Property ManagementDo Your Agents Know How to Sell?
REALTOR® associations and MLS organizations are being phased out of the
industry or are being absorbed into gigantic multi-association conglomerates
such as the Northeast"s MRIS, or Texas" NTREIS. Seven percent of the
brokers/franchisers have over 70 percent of the agents. Meanwhile, where does
that leave the agent?
David Knox, a former REALTOR® and
now a nationally known trainer, has noticed some disturbing trends emerging
from these shifts of power. According to him, agents are getting the short end
of the stick with poor or non-existent training in basic selling and
communication skills.
It may seem that agents are getting more training than ever with the advent
of computer and Internet technology, but as far as selling, closing, and
prospecting, agents don"t have a clue, according to Knox. Those companies who
are able to afford outside trainers or in-house trainers are concentrating on
getting their people up to speed with the latest equipment possible, but where
is the money and time to teach basic sales skills?
"Everyone is so into technology, they have left in the dust any semblance of
teaching people how to sell," laments Knox. "They can work a computer, but can
they talk to a client?"
According to Knox, there is a training deficit - agents simply are no longer
being trained "in the basics."
Real estate consolidation means fewer companies and therefore fewer events,
and less reason to hire a nationally known speaker like himself. If the agents
don"t attend bi-annual meetings, conventions or celebrations, they miss the
opportunity to have sales training.
Continuing education (CE) requirements have corrupted agent motivation for
training. With so many clock hours required per year and the fact that
accreditation is limited, agents aren"t motivated to attend classes.
"If they can"t get credit for it they don"t show up," says Knox. "People
rush to meet their deadline and will take any (CE) topic that is available that
day. They are taking what is available, not what they need."
Knox believes that chain reactions are another reason agents aren"t getting
the training they need.
"The local boards are offering so little that we don"t even prospect to them
anymore," says Knox. "The boards are price-sensitive and they price for the
cheapest dues and tuitions and they get the cheapest instructors."
"They cater to the bottom feeders by trying to be a K-Mart instead of a
Macy"s or a Nordstrom"s."
"They are putting themselves out of business by offering cheap instead of
quality. And no one is showing up."
"The result is that the boards are going out of business and going away.
Then all they have left is the MLS and the Internet is taking that away,"
explains Knox. "They"ve priced themselves out the wrong way."
"The only ones left to deliver training are the broker companies. Most have
in-house training programs and I think most of them do a pretty good job."
Knox saw the changes coming. Over a period of several years, he has shifted
the focus of his business from live presentations and events to doing events to
bringing his training messages to the "in-house" level, via video-training.
Although he still does a brisk business in seminars and special events, he
knows that to reach more people, he would have to create a new means of
delivery.
"Instead of having the audience come to me, I would go to them," says Knox.
Knox created a new training system - 12 videos with "actual live role
playing demonstrations for real-life selling and marketing situations. Most
companies can own the whole set for less than Knox"s typical air fare.
"My goal is let"s develop strong ethical sales people," says Knox. "No wimpy
salespeople."
Knox"s plan means that he can potentially get to more people than he ever
could as an outside trainer.
"Even if everyone was hiring outside speakers, I couldn"t get to everybody,"
Knox says.
With the real estate industry beginning to realize the need for "basics"
training, who is going to be in charge? Where will agents get the training they
need? The big company conventions are key, along with company-sponsored , but
Knox believes it is the support of the branch managers which will ultimately
make the most difference.
"The real behavior change has to happen at the branch office level," advises
Knox. "The branch managers need to take a strong role in teaching skills to
their salespeople. Real estate is still a people business. It is the agent"s
interaction with people that make it go."
"It feels like the industry have forgotten about its people. They are
investing in buildings, Web sites, digital cameras, but what about the people?
All companies need to invest in their people. They need to spend at least half
as much as they do in technology."
"Realtors want technology training, they want to get their clock hours, but
what they need is selling skills and dealing with people. The skills I see
lacking are prospecting and meeting people, and the biggest skill needed is
counseling for needs and motivation. That means listening and diagnosing,
asking open questions, probing for the prospect"s true motivations."
"Realtors waste a lot of time by not qualifying the motivation to buy or
sell. That is the most important, to know how to ask questions like, "What
happens if your home doesn"t sell? What are you gaining by moving? Then work on
presenting benefits and closing."
Where should the branch offices begin? Correcting basic mistakes in selling
techniques, believes Knox. This could prevent errors of omission such as fear
of getting into the game, looking for the easy way out, or being just plain
lazy.
"The biggest mistake is that agents don"t show up enough. I mean
face-to-face marketing. Even a broken clock is right twice a day, but you have
to show up," admonishes Knox. "I ask people in classes, "Have you ever bought a
product from a bad salesperson? Yes, they say. Why? S/he was there! There"s
your answer."
"The second mistake is lack of persistent follow-up. That means you have to
show up again and again," continues Knox. "The first step is getting your name
out there, then you have to follow up with a phone call or face-to-face."
"Don"t put up a Web page and think that is all you have to do."