned professional?
- Do they need any adjustments to make the process easier as you work together? (No tech/low tech, paper documents, Zoom calls vs. face-to-face, accessibility issues, etc.)
Eyes: show transparency
The next part of the consultation is largely about disclosure and transparency. This is where you can provide some education about general current market conditions, institutional disclosures, and required representation agreements in your specific area of interest. This is also a great place to give them a way to research you as an agent, get contact information, and schedule a time to meet with you.
You can do this in several ways:
- Include all your contact information and business hours on emails and business cards.
- With a dedicated business phone, they can send text messages at any time asking questions and specify a time frame for answering those questions.
- Showcase your personal website, which should include third-party reviews, your resume, and links to examples of properties you specialize in.
- Provide a library of videos and articles you’ve created that they can watch or review at any time to get more information or find answers to common questions.
Ears: What they need to hear
Here’s what your prospects and customers need to hear:
- You’re not too busy for them
- You understand their budget and goals
- Do you know what their bottom line numbers are?
Ultimately, there needs to be in-depth conversations with consumers about the actual costs involved in the transaction. Become an expert on netlists (hint: your title company friends should be happy to assist) and use netlists as examples.
Net sheet sample
| jones quote | smith quote | |
|---|---|---|
| family price | 275,000.00 | 310,000.00 |
| burden | ||
| first mortgage | 202,000.00 | 202,000.00 |
| second mortgage | 5,000.00 | 5,000.00 |
| Total encumbrances | 207,000.00 | 207,000.00 |
| Estimated cost of sales | ||
| Title insurance policy (based on house price) | 1,375.00 | 1,550.00 |
| title agency fees | 250.00 | 250.00 |
| payment processing | 75.00 | 75.00 |
| Title document fee | company. | company. |
| Retransfer freight | company. | company. |
| County filing fee | company. | company. |
| final assessment | company. | company. |
| property tax | 800.00 | 800.00 |
| Miscellaneous expenses | ||
| Management fee transfer fee | 0.00 | 0.00 |
| Home warranty | 0.00 | 500.00 |
| Repairs are paid by the seller | 0.00 | 6,000.00 |
| Termite/Pest Inspection | 50.00 | not applicable |
| Flood proof (common in some areas) | not applicable | not applicable |
| Buyer’s Closing Costs (Seller Assumptions) | 5,500.00 | 5,000.00 |
| seller agent commission | 8,250.00 | 9,300.00 |
| buyer agent commission | 8,250.00 | 9,300.00 |
| total cost of sales | 24,550.00 | 32,775.00 |
| Total encumbrances | 207,000.00 | 207,000.00 |
| Seller’s approximate profit | $43,450 | $70,225 |
Provided by BankRate.com
Tip: Your local or state association may also have a template you can use.
Forget high-pressure commission negotiation tactics. If you have net sheet examples of different commission structures for your clients to choose from, you give your clients the best opportunity to fully understand all aspects of commissions.
Explain to your customers that what they see in the news is why you provide them with options and examples. The changes come as a result of the need for greater transparency into how finances work in real estate transactions.
True collaboration on both sides of the table happens when all parties have confidence in the expected outcome and understand each person’s role.
Shoulders: What’s weighing on them?
Once you’ve created their profile and uploaded all your prospecting notes, take a hard look at why they want to move.
- What prompted this move?
- What are some things you worry about during this process?
- What excites you about the process?
- Have you ever had a previous experience in real estate where you felt uncomfortable or didn’t understand?
- What is the one thing you absolutely cannot negotiate in this deal?
- Wish List vs Need List: This is especially important if there are multiple people involved in the transaction. Make sure the needs of all parties are considered.
Heart: Building the ability to withstand challenges in trading
After understanding their pain points, it’s important to understand in detail how contracts and quotes work and the milestones in a transaction.
I use a simple diagram to show the life cycle of offers and deals, and what they need to know about the closing process. Breaking the process into three parts (quote, deal, close) helps them understand where they are and what happens next.
Before writing or preparing an offer, we quickly go through mock contract scenarios to answer any burning questions and obtain clarification so that we can act quickly once a property is secured.
- Viewing/Discounts: How to move forward in the best possible way
- Valid contract: Accidents, revelations, inspections and repairs
- Finish: What their financial obligations are, when to review contracts, how to prepare for a smooth move and transition into the new space.
Knees: Building Resilience in Trade
Setting the expectation that timelines will have different rhythms—times when we need to move fast and times when we need to slow down—will help your clients understand the flexibility they need to navigate this market.
My best advice is to always plan for more time than you think you will need. Many times trading is rushed; this sense of urgency is often unnecessary and can create additional stress or complications in the transaction.
Asking all parties for patience may be the easiest way to avoid pitfalls and roadblocks, as with extra time to prepare (if allowed) you can often avoid unpleasant surprises and ill-advised decisions.
Feet: down to earth and lay a solid foundation
At the end of every consultation, thank the prospect or client for their time, let them know you will use the information you gathered to help them achieve their goals, and help them stay in the driver’s seat throughout the transaction.
This is also a good time to encourage teamwork among all participants. By working together, being willing to compromise, and being prepared to accept new ideas and opportunities they may not have thought of, there may be more open doors for them to explore.
This last step shows that you are their best advocate. It shows that you are not only pre-committed to their experience, but understand the impact the process will have on their future.
final thoughts
Thinking about how to craft your ideal consultation will allow you to have more meaningful conversations with your prospects on the front end of the deal. Many in our industry are in such a panic that they are not getting paid, and they are ignoring the fact that consumers want to work with calm, trustworthy professionals who have a plan, not with people who are trying to manipulate them. People cooperate.
All in all, we must bring the human touch back into the sales process or we will never close this growing gap because consumers fear agents are overpaid or not valuable. Create a safe place in your business where consumers can log in, listen, watch, and want to grow.
Slow down and remember that the person on the other side of the table is not a commission to be earned, but a person who is looking for a home. There’s plenty of room to conduct good business all the way.
Rachael Hite is a former broker, business development professional, fair housing advocate, copy editor, and currently perfecting her long-term game of selling forever homes at a retirement continuing care community in Northern Virginia. You can chat with her about life, marketing, and business on Instagram.
