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Developing Sales Skills

MODULE OBJECTIVES
At the conclusion of this module, the sales professional will be able to: 1. Create a need-feature-benefit-agreement statement 2. Create a Cushion, Restate, Isolate and Question, Answer, Commitment statement (CRIAC) in order to address and overcome various objections

Selling is an orderly process of uncovering the needs of buyers and sellers and finding practical solutions to meet those needs. In this module you will learn basic skills and communication concepts in order to develop smooth-flowing sales dialogues and build confidence in your ability to help people make good buying and selling decisions.

Tools and Resources

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Need-Feature-Benefit-Agreement worksheet Sample scripts Sample CRIAC steps CRIAC worksheet

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Developing a Sales Sense

Good sales skills begin with developing a sales sense. There are three stages of focus that sales professionals progress through as they learn to develop their own sales sense. 1. Focus on the Product: In the beginning, new licensees feel that they must learn everything they can about real estate sales before they can present themselves credibly to buyers and sellers. Their focus is on the product and the process, rather than the customer. 2. Focus on Self: At this stage, sales professionals are comfortable with the product, and begin wondering, How am I doing? Their focus turns to memorizing scripts and presentations and what to say in various situations. In conversations with buyers and sellers, sales professionals tend to think ahead to the next question rather than listening to the other person. They talk about themselves in sales presentations, putting themselves at center stage. 3. Focus on the Customer: This is the final stage in the evolution of developing sales sense. At this point sales professionals know the product so well that they dont have to talk as much about it. They are comfortable with themselves and can allow someone else to shine in their presence. Their attention is directed to their customers and they are keenly aware of the how the presentation is going. They ask for, and welcome, feedback. They constantly ask themselves How does the customer feel?

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The Sales Process

The sales process is sequential. It begins with prospecting, moves on to building relationships and understanding wants and needs and motivation through presenting benefits, and finallyclosing.

Prospecting
Prospecting is meeting people and asking questions to discover listing and selling opportunities.

Building the Relationship

Customers have relationship needs. Buyers and sellers will ask themself:
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Do I like the sales professional? Sellers and buyers alike respond to the first impression of the sales professional. They want to work with someone they can feel friendly toward, as well as respect. Do I trust the sales professional? This is the most critical element in building the relationship. If a buyer or seller trusts the sales professional, he or she knows that what the sales professional says is credible and that the sales professional will act in his or her best interest.

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Understanding Needs and Motivation

When you have created a comfortable climate of trust and rapport, buyers and sellers will want to tell you more about themselves and what they need. This is your opportunity to help them find solutions. Buyers and sellers will act on their emotions, so listen for their true motivation beneath the words. This step is critical. Your task is to ask questions to find out why they want it and why it is important to them. For example, a purchaser may state: Purchaser: I want a home with a gourmet kitchen and plenty of storage space. Sales Professional: I want to make sure I understand your needs. Please describe what you mean by a gourmet kitchen and tell me why that is important to you. Purchaser: I would like to have custom hardwood cabinets and either marble or granite counter tops, a spacious center work-island, a top-of-the-line convection oven and Sub-Zero refrigerator. I like to entertain. My old kitchen was too small and outdated, which made it difficult to prepare large meals for family gatherings. At the conclusion of this step, expressions of motivation should have told you why the customer wants the product and why it is important to him or her.
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Why it is wanted Small and outdated kitchen Why it is important Entertain and prepare meals for large family

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Presenting Benefits
Without defined benefits, buyers and sellers may not be able to rationalize the decision to buy or sell. Adding a benefit to a feature creates value in the mind of buyers and sellers, and you are able to satisfy two important concerns: 1. How the product or service satisfies their needs 2. How the value received is greater than its cost The basic guideline is to present the benefits of the product or service before discussing the cost. By discussing benefits first, buyers and sellers can build an emotional attachment to the product or service. If the emotion is strong enough, they will rationalize why the price is right. The way to establish an emotional attachment to a product or service is to show buyers and sellers the benefits, not just the features. Features are physical descriptions of the product or service. Benefits describe what the product or service can do or how it will make the buyer or seller feel.
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To a buyer, a gourmet kitchen is a feature. Being able to entertain and prepare large meals for family gatherings is the benefit. To a seller, an open house is a service feature. The benefit is exposing the home to more prospects, thus reducing the marketing time, so the seller can get settled in his or her new home faster.

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Presenting Benefits - Gain Agreement

Once you have presented a feature with an appropriate benefit, you need to test whether you are on the right track with the customer by asking a trial close. In other words, is the feature/benefit truly important to this customer? Is the benefit greater than the cost? A trial close is a question that asks for an opinion or feeling toward something, and elicits small agreements or yeses. The following are examples of trial closes: How does that sound to you? Do you feel that this would satisfy your needs? Am I on the right track? Does this sound like a good idea to you? If you get negative answers to trial closes, change your approach, or present different benefits. If you get positive answers, then ask for a decision.

Need-Feature-Benefit-Agreement Statements
Presenting benefits is an important step in developing sales skills. Follow this simple guideline in creating a benefit statement. 1. Summarize the need that the customer has expressed 2. Describe the feature or fact 3. State the benefit 4. Gain agreement

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Need-Feature-Benefit-Agreement Statements
Example #1
Summarize the need You said you were tired of sharing a bathroom with your three children. Describe the feature/fact This home features a separate private bath off the master bedroom. State the benefits This additional bathroom will give you the privacy you are seeking and provide added convenience to everyone in the house. Gain agreement The additional bathroom presents a great solution to your needs, doesn't it?

Example #2
Summarize the need You mentioned that Internet marketing was important to you. Describe the feature/fact Prudential Real Estate and Yahoo! Real Estate have an exclusive, multi-year marketing agreement that enables visitors to the Yahoo! Real Estate Web site, looking for properties in our town, to connect directly to our companys Web site. State the benefits The benefit to you is more exposure for your property, and more potential buyer inquiries. The more buyer interest we generate in your property, the sooner we should attract a buyer who will want to make an offer. Gain agreement Can you see how this added exposure could help your home sell faster?

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Creating a Need-Feature-Benefit-Agreement Statement

Listed below are various property and service needs that may be important to buyers and sellers.

EXERCISE:
Create your own need-feature-benefit-agreement statement by using one of the sample property or service needs.

Sample Property Needs

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Sample Service Needs

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Storage space for sports gear Play room for children Fenced yard for pet Cul-de-sac lot for safety Private home-business office In-ground pool for summer Updated kitchen / large family Space for in-law suite

Technically competent Focused on customer service Internet exposure National promotion Knowledge of the area Outside area contacts Strength of a national brand Committed to my needs

Summarize the Need:

Describe the Feature:

State the Benefit:

Gain Agreement:

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Closing - Obtaining the Buying/Selling Decision

The final step in the sales process is the close for a buying or selling decision. For some sales professionals, this step is the most difficult and requires both skill and confidence.

Methods of Asking for the Decision

Minor Point: Ask for a decision on a minor point rather than on the entire sale. Gain agreement on one issue. If the customer agrees on that issue, you might be ready to close for the sale. See examples below.
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Is a closing date of June 8 OK with you? Did you want to ask the seller to assist with your closing costs? How soon do you want to schedule a home inspection? Shall we include the hot tub in your offer to the seller?

Provide Alternatives: Another way to question on a minor point is to offer a choice. See examples below.
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Is a closing date of June 8 OK, or would the 15th be better for you? Is an earnest money deposit of $2000 agreeable or would $3000 be better? Do you want the seller to replace the carpet or take the property as is?

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Situation Analysis
Initiate Physical Action: Either before or during your closing questions, begin filling out a purchase or listing contract. When it is completed, turn it around, summarize it, and ask for the signature. Stop Talking: Once you have presented your case and asked for a decision, stop talking and wait for the answer. The customer is thinking and justifying why he or she should sign the agreement. The customer may be feeling tension, and the only way to relieve it is to make a decision. Dont make a decision for the customer by talking. Ask again: If the answer is no, find another way to ask again. It takes time to make a commitment. The easiest way for the customer to stall for time is to say no, even though the response might actually mean, not yet, or give me more reasons to buy/sell. Probe for reasons behind the hesitation and summarize the need. Describe other features that meet the customers concerns and state the benefits of the solution. Gain agreement by asking another minor point or alternative choice close. If you truly understand the needs of the customer, and believe your solution is in his or her best interest, then your persistence will be a reflection of your sincere desire to help the customer make a good decision. Be careful not to let your persistence frustrate the customer. If he or she is not ready to make a decision, then take the concerns as an opportunity to gather more information and data. Repeat the process of presenting benefits to help the customer make a decision. Remember, your role is to support the buyer or seller during the decision-making process, regardless of the outcome.

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Objections
It is typical for buyers and sellers to raise objections. An objection does not mean no sale (or no listing). It does mean the buyer or seller needs your help in making a decision. An objection indicates the buyer or seller is really thinking about purchasing/selling. He or she would not raise a concern if there were no interest in moving forward. Before you begin the process of handling an objection, pause for a few moments. The buyer and/or seller may resolve their own concerns or voice additional ones. Remember, in the search for logical justification to purchase or sell, the buyer or seller must feel free to raise concerns.

Five Steps for Handling Objections (CRIAC)

The following is a five-step approach for handling objections, called CRIAC (Cushion, Restate, Isolate, Answer, Commitment): 1. Cushion the resistance by offering a statement acknowledging the concern without expressing agreement or disagreement with what has been said. You are simply indicating that the buyer and or seller is being heard and that their concern is important to you. 2. Restate for clarification. By restating the objection back to the buyer or seller, you demonstrate your willingness to listen. 3. Isolate The purpose of this step is to draw out and clarify all concerns. Determine if it is the only concern, or if there are other additional objections that must also be dealt with. When asked, if the buyer or seller responds that he or she would make a positive decision if the problem were solved, then you are in a position to move forward. 4. Answer There is a time when sales professionals must provide answers. This is done only after you have completed the first three steps of the CRIAC process. You might even ask if the buyer or seller has an idea for dealing with the concern. There are several different ways that you can help answer the customers concerns. Your role will be to help provide options that lead the buyer or seller to an agreeable outcome. 5. Commitment If the buyer or seller agrees that the problem is solved, then ask for a decision. If this was the first objection or concern raised, remember you may have more underlying resistance to deal with.

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Sample CRIAC Steps

1. Cushion:
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I understand how you feel. Thats a reasonable position to take. I appreciate your concerns. Thats interesting. Im glad you brought it up. I agree. You probably have good reasons for feeling that way. Thats a good question. A lot of people in your position share that same concern. That really is an important point. _____________________________________________ _____________________________________________ _____________________________________________

2. Restate:
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As I understand it, you feel If I understand you correctly youre saying Does this mean that It sounds like (state concern) is important to you. So that I completely understand, what youre saying is The real question is Your feeling is that ____________________________________________ ____________________________________________ ____________________________________________

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3. Isolate and Question:

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If we could resolve this, do you feel Other than that, is there anything else? Is this the only reason If it werent for ____ would you What is it about ____ that concerns you? Why is that important to you? ______________________________________ ______________________________________ ______________________________________

It is important to clarify the objection and to pin down exactly what it is the buyer or seller is objecting to. Always question the customers position, and never defend yours. By questioning the objection, the buyer or seller is forced to justify the logic behind that decision. If the objection is invalid, then the buyer or seller will be unable to justify it. This saves you the trouble of answering objections that are really stalls for time. The buyer or seller also has an opportunity to answer his or her own questions.

4. Answer the Objection:

Reverse It: Reverse the power of the objection by demonstrating the benefit of the item and showing why the buyer or seller needs it. I can pay a lower commission to ABC Realty down the road. Yes, I agree that our fee is higher than this company. Thats the very reason why you should list your property with us. As demonstrated, our standards of performance are also higher as well as our commitment to get your property sold.

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Admit It: Simply admit that what the buyer or seller is objecting to is correct and why it is important. You wont promise to advertise my property in the paper each week? Youre right. Thats a promise I dont need to make. You see, our marketing program is designed to catch the attention of buyers who will be attracted to your property. By promoting your property on the Internet, we have the capability to attract thousands of potential buyers every day in addition to our print advertising. Reduce the Difference: When objections pertain to measurable items, discuss only the difference, not the whole amount. Measurable items would include: price, payments, costs, room sizes, distances from things, time, lot size, etc. Refer to the additional size of the bedroom area, or the extra $20 per month in payments, or the 8 minutes more of driving time. I wont accept anything less than a full-price offer of $215,000. You are currently paying mortgage payments of $1500 per month. If the house should happen to stay on the market for an additional three months, which it could, you would be out far more money than you would by accepting this offer for only $3000 lower than the listed price. By accepting this offer, you actually stand to gain an additional $1500. And theres no guarantee that another offer somewhere down the road will be any higher than this one. Explain It: Often an objection is a cry for information. By providing an explanation, many objections resolve themselves. Im not sure I want a lock box on my front door. Let me explain how the lock box works and demonstrate its safety features. Deny It: If the objection is unfounded or untrue, demonstrate and show why the buyer's or seller's perception might be misguided. XYZ company seems to sell most of the properties in this area. I can understand why you might get that impression. However, the fact is that our company sells 72% of all the properties it markets. That is currently higher than any other company in our MLS. Let me show you the data.

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5. Commitment:
If the buyer or seller agrees that the problem is solved, then ask for a commitment. Try any of these methods. Assumptive: Give a positive statement assuming the answer is yes. Im looking forward to going to work for you in the marketing of your property. Minor Point and Order Blank: Having the buyer or seller agree to a minor point in writing or to fill in the blank is also an indication of their agreement. Since your only other concern was having enough time to arrange for the move, should we include in the listing agreement that you require a minimum of 45 days to close? Alternative Choice: Give the buyer or seller a choice between two options in which agreeing to either of them would indicate an agreement. Would it be better to include the appliances as part of the asking price, or would you rather leave them open to negotiation? Ask Their Opinion: By asking their positive opinion on a point of value, it justifies the reasoning to say yes. In your opinion, is this the type of service you expect from the sales professional you hire to market your property? Tie-Downs: Use phrases like Isnt it? Doesnt it? Wouldnt you? Dont you agree? A property this spectacular doesnt come around very often, does it? Feel, Felt, Found: This is a simple method to bring objections into focus. I know how you feel. Recently I had buyers who felt the same way; however, they found that the pre-qualifying process gave them a stronger negotiating position when making an offer.

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Sample CRIAC Script

Sales Professional: If we set a closing and possession date for the end of next month, would you be able to move in? (OBJECTION) Well, wed really like to think this over first. (CUSHION) I can certainly appreciate that. (RESTATE) It sounds like you want to be very sure about your decision, is that right? Purchaser: Yes, we would. (ISOLATE & QUESTION) Does the fact that you want to think it over mean that youre seriously considering this home? I guess. Were just hesitant not knowing what the payments would be. (ISOLATE & QUESTION) If you felt the payments were reasonable, and that the lender would approve them, would you feel comfortable in this home? Yes, wed feel good about that. (ANSWER) I have a new rate sheet provided by your lender. Based on your initial investment, and amortizing this amount over 30 years at this rate, your payments would be this amount. How do you feel about that? That sounds pretty good. (COMMITMENT) In that case, which amount is better for your initial deposit, $2,000 or $3,000? Lets go with $2,000.

Purchaser:

Sales Professional:

Sales Professional:

Purchaser:

Sales Professional:

Purchaser:

Sales Professional:

Purchaser:

Sales Professional:

Purchaser:

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Other Objections
You will handle many buyer and seller concerns in your real estate career. Now that you know how to handle buying and selling objections, you can prepare scripts to help address some of these common objections. BUYER OBJECTIONS (property concerns / making an offer / negotiating)
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Wed really like to think it over first. This seems to be a little out of our price range. This house is too far away from (work, school, church). This house needs too much work. The (yard, kitchen, bedroom) is too small. Were going to make a low offer and see what they do. Weve given everything we can. We simply cant come up any higher on the price than this.

SELLER OBJECTIONS (listing presentation)

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We want to think it over first. Another company said they would list for __%. Will you reduce your fee? Wed like to talk to other companies before making a decision. We have a friend in the business. We dont want to be tied to a long commitment. Another sales professional said they could get us more from the sale of our property than what you are indicating. We cant sell it unless we can get $____ out of it. We dont want to put more money into this place. We want to sell as-is.

SELLER OBJECTIONS (low offer / contract negotiations)

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This offer is insulting. Lets just reject it. I think we should counter with a full-price offer. The_____ (item) is simply not negotiable. We cant take any less for this house than what weve already offered. This is our bottom line. We cant go any lower. Were not budging. If they want this to work, they will have to come up in price. What will you and your company do to make up the difference?

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CRIAC Worksheet
EXERCISE:
Select one or more of the listed objections. Using the CRIAC worksheet, develop your own CRIAC.

The Concern:

Cushion:

Restate:

Isolate and Question:

Answer:

Commitment:

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RESOURCE:
See the Resource Tab for an additional copy of the CRIAC Worksheet. Make copies as needed.

Feedback Awareness
Feedback is return communication from your buyers and sellers, your accountability coach, and fellow sales professionals. You get feedback in two ways: 1. Look and listen for it. 2. Ask for it. Feedback will show you:
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How youre doing in this business. If youre doing the job correctly. When to move to the next step in the selling process. When you have rapport. When youve uncovered a customers true motivation. If your customer trusts you.

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Summary
Professional salespeople are responsible for uncovering the needs of buyers and sellers while building trusting relationships. Then they identify the product or service that meets these needs. The last step is to present benefits, answer any concerns and support the customers decision to purchase or sell.

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Summary Questions
1. The sales process is sequential. It begins with prospecting, moves on to building
relationships and understanding wants and needs through presenting benefits, closing and finally, overcoming objections. J True J False

2. Customers have relationship needs. For buyers and sellers to agree to work with you,
they need to like you and trust you. J True J False

3. In understanding needs and motivations, its not enough to know what customers want,
but why they want it and why it is important to them. J True J False

4. Underline the four steps for creating a benefit statement.

a. Summarize the need b. Speak to the problem c. Describe the feature d. Tell them its important e. State the benefit f. Gain agreement g. State the cost

5. List the five steps in creating a CRIAC to help overcome objections.

a. b. c. d. e. Turn to the following page to check your answers.

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Answer Key
1. The sales process is sequential. It begins with prospecting, moves on to building
relationships and understanding wants and needs through presenting benefits, closing and finally, overcoming objections.  J True J False

2. Customers have relationship needs. For buyers and sellers to agree to work with you,
they need to like you and trust you.  J True J False

3. In understanding needs and motivations, its not enough to know what customers want,
but why they want it and why it is important to them.  J True J False

4. Underline the four steps for creating a benefit statement.

a. Summarize the need b. Speak to the problem c. Describe the feature d. Tell them its important e. State the benefit f. Gain agreement g. State the cost

5. List the five steps in creating a CRIAC to help overcome objections.

a. b. c. d. e. Cushion Restate Isolate the Question Answer Commitment

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Module 3 Developing Sales Skills

Sales Professional Action Plan
The following activities are to be checked off as you complete them. When all activities are finished, schedule an appointment with your accountability coach to review your accomplishments. J Continue to preview your office listings. J Schedule an appointment with your accountability coach and create a weekly schedule utilizing the Weekly Work Plan located in the Resource Tab. J From your completed Weekly Work Plan, schedule your next day using the Daily Work Plan. Review your activities at the end of the day and be prepared to show your appointment book to your accountability coach. Demonstrate how you plan to follow your plan for each day of the week. J Log onto PREA Center and locate the eCard site under Sales Professional Tools. Complete the WebEx eCard independent study course by clicking on the link to the onlne demo on the eCard home page. J On the eCard site, set up your account profile and begin to import and enter your database of potential contacts.

Review
Need-Feature-Benefit-Agreement J Review the information on creating need-feature-benefit-agreement statements and create a statement for each of the samples given and review with your accountability coach. CRIAC J Review the CRIAC process with your accountability coach and create CRIAC scripts for three common objections and review with your accountability coach.

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