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Lipsey School of Real Estate2011 Systems for Success

Presented by

Mike Lipsey, MCRE

Module 6: Business Development Skills

Module 6 Business Development Skills6.1…...……….Client Discovery / Needs Analysis

6.2…..………………...…Questioning Techniques

6.3…..………………………...Handling Objections6.4…..…………………………Closing Techniques

Client Discovery - Needs Analysis

Resource Urgency Needs

R U N

Rating Your Prospect1 5

COLD HOT

C L E A RCauses Loyalty Expectations Authority Revenue

6.1

Run Clear (Client Worksheet)

RResource

UUrgency

NNeeds

CCauses

LLoyalty

EExpectations

AAuthority

RRevenue

6.1

Resource (Run Clear)

Resource – Ability to Perform Financially Evaluation of Client’s (Examples)

Credit Available Equity Line of Credit Remaining Balance

“Can The Client Perform Financially?”

No Show List – Client’s Inability to Perform Financially

6.1

Urgency (Run Clear)

Expiration Urgency – “When does your lease expire?”

Financial Urgency – Upcoming Debt Maturity

Space Urgency – “Will additional Space Increase Revenue?”

Location Urgency – “Moving Customer Base, Benefit to a Centralized Location VS Multiple Locations?”

Determining What Drives Urgency..

Types of Urgency

6.1

Needs (Run Clear)

Needs Unrelated to Real Estate “Tell me about your business?” “What are your business expectations?” “What are you doing to increase sales?”

Physical (Real Estate) VS Other (Business) Needs

Physical (Real Estate) Requirements “When does your lease expire?” “How many SF do you have?” “What part of town would you like to be in?”

6.1

Causes (Run Clear)

Establishing Pain and Discomfort“Can you share with me anything unpleasant about your existing facility?”

Hot Button Leasing or Selling Connecting Discomfort o Existing Property Creating Excitement and Pleasure towards Future Property

Determining What CAUSES PAIN or DISCOMFORT

6.1

Loyalty (Run Clear)

Rating Prospects Loyalty

College Activities Business Relationship Social Relationship Company Ties

Common Interest (Creating Loyalty)No Existing Relationship

Strong Existing Relationship

(5)(3)(1)

6.1

Expectations (Run Clear)

Driving Expectations (Examples) Public Transportation (Increased Employment Pool) Open Floor Plan (Improved Productivity) On Site Amenities (Convenience)

Establish Prospect’s Expectations

Example Question Can you share with me your most important objectives, as

it relates to this assignment?”

6.1

Authority (Run Clear)

Determine Authority Establish Decision Making Hierarchy Interviewing All Influential Parties Increasing Time Management and Productivity

Example Question “Is there anyone else involved in the decision

making process?”

6.1

Revenue (Run Clear)

Account Revenue Other Service Lines

Property Management Appraisal Mortgage Banking

Transaction Revenue “Is this assignment cost/time effective?”

Account Revenue VS Transaction Revenue

6.1

Questioning Techniques

“You will win more assignments, not by the statements you make, but the QUESTIONS

you ask.”

6.2

“What do you look for…?”“What have you found…?”

“What has been your experience…?”

“How have you successfully used…?

“How do you propose…?”

Questioning Techniques

“What makes you choose…?”

“What do you like about…?”

“Are there other factors…?”

“How do you determine…?”

“Why is that a deciding factor…?”

6.2

Objections Are Sales-Makers, Not Deal-Breakers

Objections Show the Prospect’s Interest

Minor Objections Are Used to Slow Things Down

Objections Show the Prospect’s Interest

Hesitation May Not be an Objection, May Be a Condition

Understanding Objections

6.3

Don’t Argue With Objections – Could Be a Deal Killer

Develop Sensitivity to How Prospects Feel About Their Objection – Show Concern

Lead Your Prospect to Answer Their Own Objection

Handling Objections

6.3

Identify All Objections and Write Them all Down

Script Responses with Closing Questions For Each

Develop Sales Tools to Enhance / Support Responses

Rehearse and Role - Play

Handling Objections

6.3

Hear Them Out – Take Time to Listen

Feed The Objection Back

Question the Objection, Answer the Objection

Confirm and Clarify the Answer

Change Gears – Go Immediately to the Next Step in the Selling Sequence

Responding to Objections

6.3

Overcoming Specific Objections

“Lease term is too long; I’m looking for a short term, 1 -2 years.” 

“Monthly rent is too high since the space is a little larger than what I need.”

“Reimbursements for my practice have been cut by at least 20% so I need to reduce my rent

accordingly, but I can’t move into smaller space.”

6.3

Overcoming Specific Objections

“Only want to do short term renewal, 1 year, since I don’t know how healthcare changes are going to

effect my practice.”

“One objection we hear particularly in new developments or occupancy-challenged buildings is that “the building is empty”; “there is no traffic”, or “we like the building, but want to wait until there are

more tenants”. 

6.3

Progressive Chart of Closing Techniques

Order Form Close

Use on Small Transactions

Sharp Angle Close

Use to Resolve an Objection

Smoke Out Close

Use When Sharp Angle

Close Leads to More than

One Objection

Chain Close

Use When Speaking to an

Inattentive Prospect

Summary Close

Use to Summarize

Key Objectives Identified in

Needs Analysis

6.4

Closing Techniques

Minor Point Close

Alternative Choice Close

Assumptive Close

Instructional Close

Action Close

6.4

Closing Techniques (Trial Close)

Trial CloseLooking For An Opinion

Negotiation Tactic Objection Condition

Neutralize Resolve Compromise

6.4