Blog Post Numba 9

I ate at L'Opera in Long Beach. It was good. Long Beach itself is an Elizabeth NJ on the West Coast. Like an Asbury Park with Palm Trees. Which you can't really kill them for, without pointing a finger back at yourself.

I read a book by some skinny hippie clown named Kunkel. It's called Indecision and was long winded, predictable and kinda dumb. It seems a whole generation of writers have decided that finding out why you feel is more important than giving the reader something to imagine about.

The thick prose and storytelling gives way to outwardly cries for emotional help and blame placing. I want to read about people doing things that save them. Or read about someone who succeeded when he should have failed. Someone who failed when they should have succeeded.

If you throw in interesting characters and exotic/foreign/new locations we should be just fine.

I'll go ahead and get you all straightened out

I really do love you for taking me in. I should have moved here 10 years ago.

Every day is like a vacation, and I wake up and go outside and just smile.

But you've got some issues. Mainly fiscal. It'd be a shame to see one of the most beautiful

states in our country fall deeper into an already very large hole. The following are just some suggestions. Do with them what you may. But I'm solving your problem, so yous should pay attention.

1. State Universities and Colleges should be profitable. Even if they only make a dollar.

There are a zillion people in all the UC's. Make 'em pay to be there. It doesn't make sense that these institutions should be allowed to drain financial resources like they do.

2. Property taxes. Sorry but it's gotta be done. You could double California state property tax and it'd still be well beneath the national average.

3. Public transportation. You have got to be kidding me. Seriously, are you serious? Put someone in charge of this mess who has a backbone. They're called buses. 3rd world countries kick the shit out of California with their public transportation systems. New York solved the tunnel traffic problem by growing a spine after 9/11. They took that tragedy as an opportunity to put into place some very harsh rules, and then they enforced them. You couldn't get into the Holland Tunnel without at least 2 people in the car. People had to figure it out. They did. Problem solved. Imagine "the" 405 with half as many cars, and 14times as many buses? Buses with their own lanes that they robbed from oncoming (less congested) traffic. Aren't there scientists that spend their lives figuring this stuff out? I did it in a week, for free.

I'm not going to go off about fixing the corruption and cutting the fat. That's even beyond my evil mastermind capabilities.

How I've Neglected Thee

It's true, I've neglected you. Not likely that's going to change.

You never get a second chance to make a first impression!

If you cannot make a connection with your prospective new client within the first 60 seconds then you need to stop reading and quit whatever sales job you are currently wasting your time doing.

This is the easiest part of your routine.  Also one of the most vital.  They really should sort of like you.  It makes it easier.  Unless you're pitching from a position of impending doom or disaster (another post on that later), it would serve you well to have a nice rapport with whomever you're giving a presentation to.  It also aids in building trust.  Trust is a critical element to any sale.  Trust not only can be the lynchpin in getting you the sale, but it usually helps in keeping the sale after the fact, and don't forget return residual business.

I always asked my clients where they grew up.  Not just where they were from, but where they spent their childhood.  This immediately puts their brain working in the middle, and unless they were beaten routinely by their alcoholic parents, brings them to a place of comfortable euphoria.  Get them talking a little bit about this subject and watch the walls come crumbling down.  Ask a married woman about how she and her husband met, even if they hate each other now, and she'll be brought back to a place and time in her life where she was happy.  Happy people buy stuff.  Relating a VERY small tidbit about your life is nice just to establish a connection, but get back out quickly and back onto them.  Try and hold out as long as you can before even beginning to ask the questions relating to the product/service, it never hurts to have them ask you about your product/service before you begin.  But now they're ready.

Now you can start loading your weapon.

Who? What? Why?

We're now going to asked pointed and deliberate questions.  They vary by industry and trade, but it's all the same formula.  We're going to ask people the questions that will tell us what they like, what they don't like, and where in their lives our product can fit them.  Even if they don't want to.

We're going to go through a process of bringing out from them what's important to them (so we can sell that to them), we're going to find out what they dislike (so we can avoid trying to sell that to them), and we're going to bring them to a place in their brain that is comfortable and emotional.  People buy emotionally.  Emotional people buy more than stoic or analytical people.

Spend all the time you want trying to refute that fact.

It is important not to give any information during this step.  No selling while you're discovering.  It's a fatal flaw.  If you're selling you're not listening, you'll have plenty of time 

to sell later during your presentation.  It is essential that you are gathering the information

(ammunition) you will need later to close this deal.  If you ask the appropriate questions that are germane to your product or service, you'll get everything you need to pitch that prospective client hard and strong.  Failing to ask the right questions will just leave you pitching your heart out to someone who is convinced you're just out to sell them something.  Which is very impersonal and nobody wants to be sold anything.

Confirm What You Learn!

The whole point of doing your discovery was so you could gather up ammunition to completely load your weapon, so when it was your turn to talk (sell/present/pitch) you would have all the information you needed to show them what they are about to buy.  How do you know they're going to buy?  it's because they told you what they wanted during your thorough discovery.  They also told you what they didn't want!  So don't sell them that!  They told you what they like, now present your product as a perfect fit for those wants and desires.

By re-confirming the answers they gave you during your discovery you accomplish two goals.  The first is that they see that you listened (most people find that flattering).  The second is you confirm their answers, thus eliminating their ability to change their wants and desires sometime later in your presentation.

Skipping this step is always a major mistake.  By completely confirming what you've learned you've set up complimented the excellent discovery you did, and fortify it's ability to help you get some business.

Presentation / Cost Analysis / Display

Now it's your turn to talk.  Up until now you should have been listening.  They've told

you in the discovery what they want, and they've told you what they don't want (if you've asked the right questions).  Now that you have that information, you can sell them based on what they told you.  Which is why you did a Discovery Confirmation, right?  It's because now it's THEIR words, not yours.  It's what they said, not you putting words in their mouths.  Re-emphasizing a few times throughout the presentation exactly what they told you doesn't hurt, and using examples of how they can use "THEIR" product (speak like they already own it) puts them in the picture.  Sprinkling your presentation with actual examples of how the product or service fits perfectly into their lives is how you're going to win their business.  Don't be afraid to put on the breaks and ask them how this sort of thing would benefit them, and then allow them to tell you.  Then follow up and ask them to buy it.  They just might, right then and there.

Let's face it, it's just not that easy.  But we know this, we're professionals.  We're only asking to find out why they're not ready to buy (translation: they need more information).  We'd like them to buy at that point, but realistically our experience tells us that they've got some objections holding them back.  What better way to get those objections than to ask them to buy?  If you ask these questions early enough in your presentation, you have the rest of your presentation to get over them.  If you're going to give a demonstration or show a display that whole portion of your presentation can be dedicated to overcoming their objections.  With a healthy portion of closing questions and 3rd party stories you can find success in helping your client get themselves over their objections.

Close the Show / A.B.C

If you haven't already asked for the business at this point, most likely you don't have the first

clue whether or not they're going to be buying from you.  If you haven't already asked them for the business, you haven't been told no and there is no way for you to know why.

One of the reasons the steps have produced so much success is because they happen in sequence and they're designed to always let the salesperson know where he is with the client.  If you don't ask them to buy, they usually won't.

Re-setting the tone, reminding them and reinforcing the reasons they told you they were going to buy.  If you haven't already asked them how they want to pay (and you should have) do it now.  If you did your job, there are no objections to overcome.

Post Sale

This is what separates the women from the little girls.  After all the work, after all the calls, after the inevitable blow up of the deal that you handled like a Messier dish pass to Kovalev,  the deal is not done until the money is in the bank.

Follow up.  Send a note.  Follow up on that note.  Be absolutely certain the client has whomever's information they need to get the service or product they paid you for.  There is nothing worse than putting all that love and energy and english on a deal than to have it spike, because they didn't feel comfortable after the ether wore off.  It's called "buyer's remorse", and it can be prevented.

Phone Pitch: Expired Listings

Let's be honest; do you like calling people on the phone to solicit business?

The answer cannot be yes.  I simply refuse to believe it.  It's loathsome.  I hate it 

with all my might.  I would truly rather lift heavy things from one corner of a room

to another corner of a room all day than try and get someone to listen to me about anything on the phone.  I hate the phone to begin with, may God bless whomever invented the text message.

Now let's face it.  Sometimes you have to do what you have to do.  Sometimes you gotta sit your ass down at the desk and get out the notes and make the calls.  Desperate times call for desperate measures.  Ok, enough with the stupid cliches.  We work for money so lets talk about how you can make some money by calling expired listings.

First realize why listings expire.  In many cases people simply didn't price their homes correctly and they missed that first 30 day tidal wave of happy homebuyers with whom it's best to do business.  These are the people I've mentioned in my previous post who bicker with their real estate professional.  These are the people who should have shut their pie-holes.  Expired listings are frequently our friend Joe FSBO, who finally got a clue and "did you a favor" by listing his home with you.  Not because he realizes he's an idiot and situated himself outside the market, but because he's under the impression that a realtor should have a cell phone full of colleagues and buyers with checks already made out in his name.  Joe FSBO, what a jerk.

Here's some tips to make you more effective in contacting property owners with expired listings.

1. Obviously we identify ourselves and warm up to the best of our ability with whomever does happen to answer the phone.  Take their temperature, empathize with their concerns about the market, concede that real estate is slow, but assure them that homes are moving and qualified buyers are out there looking for great deals.  (Acknowledge, Empathize, Overcome)

2. Be sure to be clear as to what they feel prevented them from moving their home.  You cannot get them to list with you if you don't know their true objection.  If they blame the realtor, ask them to tell you more about where that realtor failed.  We can tell from experience it's more likely the owner failed the realtor, but expressing that is not going to get you a listing.  Once you know what their problem is, don't sell them that.  Ha.  It's basic.  Find out what they hate so you know not to bring the conversation there.  

3.  DO the math.  Find out the date they first thought about selling the home.  Find out the date they first listed the home (smoke out Joe FSBO by saying something like "You did the For Sale By Owner" sign on this property if I recall correctly, right?".   You absolutely need to know with whom you're dealing with if you plan to succeed.  From the time the first sign went into the ground to the day they decided not to extend the listing agreement.  This chain of events is crucial in order to do the equation below.

Basic Money Line.

I advertised my property myself at $700,000

Estimated market value of same property $580,000

Time since house first went on sale: 28months (listed 12months/2 brokers)

Estimated market value of property today $410,000

Approximate monthly mortgate payment $3,200

Lets start with the mortgage payments.  I love this part.

It cost these homeowners $89,600 to keep this house.  Not factoring any maintenance, or insurance or whatever else they spent while living there when they really didn't want to.  $90k is an expensive mistake.  That's almost the difference between what the market would give them for the house and their astronomical original asking price.  Plus, nobody took them seriously and probably nobody even bothered to make an genuine earnest offer.  Bring that to their attention.  Verbal offers are worth the paper they're signed on.

Now lets us continue to the real heartbreaker, today's value.

How's that $170,000 drop taste?  Bitter, I'm sure.

"Do you see by not taking the advice of a professional you've cost you and your family

about $260,000?".  "From what you've told me, Mr. FSBO, had you priced your home appropriately you would be ahead of the game by about $100,000, and that's taking into 

consideration the $30k commission a licensed real estate professional is entitled to".  

Punch ... now hug.

"I'm sure you see the value now of working with a licensed and skilled professional, Mr. FSBO.  Would you be interested in stopping the bleeding and getting that home sold?"

If they talk about waiting for the market to go back up before they make that decision, remind them that the market isn't assured to go back up.  It goes in cycles, true.  But when?  What if this downward trend is really a re-aligning of how prices SHOULD be and the next upturn of the cycle doesnt happen for 30years?  Are they interested in staying where they are for the next 30 years?  What if when the banks start lending again, the rates are back up in the teens?

He should be sick by now, make him well.

By selling now (quickly and efficiently) he more than likely will still earn a nice profit from the original purchase price of his home.  And even if he does not, even if he only gets exactly what he paid into the home, what did he gain?  ............ wait for it....................

"nothing, you say?".... "well, actually... Mr. FSBO, you actually gained XX amount of years of free rent".  (give that a second to sink in).

Now go for the close.

"Mr. FSBO, I think you would agree that pricing and working with a professional are the keys to getting the most return on what is likely to be one of your key investments.  I suggest we re-list your property at slightly below the market average today to see what kind of qualified offers we get.  Remember, you have no obligation to me or to accept any offers you don't feel are practical for you and your family, but also remember that the time we already let pass cost you about $250,000 dollars".

"I'd like to meet you in person and discuss the listing of your home, can you stop by my office tomorrow morning?"   Always have them come to you, and if you can, schedule more than one fish at the same time.  Let them wait, or let them see you have other people waiting.  Your time is valuable.

I realize this is basic, but it does plant some aggressive phone tactics in the minds of some of us who are just dialing to be dialing.  You have to have a plan in order to close business.  As an investor, I took terrible delight in calling ol' Joe FSBO after he gave in and finally went with a realtor.  I'd do the math for him and remind him of my original offer, clearly showing him he would have made more by being smart and having me come right over with a check and a contract.  But I'm demented and competitive, no foolin.

You Missed the Boat

Spiraling out of control the real estate market has led to panic among homeowners, especially those that were planning on selling their property at a huge profit.  Unfortunately, real estate is not as easy as it looks.  Many a moron has pitched a sign in their front lawn thinking that anyone could do it.  Then they go inside and start planning what to do with their certain financial windfall.  Only to have that property sit on the market (ultimately missing the first wave of attention from real qualified and capable buyers) for months, eventually getting passed around by eager real estate offices/agents hoping to get lucky.

Rule #1.

Don't do it yourself.  It's stupid.  There's a reason these people spend all day in the trenches, it's so they'll know the real value of property.  Pay the stupid commission.  Nothing makes us quiver more than a FSBO sign.  I typically refuse to deal with them, even as an investor.

Rule #2.

Listen to your agent.  If you find yourself in a bicker with your chosen agent over the initial listing price, you've already lost.  They know what the market will bear.  It's also in their best interest to sell your property for the most they possibly can.  Keep in mind how many times that commission gets split before they actually see any money, some agents end up with as little as 1% of homes they sell.

A smart strategy used with tremendous success by the sharpest agents is pricing your property competitively, but on the low side of the market spectrum.  This is impossible to convince Joe FSBO, even after his property sat for months with nothing but tire-kickers parading through his living room and looking through his closets.  He only knows that the guy down the block got $XXX,XXX.00 for his house, so surely his home can command at least that much.   Joe FSBO needs a smack and a shot of reality liquor.

By pricing the property lower than the expected sale price you instantly get the attention  the serious and ready buyer pool.  These are people who listen to their capable realtors, and have had enough time analyzing the market to know what a great deal is.  Now what will be the outcome?  that's right...... offers!  Not just verbal back and fourths, but actually signed contracts from actual people with actual pre-approved mortgages.  They're looking to buy a property and move into it.  These people have budgets and good credit.  People with budgets and good credit can come up a little higher if they want something badly enough .  These are the people who will buy your house. You even get to filter out the "I'll buy yours when I sell mine" insects.  Like a screen door.

But do you see the difference?  Now you have power.  Nobody says you have to accept said offers.  Has anyone ever heard of a counter offer?  Is it unthinkable that more than one interested party might bring the price of the home back up to where it rightly should have been in the first place?  Nobody is going to begrudge you for waiting a little longer for a possible offer at a higher price.  If they do, fuck 'em.

In times like these it's the real money that comes out of the woodwork.  My first real estate class teacher taught me that.  His name was Peter and he sold houses in Elizabeth, NJ for 40 years.  When the market drops and people are in a panic, you see real money scoop up great pieces of property for unthinkable deals.  Maybe if play our cards smart, one day we can come out of the woodwork.

The best sort of meal

Colors and hues, lost and confused. One thing on the mind with so much in front of you.

Restaurant David Drake

This was good. I'd been dying to get over here since they've opened. The Chef de Cuisine (Alex Stotler) has been a favorite friend of mine for almost 20 years. It's shameful I havent been in already to show support. Not that they've needed it from me. It's well known by anyone with a frickin clue about food in New Jersey that this place is the real deal. Whenever you throw experience gleaned from places like the Stage House (see previous post) or Ryland Inn, or Frog and the Peach you know you're dealing with some heavy hitters. These cats rock hard. I can't think of any other way to describe it.
We had the tasting menu. Tom suggested we get the opposite choice of the two offered for each course. He's a genuis. It was that good. I'm not even going to begin to describe the dishes, I fear I'd fall short of doing them proper justice. It wasnt long before there was no formality between the two of us as we'd reach over the table and into the opposite plate. Neither of us waited to be offered the last bite of anything. This is my idea of a good time.
Rahway isnt really famous for anything. They have their own incinerator. It has potential as a commuter town, but I really dont care. All you need to know is David Drake is one of those places you can skip lunch for. You're going to get great service, your going to have a shot at some above average wines, and you'll know when that first course comes and you start to tuck in
that you made a very wise decision.

Clayhouse Vineyards

I dont make it a habit of bashing a boutique winery. I dont recall Alan ever beating anyone up either. There's just too much good to be said about the people who dedicate their lives to their passions. But an exception must be made for the above mentioned producer. You're not going to have an epic experience every time you pop a cork *or twist a cap ;), but there should be something about the juice you can respect. No trace of that here.

You'll notice there's no place on avawine.com to buy Clayhouse. I can buy bug and tar remover at Sears.

Benedict Arnold

I should feel guilty. I dont though. Staying at the W Hotels makes me happy. Staying at a regular hotel doesnt make me feel like anything. Usually I'm tired, but that's about it. When I stay at the W I'm seldom (if ever) tired, usually not tired at all. I dont watch much TV while I stay at the W. I can sit around and do not much of anything at the W. There are not many places I can just sit around and do nothing. W Hotels Worldwide happen to some of them. I've constructed a list of some of the others:

Guggenheim Museums. The Beach. The Short Hills Mall.

That's all that comes to mind.