The Buyer Process
Act 1: The Buyer Counseling Interview
A Webinar with Larry Kendall
1. Working with buyers is a 3 Act Play.
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Act 1: _________________________________________
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Act 2: _________________________________________
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Act 3: _________________________________________
2. Typical results if you follow the Ninja Buyer Process
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_____% of your buyers will find their home on their first time out
_____% of the remaining 40% will find their home on their second time out
_____% Total (60% + 20%) will find their home on their first or second time out
_____: Average number of homes viewed before writing a contract (NAR Profile of
Buyers)
The remaining 20% either have issues that are beyond the capability of your
process to handle or you need to look at your process.
3. A Buyer’s 4 Greatest Fears (From Green Light Selling by Don Aspromonte)
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4. The Buyer Process Goals
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5. The Rule of Confusion
Confused buyers don’t buy. They _________________________________________.
6. The Rule of Clarity
Clear buyers are decisive. They ___________________________________________.
7. The Question Sequence
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Act 1 -The Buyer Counseling Interview
10-Step Buyer Process
1.
Greet
a. Prepare and coach receptionist: “You must be customer’s name. We’re really
glad you are here. Agent’s name is looking forward to meeting with you.
b. First 2 minutes – Connect & Take control of the process
i. Connect:
1. Enroll: “How are you today?”
2. Acknowledge: “Welcome.” Or “Thank you for coming in.”
3. “My name is ________________.”
You can feel when you are connected. If you are not sure,
gently nod and they will nod back if you are connected.
ii. Take control of the process. “If it’s alright with you let’s . . . “
2.
Meet – move to a different location – offer a gift
a. If you are meeting them at the house, greet them out front on the sidewalk.
b. If you are meeting them at a coffee shop or restaurant, get out of your seat and
go to them for your greeting. Then move back to your table for your meeting.
3.
Access prior learning (ask questions about their past). Examples:
a. Do you own your current home? How long have you owned it?
b. How many homes have you owned?
c. When you purchased your current home, what was the process you used to find
that home?
d. How did that process work for you? Any changes?
e. Are you familiar with how real estate works here? Are you familiar with the
current market?
4.
Buyer packet and agency disclosure
5.
Funnel process.
“Our goal is to help you find a great home and at the same time make sure you don’t
miss out on anything or pay too much. We have a process to help you do that called
the Funnel Process. Would you like to see how it works?”
Start with “show and tell”: ”Do you have any properties that you have found that you
want to put in the funnel?” On each property ask: “What was it about that property
that attracted your attention?” (Their first words are a dominant motivation.)
Key phrases:
a. Process of elimination versus selection
b. Make sure you don’t miss anything
c. Make sure you don’t pay too much
d. Some we will look at on line, some we will drive by, some we will go in
e. Our goal: For you to have a “Rolling Top 3”
6.
“On a scale of 1 – 10, where do you believe you are in the process? What would have
to happen for you to be a 10?” Listen carefully and probe. “Tell me more about
that….” “Is there anything else?” “Do you need to sell your current home?” Etc.
7.
Two pieces of paper – Star the 3 things you can’t live without
8.
What and why? Features & benefits (People buy their “Whys” not their “Whats”.)
(What)
Features
(Why)
Benefits_____________________
“85% Perfect Home” Dialogue
9.
Cash? Loan?
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Look at MLS Results
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Reframe expectations?
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Drive till you qualify?
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1% = 10% Rule
1% change in rate = 10% change in mortgage
• 4.5%, 30-years, $1,013/mo. = $200,000
• 5.5%, 30-years, $1,013/mo. = $178,476
• Your interest rate risk right now?
10. When we find it . . . . What will you do?
a. “Cream Puff” dialogue on urgency
b. “Lost house story”? (If you are going to tell a story, tell it here. Not in the
house.)
c. Prepare expectations
1. The Market
2. Negotiations
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3. Final Questions:
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“Do you have any questions before we head out?”
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“Would you like to know your odds?”
Common Traps
1. Key elements of the 10-Step Buyer Process (the subtle & hidden)
a. Order and sequence of questions:
i. Rapport-Connection Questions
ii. Foundational Questions (access prior learning)
iii. Diagnostic Questions (who, what, when, where, why, how)
iv. Solution (closing) Questions
Most common trap: Realtors skip Foundational Questions – can’t wait to
get to beds and baths. “Just read the foundational questions!!!”
b. Prepare a Buyer Packet
i.
ii.
iii.
iv.
Shows you are a pro & builds trust
Sets up “Equity Sensitive” Relationship
Let’s them see the contract in advance and get used to it
Provides a nice segue to talk about agency & confirm they are not
working with another Realtor
Most common trap: Most Realtors don’t use a Buyer Packet
c. The Funnel Process
i. Shows you have a process and are a pro versus a just a “cab driver”
ii. Handles their fears of “missing something” and “paying too much”
iii. Gets them committed to a process and gets everyone on the same
page.
iv. Gives them the “Greenlight” to move forward when they see something
they like
Most common trap: Most Realtors don’t use Funnel Process
d. Scale of 1 to 10
i. Helps you find out where they are in the process
ii. Helps you (and them) get clear on the steps necessary to complete a
transaction. (Everybody gets their “marching orders”.)
iii. Helps them get clear on diagnostic questions: who, what, when, where,
why, and how
Most common trap: Most Realtors never ask these questions
e. Two Pieces of Paper
i. Critical when you have two buyers
ii. You get input from BOTH buyers
iii. Having them mark their 3 “have to haves” helps them prioritize. Their
brain is more clear when they focus on just 3 to 5 variables.
Most common trap: Most Realtors skip this step
f. Whats and Whys
i. People buy their “whys” not their “whats”
ii. Load the “whys” into your MLS search
Most common trap: Most Realtors do their MLS search based on
“Whats” (they can’t wait to ask about beds and baths) and show
properties based on “Whats” not “Whys”
During this step, have the conversation about the 85% home (finding
the perfect home is difficult)
g. Cash? Loan? House to sell?
i. Have them checked out by a lender you trust (second opinion for them)
ii. If there is a mismatch between what they want and what they want to
spend, decide how this will be brought up – You? Lender? MLS?
Most common traps: Relying on their word about lender; they have a
lender who can’t deliver; having this discussion too early in the process
before the foundational questions.
h. MLS Search
i. Make sure you show matches, under contract, and available
Most common trap: Realtor just shows them what is available and
misses the opportunity to show that properties are selling.
ii. Have discussion about actives and solds you will see in the
neighborhood and you have the information available on those
properties
Most common trap: Realtor not having active and sold information
readily available. When buyer sees a house they like (but are not being
shown) they immediately decide to delay any decision to buy until they
can go home and check it out on-line.
2. Handling Buyer Objections:
a. By following the 10-Step Buyer Process, buyer objections are greatly reduced
because:
i.
ii.
iii.
iv.
v.
Buyers are more clear (less confused)
Buyers are more confident (less fear)
Buyers are more focused (fewer criteria and variables)
Buyers are in a “Balanced Brain” Decision making mode
They have the “Greenlight” to move forward
b. When buyers want to “think about it” they are either afraid or confused or both.
The 10-Step Buyer Process helps them become clear and confident, so they are
prepared to commit.
c. For best results, do the entire 10-Step Buyer Process (When you make a phone
call, if you leave out a digit or put them in a different order, do you get the
results you want?) The same is true with the 10-Step Buyer Process. Don’t skip
steps. Don’t put steps in a different order.
Most common trap: Realtor skipping steps or putting them in a different order.
d. Sometimes objections/concerns will still come up. So, the Ninja needs to have
the skills to handle these objections/concerns. Objections come from either
fear or confusion. Ninjas do not “overcome objections”. Instead, we help the
buyer find clarity (opposite of confusion) and confidence (opposite of fear).
These strategies are covered in Act 3 – Soft Closing.
10-Step Buyer Process
(Steps 1 and 2)
Greeting– 1. Ask a question. 2. Thank you, welcome, or compliment. 3. Who you are.
Get connected (F.O.R.D. questions).
Meet in a different location (conference room or your office).
“I would like to ask you a few questions that will help me help you find the right home.
Is it OK if I take some notes?”
3. Prior Learning Questions
Where are you living now? __________________________________________________
Do you own your current home? _____________________________________________
How long have you owned it? _______________________________________________
Tell me a little bit about it. __________________________________________________
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About how many homes have you owned in your lifetime? ________________________
When you purchased your current home, what was the process you used to find that
home?
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How did you start looking? __________________________________________________
What did you do next? _____________________________________________________
How long did it take to find the home? ________________________________________
How did that process work for you? __________________________________________
Is there anything you would like to change on this purchase? ______________________
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If you could have this purchase go just the way you want it, what would that look like?
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4. Buyer’s Packet
Are you familiar with how real estate works in this area?” ________________________
I’ve prepared a packet of information for you. In here is everything you need to be
successful with a real estate purchase in this area.
5. Funnel Process
“Our goal is to help you find a great home and, at the same time, make sure you don’t
miss anything or pay too much for it. We have a process that will help you do that. We
call it the funnel process. Would you like to see how it works?”
Explain the funnel process. Does this look like a process that will work for you?
Do you have any properties you’ve found that you want to put in the funnel?
What was it about that property that attracted your attention? (dominant motivation)
Don’t miss anything. (Buyer Brought, MLS, On-line Searches, New Construction,
Foreclosures, For Sale By Owner)
Don’t pay too much.
Process of elimination, not selection.
Rolling Top Three favorite properties.
CMA to identify market value.
6. Scale of 1-10
On a scale of 1-10 how would you rate yourself in terms of being prepared to purchase a
home? 1 = Not ready at all. 10 = Ready to buy today. ____________________
What would have to happen for you to be a 10?
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7. Pieces of paper exercise. (Give each person a piece of paper.)
“After you have made your list, put stars beside the 3 things you can’t live without.”
8. What and why? Features & benefits. Draw the T (Explain the concept of the “85% perfect
home.”)
9. Cash? Loan?
Will you be selling your current home? ______________________________________
Will you be paying cash for this home or will you be getting a loan? _______________
If getting a loan: “Do you have a loan arranged? Do you have a lender? ____________
Would it be a benefit to get a second opinion from another lender? _______________
Discuss the 1% - 10% rule.
(A one percent increase in interest rates equals a 10 percent drop in buying power in
order to keep the same payment.)
10. What happens next? Is there anything We’ve Missed?
If we find it . . . . What will you do? ________________________________________________
Have the “cream puff” discussion.
Prepare for the negotiation process up front:
Price
Terms (earnest money, down payment, and financing or cash)
Dates (closing and possession)
Inclusions and exclusions
Contingencies (loan, inspections, attorney approval, etc.)
Would you like to know your odds of finding the right home on your first day?