Avoid These 5 Listing Presentation Pitfalls

Smooth selling


Even the most seasoned practitioners can make some common mistakes during a listing presentation. Here's what to avoid so you make the best impression.

BY JOHN D. MAYFIELD

Every listing presentation is a job interview. You are applying with the sellers for the opportunity to sell their home. And you need to convince them that you are the best real estate professional for the job.

I’m sure you have your standard listing presentation down by the time you do it a few times. You tell them about your company, yourself and your background, and everything you’re going to do to market the home and get it sold. If you’ve done the comparative market analysis (CMA), you share what it shows and your recommendation for a list price.

Although this is all well and good, what differentiates a good listing presentation from a great listing presentation — and what increases your chances of getting the listing — is your ability to tailor your standard listing presentation in real time based on the reactions and personalities of the prospective clients sitting in front of you.

Here are five common mistakes to avoid during a listing presentation so that you can get the job you’re applying for.

1. Failing to recognize personality traits.

Many real estate professionals don’t take into account the different personality traits of prospects when meeting with them. The two major personality types you should be watching out for are whether the prospects are analytical types or touchy-feely types.

All prospects may not fall cleanly into one category or the other, but getting a feel early on in the meeting about which type of person you’re dealing with will help you to determine just how detailed you should be in your presentation.

If you know ahead of time that you’re meeting with a stock broker, financial analyst, or management consultant, you probably should bring lots of market data with you and plan on spending a lot of time going over the data.

However, if the prospective sellers don’t seem to be very interested in the market data (or you start getting cues from the sellers that they are looking for someone they can “trust” and “feel comfortable with”), then you need to put the numbers aside and start talking to them about how you work and how you will make sure that everything moves forward smoothly in the transaction.

One way to identify a person's personality type: Pay close attention to the questions they ask.

Generally, an analytical person will be specific about questions and concerns they have. For example, they may ask about the length of your listing contract, the commission breakdown, allocation of your marketing budget, and what types of marketing you do.

When you begin to notice that a prospect is asking a lot of detailed-oriented questions, you need to make sure your presentation covers those details.

Does this mean that you shouldn't include the same information for a person who is not as detailed oriented? Obviously, you want to provide the same information with all of your clients. However, you wouldn't want to spend a lot of time going over specifics and details with prospects who are not analytical types.

By correctly identifying the personality type of the potential client, you will begin to understand how your presentation should take form and to what detail and depth it should go.

2. Not using quality presentation materials.

Put yourself to the test: Think of your presentation as a major report you must turn in for a class. Tell yourself that this report will count for the biggest part of your grade during the class semester.
When you take this type of attitude to proof, study, prepare, and finalize your presentation materials, you'll be on your way to a winning presentation every time.

Fortunately today, many good resources are available through local MLS systems, software vendors, and REALTOR® magazine online to help you build a professional listing presentations.

Always use a good laser printer, quality paper, and color photographs for your presentation materials. This will render a winning presentation every time!

3. Not employing good listening skills.

Author Dale Carnegie once said that we can win more friends in two weeks by showing we have a genuine interest in them than we can in two years by trying to get them to be interested in us.

Ask yourself these questions:

• Am I taking good notes during my initial presentation meeting?
• Will I know this person better after I get back to the office?
• Am I asking questions to determine the prospective sellers’ needs, motivations, wants, and desires?
• Am I able to determine their personality style based on the information they give me?

All of these questions can help you learn more about your potential clients while also demonstrating your concern and willingness to help them with their real estate needs.

Remember, it’s about them, not you! Whether you know it or not, people can tell when you care about them and their needs. Listening is an excellent way to build rapport and favor among clients and customers.

4. Believing that one size fits all.

With today’s technology, real estate professionals have never had it so good when it comes to presentations. Unfortunately, many real estate professionals tend to develop one stand-alone presentation that they use for all of their appointments.

In reality, one size does not fit all.

Prospective sellers, types of properties, and other factors determine what type of presentation you should give and what information should be contained in the presentations.

For example, a buyer’s presentation for “first-time” homebuyers will need to cover different information than, say, a presentation to relocation buyers. A listing presentation for a primary residence should be different than a presentation for a second home or investment property.

Developing a wide variety of presentations that you might give on a regular basis is a must. Save your presentations on your computer, where you can easily pull up, edit, and personalize to meet the specific needs of the potential client you’re meeting with.

5. Not following through.

After you develop and tailor your presentations, your work doesn’t stop there. You have to now use that presentation. I see a lot of practitioners put together great information but when the time comes for that face-to-face meeting with prospective clients, they don’t use the presentation they spent so much time putting together.

Whether it’s the fear of intimidation, too much time required to boot up their computer, or the attitude of “I can do it without a structured presentation,” some real estate professionals throw out their hard work and just try to “wing it.”

The truth of the matter is that most prospects don’t mind a presentation. After all, a picture is worth a thousand words. Showing a printed report on what has transpired in your marketplace is more persuasive than you verbally trying to convince the consumer that homes have not sold in their subdivision. A good written report is always well received.

So, Just Go for It!

In a listing presentation, it’s more important to let your prospective clients lead the discussion about what their needs are and then, matching their personality styles and their need for details, and try to convince them that you’re the best person for the job.

Keep in mind these listing pitfalls, and then go after that next listing — more prepared than ever.

In Court: E-mails Can Be Binding

This article was published on: 06/01/2008


In Court

Dash It Off; Repent Later
Basis Technology Corp. v. Amazon.com Inc. Massachusetts Appeals Court, 2008

BY MARIWYN EVANS

Its quick and informal nature is often the appeal of e-mail communications for busy professionals. But quick and fast doesn’t negate legally binding, as online bookseller Amazon learned the hard way.

In the case, Amazon and Basis Technology Corp., a software provider, were negotiating a settlement in a lawsuit in which Basis claimed that Amazon had not paid for certain work it performed. Upon receiving a summary of the general terms of the settlement agreement the parties had discussed, an attorney dashed off a quick e-mail response of “correct.”

The next day, attorneys for both parties told the trial judge that the parties had reached a settlement.
When Amazon later disputed the terms set down in the e-mail, Basis filed a motion seeking enforcement of the “agreement.” With some minor modifications, the trial court and later the appeals court concurred that Amazon had approved the agreement even though the company argued that it had not intended to be bound by the e-mail’s terms.

So be sure you read the fine print — electronic or otherwise — before you hit that send button.

Repeating an Error Doesn’t Make It Yours
Crawford v. Mintz Jr. North Carolina Court of Appeals, 2007

Sharing MLS data that contains errors with a buyer client doesn’t make you guilty of negligent misrepresentation, even if the buyer relied on that erroneous information in making a purchase. In the case, a buyer’s representative printed out listing information on a property in the MLS that indicated the home was connected to the city sewer.

The agent presented the information but failed to include the disclaimer from the bottom of the MLS listing, which stated: “information deemed reliable but not guaranteed.” After a septic tank leak two years later, the buyers sued the seller, the brokerage, and the salesperson for negligent misrepresentation.

The trial court found the parties liable since the buyer had justifiably relied on the information in making the purchase. The appeals court reversed the verdict, stating that even though the salesperson had omitted the disclaimer that might have alerted the buyer to independently investigate, the brokerage and salesperson couldn’t be liable, since neither created the MLS listing sheet.

For information about Real Estate Brokerage Essentials: Managing Legal and Business Issues, go to REALTOR.org/storeand search for item #126-358.

Ten ways to look at realty purchases positively

August 22, 2008 15:05:00

Tessa Salazar

Philippine Daily Inquirer

RECENT SCENARIOS have been hinting of gloomy days for the housing market, as developers have been struggling to cushion the impact of rising construction material costs. Where is the bright side of all this? Read on.

1. Think Green. Oil price and power crisis issues are pushing environmental thinking among developers.

These issues are providing organizations like the Green Architecture Movement an opportunity to urge homebuyers—and developers—to support sustainable and environment-friendly development.

Edgar V. Reformado, chair of the Green Architecture Movement, said a better home design means less consumption of power, thus less maintenance and utility costs. He is also encouraging developers towards areas that would not contribute to congested communities in the future.

Alejandro S. Mañalac, president of the National Real Estate Association, cited a trend for transport-oriented developments which may not necessarily be inside the central business districts but are near mass transit lines of MRT and LRT.

“Developing green is also the call of the day with developers considering buildings at par with LEED (Leadership in Energy and Environmental Design) standards,” Mañalac said.

Edgardo M. Alunan, president of Subdivision and Housing Developers Association said his group wants to promote the integration of wastewater treatment facilities.

“I, for one, am interested in installing the nanosolar, a 3G solar power system, in every home. But it’s so new and there’s lack of supply,” Alunan said.

2. The market is no longer limited to the rich Chinese. More Filipinos, even from lower management positions, can already afford to buy properties, according to some developers.

The reason? The availability of long-term financing, low-monthly amortizations, the concept of middle-cost housing near central business districts, the smaller configurations have provided the opportunity to more buyers to own their units. More young professionals have invested in condo units before buying cars,” Mañalac quipped.

3. Sales to successful foreign-based Filipinos continue to pour.

Another major contributor to this boom is the maturity of the foreign-based Filipino workers: those who left 20 years ago have fully settled abroad and paid their debts; their kids have finished college and are working; and the parents are ready to enjoy their pension and savings.

4. Developers’ open communications with “the very active overseas Filipino workers.” Mañalac said it is also only now that the developers are reaching out to these markets abroad by doing regular international road shows, advertising in Filipino broadcast channels as well as online. Property developers noted that it was already common for overseas buyers to purchase properties here, sight unseen, agent unknown personally, and payment wired.

5. Technology makes it easier for Filipinos all over the world to communicate. They can inquire, purchase properties or report positive or negative feedback through Internet websites, webcams, VoIP (Voice-over-Internet protocol), and mobile 3G phones. Scanners make online transactions possible.

6. Although prices are edging higher, the present low-interest rates of Pag-Ibig fund and commercial banks still provide a warm respite for low amortizations. Pag-Ibig’s Abot-Kamay Pabahay program has reduced interest rates to 6 percent and extended amortization payments up to 30 years.

7. Increased interest in housing loans. Pag-Ibig reported that in 2007 the number of attendees in housing loan counseling session increased by 207 percent while the number of calls received at the agency’s call center (724-4244 or PAGIBIG) posted a 400 percent increase from 4,304 in 2006 to 21,000 in 2007. Similarly, the number of Membership Status Verification Slips (MSVS), a good way of measuring members’ interest to avail of housing loans, soared to 128 percent.

8. Demand for subdivision and housing units has continued to increase in and out of Metro Manila, according to Pag-Ibig. This was likewise observed by Alunan.

He added that if the trend continues, total takeouts this year could hit P35 billion versus Pag-Ibig’s budget of P26 billion.

The either-good-or-bad news for developers has been “the availability of a sustained home financing program. We hardly created a dent resolving our 3.8-million housing backlog in the post-Asian crisis, yet Pag-Ibig’s money supply is beginning to strain,” Alunan lamented. He added that GSIS and SSS should cast a line instead of relying on Pag-Ibig-financed housing for their members.

9. Some developers were able to soften the impact of construction supplies. The SHDA group was able to bag an agreement last January with Holcim Philippines that provides SHDA members a steady supply of cement at locked-in prices for the entire year. Without the lock-in, prices would have inflated further, according to Alunan.

On the downside, “the lock-in helped, but all in all, costs still increased because of steel,” he added.

10. Investing in physical property remains a better alternative. Inquirer Property’s previous interview with Bobby Disini, vice president of PS Bank’s mortgage banking division, yielded the conclusion that property is still a wise investment.

Copyright INQUIRER.net and content partners.

Is your house an asset or a liability?

August 27, 2008 13:59:00

Invictus “Tuts” Paradela

Cebu Daily News

CEBU CITY, Philippines - Many people take for granted the idea of a house as an asset.

The popular notion is that a house is the greatest investment in one’s lifetime because this is where you create memories with your family.

This concept is being challenged by pragmatic considerations.

Is a house really one of the best assets to leave one’s heirs? This has been challenged by the increasing difficulty today of owning and maintaining a house.

An asset is supposed to add to one’s riches and make you happier. If it does the opposite, could one still call it an asset?

House as asset

Here are some concepts arguing that a house is indeed an asset:

Conventional wisdom says that the value of a property will always increase, especially over a long period of time.

That is why real estate is such a good investment. Some argue that even if some properties do lose their value, over several decades the value of properties generally grow.

Even personal finance gurus like David Bach and Robert Kiyosaki profess that the best way to get rich is through real estate (even as they continue to build their riches through their bestselling books).

Your house could be considered an asset because if you did not own one, you would have to pay rent.

Instead of paying rent for property one doesn’t own, some say it is better to pay for the amortization or mortgage for a home you will eventually fully call your own.

If you chance upon property sold way below its market value (as in a rush sale of an owner leaving the country), that property would be considered an asset you can probably sell at a higher price later.

Financial statements consider home ownership a definite asset. Once this is in your balance sheet, it can open several opportunities.

For one, it can facilitate bank loans using the property as collateral. It can also be a basis for apply for a tourist visa to the United States and other countries.

There is also the psychological value attached to a house which creates a sentimental value that goes beyond its financial worth. Even a torn-down house, in this context, could be worth more than any amount of cash.

House as liability

Those who say a house is not necessarily an asset have this to say:

The price of a property may increase, but you don't actually get that money until you sell the house. The value is only good on paper.

Three million pesos in the bank is much better than having a P3-million house.

This brings us to the argument of opportunity cost. The money you put in a house makes you less liquid and gives you less leeway to use cash for investments or to grab financial opportunities that may come your way.

Robert Kiyosaki has an interesting idea on this. His assessment of a house as an asset or a liability hinges on his definition of an asset. He says an asset should increase cash flow rather than decrease it. In other words, a thing is only an asset if it helps bring in cash for you. With the big expenses of owning a house, like paying utilities, property tax, lawn care, repairs, insurance and the like, he prefers to think of a house as a liability.

If you are still paying for the house, you even have to pay interest on the mortgage or amortization.

The bigger the loan you pay on your house, the more your house becomes a liability. The trick, therefore, is to get out of debt as quickly as you can.

Whether or not your house is indeed an asset or a liability, many say it is advisable to treat it as an asset.

Such a mindset keeps one's lifestyle in check and helps ensure you do not spend beyond your capacity.

* * *

(Tuts Paradela is a licensed real estate broker, who helps a non-government organization in livelihood development. His website is www.ceburealestates.com.)

Midrange, low-cost houses are in

August 31, 2008 21:05:00

Riza T. Olchondra

Philippine Daily Inquirer

PROPERTY BUYERS’ APPETITES are changing, particularly those of overseas Filipino workers (OFWs), who make up the biggest market for real estate.

Officials of the Chamber of Real Estate and Builders’ Associations, Inc., told the Inquirer that buyers were now going for either socialized (cheaper than low-cost) or, more significantly, midrange properties.

“More people are buying for investment, especially OFWs. They (OFWs) are no longer made up of domestic helpers or carpenters. They are mostly nurses, doctors, IT people, even lawyers, managers. They get better pay and are more likely to think about investing,” CREBA national president Reghis M. Romero II told the Inquirer.

Real rstate as investment

Apparently, low-cost properties used to be the best sellers. These were house and lot properties or condominium units priced from P750,000 to around P2 million.

“Overseas workers now snub properties worth ’only’ P2 million and below!” Romero quipped.

He said the trend may be surprising amid the global economic slowdown. But it makes sense considering that midrange residences are in better condition than low-cost and thus have better rental and re-selling value – an ace in tough times.

“The hot sellers now are the properties priced between P3 million and P7 million. These are mostly townhouses ... there are a few condo units,” Romero said.

Seeing sales opportunities, CREBA is thus adding fuel to the midrange frenzy via road shows in foreign markets with large OFW communities, according to Purita Soliven, who spearheads such events for CREBA.

“We went to Qatar early this year, to Singapore in April and to Milan and London around late June to early July. During road shows we create a fiesta atmosphere and show the range of properties in the Philippines to the OFW communities,” Soliven said.

The other road shows for 2008 will be in other parts of the Middle East and the United States.

Romero said that if the current trend for midrange buying continues, the real estate industry could match its 6-percent revenue growth in 2007 despite inflationary pressures. This would then help prop up other industries and the overall economy.

Other trend: Ultra-cheap

While not as strong as the midrange segment in terms of growth, socialized housing is still a major driver of the real estate industry, said Romero.

Socialized housing developments offer house and lot packages worth around P300,000.

“There is still strong growth in socialized housing, especially in areas around economic zones and industrial estates. The buyers are workers and their families,” Romero said.

To support socialized housing for business growth and as an advocacy, CREBA has sought government assistance for developers’ and buyers’ incentives.

On the developers’ side, CREBA obtained government permission to import raw materials for steel in bulk. The materials, called steel billets, are processed by steel-making members of CREBA for the needs of other members. Developers and contractors also get some income tax rebates.

On the buyers’ side, value-added tax exemptions are often included in their payment packages. The packages are tied up with government institutions such as Pag-Ibig and the Development Bank of the Philippines and there are no down payments demanded.

As for the inevitable question about demand from the outsourcing industry, Romero said it’s consistently growing, especially outside Metro Manila. But the midrange buys for OFWs are still the hottest of the lot.

Copyright INQUIRER.net