- 37% of new home buyers currently in the market right now are millennials.
- When selling your property, sell like a salesperson, not a homeowner.
- Using high-quality photos, offering virtual tours, and sending follow-up emails, are a few factors that can help close the deal quicker.
When it comes to buying real estate, Millennials and Gen Z are leading the way.
With 37% of millennials being the biggest home buyers currently in the market right now!
So, considering millennials and gen-z are leading the way in purchasing real estate, it’s not sufficient to follow the same old sales process for capturing leads and making a deal proposal.
Realtors need to go the extra mile and stand out from others because 73% of home buyers choose the first agent they interview.
So, if the leads were to fall through the crack, consider them gone.
And, without a streamlined real estate process it’s difficult to delight your customers and prospects. A fragmented sales process takes up more time, is complex, and can lead to the loss of crucial data and information.
This quick guide on real estate sales process is going to help you with the same.
From property valuation to closing the deal, we’ll run you through every real estate transaction step and provide information on how you can develop a robust real estate sales process.
So, let’s dig deeper and understand What are the key steps involved in building a real estate sales process?
1. Pricing sellers’ home – Property Valuation
Property valuation is made up of multiple factors; you need to consider the location, taxes, sellers’ concession, as well as the staging and prep fees.
Before the final asking price goes to the buyer, it should include each and every cost that goes into selling the property.
How to conduct comparative market analysis and evaluate the sale price of property?
- A realtor needs to conduct comparative market analysis (CMA) and whilst doing the analysis, some of the key questions to consider include:
- What is the location of the property?
- What is the property type and size? How does it compare to the other similar properties in the area?
- What is the current condition of the property?
- Are the current market conditions volatile or stable?
- Who is the target market for the property and what are their needs and preferences?
- CMA includes all the factors that affect the price of the property and based on that, the realtor can value the said property.
- You can also enter the property into the Internet Data Exchange (IDX) so that the members of multiple listing service can market the properties to potential buyers.
- If you find property valuation difficult, there are various tools available online that helps get an estimate. Opendoor home sale calculator is a reliable tool that will help you determine the estimated value of the property.
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An advanced sales CRM will help streamline your entire property valuation process.
Since you’ll constantly be working on the field, surveying the houses, meeting locals, a Mobile CRM can help you enter data and information in your CRM even when you’re not at the office.
Most CRMs are limited to the cubicle, however, CRM with Mobile Apps have more potential when it comes to accessing client information while on the field.
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2. Stage your listing
“You never get a second chance to make first great impression.”
Let’s be honest, the first impression matters a lot; in meeting people, as well as when we’re purchasing something.
So, if you were to purchase a house, you first look at the condition of the house. Since it’s a place where most house owners spend their entire life, they do want the place to look attractive and as per their preferences.
When you stage your listing, you need to think of it from the buyers’ perspective and provide all the relevant information. This way you can cater to their sense of urgency and also get an expected timeline for selling house, which is usually 18 days on an average.
But, staging your listing isn’t a walk in the park. So, let’s break it down and look at the nitty-gritty of the process:
I. Conduct research and prepare for listing
Just as a sales manager or a sales rep would do a background check on their prospect’s demographics, conducting a thorough research on your seller is quite essential as a realtor. And, as precise research is conducted, achieving a desired outcome becomes much easier.
But what should be included in this research? Start by asking few important questions to the seller of the property. Such as:
- What made them want to sell the property?
- Is the condition of the property good or worth selling? Or will it require re-modeling?
- Does it have any due payments or unpaid taxes to be paid?
- What is their desired outcome from this selling?
- How urgently do they want to sell the property?
These were just few of the many things that could be clarified before initiating the process of listing the property for sale. Clearing out such things before engaging in the selling process will ensure that there are no last-minute surprises.
The research process will also give you a bigger picture of the sellers and help in building a better buyer-seller relationship.
II. Stage your listing
The next thing on the agenda is making the property look as good as possible for the potential buyers. And, the best way to do this is by staging the property.
According to a study done by the International Association of Home Staging Professionals, the homes that have been staged get sold 3 to 30 times faster compared to non-staged homes. Not only that, but they also help increase the sale price of the property by 20%.
Also keep in mind that, being a realtor, staging a property won’t seem that big of deal for you. But, it could for few sellers. Therefore, it would be your job to state how important staging a house is and how much the sellers can financially benefit from staging a house.
III. Endorse the listing
Being a realtor, you will undoubtedly have a strong network of people who are looking to purchase a property or are willing to invest in one. But almost 47% of recent buyers searched online for properties as their first step in the home buying process.
So, it clearly indicates that more and more people are searching to purchase their property online. That being the case, staging your property on multiple online channels would be a great bet to win more offers.
So, here are a few great ideas where you can endorse your listing (online and offline):
Listing on real estate magazines and Facebook Marketplace
Even though most people go for selling their property online and also for purchasing houses, there are investors that closely follow real estate magazines and online selling platforms such as Facebook Marketplace.
While many people prefer go for selling property online and also purchasing, some investors keep a close eye on real estate magazines and platforms such as Facebook Marketplace.
So, try to ensure that you list the properties in the real estate magazines or the offline mediums as well.
Multiple Listing Service (MLS)
This is the first place that’s going to pop in a realtor’s mind. And, that is totally justifiable. Staging the property on the MLS can layout a great bedrock to build upon for other promotion channels.
With 4.76 billion people using social media and almost all the major social media platforms being free, the sky is the limit.
And, most businesses will focus on the platforms that are in the spotlight, such as Facebook, Instagram, and Twitter. But, platforms like LinkedIn and Pinterest which are usually overlooked are also be a great place to endorse your listing.
Promote with descriptive blog posts
An MLS listing or a social media post can only contain so much information, whereas a descriptive blog post offers you a lot of room for creativity and freedom. You can also create engaging and personalized Web Forms to directly capture those leads.
By now, you already know how important it is to stage your listing. But the competition online is constantly growing. So, how do you stand out?
Here are a few tips to find out on how you can make your property listing more attractive to your online buyers.
Use professional photos
Before approaching any real estate agent, many buyers take it upon themselves and go online to search for the house.
When they’re looking for the best properties, your website must have professional photos and highlight the features of the houses you’re offering.
High-quality photos will help buyers decide which property they are interested in. Great visuals also work on a psychological level to create a bias against certain properties.
Give your listings more visibility
Also just keep in mind that the real estate listing process isn’t just limited to listing the property on MLS; you need to cover multiple platforms to reach maximum prospects.
The more your properties are visible on various platforms, the more you’re likely to connect with potential buyers.
Syndicate the listings on websites like Zillow, Trulia, and Realtor.com. These channels are trusted by buyers and realtors, have the most up to date real estate listings, and can provide higher visibility.
Improve efficiency with integrations and bring all leads in one place
Realtors have a lot on their plate, and managing listings on different platforms can get tedious.
So, you can pick a real estate CRM that integrates with listing websites and brings all your lead information and contacts inside CRM so you don’t have to toggle between various platforms.
Connect your CRM with top listing platforms.
Bring hot leads directly into your CRM and timely nurture them to win more offers.Start your free trial
Offer a virtual tour
To accommodate your buyers’ busy schedules, offering virtual tours can save their time, help them make an informed decision, and shorten the timeline for selling a house.
Walk them through the house, provide information about its history (if it’s a resell), the location, neighborhood (if it’s kid-friendly and suitable for senior citizens), and how it will be the right fit for the buyer.
When they look at the property through a video call, they’ll gain confidence and close the sale faster.
3. Arrange property viewings
As the saying goes, first impressions last! And, when it comes to real estate, having a property viewing can truly make-or-break the deal.
The core purpose of hosting property viewings is to offer two solutions: one is hosting an open house and the second one is to host private viewings to convert the most interested potential buyers.
I. Host an open house
Hosting an open house is one the best ways to build better relationships with the buyers. It not only benefits you, but also allows the potential buyers to tour the property and have a real-time experience at the property.
It will also create a safe space for the guests to ask questions, get a better exposure to the neighborhood, and share feedback. And, as more people come to visit the property, it can create a competitive atmosphere that may result in getting multiple offers.
Also, bringing a lot of people to an open house is no piece of cake. So, here are a few ways you can utilize to drive more traffic to your open house:
- Advertise your open house on social media platforms.
- Connect with your old or existing client base to attend the open house.
- As hosting an open house will require quality furniture, food, drinks, and more. Collaborate with nearby shops to advertise your listing on their shops.
- Start a live feed on platforms like Instagram and Facebook.
And during the open house, ensure that you’re available for your buyers who want answers or are expressing keen interest in the property. By doing so, you will be able to gather important contact information for your buyers, which you can leverage later on.
II. Host private viewings
Remember the information you collected while hosting the open house? Well, it’s time to put that to use! This is the next most important thing on the agenda. Hosting private viewings!
The first and foremost reason why private viewings are helpful is because, it makes the buyer feel more important. And, secondly it gives the buyers a hassle-free opportunity to imagine themselves living in the home without the crowd pushing them around.
But, with so many emails and phone numbers it might be chaotic to manage them. So, don’t forget to use your CRM to streamline the whole communication process and keep everything in one synchronized place.
Also, to ensure that you are able to win your potential buyers to attend your private viewing, send out personalized emails and texts or utilize pre-defined email templates and save time to focus more on closing more deals.
4. Negotiating the deal
Once you’ve listed the properties and have captured potential buyers, the next step in your sales process is negotiation.
This is the make-or-break situation because now the planning phase is over.
You need to encourage the prospect to agree to the terms by bringing all the concerns on the table.
Realtors engage with multiple clients, and the trait of a good negotiator is to know which negotiating strategy to apply on which client.
Here’s how you can negotiate the deal where both parties benefit from it:
- Use affirming language when interacting with leads. You wouldn’t like it if someone forced their opinions onto you. Likewise, sellers want to believe that you’re on their side, and you must be if you genuinely want to help them. Therefore, use affirming language and encourage the person to close the deal.
- Your focus must be on data. Collect as much information as possible and leverage it to your benefit. When you’re negotiating, the only way you can have an upper hand is by possessing more information than the opposite party so you can justify your price.
- Manipulation will get you nowhere, while being true to your work will certainly attract more leads. Always start your conversation with true facts so they can make informed decisions and recommend you to others.
- Discover the pain points of the opposite party, whether they’re buying or selling, figure out what they want from the deal. Ask them the reason for buying or selling, and create a negotiating strategy based on that.
This is the stage where you’ll have a lot of back-and-forth communication with both parties. This usually separates a hero real estate agent from the crowd!
So, here is an example of a follow-up email you can send off to an interested buyer:
Subject: Build your dream home at [Property Address]
Hey [Interested Buyer’s Name],
It’s [Your Name] from [Company Name], and I wanted to reach out and thank you for taking the time to tour [Property Address] with me yesterday. It was such a pleasure to show you around and see your reactions to the beautiful home.
As promised, I wanted to check in and see how you felt about the tour yesterday. And, if there’s anything else I can help you with. I had such a great time showing you around and learning more about what you’re looking for in your dream home.
To keep the excitement going, I’d love for you to spend a few minutes visualizing yourself living in the beautiful home. What kind of furniture would you choose? What kind of artwork would you hang on the walls? What kind of activities would you enjoy doing in this space?
Few things that might help you decide:
- Hospitals and schools are nearby.
- 2 beautiful parks are just half a mile away.
- Commuting to locations is easier with multiple transport links available nearby.
Please let me know if you have any further questions or if there’s anything else I can help with. I’m here to make your home buying journey as smooth and enjoyable as possible.
Looking forward to hearing from you soon.
Manage all communications at one place!
From sending out quick follow-up emails to calling them whether about the previous day's tour, do everything within Salesmate.Start your free trial
5. Make the owner aware of the closing cost of their property
One of the most crucial aspects of the real estate process is determining the closing cost of the property. Many agents face disputes due to misunderstandings between offered price and its actual closing cost.
When the seller puts up a house for sale, they only consider the value that they want to get from the property.
However, when the title is being transferred from seller to buyer, expenses like Escrow fees, commissions, loans, insurance payoff, and various miscellaneous expenses add on.
Hence, in order to avoid any confusion and lose the deal at last stage, you need to discuss the closing cost of the property with the buyer so you’re both on the same page.
6. Close the sale
Coming to the final stage of your sales process, it’s time to close the sale!
Once you’ve cleared everything with your client, closing the sale should be a piece of cake!
Both parties have already passed through the stage of property discussion and negotiation, so what’s left is going out and closing the final deal.
But before that, ensure that you have taken care of these things:
I. Final inspection of property
This is a crucial step in the real estate process. Be it for the realtor, seller, or the buyer. During the final inspection phase, it’s the buyer’s last chance to point out anything that he may find faulty or isn’t happy with.
Additionally, bear in mind that under real estate rules, the agent and seller are required to provide the buyer complete disclosure about the property and mention if there are any faults.
Thereupon, the next step is to finalize the timing of the inspection as per the seller and buyer’s availability. But, it’s best to do it as soon as possible, so there aren’t any hiccups in the sales process.
Finally, either you or the seller would have to arrange a qualified property inspector to confirm and prepare a final inspection report.
The primary aim of this inspection is to provide the buyer piece of mind about the property they’re about to purchase.
II. Final negotiation has been done
This is a part of the process that is truly optional. It isn’t always required. The final negotiation is usually done to identify if the buyer found the property inspection agreeable and hasn’t found anything that would hamper the price of the property.
So, if there aren’t any problems detected during the inspection, then it’s highly likely that the buyer would be happy to pay the original quoted price of the property.
III. Legal paperwork is done and vital documents are handed over
The is the concluding part of the real estate process – signing the purchase agreement and handing over important legal documents.
A solid agreement will include every detail of any payments and credits due to your seller and any pending payments that are due from the buyer. Ensure that all the elements of cost are included in the agreement, such as taxes, adjustments, and pre-paid taxes.
This process can be daunting, but to make the transaction seamless make sure you have these documents collected from the seller’s side:
- The property deed
- Title Insurance policy / Title certificate
- Survey and plot plan
- Tax bills, water, and sewerage bills
- Any warranties or service records
- Utility readings
Mistakes to avoid during the real estate sales process
The real estate sales process isn’t a piece of cake! As there are multiple factors to the process, such as, listing the property, presenting a promising deal to buyers, retaining the sellers’ support, and closing the deal.
So, here are a few things to keep in mind if you want to efficiently execute the real estate sale process:
Avoiding putting up nice property photographs
With so many people searching for properties online, it has become extremely important to present the property in a convincing manner. And, if you’ve created high-quality visuals of your home, there’s a high chance that it will help your listing to stand out.
Selling the property like homeowner
If you’re a realtor, you might not have much to do with this point. But, if you own your home and are planning to sell it, then this is something to keep in mind.
Hiring a real estate agent is probably the best path to pursue. But if you plan to do otherwise, there’s a high chance you might get emotional during the selling process. Agents or realtors can also help tone this down and keep your best interest in mind to help you get the best deal possible.
So, think like a salesperson, not a homeowner.
Before you ask, what is panic selling in real estate? Just don’t do it (This again, is something that’s probably most relevant if you’re a homeowner)! Before listing your property for a price that doesn’t match the valuation of your home, do a reasonable market analysis and take the next steps accordingly.
Selling to unqualified leads
It’s best to find out the buyer’s interest prior putting in any effort into the deal. Because, unqualified leads will just be a pitfall for time and resources. So, it’s best to setup an efficient lead qualification process within a CRM, that filters out the most interested buyers.
There are multiple stages of selling and purchasing properties. But it won’t be difficult when you figure out a way to streamline your workflow and have a strong real estate sales process. To improve your productivity, you need a CRM that puts your sale has process on auto-pilot and automates your manual tasks for you.
From assigning leads, collecting client information, following up, to scheduling meetings, do everything inside a smart CRM.
And when you have multiple properties to handle, you can use multiple sales pipeline management in a CRM that provides complete visibility of all the deals at their various stages.
Therefore, you can analyze the sales process and focus on high-intent clients to close more deals.
A solid real estate process consists of awareness, knowledge about the property and market, and ability to use the CRM in a way that adds value to the work.
What is real estate sales process?
A real estate sales process is a systematic approach that real estate professionals use to manage the sales cycle from initial contact with a prospective client to close the sale.
It typically includes lead generation, lead qualification, needs analysis, property search and viewing, negotiation, and closing.
By following a structured approach, real estate professionals can engage with potential clients, build relationships, and provide excellent customer service to facilitate a successful transaction.
Why is having a sales process important in real estate?
Here are some key points explaining why having a sales process is important in real estate:
- Provides a clear and standardized approach to managing the sales cycle.
- Helps real estate professionals stay organized and on track in a fast-paced industry.
- Enables real estate professionals to provide a high level of customer service to clients by ensuring effective communication and addressing their needs and concerns.
- Builds trust and rapport with clients, increasing the likelihood of a successful sale.
- Helps real estate professionals stay focused on their goals and objectives, improving overall efficiency and effectiveness.
- Allows for measurement and analysis of performance, leading to data-driven improvements to the sales process over time.
- Increases chances of success in a competitive industry.
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