"Deal Or No Deal"

As Charles Dickens famously said at the beginning of The Tale of Two Cities, "It was the best of times, it was the worse of times."

Sometimes I feel that our economy is like that, there is no doubt that there are some very tough markets where our friends in the New Homes Industry are still suffering, and yet there are others who have been able to adapt, and are beginning to thrive and gain significant market share.

So for those of you who are still going through tough times we truly "feel your pain", as we have been there ourselves many times before. To all of you loyal blog readers we are here to help lift you up and inspire you with our monthly dose of real world training strategies that work in this specific market, and current success stories from around the globe.

First our updated good news.

GOOD NEWS METER

According to major news outlets such as MSNBC:

> Housing construction rose in August, and the number of newly laid of workers seeking aid fell unexpectedly last week, adding to signs that the recession has ended.

> Construction of Multifamily, rose 1.5 to an anual rate of 598,000 units.

> Building permits rose 2.7% in August to an annual rate of 579,000.

> August reflected a 25.3% surge in construction of multi family units.

> Regionally construction rose 23.8% in the Northeast, and 0.9% in the midwest.

> Tough Markets such as Broward County in Florida enjoyed 7% appreciation.

"DEAL OR NO DEAL"

Earlier this year I was blessed to have the opportunity to speak at the International Builders Show in Vegas, with famed presenter Charles Clark III, and the topic was Negotiating. We had a standing room crowd of people from every facet of new homes.

Here is an overview of what I discussed. Please keep in my mind that the Official New Home Specialist Negotiation System (sm) takes at least a day if not longer to teach and is accompanied by lengthy workbooks with rheems of offical planned dialogues and role playing opportunities. The following is an abbreviated excerpt of the program I taught at the IBS 2009 in Las vegas.

ESSENTIAL RULES OF NEGOTIATION

> Why do customers negotiate?

Typically, ego, pride, peer/media pressure, behavioral style, culture, and to save face, but very rarely out of financial need. Once we understand this, we can realize that negotiating is just a game, and it is our job to give the customer the satisfaction of feeling as though they have won the game, yet we make the sale at an amount we can afford to accept.

8 ESSENTIAL RULES

1) CREATE A WIN-WIN

"We will never fear to negotiate, but we will never negotiate out of fear."

President John F. Kennedy

Dr. Covey defines a win-win situation as being good for both sides. The customer needs to perceive that they receive a great value, but we also need to ensure that our companies, are also comfortable with the proposals that we are submitting. If not it would either be a lose-win, or a win-lose, neither of which is good for you or your customer.

2) Confirm Ownership

There is no point in even beginning a serious negotiation until the customer has confirmed that they are actually interested in buying your home. Otherwise you will be simply negotiating against yourself, and the customer will merely "shop" your low price around town. So the next time a customer asks whether you will negotiate, reply with words to the effect:

SALES GENIUS

"So this is a home you would like to own?'

If they say yes, then continue. If they say no, then don't be afraid to put your papers away, and explain that you will be happy to help them when they are committed to going ahead.

3) NEGOTIATE OTHER THAN PRICE

Once you have established that yours is a home that your customer would like to own, than it is important to make a list of the facts that will impact the sale, that way you can learn to negotiate items other than price.

Here is the checklist of items to confirm before you enter into a negotiation:
1) Going ahead today
2) Home (model type)
3) Home site/location
4) Included features
5) Luxury choices
6) Financing or cash
a) If financing, have they been recently approved by a lender.
b) If cash, do they have proof of funds to close.
7) Amount of Initial investment
8) Move in date
9) Home to sell
10) Anyone else involved in the buying decision
11) Anything else we should know about (no surprises)
(Then last but not least, ...drum roll please)
12) Total Investment

Admit it, before reading this blog, you thought negotiation was, all about price. Look at all the other elements of the sale we need to focus on first.

4) GET TO GIVE

Once you have verified all of the elements of the sale, and have received your customers proposal, If you are able to come back with a counter proposal, it is important that you get something back in return to keep the negotiating experience authentic for the customer and to cause them to appreciate that they are really getting an exceptional value.

For example,
i) Take occupancy two weeks sooner,
ii) Increase the initial investment
iii) Get your loan approved today
iv) Remove some of your luxury Choices

I grew up selling brand new homes in South Florida, where it was expected to negotiate; and frequently found that there were many rounds of “FACE TO FACE” counter proposals, and each time I would get something a little extra back from the customer.

5) START HIGH STAY HIGH, (IF YOU HAVE TO, THEN COME DOWN SLOWLY)

I'm not talking about the seventies here, but instead, shock your customer with your first counter proposal by coming down by a ridiculously small amount. Be sincere and kill your customer with kindness, but your first return salvo will be a shock to them and reeducate them that their original offer was blatantly ridiculous.

6) ALWAYS COUNTER WITH AN ODD NUMBER

Never meet a customer half way, as what accounting school would ever advocate that formula for doing business, and if you are in a position to counter than make it an odd number so that your customer will believe that your accounting management team has labored over the specifics to give them the best possible value.

For example if your asking price was $300,000, and let’s say your customer offers, $250,000.

(After confirming that they would like to own your home, and acting shocked, and asking “How they arrived at that number?”, as well as explaining that you don’t take offers, and talking about the Smart Selling technique of Checkerboard pricing.)

If you come back with a counter proposal “in person”, after confirming that they could move in two weeks sooner a counter proposal of $1,2345.58, would be apprropriate.
(Say cheese, smile and kill them with kindness, smother them with your closing love!)

Be prepared for the customer to be shocked at first, maybe even a little angry. But by you coming down by such a small amount their next counter proposal will be much higher, until you eventually arrive at a figure you are all comfortable with.

7) NEVER COMMIT
Even if you believe you have arrived at an amount that you feel is acceptable to your company, since you are dealing with someone who wants to win the game, of negotiation, then turn the tables, and instead of letting them see you sweat, make them sweat a little.

If you agree or commit too soon they will think that you have been playing a game and will go home and develop a huge case of buyers remorse, or worse still keep shopping your price around town.

Instead have an addendum pre-written for anything less than full price that they have to sign that states;

“Purchaser acknowledges that they are making an offer that is (substantially) less than the published price and that this offer may be rejected for any reason whatsoever.”

Then you ask them,

SALES GENIUS
“This is somewhat unusual, and there is a strong possibility that your proposal will not be accepted as written (pause). With that in mind, would you still like me to turn it in?”

Think about what you have accomplished,
a) They will go home and wait on tender hooks to see if they have been able to win and purchase your home for the price they want, as opposed to continuing to shop around.
b) If you can accept their proposal they will feel like they have won.
c) If you can’t accept their proposal and need to meet them in person to present your counter proposal then at least you have conditioned them for that, as opposed to inadvertently misleading them by causing them to believe that their offer was acceptable.
d) Sometimes they will not want to take the risk of losing their home and will ask you to go back to the original acceptable asking price.

This happened to a great salesperson named Piera in South Bend, Indiana who tried this technique, after her customers Realtor insisted that they make an offer twenty thousand less than the original asking rice. Piera had the customer sign the addendum. That night the customer called and said that she couldn't sleep and could she go back to the original price. Yes you can! One little technique, made the sale sand saved the company twenty thousand dollars!

8) NEVER NEGOTIATE OVER THE PHONE

If you CALL your customer back to give them your counter proposal, put yourself in their shoes and ask yourself how they should react. They are at home the kids are screaming, the economy is hurting and their favorite team is losing on the TV, and there you are trying to sell them a home.
Since we agree that Buying is emotion backed by logic, where would the more logical place to present your counter proposal be? Exactly, back in your model.

When they are at their current home and they want you to spill the beans they are focused on one thing and one thing only price. Let’s face it they are not going to live in the price; they are going to live in your brand new home.

So tease them into coming back, by saying:

SALES GENIUS
“I would love to give you that information but it’s a little too complicated,
in order to prevent any misunderstandings we need to meet in person.
Is tomorrow morning at 11:15 good, or the afternoon at 4:45 better?”

For those of you out there thinking what if it’s not complicated, I would venture to say from decades of personal experience that anything communicated electronically, as opposed to in person can and usually will be misunderstood.

So in order for you to keep the experience authentic and to raise their buying temperature back up, when they return grab a clip board and walk them slowly back through the model, and the available home or home site. Act as though you are confirming all of the details, but we know that your will have re-created the emotional urgency necessary for them to now make the buying decision.

Then it is safe to sit down and go through your counter proposal, remembering to confirm all the other facts and end with the total investment.

COACHING TIP

I know that negotiating at this level is not for the faint of heart, and it certainly takes some practice.

Please remember though, that you didn’t start this, your customer did by wanting to make you an offer. If you don’t give them the satisfying experience of playing the “Negotiating Game” convincingly they will continue to make ridiculous offers, and keep you on their treadmill as opposed to you gaining control, and making a sale that results in a win-win for both parties.

ROLAND ON THE ROAD

Back in August, the Charlotte SMC organized a Breakfast where I had the honor of being the speaker for the morning.

The topic, was "How to Communicate, Connect and Close more sales.

We had over eighty eager New Home Sales professionals, who welcomed me with that typical Southern Charm for a great program. While I was there I was able to reconnect with the incredibly positive Sales team from Simonini Builders, pictured below.

Also while I was there I spent a day with our old friends at Shea Homes, America's largest family owned builder. We spent the day working on Advanced Negotiation techniques.

Next Stop Maryland to work with the team at Caruso Homes. After initial training from all of us at The New Home Specialists and a "Fast Track" program with myself; here we are on a Saturday morning working on Model Demo role playing. The photo on the right we are standing on the balcony, overlooking the foyer and the salesperson is asking me for the sale, simply by saying:

"Is this the type of home you'd like to own?". Every single member of the team tried it so that they became completely comfortable asking simple but effective closing questions.

Here is a picture of compnay owner, Jeff Caruso and myself at a Washington Redskins game. Who said travel wasn't fun?

Next stop Fayetteville, North Carolina, to continue working with the Caviness and Cates team. Here we are role playing their Closing process.

After training we blew off steam with a night of bowling followed by laser tag. Hailing from Britain, I was a little confused, and tried to kick the ball!

Just last week, I was once again with our pals at Ideal homes in Norman, Oklohoma. The topic was Appointment Setting and then we worked on their Hot Prospects which we call Customer in Process (CIP). They are on track for almost a record setting year and under their fine mangement team are amazing implementers of our processes, and truly a great sales team, acomplishing extraordinary results in this tough market! They have actually increased their market share. We are very proud of them.

If you would like a free copy of the Cip form, please email me at:

Roland@newhomespecialist.com - CIP FORMS

SALES HEROES

This blogs award goes to Ingrid Prang, a delightful young lady in South Florida, who is selling beach front condominiums for Minto Homes. Ingrid had an appointment with a customer who she hadn't met yet, and gave me a call to strategize how to make the sale. After about an hour long conversation; where I effectively took Ingrid through the Customer in Process (CIP) form, we had our strategy in place. I sent Ingrid an email confirming every last detail. A few days later I recieved a thrilling call from Ingrid, saying that the customer came in with his wife, and bought the home on the first visit at full price for $850,000!!! (Remember this is September 2009 in Florida, not 2005!)

Here is a copy of the email with the strategy, so you can see how much preparedness it takes to succeed at the highest level.

From: Roland Nairnsey Sent: Wednesday, September 09, 2009 3:29 PMTo: Ingrid Subject: Follow up to last nights customer call
Ingrid,
Thanks for calling last night regarding your customer for Villas By the Sea. I am thrilled that you called, as we are truly here as a resource for exactly this purpose to help you strategize, and make those extra sales. As a recap of what we discussed.
Customer Info:
>You have a gentleman interested in a beachfront unit that is in the process of coming back on the market.
>You are asking $865 and he offered $820, which we are unable to accept.,
> He is comparing you to Competitor, which you have done a great job of making his Realtor aware that may not be there to warranty the home or take care of the community guidelines and amenities.
> He may feel that the other unit is larger and has slightly more included features, but unlike yours, it is not directly on the beach front, but is across from the beach.
> He is arriving Sunday night and bringing his wife for the first time to view their unit and our beachfront home and make a decision. He has shared that she is highly emotional, (may be a tiger, expressive).
> They are starting the day with the competitor and ending with you and VBS.
Goal
Since buying is "emotion backed by logic", prepare a presentation that will be highly emotional for the wife, and cause him to see the incredible value he is already getting, so that the sale becomes irresistible; and your meeting culminates in him purchasing at VBS at the correct amount, creating the perfect win-win.
Strategy & Preparation
a) Go over this week at sunrise, and take some photos from the patio of the sun rising over the Ocean and beach and blow them up to large sizes and stick on poster board.
b) Talk to Jack and see if we can figure out how much that home would be to duplicate at today's prices. In other words he was quoted the price it was sold to the previous customer, but what if we were to put it on the market today at full retail, let's hope it should be somewhere in the $900's.
Appointment
a) Meet at your sales office and give them both an animated, detailed, emotional overview of VBS, and there specific OCEANFRONT home, using all the props, and taking them out back to see the beach and dip their toes in the sand. Mention the words "Oceanfront" as much as you can as well as "Quality", "warranty", "Minto care" "financial stability, "peace of mind" as well.
b) Start at the Beach club, and take as long as you can to walk them through every facet of the club, admiring views, and ask them to imagine their twins coming down and enjoying the club with them. Ask them "If they can imagine their family enjoying the beach club this thanksgiving?".
Once they are emotionally involved with the club remind them of the financial stability of Minto and how that will give them peace of mind in knowing that your "Community investment" is very stable, and you won't have any surprises, unlike the uncertainty of the other project that they are looking at.
c) Walk over to their building, stop at the outside and admire the unique architecture of your building, and point out where there home would be.
d) Demonstrate their home, start with going straight back to the patio and spending as much time as humanly possible admiring the OCEANFRONT view. Show them the photos of the sunrise, and ask them "If they could picture waking up to that breathtaking sunrise over their beach every morning?". Also ask them " Wouldn't it be convenient to wake up and go straight down to your beach without having to worry about crossing the street, and at night go for sunset walks on the beach any time you want?"
e) Ask for the sale.
"Do you have any questions before we go back and review the paperwork?"
Followed by ten seconds of profound silence. If they have no objection go back and write it up. If he mentions the price, then say words to the effect of
"I'm so glad you mentioned that, I have something back at the office, regarding this incredible opportunity
which I should have shown you before."
f) When you go back, on your desk, have a written presentation showing what their home should be at today's Retail prices, and what others
coming in would have to pay, and show them their full savings. (If you have confirmed this with Jack first), You can even apologize and say
words to the effect " I really shouldn't have given you that old price, I made a mistake but Jack says if you go ahead today he will honor it."
g) You wait a second and then start filling in the agreement and say :
"How would you like your names to appear on the agreement?"
and start writing.
How does that sound?
Roland

TWO MORE REPEAT HONORABLE MENTIONS

Amy Willey is a past Sales hero. I received this email from her regarding her conversion ratios. Beginning with the end in mind, we must set goals for our selves, and measure, our success, so we know whether we are moving forward and improving or not. Otherwise we are like a rudderless ship. Check out Amy's incredible closing stats!
Roland,

Thanks Roland, I truly appreciate your support! Well the traffic into my community is low, and my conversion ratios are this:

July-- 9 traffic, sold 5 firm homes 55% (All sales were written within week of initial visit)
August--10 traffic, sold 4 firm homes 40%(3sales written within week of initial visit, 1 homeowner referral)September--6 traffic, sold 4 firm homes 66% (1 of these was a contingency that bought in Aug., flipped in Sept. I didn't count the contingency in Aug sales)

I don't like to talk about this, as I don't want to jinx myself, as I am definitely blessed, and I have a sales process from reading your books and putting it together with my mentor, that works.
Best Regards,
Amy

Last but not least is Tonia Abrahamsson who last year was a sales hero by receiving the highest Video shopping score I have ever given, with a whopping 226 out of a possible 250 points. I have been working with her team on Self Generating Qualified Traffic, one of the best sources being Realtors (where budgets allow), and we discussed in detail hosting Realtor Breakfasts. As Nicki Joy says, "It's not what you know, but what you do with what you know". Here is an email I received recently from Tonia:
Hello Roland,
Just wanted to share some exciting news with you.
Artesia has done three Realtor events between end of August and September. To date, we have written 10 purchase agreements between those three offices.
We understand how important it is to reach out to our realtor friends. With the turnover within realtor offices, these regular events always seem to capture a realtor or two that may have not visited our community otherwise.
Hope all is well.
Best Regards,
Tonia

I am very proud of these three incredible sales people, plus all of you out there working so diligently out there in this tough market. Please send me emails with your stories at:
Roland@newhomespecialist.com

Happy Birthday Bob

October 11th is Bob's Birthday. We had a great party in the office. Here he is blowing out the candles on his Miami Dolphins cake!

FREE DOWNLOADS

Remember if you want the audio version of "Deal or no Deal", please write to me at;

roland@newhomespecialist.com - Deal or no Deal.

and/or the Customer in Process (SM) forms (CIP)

roland@newhomespecialist.com - CIP

and I will be happy to send it/them to you.

Last but not least two photos of my beloved son Max, who incredibly is now almost 18 months.

Please write to us with either your questions or success stories.
Meanwhile, stay positive and have a great month of selling
Coach Roland
newhomespecialist.com

There's a new R word in town...RECOVERY

SALES OF NEW HOMES SURGE

That was the headline all across the country on July 28th, so for those that read last months blog, I hate to gloat but.....I TOLD YOU SO!!!

Since all of us are in the persuasion business, where perception is king, it is time for us to jump on the bandwagon with gusto and help our customers understand that "Now" truly is the perfect time to buy. While the good times may not return the way they were a few years ago, most experts agree that this seems to be the "beggining of the end" of the recession.

Last month I posted some facts that we could use in our dialogue with our customers, so here are the latest facts.

> Sales of new homes in June jumped 11% from May.

> It was the third month in a row of higher sales, and the most robust sales pace since November.

> Inventories of homes for sale dropped to 8.8 months in June, down from 10.2 months in May and the LOWEST monthly supply since October 2007.

For the record, experts agree that a normal supply of new homes is between six to seven months for a healthy balance between a supply and demand driven market.

Says Bernard Markestien, senior economist at the National Association of Homebuilders

"Evidence is mounting that we have turned the corner for sales, and that is a precursor for a recovery."

There it is my favorite R word, RECOVERY, after my own name of course.

So while the naysayers may depress us with talk of median prices still dropping, and that this may end up being a jobless recovery, and cash for clunkers worked so well they are out of cash, and so on, let's "dare to be different", and all across the selling fields of this great land lets stand up and be counted (Cue military music) and start becoming the voice of optimism, and the purveyors of positivity. Let's start instilling in our customers a sense of urgency that an opportunity like this to invest only comes along "once in a lifetime, and you would hate for them to miss out".

OK, now that is off my chest let me share with you where we have been all across the country, and all of the real world success stories that are happening as we speak.

NEW HOME SPECIALISTS ON THE MOVE

(This is my new photo symbolizing travel, how do you like it? That's me under the wing scratching my head and sobbing, as I realized that I had just lost my luggage for the umpteenth time!)

Here I am with the newest recruits at Minto Communities who are still doing incredibly well in their communities across South Florida, and one in Port St.Lucie. As you will have read in previous blogs we at NHS have been working with Minto for a few years, and they fully believe in hiring candidates with the highest potential, and then allowing us to instill in them our proven sales processes. The management team has recognised that training isn't a one time event, and should be practised continually to keep their sales team sharp and always growing and improving.

As mentioned a few blogs ago, we firmly believe that the real growth spurts for sales skills occur when we get out of the classroom and actually role play skills that we have previously discussed.

Here we are on site, in a gorgeous model numbering a floor plan and preparing exactly what to say to a customer to maximize their involvement, and then we are role playing Closing. Heather is doing a great job of taking me through her recap close, while Lori, Barbara, and Jacqueline look on.

I was just back at Minto with their whole sales team discussing "Adapting for Different Behavioral Styles", and learned that Lori who had been promoted from reception to sales, had already earned two sales, and Barbara was already up to eight sales! Congratulations to the whole team, we are very proud of all of you!

For information on the Recap Close, please write to me at Roland@newhomespecialist.com - Recap Close.

Next stop Annapolis, Maryland. Check out the beautiful scenery!

We just started working with Caruso homes in the Maryland/ Virginia area, so I was in town hosting a recruiting night. We are working closely with them on an accelerated implementation of our systems, so I am going to hold off sharing any more details for the time being, because I know that in a few months we will be bragging about them as the next wonderful success story.

Next stop, Memphis, Tennessee, with the team at Magnolia Homes. Owned by the delightful mother, and son team of Karen and Reggie Garner, and managed very ably by Josh Holley.

This visit we began with Video shop reviews and coaching and then created the training program based upon areas that we all agreed we needed to work on. As a tip, whenever you have elements of shops that are good, it is a wonderful training tool to show those segments (with the salesperson's permission) to other team members, to show them "how it should be done". Actions speak louder than words, as they say.
Here we are watching James Wachob's video shop. James was a sales hero on this blog last fall for his excellent shop, and again his most recent shop didn't disappoint. In Wales (part of great Britain, not the mammal), people name you for your profession such as Billy the Baker, Chris the Cook, Sally the... well you get the idea. From now on I am just going to call him, "James the Closer". James has attended three Boot Camps (sm), and heaps of on going training and is as serious a student of closing as I have ever met. I like to say:

"Your style may cause you to be memorable, but its your process that makes you rich!"

Roland Nairnsey

James has an incredible closing process, so good that if we were running subtitles on the screen, you would hear learned dialogues word for word, yet he makes them seem like his own. Again, great job to James the Closer!

Here we all are at Magnolia Homes having a little pizza break from right to left, are Reggie, Lisa, Andrea, Josh, Karen holding her brand new grandson Shafer, Reggies beautiful wife Jennifer, and her mother.

Next it was Fayeteville, North Carolina for a quick visit with Caviness and Cates to brush up on Model Demo and Closing skills.

They are working hard and getting great results. For the month of July they posted 24 net sales! I am on my way back there next week to work on "Preparing for the main Event" (video shop preparation), Advanced Closing and Closing Role Plays. I have to admit I can't wait as there are many great characters there, and they are always a lot of fun to work with.
After that it was Owensboro, Kentucky, to work with the amazing team at Jagoe Homes. They are doing so well in this tough market that below I have shared the whole story of how we came to work with them, and how they are earning their well deserved success. Here goes;

Jagoe Homes has the WRITE STUFF!Tri-state family Builder builds huge market share by 46%in down economy

If you were to hear about a Builder whose salesteam was Closing1 in 4 customers walking through the door, as of July 2009 would you believe it? Probably not. Well this is exactly the case with Jagoe homes, based in Owensboro Kentucky.

Eight years ago the owners Bill and Scott Jagoe had sought out the services of Bob Schultz and the New Home Specialists, to help give them the sales systems and processes that they realized they needed to create consistency in sales and significance for their family owned business.

After a thorough recruiting process, Dave Crowe was hired to manage the sales team. Dave interestingly came from the funeral monument business and had no prior new homes experience, nor any preconceived notions of how to manage a new home sales team. He was immediately flown to Boca Raton, Florida to consult with Bob Schultz and was thoroughly inculcated into every element of the New Home Specialists proven systems and processes.

Here are Dave Crowe and myself enjoying a mouthwatering dinner at the world famous Moonlite Bar-B-Q. If you are ever in Owensboro you should stop there!Fast forward to the summer of 2009, where of course the United States is suffering through the worst economy since the great depression of 1929, and a strange noise can be heard in Owensboro Kentucky and Evansville Indiana. It is the sound of hammers swinging and homes being built. As competing builders scratch their heads wondering what magic trick has been going on at Jagoe; Jagoe continues to increase its market share, widening the gap between themselves and their competition, with a 46% increase in their core markets.

Says owner Scott Jagoe,
The existing sales team was evaluated, many of whom didn’t make the cut, and many new recruits joined the team by implementing the NHS ten step recruiting process ®. Dave attended Serious Sales Management ® and joined a NHS management mentorship group as well as receiving on going training with the New Home Specialist team. The sales team attended congruent curriculum
based sales training initially with former facilitator Marilyn McVay and then with myself. This included attending Boot Camps (Sm) and on site Smart Start programs (sm), as well as model demo and closing role plays, and in depth Video Shopping coaching and evaluation utilizing the NHS patented system.

Consistent sales success started to blossom, that became sustainable because it had been forged the old fashioned way, though hard work and having the discipline to implement the complete NHS playbook.
Owner Scott Jagoe remembers;
"A few years back when Bob was onsite, a salesperson gave Bob the credit for a sale he had just made. Bob replied, the book and the training are avialable to everyone, your the one that listened, read, tried, and closed YOU GET THE CREDIT."
"We enojoyed a 39% increase in agreements for the first 7 months of 2009, over 20008!"
He continued:
"Our sales team as a whole enjoys a 1 in 4 Closing Ratio, that's not a typo, and we do consider ALL traffic. We keep to the BASICS OF YOUR PROGRAM, sharpen the saw to increase sales skills, and consistently Discover and Close, Discover and Close."
I just had the pleasure of working with the team again at the end of July, to help some new recruits in Louisville get up to speed, as well as a tune up with a few of the existing team.
Scott Jagoe mentions my visit:
"Just last weekend not 24 hours after Roland's training I had a salesperon close on two homes. That salesperson reported to me he used what he learned the prior 3 days from Roland. The bottom line is your program gets results."
In re-tooling their builder story, to add more benefits and involvement questions, they were thrilled to be able to impress their customers with their financial strength while simultaneously creating urgency by being able to say, “That on average approximately a family day is moving into their brand new Jagoe home.”

A bold statement in today’s environment and an accomplishment we are all proud of.

Here we are role playing on site, with Andy, Danielle, Laurie, Dayle, yours truly, Jennifer, Sara and Nathan. Notice Sara demonstrating the homesite with the Soy Bean field in the background, and of course a model demo wouldn't be complete without a famous shower scene demo, to show the spaciousness of course!


SALES HEROES

Christy Dedora

I worked with Christy during a seminar and was impressed with how energetic and engaged she was the whole time. We received this uplifting email, shortly after that which I believe speaks for itself.

From: Chris DeDora

To: Roland Nairnsey

Roland!

I wanted to share with you my experience thus far! I sold 1 my first week here and then 1 each week in the following 4 weeks, so I’ve had a total of 5 sales in my first 6 weeks and I am working on several others. Again, thank you for the awesome training, I refer back to my book and notes often and continue to utilize everything I learned from you! I hope to attend one of your seminars again! I will check the website for upcoming events! Hope you are doing well!

Chris

Chris DeDora
New Home Specialist
Serving All Communities!
Regent Homes

Congratulations to Kristin and Chris for the great job and to all of you working so hard out their and succeeding in this tough market.

I still firmly believe that, "My favorite Attititude is Gratitude", and I am truly grateful for the opportunity to share these great concepts and processes that have helped people improve their careers, and that they take the time to share their victories with all of us, allowing us all to enrich our lives.

By the way look who I ran into at the airport in Washington. Whoever said his personality was like cardboard? For the record, ....Yes you can!

BLOG RECAP

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Recap Close

SALES HEROES

Chris DeDora

And finally a few photos of my pride and joy Max. Not only does he play the paino every day, now he likes to play it standing up! Behold the next little Richard!

For any of the free downlaods mentioned or to ask questions and share your success stories, please write to me at Roland@newhomespecialist.com


Happy Selling,



Coach Roland

Newhomespecialist.com

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

New Microsoft Bing.com Search Engine Takes the # 2 Position

June 1st 2009 Microsoft launched the new 'Decision Search Engine' intent on improving the way search results are displayed. Commercials on national prime time TV show people speaking random words associated with what others asked them as a way to illustrate the frustration of search results on many search engines. Microsoft launched a YouTube channel with the new search engine to share advertisments - www.YouTube.com/Bing. An example of this includes a commercial where a wife asks about 'Hawaii' and the husband begins saying all types of words that have to do with Hawaii such as 'Hawaii 5-0', surf lingo and other items that would commonly come up on a search engine related to Hawaii.

The Bing.com search engine looks at the context of what users are searching for and then makes a decision on which search results make the most sense to display. With the launch of the new Bing.com search engine Microsoft overtook the # 2 position behind Google temporarily jumping ahead of Yahoo.com with 16.28% of the market share. Yahoo moved down to 10.22% of the market share with Google remaining at 71.47% of the search engine market share according to StatCounter reports June 4th.

Microsoft has launched several new cutting edge technologies in the past few months including Photosynth.net enabling users worldwide to combine images creating extremely detailed 'video like' 3D images online. What remains to be seen is if the Bing.com search engine will be a long term competitor with Yahoo.com or Google.com using intelligent search results and new technologies.

Robert 'Dot Com' Jackson
Internet & Technology Expert
BuilderConsulting.com - Building Better Websites & Online Solutions Since 1995
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