Real estate closing techniques have become a lost art for real estate agents. This is, in part, due to a general misconception about what “closing” really is.
In actuality, effective real estate closing techniques can be used at anytime in a three-step organized sales process (OSP). A real estate agent’s OSP takes an individual from ‘Lead’ to ‘Prospect’ to ‘Client’ or, in other words, from ‘Contact’ to ‘Appointment’ to ‘Contract’.
The idea is that you are always moving the lead or prospect forward to the next stage in the sales process, taking them in the right direction from contact to appointment to contract. Closing happens when we stop talking about what we will do or would do and ask them if they’re ready to start doing it.
Below are just a few quick examples of how to close through each step of a 3 part organized sales process.
“Based on these factors, here’s what I suggest we do: Let’s meet, outline your options, and take the first two or three steps together for about 15 minutes. Does this make sense? Does Tuesday at 3:oopm or 4:00pm work for you?”
“You’ve agreed that the marketing and launch plan looks solid, and our price point is established. Would you like to work with me, starting tonight? Let’s make it official with paperwork, okay?”
“This is over the net proceeds you wanted, and we’ve reviewed the other terms and liked them…. We can accept this now with your agreement. How does that sound?”
The following 4 real estate closing techniques are just examples of the many closing techniques, scripts and methods that are included in ICC’s online course PROSPECT.
This is the real estate closing technique that offers subtle & small commitments and validations. You state three ‘leads’—statements the prospect has agreed to be true or valid, and your ‘close’ is stating the logical next step:
Lead: You’ve explored homes for sale online,
Lead: There are so many choices—you’re not sure what’s a great fit,
Lead: The time it would take me to explore them for you is time you’d save,
Close: Let’s agree to meet Tuesday, so I can report what I’ve found.
With the Lead-Lead-Lead-Close model, you essentially validate, validate, validate and then close based upon that validation.
At the end of the day, when there’s a decision to make, the choice belongs to the client or prospect. With the Choice-Effect-Choice real estate closing technique, the agent weighs in with a few benefits or effects of the prospect making this choice, and then invites them to commit and make a final decision.
Choice: “What do you say you let me preview the property, and have you walk me through it?”
Effect: “I’ll gain perspective through the eyes of a buyer, and share what we’d do if we listed it, as well as some tactics you can use no matter who you list with.”
Choice: “I’ll be in your area around 5 tonight, and will finish with what I’ve promised to do by 5:30, okay?”
This real estate closing technique offers three options that run the spectrum of what could occur. When using this closing model, always present realistic scenarios. Don’t swing for the fences or overly dramatize the possible outcomes, or you’ll create suspicion and distrust.
Mr./Mrs. Client, here’s what I suggest:
Best Case Scenario: “We explore how I can help, you like most of what I have to say, and I answer your concerns & you’ll want to work with us.”
Worst Case Scenario: “After the first 10 minutes, should you decide this is NOT a good fit and you’d like to look elsewhere, we will part as friends.”
Most Likely Scenario: “We explore together, and what you don’t like, we find a way through to a mutual understanding where you win on all fronts. Is this acceptable?”
The Feel-Felt-Found real estate closing technique uses tried and true empathy:
Feel: “I completely understand how you feel.”
Felt: “I can appreciate it because some of my other clients have felt the same way when they ___________.”
Found: “What they found later was that _______________ .” Would this last factor change your mind about making a decision, at the risk of feeling ________ in the beginning?”