That suit looks wonderful on you.
There I am standing in one of those mirrors that as a kid I would play in and stick my head into and look at a zillion of me. You know the ones, tucked in near the fitting rooms at Bambergers or Macy's. My mother would bring me shopping with her and leave me outside the dressing room as she was in trying on dresses. I think I actually saw the back of my head for the first time in one of those alcove mirrors. I could move my arm over my head and simultaneously see a long line of kids that looked just like me move their arm as well. To this day I can't walk past one of these alcove mirrors and see I kid in there without thinking of my childhood.
Today, however, I was sucking my stomach in and only looking at the me in the middle mirror. I was test driving a new double breasted blazer. The salesman was behind me brushing off an imaginary piece of lint.
Then he said those important words, "That blazer looks wonderful on you." Then another sales associate "happened" to walk by behind me and she offered, "What a good looking jacket; very slimming on a tall man like you."
"I'll take it" I announced. That little push was all I needed: The affirmation; The expert opinion; The clincher.
In real estate sales we are often reticent to make that affirmation to the client. The sales people that do make that affirmation make the sale and build the relationship. Those that don't, will not.
I was discussing the "That suit looks good on you" technique with my wife Gail. She told me that if she heard this from sales person in real estate, she would automatically recognize it as sales fluff. I then explained more about what I felt was a necessary process from an expert sales person.
The sales person in the men's store sell suits all day long. He dresses well, knows style and recognizes a good fit. In fact, I admire the way he looks. When he tells me it fits well; I believe him. When he tells me it looks good; I believe him. Perhaps he built my trust in him over the time he took to ask me questions about my likes and dislikes. He has picked out a few jackets for me to try and solicited my opinions. Bottom line is: I respect his opinion and I want his opinion.
In real estate, as buyers, we need and rely on our professionals. A professional gets to know his client and his objectives and likes and dislikes. But more importantly, real estate professionals are already given a status as an expert - even on the first meeting.
Let me give you an example; and this is the one I relayed to Gail. A customer came into our Engel and Voelkers property shop this week. He and his wife were looking for a three bedroom house on a canal with a pool as a second home. They were here visiting from Canada. They had already visited Sarasota and Punta Gorda and now wanted to tour our area. (They, in effect, had tried on two suits and were looking at a third) The Engel and Voelkers agent spent some time with the couple and then affirmed in a very positive manner, that canal homes in Cape Coral were an excellent opportunity for them and that Cape Coral was a superb choice. She knew this because indeed she went through the same process looking at Punta Gorda and Sarasota and she indeed had settled here and loves it!.
Now if the agent were to take the very neutral position of, "Let me show you around and you make the choice, " she would not have been as helpful to the clients as she was in making the affirmation. The clients wanted the affirmation.
By the way, have you ever heard a waiter tell you, "You made a wise choice sir."? This is also an affirmation that we appreciate. After all, the waiter serves this food all the time and should be an expert.
Understand that I am not talking about sales fluff here. I am talking about being confident in your opinion, your expertise and your product. If the customer does not look good in the suit, tell him so. Also, a sales person should not offer expertise where he does not have it. It would be unwise to say you are really going to love this area within the first minute of meeting someone. After all, you have no idea what they love or do not love. What is fair to say is that YOU love this area, and it is the area that YOU chose.
In the commercial arena things are actually quite similar. Selling commercial real estate and investments is an area that I spent a great deal of time on. I also buy investment properties myself. I learned a long time ago not to judge the suitability of an investment for someone else until I know their criteria; but my enthusiasm for an investment property in very apparent to my client. It is easy to share my expertise, but dangerous to impose my investment criteria on my client. What may be good for me may not be good for him. But I can affirm his decision and I can validate his thought process.
Replacement Costs
What you will hear from me these days is the term replacement cost. Builders today are not building spec homes or commercial properties. This is because the prices that existing properties are selling for are below what it would cost to build new, in fact improved properties are selling well below replacement cost as the distressed developers sell off assets to raise cash for operations. The builders are waiting for the homes and commercial properties to be absorbed. Once they are absorbed they will start to build again and the prices will go back up to what it cost to build now.
I am asked every couple of days if we are at the bottom of the market. I do not know. But if the property in question is available to purchase below replacement cost, you know that once the real estate market has absorbed the existing inventory, prices will rebound and the buyer's low price will be fodder for success stores at the card table. You cannot lose, in the long term, by buying below replacement cost.
The price of land is the factor that is varying the most. The cost of bricks and mortar, of glass and steel, and of drywall and labor, have not dropped that much. Land is the big variable.
Here is an affirmation for you. The measures, whether we like them or not, being proposed by the new administration and by congress, will have a positive effect on the economy, the housing industry and general consumer confidence. The economic problems have been identified and are being addressed. We will recover here in Florida sooner that the rest of the county. We always do.
Now IS the time to buy. Now is the time to acquire investments and your second home. But be patient. Yes asking prices may go down a bit further in some sectors,, but SELLING prices are at bottom.
Incidentally, the weather here is just fine. It was 72 degrees and sunny all day yesterday.
Gregg
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