Module 9: Essential Skills for Brokers

bjectives

This module provides a venue for the practical application of some concepts covered in the previous modules of this course. It exposes brokers to some methods of client creation, highlights the importance of following a disciplined and an ethical work routine and provides a basic step-by-step real estate transaction through case studies and checklists.

The module covers:

• Prospecting and lead generation.
• Comparative Market Analysis (CMA).
• Real estate financial concepts .

 What skills/knowledge must a broker cultivate?

 Soft skills:
       People’s skills
       Networking, Marketing and Sales
       Psychology

• Mathematical/Architectural
• Technological
• Planning/Organising and time-management
• Multitasking

 Marketing

Dubai Today,

• Enjoys a free market economy.
• Prices are dictated by Supply and Demand.
• What kind of market are we in, buyer’s or seller’s?

 Dubai Market

Buyer’s market (also called soft market)
A market where sellers are more than buyers. This excess of supply over demand results in low prices of goods.
Generally, the market is slow and properties take longer to sell.

 Seller’s market

A market where buyers are more than sellers. This excess of demand over supply results in high prices of goods. Generally, properties sell faster.

 “You want to be in the middle”

Demand=Buyers
Supply= Sellers

 How to Reach them???

Marketing

Is Marketing same as Selling?

Selling and Marketing are two inter-related processes. The key difference between Selling and marketing us that selling refers to the transaction where a good or service is being exchanged for money whereas marketing refers to the activities and plans that are taken by the companies to promote the buying and selling of a product or service.

The marketing mix (P’s of marketing) includes: Product, Price, Place, Promotion, People

Prospecting: Generation Leads
Contact+Follow-up>Networking

Network
Sphere of Influence
Company leads
Own Marketing Leads
Old Clients

How to Generate Leads

• Calls: NO cold calling.
• On-line presence: Webpage, social media.
• Ads, flyers, printed matter.
• Teaming –up with a star.
• Open Houses.

 What is an OPEN HOUSE?

• It is where an agent invites the public to visit a listing he/she has. The open house is usually hosted for a few hours during the weekend and food and beverages are served.
• Visitors will register their names and contact details, their comments on the property and what is it they are looking for.

 Conditions for a successful OPEN HOUSE?

• Listing exclusivity (exclusive Contract A).
• Seller’s approval.
• Community permission.
• Presentable property.
• Broker present.
• Seller absent.

 Benefits of an OPEN HOUSE

• Saves time as you can show the property to many people at once.
• Creates urgency in the minds of interested buyers to finalize when they see

other visitors.

• A great way to market yourself and your property and generate warm leads.
• Helps establishing you as the expert in that area.

 What is your main objective of hosting an open house?

• To increase your contacts data base mainly of buyers!

 Other objectives:

• Sell the listed property.
• Market yourself.
• Establish your presence in the area.

Hunter
Farmer

HUNTERS (transactional)

• Hunters typically look for their sales increases from transactions with new customers.
• They are interested in prospective clients who have an immediate need to buy or sell.
• They do not necessarily attach themselves to a particular location or niche market.

 Some facts about hunting:

1. a) It is a numbers game. Lots of contacts/ fast results
2. b) Hunters want solutions and results, more than they need a relationship
3. c) Hunters seek instant gratification

 Farmers (Institutional)

• Farmers concentrate their time, effort and budget on a specific location or niche client and strive to become the expert.
• They employ a customer-centric method of selling, very focused on the needs and wants of their prospects and customers.
• They act as trusted business advisors working to bring strategic value to

each transaction.

• They believe in the existence of a strong, customer-focused, strategic relationship that effectively locks out competitors, thus lowering the cost of doing repeat or additional business with that customer.

 Farmers (continued)

• Customer loyalty arises naturally out of the strategic-level partnership created when the sales representative takes a genuine interest in helping the customer meet strategic goals.

 Some facts about farming are:

1. a) Requires patience/waiting.
2. b) Education and information is consistently sent out to gain trust.
3. c) The goal is to stay positioned, educate the clients, to gain their trust so that when the time is right, the client will close with you as the rep: you have harvested your crop.

Farming entails:

       Building: Choose a neighborhood: Start small and grow.
       Knowledge: Know your product.
       Recognition: Become the recognized local expert.
       Involvement: Become a member of the community.
       Focus : Concentrate your effort and resources.

 Benefits of Farming:

       Builds a solid networking base.
       Provides higher professional security/stability.
       Allows better prediction of income.
       Logistically feasible: Saves time, money and effort.
       Allows easier multi-tasking.
       Allows smarter allocation of resources.

 You can decide what kind of professional you want to be.
However, a combination of both with an emphasis on farming is a winning scenario.

Marketing

Remember

       Marketing is a continuous daily activity.
       Educate yourself.

       Stop cold calling; have clients call you instead.
       Identify your target market: Investors, end- users, residential, commercial, buyers…etc.
       Look for the most profitable niche and tailor your plan accordingly.
       Identify your geographical farm; don’t spread yourself thin.
       Market yourself: Don’t be an undercover agent.