July 27, 2007

Jeffrey Bernatz
NSMC Chair

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  Little Things Mean a Lot: Improve Your Closing Technique

Jack Gallagher, MIRM

As we study the steps of greeting, qualifying, demonstrating, and closing that lead us to a sale, I am sure that each one of us can identify one area or another where we can improve.

Jack Gallagher, MIRMWith today’s market tightening up, interest rates rising, and homebuyers becoming more hesitant, onsite salespeople and sales managers need to review their techniques and style so they can become better sales representatives and compete more successfully.

I am not suggesting that you abandon what works for you or that you adopt a completely different approach. But I am suggesting that you keep what works — then kick it up a notch.

Several years ago Tom Peters, in his early books on management style, quoted numerous executives who talked about how excellence in everything they did helped to create a successful company. One of the most memorable quotes came from Jan Carlzon, former Chairman of the Board of Scandinavian Airlines, in explaining the fantastic turnaround of his company. He stated: We did not seek to be 100 percent better at any one thing; we sought to be 1percent better at 1000 things.

That’s all it takes to become more successful. Just be a little better than your competition, offer a little more, spend a little extra time with your prospect, and ask for the sale just a little harder. Below are some steps on improving your overall sales process, one step at a time.

Kicking it Up a Notch

1. A Warmer Greeting- How can we do a better job with our greeting? Do we make prospects feel welcome and comfortable when they arrive at our model home? Do we introduce ourselves and then remember and use their names during our conversation?

2. A More Thorough Qualification- Are we afraid to ask the important little questions regarding the prospects’ price range, down payment expectations, type of mortgage they would be most comfortable with, whether they need to sell another house before they buy, how soon they want to move, etc? If your prospects feel comfortable with you, these types of questions will never seem out of place. Ask a few more qualifying questions than you are currently asking.

3. A Better Demonstration- During the demonstration phase, go beyond just showing the home. Make sure you emphasize how the features of your homes will benefit your customers. Show your prospects what the floor plan, room sizes, closet space, countertops, appliance package, master bath, low-maintenance exterior siding, and overall construction features will do for them. For example, show how they will be more comfortable, save time and energy costs, and feel more secure with a quality-constructed new home.

4. A More Successful Closing- Do not be afraid to ask for the sale. You have earned the right to ask your prospects to buy if you have successfully and effectively completed the previous steps. Competing for the gold medal is so much more fun when you achieve victory and it can be yours if you continue to do a thousand things 1percent better.

Take the Plunge

I am often reminded of how just being a little bit better can mean so much. This is especially true when I think back over the last 20 years to many chlorine-filled days watching my children competing in swim meets. On one particular meet, I was cheering for two of my daughters during a championship competition. At that time my 16-year-old, Beeni, won her event in the 100-yard breast stroke with a time of 1:11:4. The next best finisher touched the wall at 1:11:8 — a difference of 4/100ths of a second between the winner and the “also-ran.”

Fourteen-year-old Sheila, my 100-yard back stroker, clocked 1:02:2 to win her event; the second-place finisher was at 1:02:5. Three one-hundredths of a second made the difference between the first-place winner and the runner up. The margin of victory is often very slim, and victory is seldom shared by two winners. Only one goes home with the gold medal. So, review your presentation. Become a friendlier greeter. Practice being a more in-depth qualifier. Improve your demonstration skills, and ask for the sale more often. We have an opportunity each day to consistently come in ahead of everyone else at the finish line. If we can stretch ourselves and touch the wall 3/100ths of a second quicker than the next-place finisher, the results will show in increased sales.

So, what’s the secret?

There are no big secrets to success in new home sales. To increase our closings and create more sales, all we have to do is remember and follow what Jan Carlzon said: We did not seek to be 100% better at any one thing; we sought to be 1percent better at 1000 things.

Jack Gallagher, MIRM, is the President of GMG. Inc, (Gallagher Marketing Group) and consults  with builders, lenders and realtors throughout the country to develop new business through unique and individualized marketing strategies. He has held positions with a national mortgage company, a regional real estate firm, a builder marketing company, a down payment assistance company, golf course community developers, a national production builder and a national home automation company. Gallagher is a former trustee of the Institute of Residential Marketing and a multi-term member of the Board of Trustees of the National Sales and Marketing Council of NAHB.

This article originally appeared in the July/August 2006 issue of Sales + Marketing Ideas magazine. [ return to top ]

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