SCHNEIDER: The Greatest Skills Sets
Lead Generation Systems
Lead Conversion: Mastery of the Interview
Transaction Management: The 10 Cycles
Real estate actually looks very easy. However, agents have to first figure out their natural style of business development. Are you the agent, a “Hunter or Farmer” personality style? Farmers often hate to prospect and Hunters often do not slow down enough to build relationships.
There are dozens of lead generation systems. However, all of them fit into 3 categories. Prospecting, marketing and networking.
Truly, the most important skill of all is the ability to obtain a “yes” in competitive and confrontational situations. This is probably the #1 reason over 80% of agents leave the industry in their first 1-2 years. Lead generation is easy, lead conversion is where high-income careers are built.
TRANSACTION MANAGEMENT – THE 10 CYCLES OF EVERY DEAL
For every new listing taken, it will move through 10 cycles. And as an agent, we must have very detailed systems for every one of the 10 cycles. If one step is missed, “a fire is started” and the transaction becomes exhausting. The joy of it is lost when emotions run high.
For New Listings
Cycle 1: The Interview to win the listing
As an agent, filling in the paperwork is easy. Persuading the seller to hire you in a competitive interview environment is a challenge. Not winning one listing is ok, not winning 3-5 in over a period of a few months and it can be career-ending. (Skill – handling crucial conversations)
Cycle 2: Processing the legal paperwork
It is our responsibility to know every line of every document. The listing agreement and the disclosures. As an agent we must also be strong in the area of creative writing and at some firms, we must the admin skills to enter the property into the MLS.
In addition, we must ensure the seller has completed all disclosures and that they are put online in a timely basis.
Cycle 3: Servicing the seller throughout the weeks
Possibly one of the most challenging aspects of the Realtor job is serving the home seller while their property is on the market. Sellers often say, “You know….we are in no hurry….we are not going to give it away….we don’t have to sell”, and other statements that reveal their lack of objectivity and low motivation.
While the seller has high expectations of most agents, they are not prepared for the level of confrontation that is about to occur with many new listings. (Skill – handling crucial conversations)
Cycle 4: Negotiating the sale contract
Seller servicing can last days or even months, however, contract negotiations can occur in just a few short hours. Agents must know what every line of every document means. Or at a minimum has fast access to someone that can answer the question.
Cycle 5: The Paperwork now that we are under contract
Truly, we cannot miss one thing. This cycle is about the distribution of the documents to all key parties. And getting inspections coordinated for the other agent, possibly the seller, and informing the seller about many of the next steps.
This is where deals go to die. Emotions are about to elevate for both buyer and seller. And possibly for the agents. Once the inspection is over, buyers are often disillusioned/disappointed in the knowledge of what is wrong with the property. The bubble may have burst for the buyer enthusiasm. The seller is in denial that the inspector is wrong and the buyer is unreasonable. (Skill – handling crucial conversations)
This is the hardest part of all of real estate. Getting the parties to be objective takes a lot of life skills. Role playing is often not on any companies training list, yet it is the greatest need.
Cycle 7: Coordinating Inspection Repairs
This is a time to coordinate all repairs, bids, and retrieving paid receipts and lien waivers and providing them to all necessary parties.
Cycle 8: Unexpected Crisis
Truly this is a cycle that we hope never happens. Cycle 8 is about unexpected problems. Title issues. Survey. Homes that did not appraise. Lenders that did not issue loan commitment. These “fires” occur late in the transaction. (Skill – handling crucial conversations)
Cycle 9: Final Countdown
Good news – the transaction is about wrapped up. It is time to coordinate the closing and review the closing statement and ensure your file is compliant with the state auditors. Hopefully, the final walk through goes smoothly, or there is a fresh battle in store.
Closing Statement: Verified
Closing Times: Verified
Cycle 10: Post Closing
This is post-closing and includes, entering your sign and lockbox back into the inventory. It is time to complete the file. Add the client to your database. And deposit your check!
As the creator of this real estate overview, I truly believe agents should either be “on a team…or leading a team.”
If you have a leadership style, I would encourage you to build a team. You can literally double or triple your income in 1-2 years without any new personal production. The key is knowing who to bring on and how to cast the vision.
If you are thinking that leading a team is for not you. I would encourage interviewing team leaders. A shared effort, shared knowledge, will actually increase your income, create more free time and be much less stress.
Live Life Abundantly
Scott Alberson – Vice President – Loan Officer
NMLS # 254738
16253 Swingley Ridge Rd #400, Chesterfield, MO 63017
NMLS # 138063