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ONE WEEK REAL ESTATE SALES TRAINING

CERTIFICATE PROGRAM

SYLLABUS

This course is designed for the student to be specifically employed selling new homes for builders and developers.

WE OFFER JOB PLACEMENT

presented at

The University Division of Continuing Education

Presented by: Louis Principe

January 20, 1998COMMITMENT IS THE DAILY TRIUMPH OF

INTEGRITY OVER SKEPTICISM!OBJECTIVE:

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To achieve success you need to learn about comfort zones, goal setting, time management, self image psychology, communication skills, business plan for success and be in an industry where you can earn what you are worth.

This course is designed to learn about selling and marketing homes and condominiums for builders/developers.

After the course is complete, the students will have an opportunity to be interviewed by builders, developers and Realtors.

We offer job placement, however we do not guarantee it.

Most builders/developers will start a new associate at $500 a week draw against commissions and will increase it depending upon the success of that person. Most students earn in the first month an average of $ 750 a week, after the second month, $1000 a week and up.

Presentation Time: 40 hours

Presentation Physical Arrangements:

Day 1: In a classroom environment.

Day 2: In a classroom environment.

Day 3: Field trips to builders/developers.

Day 4: Classroom in a.m., p.m., marketing field trip.

Day 5: Case studies in classroom.

QUALIFICATIONS OF A NEW HOME SALESPERSON

Certain characteristics are essential to all types of sales. There are some that are essential to your success in the new home sales market. The following activity is designed to define those qualifications which are considered key to your achievement of success in new home sales.

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A. Your business is hiring an additional new home salesperson. The responsibility of writing the classified ad as fallen in your lap. To help you organize your thoughts, list the 5 qualities you would look for in your ideal job candidate.

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B. Which of the above characteristics is the most important quality for a new home salesperson? Why?

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C. Now that you have a more defined idea of what type of professional you are looking for, write the classified ad for the position.

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D.During the interview process, your candidates will ask you for a job description. Based on what you have done above, develop a

description of the job duties and responsibilities for the new home salesperson you will hire.

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APPEARANCE:

Your appearance conveys a lot about you. Successful people project an unmistakable stamp of strong personality with their clothes and personal grooming. They reflect a sense of individuality and solid consciousness or worth that impresses the observer. This is not a matter of good looks. Whatever nature gave them and time has let them keep, they've molded into a commanding, memorable appearance.

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GETTING RICH:

A successful salesperson shapes his or her values and organizes his or her lifestyle to achieve the objective of getting rich. There's nothing wrong with getting rich as long as the people you serve along the way benefit.

DUTIES & RESPONSIBILITIES:

Some of the major duties and responsibilities of the new home salesperson are listed below:

Duties:

* Perform various tasks to include competitive product shopping, product knowledge, exercises, and sales technique reviews

* Maintain prospect files and marketing reports

* Staff the information center and models according to assigned schedules

* Conduct personal tours of model homes and information center according to assigned schedules

* Make planned sales presentations including greeting, qualifying, demonstrating, and closing

* Assist brokers and their clients in the purchase of company products

* Maintain and organize sales collateral materials in an adequate supply for daily use

* Perform follow-up and self-prospecting activities to maximize sales

* Maintain good customer relations by prompt and courteous attention to the needs of prospects and customers

* Participate in professional training and seek opportunities to learn and develop professional skills

Responsibilities:

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* Meet personal sales goals and objectives by developing and using professional sales skills

* Represent the company and its products fully and accurately to the public

* Provide service and follow-up to prospects and customers from the time of their initial introduction to the company's homes and community

* Maintain clear and accurate marketing and sales information according to the company's reporting system

* Maintain complete and accurate purchase file documents

* Maintain the general condition of model and sales office interiors and report deficiencies to the sales director

* Demonstrate full knowledge of the assigned community, company homes for sale, competition's homes for sale, pricing, pre-arranged financing, standard construction practices and company policies and procedures

GREETING:

In the greeting stage, you set the scene for the sales presentation. Hopefully, with your greeting you make the buyer feel comfortable and free to ask specific questions in a warm, friendly environment. The greeting stage also flows directly into the next stage: Qualification. The objectives of the greeting stage are as follows.

* To break the ice

* To gain attention

* To determine needs

* To further qualify prospects

* To prepare for the presentation

Each of these objectives is discussed in the following paragraphs.

TO BREAK THE ICE:

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The greeting should make the prospect feel comfortable. The salesperson should actually step back to reduce the possibility of invading the prospect's personal space.

TO GAIN ATTENTION:

You want to make sure that the prospect is aware that you can help him or her in analyzing the benefits provided by your homes. Sometimes gaining the prospect's attention can be as simple as pointing out the key displays in the new home sales office that should be reviewed.

TO DETERMINE NEEDS:

One of the dynamics of selling is to make prospects fully aware of their needs. That process begins with your greeting.

TO FURTHER QUALIFY THE PROSPECT:

Good dialogue in the greeting will furnish a great deal of qualifying information. A few well-phrased questions during this stage will help you further qualify your prospects. Examples of phrases which might help you begin the qualification stage are as follows:

* Where do you live presently?

* How large is your family?

* How long have you lived there?

* Have you visited many other homes?

TO PREPARE FOR THE PRESENTATION:

By achieving the basic objectives of the greeting stage (i.e., gaining the prospective home buyer's attention, identifying his or her specific housing needs, and through further qualifying), you have provided yourself with the necessary fuel to start the presentation.

In your brief conversation so far, you have probably learned several key facts about the prospective home buyer. For example, you may now know why he or she is looking at homes on that particular day; where he or she works and how far he or she commutes; and which of your competitors he or she has shopped.

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Even when you falter in gaining attention or awakening needs, you may be able to move on to the presentation.

Sometimes a negative response to an approach can open the way for your presentation. For example, "I know you may not be planning to move right now, but with a new baby on the way you may outgrow your apartment sooner than you think. If you have a few moments, I would like to show you why our homes have proven ideal for many young, growing families just like yours."

HOW TO GREET:

A perfect greeting will contain elements of all five objectives described above. You should prepare several greetings, and select two or three that seem most appropriate. Apply the examples below to your own situation.

Introductory Greeting Approach:

The most popular, and least effective, introductory greeting is familiar to us all. How many times have you heard this question?

"Good morning. Welcome to Sunny Acres. I'm Martha Smith and I represent ABC Builders. May I help you?"

What is your usual response? Avoid asking questions which will get you a yes or no answer without some further information. These include

questions that begin "Do you... Are you... Will you". For example:

"Do you want to see our models today?" No.

"Are you considering moving soon?" No.

"Will you be moving soon? No.

It is better to ask a leading questions that produces information for you to use in your presentation. this type of questions can begin with an information word, such as "what, where, when, how", or offer a choice of answers for the prospective home buyer.

For example:

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"When are you considering moving?"

"Are you considering primarily new homes or existing homes in this area?"

PRODUCT/BENEFIT APPROACH:

Every new home has several outstanding benefits. This is why it is so important for you to understand your product thoroughly. Introduce specific features of construction that should be sold as benefits to the prospective home buyer. for example, you might say:

"Hello, I'm Mark Jones with ABC Builders. We are the first builder in the area to use the new refrigerator/microwave 2 system in our kitchen. You can actually program you meals right from your office to be ready when you get home. Won't that be a great time saver?"

It is often useful to open with your most powerful benefit. After you have gained some insight into the prospective home buyer's interests, such as energy efficient construction, you could mention specific features in you homes that translate into energy saving benefits for the home owner. This represents the resolution of a problem at the same time that it appeals to the emotional side of the buyer.

For example, you might say:

"The construction of our wall systems using larger structural members means that you have more insulation than most houses in this area, which increases your energy efficiency rating and saves you money."

CURIOSITY APPROACH:

This approach is used mostly to gain attention. Using this approach, you emphasize a unique aspect of your product that you want to call to the prospect's attention. For example, you might say:

"Push this button and watch our new display work for you."

QUESTION APPROACH:

This approach is a very valuable technique. People enjoy talking about themselves. Questions should center on the business at hand -- selling new homes.

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When you use this approach, try to ask questions that your prospects will have no problem answering. If you are going to ask a yes/no question, ask one that you are fairly sure most prospects will answer yes.

"In what type of home do you presently live?"

"I have a short video on how our new heating and air conditioning system saves energy. Are you interested in reducing energy bills by 15%?"

BONUS APPROACH:

With this approach you add "something extra" as a way to open the sale. To introduce new products, manufacturers and home builders on occasion offer premiums. Some salespeople like to wait before mentioning a premium until later in the sale - hoping to induce a close.

"We still have advantageous financing available through the end of this month for our new buyers".

DECLARATIVE APPROACH:

Opening with a statement of provable facts can be a very potent approach. Prospects, however, may not accept your information as fact. Be prepared for rebuttals, unless your company is do dominant that its superiority in sales is a matter of public knowledge. In any case, you must be ready to back up such claims with reliable proof. For example:

"Many people, given a choice, prefer a new home rather than a pre-owned home".

REFERRAL APPROACH:

You will use this approach most often when you do prospecting by phone. If your buyers refer prospects to you, you may make your initial approach by phone. When this is the case, use the name of the person who referred you and you will often establish a very friendly atmosphere. For example:

"Mary Jones suggested I contact you. She and her family recently became the proud owners of our most popular model in the Pine Ridge Community.

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Mary is so pleased with her new home she thought you might like some information to consider in your own upcoming move."

SUMMARY:

There are many different ways to approach your prospective home buyers. The challenge is to find the approaches which fit your personality and selling style best and are the most effective in initiating the selling process.

You should practice different approaches to become comfortable with several. You should not rely on one approach for all situations; this is an unrealistic assumption of the selling environment - it changes with every prospective buyer who walks in your door.

HOW MANY GREETINGS SHOULD YOU USE?

There is no magic to any one approach. You say something, and the prospect responds (or doesn't). When no response occurs, you try a different approach -- seeking a common ground from which to proceed. The entire process doesn't last more than a minute or two. At the end of this time you will be either moving into the next phase or moving on to a new prospect.

The success of your approach will depend upon the personality style of the prospect. There are different types of personalities you are likely to encounter. At this initial greeting stage you might have to guess at personality preferences until the person reveals more about himself or herself.

HOW MUCH TIME SHOULD BE SPENT ON THE INITIAL STAGE?

The time spent on the greeting phase varies considerably. If you are experiencing an especially busy day, you will have to move through the greeting and screening/qualification phases very quickly so you can spend as much time as possible with the most qualified prospects.

If you are having a slow day, you could spend more time with the lesser qualified prospects (especially if they are the only people there). You could view this as practice time for honing your skills in all areas of sales. After all, sales ability does require skill building -- the more you do it, the easier it will become.

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PHYSICAL METHODS OF GREETING:

There are three fundamental greeting scenarios in the new home selling environment. You will either meet the prospect face-to-face, call the prospect on the telephone or make contact through a written message, such as a letter.FACE TO FACE:

Most of the approach work you will do as a new home salesperson will be face-to-face. This scenario has some advantages and disadvantages. The biggest advantage is that you are directly in front of your prospect. This close proximity allows you to get immediate feedback.

You should constantly monitor feedback (verbal and nonverbal) from your prospects in order to determine whether or not your message has been properly received. You can do that more easily in-person than you can on the phone.

The biggest disadvantage is that you know very little about the person prior to their walking through the door. With limited prior knowledge, your approach and presentation must be tailored right on the spot.

TELEPHONE:

While the telephone approach provides moderate feedback, this channel is still a viable method for the initial contact. How should you approach by phone? The following suggestions will help you use the telephone effectively.

* Write down an outline of your approach in advance.

* Prepare the questions you want to ask so that you are not stumbling for something to say.

* Have all pertinent information handy. You want your facts organized so that you do not waste the prospect's time.

* Establish an objective for each call and group similar calls together. It works best to make several telephone calls in a row to keep up the

momentum. You might group calls into categories such as initial contact, follow-up on previous contacts, or announcing special promotions.

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* Approach telephone contacts methodically. Do it the same time every day or every week. To increase your organization, make notes after each call.

* Don't send out follow-ups until all your calls are completed.

* Call during the best time of day. If you are calling people at the office, the best time to call is before 9:30 or in the afternoon. If calling at home, the best time to call is in the evening.

* Create a mental image of the other person. If you have never met them, imagine, someone you know and relate to the prospect in the

same friendly manner. Smile -- it will come across in your voice.

* Test your vocal quality. Record some conversations and listen with a critical ear. Do you hear repetitive phrases such as "like", "you know" and "uh"?

* Match the prospect's rate of speech. Speak clearly and distinctly to increase the probability that your message is getting across.

When you reach the appropriate person:

1. Identify yourself

2. State your major objective up front. High quality prospects will be more attentive to your message and semi- qualified prospects

appreciate your frankness.Unqualified prospects will drop out early.

3. Remind the prospect of any past relationship, especially when making follow-up calls.

4. Set a time limit for the call.

5. Ask questions.

LETTER:

Mass mailings can appear impersonal and usually end up in the trash can. Make sure even your computerized letters look as personal as possible. Open with strong benefits -- one to two sentences, if you are writing to contact for the first time. Other hints for writing a letter include the following:

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* Refer to the prospect by name

* Identify yourself and your company* Mention who referred you - if appropriate

* State the purpose of the letter - be honest

* Identify an area of probable interest

* Write in your prospect's language and from the prospect's perspective. To check, do an "I" count. Check the number of times you used the words "I", "me" or "mine". Then rewrite the letter and convert the "I"s into "You"s.

* State one or two reasons for a prospect to come and see you

* Include a brochure, if appropriate, to increase interest

* Indicate when you will follow-up with a phone call

* Be brief and simple

* Follow-up as promised

Prepare three different approaches you can use for prospects walking into your model office. Vary the three approaches to practice different types of approaches discussed in this section:

Introductory Approach

Product/Benefit Approach

Curiosity Approach

Question Approach

Bonus Approach

Declarative Approach

Prepare a telephone approach to use for your current selling situation. Plan your approach for each of the following situation:

Initial Contact

Follow-Up

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Special Promotion

Practice the phone approaches using a cassette tape recorder. Evaluate your performance and make necessary corrections. Once you have polished your presentation, make a final recording.

QUALIFYING:

When you learn to qualify effectively, you will dramatically decrease the amount of time it takes to close a sale. A prospect well-qualified is a prospect half-way to being a customer.

IMPORTANCE OF QUALIFYING:

The people you are dealing with are better-informed and more experienced than the buyers of year ago. They expect more from sales professionals. Consequently, to be a success in sales, you won't sell a home to someone, rather, you will help them buy a home.

Today, professional selling based on fulfillment of needs and wants. You will help prospects solve problems related to a very important part of their lives -- where they live.

In order to solve problems, you must fully understand the prospect's present situation. You will help those prospects whose needs closely match the offering of your home the most. In order to do this, you must find a way to identify the most qualified. This does not mean that those individuals who are not qualified should be cast rudely aside. Not at all. If you can't make a sale, make a friend. You never know who the unqualified prospect knows. They may well be able to refer 10 close friends who are well-qualified for your homes.

TYPES OF PROSPECTS FOR QUALIFYING

In your interactions with the individuals coming into your model homes, you will encounter four basic types:

* Unproven Prospect - Person who walks in, that you know nothing about. This individual may or may not be a potential customer.

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* Prospect - Person who, as a result of your initial discussion, appears to want or need your product.

* Qualified Prospect - Person who is ready, willing and able to buy the product. You want to spend as much of your selling time as possible talking to qualified prospects.

* Long Term Prospect - Person who is interested, but not quite ready to act (lack of cash for down payment, short on income), but will be able to act in the foreseeable future. Phone and mailing list types of follow-up should

yield a sale.

HOW TO QUALIFY:

There are three basic steps to qualify prospects. While these may not be the only steps you take, they should be the heart of your qualifying

process.

* Step One: Determine qualifying factors

* Step Two: Evaluate your prospect using these factors

* Step Three: Decide how to proceed with the prospect

STEP 1:

Determine the factors which would qualify a prospective home buyer to purchase one of your houses. These factors might include:

* Size of family

* Years at current address

* Type of current residence

* Reasons for moving

* Desired time frame for moving

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* Employment status/location, etc.

STEP 2:

Establish straightforward questions to gather the appropriate information quickly. Basically, you don't want to waste their time or yours. The questions you develop should be framed to fit easily into your own communications style.

The qualification process will involve a mix of comments about your homes, community, and surrounding area, along with qualifying questions. You do not want to make a prospect feel as if he or she has been descended upon by a flesh-eating salesperson. Do not use high pressure tactics or you risk alienating prospects completely. Possible qualifying questions are divided into three categories:

READINESS:

To determine your prospects' readiness, ask questions regarding their current home status, the timing of their expected purchase, and their housing search activities to date. Questions in this category include:

Where are you living now?

Is your present home on the market?

When will you lease expire?

Is this your first home?

Do you hope to move in the next 30 to 60 days?

Have you visited other communities recently?

How did you hear about this community (use specific name)?

How long have you been looking for a home?

Did you see a home you like to the point that you considered buying it? If so, what stopped you?

WILLINGNESS:

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In gauging the willingness of a prospect, you should glean information about his or her requirements and motivations. Motivations can be especially important because they give you a window on the prospect's inner feelings (i.e., their key emotional buying factors). Many people buy based on emotion, not logic. Some of the basic motivations you will encounter include:

Privacy Romance and beauty Security

Comfort Personal identity Status

Financial

Questions to determine willingness might include:

What are you looking for in your next home?

What style (or styles) of home appeals to you?

What is your current home like?

Do you want more or less space?

How many people will be living with you?

Which of our models do you prefer?

What in particular did you like about that model?

Do you have any special hobbies or interests which might influence the type of home you buy?

When you look at the homes of your friends, which ones really appeal to you?

ABILITY:

The prospect's financial ability will place some limitation on what he or she can afford. Do not waste time (either yours or the prospect's) by showing homes well out of the range of possibility. When determining the person's financial ability, you should move cautiously or gently (not bluntly). However, you must confront the issue rather than simply avoid it.

Ask questions regarding current employment, other property owned, and mortgage qualification to get a complete picture about the prospect's ability to buy. Questions which can help uncover ability include:

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What type of work do you do?

Where do you currently live?

How long have you lived there?

In the process of looking, have you had your home appraised?

Do you own any other property?

Have you looked into mortgage qualification factors?

What level of initial investment would you like to make in your next purchase?

What would the ideal monthly housing payment be for you?

We have houses in the $150,000 to $250,000 price range; which would be the most appropriate ones for you to review?

STEP 3:

If you uncover that someone is truly not a qualified prospect, you will want to politely excuse yourself from the situation. If a prospect says; "Oh, we recently moved into the development down the road and heard that your merchandising displays were beautiful", you would not want to spend time trying to sell them another new home.

Never forget, though, that many, many prospects use "smoke screens' to keep a salesperson from getting too close to them at the outset. Loosen the reins, but stay engaged in a friendly, helpful manner. Before too long, the prospect may ask questions that betray more than passing interest in one of your homes. This is the same basic scenario played countless times (and in a high percentage of cases) in retail stores. Remember to ask for referrals.

If on the other hand, the prospect meets your qualifying factors determined in Step 1, you can proceed into the next phase of the Critical Path to Successful sales -- The Presentation Phase.

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AREA AND COMMUNITY:

You need a detailed knowledge of the surrounding area to be effective. The key is not to dazzle the prospective home buyer with your knowledge, but to be able to apply this knowledge to the specific needs and interests of the qualified prospect.

AREA:

To orient the prospective buyer to your community, begin your presentation with a discussion of the surrounding area. Follow this up with a review of the community, and finally, with information on the specific sites and models.

Know the area surrounding your new community very well. To acquaint yourself, you can perform some of the following activities:

* Drive around the surrounding neighborhoods

* Study a local map

* Visit the Chamber of Commerce

* Talk to area residents

* Contact school administrators

* Contact fellow real estate agents

When presenting the area to prospects, you must be familiar with the particulars of the greater community in which your new homes are situated. Keep track of area attributes and services of greatest interest to your prospects.

Don't merely cite the names of schools, but rather speak about the schools from the new home owner's perspective. For example, when you are dealing with a young couple with children, you may say:

"You mentioned that you have two elementary school age children. This community is located near the Robinson Elementary School which won the state award for scholastic achievement last year. The principal, Ms. Wilks, is very friendly..."

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If you are talking to empty-nesters, you would target their interests in recreational facilities, as well as religious and social activities.

In addition to schools, you should be aware of the following aspects of the area:

* Transportation routes

* Shopping

* Libraries

* Recreation facilities

* Health clubs

* Houses of worship

* Cultural offerings

* Local government (e.g., taxes, land planning, etc.)

* Significant history, etc.

Completing an area profile form is helpful in compiling this information about the surrounding area.

COMMUNITY:

As you know, you are selling more than a house -- you are selling a lifestyle. If the property is in the early stages, many of the final community amenities will not be completed. Consequently, you must paint the future picture in the minds of the prospective home buyers.

Many builders will provide a scale model or relief map of the future development. This is ideal at this stage of selling the community. If time* permits, you may even want to walk or drive highly interested prospects through the new community. Whether you use a site map or walk the prospect through the community, be sure to point out the following items.

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* Where the amenities will be, if applicable

* How the common area will be developed, if applicable

* The special features of the future community facilities (e.g., parks, play grounds, tennis courts, basketball courts, etc.)

You will also want to create an image of what the final community will be like to live in. To do this, describe the people who have purchased homes already (or the target market description) in terms of the following characteristics:

* Income ranges

* Typical Occupations

* Typical family composition

* Leisure/Recreational interests

* Types of community activities sponsored by the homeowners' association

* Any other activity that makes the community a special place in which to live

You might take some photographs of buyers as they review the construction process of their own homes and display them in the sales office to personalize your presentation.

You should familiarize yourself as thoroughly with the community as you did with the surrounding area. To orient the prospects effectively, you need to understand the developer's plans and construction programs (especially in phased development).

DEMONSTRATING THE PRODUCT:

As you move into the demonstration stage of your presentation, you must convey the benefits your home provides. In an effective demonstration you will seek to:

* Arouse appreciation for your homes and create a desire for ownership

* Have the prospect experience the home and visualize living in it

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* Keep the prospect's interest in the home and prevent distractions

* Reduce sales resistance (i.e., handle objections)

* Secure the prospect's confidence by answering question and providing technical information in a language the prospective buyer understands.

THE FAB SELLING TOOL:

One very useful tool is use in developing a demonstration is a FAB (Feature/Advantage/Benefit) Matrix. With this matrix you translate the key features of your home into powerful advantages and benefits for the prospective home buyer. You may also find that developing a FAB matrix for your competitors is a useful way to determine your strongest competitive advantages.

FEATURES are the physical characteristics of your homes. You should concentrate on the specific features that differentiate your homes from those of your competition.

Types of features which are important to home buyers include size of structural lumber, types of materials used, and specific construction techniques. Review this information to select those features which should be highlighted about your homes.

ADVANTAGES are the obvious performance characteristics of a feature in your homes that will be helpful to the prospective buyer. Advantages are statements that describe how features in your homes can be used.

Essentially, advantages will answer the question "So what?" asked by a buyer about a particular feature. For example, explain that using 2x6s for wall systems increases strength and allows for more insulation.

BENEFITS are statements describing a feature's value to the prospective home buyer. Benefit statements detail the satisfaction prospects will receive from buying and using your home. Benefits may include those attributes which will make the prospects feel better, live better, be more financially secure, save money, do their work more quickly or easily, and enjoy life more.

Benefits will vary for different prospects because the needs being satisfied are different. For the prospective home buyer, benefits answer the question

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"What does this mean for me?" For example, increased insulation means better energy efficiency and cost savings.

Use the FAB matrix to counter objections. FAB statements can help you prepare to respond to, or even head off, objections. FAB statements will build confidence. You may encounter many negative situations. You may hear objections about your homes or about the superior features of your competition. Such experiences can be disheartening and make you feel unable to compete. Building your FAB matrix may help rebuild confidence in your product.

With your FAB matrix developed, you are ready to plan for an effective demonstration. Before you demonstrate a home to a prospective buyer, you should consider the following:

* Map-out the best way to move through the model. You may want to plan alternative routes to place special emphasis on different aspects

of the home for different buyers.

* Practice the demonstration with another salesperson. Do not spend a lot of time learning in front of the prospective home buyer. When you

demonstrate the home to a prospect, you want to make the best possible demonstration.

* Learn how to operate all key features in the home which you might use in your demonstration.

* Know which features are standard and which are upgrades. Know the cost of the upgrades.

DEMONSTRATING A MODEL HOME:

Different personalities will require different techniques. Once your preparation is complete you are ready to demonstrate the home to your prospective buyers. The demonstration stage should be a natural step following the earlier qualification stage. Incorporate what you have learned about the buyer through qualification into the demonstration.

FOCUS ON NEEDS:

Focus on those areas of the home that fulfill the prospective buyer's needs. If possible, demonstrate those areas first. For example, you might say:

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"Since entertaining is very important to you, let's move from the front foyer into the great room which as been designed especially for entertaining large groups."

GET THE PROSPECT INVOLVED:

Get the prospect actively involved in the demonstration. Demonstrations should be an active, not passive, process. If you do all of the talking, you will risk losing the buyer's attention. Remember to be an effective listener. While you are droning on and on about this feature and that feature, the prospect may be dreaming about where to eat lunch.

One way to make certain that the prospect is with you is to have the person actively participate in the process. A prospect's participation will also help him or her truly identify the benefits your home provides. For example, you might say:

"Push this knob and you control the recessed lighting over the fireplace."

CREATE A SENSE OF OWNERSHIP:

You should use phrases throughout your demonstration which help the prospect get the feeling that this home is where he/she truly wants to live. For example, you might say:

"You mentioned you love to cook. Don't you think the center island in this kitchen will make preparing gourmet meals more fun?"

SOME ADDITIONAL TIPS

Experts in the industry have found the following techniques to be quite useful.

* Have all the lights on in the model. Use 100 watt bulbs. This creates a welcoming atmosphere.

* Don't crowd small rooms and hallways. Allow the prospects to explore small areas on their own.

* Position your prospects in rooms so that they can see the strongest features and benefits of the rooms as you point these out. Position your

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prospects so that they look diagonally across the room. This position will create the sensation of more distance.

PRESELLING FROM BLUEPRINTS AND FLOOR PLANS:

You may find yourself in the position where you will sell a home from blueprints and floor plans. The following gives you basic information to enable you to read these plans.

SELLING FROM PLOT PLANS:

Plot plans show the physical features of a property or building site. Plot plans generally include:

* Legal description of the property

* Compass direction

* Lot lines

* Location of existing or proposed structures, roads, walks, drives, easements and utilities

* Existing and proposed grading features

* Existing and proposed landscaping

* Structure to be built

The first step in interpreting a plot plan is identifying the point of beginning (POB). The point of beginning may be any stationary object, such as a manhole cover, iron pin, or existing building. The point of beginning is the starting point for all boundary line measurements, known as lot lines.

Lot lines are drawn from the point of beginning and dimension in feet and decimal parts of a foot (e.g., 137.5' 82.25', 109.5'). Usually each lot or home site is numbered, named and marked off by lot lines. Names of owners may be added on a "sales" plat used in the sales office.

Your builder may furnish you with an individual plot plan for each home site you are selling. This individual plan may have more information on it, such as landscaping features and contours of the land. In order to sell the home site successfully, you should be familiar with the property itself.

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Through careful study of the plot plan and "walking" the home site, if possible, you can identify features which you can present as benefits during your demonstration. A final grading plan will show lot elevations, slopes, easements and other features of the overall site.

SELLING FROM FLOOR PLANS:

In most instances you will use floor plans when selling from blueprints. There are different types of floor plans drawn for specific purposes.

These include the following:

* Simplified floor plans - Often called one-line floor plans, simplified floor plans illustrate basic proportions and room arrangements. These are used mostly for sales brochures.

* Pictorial floor plans - These are drawn to give the viewer a perception of depth and

realism. They are used for sales and demonstration purposes. Pictorial floor plans are usually displayed in sales information centers.

* Working floor plans - Often called detailed floor plans, these plans give detailed

construction information. Working floor plans give the tradespeople, such as carpenters, plumbers and electricians the information they need to build the home.

OBJECTIONS

Some tips and techniques for handling objections from your prospective home buyers. It provides sample scenarios of successful methods for answering objections and gives you a system for handling objections. Use these activities to learn how to apply the techniques to your personality.OBJECTIVES:

* Why people object

* Five steps to handle objections successfully

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* Methods for handling objections

* The role of buyer personality in handling objections, and

* The four basic types of objections

SALES RESISTANCE:

As a new home salesperson, you must learn to welcome objections. When prospects object, they are showing some interest in what you have to say. If you demonstrate a home to prospects and they way little or agree to everything you say, they are probably just not interested.

Few purchases are more personal and complex than buying a home. Your prospects will not make the decision lightly. After all, the home will impact on many major facets of their lives: the quality of their life; the quality of the schools their children attend; their commute to work; and, to some, the prestige of the address.

You should learn to welcome objections. By raising areas of concern your prospects show that they are taking the decision on whether or not to buy seriously.

WHY PEOPLE OBJECT:

You can prepare yourself in advance for the types of objections you will most likely encounter in new home sales. This will increase your chances of dealing successfully with those objection. People object for many reasons. They may:

* Want to avoid the sales interview

* Object as matter of custom

* Need more information

Since the home purchase is so significant, many individuals will want to see several options and make the decision very carefully. Bear in mind that prospects may not recognize a need or may have a negative opinion of your offering. You will have to work carefully to alert prospects to their needs and counter negative opinions with positive benefits and information.

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HANDLING OBJECTIONS

Deal with strong objections immediately.

"I understand your concern about that, let me ......”

Turn the objection into a selling point and have the customer repeat back the you the objection he had is no longer a problem.

SYSTEM FOR HANDLING OBJECTIONS:

Listen to the prospective home buyers carefully. Don't respond to a particular objection until you thoroughly understand what the prospects are saying. Make sure you don't cut them off in mid-thought.

Give the prospective home buyers plenty of time to explain their concern. If you cut them off, you risk either jumping to the wrong conclusion or alienating them through your over-zealous or inconsiderate behavior. In either event, you will weaken your sales position.

Use the following steps when handling objection:

* Rephrase and restate the objection: For example,

Prospect: "I am not familiar with your home building firm"

You: "I can understand that. I know you are interested in working with a builder that has a reputation for quality products and service."

* Concede before answering: Let prospects know that their opinion is important. Find a point to agreement without necessarily agreeing

with the objection. For example,

"I understand your concern about security. I am glad you raised that point.; Yes, that is important.

* Answer the objection -- briefly: Don't let the presentation become a monologue. Watch for signals (i.e., a nod, "uh-huh", "I see") that the prospect is accepting your explanation. Once you have received such a signal, you can stop the explanation.

* Obtain agreement: To make sure the prospect understands and agrees with your explanation, seek the prospect's affirmation. After

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answering the objection, for example, you might ask: "Does that answer your question?"

* Move back to the selling sequence: Once you have obtained agreement, you should move back into the selling sequence. This may be a great time to attempt a trial close.

REBUTTAL/DENIAL METHOD

This method is used to answer direct questions or objections that are based on incomplete or incorrect facts. Above all, be tactful when using this method or you will risk insulting the prospective home buyer. You do not want to put the prospect on the defensive by indicating a lack of consideration for his or her objection. This technique is best used by offering a proof source to reinforce the validity of your information (i.e., testimonials, newspaper article, quotations, etc.). For example:

Prospect: I don't think it is a good time to buy a new home because the economy is in such bad shape.

You: Yes, I agree the economy is not in great shape. But, a new home investment is one of the few remaining tax shelters.

Essentially, you agree with the prospect, but counter the objection with additional information.

WHAT OR WHY QUESTION METHOD:

A simple "why" is often an effective way of dealing with objections. You ask the prospect to clarify their concerns further through an explanation. Sometimes this technique will reveal hidden objections. And, on occasion, prospects will even answer their own questions as they discuss the problem. For example:

Prospect: I don't like the design of this new home.

You: Why do you not like the design? (or) What do you dislike about the design?

Prospect: Well, the rooms seem small. Especially for that price.

TESTIMONIALS:

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If you can obtain written statements from previous satisfied buyers, you will have excellent tools to use in overcoming objections. Other good tools would be flattering articles written about your homes or your community in the local newspaper and other publications. For example:

Prospect: This house is great. But, I'm not sure about the school system.

You: The quality of the school system is important.You'll probably be interested in this article in the (local) paper that talks about the success of

this elementary school's talented and gifted program. The article also mentions that the local high school is one of the top 5 in the state.

POSITIVE CONVERSION (Boomerang Technique)

With this technique, you take an objection and offer it as a reason for buying. For example:

Prospect: I think interest rates are too high to buy right now.

You: Interest rates are very high right now, and the industry expects them to increase further. That is why we locked in a lower rate for our buyers many months ago. This makes our homes very affordable.

OFFSET WITH A SUPERIOR FEATURE/BENEFIT:

With this technique, you would point out an exceptional feature that compensates for a real objection. This will help minimize the importance of the objection in the prospective home buyer's mind. No home will have everything. Compromises will be made in size of rooms, size of lot, design, etc. You should be aware of those features that may present minor problems for buyers and be prepared to counter with superior benefits. For example:

Prospect: This home has a very small lot. I really wanted a larger lot and certainly more trees.

You: In terms of price, lot size and a home's feature are always a trade- off. Our designers felt that home buyers would value the features we offer --such as the lavish master bath and two fireplaces -

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more than a larger lot. Also we have positioned every home so that no home is facing directly into a neighboring home. You won't find a similar home at this price so close to town.

FEEL -- FELT -- FOUND

Acknowledge how people feel and point out that the feeling is not unusual. When you are dealing with a prospective home buyer who is

a Feeler- or Sensor-type personality, you might say for example:

"I understand how you feel. Many people have felt that way. However, a number of our buyers found that...." (Mention results of a consumer preference survey if you can validly do so.)

When you are dealing with Relaters and Thinkers say:

"I understand your thinking. I originally thought the same way myself. However, a number of our buyers who shared this concern found...." (Reference your survey.)

TYPES OF OBJECTIONS

OBSTACLES:

An obstacle is an insurmountable problem which makes the prospect unable to purchase your home at this time. You should try to recognize obstacles because there is no need to pursue the sales effort. Phrases that might indicate obstacles include the following:

* "I can't afford this house."

* "Your price is too high."

* "We are not being transferred until the end of next year."

If an obstacle exists, you should move on to another prospect. However, sometimes these statements will reflect other objection categories (such as delaying tactic). To determine whether or not an obstacle exists, you could convert these types of objections into questions. For example:

* "Are you aware of all the tax implications of mortgage deductibility?"

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* "Do you know about the creative financing packages we offer which can make these homes very affordable?"

* "Would you like to know why these homes are considered such high value investments?"

DELAYING:

On occasion prospective home buyers are not ready to engage in the selling dialogue when approached by a salesperson. Objections of this type will be used to delay the process. The key in this situation is to engage the prospect in further dialogue.

Phrases that indicate delaying tactics include:

* "We just want to look at models."

* "I'm not actively looking right now."

You could counter this delay by asking, "Then may I help you find a particular feature...plan...etc?"

MINOR OBJECTIONS:

Minor objections are either trivial statements or statements used to camouflage the true objection. For example, prospects may not want to admit they can't afford your homes. If you suspect that the objections are really trivial statements you could ignore them or delay responding to them. Or, you may treat minor objections as a major objection. Remember to 1) restate, 2) answer, 3) offer proof, and 4) close.

MAJOR OBJECTIONS

Major objections are real areas of concern for the prospect. One of the best ways to handle major objections is to anticipate them. Typical major objections will fall into five categories:

Product Objections:

Home buyers may voice concerns about your product in many different ways, for example:

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* "Your design is too new (or radical)."

* "This home has been on the market too long, why hasn't it sold?"

* "I doubt if this home is right for me."

Typically, this type of objection will occur early in the process. Many times a product objection is a stalling tactic. If you hear a product objection after a considerable discussion with your prospect, you are probably facing a major concern. Prospective home buyers who voice product objections will need proof of the value of your home. For example:

* Mention market studies or appraisals that show market acceptance of the new design concept.

* Comment on market conditions in general to answer the objection about being on the market too long. For instance, if all homes are moving slower due to an increase in interest rates you might mention this.

* Ask further questions regarding the individual's housing needs if responding to the comment about the home being inappropriate.

Company or Source Objections:

The prospect may have heard erroneous negative comments about your builder.

For example:

* "Well, the model look nice from the outside. But, a former neighbor purchased a home from this builder last year and the house is really falling apart."

In this particular instance, you may want to ask questions about the home in question. Perhaps that particular site was not built by your firm.

You could also stress the advantages of the homes you are currently building and point out those features that demonstrate the quality of your builder. One excellent way to counter this situation is to provide testimonials from

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satisfied buyers. Other examples of source objections could include the following:

* "I've never hear of this builder. How long have you been in business?"

* "Wasn't this the builder that got some bad press last year?"

You must be ready to counter negative impressions buy supplying accurate, positive information about your builder.

Unlike the above statements, sometime source objections are unclear. Prospects may indicate negative impressions -- yet not state the reasoning behind their feelings.

Use probing statements such as "Tell me why you feel that way about my firm" to determine the true reasons behind the objection. Always be

professional. Don't get defensive. Be positive about your firm.

Acknowledge past mistakes -- especially if they have been corrected. You might say:

For example:

"We did have some problems with the quality of materials delivered from one manufacturer. So, we switched to the best manufacturer in the business to make sure that problem doesn't happen again."

Service Objections:

Service objections may occur because many people believe that once they buy a home, they are forgotten by the firm. The top builders today recognize that service is very important. Assure prospects that their service needs will be met. Objections of this type might include:

* "What happens if this complicated heating system breaks down? Can the average technician fix this?"

* "What guarantee do I have that you can deliver this home by the time I need it?"

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If your company offers any warranties or guaranties, show them to ease the prospect's concerns about service.

Price Objections:

Price objections are a common type of objection. Price comments may indicate uncertainty about the true value of your home. If the home does an exceptional job of meeting the needs of the target market, price should not be a barrier to the sale (within reason). For example, a person with only enough income to qualify for a $125,000 home is very unlikely to be a candidate for a $500,000 home.

Sometimes price resistance means that the salesperson has failed to demonstrate that the product value is equal to its price. This presents an outstanding opportunity for you to address why the home you are selling offers more features and benefits: quality area, quality builder, etc.

This objection calls for an expanded presentation. Typical price objections you might hear include:

* "Your price seems out of line to me."

* "This home is way out of our budget."

You should prepare very carefully to respond to price objections because failure to handle these problems correctly will mean lost sales for you. Some general guidelines include:

1. Do not answer an objection until you fully understand why it has been raised. Make sure this objection is not covering other objection, concerns related to quality, for example.

2. Emphasize benefits and value above price. People buy based on emotions. If you can really demonstrate why your new home community is going to be "the place to live", the pricing issue should become secondary. If you continually focus on price, you will lose

many sales -- someone can always beat you on price. Benefits you can stress would be issues related to: quality, satisfaction, prestige and

appreciation.

There are many methods of confronting the price issue. You should be prepared to use several of those discussed below.

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* Break into small units -- You could, for example, take the total price, subtract the down payment and factor interest rates, mortgage deductibility and show the prospect the true after tax payment.

* Reduce the difference to minimize the objection -- Compare the difference between what they say they want to pay and the price of

your home.

For example:

"Mr. and Mrs. Smith, you mention that you had expected to pay $150,000 and the model you are most interested in is $180,000. The difference is $30,000. With your income tax bracket and our financing, that results in a difference of $_______ in monthly payments. Wouldn't you say that the great location and the amenities of the community make it worth the difference of only $____ per day?"

* Quote price in positive terms with a benefit statement. Rather than say, "It costs $150,000"... say, "it is valued at $150,000 and comes

with membership in the community recreation center."

Vary your vocabulary. Other positive words other than cost and price include: Total Investment Value, Valued at, Worth, Available for, Available at, Offered for, Offered at.

Rather than say down payment or monthly payment say: Initial investment or monthly investment.

Stalling or Procrastination Objections:

As with price, the stalling objection is a frustrating objection that you will face continually. Examples of stalling objections would include statements such as:

* "I am just looking right now."

* "I want my husband (and/or parents) to see the property."* "We want to think it over."

* "Everything is just happening too fast."

* "We need to talk to our Realtor about selling our home before we make a decision."

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The home purchase is a complex one and the prospective home buyer may be indicating a difficulty in making the decision. There are some techniques you could use to ease the decision process:

* Recognize the difficulty of the decision

* Emphasize the satisfaction of making a sound decision

* Offer "inducements" for an immediate decision

* Minimize the risk of the decision

* Offer to write the purchase agreement contingent of the resolution of the prospect's problem

CLOSING PHASE - BASICS

During this phase of the selling process you will use specific techniques to close the sale.

OBJECTIVES:

* Three responsibilities when completing forms for purchasing a home

* Closing and a variety of effective closing techniques

* Type of lenders

* Characteristics of Fixed Rate Mortgages

* Characteristics of Growing Equity Mortgages (GEMs)

* Characteristics of Adjustable Rate Mortgages

* Characteristics of FHA and VA loans

* Factors which contribute to the buyer's spending power; and

* The use of a rent-vs-own worksheet in the selling process

REDUCE TO WRITING:

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The new home salesperson hasn't sold the property until it's in writing. There are many tools available for you to use. The following section describes those tools.

Sales Office/Center Design

The Sales office is designed to provide information, reinforce the sales message, and provide tools for the new home salesperson to use. The sales office is the first and last stop on the prospective home buyer's

way to buying one of your homes.

The Sales office is part of the overall design of the development. The builder has worked with the designed and landscape architect to

create a specific atmosphere tied to the concept of the project. A well-planned sales center will establish credibility with prospective home buyers, especially in a development where actual construction has not begun.

The sales office (also referred to as the information center, model center or welcome center) functions in three ways:

* Provides an area to meet prospective home buyers

* Informs prospective home buyers about specific details of the development community; and

* Sets the stage to sell prospective home buyers

The fundamental elements of the sales office are comfort, control and a positive atmosphere for closing.

* Comfort - Prospective home buyers must feel comfortable from the time they drive into the development project until they leave. The builder

has taken great care in designing the entryway, parking area and entrance to the sales office.

* Control -

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The layout of the sales office is designed to control the prospective home buyer. The builder has arranged different areas of the sales office to achieve this objective. The reception or staging area captures prospect information and initiates the flow of traffic around the sales office in a predetermined sequence. The exhibits focus prospects' attention on key information about the builder, the community, and the models. The closing area and salesperson's work stations are intentionally separated from other areas.

* Closing - The closing area usually has a view of the amenities or landscape features which highlight the lifestyle of the community you are selling. The area provides privacy along with additional photos or displays to encourage sales.

Using the Sales Office

The sales office orients the prospective home buyer to the community. Through the careful placement of signage, exhibits, and displays, the sales office conveys the lifestyle and concept of the project.

Information graphics should include five sequential displays.

* Vicinity Map (area orientation)

* Community Plan (site plan or topographical model)

* Specific Product Plans and Elevations (housing orientation)

* The Builder/Developer's Story

* Features of the Product

As you greet prospective home buyers, you begin initial qualifying.

Through a series of planned questions, you determine if the prospects are qualified and begin to move around the sales office in a predetermined sequence. This is your opportunity to sell the quality of the project and the reliability and reputation of the builder and to match the home buyer's needs to your community offerings. After the greeting and qualifying stage, you are ready to demonstrate the actual product.

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In some cases you may find yourself in an undivided garage or a bedroom which functions as a sales office. In this less-than-ideal situation, focus the prospects' attention on your information, not your surroundings. Through your extra effort, you can overcome any obstacles presented by the location of your sales office and project professionalism throughout your presentation.

Office Tools

Your individual sales office will be equipped with basic tools for you to use. These include such items as financial calculators, computers and work sheets. You will be trained to use the tools during your

orientation process.

In addition to basic hardware, a variety of forms are essential to the home selling business. These forms include the following:

* Purchase and sale agreement

* Financial Analysis

* Contingency addendum

* Customer selection list, including buyer option order forms

* Disclosure forms (i.e., model homes specifications, site, financing, warranty, homeowners association, etc.)

You must learn to complete each of the required documents with speed and accuracy. Complete, accurate forms are essential if the company is to provide adequate service to its customers. The ability to take an application for a home loan, for example, in thirty or forty minutes will certainly increase the number of applications you are capable of completing. It will not, however, necessarily increase the number of loans that can be processed within a given period of time.

Sloppily completed forms can be counterproductive. They increase processing time in general and may waste time when applicants are not truly qualified.

You have three responsibilities when completing forms for applying for a new loan:

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* To provide a clear understanding and written record of the terms of the agreement

* To obtain an accurate and enforceable contract between parties; and

* To reinforce the remaining steps in the process of closing the sale (loan process, materials selection, etc.)

Each builder will have specific forms and techniques for gathering information. You must learn your builder's system and become expert

in using it.

Be Prepared to Close at Any Time

Many sales are lost because the salesperson does not ask for the order.

You should be watching and listening to the prospect for buying signals, which can occur at any time. After you have detected a buying signal, you should attempt a close. Typical buying signals encountered include the following statements and nonverbal signals:

* Statement such as:

"How soon could I get this model?"

"Which sites are available for this model?"

"What type of financing do you provide?"

"This is just what I am looking for."

* Non-verbal signals such as:

Picking up the contract or some other related document and reading it.

Smiling at each other during key sales points.

Showing agreement by nodding heads as you make your sales points.

Drawing closer to you in the physical setting as well as in body positioning.

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Why New Home Salespeople Fail to Close

Many new home salespeople never try to close the sale. To understand and avoid this situation, you should recognize why many people do not close.

* Fear of failure - Some salespeople view a "no" from customers as a personal rejection. Rather than face rejection, they do not attempt to close. To avoid this problem you should remember that a "no" is not a personal rejection and not necessarily the end of your sales effort. You can minimize your fear of "no" by learning how to gracefully move back

into your sales presentation.

* Being too pushy - A few new home salespeople will not attempt to close out of politeness. You can avoid this feeling by recalling that your job is problem solving. Closing a sales can be emotionally satisfying because you have helped people move into a home of their dreams.

* Too nervous to close - Nerves can fail even after an excellent sales presentation when the customer is quite willing to purchase. You can minimize your nervousness by practicing in advance. Role play with a colleague or family member. It is best not to practice a sales technique for the first time with a real prospect.

* Not skilled at closing - Unskilled new home salespeople will often only know one way to

close.

A single close technique is often ineffective because many situations will call for alternative approaches to the close. Special circumstances may require an approach never used before. Skilled salespeople improvise

frequently -- and successfully. Practice different ways to close a sale.

* Not listening The time-honored advice is, "You have two ears and one mouth -- use them proportionately."

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TECHNIQUES:

There are many ways to close and no one best way. You will be more comfortable with some methods than others. Develop as many different ways to close as you can. Below are descriptions of several successful types of closes:

Paperwork Close

When using this close, you engage the prospects in handling some of the required paperwork such as the credit application. You can hand them a credit application form and ask them to look over the lender requirements. This way you test the waters for their sincerity about closing as well as their qualifications.

Financing Close

When you have produced an affirmative, qualified prospect, you should start writing. With the contract already on the desk facing the prospect, you should turn the document around to yourself and state, "I'm going to show you what the financing looks like." You proceed to write up the contract, turn it around, and explain the items. This document is referred to as the "agreement to purchase." After your explanation, offer the pen to the prospect and ask for their approval.

Lot Selection Close

When using this close, you would reemphasize the value of selecting the particular home or lot, either because of its choice location or its fit to their specific needs. You reiterate points made earlier during demonstration phase which led you to that particular lot site or home when discussing their needs.

Request the Order

This is perhaps the most common and simplest form of closing.

Whenever you recognize a buying signal during your presentation, this is a good method to use. Before you use this method, make certain that

you have answered all relevant objections that the customer has raised.

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Simply summarize all the benefits on which you and the customer have agreed, and then ask for the order. As with all closes, after you have made this close attempt, you should wait quietly for the customer to respond.

Telephone Survey

I'm calling for______ Homes; we are doing a market survey and I'd like to ask your help.

I understand you have looked at our homes in Sarasota and I am doing a focus study and your input is important to us so that we can improve our homes.

1. Is price a factor in your purchase decision? _____________.

What price range would be most comfortable? ___ 175 - 200 ___ 200 - 250 ___ over 250

2. Are you planning to purchase a home in the next ___ 30 days ___ 60 days ___ 90 days ___ 6 months ________ other?

3. Has your Sales Consultant followed up with you since your visit? ________.

In what way? ___________________________________.

4. (If applicable) Are there any answers to questions your Sales Consultant has not gotten back to you on? ____________________________________________________________.

5. Do you like the location La Maison homes Selected? (Does this location

suit your needs, or is there an area you would prefer) ____________________________________________.

6. What did you like best and least about our homes?

Best: ___________________________________________________.

Least: ___________________________________________________.

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What would you like to change: ________________________________.

7. What other builder's homes have you looked at? _____________________________________________________________. _____________________________________________________________.

8. (If applicable) In comparison to the other builders in this area, how do you feel about the value? ___ equal to ___ higher than ___ less than.

9. What is the most important factor in deciding to buy a new home? __________________________.

10. On a scale of 1-10, ten being the highest, how would you rate La Maison Homes as a builder? _______________________________.

11. Would you prefer a maintenance free package? (grass cutting, added concrete, etc.) ______________.

12. Is there anything else you'd like to tell me that I should know? ____________________

_____________________________________________________________________________.Customer's Name: Date Contacted:

SELLING THE TAX BENEFIT OF OWNERSHIP VS. RENTING

SCENARIO:CUSTOMER COMES IN WANTING TO SPEND NO MORE THAN $650 PER MONTH SINCE THAT IS WHAT THEY ARE PAYING IN RENT. YOU HAVE WORKED UP THE FIGURES AND CAN'T GET THE PAYMENT BELOW $750/MONTH. WHERE DO YOU GO FROM HERE?? YOU SAY TO THEM:

"DID YOU KNOW THAT THE INTEREST AND TAX PORTION OF PITI IS TAX DEDUCTIBLE? BUYING A HOME RATHER THAN RENTING WILL ACTUALLY PUT MONEY IN THEIR POCKET EACH MONTH. HERE'S HOW...."

Estimated Home Ownership Monthly Expenses

Prepared For:_____________________________________

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Selling Price:

Down Payment:

Principle & Interest:

Taxes:

Insurance:

Total Monthly Housing Expenses:____________________

Write Offs:

Interest:

Taxes:

Total write offs: ____________

X .30%(tax bracket)

Monthly write off for income taxes:____________________

MONTHLY NET EFFECTIVE PAYMENT:________________

Closing Techniques

1. 6 - MONTH NO PAYMENTS - puts off payments for up to six months.

2. BEN FRANKLIN - make a list of the pros and cons of buying this house.

3. URGENCY - this is the last lot the house will fit on.

4. SUMMARY/RECAP - if you jot down all the little pieces of information you gather in your qualifying and in your presentation, you can summarize those points to bring in the close. For example, you know these people said they wanted a fireplace and a microwave, simply recap the options they chose and write them on the contract. If they don't stop you, you've closed the deal.

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5. WHAT DID I DO WRONG - after you've tried everything else, ask the prospect "what did I do wrong in this presentation" or "what should I have done differently to get you the house you want?"

LUXURY PACKAGE REDUCTION - you know they want the house, but they are hung up on the price. Offer to reduce the price of the luxury package.

IF I WILL/WILL YOU - if I will throw this in, will you buy the house from me?

NARROW DOWN TO RIDICULOUS - if they are balking at the price, narrow it down to their terms. You might bring the price down to so much per day or show how $1000 worth of options is only $7 per month more.

9. OPTION CLOSE - give them the one option you know they really liked as a "freebie" if they buy the house.

Patience is a virtue. In selling it's priceless. You will always win especially when dealing with impatient people. Patience is the essence of true negotiation. Before the process is started it is impossible to resolve the problems and issues because they are not on the table yet. Get them to open up.

Information gathering is critical and new alternatives are brought to light.

Practice self control when things are not going your way. Do not get irritated with the client, if you do you will loose.

An experienced salesperson will not encounter any surprises along the way.

Allow your client to talk themselves out. They will hear very little till they get things off their chest first. Let the client have their say. It not only makes them more receptive to what you have to say, but also it obligates them to listen to you,

NEGOTIATIONS

Hold your position to lower the clients expectations. You send a strong message that you are confident and that your position is serious and concessions are hard to come by.

Price is not a factor as long as you are in the ball park. What matter the most is comfort level, trust, honesty, integrity, quality and design.

Concessions will be made based on the comfort level and trust established.

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Making smaller concessions will make you win. The client feels that you are getting down to the rock bottom. Creating this impression early in the meeting will help ensure that the sale will be in your favor.

To give away less, slow down your concession rate. Don't shoot all your bullets up front. Make each concession progressively smaller.

If you change your concessions and give away more that is expected, the meta message you will give your client is that initially you weren't serious. They will feel that it will be easier to get more concessions and that you must be desperate to sell. If you put doubt in their mind, you loose.

Use role reversal on a closed mind.

Body language.

Time invested by the buyer.

The Blue Vase.

PERSONALITY STYLES:

Thinker: Self contained and direct. Pace is slow and methodical. He loves to focus in on details. Great note taker and appreciate those who takes notes as well. He doesn't like surprises. They question:"How did you reach your conclusion?" For security he relies on preparation.

Behavioral characteristics:Serious, persistent, seeks facts and data, questions, compliance with authority, likes organization and structure, diplomatic with others, critical of performance.

Clues: Charts, clean desk, formal.

Director: Self contained and direct. Fast pace, wants results. Likes being in control. Measures self worth by results and track record.

They are strong willed, high ego's, wants immediate results, decisive, goal oriented, accepts challenges, takes authority and loves to sole problems.

Dislikes inaction. Good administrative skills and causes action. Sales people get upset because this type of client causes action, he's dominant and is impatient and questions why.

Desk is busy of work and projects. Power and control, formal.

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Relater: Open and direct. Slow and relaxed. Irritation is pushy and aggressive behavior. Loves guarantees and assurances. Relies on close relationships and wants to conform. Wants everyone to know how well liked I am.

Warm and accepting, agreeable, emphatic listener, shares personnel feelings and emotions, slow to take action and make decisions, asks questions prefers informality.

Desk has personnel items, may contain serene pictures.

Socializer: Open and direct, pace is fast. Focuses on interaction and is irritated by boring tasks. They question 'Who else lives here. For security they rely on their flexibility, for acceptance they use playfulness.

They make spontaneous decisions, they are talkative, spontaneous, works quickly and likes involvement. Risk taker, enthusiastic, optimistic, friendly and has good persuasive skills.

Desk may be disorganized and cluttered. Desk area indicates warmth, openness and likes contact.

The Salesman

And in those days, behold, there came through the gates of the city a salesman from afar off, and it came to pass as the day went by he sold plenty. And in that city were they that were the order takers and they that spent their days in adding to the alibi sheets. Mightily were they astonished. They said one to the other, “What the hell, how doth he getteth away with it?” And it came to pass that many were gathered in the back office and a soothsayer came among them. And he was one wise guy. And they spoke and questioned him saying, “How is it that this stranger accomplished the impossible?” Whereupon the soothsayer made answer: “He of whom you speak is one hustler. He ariseth very early in the morning and goeth forth full of pep. He

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complaineth not, neither doth he know despair. He is arrayed in purple and fine linen, while ye go forth with pants unpressed.” “While ye gather here and say one to the other, ‘Verily this is a terrible day to work’, he is already abroad. And when the eleventh hour cometh, he needeth no alibis. He knoweth his line and they that would stave him off, they give him orders. Men say unto him ‘nay’ when he cometh in, yet when he goeth forth he hath their names on the line that is dotted. “He taketh with him the two angels ‘inspiration’ and ‘perspiration’ and worketh to beat heck. Verily I say unto you, go and do likewise.”

MONTHLY BUSINESS PLAN FOR SALES

TO: Sales Manager

FROM: _______________________________________

DATE: _______________________________________

SUBJECT: Sales Consultant's Monthly Sales Goals for month of:________________.

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Based on the projected annual income I desire to earn, I have established my goals in writing and will endeavor to achieve these goals as outlined below:

1. Projected annual earnings: $__________

2. Projected monthly earnings: $__________

3. Average commission per sale: $__________

4. Projected number of closings that I must have to achieve my desired annual income: __________

5. Projected number of contracts that I must write: ___________

6. Projected cancellation rate: _________%

7. Projected number of cancellations that I can't exceed: ___________

8. Projected closure rate that I must maintain to effectively use my time: _________%

9. Projected number of prospects that I must register: _________

In order to achieve these goals, I plan to do the following:

1. _________________________________________________

2. _________________________________________________

3. _________________________________________________

4. _________________________________________________

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5. _________________________________________________

6. _________________________________________________

7. _________________________________________________

8. _________________________________________________

9. _________________________________________________

Suggested action plans:

Contact all canceled contracts.

Home owner referrals.

Apartment flyers or door hangers.

Pest control companies.

Management companies.

Realtors, not just for their clients. Realtors average income is $74,000- nearly four times the national average. Average Realtor net worth is $ 674,000. 9 out of 10 realtors own their own home, with an average market value of $178,100- three times higher than national average. 82% of the Realtors are involved in residential brokerage.

Chamber of Commerce mixers, brochures and who gets the chamber leads?

Measure the results of your ads. Word ads, flags, signage.

How many follow up letters/ phone calls.

Financing programs designed for the clients needs.

Creative outreach:

Prospect business owners, personnel managers, church leaders, relocation departments, motels, R.V. Parks, medical association, clubs, etc.

Prospecting functions, homeowner parties, brunches, seminars, etc.

Einstein's Theory of Insanity:

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"Doing the same things over and over again expecting different results".

The harder you work the luckier you get.

Do the most productive thing that you can be doing every moment of the day.

"You need not be a victim of circumstances. You can write your own script, choose your own course, control your own income".

FREQUENT RECURRENCE TO FUNDAMENTALS IS ESSENTIAL FOR PERPETUITY. In other words-Back to basics.

THE LITTLE RED HEN

Said the big white rooster, “Gosh all hemlock; things are tough.Seems that worms are getting scarce and I cannot find enough.What’s become of all those fat ones is a mystery to me; There were thousands through the rainy spell, but now where can they be?”

The little red hen who heard him, didn’t grumble or complain,She had gone through lots of dry spells, she lived through floods and rains;So she flew up on the grindstone, and she gave her claws a whet,As she said: “I’ve never seen the time there were no worms to get.”

She picked a new and undug spot; the earth was hard and firm.The big white rooster jeered, “New ground! That’s no place for a worm.”The little hen just spread her feet, she dug both fast and free,

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“I must go to the worms,” she said, “The worms won’t come to me/”

The rooster vainly spent his day, through habit, by the ways,Where fat worms have passed in squads, back in rainy days.When nightfall found him supperless, he growled in accents rough,“I’m hungry as a fowl can be. Conditions sure are tough.”

He turned then to the little red hen and said, “It’s worse with you,For you’re not only hungry, but you must be tired too.I rested while I watched for worms, so I feel fairly perk;But, how are you? Without worms too? And after all that work?”

The little red hen hopped to her perch and dropped her eyes to sleep,And murmured in a drowsy tone, “Young man, hear this and weep,I’m full of worms and happy, for I’ve dined both long and well.The worms are there, as always - but I had to dig like hell!”

Oh, here and there, white roosters are still holding sales positions,They cannot do much business now, because of poor conditions.But soon as things get right again, they’ll sell a hundred firms--Meanwhile, the little red hens are out, a-gobbling up the worms.

Time management

the 80/20 rule of time80% of the time, you will find the 80/20 rule correct!80% of the sales come from 20% of the customers80% of the sales comes from 20% of the salespeople80% of the sick leave is taken by 20% of the employees80% of the dirt is on 20% of the floor area80% of income is spent on 20% of expensive items80% of t.v. time is spent on 20% of the popular programs80% of the population buys 20% of the popular foodsfocus 80% of your time where the high value is!“the things that matter the most should never be left up to the things that matter the least!”

TIME MANAGEMENT:

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AVERAGE WEEKLY HOURS SPENT

Telephone calls.............................._______

Writing letters & Proposals.._______

Other associated paperwork_______

Meetings and training.............._______

Nonproductive office time....._______

Travel time to & from calls..._______

Customer care................................_______

Lunch & coffee.............................._______

Scheduling & organization.._______

Model or office upkeep..........._______

TOTAL................................................._______

Sales Management vs. Sales Leadershipexcerpts published in Professional Builder Magazine

The qualities of leadership are the same in all fields, the leader being the one who sets the highest example.

As a company tries to expand, what takes place is a fatal shift from leadership to management which marks the plateaus and failures of most companies.

Some managers however, are like safe ships in port. The nature of management is that they don't make waves, however battleships were made to fight. No one ever managed anyone into battle!

A leader has a passion for equality. We think of great generals like David and Alexander who shared their beans and water with their men, called them

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by name, marched along with them in the heat, slept out on the ground with them, and were first over the wall.

We need to have more emphasis on teaching leadership. Currently, men who delight their superiors (the sales managers) get the high command while the men who delight the lower ranks (the salespeople) receive reprimands.

Leaders are movers and shakers, inventive, creative, original, unpredictable, and full of surprises that discomfort the enemy (the manager) in war and the main office in peace. The average manager is a safe, conservative, predictable, conforming organizational man.

Where would management be without the inflexible paper processing dress standards, attention to the proper social, political, and the vigilant watch over habits and attitudes that gratify the stockholders and satisfy security.

"If you know what's good for you," says the manager, "you will keep my commandments and not make waves." That's why the rise of management always marks the decline of profits.

True leaders are inspiring because they are inspired, caught up in a higher purpose, devoid of personal ambition, idealistic, and incorruptible. There is necessarily some of the manager in every leader. Conversely, there should be some of the leader in every manager.

So vast is the discrepancy between management and leadership, that only a blind man would get them backwards, yet that is what we do.

THE REAL KEY TO SUCCESS IS UNDERSTANDING OURSELVES

MOTIVATION CREATES ENERGY.

PEOPLE CONFUSE ACTIVITY WITH ACCOMPLISHMENT.

POOR SELF IMAGE= NO GOALS.

A GOAL PROPERLY SET IS HALFWAY REACHED.

WHEN THEIR IS FAITH IN THE FUTURE, THERE IS POWER IN THE PRESENT.

YOU CAN’T LEARN FROM EXPERIENCES THAT YOU ARE NOT HAVING.

HENRY FORD:”I’M LOOKING FOR PEOPLE THAT DON’T KNOW IT CAN’T BE DONE”.

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I WILL GIVE YOU TWO IDEAS THAT WILL DRASTICALLY INCREASE YOUR EFFECTIVENESS: KNOW THEY TIME, UNDERSTAND YOURSELF.

THE STORY...

Once there was a flock of pelicans more fortunate than any pelicans in the world. They lived on a beautiful bay south of San Francisco, where the air was clean and the water teemed with fish.

All day long, the pelicans swooped and dived, catching fish near the water’s surface. You might say it was a pelican’s paradise.

But, one day, this paradise was shattered by the squeal of tires and a loud crash. A produce truck, roaring around a hairpin curve on the nearby highway, had overturned. Out rolled apples and oranges and vegetables of all kinds...onto the beach below.

The noise attracted the pelicans, who came to investigate the heaps of strange food on their beach. They pecked at the luscious strawberries and juicy ripe oranges, all there for the taking. It was quite different from their diet of raw fish and they tasted it all.

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In the days that followed, more food began appearing on the beach. Passing motorists, seeing scattered produce below, began to toss their own litter onto the beach. They threw half-eaten hamburgers, pizza, candy bars, and apple cores. The more garbage that landed on the beach, the more the pelicans ate.

Soon, the pelicans stopped fishing altogether. They just hovered near the beach, looking upward toward the highway waiting for their next free lunch.

As the pile of garbage grew, the people who lived nearby began to complain to the county commissioner. But they learned there was no litter law to stop it. And you know how long it can take to get a law cranked out through the bureaucracy.

Finally, after months of debate, and numerous amendments, a law carrying a stiff fine was enacted and the littering slowly came to a stop. Everyone pitched in to clean up the beach and soon everything was like it was before the accident, with one exception...the pelicans began to starve.

The once independent birds had become so conditioned to their free handouts that they had forgotten about the sea and its plentiful fish. It didn’t even dawn on them to look in that direction. The townspeople were in a dilemma. Now instead of litter on their beach, they had a flock of dying pelicans. New meetings were held to discuss the problem.

Some people suggested feeding the helpless birds, until one wise person finally said, “Our pelicans are dying because they don’t know how to fish. To save them, we must teach them to fish again.” For once, the town agreed, and fishing pelicans were imported from other coastal areas.

Perhaps, they reasoned, our pelicans can learn from others how to find food once again from the bountiful sea.

And so, eventually, the problem was solved, but not before many pelicans, unwilling to learn, had perished. Happily, though, most of the pelicans watched closely as their counterparts swooped and dived and caught the many fish in the bay. And they relearned the basics of existence.

THE MORAL...

Sales people are a bit like the pelicans in our story. Although they were usually a hard working group, they became just a little complacent. They were fortunate enough to work in an area where things

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were good, when supply could not keep up with demand. It’s only human nature that when things become easy we tend to slack off, fall into a pattern, and wait for our “free lunch”.

But today, things have changed. Added competition has changed the market, buyers have more to choose from. To compound the problem advertising costs have skyrocketed. Now you are forced to spend a king’s ransom to get traffic to your door. More than ever you must be certain that your sales staff is effective, that they do not miss an opportunity to close a sale.

Like the pelicans in The Story; sales people can be taught how to fish again.

For those willing to learn, problems can be solved...and you can feel better knowing that your pelicans are getting their share of the fish_.

Selling to foreign purchasers:

The local market has been saturated with direct marketing for years. Every time an out of area developer enters into the market, they expect local sales, therefore, they spend their advertising dollars in the first year in the local arena with dismal results.

You are in South America’s safe haven. The crime in their country is so rampant, Miami is a safe haven.

The kidnappings in South America occur daily. The business owners are targets not only of the criminal, but the government as well. The mail is opened and tracked. If you mail brochures from the United States, the intended client will refuse it, fearful the government will know he is wealthy enough to have money to purchase property in the United States.

You will probably see 70% of the sales from South America,with 50% coming from Brazil .You should not overlook the local market and other South and Central American countries.

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First on the agenda is to sign up international brokers to represent you.

Foreign brokers may have additional travel expenses.

You’ll find in the international arena, price is not a factor provided it’s in the ball park.

In selling to South Americans, personal relations, affiliations and bonding is critical.

In the U.S., we pride ourselves on individual independence. The South American looks for relationships and networking, in which relatives and business contacts are very important.

They are very diplomatic, have a variable sense of time, and are socially formal.

They like titles and last names and like to embrace and shake hands frequently.

There is also male dominance in most parts of South America.

There are two ways to reach the foreign market.

1. Personal contacts. I can help you identify brokers and individuals who would most likely represent you in their respective countries.

2. Through newspaper and magazine media we can reach other potential brokers who will find clients for us.

The South American is looking to transfer their money to the United States.

They don’t care if their purchase of real estate appreciates or not. They just want to put their money in a country with a stable government. They are looking for low monthly upkeep costs on their investment.

Generally, they have no problem with a 30% down payment.

Most South Americans would like to keep their real estate as a rental unit, therefore, if you could guarantee them a tenant it will assist in a rapid sellout of the developer’s property. They would use the facilities for a 30 day time period sometime during April to August.

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Report from The Miami Visitors and Convention Bureau for 1995.

South America Profile:

Total Expenditures..............................$2,338,280,406. 1,948,400 visitors

Brazil ...........................Expenditures..$525,973,000 ....460,000 visitors

Germany............................................. 417,927,000.....373,400...........

Venezuela............................................ 414,458,000....356,600...........

Canada............................................... 412,538,000....501,300...........

Argentina............................................ 334,273,000....276,700...........

Columbia............................................ 318,737,000....259,100..........

France................................................. 240,421,000....191,500.........

England............................................... 238,803,000....244,400.........

Suggested action plan:

You will need brochures, price sheets and videos in Spanish and Portuguese, German, referencing square meters and square feet.

We need to capitalize on security and service.

Sampling of advertising prices: Dinero and Semana magazines. Classified ad per month, $476.00,

El Tiempo paper, per wk $147.60, El Pais, paper in Cali, $135, El Heraldo paper, $176. coast areas Cartagena, Barranquilla, Santa Maria El Colombiano, Medellin,$140.00

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Join the International, Columbia and Brazilian Chamber of Commerce.

We need to understand the formation of offshore corporations to insulate your client from exposure to various United States taxes. Impact of the United States estate tax can be punitive when a foreigner dies owning real estate in the United States.

Shares of a foreign corporation are not subject to United States estate taxes when held by a nonresident at the time of his death. The estate tax can be entirely avoided if the condo is owned by the foreign corporation rather that directly in the name of the foreigner.

Other advantages are avoidance of probate proceedings, avoidance of U.S. Gift tax and increased confidentiality; only the name of the offshore company and not the name of the ultimate beneficial owners of the company is filed in the public records.