by Michele Newbern Gillis
Staff Writer
People say smiling increases your face value.
But, according to speaker Bill Herring of The Herring Institute, it now may also fatten your wallet.
Though the media has a lot of negative things to say about the real estate market, Herring says you have to stay positive.
“There is a game to be played and the question is - Are you a player who wants to play?” said Herring, at the Northeast Florida Builders Association’s Sales and Marketing meeting last month. “This is still a great country, with great opportunity and we are in one of the greatest businesses that exist in this country. Over the last 18 months, most of the negative comments I have heard have been from people in our business. Folks, you can’t go to work and do that. Don’t let that stuff get in your head!”
Herring said the biggest challenge in selling is recognizing whether you like it or not.
“Most everything you’ve seen lately about our business has been negative,” he said. “If you keep seeing that everyday in every piece of media it has to affect you.”
Not only does it affect sales people, but it affects the buyers who come to see them.
“Yes, the market has changed,” said Herring, speaking at UNF’s University Center. “But, change is inevitable. Growth is optional. This is your chance if you are a professional. This is our time.”
According to Herring, many new people got into the business in the past three years who really didn’t know how to sell.
Herring said he was in business when interest rates were around the 20 percent.
With interest rates now averaging about 7 percent, Herring said salespeople should be happy.
“We’re running around like the sun doesn’t shine,” he said “I think someone needs a kick in the butt. We actually have the public believing that it is a buyer’s market. Let me tell you a secret you can take to work with you today. It’s only a buyer’s market if you buy.”
He said sales people today need to educate the buyers and take the time to learn about them and what they need.
“They travel from community to community and are buying nothing,” said Herring. “The biggest mistake we are making today is that we are still trying to sell homes. You are trying to sell homes way too early. Right now if you want to score big you need to change your game plan to this - you now have a monumental responsibility to educate the buyer to the status, condition and reality of the market place first. It’s not about you, your company or your house.”
He said the reason buyers go from place to place is no different than it ever has been.
“They are nervous, anxious, threatened and confused,” he said. “They are about as confused as they have ever been. So, they come out and they keep looking. They don’t know which way is up.”
Many companies have begun offering incentives and deals to buyers so now they look for them.
“Just because they get the lowest price doesn’t mean it’s the best thing for them,” said Herring. “It’s never been the case, ever.”
Don’t bore customers with the history of your company. Take the opportunity when a client comes in to find out how you can be of service to them.
Herring said they have scientific proof that the decision on whether they would ever buy the home they are looking at is made in the first five seconds.
He said the main question is, “Do they want it?”
No incentive or lowered price will help if they don’t want it.
“This is a people business and you need to engage the people,” he said. “You need to connect with them so they tell you what is going on in their life and you can make the decision whether or not you can help them.”
The market has changed and Herring said now you have to change your game.
“You have to decide that you are strong enough, comfortable enough with who you are to ask them to tell me what is going on in their life and why they are in the market today,” he said. “One of our problems is that we are all about the what, but the key to success if the why. Why now? Why here? Why not a town home? Why not a condominium? It’s all about the why. When you get into the why, you are in a position to motivate people. I happen to think that people buy from people.”
Herring said that even though it is a buyer’s market, the buyers have to figure out where it is a buyer’s market for them.
“This will never change,” he said. “They can’t figure that out without you. They won’t make a decision without you and I. You get that?”
He said if you make these changes, there will be tremendous opportunity.
“Spend time with every single person who comes to see you today,” he said. “That flippant attitude and arrogance we had when we had people throwing checks at us is over. It’s reality. You have a choice. Selling is nothing more than a transfer of energy. You’ll receive what you believe.”