While this may sound like common sense, it is not yet a given how deep changes in sales and marketing will go as we exit this recession, but it is a certainty that these changes are now underway and not a coming attraction.
We are seeing more and more clients who have developments in place or about to start new developments and want to know where they need to be as far as product, price and selling methods. Top executives in charge of Marketing and Sales are seeking answers to those questions as well. The scars of this recession have created an even more wary consumer looking for affordable alternatives yet frozen with doubt when he finds what he thinks he wants only to be mentally paralyzed and unable to complete the purchase. Brokers in general real estate and new home sales are frustrated that showings and traffic are increasing but prying people loose to make a deposit and go to purchase contracts is yet another dilemma. There are sales being made, but most are due to large once in a lifetime discounts. When these discounted sales are gone what methods will lure the consumer back into the housing market?
Closing Tools for the timid. How do we nudge the consumer to make that deposit and then close? This is becoming an art form for sales associates. Here are some suggestions:
1. If your appraisals are strong and reflect your true market, be sure to emphasize this in your sales presentation. If you think they are strong but are not sure it may be worth your while to hire a couple of appraisers and confirm your suspicions by getting product appraised independently.
2. If you are considering price discounts to draw traffic, be sure to have a deadline on the length of time the reduced offering is in affect. Before you decide to discount use your appraiser as we discussed above. Take a couple of homes or home sites and pay for your own appraisal. After you lower the prices, the appraisal becomes your closing tool. You may also be better equipped on what the actual discount should be; it may not be as bad as you think.
3. After sale freebies offered to induce a closing.
a. Pay 1st year HOA dues, or whatever period makes financial sense.
b. New homes to be built- sewer hook-up fees or septic tank approvals
c. Various closing costs pre-paid
d. Cash towards moving fees
e. Free lawn service for a period of time
f. Gas cards
4. Be sure your sales staff quotes subtle housing news improvements: National
inventories down, housing starts up, prices begin edging up.
5. Now that the news media is quoting more optimism, insist that your sales director and sales staff read and understand daily financial papers-WSJ for example. Information in the Wall Street Journal has been positive the last two months on the housing recovery and continues to report as such. Builder stocks are up. These are strong closing tools to be shared.
6. Sales staffs need to be well read and well spoken and exhibit confidence in facts pertaining to the housing recovery.
7. Here is what is back in vogue for selling:
a. Dress professional and exhibit a sincere interest in your customer
b. Bring back polite etiquette and thorough follow-up.
c. Follow up in personal ways: sending interesting news clips or magazine
articles, include monthly newsletter, develop specials for clients that have
visited the sales office - make them feel special.
8. Enlist neighbors who have already purchased in the community to come by the sales office and chat with prospects - pay them a modest hourly fee if necessary,or use other spiffs.
9. Don't forget the referral base from others who have already bought. Post closing spiffs to your buyers for new home clients are more important than ever.
While it is hard to see a silver lining in our worst recession since the depression consider this. In the surge of easy sales in the last run up selling skills were replaced by order takers; you could sell snow to an Eskimo. Today the pendulum has swung way back to where no matter what skillful tactics worked before sales are slow and difficult. While the selling landscape and consumer habits are forever changed, basics, hard work, persistence and follow-up will eventually show results. Going forward, those old skills that rusted a little during the crazy days should be brought back and polished. The good sales people will actually be relieved to get back to a more sane and predictable market that will have a much longer and stable shelf life.
Happy selling,
The Edge Team
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