A guide for ambitious real estate agents, The Heart of the Deal offers tips on how to succeed in this field. You will learn how to win over clients and achieve similar levels of success through the author’s personal experience.
You may be wondering if you should read the book. This book review will tell you what important lessons you can learn from this book so you can decide if it is worth your time.
At the end of this book review, I’ll also tell you the best way to get rich by reading and writing.
Without further ado, let’s get started.
Lesson 1: Hard sells only work if they are accompanied by genuine enthusiasm
Imagine a beautiful four-bedroom house in a great neighborhood with excellent local schools nearby. It is also considerably below market value. Basically, a property like this sells itself with no help at all!
Unfortunately, most properties aren’t perfect, and this means you’ll have to consider how to make them more attractive to buyers.
Regardless of what business you’re in, there are two basic approaches to sales: the hard sell and the soft sell.
By hard selling, you convince your client into making an emotional, impulsive decision to purchase your service or product. A real estate agent will tell a client that the apartment is extremely popular and could be snapped up at any time if they do not act fast.
Compared to a hard sell, a soft sell uses less pressure. Brokers can use this method to inform clients about current market conditions, present them with options, and then allow the client to choose.
Hard sell is highly controversial due to its high-pressure nature, but if used honestly, it can be extremely effective.
When used effectively, the hard sell method is characterized by high energy and infectious enthusiasm. They get their clients excited about purchasing or renting property, but most importantly those emotions come from a genuine belief that the property would be a good investment for the client.
Having a hard sell only works if the product you are promoting is something you truly believe will benefit the client. If they later discover that the item you sold them was too expensive or unsuitable, chances are they won’t do business with you in the future, and this will cost you money in the future.
Lesson 2: Highlight a property’s positive features to overcome typical objections
Do you want to know a secret about the perfect property? It doesn’t exist. We all know that every house or apartment we sell could be a little better – by having more space, having more natural light, or being closer to public transportation.
Real-life perfection doesn’t exist, and neither does the ideal home. If you are aware of this, you will be able to deal with your client’s doubts effectively.
Clients often object that a property is too small. A focus on the property’s upsides can help alleviate this doubt.
If your client is moving to a big city like New York or London, walk them around the neighborhood after you’ve left the property.
Identify the advantages of having a smaller home, such as great entertainment and cultural attractions, as well as the abundance of cafes, bars, and restaurants nearby.
Let them know that with all of these services, their house is mostly going to be used for sleeping, so it’s fine if it’s not particularly large.
Other objections include the fact that the building is outdated, but this concern can also be mitigated. Point out that living in an older building has its advantages. The first is that they are usually well-built.
In the event that the client is a light sleeper or simply values privacy, the thick, solid walls in the building will serve as an effective sound barrier.
Another benefit is the fact that hot water and heating are usually included in the rent. In older buildings, the boiler is usually centralized, which tenants cannot control. By incorporating these fees into the rent, you can save your client money on utility bills.
Rather than letting clients focus on superficial issues, we should always show the hidden benefits of a property. Clients will then gain a better understanding of what the property is capable of.
Lesson 3: Negotiation success depends on being accommodating and speaking last
Real estate negotiations are the lifeblood of the business. As an agent, you usually want something from your clients, who also want something from you. Both parties can walk away satisfied with a little conversation, bargaining and good will.
Negotiation skills are necessary to achieve this win-win result.
As a first step, know that an effective negotiator should be accommodating to the other party.
If you are entirely focused on what you want, you are demonstrating a lack of consideration for the other person. Consequently, they may not continue to do business with you if they feel you’re behaving unfairly.
Furthermore, a client who feels cheated will tell others about you, which costs you business.
Make sure everyone walks away from a negotiation satisfied, regardless of whether they’re your superior, colleague or subordinate. Communicating your wishes honestly fosters a collaborative, rather than adversarial, negotiation environment.
You should always let the other person speak first in negotiations.
In negotiations, the first person to speak usually walks away with less. The reason for this is simple math: when you make an offer, you narrow your options.
Assume that you are required to buy out a tenant so that you can renovate their place: First, you offer them $20,000. As soon as you make the first bid, you’ve effectively set a ceiling on the best possible outcome of this negotiation.
Consequently, it’s much harder to turn around and offer them $15,000 later on in the negotiation. That’s why it’s always best to let the other party speak first.
Lesson 4: Identify the client’s archetype to anticipate their needs
You’ll begin to notice some familiarities between clients after working in real estate for a while. As soon as a client walks into your office, you should be able to identify their type so you can quickly determine how to help them.
Out-of-town clients are a common type of client.
It is a client from out of town who has decided to spend a few days in the area to find a new home. Most of them are very motivated and under a lot of pressure to find a place before their visit ends, so your help would be very much appreciated.
Because of their enthusiasm, you should schedule as many appointments as you can with them, show them the area, and inform them about the local market.
The dreamer is another typical type of client. This is someone who wants what they cannot have. They usually have unrealistic expectations for properties.
Possibly they saw the dream house on TV, one that seemed cheap and spacious, and thought it was attainable. What can you do about such high expectations from clients?
Being honest with them is the best way. Let them know what the property market is like. Instead of wasting everyone’s time by showing them properties they can’t afford, show them options that they can afford. That way you won’t disappoint them.
It doesn’t matter whether your clients are out-of-towners or dreamers; the key to being successful as an agent is to connect with them.
Taking a balanced approach to your client’s needs can help you and your client arrive at an agreement you’re both very happy with.
About the Author
Anthony Lolli is the founder and CEO of Rapid Realty – the fastest-growing real estate franchise in New York.
In addition, he founded the Express Real Estate school, which provides real estate license training to thousands of students.
Buy The Book: The Heart of the Deal
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