Back to Basics

With a salesforce that’s largely untested in a soft market, real estate experts are stressing a return to core sales skills.

Source: BUILDER Magazine Publication date: 2006-05-01 By Pat Curry

Cheri Riley was interviewed by Pat Curry for this article in 2006 with BUILDER Magazine

A PROSPECTIVE CUSTOMER WALKS INTO A NEW-HOME SALES CENTER.

A sales consultant is sitting at a desk, talking on the phone. He looks up from his call, covers the mouthpiece, and says, “Brochures are on the counter, and the models are to the left. If you have any questions, just let me know.” John Schleimer and Bob Schultz see it every day, and it just drives them nuts. In a presentation that Schleimer made at the International Builders’ Show on selling in a soft market, he announced that 75 percent to 80 percent of new-home sales consultants “don’t know what the hell they’re doing.” It starts the minute a customer comes in the door, says Schleimer, president of Market Perspectives, a nationally recognized, Roseville, Calif.–based new-housing consultant and researcher. There’s no greeting, no attempt to qualify, and very little effort to demonstrate the benefits of the builder or the homes. Then there are no probing, direct or indirect closing questions, and precious little follow-up. “I leave a name and number every place I visit, and I get a follow-up call or correspondence only 5 percent or less of the time,” says Schleimer. How has it come to this? New-home sales trainer Bob Schultz, of Boca Raton, Fla., says that real estate sales have been so strong the last few years, much of the salesforce has never experienced a competitive market. “They think they’re selling, and they’re not,” says Schultz, who adds that he is training on this issue on almost a daily basis. “They’ve been very highly paid unskilled labor. People all over the country who used to work at the Gap or bartending, making $30,000 to $40,000, are now making $150,000 [selling new houses], and they’re confusing their salary with their skill level.” To correct the problem, Schleimer says, builders need to focus on training their salesforce. “I see so many builders relegate training to the lowest level of importance in their overall company,” he says. “I think it’s because they’re so focused on buying land and lots, getting them entitled, and the process of building the homes that they’re not really focused on how important the selling side of the equation is.” Schleimer predicts that as the market cools, builders will see significant turnover in sales consultants and managers who, “for the last two or three years, have not had to sell,” he says. “I’m pretty critical in this area,” he admits. “I’m not a sales trainer. I’m an observer, and I’m not observing in many markets the type of salespeople they need. It’s not good.”

MARKET RESEARCH

That’s why sales consultants for Cincinnati-based Epcon Communities are trained that the process is the same with every customer. “Human nature is [that] we will slack off,” says Nanette Overly, senior vice president of sales and marketing. “You’ll see a market where sales are just booming, but all they’re doing is just writing contracts. It’s not an indicator of a great salesperson; it’s an indicator of a pent-up demand. Things slow down, and you recognize the person wasn’t selling, he was clerking. Those are great deals to get, but it doesn’t make a good salesperson.” Epcon’s sales consultants are trained in critical path selling, making sure that every customer is treated as a prospective buyer. Whether a person is visiting for the first time or the fifth, he’s asked for the sale. “We don’t profess to be smart enough to know what’s going on in every customer’s mind,” Overly says. “Asking for the sale helps us understand their objections. We’ll say, ‘Can you share with us what’s keeping you from buying?’ Now that I have their objections, selling starts.”

But the sales process actually starts with sales consultants studying their market and their competitors, says Atlanta-based Cheri Riley, president and managing partner of Paces Ferry Realty, which represents new construction in the upscale Buckhead area. By shopping the competition, they find out what products and benefits are being offered in the market and how they can position their builder or community to stand out. They also learn how their own company is being described by other builders and can be prepared to address those points in sales presentations. And while they’re checking out the competition, they should check out their own product line. Riley recommends going back through the inventory and looking at it with fresh eyes to find the nuances that make the homes unique and special.

THE RIGHTWAY

There’s no service, of course, in telling sales consultants what they’re doing wrong without offering insights on how a sales presentation should be done. When a customer arrives in the sales center, two things need to happen, Overly says: Cell phones need to be turned off and feet need to hit the floor. Both actions show the customer that he has the sales consultant’s full attention—as well he should. “The best opportunity I have is the one right in front of me,” Overly notes. “You get up from behind the desk and greet the person coming in the door.” That greeting is the beginning of the sales process, Schultz says, and should include the name of the community, the name of the builder, and the name of the sales consultant. Here is an example: “Good morning! Welcome to Quality Homes at Spring Lakes. I’m John Wilson. And you are?” The name of the builder and community need to be mentioned at least six times during the presentation, Schultz says, to help buyers remember the community when they get home from a day of model-hopping. After the initial greeting, Schultz recommends asking customers how much time they have to look at models that day. Follow that up by breaking the ice. If it’s warm that day, offer them a cold drink. If it’s chilly, ask if they’d like some coffee, tea, or other hot beverage.

Next comes a discovery conversation to find out how long they’ve been looking at houses (where they are in the purchase process) and what they need and want in a new home. Notice here that we didn’t say, “Start a canned pitch about your builder and your product line.”

It’s important to ask about their priorities because the best sales center experiences focus on the customer, not the builder. So, don’t shortchange the interview process, Riley says. Take time to find out what they’re looking for in a home. If they’re not sure, ask probing questions. Ask about where they’re living now. Are they looking for something smaller or larger? How many people will be living in the home? Do they need space for a home office? Do they enjoy entertaining? All of these questions will help narrow down which homes will be the best fit for them and what features to highlight in the model demonstration. “You have a million different angles you could pitch,” Riley says. “If you’re just hitting rewind and doing a [standard] pitch, you’ll miss something. Match their personality type and zero in on what they want.”

It’s also the right time to ask about financing. It can be as simple as sharing the price point of the product line and then asking if that’s in the range they’re considering. Then ask if they’ve talked to anyone about financing the home. If they say something like, “We have that taken care of,” or, “That won’t be an issue,” they’re not ready to talk about it. If they say something like, “We’re pretty sure we’d qualify for a mortgage,” offer to spend a few minutes with them to discuss the options. “Customers look to you to help them through that,” Overly says. “If the sales consultant is relaxed with it, chances are the customer will be, too. For ones who get uneasy, you’ll sense that. It could be they do need the assistance and are concerned about being able to get financing. These days there’s a program out there for just about every buyer. Behind closed doors, the sales consultant can tell them about that.” It’s good to do this, Overly says, before doing a model demonstration so that they are only shown product in their price range. “Show them something they can’t afford and it creates challenges and obstacles that didn’t need to be there,” she says. Then it’s time to head to the models. A good product demonstration will cater to the buyers’ wants and needs in a home. If they say, “I love to cook,” then spend time in the kitchen and point out the features that will help them do what they enjoy most. If buyers are expecting or have a newborn, make sure they know which room would make a great nursery. Some points of the demonstration can be standardized, though, focusing on those items that aren’t available from competitors, especially behind-the-walls quality features and energy-saving extras that they can’t see and touch. Address issues that competitors are bringing up in their presentations. It’s important because, undoubtedly, customers have been to the competition or will go there soon. “Your customers will know [what the competition is saying],” Overly says. “If you can address that before they go, they have confidence in your expertise.” Before a customer leaves, ask for the sale. Schultz says he likes process-of-elimination closing questions that will lead to an answer of “Yes,” “No,” or “Maybe.” One of those is, “Is this the type of home you’d like to own?” If the answer is “Maybe,” you can ask what features of the home the customers like and if there is anything about the home that doesn’t fit their needs. Summarize what they said they like about the home and the community and create urgency with a statement about today’s buying power with something like, “This is an amazing time for you. Interest rates are the lowest they’ve been in the last 50 years. With rapidly increasing construction prices, your buying power will never be better than it is now.” “We teach salespeople that [customers] think about buying a home when they’re with you,” Schultz says. “You want them to think it through. The only thing that may happen by not buying now is an erosion of their buying power. It’s a Kodak moment. You don’t want to wait to buy the home and spend more than you need to.”

FOLLOW UP AND STAND OUT

The final step in the process is the follow-up. The experts agree that you shouldn’t let more than 48 hours go by without a thank you for visiting. Riley likes to send a note in the mail, followed up with a phone call within a week “with anything that’s changed before they get back out [looking at houses] the following weekend. To really get their attention, take the time to write the first note by hand. It’s impressive to receive a handwritten letter in this day and age.”

From that point forward, stay in touch in whatever format—phone, mail, e-mail, or fax—the customer prefers. Logical touch points can be responding to questions they had; giving them new information, such as a new model opening or the release of a group of lots; or asking about something they mentioned during their visit, such as a child’s sports tournament or a charity event they were hosting. Follow those steps and commit to regular training, and it won’t matter if the market conditions are hot or just lukewarm, Overly says. “There are no gimmicks in selling that work,” she says. “It’s all truly the basics of following a critical path and working hard and smart. It all comes down to treating customers well, connecting with their personalities, and following through with what you say you’re going to do. … The good, successful consultants that are there for a long time are focused on doing the best thing for their customer.”