The Three Key Reasons Sales Cycles Have Increased€¦ · 21, Coldwell Banker, Prudential,...

The Three Key Reasons Sales Cycles Have Increased

and How to Deliver Value and Shorten Them

About The AuthorAbout The AuthorAbout The AuthorAbout The Author

Dirk Zeller

Real Estate Champions

Real Estate Champions was founded in 1998 by Dirk Zeller

after a successful career as a top ten agent in a 4-State region

for a large international real estate organization. Real Estate

Champions has become a global coaching and training

company specializing in the strategies and systems to increase

sales for real estate companies, real estate teams and real

estate agents. Real Estate Champions has created and

delivered custom training and coaching solutions for Century

21, Coldwell Banker, Prudential, Berkshire Hathaway Home

Services, RE/MAX, Better Homes and Gardens and ERA

throughout the United States and the world.

Dirk Zeller, founder and CEO of Real Estate Champions has

been an agent, investor, speaker, coach and bestselling author

for more than 25 years. He has been a featured speaker at

sales and success conferences on six continents. He is a ten-

time bestselling author. Dirk is one of only a handful of authors

worldwide to have written multiple books for the “For Dummies”

brand. His sales, success and time management books have

been translated into multiple languages.

If you are desiring more success and income in your life, we

encourage you to also visit our website at

www.RealEstateChampions.com for more resources to improve

your success.

You can contact Dirk at:

Real Estate Champions

5 NW Hawthorne Ave., Ste. 100

Bend, OR 97701

1-541-383-8833

[email protected]

© Real Estate Champions. All Rights Reserved

2www.realestatechampions.com © Real Estate Champions. All Rights Reserved

Contents1. The availability of information 3

Properties are selling too fast. 4

Now is a bad time to buy or sell. 6

There’s nothing good on the market. 7

2. When the market changes 10

3. Getting the prospect face-to-face 12


The Three Key Reasons Sales Cycles Have Increased and How to Deliver Value and Shorten Them

The sales cycles of most real estate buyers and sellers seem to be getting

longer. That longer cycle has led to agent frustration, lower lead conversion

rates and revenue imbalance for some agents, companies, and teams. There

are a number of factors that seem to be influencing that longer sales cycle.

1. The availability of information

The typical consumer that is using the Internet to find out about real estate,

the marketplace, properties, areas, lifestyle, and school information is on

information overload. This overload of information leads them to confusion

and often decision paralysis. The information can also be faulty, incorrect, and

just dated. This can cause paralysis of thought and fear of action. Consumers

are using real estate third party sites at record levels. Many organic searches

for properties guide them to Zillow, Trulia, Realtor.com, and many others.

The information that is contained on those sites is frequently dated with

sold properties,

rather than active

listings. The sites

are clogged with

off the market

properties.

The lack of

accuracy cause

the prospect to

draw the wrong

conclusions:



✤✤ Properties are selling too fast.

When they reach out for more information and find out a sale

has already happened they feel discouraged instantly. When this

happens a few times they start to experience frustration and

disillusionment with the real estate market. That causes some

prospects to give up or feel the timing isn’t right for them. A select

few gain a higher level of desire or motivation. That is the minority

compared to the ones that end up in a frustrated state.

When that

prospect actually

reaches out to

you online or

makes a call

to you, which

they do a small

percentage of the

time compared

to the amount

of searching

they do, they

know they are reaching out to a salesperson. They expect a less than

pleasant experience because of the cumulative sales experience they

have had in their life.



They quickly want to find out about what they wanted, what they had

an interest in, or a desire for more information, they discover they

can’t have or even consider at a deeper level that property they want.

What they desire or are interested in is gone…frustration happens!

We must understand their psychological state. They blame the

real estate agent even though we had nothing to do with it. It’s

our fault to many of them.

The experience, if that is

repeated, starts to cause

them to say, “Properties

are selling too fast”,

“The marketplace is

overheating”, “I think

we will wait until the

market calms down a

little more.” They move

into a pattern mentally to justify their decision of delay or not now

or their personal conclusions of the marketplace. Most humans,

rather than seek to learn, are seeking to justify or validate what

they already believe. That is especially true for many buyers using

the Internet.

The truth is, your market may be experiencing low inventory but

it’s not no inventory. The speed at which properties are selling is

overstated because of the lack of accuracy of the inventory of Zillow,



Trulia, and Realtor.com and other third party sources. We have to

deal with a lot of inventory that hinges on these sites as active when

they have been long ago removed from the marketplace through sale,

expiration, or withdrawn. This frustration and dissatisfaction will not

change so we must be more skilled at elongating the conversation

and move the prospect out of frustration and disappointment to

opportunity, engagement and especially conversion.

✤✤ Now is a bad time to buy or sell.

The consumers’ mentality, because of that discouragement, draws

the inference that

the timing is bad.

They psychologically

overstate the risk of

“Not finding what we

want”, “Being stuck

without a home”,

“Selling our home

without another property identified” or the market turning to their

detriment in selection and pricing.

What they fail to process is that typically trends like I am expressing

frequently continue for a period of time. They falsely assume the

market will respond to their desire to wait for a better time with the

outcome they wish for. I purposely used the word “wish” because



in most cases, it is a wish. That’s why a salesperson that can serve

and compel them through value and positioning themselves as an

expert can break this cycle. Don’t underestimate the power and

influence of high level sales skills, which most agents lack. The

easiest avenue to break this cycle to that is a face-to-face meeting.

Our ability to sell the value of the meeting, coupled with urgency

will set you apart from all other agents.`I recently starting working

with Jason Secor , RE/MAX in Birmington, AL. Jason is one of the

top teams in the United States. The goal is improving the lead

conversion of his elite team of buyer’s agents and inside sales

associates. In less than 3 hours of the right sales training they

increased their Internet lead based buyer appointments by 32%!

Don’t underestimate the power and influence of high level sales

skills.

✤✤ There’s nothing good on the market.The final conclusion buyers arrive at to validate their thinking is

that there’s nothing good to buy. “If I want to accept a lower quality



property or a substandard area…I might get a home…but I won’t

do that.” The challenge with this reaction is that most consumers

searching online tend to hyper focus with their online search.

They feel they have access to the same information a real estate

agent has access to. We have to understand why they come to

this false conclusion because of ease of access, faster access and

anonymity, the desire to stay stealth is a powerful force.

The choke point is created because as the consumer is looking

at virtual tours and images of listings they frequently are not

going out to experience the properties. They are just reviewing

the properties with, “Hey, a picture is worth a 1,000 words”

mindset. “Because these pictures don’t make my heart rate go

up when I view them, this

home is crossed off my list.”

They get caught in a death

spiral of their own mental

outlook. Again, a skilled

salesperson can throw

them a lifeline to extract

them from the rip tide of no

inventory.

A typical series of photographs of a home might be worth a

1,000 words but it falls far short of even one showing. What they

fail to understand is that real estate agents are notoriously bad



photographers. Most agents are not well versed in lighting, photo

angles, capturing warmth, space and emotions that can be created

with the right photographs.

As an agent, one of our primary objectives should be to convince a

prospect that homes are an emotional and feeling decision. That

connection can only be known for sure by an interior inspection.

That by walking through a few homes you would be able to

customize their search parameters to save them time, potentially

expand their selection by directing them to niche or pocket areas

that offer similar amenities and lifestyle they desire.

Increase the number of “great deals” they have access to.

This will increase their odds of finding that right home, reduce

the frustration they are feeling, increase their knowledge of

the marketplace and if the right property becomes available

within their current search parameters they will have enhanced

negotiating power because you could project to the seller they

have a number of other options if this negotiation is unsuccessful.



These are all benefits to them! When exposed powerfully and well

they create openings and opportunities to ask for an appointment.

This is where the sales skills, persuasion skills and asking skills

create the explosion of appointments as with Jason’s team!

A skilled agent that can express those thoughts, ideas, and

counsel a prospect can have a vast improvement in conversion

rates on leads. It is clearly the skill in which we sell service, value

and align it with the prospect’s emotions and mindset. That is the

first step with a discouraged or frustrated buyer. Let me caution

you...it’s easy to assume that you have these skills. Even if you

have been in real estate sales for 20 years, the odds based on our

research is you were never taught these skills...it’s not your fault!

You must take action to change your sales skills.

2. When the market changes

Any time change

happens it can

cause urgency

to increase in

some people and

prospects. It can

cause caution

and fear in other

prospects. We



need to be able to determine which type of prospect we are encountering.

Does the changing or shifting marketplace give them a “window is closing”

feeling or response? Does it build urgency or apathy? Do the interest rate

changes make them more motivated or less motivated to take action?

As a salesperson, my job is to find out what their reaction is to change. I have

to understand where they are right now in their thinking. Please recognize

that their thinking could be incorrect. They just don’t know it yet. The truth is,

their thinking is their thinking. Whatever it is…I must deal with it. In order to

“deal with it” effectively I need to know what it is…now!

If the market change is causing inactivity or pulling back I must be able to

show them what might happen. They might be priced out, they might have

to settle for less than they could receive in location and quality in the future.

Once I do that, they weigh it and accept those outcomes are possible or even

likely. That will either change their actions or confirm they are willing to

assume the downside risk of waiting. You must understand that the on the

fence prospect doesn’t assume the opportunity will get worse…only better. As

a salesperson, I’m not going to make a sale anytime soon if I can’t show them

it might be worse to wait.

There is more opportunity in a changing

marketplace. That is true whether that

marketplace change is rising prices or falling

prices. There is a more limited opportunity

when a marketplace is stagnant in pricing

and has limited movement of change. The

slowness causes complacency on the part



of prospects. Ask anyone who is an expert in the financial markets, there are

people that make money in a downward S&P as well as an upward moving

S&P. The financial market that creates limited opportunity is stagnation.

Really knowing the desires, pain points, goals, objectives and dreams of your

prospects enables you to provide the best counsel and sound reasoning to

take action. I am not wanting to know those to overuse or improperly use or

exert influence to take action. My desire is to inform, educate, and guide them

through the true nature of the marketplace to a decision of yes or no. If they

decide, after weighing all the factors ...correctly, the timing isn’t right for them

now who am I to force a change in that? That is my belief in serving prospects

and clients. The key is are they evaluating and weighing the factors correctly...

probably not unless I meet with them.

3. Getting the prospect face-to-face

The sales cycle is longer in many cases because we didn’t get the prospect

face-to-face. Too many agents have fallen in love with electronic communication

in email, text, and social media. All of them have their place to communicate

efficiently with prospects. They lack the effectiveness that face-to-face

communication creates. You can shorten the sales cycle, determine the quality

of the prospect, and serve them with a higher level of service if you acquire a

face-to-face consultation. You can separate yourself from the other agents they

are interacting with online. The face-to-face aspect of selling your value has not

changed with the advent of the increased options of technology communication.

The key to face-to-face effectiveness that most salespeople miss is your level



of comfort with the word “no”. If you want to shorten the sales cycle for your

leads you have to acknowledge and accept that “no” is a possible answer

from any prospect. Let the prospect know that “no” is an acceptable answer.

When someone knows that you aren’t trying to maneuver them to a “yes”, they

will be more open to sharing their thoughts. That is true if you go for the no

phone-to-phone or face-to-face. When you gain a face-to-face meeting tell the

prospect that at the end of your meeting that you would like them to make a

decision. You can even share with them the decision you ideally want them to

make, or the decision based on your initial discussion over the phone that they

should strongly consider.

Most real estate agents reject the truth of being a salesperson. The truth is

you are selling your thoughts, ideas and recommendations. Even if you view

yourself as a “consultative salesperson”, a consultant sells their thoughts,

ideas and recommendations to a client. Many people like the term consultative

selling. They frequently, in actions and dialogue, miss the selling part!



The decision does not mean they have to buy a

home today. It could be as simple as; they make

a decision to explore the market at a deeper

level, that we go look at a few homes, that they

are willing to take the next step in the process,

or meet with a lender. That they will give you

an honest opportunity to earn their business.

There are a number of potential decisions

or commitments they could make after the

meeting other than buying a home. It might be

more effective for you and comfortable for them

to gain a smaller decision or a series of small decisions or commitments.

Again, you want to reiterate that “no” is a perfectly acceptable answer as well.

What you want to do is avoid a “maybe” or “I want to think it over” response. I

am aware this assertive selling approach might be a little out of your comfort

zone. One of the reasons that sales cycles are longer is salespeople are not

comfortable in being assertive. Some would call that aggressive, but it’s really

not. You have expressed to them that “no” is a perfectly acceptable response.

Aggressive would be non-acceptance of “no” and continuing to over press and

aggressively maneuver them. To pull out the verbal judo tactics to maneuver

a “no” into a “yes”. That philosophy isn’t consumer centric. Be assertive and

say, “I would be delighted to help you.” “I believe I can add some real value

to your home buying or selling process.” “I carefully select people I can help

because my time is not infinite.” “Are you wanting to explore your options and

opportunities further?”



A good prospect will see you for the professional you are in sales. They will

respect your direct approach and give you the information you need to help

them achieve their objectives. If they lack the desire to take the next step

you will be able to minimize your investment in time, and have shrunk the

sale cycle to the earliest possible position. You will have saved yourself time,

energy, and emotion that can be invested in others who are more likely to

create a revenue return. Sales is about evaluating the odds of serving a

particular prospect now or in the future. Sales is an odds based business.

Don’t be fearful of being assertive to shorten your sales cycle with prospects.

The sales cycle will continue to elongate if we don’t apply sound principles

and strategies with prospects. The wide open channel of the Internet has

elongated the sales cycle because it has created a longer “just looking” or



“just researching” period for consumers. That period requires our attention

because the right agent with the right strategy will transfer enough value

in that period to secure the client relationship. That agent will separate the

wheat from the chaff early rather than provide service for the next year only to

find out the answer is “no”, or “We are working with another agent.”

Success in sales is about

an effective sales strategy,

sales system or process,

sales scripting, and sales

skills. Those four are like a

combination lock. If you don’t

have all four numbers the lock

doesn’t open. When the lock

doesn’t open the sales cycle of

a prospect lengthens and lead

conversion goes down drastically. The frustration for the salesperson goes up

and the motivation of the salesperson goes down.

Salespeople need to be clear about the changes in sales cycles and sales

strategies in 21st Century sales. The ability to create an aligned system,

strategy, connecting the right skills and scripts will turn any sales career

around or drive a good producer to a great producer.

Focus on going for the no in the next few weeks. Ask more powerful

straightforward questions to prospects, especially Internet based buyers or



Internet registration leads. Give them a clearer picture of the market and how

waiting might be dangerous. I guarantee you will increase your sales.

If this eBook has made you a little bit uncomfortable about your business

whether you are an agent, team leader, manager or owner of a real estate

company. I view that as the first step to decreasing the sales cycles of your

prospects.

The first step in creating change and improvement is the awareness that a

problem exists. You now know that. The next question is what are you going to

do about it? Let me give you a hint...doing nothing or delyaing in taking action

once you realize the challenge will not benefit you.

The biggest waste of time is the moment you realize an issue or problem

exists and when you take action to resolve or fix it. You are now in that spot.

Take action, let us help you with bridging the gap...click here and send us a

quick email so we can create the breakthrough you desire for your business!

[email protected]

To your Success

Dirk Zeller, Founder, CEO and Author



Find Real Estate Champions at the following links:

www.realestatechampions.com

www.facebook.com/realestatechampions

[email protected]

877-732-4676

Books by Dirk Zeller

CEO and Founder of Real Estate Champions:

Your First Year in Real Estate

Success as a Real Estate Agent for Dummies®

Telephone Sales for Dummies®

The Champion Real Estate Agent

The Champion Real Estate Team.

Successful Time Management for Dummies®

Thriving in the Marketplace for Dummies®

Selling all in One for Dummies®

Effective Time Management for Dummies®

Running a Great Meeting in a Day for Dummies®

The Three Key Reasons Sales Cycles Have Increased€¦ · 21, Coldwell Banker, Prudential,...

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