Selling

Make It FAB!

Barbie showing property

OMG Ms. Buyer, this property is so for you!. You should buy now!

Many agents may think they are doing a fabulous job at showing properties, and touting all the specifications of a property. However, are the clients really buying it? Probably not.

On your next showing, try making it FAB!

Customers buy benefits, not features. They want to know how much reasonable satisfaction could they gain from the property. Many agents know all the features of a specific property, but never translate the feature into a benefit to the client.

To do this, use the acronym F.A.B:

Feature, Advantage, Benefit

First start by mentioning a feature of the property: “This property features a tankless water heater.” Second, follow-up with the advantage of the feature: “The advantage of a tankless water heater is that it supplies instant, endless hot water.” Finally, the benefit to the client: “The benefit to you is you never have to worry about running out of hot water, while your entire family takes showers to get ready for church on Sundays!” There you have it: Feature, Advantage, Benefit.

Now let’s say you wanted to sell a beachfront home to a client. You list all the features: 300′ of beachfront; massive, 6 car garage; hand-scraped, Brazilian, cherrywood floors; reclaimed stained-glass windows; vintage styled Wolf appliances; and 5,000 gallon, saltwater fish tank. Sounds legit. So what are the benefits? That’s the tricky part. The benefits for each client are going to be different. One client may enjoy the benefit of living in luxury, while the next client may enjoy the benefit of being able to lease the property for a higher price.

To find out what benefits are important to each individual client, you need to listen carefully to what they want. Listen, ask questions, then listen more. Find out what benefits really motive them, then turn all the features into advantages that will benefit their specific needs.

Now go sell something.

The Law of Diminishing Marginal Listings

The Law Diminishing Marginal ListingsOne of my little brothers called me yesterday worried about whether or not he should keep his listing agent. I asked him a few questions, and he finally said, “I just think she’s too busy to list our house.” What?! Is this true? Someone is too busy to make more money? It is true, but not intentional. This is where I have developed a new law; it shall be known as the Law of Diminishing Marginal Listings. Looking at the image of the graph above, we see that the red line represents the number of listings. Additionally, the green line represents the ability to list one more property. The number of listings is increasing at an increasing rate, and will continue to increase into infinity. The green line, however, is increasing at increasing rate up to maximum capacity. After maximum capacity, the ability to list one more property changes the green line to be decreasing at a increasing rate. What does this all mean? Every Real Estate Agent only has the physical and mental ability to handle X number of properties at one time, and efficiently and effectively list/sell their properties. Once an agent reaches maximum capacity they are no longer providing a service; they actually become a disservice, increasingly, to all of their listings.

There may be a mathematical formula to equate the maximum, but there is a different maximum for each and every agent. The best way is for each listing agent to know what his or her maximum is, and make sure not to reach the maximum. Dr. Kimball said it best, “I don’t want you working at 100%. I want you working at 90%.” Why is that? Because people just get burnt out. There is no way for someone to work full speed everyday all day. Not possible. Even if they did, who would want to be around them?

The moral of the story… Ask your agent how many listings they currently have, what do they feel their maximum capacity is, and what can amount of time can they promise to devote to effectively selling your property. If you feel your agent is maxed out, then it may be time to find a fresh face in the game with only a few listings.