Closing The Deal:
The End of the Beginning
Closing means that you have helped clients achieve the result they wanted. Sellers have found the right buyers for their homes. Buyers have found the right homes for them to purchase.
It is the desired end result of your client service,
It is also the second time you have helped bring these clients to an agreement. The first was when they hired you. The 3 steps you followed in
getting hired
are similar to the 3 steps in helping your clients complete the transaction.
Step One: Understand Clients’ Needs
Prospective clients have two kinds of needs: logical and emotional.Sellers For the most part, sellers tend to be driven by the logical need to convert the equity in their homes to cash. Their emotional needs often influence this logical need. Emotionally attached to their homes, they may believe that their properties are worth more than market conditions suggest. Or they may want people just like themselves to purchase and live in their homes. This desire may result in some price flexibility to screen ‘unacceptable’ buyers and encourage those more desirable.
Buyers Unlike sellers, buyers tend to be driven by emotional needs. They need to feel good enough about a home to imagine themselves living there. As a result, buyers tend to base decision on emotional factors such the look and feel of a home. Once their emotional needs are satisfied, they will rationalize their decision on logical considerations: “the price was right”, “great location”, “excellent condition” etc. Regardless of whether your clients are sellers or buyers, it is important to identify which needs—logical or emotional—are most important to them. And of course, once you understand their needs, do everything you can to ensure these needs are met.
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Step Two: Address Any Concerns
Concerns, also known as objections, are a normal part of the working toward closing the deal. In raising concerns, clients may have some legitimate issues to be resolved. Or they may be raising one issue while really concerned about a different one. Regardless of what you think the motivation may be, take all concerns seriously. The following four elements will help you address clients’ concerns honestly and effectively.
1. Empathize With Them This means that not only do you understand how the prospects feel, you tell them. “I understand that buying a home is a very important decision. Let’s make sure that you have the best information possible to make this decision.” 2. Clarify Your Understanding To clarify the concern, repeat it back, using your own words. “As I understand your comment, you like the home but believe it's overpriced.” 3. Seek Permission To Offer A Solution By asking permission to offer a solution, you demonstrate that you take the concern seriously. This puts your clients in a better frame of mind and allows them to be more open to your response. “May I explain the factors that are considered in setting a listing price?” 4. Offer A Solution The solution should be factual and focused specifically on the concern. It should be worded in such a way that the clients do not feel stupid or put down by having raised the concern. “The value of comparable homes in the area is the main factor in setting a listing price. This value is determined by analyzing recent selling prices of comparable properties in the area. This value might be increased or decreased to reflect differences in individual properties. In practice, fair market value is what a willing purchaser would be prepared to pay to a willing seller. From this perspective, what price would you be willing to play for this property?”
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Step Three: Help Your Clients Close the Deal
The formal negotiations start when buyers submit to the sellers an offer to purchase the property listed for sale. At this stage, your help to clients will include any or all of:- Preparing the offer (buyers’ agent)
- Explaining terms of the offer (both agents)
- Discussing sellers’ options (sellers’ agent)
- Accept the offer(sellers’ agent)
- Reject the offer (sellers’ agent)
- Counter-offer (both agents)
- Negotiate revised terms(both agents)
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After They Sign...
If you represent the buyers, immediately after the offer has been accepted, congratulate your clients on having decided to buy the home. Reassure them that they made the right decision. And confirm that you will continue to assist them until they become the legal owners. When appropriate let them know how your
referral partners
can assist them. This reassurance and conformation will help prevent buyer’s remorse. This is an emotional condition in which a person feels regret after a major decision such as deciding to buy a home. In the phase before purchasing, the buyers felt the positive emotions associated with the decision. Afterwards, having made the decision, they may experience some negative aspects. Your reassurance will help overcome this negativity and reinforce the soundness of their decision to buy or sell. From a marketing perspective, your relationship with these clients does not end when they move.
Each closing adds more momentum to your client pipeline.
As part of your pipeline,
the lifetime value of individual clients
is far more than your share of the commission on the single transaction. Over the long term, each closing is another step to the ultimate achievement of your personal and
business goals.
In practice, closing marks the end of helping clients find new homes or buyers for their existing homes. Closing also marks the beginning of a new relationship with your clients. In this relationship, you
keep in touch
with your clients. By letting them know about market trends and developments, you position yourself for repeat and
referral business.
What a great return on the small but important investment of keeping in touch with satisfied clients.
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