Real estate is one of those industries that can be feast or famine, meaning that when it’s good it’s really good, and when it’s bad it can be pretty tough to scrape by. If you’re having trouble making the type of commissions that you really want and deserve, learning how to close is the single most important skill that you need to learn in order to take your earning power to the next level.
Agents have been asking me for a way to break into the luxury market for a long time and I always tell them that the best way is to really know their market.
But one of the secrets that I’ve begun sharing in my Million Dollar Agent Masterclass is how to close bigger deals.
When hundreds of thousands or even millions of dollars are on the line for your client, you have to be the go-to agent. That means knowing how to close the deal and making sure that they can count on you to get them the best possible price.
Here are twenty tips that will help you to become a better real estate agent.
Being perceived as happy, upbeat, and positive is one of the best secrets to getting people to like you quickly. It’s been proven that people gravitate towards happy people, and it’s more likely that they will want to be around you if you are always bright and happy, as opposed to concerned or complaining. An optimistic outlook will inspire your clients to act because they will feel more confident as a byproduct.
2. Have Enthusiasm
Being energetic is attractive to buyers. Knowing that you want to move on new information is essential to the process of making sales. The more energy and excitement that you bring to the table, the more eager the client will be to take action. When you are lethargic, or tired it shows that your heart truly isn’t in your work, and sends the wrong message to buyers. Sometimes, agents don’t realize that they are sending the wrong message to their clients.
Why is this so important?
Think about the biggest purchase you’ve ever made–now think about the person who helped you make that purchase. Was she sincere and excited, or a little tired and spacing off?
Have enthusiasm and show that you care about your client’s needs just as much as they do.
3. Ask The Right Questions
Asking the right questions helps you to learn more about where they are coming from and what they are wanting. When you know what they want, you know what to do to get it for them. Sometimes, they want to be told what they want, and other times, they want you to find it out on your own.
That’s why it’s so important to keep asking questions at every stage of the real estate life cycle.
Opinions change, don’t just ask a few questions up front and then forget about it. Learn to be investigative and find out what your clients are thinking and feeling throughout the process.
4. Leverage “Yes”
“Yes” is one of the most powerful words that we have in the English language. Getting your clients to say “yes” is one of the greatest feelings in the world. In order to get them to be open to saying yes to something big, get them open to agreeing to something smaller.
Essentially, use the foot-in-the-door approach to make a bigger ask seem like a smaller jump. Instead of trying to sell them something that would be perfect, but falls $100,000 out of their price range, try getting them to say yes to something at $50,000 above first, before showing them the bigger house.
5. Eliminate Fear
In this business, you can’t be afraid of rejection. There are thousands of great, highly qualified agents out there. You won’t get every single deal, but you don’t have to. Do your best and eliminate the stress of having to get every listing, or close every sale.
6. Money’s Not the Issue
Sometimes, it honestly comes down to the money. But in reality, it’s never really about the money. It’s about the experience, the feelings that the clients get about a certain house, or the rationalizations that they can or can’t make surrounding a certain property.
Don’t let money stand in your way, but you should be budget minded. If they say it’s about the money, look for other reasons for why they might be making that decision. If you can pinpoint them, don’t call them out on it, instead, find a way to leverage it to provide them the best possible home.
7. Find Out What’s Holding Them Back
Sometimes, clients are too embarrassed to ask questions that might be perceived as negative. For instance, clients may not want to divulge that the homeowner’s fees are too high, or that they’d always dreamed of having a walk-in closet. Even though they seem like minor inconveniences they might be enough to deter potential clients from purchasing a property. Ask them what’s wrong, so that you can help them get the best deal.
8. Give Proof Whenever You Can
If you can prove that a home sold for a certain price last week, it helps your client to wrap their heads around what you are telling them. Some agents just tell their clients their opinions and never provide them with any research, printouts, or other supporting information.
It’s not that the clients don’t trust you, it’s just human nature. When you can see factual evidence in front of you, it really helps to strengthen their understanding of the realities, instead of just taking your word for it. If there are any legal gray areas, always get those in writing, and be willing to provide the client with that information to show that certain contractual obligations, such as no pets, are spelled out in the covenants.
9. Have a Strategy
As a closer, you have a simple job: get the client to say yes. When you are working on closing the sale you can take off your real estate hat for a moment, and focus all of your extra energy on closing the sale. Do whatever you have to to make the sale, within ethical boundaries, but don’t stray from your plan.
When you have a strategy you can poise yourself for a better deal for all parties involved.
10. Act Like You Got It
In baseball, the pitcher that comes in to finish the game in the final innings is called the closer. Closers are fierce, usually having fiery fastballs, and jaw-dropping offspeed pitches. Closers exude confidence because they come in when the game is on the line on a daily basis. In real estate, you can exude the same confidence because you’ve closed big deals throughout your career. Acting like everything is in good hands can help your clients to feel more confident in working with you.
11. Be Their Best Resource
Help your clients by being the best resource for them. Answer all their questions, field their phone calls, and provide them with as much information as needed.
Being diligent will pay off in the long run.
12. Create a Win-Win
When you are working with clients who need a little more than you were expecting, be willing to give more and create a win-win. When everyone is happy, they can walk away feeling confident in your service and in their purchase.
How do you create win-wins? It’s simple. Find out what both sides of the sale want, and work to find mutual ground.
13. Don’t Be Shy
Shyness won’t get you the sale. Speak up. Provide strong reasons, and most of all, earn their trust.
14. Be Willing to Walk Away
If you are representing a buyer who can’t afford the full asking price, sometimes walking away is the best strategy to show that you mean business to the seller. In certain situations knowing that they could lose the sale entirely is enough to help them meet your buyer in the middle.
Only do this in situations where you feel very strongly that it will work. It’s not a daily action strategy that you should bank on.
15. Know Your Worth
When you are trying to convince your clients to close, make sure that you are confident in what you are saying. Make sure that you can represent them in integrity and know that you are providing them the best service in the business.
When that happens, you can rest easy knowing that you did everything you could for your client.
16. Ease Their Worries
Sometimes, clients just want to know that you understand where they are coming from. When they see that you care and can empathize with them, then it allows them to relax. You can even add advice on what you would do in their shoes as a trusted advisor, once they see that you understand their viewpoint.
17. Give to Get
Sometimes, you’ve just gotta make an exception or two.
If you don’t want to ask the seller about leaving the furniture, leverage it. Tell the client that you will make an ask or two, but if you are successful they need to make an offer that is contingent on that. That way you both win. The buyer gets the furniture, and you get the peace of mind of having them make an offer before they ask for the kitchen sink, too!
18. Sweeten the Deal
Sometimes, you just need to sweeten the deal by playing hardball with the other side. Coming back to your client and telling them that you were able to get $5,000-$10,000 knocked off the final price can be incentive enough for them to jump on the offer.
19. Be Respectful
Clients don’t owe you anything. Always remember that this is their life and their real estate purchase. Be mindful of that and give them the respect that they deserve as your valued client.
20. Meet Face to Face
When you need to talk about important news or ask for a sale don’t do it over the phone. Find a time and place to have them come in, or go to them. It’s always harder to say “no” face to face, and it can eliminate any “nervous” clients who suddenly want to back out.
Remember, Closing Takes Practice
Before you rush out and start putting these tips to work, remember that closing is an art. It takes finesse, subtlety, and the ability to read people. You will have to judge which tactics to use, in each of the various stages of the real estate life cycle. While there may not be a cookie-cutter approach to every instance of closing a deal in real estate, this will get you started.
These twenty tips are some of the best sage advice that I have received during my career as a real estate agent. However, what really separates a great closer from a decent one is your ability to incorporate your own style, flair, and creativity into the sale. When you are able to come up with your own approaches to closing–that’s when you know you’ve made it!
Got a favorite way to close that you don’t see here? Drop me a comment below.