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You're Gonna Hate Me for This, But......I Thought We Were Still SALESPeople...

By
Education & Training with Issaquah, Wa.

salesperson with head in the sandI just read a blog where the agent proudly stated he sold a home without ever meeting the clients. Boy, did the agents love that one! They congratulated him on using technology, on getting the sale wrapped up without showing the home--on and on. The guy stated that this was the future of real estate. Don't get all huffy, here. It's terrific when someone demonstrates virtuoso skills at anything. (Okay. My dad could wiggle his ears withint moving his face....). But, let's just think about that a little bit.....

It reminded me of when I was a little kid, and my 2 rambumptious boy cousins had this game where they would see if they could circle their living room without ever touching the floor. They thought it was the thing to do......but I'm afraid the real world didn't think they were socially acceptable! (and their mother had a fit!). The point is that it's easy to go off in one direction, especially when we don't have a lot of tech skills--or we're not very comfortable with people, or, we waste too much time with the wrong people. Technology can look like the answer to our prayers.

Will Technology Replace the Human Interaction and Relationship?

Yes, it's true that

  • Technology has a greater role than ever before in marketing and processing the transaction
  • Agents must get to a certain level of technology proficiency to take advantage of these tools

The Danger of 'Hands Off'--and Why Some Agents are More Comfortable 'Hands Off

I found a cartoon I use frequently in teaching. It says, "I love houses. I just hate people." For those agents who really don't want to form relationships, technology provides a new way to have 'hands off'. Here's the question those who want to rely solely on technology need to ask themselves:

Do you want your commissions to be 'generous' or do you want to settle for dwindling commissions?   

I learned as a CRB (Certified Real Estate Broker) instructor, that there is only one thing that's not cloneable--the people. (I learned that as a musician, too. Player pianos just don't sound like the real thing, if you know what I mean). If you want to earn the highest commissions, you must provide awesome value that a computer/technology can't provide--everything that goes into the professional YOU, Inc. That means you must

  • Form a trustworthy relationship as soon as possible to replace the 'cold communication' of technology
  • Spend time with a buyer or a seller so they will know you're not just after the $$$
  • And, most important of all, keep nurturing that relationship long after the sale (it costs 6-9 times more to get a new customer than to keep an old one)
  • Prove you are worth way more than the money you charge (hint, hint--just using technology is a tough way to try to prove value-added)

The problem is that technology is easy to copy. Once people learn to use technology, it is not a very valuable skill (look at all the call centers that have gone to India, for example. Look at all the tech companies that are in India. We can't compete in the U. S., because our labor costs are too high).

The Next Big Thing--Who Will Make the Most Money?

Daniel Pink, author of the awesome book, A Whole New Mind, says that making bundles of money in technology is so over. His sub-title of his book is Why Right-Brainers will Rule the Future. He states that technology is easily duplicated, that technology workers are not relatively valuable, and that the most valuable 'commodity' next is YOU--the creative, empathetic, professional YOU. Why? There is only one YOU.

The trick: Developing the best YOU that can be. Read Pink's book, where he gives a specific real estate example of how an agent broke out of the normal, mundane same old marketing ploys and, instead, created trustworthy messages that conveyed a very different kind of value system to buyers and sellers. (Wouldn't it be stunning to create a new mind-set about how real estate professionals are viewed?) 

If You Don't Like the Word 'Salesperson'

A friend of mine just did a survey of agents he was teaching. He asked them whether they identified themselves as a 'salesperson'. The majority said they did not. I know this is the case, because, when I was a VP of Development at a major franchise, the agents insisted on putting things on their cards like "Senior Consultant". (I know you'll hate me for that, too, but, in truth, we sell real estate). They just didn't want to fess up they were salespeople. 

Having worked with behavioral profiles as a coach for over 2 decades (like the DISC, for example), I know that certain people love technology and don't feel very comfortable creating deep relationships with people. Those are generally the ones that shy away from the word 'sales' in any form. That's okay. But, don't get pulled into a vortex of believing that selling real estate is not selling real estate. There are specific communication skills we need to hone to relate in a meaningful way to our clients (if we want to preserve those generous commissions). These communication skills are the most important skills we can demonstrate, because they set us apart from what technology can do. (Have you noticed that the real estate companies that lead with the statement 'we are a technology company that happens to sell real estate' charge a different commission structure than the 'full service' company?) Nothing wrong with that--just pointing it out.

The Best of Both Worlds

I'm reading another great new book, Outliers, by Malcolm Gladwell. (He wrote The Tipping Point and Blink). Gladwell studied those who did really, really well in life. Here's what he found:

  • They had to have a sufficient amount of talent and IQ--but high IQ was not necessarily a predictor of success (Einstein's IQ was 150, and there are lots of smarter people in the world who didn't attain what Einstein attained)
  • They had to have some opportunities (Bill Gates and Paul Allen had the opportunity in high school to work in labs with the newest type of computers, therefore getting a head start on others)
  • The biggest determinant of big success in those he studied was that they spent lots and lots of time practicing, perfecting, and performing whatever it was they did (he sites the Beatles' experience of playing 8-hour gigs in Hamburg as a huge turning point in their development because it forced them to greatly increase their repertoire and their technique) 

So, the point is, get really, really good at what matters. (and we each have to figure out what really matters.....) There is no short-cut to success, whether it's playing music, basketball--or selling houses. The good news is that the client is looking for people like you who use technology to support long-term, trusting relationships.

Posted by

Real Estate Training Company        Carla Cross, CRB, MA

Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

I've never met some of my clients. That doesn't mean I don't want to!

Great post, Carla!

Cheers,

Robin

Aug 07, 2009 03:18 AM
Shannon Stanbro
Stanbro Real Estate llc - Lakewood, CO
5280mod.com

No, I am not a SALES person...I am an AGENT who takes my fiduciary responsibility to my clients very seriously.

It is baffling to me that a real estate agent would take a listing never actually seeing the property. The idea is to elevate our service to a professional level. This "hands-off" approach just bolsters the public perception of Realtors as money-grubbing bottom feeders.

What if the buyer comes back with a material defect lawsuit? I don't think a judge would accept "I never stepped foot in the house" as a legitimate defense.

Aug 07, 2009 03:29 AM
Peter Burr
The Buyers Agency, "Empowering Atlanta Home Buyers" - Atlanta, GA
Regional Manager. Atlanta, GA

Great post!  And I hope you enjoy Galdwells book Outliers as much as I did!

Aug 07, 2009 04:45 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Joseph,

We get paid the most when we form the most valuable relationship. Thanks for the comments!

Carla

 

Aug 07, 2009 05:19 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Lane,

What's really amazing is the number of people who didn't call themselves 'salespeople'. As a new agent,coming from being a college piano teacher, I too shied away from the word 'salesperson'. But, as I developed my skills (and sold 40 homes my first year just by true grit), I discovered I could help people make the best 'buying decision' of my life if I could consciously help them through the sales process. That meant developing my sales skills. Otherwise, we have to rely on something outside ourselves to find the motivation (fast market, fear of loss, etc).

Thanks for your comments! Carla  

Aug 07, 2009 05:22 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Edward,

Yes, I believe we will see people less and less. That makes our need to connect via 'cold communication' (Internet, email, social networking) more important. That means translating sales skills from more traditional methods to these other methods of communication. That takes skill--sales skill. Unfortunately, this very important aspect is being pretty much ignored today.

I coached a couple who bought a franchise that said they were a 'technology company that happened to sell real estate'. This company believed that you just provided the leads to agents and the rest took care of itself. The owners became so frustrated because the agents either didn't follow up or had no sales skills to follow up. They ended up leaving that franchise.

Thanks for the comments!

Carla

Aug 07, 2009 05:26 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Rick,

Very insightful comments. It's always the kiss of death to get too smug about "I have it and you don't". As a piano teacher of piano teachers, I saw that happen a lot. As soon as you think you have it made (and look down on others because they don't have the skills you do), you really expose the fact that you aren't very secure about those skills!

Also, your point about not assuming because you're under 30 (or whatever) you have certain skills is so true. As a musician and a speaker, I know that use of technology is as much a personal thing as an age thing. Take a look at the 2009 NAR Technology report. It tells the facts about agents and technology--and where the leads come from. Also, look at the 2008 NAR survey on real estate companies, which tells the average number of transactions agents do. Sometimes we just get caught up in our own worlds and forget to look wider, deeper--and out of the industry.

My best,

Carla

Aug 07, 2009 05:31 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Flat Rate Realty,

Exactly. So, we as real estate professionals have to make the choice as to what we want to charge for the value we provide. The highest value is always the personal/professional value. Your point is so well taken. If we want to get paid the 'big bucks', we must go much further than just expected information and service.

My best,

Carla Cross

Aug 07, 2009 05:34 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

John,

Yes, Nesbitt's book is still relevant. You will also enjoy Daniel Pink's book, because he talks about the limitations of technology (including the money you get paid when you are just 'in the loop' as a human), vs. the $$$ available in the future for creativity.

Thanks for the comments!

Carla

Aug 07, 2009 06:29 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Shannon,

Interesting thought about liability. I see some of the 'habits' agents have gotten into as real possible lawsuit material for consumers. I think we have to ask ourselves, "What can we do for consumers that they can't get from technology?" We also have to ask, "What are some of the assumptions consumers make today that may not be how we work?"

Thanks for your comments!

Carla

Aug 07, 2009 06:32 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Peter,

Glad you enjoyed the book. I highly recommend it to anyone who wants to be inspired--and get clear about what it takes to succeed at a high level. As a long-time musician, I know there's no way to play a musical instrument by either taking shortcuts, or by practicing non-stop for a few days. It's a time-and effort-coordination. Getting good at anything takes a great deal of tenacity. With our coaching clients, we work to help them keep on going and recognize when they are about to get a success.

My best,

Carla Cross

Aug 07, 2009 06:34 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I commented on the post you talk about and told him it is not the way to run a business.  I know sometimes things happen and the customer cannot make the face to face, but we always need to be hands on when we can.

Aug 07, 2009 06:42 AM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Gene,

Good thoughts. I know some agents (see the ones who don't like to be called 'salespeople') and those more comfortable in the world of analytics/technology would rather not deal with human emotions. But, that's where our job becomes valuable and where the commissions lie. Most important, that's where the long-term relationships exist. If we're not in this to help people over and over, and get referrals, it's really tough to treat the business as a first year 20 times.

My best,

Carla Cross

Aug 07, 2009 12:04 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

"Once people learn to use technology, it is not a very valuable skill"  - You can't be really serious here?

Aug 08, 2009 01:51 PM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Lyn,

Thanks for the comment. The point here was that 'technology workers' are easily clonable--and, if a 'worker' is working in a field which hires them based on their technology expertise, that field has become not as lucrative as it was (because more and more people have the skill). Think all those tech. jobs that have gone to India.

If you read the rest of the post, you'll see I didn't mean that using technology was not important for real estate agents, as it is in other businesses. I'm simply pointing out that technology is not the 'solution' for our real estate challenges in itself. Yes, it makes things easier. And, for those who don't want to form relationships, it seems to be the way out.

And, people who don't believe that technology won't replace them (or reduce their incomes), aren't looking at what has already happened (these aren't just developing trends, these are facts):

1. Travel agents didn't provide that 'extra human value' I discussed in the article, and let technology take over the travel business--so they're making much less money today--or are out of the business.

2. Technology companies (agents) that sell real estate don't charge as large commissions as those companies who create 'human value'. The biggest reason our commissions have continued downward (about 1% in the last few years, according to studies), is that the consumer doesn't find as much value in the service as they did--and they can get the information on the Internet.

So, the bottom line is, "What makes us so valuable that consumers would be willing to pay more than what technology can provide?" This is a difficult question for many agents to answer, and requires a whole paradigm shift from what we used to provide as value (or at least we thought we were providing value). I'll write another blog on this soon.

Just trying to help those who provide terrific service and are worth much more than they charge to keep their positions in the marketplace....

My best,

Carla 

 

Aug 09, 2009 05:24 AM
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

Wow! I don't know how I missed that post. Sounds crazy. I can't imagine a real estate transaction without meeting the principles.  Somehow I don't  think I'd get the same fufillment if I actually handled business that way. It's weird to me- like writing an offers for buyers without having seen the house myself. I jus can't do it!

Aug 09, 2009 10:59 AM
Jennifer Hillegas
Sign Your Deed Realty - Rome, GA
Every Seller Does It!

Carla,

 

Thanks for the insight!  I can't wait to read Malcom's book!  I have Blink and the Tipping Point on my ipod.  I love hear books on audio.  I use technology and embrace it as much as possible to be more efficient. however, I crave and love seeing people and interacting with them so much that I door knock as much as possible to cultivate the face to face relationships that help build your business because face it not everyone embraces technology........

I heard you speak at the Exit Realty Convention a few years ago and it was refreshing to hear you!!!! Have a great day!

Oct 08, 2009 12:41 PM
Jennifer Hillegas
Sign Your Deed Realty - Rome, GA
Every Seller Does It!

Carla,

 

Thanks for the insight!  I can't wait to read Malcom's book!  I have Blink and the Tipping Point on my ipod.  I love hear books on audio.  I use technology and embrace it as much as possible to be more efficient. however, I crave and love seeing people and interacting with them so much that I door knock as much as possible to cultivate the face to face relationships that help build your business because face it not everyone embraces technology........

I heard you speak at the Exit Realty Convention a few years ago and it was refreshing to hear you!!!! Have a great day!

Oct 08, 2009 12:41 PM
Carla Cross
Issaquah, Wa. - Issaquah, WA
Carla Cross Seminars, Inc. - Real Estate Coach

Hi, Jennifer,

Thanks for the kind words. Yes, those are great books! I really enjoyed speaking at the Exit Realty Convention--that theater in the round with the piano on stage was a challenge (rock star experience, anyone?). Hope I can do it again.

My best,

Carla Cross

Oct 09, 2009 06:10 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Well, we are in sales and I'd never hate you:)

I admire and deeply respect you and your advice.

 

Feb 10, 2015 04:43 PM