The worst thing about the lengthy and difficult home buying process is that it gets progressively difficult. Sure, getting a client is difficult, prepping the home/finding the right home is even more, but closing a real estate deal is arguably the most difficult part of the home buying process. When you’re closing a real estate deal you have to deal with a myriad of technical stuff mixed with emotional weight brought upon by the clash of needs and personalities of two different people in the home buyer and the home seller, and it’s just a nightmare! But, of course, we all go through it because once we do, once (just like in the video games) we defeat the big boss monster, a reward is waiting for us: that sweet real estate commission.
Not only to make it easier, but to be able to consistently get this sweet prize, a lot of real estate thinkers have been studying and trying to master the real estate closing process – some call it an art – and we’ve decided to make a post citing the most common closing sales tips these people have agreed on. Let’s take a look at them:
Identify the client’s needs
For starters, the needs of a home seller and a home buyer are different, right? But not only that: every client has their own individual needs and points of view. Using the “one size fits all” approach will lead to failure when closing a real estate deal, and that’s why clients hate the my way or the highway real estate agent type so much.
But easier said than done; how to identify the client’s needs and enforce this closing sales tip? Looking at their family size is a good way; if it’s a single person, there’s no need for a big home, or being located inside one of the best school districts of the state. But the best way to identify your client’s needs and speed up the real estate closing process is to listen to them. Yes, there are some things that are unsaid, and it’s up to you to notice them or to ask about them. However, the main thing you need to do is to listen carefully to everything said or unsaid. Without a clear idea of what the client needs, there will be a lot of wasted time for everyone. And speaking about everyone; also listen and identify the other party’s needs to put it in perspective when planning your next step in the real estate closing process. Just to put it in perspective! At the end of the day, your client’s needs are the one you need to attend, ok? But it will make your moves more certain when you open your eyes (through your ears – if that makes any sense…) to the other party’s needs.
Influence the client
There are times when halfway through the real estate closing process, the home buyer (or the home seller) starts having second thoughts about the deal. They might even say that their problem is the other party or something in connection with the offer but most of the time they’re experiencing buyer’s remorse (or seller’s remorse). Buying a home and selling a home are both big-life changing experiences and it can get scary. Especially once you’re a few steps away from it and it all becomes very serious. That’s the moment our closing sales tips start to look a lot like a psychology class: you need to psychologically influence the client so he avoids making that move.
Reinforce all the way through – even if he’s not showing any signs of backing out – how great this is; how many benefits he’ll have once the process is done. Every curveball that comes your way, show him the good side of it. Eyes on the prize the whole time. If your client starts to second-guess things, you’ve lost, so follow this important closing sales tip and constantly reinforce how great things will be once the chaos and confusion of the real estate closing process settle down. Calm them down, show them your experience, say you’ve been down that road and it’s worth it to hang tough.
When clients start having a hard time contacting their real estate agent, the door opens for second thoughts. Never being available to clients is not only a big reason why the real estate closing process falls through but also one of the reasons why real estate agents fail and get out of business. Believe us: we’re not being overdramatic.
The great thing about this closing sales tip is that it is the easiest one to enforce. Just pick up the phone, answer the e-mails, keep them up to date with what’s going on even if nothing’s going on. By doing that, your clients will feel that they are constantly in the know, which will help you build an even more trustworthy relationship with them, and all other closing sales tips will become easier to follow.
Be brutally honest
During the final stage of closing a real estate deal, there is no room for ambiguity. Ambiguity is your biggest enemy. If you’re not clear with your client, he’ll have second guesses or, worse, come to the closing with the wrong expectations. We’ve told you to influence him, but never lie or be ambiguous to manipulate him and get your real estate commission. That’s not cool; actually, it’s illegal. You could lose your license because of it. Be crystal clear about every new development.
And the same goes for the way you deal with the other party. Don’t sugarcoat anything. There needs to be clarity to move forward. Be clear and honest about your client’s needs and expectations. If something might be problematic, put it out there. When everyone agrees with something, there can be no resentment, so say it.
We’re big on the importance of building a real estate team because this is a very complex business made of people – which are even more complex! So it’s always good to have counsel from peers not involved with this specific real estate closing process (but with experience) to advise you on how to win the hurdles and avoid the pitfalls. If you can develop a relationship with a real estate lawyer, it’s also a good idea. He or she will be able to provide you with interesting unique insight for the real estate closing process that sometimes you, real estate agents, can’t provide.
Beware of timing
There’s no way to teach this closing sales tip, but you have to learn when to speed and when to slow down – you have to learn how to spot the right moment and chose the right option. Timing is very important when closing a real estate deal because emotions change throughout the process and we need to play with them, take advantage of them. So, you have to know how to find the balance between speeding up at the beginning – when everyone is excited about the deal – without becoming too overwhelming and making everyone just fed up with the real estate closing process. Especially for the rare occasions where you deal with a For Sale by Owner (FSBO) where the other party will probably have no idea how to close a real estate deal without an agent…
Yes, timing is key, and to show we follow this closing sales tip, it’s time to close this article so it’s just the right side and you don’t get bored reading it but, rather, get excited about putting our closing sales tips in practice. Bye!