For Real Estate Sales Professionals

October 22, 2002 E-zine


October 22, 2002





















More than 30,000 subscribers

Always be determined to become the
best real estate agent in your territory!

In this Issue:

1. Knowing the Direction of Your Real Estate Market

2. How to Overcome the Toughest Objections from Your Clients

1. Knowing the Direction of Your Real Estate Market

In real estate sales and leasing it's very easy to get caught-up in what's going on in the moment. You constantly have so many demands placed upon you each and every day to follow-up on what must be done for every prospect and client you are working with. As a result it can be very easy to focus on what's happening now and completely lose sight of the trend and the direction your market is heading in.

When I began my career in full-time real estate sales and leasing in 1980 the prime lending rate hit 21%. But ever since that time interest rates have slowly been falling down. And right now they have been consistently right around the lowest interest rates on record over the past 40 years.

We in the real estate business have been extremely fortunate to experience these record low interest rates. The United States has been in a recession and at the exact same time there has been an incredible demand to purchase real estate here. This demand has sent real estate values skyrocketing to record highs in most markets all across America. Homes, investment properties, and business properties have all been increasing in value while at the same time becoming more affordable to so many people because the low interest rates are keeping the monthly loan payments down.

But how long will these low interest rates continue? Nobody knows for sure. So something you may want to do as an agent is take a step outside of your market for a moment and observe what's happening in it. Many agents all across the country are telling me that sales are still continuing at a brisk rate, but it's not quite as crazy as it was 6-9 months ago. Properties are taking a little longer to move now, listings are now receiving fewer multiple offers from different buyers, and it is now becoming less common to see prices being bid up above the original asking prices. There appears to be a subtle transition going on.

Wayne Gretzky, the great hockey player, was once asked during his career why he was such an outstanding player. He responded by saying, "Most players skate to where the puck is. I skate to where the puck is going to be."

As a top agent you want to be a Wayne Gretzky in your profession. You want to be able to anticipate what will happen in advance and you want to advise your clients and prospects accordingly. This is the mark of a true professional. Any agent can take listings and write offers. But the agents who can observe the trends in the market and advise their clients in advance with well thought-out logic and reasoning to backup their own opinions are not in great abundance. 

While interest rates are this low both buying and selling make great sense. Sellers can right now get prices that they may not see again for some time once interest rates begin to rise. Buyers can afford to buy properties that they may no longer be able to afford, too. When interest rates begin to creep up again buyers will simply no longer be able to afford to pay the same prices as before. For example, If interest rates were to increase from 6% to 8% on a particular purchase of a property this would add 33% each year to the buyer's annual interest payments. This one factor alone has to have an impact on the price that a buyer will be willing to pay for a property.

We don't know when interest rates will begin to rise again but we do know that it will happen sometime. Once our economy begins to heat up a little and now with our Government commencing once again with deficit spending, these two factors will begin to put upward pressure on interest rates in the coming months and years ahead. 

So be the expert. Point out these underlying factors to your clients and prospects and let them know that NOW may be the best time for them to buy and sell real estate. Get them off the fence and get them to take action NOW! Don't let them be complacent thinking that values and affordability will always get better. So many people start to feel this way when a good market has been around for awhile. 

Be the expert and get your people to take action.

2. How to Overcome the Toughest Objections from Your Clients

The greatest and most successful real estate agents are masters at overcoming the objections that their clients and prospects toss their way. They weren't always great at overcoming these objections but they learned over time how to handle them in the most effective ways possible. Now you as an agent, no matter what level you are currently at in your real estate business, can learn how to become a master at overcoming these objections also.

Overcoming objections is often easier to learn how to do than you may now believe. The main component that you need to bring to the table is your desire to make it all happen. Once you have this desire you can then follow these 3 easy steps:

1) Make a list of all the objections your clients and prospects are giving you that you would like to learn to effectively overcome.

2) Write down what you think are the most effective responses you can give to overcome each of these objections whenever they are thrown at you.

3) Rehearse your responses to these objections until they become so natural that you can deliver them spontaneously whenever it is appropriate to do so with your clients and prospects.

Also, if you think this would be helpful, you might consider approaching another agent in your office and ask their opinion on how to best overcome some of these objections. They may have some thoughts and ideas of their own that could work even more effectively for you.

And lastly, you might consider doing a process similar to one that I often do when I am leading real estate trainings:

1) In one of your weekly sales meetings have each agent write down on their own sheet of paper a list of objections they would like to learn to overcome with their clients and prospects.

2) Collect the individual sheets of paper from the agents and begin looking for similar objections that a number of the agents would like to learn to overcome.

3) Select one particular objection to work on with the group and ask for two volunteers from the group to role-play the situation. One of the agents will be the client who will have the objection and the other agent will be the agent faced with overcoming the client's objection.

4) You can then repeat the process for other objections that you think would be helpful for the agents to learn how to overcome.

What's great about this process is you get great feedback, interaction, and enthusiasm among all the agents as they observe the other agents in action giving their best in situations that everyone in the room can identify with. It's also a great learning process for everyone as all the agents attending the meeting get to learn new skills, ideas, and approaches for overcoming objections that they will definitely have to deal with in the future.

Learning how to effectively overcome the objections of your clients and prospects can be very easy. You just need to be willing to do what is necessary to make it happen.

Click here to visit my Web site. There you'll find many articles and previous editions of my E-zine to assist you in taking your real estate career to the next level.

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Grubb & Ellis

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Advanced Real Estate Sales Coaching
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