Recovery Is In The Air

Finally, it seems for the last few months there have been daily drops of good news in the media, and that the emotional mood of the country is starting to slowly shift and become cautiously more optimistic.

For those of us still in Real Estate Sales it is up to us to seek out this positive information, and since we all agree that "Perception is Reality", we have to translate this myriad of complex data simply and effectively, and imbue into our customers that NOW is the perfect time to invest in one of our brand new homes.

It is our job to find these positive articles, and be prepared to refer to them when managing customer's objections about the economy, confirming that now is the right time to buy. On line sources that I check regularly are the Wall Street Journal which is WSJ.com, CCNMoney.com, and the Official NAHB website. Between the three of those sites you should be able to find enough real world positive data, to build your own self confidence, impress your customers, and manage their concerns.

I don't purport to be an economist, but let's first understand what the positive indicators are that are pointing to the fact that we have passed through the bottom (sounds painful), and are moving towards a real recovery.

a) Housing starts increase

Housing starts rose 17.2% in May to a seasonally adjusted level of 532,000 units according to the US Commerce department figures, posting their third monthly increase. Building permits and single family housing starts also rose in May. On the NAHB website the following very helpful information was posted on June 16Th.

Both housing starts and permits were up across every region in May. Starts rose 2 percent in the Northeast, 11.1 percent in the Midwest, 16.8 percent in the South and 28.6 percent in the West. Permits rose 5.7 percent in the Northeast, 8.9 percent in the Midwest, 2.3 percent in the South and 3.8 percent in the West. More information on housing statistics is also available at: http://www.housingeconomics.com/.

b) Inventories are shrinking

The May 28Th headline for CNNMoney.com stated

STEADY HOME SALES COULD BE POSITIVE SIGNAL

April sales are a sign to some economists that the worst of the housing downturn may be over.

This article like many others discussed the facts about home inventories, which is that by the end of April the seasonally adjusted estimate of new homes for sale was 297,000 or a 10.1 month supply at the current sales rate. Down from January where there was a 12.4 months supply.

"This continued reduction in the new homes inventory helps bring supply in line with demand, which is an important step towards the market's recovery" Says NAHB Chief Economist, David Crowe.

April was the 24Th consecutive month in which the number of unsold new homes declined.

c) Positive GDP

The official definition of a a recession, is two consecutive negative quarters of GDP (Gross Domestic product). Research is showing that in spite of a spike in unemployment, economists are predicting that this third quarter will result in positive GDP.

One could say, that while the economy is not yet booming, every month it is becoming less bad.

d) Some of the worse markets are getting better

The three states that led the boom and enjoyed the most appreciation, (Florida, California and Nevada), were also the hardest hit by the economy and have led the nation in foreclosures and short sales. The good news is that these markets are starting to make modest come backs.

For example, even South Florida (where I happen to reside), the Florida Association of Realtors(R) show sales of existing homes and condos continued to post gains in May, the 9Th consecutive month to month increase.

Sales of single family homes were up by 47% in Broward County and 76% in Miami-Dade county compared with May of last year. Even condo sales rose by 25% in Broward and 36% in Miami Dade.

e)The Stock Market enjoys its best quarter since 2003.*

On July 1st, the Wall street Journal reported that; "The Dow closed the second quarter at 8447, up 11% or 838.08 points for the last three months."

They went on to report:

"It was the best quarterly performance for the Dow since the fourth quarter of 2003, early in the last bull market. The quarter marked a period of healing for financial markets around the globe."

The wall street Journal also had a headline on June 16Th

Home Builder Shares Up, Housing Starts Top Street View

The article went on to report: "Shares of home builders traded higher, after housing starts showed further signs of stability in the sector."

Again for the rest of this and other great articles check out WSJ.com. *A word of caution in regards to quoting information about the stock market, as even though it finished the second quarter up, it is still a fairly volatile economic indicator. I have the Dow programmed into my I-phone, and check it regularly. Please do the same thing, and be sure that the Dow is still doing well, before you communicate this benefit to the customer, and potentially end up with egg on your face. So what does all this mean to us, the new home sales professional slugging it out and trying to sell homes out there in the real world?

Firstly, please don't quote my opinion or even your own, instead get in the habit of finding the data, having it available and then quoting "Research shows...".

For in every article that has tinges of positive news there are always warnings and disclaimers. And there are plenty of smart customers out there who are using this economy to justify their ridiculously low offers and will go to war with anyone who attempts to point out that there is a new R word in town, RECOVERY.

The best use of this data is to both use it as a proactively as positive reinforcement for investing now, as well as being prepared when managing objections such as "I don't want to buy now / what if we are not at the bottom of the market?" or "What if the recession gets worse?"

With that in mind, lets quickly recap the 6-Step Formula for Managing Objections. Please remember that very rarely do we make the actual objection go away, instead we can challenge the customer's mindsets and cause their perception to change.

MANAGING OBJECTIONS

1) LISTEN

Listen with empathy not sympathy. Simply say "I hear you". Never agree with the objection.

2) REFLECT AND MINIMIZE

Repeat it back and attempt to make the objection smaller.

"I hear you, you feel the price is a little too high?", "The bedroom is a little too small?" etc.

Often when customers hear the objection repeated, it goes away.

3) QUESTION

This is the most frequently overlooked step. Before we can provide a cure, we have to know specifically what ails our customer. Questioning has three parts:

a) Compliment the objector. i.e., "That's a great question, I am so glad you asked."

b) Preface your question with 'Please help me understand..."

c) Always ask an open ended question, those that begin with "What/ how/ where/when/ tell me/ share with me." etc.

4) ANSWER THE QUESTION

Always with a preplanned answer, and typically either using a "Research Statement" i.e., "Research has shown.." or a "Feel, Felt, Found" / "Third party testimonial" i.e., "Other homeowners, Mr & Mrs Jones, felt the same way but when they moved in they found that..."

5) CONFIRM

"How does that sound/work for you?" etc.

6) MOVE ON

Don't sell past the close. Trust yourself, and move on.

I have Role-Played with many fine sales teams across the country objections regarding the economy. So here is a hypothetical response to an objection such as "I am not sure if we are at the bottom yet / I am concerned about buying in this economy." Etc.

SALES GENIUS (Steps 1 & 2)

I hear you, your a little concerned about the economy?

If the objection persists then continue with step 3

SALES GENIUS (Step 3)

Please help me understand, what are your concerns?

When the buyers respond with words to the effect of, "What if prices continue to go drop, or what if the market gets worse?" then continue with Step 4 and answer the objection.

SALES GENIUS (Step 4 & 5)

I am so glad you mentioned that, it's a great question. (Pause)

Many of our recent home owners here at (Sunny Acres) felt the same way, but have found that their buying power could not be stronger than it is right now.

Our research has shown that there are many real signs that the economy is improving, in fact the Wall Street Journal has reported that housing starts rose nationally in May by over 17%, that national inventories shrank for the 24Th straight month, and the stock market enjoyed its biggest quarterly gain since the last bull market in 2003. Even hardest hit markets like Miami-Dade County in Florida, their single family home sales have increased by 76% over the same month last year. Isn't all of that data incredible?

When you add to this the fact that here at (Sunny Acres) by (ABC Homes) we have re-negotiated with all of our sub-contractors, allowing us to pass on these savings to you, giving you the best value we have ever given! Plus the record setting low interest rates and the little time remaining to take advantage of the eight thousand dollar stimulus tax savings (for first time buyers only), our homeowners have found that there is no better time to invest than right now. Wouldn't you agree?

Let them think, when they agree, simply ask for the sale. So with pen in hand, and paperwork on desk, ask:

SALES GENIUS

Since you agree that now is the perfect time to invest in a brand new (ABC) home here at (Sunny Acres), do you have any other questions before we begin the paperwork?

Then start writing. "Cling, clang" another closer just got their wings!

For the official New Home Specialist Objection worksheet, please email me at: roland@newhomespecialist.com

TRAVELS AROUND THE COUNTRY

Recently I was at The Lake Club, the most prestigious community at Lakewood Ranch in Sarasota, Florida. Here we are with Miranda Oswald and her team, and in the center is Kevin Favre of London Bay Homes, showing very capably how to demonstrate the benefits of their step-in Roman Shower.

Below are the brand new additions to the successful sales team at Minto Communities in South Florida, with their fearless leader, Jack Appleman. A Canadian based builder that we at the New Home Specialists have been privileged to work with for the last few years in Florida, and who last year defied all the odds by selling almost 500 homes in their five Florida locations.

Here is the graduating class of Summer 2009 with their "Smart Start(TM)" Diplomas, after having spent two and a half grueling days with yours truly. Two days later Barbara, standing between myself (the old guy in the blue shirt) and Jack, went back to her community at Olympia in Wellington and sold a brand new home to a customer on their first visit. We at NHS continue to be so proud of all of their hard work and discipline in following our proven systems and for their well deserved continued success.

Next is the terrific team at PMC Homes in Tulsa, Oklahoma. Just looking at the picture has to make you chuckle. I always believe that training should be both fun and interactive, making learning both enjoyable and more meaningful, and this team is always a pleasure to work with.

We spent some time in the classroom recapping Model Demonstration skills, then went out on-site and Role-Played. In the picture below Don is demonstrating to Tina and Lauren the benefits of the over sized back yard, and then the easy to clean shower! They all did exceptionally well. The next day we recapped Advanced Closing Techniques and then we Role- Played what we call "The Closing Game". This is where the salesperson takes me through their step-by-step recap close, and then asks for the sale. The first time I say no. The salesperson has to manage my objection and then ask again using a different closing technique. This happens four times, then on the fifth time I acquiesce and agree to go ahead with the sale. Just like a golfer on a driving range, the idea is to create the muscle memory for closing, so we can be fully prepared when we meet with real customers. Below Theresa is effectively "closing" Courtney and myself.

SALES HEROES

First sales hero is Amy Willey , pictured below with her husband. Amy has been writing to us for months at NHS, asking for training material and downloads and has been using every tool in her artillery to make sales in her tough Maryland market.

Here is an excerpt from an email from Amy,

From: AmyWilley
Sent: Thursday, June 04, 2009 8:00 PM
To: Roland Nairnsey

Roland,

I forgot to give you my May update. I sold two homes in May. One was my model home for a leaseback investment (and it settled in May), and the other was a to be built home to a family I had worked with for two months. They just couldn't make the decision, so I made it for them by sending the contract, and they sent it back with the money. This market brings out all creativity inside of you to get the sales. I will keep you posted on what June brings for me. Thank you for all of your assistance and support. I keep reading Bob's books over and over to get the information ingrained into my brain.

Best Regards,
Amy Willey

As Muhhamed Ali says:

"One who is not courageous enough to take risks will accomplish nothing in life."

Well done to Amy for taking a risk, sending the agreement and being rewarded with the sale.

Next sales hero is Scott Baughman. Scott has worked with us for many years, mainly as a Sales Manager first in Atlanta, and then for Premier Homes in Pueblo and the Springs in Colorado. He has attended four New Home Sales Boot Camps(SM), three Serious Sales Management(SM) programs, as well as various on-site training programs, Role-Playing and video conferences. What makes his story exceptional is the way he has adapted to change and embraced adversity. His sales team was doing well, (in fact last year, Kacey had been a former sales hero of the month). Unfortunately because of the tightening credit market Scott was forced to let his complete sales staff go. In order to help his builder survive, Scott was forced to sit in the model, role up his sleeves and start selling homes. This is what Scott sent to us in an email.

From: scott baughman Sent: Monday, June 29, 2009 2:32
PM To: 'Bob Schultz'; Roland Nairnsey, Subject: Thank you...

Dear Bob and Roland –

I just wanted to send you a quick note to say THANK YOU for all of the training on how to sell more new homes – quicker – for more money AND information on how to successfully implement what we learn on the training. I just finished a week with three net sales for the week – So far I am at nine net for the month. I have three more close to writing and I hope to sell at least one more before the end of the day tomorrow.

We are pretty consistently selling between 8 and 10 per month on average using the training that I received and implemented from you.

THANK YOU!

Scott Baughman

PS. The figures I just gave you were for June, in May I sold 7 in the Springs and 6 in Pueblo.

Some were easy some were hard, but the bottom line is that by following the process we got em!

Read more about Scott in an article I wrote for SMI magazine about red hot managers. Hats off to Amy, Scott and all of your working so hard to succeed in this tough market.

FREE DOWNLOADS

Email me at roland@newhomespecialist.com and clarify which dowloads you would like.

>Objection Worksheets

>Red Hot Managers Article

Finally it wouldn't be a real blog from me if there weren't a few pictures of my baby, Max. Time is flying as he is already fourteen months old. I can't believe how madly in love I am with the little fella, and how much I treasure every moment with him.

Please feel free to write to me at Roland@newhomespecialist,com with any comments questions or stories.

Happy Selling!

Coach Roland

NewHomeSpecialist.com