How to pitch your first real estate sale
Philippine real estate has really gone a long way.
More industry players are offering diversified real estate products to serve a market looking to purchase a first home or make that first major investment. And to be able to reach out to this growing real estate market, more sales people are needed in the industry.
There are, however, requirements that one should meet in order to make that first real estate sale. In June 2009, Republic Act 9646 or the Real Estate Service Act was signed into law.
The RESA requires everyone at the forefront of the real estate industry, especially the sellers, to be licensed under the Professional Regulatory Board of Real Estate Service.
The implementation of this law prompted local property developers to require their sales people to take up the board exam to become licensed real estate brokers.
Aside from being a Filipino citizen, the examinee should be a holder of a Bachelor’s degree from a state university or college or other educational institution recognized by the Commission on Higher Education.
Sales agents unable to comply with the requirements to be licensed real estate brokers eventually become “accredited salespersons” under a broker, provided they finish at least two years in college.
The move to professionalize the real estate industry was well received by the developers. In fact, real estate is now a four- year bachelor’s degree course, thus giving prestige to the profession of being a broker.
Real estate brokers and sales persons help buy, sell and rent properties. They have the freedom to choose what type of real estate projects they want to sell and where they wish to be accredited.
In my 24 years with Sta. Lucia Land Inc., I persistently preach “Project Focus” to our sellers, as this was the key to the success of all our agents. To help real estate newbie make that first sale, here are few tips to keep in mind.
TIP # 1 : EXTENSIVE LIST OF KKKS
We all have our kaibigan, kamag-anak, kapitbahay, katraba
ho, among other K’s. Your KKKs are your first prospects. Almost 90 percent of a new agent’s first deal (be it a lot, house and lot, or a condominium unit) came from one of these KKKs.
So start making that list and make sure to include your KKKs’ e-mail addresses and contact numbers, as you will need those details when you start networking with them.
Don’t hesitate connecting with your KKKs—you will never be able to deliver results if you do. First time jitters can be expected but remember: these people know you and they will understand that you are just starting your real estate career.
List down all queries of your prospective buyers and seek assistance from your broker or manager. Make sure you revert to your prospects regarding their concerns. And before ending your conversation, make sure you get an appointment with them.
TIP # 2 : APPOINTMENT, APPOINTMENT, APPOINTMENT
A simple phone call or email won’t work. You need to set an appointment with your prospective clients for a chance to personally pitch the project. Tag along your broker or manager to ensure all possible concerns are explained and answered down to the last detail.
Be ready with a particular lot or unit that you plan to offer to your client, along with the computation and proposed payment terms. But most importantly, have all those initial documents prepared for your prospect just in case he will be willing to sign and reserve on the spot.
TIP # 3 : ALWAYS ASK FOR REFERRALS
Asking for referrals is an extremely powerful sales tool. Ask your clients’ for their possible KKKs too, and you will never run out of leads. People prefer to do business with people they know. It is more comfortable to approach someone if you were personally recommended and endorsed.
If possible, ask your client to also contact their referral. Based on sales booked, a high percentage of closed deals are generated from referrals simply because of trust.
TIP # 4 : SET A PERSONAL GOAL
Everybody wants to achieve something in life. So what is your ultimate goal in joining real estate?
It is true that being a real estate broker will give sales people their financial freedom. For many sales people, the commissions and incentives they get from every sale are gratifying enough that they no longer want to be in an 8-to-5 office job.
In this profession, you can dictate how much you want to earn. How? Just list down how much commission you want to earn every month. Divide that with your commission rate and you get the total amount of units you have to sell for the month. Then divide that amount with the average selling price of the lot or unit you are selling to get the number of lots or units you need to close for the month.
Earnings in real estate can be limitless. I have been a witness to the successes of many sales agents. Some of them came from the corporate world, after deciding to settle down with a job that pays on a commission basis. And now they can buy their own home and car; they travel; they control their own time. What can be more rewarding than that?
TIP # 5 : KNOW YOUR PRODUCT
To be really successful in this industry, one should know the product by heart. Clients are demanding and their expectations should be responded with immediately.
Strong product knowledge gives sales people the confidence needed in persuading their clients. This is a must since they will likely encounter difficult questions from their prospective clients that they should be able to respond to.
To sell a project, you must believe and trust the project and the developer. Do a project site visit several times until you are confident that you have fully understood the project.
List down all the advantages of the project that you see and why. List down too the disadvantages and possible objections you might encounter when you present it to your prospects and write possible reasons to counter those objections.
Once you have taken all these to heart, you will be ready to join the successful world of real estate practitioners.