Guest Blogger: Peter Richman

To wrap up the posts from earlier this week, here are Peter's final thoughts on how a "win-win" strategy is the key to closing any sale.

From Peter Richman:

Let's evaluate some numbers here:

Questions to the seller:
a. You agree the listed price should be $215K-$225K--correct? Answer - YES!
b. You also agree that the market is horrendous! Answer - YES!
c. However, you sincerely want to move? Answer - Well, if I get my price. (Sellers wife kicks husband in groin area!)

As the broker I am usually in the position where I have to talk some sense into the seller. In this instance I would say:

Knowing that your offered price , at the low end would be $215K, and you aware that there are comps lower out there, you also agree that, in your mind, even though you hope for more, you might receive an offer at 200K. While you didn't expect it and won't give it away, this offer is not far off and its from qualified purchasers. If you turn this down, you will be buying your home back for $13K-$15K. Can you honestly tell me that you could sleep at night knowing that you were not moving for $13K-$15 K in this market when you might have the opportunity to offer less on the home you wish to purchase? Also, your existing mortgage is $700/mo @ 6 months is approximately $4,500!! So now you are only $9K away! For 9K you will stay here?

At that point, the seller signs deal or the seller's wife kills her husband or the broker kills the seller, and then shoots himself!

Guest Blogger: Peter Richman

Yesterday, Peter Richman, owner of Richman Properties, said to close any sale it needs to be a win-win for both parties involved. Today he discusses what he must do as a broker when a client has a personal attachment with the home he is trying to sell.

As the broker I must:

1. Eliminate the personal touch by the seller/owner. "Mr. seller, I see and understand your blood, sweat and tears is in this home--however, the buyer will have their own touches which may go counter to yours"--does not mean you were right or wrong--once the new coat of paint is on the walls, your personal touch vanishes." What price would you pay knowing
a. the market is the worst in 50 years?
b. the comparable homes are selling for less.?

2. These buyers have perfect credit--with their credit, they can buy anywhere in this market-you should be flattered that they selected your home! Remember, every month your home is on the market, another mortgage payment is made by you. It might very well be another 6 months before a qualified purchaser walks thru the door. By then, the "newly painted, etc.," is not newly painted. Additionally, the home you wish to move into may be sold. Your asking price is $ 250K --admittedly high--you know you should have started at approx $215K.

A decent offer in a NORMAL market is 10-12% below listed price. Therefore, an offer at 200K would be in line. However, this market is the worst ever, comps are lower, purchasers know that and you know that, as well. A price of $185K-$190K for this home is certainly in line. As a matter of fact, $187K with you paying closing costs may be the best offer you may see in some time.

Check back tomorrow for final thoughts from broker Peter Richman on this particular situation.

Guest Blogger: Peter Richman - Richman Properties

Every once in a while, I thought it would be interesting to have a guest blogger in a sales role share their perspective on selling. I asked business owner and real estate broker Peter Richman "How do you effectively close a sale?"

From Peter Richman, owner of Richman Properties since 1978:

I believe that closing a sale, any sale, depends on a "win-win" strategy for each party. If the parties are sincerely interested in doing business, than one has to present the advantage to the other party to complete the sale. Ex.: The home is listed for 250K--I, the seller, remodeled this home myself, put in my blood, sweat, tears, etc., my kids were born here, etc.--the home means a lot more to me than the other home down the street.

Check back tomorrow for more on Peter's win-win strategy and what he would do in this situation as the broker.

Three Terrible Selling Habits to Break in the Second Half of 2010

Bad Habit 1: Do you let days pass, or even weeks go by without calling prospects? Break that bad habit and you’ll sell lots more.

Bad Habit 2: Are you complaining to fellow salespeople about low cost, price buyers, but never make any move to replace them? Stop wasting energy on something you can’t change. Instead, find new customers who love you, appreciate the value you bring, and will pay for it. Then, fire the cheapskates.

Bad Habit 3: Do you write long emails to customers and prospects? You’re wasting time because no one is reading these “War and Peace” communications. Aim for 50 to 75 words. Go for brevity and brilliance. Read messages out loud to catch unnecessary words and eliminate them.

Ten Selling Tips to Persuade People to Buy

Sales professionals are masters of persuasion. Persuasion is a process. It requires rapport building skills, credibility, the ability to craft a logical argument and the eloquence to present it. Persuasion is not manipulation when it is based on mutual gain and ethical selling behaviors.

Use these ten tips helps to become more persuasive and convince more buyers to say, "Yes, I'll buy.”

1. Establish credibility in the first meeting. Show buyers why they should trust and believe you.
2. Buyers are either open to new ideas or closed to them. To persuade a buyer, they must listen with an open mind. If their mind is closed, your first challenge is to open it.
3. Find common ground. By pointing out shared thinking and shared experiences, you demonstrate to the buyer you understand your point of view.
4. When the buyer talks, listen past the words for strong emotions. What does the buyer care about?
5. Ask opinion questions. We get the ammunition we need to persuade by looking below surface level facts and understand the thinking that underlies past decisions.
6. Tell stories. Stories interest prospects and customers. Design them so listeners draw the right conclusions. Stories help you persuade because buyers will always find their own conclusions more believable than any statement you can make.
7. Be likable. We are all more willing to accept the ideas of people we like.
8. Look at possible arguments from both sides. If the audience brings up a negative point, nod and say, "That's an excellent point. I considered it and . . .”
9. Provide evidence to prove benefits are real. Use testimonials, statistics and real life examples.
10. Fear stops people from taking action. Identify concerns. Alleviate risks.

Everyone Skims

Prospects and clients skim letters, emails and proposals. Get better results by creating information with this in mind.

• We pay more attention to beginnings than to endings. Put important stuff first.
• A highlighter is your friend. Use it to emphasize key points.
• Use bullets.
• Recap and summarize.
• Use color.
• Bold type emphasizes.
• Underline.
• Change fonts.
• Italicize.
• Use diagrams.
• Write for clarity. If you confuse buyers, you lose them.
• Use short sentences—8 to 15 words. Make points quickly because short sell.
• Needless repetition bores readers. Avoid echoing thoughts and over-explaining.

The first step to making a new sale is getting the buyer’s attention. Consciously designing information so important points jump off the page increases your odds of success.

Eight Tips to Get More Meetings with Prospects

In today's crazy busy world, “to-do” lists never seem to shrink. Sure, buyers are crazy busy, but he will still talk to you if you anticipate obstacles and plan to overcome them by using these ten tips.

1. When you explain why you're calling, do it quickly. You only have 30 seconds before the buyer will lose patience and interest and start to tune you out.


2. Shed unnecessary details. Leave out the boring stuff. Tell buyers the benefits of the phone. Don't explain how the phone is manufactured.


3. Tell the buyer about a SIGNIFICANT benefit. The buyer is busy. If you're not there to talk about something important, they have better things to do.


4. Increase the urgency factor. Why should the buyer meet with you now?


5. What do buyers complain about? Complaints indicate pain and buyers talk to you if you can stop pain.


6. We all want to buy from people we like. How can you sound more likable?


7. Sound professional. That means you’re prepared and you’re direct. Know exactly what you want to say. Eliminate fluff and don’t ramble.


8. Don’t tell prospects you know what their problem is. It’s patronizing—and annoying! Instead, outline the problem you solve and ask the buyer if it’s a concern. If they say, “No,” be prepared to respond or opportunity will die a quick death.