“What We Have Here Is a Failure to Communicate”

May 31, 2011 at 9:46 pm 2 comments

For all of my readers who are old movie buffs, you will recognize this line from the Warner Brothers classic movie, Cool Hand Luke (1967), starring Paul Newman.  (For those of you who aren’t classic movie buffs, here is a link where you can watch the trailer: http://www.imdb.com/video/screenplay/vi3936093721/ ).  But basically, it is about a man, sent to prison, who just refuses to conform despite the punishments those in charge inflict upon him.

Recently, I have been thinking about the way On-site Agents attempt to communicate with our General Real Estate friends, and this line just keeps popping into my head, “What we have here is a failure to communicate.”  Except with us, it is almost the opposite scenario as in the movie.  We have all conformed to basically the same script over and over again and it just isn’t working, but we keep doing it anyway.

Let me set the scene for you.  On-site agent, doing what their manager has instructed them to do, reaches out to a Broker’s office and asks if they can speak at the next office sales meeting.  Once there, the presentation goes something like this:  “Hi, my name is Suzy On-site, and I work for Bodacious Builders in Shady Acres. Thanks so much for having me here today.  I want to invite you out to our community, where we build homes from 1400 to 3000 sf, priced from the $150’s.  We have a community pool and park, and are conveniently located…Oh, and did I mention, we are paying an additional $1% Bonus to all our Referring Realtors® for anything that can close by July 31st.  I have packets up front for you, and now I’d like to collect your cards because we are going to have a drawing for a $50 gas card.”  (at which point Suzy passes a basket or a fish bowl to collect the cards)…”and the winner is…Rhonda Realtor®, congratulations Rhonda…”

Right!?  This is pretty darn close to what we say, isn’t it?  What’s wrong with that, you ask?  Well, the challenge isn’t so much what you said, it is what was heard.  Because we are all saying the same things, the General Agent’s hear the same thing, which is something like, “Blah blah, blah, blah, a builder’s rep is talking, what builder was it? Oh yeah, Bodacious Builder.  I don’t even know where Shady Acres is…huh, what, an extra $1%?, oh well, not working with anyone who would want to live way out there anyway…oh wait they are doing a drawing, did I bring a card with me?, I sure could use that gas card…”.

You see, the only things they heard was, WIIFM (what’s in it for me?) —which is the way most of us listen. So, what can you say to really make an impact?  I am glad you asked, why don’t we start by helping them with a problem they are currently having?  In other words, let’s show them the BENEFITS rather than just listing the FEATURES.

Here is an example of a better script for you to use:

“Hi, I am Suzy On-site with Bodacious Builders at Shady Acres.  Let me ask you a question, who is working with a buyer who has been burned at least one time in the short sale process?  Wow, that many of you?  Did you know that the average cancellation rate in New Home Sales is less than 10% right now?  Compare that with the average cancellation rate in general Real Estate, which is running around 35% because of all the fall-out from short sales and REO’s .  Wouldn’t you and your buyer appreciate knowing that once they have fallen in love with a home, it will close and they will be able to live there an enjoy it with their family without any last minute surprises?  I would be delighted to work in partnership with you to make that happen.  We have everything from 1400—3000 sf, so I am sure we can find a plan that will work for you buyers.”  Then, proceed to the drawing & commission announcement…

OR, how about this one?

“Hi, I am Suzy On-site with Bodacious Builders at Shady Acres.  By show of hands, who is working with a buyer who needs a home office (_________________) fill in the blank with whatever your featured home has to offer (just pick one home)?  Fantastic.  How many of those buyers are also concerned about the cost of ownership with utilities, etc. in their next home?  Right!? Most understandable.  Let me show you our featured home this month.  It is called the Key West Model and has this incredible, oversized, home-office/den/work-out room/hobby room—really, whatever extra space your buyer needs this room to be, it is large enough to accommodate and with it being off-set from the main part of the home, they won’t have to worry about privacy or if it gets a bit messy from time to time.  Don’t you agree that is a great benefit for your buyers? (Pause for head nodding).

Now, let’s discuss the H.E.R.S. rating on all our homes at Bodacious Builders.  Since we are Energy Star™ and Green Certified, you can count on greatly reduced utility bills and keeping that cost of ownership much lower than a home built just 5 short years ago.  I will be right over here after your meeting, so please see me and let’s put our heads together to figure out how we can make this work for your buyers.”  Then proceed to drawing and commission announcement…

This works with any feature you can turn into a benefit.  Closing cost contributions, buyer incentives, any plan…you name it.  Your homes, your community, and you have a unique story to tell so why not make your presentation unique? So, let’s take a page from the movie script and be just as determined as Cool Hand Luke.  If you do, I just bet those same Realtors® who have ignored you for years, will start to say, “WHAT WE HAVE HERE IS SOME SUCCESSFUL COMMUNICATION!”

Kimberly Mackey, MCSP, CMP, Realtor®, is the founder of Creative Sales Solutions, and has been called a rising star in the Homebuilder’s World for her reputation as someone with real world SOLUTIONS in a competitive and rapidly changing sales environment–SOLUTIONS like “50 Sales per Year before Any Walk-in Traffic”. She is a published author of many Sales and Leadership articles and a keynote speaker with over a decade and a half of experience as an executive in the residential home building and real estate industry.  She has experience working with Builders and Developers of all sizes –from the local/regional companies to the publicly traded nationals.  She also works with Realtors® and Brokers from across the country and is the architect and director of the highly successful Preferred Builder Partnership program with Prudential Tropical Realty where she has increased new home builder sales by over 200% in this large General Real Estate firm.

For more information, visit the Creative Sales Solutions Web site at www.creativesalesnow.com, or visit Mackey at LinkedIn, www.linkedin.com/in/kimberlymackey; Twitter, www.twitter.com/CreativeSales; and Facebook, www.facebook.com/CreativeSalesSolutions.

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I Was Wrong! There, I Said It. (and you might be making the same mistake)

2 Comments Add your own

  • 1. Chip Landers  |  June 14, 2011 at 2:17 pm

    Kimberly – Great article on the sales pitch to realtors! As a former onsite agent, 15 years, and now working in general real estate, 11 years, I have seen both sides of this situation. I would suggest the best sales pitch can be done at your model/sales center and can be hosted with continental breakfast. This allows the realtors to see and touch the product and can be part of the realtor sales meeting or tour. Also, the main concern that most realtors have is the delayed payment of any commission. How that is addressed is up to every builder/developer, but is the biggest obstacle to overcome for any real estate agent in selling new vs. resale.

    Reply
    • 2. creativesalessolutions  |  June 14, 2011 at 8:22 pm

      Chip,
      Thanks for the comments and the question. When you consider the changes in the market right now, most new homes can actually be constructed start to finish faster than the average short sale can possibly be completed (if it ever is with your buyer). So, even when considering a “to be built” home for your buyers, you know that once your buyer gets through the approval process, that home is almost certain to close. In fact we are seeing the lowest fall out rates in the history of home-building right now; which is exactly the converse of what we are seeing in General Real Estate where we are experience record fall out rates of nearly 30% (normal would be around 5%). So, I guess I have to ask, just what is “delayed” commission?

      It depends on your market and your type of building of course, but most production builders can complete a home start to finish in about 4-5 months. Many have standing inventory (albeit less that “back in the day”). If the production builder is only requiring a deposit and then a close at completion (end-loan) the commission is generally paid at that time. If however, the builder uses Construction-Perm financing, many builders will pay commission at slab pour/or 1st draw.

      I even know of a few builders (using end loans) who are paying commission upfront to Real Estate Agents, with a reasonable deposit and all contingencies cleared. So, it is best to check with your local builders to learn their policies, but I suspect that you will find that builder sales are much more of a sure bet and much easier to bank than you remember if you have been at this a while. Certainly much more predictable than when and if that short sale ever comes through.

      Keep me posted on your success! I’ll be rooting for you.

      Reply

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