How to close more real estate sales
One of the hottest topics in sales is closing and how to close. There is a massive amount of research and opinions on how to close more sales. From the sales process to sales closing techniques for sales reps, there is a lot of information out there. This is both a good and a bad thing. Choosing which advice to listen to and put into action can be confusing, especially in terms of what is relevant to real estate sales specifically.
Based on my 17 years of experience and extensive research, I have brought together the top seven push-backs that salespeople come across and how they can overcome them to close more sales in real estate.
1. Gain your buyers’ trust
Let’s face it, salespeople are not considered the most trustworthy people. Recent research suggests that just 18% of the salespeople buyers have met over the past year would be classified as trusted advisers.
The research reviewed why people didn't enjoy meeting with salespeople. The top reason that came up is that they feel pressured, especially when they are not ready to buy.
· 44% believed salespeople are only serving their own agenda
· 25% indicated salespeople only care about making the sale
· 23% were uncomfortable because it is difficult to say no to salespeople
· 8% said salespeople are not the type of person they typically associate with
How to overcome it: Focus on genuinely helping buyers find the best fit.
The lesson is clear. Salespeople should concentrate more on helping buyers to move through the sales cycle effectively, ensuring they are recommending only properties that are a good fit and help the buyer to reach the right purchasing decision for them.
2. Make sure you are implementing the right sales strategy.
Study participants were presented with different closing techniques in order to understand how they would respond.
Overall, hard close techniques such as “This is the last time we’ll be able to extend this offer and we need an answer now” were rated least effective. A hard close creates a binary “yes or no” response from the buyer and is associated with a “take it or leave it” mentality.
How to overcome it: Use soft-close techniques to avoid pushing a buyer too hard and losing them.
Soft-close techniques such as “If you spend another $100,000, you be able to get the additional features that address your pain points” were rated most effective. A soft-close is based on a suggestion that leads buyers to believe they are acting of their own free will, when in fact they have been directed to follow an action.
This technique allows you as a salesperson to ensure the prospect is ready, highlights the benefits of the sale and makes closing the deal a much smoother process. Getting to know the buyer and understanding what they need is a powerful tool and should not be overlooked.
3. Establish a personal connection.
There is an equilibrium point where the buyer respects the salesperson’s conviction and is not offended by their persistence, which enables the relationship to develop. Buyers shared five key reasons why there isn’t “chemistry” or a personal connection with a particular salesperson:
· The salesperson was too pushy with their sales pitch
· There was a difference in communication styles, or miscommunication
· The salesperson’s personality was much different from mine.
· The salesperson was too eager to befriend me or appeared false in their enthusiasm
· There was a difference in age
Many salespeople are very comfortable selling to certain types of people. However, they’re far less likely to establish rapport with someone who is wired far differently than themselves. Since they’re not exactly sure how to behave, they act in a way the buyer considers too pushy, or they overcompensate by being overly friendly.
It’s not surprising that 81% of buyers indicated they would rather talk with someone who shares their same mannerisms. As a result, buyers will choose the salesperson who develops rapport over those who don’t.
How to overcome it: Adapt your communication techniques to match your buyer's
Ultimately, a salesperson wants to become a communication chameleon. Just as the chameleon changes colours to match its surroundings, the salesperson’s goal is to speak the buyer’s language (industry, technical, and job function) in order to relate to them.
4. Actively listen to your prospect.
Everyone wants to feel heard. If a buyer feels as though they are not being listened to, they are unlikely to engage and feel supported enough to sign the contract.
How to overcome it: Ask more questions and truly listen to the answers
Salespeople need to listen more than they talk if they are going to succeed at closing sales. Active listening is the best way for salespeople to understand their prospects and overcome objections that stand in the way of a sale and recommend the best property or solution for the prospect.
5. They do not know enough about the property they are selling, or the area it is in.
A salesperson cannot effectively close sales if they have limited knowledge of the property they are selling. When a salesperson does not know much about what they are selling, they cannot make an educated recommendation for their prospects. As a result, prospects will be unable to understand how the product or service will benefit them and will not purchase.
How to overcome it: Become an expert in your local area
Your buyers need you to be their guide both figuratively and literally. Know the area, help your buyers to feel comfortable, and recommend the right properties for them.
6. The prospect has not been qualified.
Skilled sales professionals have a qualification checklist where they quickly assess the quality of an opportunity. For example:
· What is their purchase timeline?
· What do they need to complete to progress to the next stage in the purchase cycle?
· Do they need to consult any other parties before making a purchase decision?
· Are they financially in a position to progress with a purchase?
Without asking those questions, a salesperson may waste theirs with a person who is not able to purchase from them, hence will not be able to close the sale.
How to overcome it: Get to know your prospect & do your research
Make the most of your time getting to know your buyer, and make sure that what they need is in line with what you can offer. It will be a much better use of your time and theirs!
7. Fail to acknowledge and address the buyer's main requirements
Ultimately, a prospect is looking for a solution. That solution is what you need to sell them on. During your sales pitch, a buyer will begin to collect information that will help them make their decision.
How to overcome it: Combine the above techniques to ensure all challenges are overcome
Ask questions, qualify your leads, listen, relate to your buyer, be an expert in your area, and only recommend what is right for them.
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