Real Estate Closing Techniques

Well, hello and welcome to Mike Ferry TV. It is May 29th. I’m Ron Cronin and we are working today on closing skills. Right. Closing “Ron.” Everyone, Coaching Clients tell me, “Ron, I want you to teach me how to be a good closer. I want to close.” or people will say, “I’m a closer”, “I have Real Estate Closing Skills.”

Closing should be the natural end of your presentation

Hey, let’s write down our first point today. This is important and it makes the job of closing so much easier. All right. But let’s remember that closing, write this down, closing is a natural ending to a good presentation. Oh, it’s the natural ending to a good presentation. Now, a Listing Presentation. Sure. Maybe a Buyer’s presentation counts. I’m presenting a price reduction. I’m presenting what price to list it at. I’m presenting what price to offer the Seller to my Buyers. I’m constantly presenting thoughts, ideas, actions, and commitments and asking people to move forward. Okay, so if I make a good presentation about a price reduction to the Seller, if my presentation is good or great, that means it was effective. And guess what? His price reduction is the natural ending to my presentation to him this evening about lowering his price. Do you understand? Okay, so instead of trying to pull people, “Come on, lower your price!” or prod them, “Come on!” or push them, “Do it!” Right. Instead of that, we just make we have to look at our presentation. If they’re not wanting to lower their price or not wanting to sign the contract or not wanting to give you an appointment, don’t blame it on them. It’s you. It’s you, right? Yeah. Remember their “No” or when they say, “No” or that they’re not going to move forward. That is a reaction to the presentation you just made. Okay, so if I learn that closing is the natural ending to a good presentation, then I will work on my presentation, not necessarily my closing skills. Those are important, sure, but the presentation is way more important.

Practice your sales closing techniques

Practice with me. I’m going to teach you something right now. And some of you have never said this before, so play along with me. Okay? Look at the camera. And I want you to say out loud along with me, I’ll do it twice. I’ll say, “Ron, will you sign the contract, please?” Okay, So everybody ready? One, two, three. “Ron, will you sign the contract, please?” Okay, good. You sound great. Now smile and extend your pen. Smile and extend your pen. “Ron, will you sign the contract, please?” Now nod your head and smile and extend the pen and say, “Ron, will you sign the contract, please?” Okay. We want to get in the habit, right? We must get comfortable asking people to sign the contract. We must get comfortable repeatedly asking them to sign the contract. It’s a contract. You know, a lot of you want to make it softer, so you’ll say, “Will you authorize the paperwork?” Right? Or “Will you just give me your old John Hancock right there?” You know, and all these references and stuff. But it’s a contract. It’s a contract that they’re signing that you’re also signing and committing to. You’ve got to do everything it says, right? Okay, good. It’s a contract. So let’s get comfortable asking people with a smile, “Oh, well, jeez, will you sign the contract, please?” Or “All we need to do now is simply sign the contract so I can help you get what you want in the time you want. Won’t that be great?” Sign the contract. Sign the contract. Sign the contract. It’s easy, right? Okay, good. All right.

Don’t speak until the prospect does

When it comes to closing, there are all these little things that if you put them together, they work for you. Okay, so here’s one more. When you ask a closing question, there’s a rule. Don’t speak until the prospect does. A closing question like, “Will you sign the contract, please?” Or “Can we set an appointment today or tomorrow at 4:00 PM?” or “Mr. Seller, would you please sign the contract at a 10% price reduction?” Right. When I ask those closing questions, there may be a little time there or a hesitance or pause or silence. But the rule … The rule is don’t speak until they do. And it might take a while. It might take it could take a minute. It could take 30 seconds. 20 seconds. I’ve had it take over two minutes, but I found that the longer it takes, the more likely it’ll be a “Yes” because the “No’s” come quick and the “Yeses” sometimes take a while, right? But nevertheless, I just think that’s funny. So because what’ll happen is you’ll get nervous and you’ll say to yourself, “Okay, so you’ll close. So will you sign the contract please?” And then there’s no response. And he’s just kind of looking at you. And then you’re like, “You know, because it’s all filled out here, we can go ahead and get started and I’ll call the photographer and set it all up and get you going and we’ll get you sold here in the next six weeks.” You know, and you start talking to break the silence. But you’ve got to remember that that silence is actually that tension that you feel precedes the “Yes.” That tension comes before the “Yes” comes. So you just have to get comfortable hanging in there close. Ask that question, close and then wait for them to say whatever they’re going to say. And I would just be smiling and nodding while I’m waiting, maybe even pointing to yourself, “Will you sign the contract, please?” Smiling and nodding. Whew, I could take a while. Right? However, give them a chance to answer. Don’t break the silence because you’re nervous. Don’t break it. What will happen is, if there’s enough silence, they’ll break the silence with a “Yes.” And that’s what we’re looking for. Okay.

Follow the Listing Presentation

Now, if you guys when it comes to the Listing Presentation. and closing for the signature, if you follow the Listing Presentation verbatim and you’re in front of a prequalified and motivated Seller, well, the close is simple. Okay? But when you haven’t prequalified them and you don’t know their motivation, the close is very difficult. Think about that. All right. You’re setting yourself up by following that five-step process that Mike talks about when it comes to the Listing Presentation. All right. Okay, good.

How to Increase Sales in Real Estate: Enthusiasm

This is an important thought as a salesperson, raise your hand if you’re in sales. Okay? Almost all of you. Good. So we want to always assume that they’re going to sign our contract at the end of our presentation or always assume that they’re going to give you the appointment at the end of that prospecting phone call. We always want to assume that, okay, see, now remember the assumption when you assume they’re going to and you believe it when you believe they’re going to say “Yes” or they’re going to sign tonight, well, you act totally different when you’re there. You are happy, you’re relaxed, you’re smiling. You know, you’re asking questions. You’ve got the contract out, the pens are out, you’re going, “Let’s do it. Let’s get started. Let’s sign the contract.” Like if I had told you secretly, “Hey, the Seller’s going to sign with you tonight. He told me this afternoon that he’s going to do it.” Like if I gave you that little insider information, you’d be like, “Oh, right, let me go hit that door.” Excited. “Let’s do it. Sign the contract.” Right? But if you don’t make that assumption, then what are you assuming? “Oh, he might not. He’s not going to. It’s a slim chance if he or she will.” So I’m just telling you, the assumption alters your communication. It alters what you say and how you behave when you make that assumption. If you think it’s a “Yes”, you’re going to do everything right. If you’re not sure, I don’t know what you’re going to do.

“The only “No” that counts is the last one before you quit.”

So assuming now you can make the assumption by following your scripts, the scripts lead to the signature, the scripts close for the signature, you can make the assumption by nodding and smiling as I said, you make the assumption by staying on track and asking a lot of questions. Okay, assuming that they’re going to say, “Yes”, this works for Real Estate, it works for dating, it works for, you know, raising your kids. The assumption part is, is funny. Let’s keep in mind that in selling and closing especially. The only “No” that counts is the last one before you quit. All right. It’s the last one before you quit. And that’s important. So that one’s going to count. The other ones don’t count to me. A “No” means “Maybe” or “Not just yet” or “In a minute.” It doesn’t mean “No.” Why would they say “No”? Right? At least that’s my thinking anyway.

Negotiation Skills Essential: Break up tension 

All right. Our closing when to be a good closer. Let’s not be afraid to smile and use humor to break the tension. Right. The tension takes place in closing situations. So maybe you have a canned joke. Where are my analyticals? Yes. Maybe you don’t know exactly when to do the joke. We’ll just learn to write it right in here in your presentation, you do the same joke every time, it gets a laugh, breaks the tension, they love you, now they’re ready to move forward, right? Could be that easy, right? But humor, smiling, being relaxed. It’s okay to be unattached to the outcome when you appear to be unattached to the outcome, it makes you much more attractive, right? Much more attractive.

“When you’re closing. This is your chance to show them your skills.”

Okay. So they expect you to close. The customer, meaning they expect you to close and to get a Buyer into their house. They expect that you’re going to be aggressive with Buyers and setting appointments and closing them to write an offer. They expect this of you, therefore they would expect for you to close them the same way, right? Close them the same way. When you’re closing. This is your chance to show them your skills. This is the chance to show them how you’re going to fight for them, how you’re going to fight for their equity, and to get them everything they want. You’re showing them that you’re either strong and that you’re relentless or you’re showing them that you’re not. Maybe you’re timid or you’re shy or you’re meek or those kinds of things. And you might be those things naturally, which is totally fine. But in this sales, when you’re in the sales position, when you’re trying to get hired for this job and paid this large amount of money, they usually don’t hire timid. They want somebody strong. If you’re not that way, naturally, can you present yourself that way for the purpose of this presentation? That’s a question, right? This is your chance to show them what you’ve got. All right. Okay, good.

What skills are required to close a sale?

We’ve got to keep in mind when closing that they’ve invited us to their house for a reason. They had us here for a reason. My job is to now make a presentation, follow the script, get a contract signed. That’s what I’m there to do every time, whether I go to the Smith’s house, walk in, do the presentation, ask them to sign the contract, go to the Joneses house, walk in, do the presentation, ask them to sign the contract, Go to the Gonzalez house. Doesn’t matter. Every house you just walk in and do the same thing. Imagine if we’re going out there 50, 60 times a year. How many are you going to lock down? Okay. All right.

Show them your value and be ready for action

Make sure that you make a good business presentation. Right. You shouldn’t be crying and begging. Right. But a good business presentation where you have value to offer. You have a Plan of Action that you plan to follow. You have experience, you have track record. You have all these great things. All your materials are sharp. You got all the systems in place. You look put together. That’s what they’re after. Okay. All right.

“You have the ability to close somebody a minimum of five times. Yes. Five.”

My last thought for you on closing and this is a tough one, probably the toughest one. So you need a nice little spot. You want to you have to be sure that you have the ability to close somebody a minimum of five times. Yes. Five. Like if you’re going to close for the signature, you may have to ask them, “Will you sign the contract, please?” And then “blah, blah, blah, blah, blah, blah, blah. Talking, talking questions, questions, Objection. Handling. And then so let’s go ahead and sign the contract. We signed the contract, please?” And then there’s an objection and handling an objection and handling. And so “Let’s go ahead and we sign the contract, please?” So then “Go ahead and sign right here.” And then one more time, “Go ahead and sign right here.” You may have to ask them five times before they actually go, “Okay, right here. Perfect.” And then they sign it. Five times. I don’t know why it is. I just know that’s the rule. That’s what I’m prepared to do. And what you’re going to find is that if you have that ability, you’re going to get more contracts signed. I know most of you watching are probably can close once because it’s in the script. You can close once and you can probably now close twice because you can do an objection handler and close twice. But you know what? I would bet for a lot of you watching that, that would be it. That’s as far as you’re really trained to go or that you’ve ever practiced or anything, and you’re not prepared to close three, four, fifth time. Okay. But what if you were? What if you were prepared? What if that was your practice for a week or two? “What? Ron?” Yes, closing five times.

Use Mike Ferry Resources if you need help

What if you just with your Role-play Partners, you know, maybe you close for the signature and you said to them, “Will you sign the contract, please?” And then they’re going to give an objection. You know, maybe. “Well, we have to think it over.” You know, and then. So what are you going to say? If they said they want to think it over, want to think it over, want to think it over, want to think it over? Do you have things to say where you could keep asking them to sign, keep asking them to sign, keep closing, keep closing or do you get stuck? Well, let’s learn how to do it. If you’re in Coaching, you need to talk to your Coach about your closing skills and helping you close five times. If you’re not in Coaching, you need to get yourself to a Productivity School, get yourself to a Mike Ferry Retreat. We have our big one coming up in a couple of months. You need to get to the programs where you can learn how to do these skills. Productivity School would be perfect for you.

Okay, so again, closing is the natural ending to your great presentation. So I’m going to go ahead and close now. I will look forward to seeing you guys very soon. Thanks for watching Mike Ferry TV. We’ll talk again later.