Real estate sales 101—cut a path through jungle of competition

Real Estate Weekly, Dec 31, 2003 by Adelaide Polsinelli

There are currently several thousand licensed real estate salespeople in NYC today.

Every one of them has had to take a course and pass a test or two in real estate, but very few of them have been taught what they really need to know to be successful in New York City's jungle of competition.

A beginning salesperson needs to first get affiliated with a brokerage firm. This is the single most important step in your career. It can mean the difference between success and failure having nothing to do with you. Make certain to investigate the companies you are interviewing with. Find out if there are any outstanding lawsuits against them. If you don't understand them ask an attorney's opinion.

Speak to former associates and be sure to find out why they left and what they thought were the company's strong points and weak points. Who are the principals of the company and what are their affiliations?

Talk to other brokers, owners and real estate attorneys and find out the overall character of the company and its owners. Do they pay their salespeople? The last thing you want is to find yourself in a firm that is notorious for stiffing its salespeople. Never sign any employment agreement without having your attorney review it and remember, everything is negotiable.

Once you have established the most complimentary fit, let's go to day one of your adventure. Make sure you introduce yourself to your new associates and be cognizant of their time. No one likes to be intruded upon or have their time wasted. If you have questions, keep a list. Do a little research into when the person you want to speak to is doing nothing other than canvassing or farming as some firms call it.

What is canvassing?

Canvassing is the search for listings, or product, in this case it would be real estate properties that are for sale. Like farming, you are planting seeds today for tomorrow's harvest.

Where do listings come from? Where does one canvass?

There are many places to find listings in this day and age. The most difficult, but most productive route, is cold-calling owners. Be very careful since the government has enacted "Do Not Call" list. You will have to check who can and can't be called. The most basic approach is to call the owners of real estate and ask them if they are selling. This may be difficult for those of you who get discouraged or rejected easily. If you keep in mind that these are strangers and they do not know you, you should be able to get through it. If this process is keeping you from making any progress, find another profession because it is only going to get worse for you. If rejection is not an issue for you and you don't scare easily, then blaze your trail!

Getting listings is equivalent to making deposits in your bank account. While many of these properties will not sell today, with careful nurturing and attention, they will reward you in the future. The more listings you get, the more product you have to sell. This is your inventory.

Where do buyers come from?

Every seller of real estate was a buyer at one point and may still be. Anyone can be a buyer. Let's assume you just got a great listing and don't know where to find a buyer for it. Why not start with all those sellers you called during your canvassing days? If it's a "good deal" anyone will buy it!

Buyers come a dime a dozen, just don't get stuck focusing only on them and not on canvassing. Without product, what good are a dozen buyers?

How do I write up a listing?

There are several essential components to a "listing" and many of them can be found without the seller's assistance. Once you have the address, go see the property. A picture paints a thousand words.

Check out the neighborhood. Count how many stories the building has and the number of apartments and stores. The super's name is usually listed in the building's vestibule. Get the full address, the cross streets or intersections, the size of the lot and the size of the building, and the assessed valuation, all of which can be found in the industry "Blue Book."

The next step is to check the zoning map and get the zoning. Books that explain what the zoning allows are available at most real estate brokerage firms. Call the owners for the rest of the information and don't forget to get the asking price!

How do I present an offer?

It is always best to get the offer in writing from the potential purchaser, however, it is not always realistic. In the event that you are asked to prepare the offer, make your best effort to have the potential purchaser review it before you submit it to the seller. A complete offer should have the following components:

1. Purchase price.

2. Terms. (Is it an all cash offer or will the purchaser request that the seller hold a mortgage?)

If the offer is all cash and the purchaser will be getting financing from an institution, make sure to ask if the offer is subject to getting a certain amount of financing.

Keep in mind that most sellers prefer deals that are not contingent on financing. If the purchaser is requesting seller financing be certain to get the length of time and the interest rate.