I can't believe that only 2% of the floor calls in the United States are converted to customers. Yes, you heard that right. Only 2% of buyers who are calling your office to find out about properties are being converted to customers. When I heard that number in 2001 when I first started I knew that was a huge gap and of course an opportunity for me to shine.
I spent the first few weeks of my Real Estate career listening to Agents, and good Agents, doing floor time. I listened to their phone calls and almost immediately figured out the problem. I then asked many of these Agents what they thought of floor time. They all said the same thing, in fact it's the same thing I hear from Agents all around the country. According to these Agents it was a complete waste of time. So I asked them why they hate it so much. Their answer was very telling. They said that all these people wanted were prices of homes and they never buy anything.
One thing I have learned throughout my life, and have made a good living at it, is to do the opposite of what everyone else is doing. I set out on my quest...which lasted about 15 minutes, to figure out how to do floor calls. My first year in business I sold 36 homes. Of those 36 homes, 28 were from floor calls.
One of the things I teach at The eHomes Realty Network (www.ehomesrealtynetwork.com) is how to handle floor calls. I know that most people know me as an Internet expert, but our Network offers so much more. We not only teach and help you master the Internet, but we also teach you how to maximize every lead that comes your way whether from the Internet, Floor Calls, FSBO's, sign calls and more.
So let's talk about floor calls for a minute. Does this sound familar? The phone rings and here is the conversation.
Agent - Thank you for calling Anyplace Realty, this is Suzy, how can I help you?
Customer - Could you tell me the price of 111 Main St?
Agent - Sure, that price is $269,000. Is there anything else I can help you with?
Customer - No thank you....good bye.
I have heard that floor call conversation a thousand times when I first got in the business. The problem was obvious. The Agent didn't give herself any time to build a customer. She didn't have a chance. So do Agents hate floor time because they don't know how to take advantage of the phone call to turn that caller into a customer. That's my belief. I find that most people will blame everything and everybody about their failures. Don't you think it's time to look in the mirror and start taking responsibility and learn how to be successful at things you aren't good at.
Ok, so how do you handle a floor call and get a lead 80% of the time? It's actually extremely easy.
First, you must be prepared on floor to handle a call. You must have your MLS open the entire time so you can handle the call properly. You must not be on the phone during floor time as you won't have time to handle the caller when they call. We have all been guilty of the quick answer because you were to busy to handle the call. I know, I can't believe anyone would be too busy to not help a buyer on the phone.
Ok, so I'm going to teach you how to handle the call. This is directly from one of my training manuals which all my members at The eHomes Realty Network have access to every day and night. By the way, if you are not getting what you want out of Real Estate then you owe it to yourself to check out the Network. I know that you will increase your sales but I can't make you take that step. It's up to you to really think about what you want out of this Real Estate business and to make the decision to go and get it. Ok, no sales pitch...this is how to handle a floor call.
Using the MLS to Capture a Lead
As with our phone calls we make to our leads, your personality will be the first contact with this new potential customer. Many times a person is calling just to get a price of a home. They are very tentative and sure you are going to try to sell them something. Their guard is up! As I have said many times, if you can have fun, you can win. I usually answer the phone with something to catch them off guard. A simple, "Good Morning" when it is the afternoon will always get a chuckle or a "Are you having a fun day?" will do the same. It's tough sometimes, but if you can't break the ice you will have difficulty converting the call to a customer.
Let's go through a typical phone call. This will illustrate how a good floor call should go.
Agent - Good Morning! Are you having a fun day today? This is Mitch, what can I do to help you?
Customer - I guess it's a fun day! By the way it's afternoon not morning.
Agent - Oh yeah, time just flies while I'm having fun here! So what can I do for you?
Customer - I would like to know the price for (insert street address)
Agent - Great let me get pull that up and I can take a look. This will only take a minute or so. So are you local or out of state?
Customer - I'm in Boston.
Agent - I'm from Boston too (if you are lucky enough to make that bond, you are all set. You should be able to get them easily as a customer) I've been down here about 9 years and I love it. It's the best thing I ever did. Are you currently working with Realtor?
Customer - No, I'm just starting to look and I found your website online.
Agent - That's how most people find us. Most of our customers come from the North. Are you looking for vacation home or are you moving down here permanently?
Customer - I'm thinking about moving down there for good. I'm sick of the cold!
Agent - I understand that one! What type of home are you looking to buy?
Customer - I'm looking in Cocoa Beach. I've always wanted to live near the Ocean. I need at least 3 bedrooms and 2 baths.
Agent - How big a home do you want?
Customer - At least 1800 sq. ft.
Agent - Ok, I got the info on the home you called on, it's $285k. When are you going to be coming down here to look at houses?
Customer - Next Month.
Agent - Do you have to sell you home first?
Customer - No I currently rent and it's time to buy. I'm tired of throwing money away.
Agent - It's true, for what you pay for rent up there I can help you find a home to buy. Well, while we were talking I pulled up a list of properties including the listing you called on. There are 25 others that are similar. Would you like me to send you the list so you can look at them?
Customer - I don't want to waste your time in case I don't come down there.
Agent - Not a problem. I'll also set you up in our listing update system which will notify you of any new listings that come on the market. What's your email address and I'll send you the list.
Customer - Billy@BillyBoy.com
Agent - Great! I'll send it right up to you. Could I have your name and phone number. I would like to check in with you to see if you have any questions or would like me to change the homes I'm sending.
Customer - Sure, my name is.....
Agent - Great, I'll give you a call in a few days to go over the listings and we can start to put together a list of properties to show you next month when you come down.
You have now created a lead, a very strong lead. Many times the customer will be local but they may also be from anywhere in the world. Also, many times they are looking at your website and the property they are calling on is located in our IDX system. If it is not on our list of in-house listings, you need ask them if they have the MLS number. They usually do. The few key points you need to take from this dialogue are:
•a. Are you working with a Realtor - I'm not a big fan of doing other Realtors work. Ethically we are not allowed to try to steal the customer if they call on one of our listings. You will find over time that most Agents will try to steal your customers. It's the nature of this beast. However, all of our Agents are required to be the best and most ethical and honest Agents in the county. We don't lower our standards because they lower their standards.
•b. Find something in common quickly - If you can create a common bond quickly, you can almost guarantee you winning this person over. For me I use Golf because it relates to leisurely sunny days while relaxing. Everyone can relate to the sun and relaxation.
•c. Send them a list - Be sure to get their email address to send them a list. Once you have them set up in your prospecting system you will be in front of them on a regular basis.
•d. Get their phone number - Of course the ultimate goal is to get their phone number to follow up to eventually get the appointment to show when they come down.
•e. Get the appointment - If they are a local lead, your goal is to set an appointment. A simple "would you like to see any of these?" works. You can't get what you don't ask for. Ask for the appointment and you will be pleasantly surprised!
Well I know this has been quite the long blog, but it's an important one. You can just blow this off, or you can change the way you view floor time tomorrow morning. I hope you take this info and add a few sales to your bottom line this year. If you find this information helpful, you do owe it to yourself to check out The eHomes Realty Network. Just think if you sell a couple houses because of this blog, how many homes can I help you sell if you actually read all my training and have me as your personal consultant? Your future is totally up to you!
Hi Mitch - when I started real estate a gazillion years ago I did A LOT of floor time and was able to convert a lot more than 2% into customers/clients. Floor time and open houses were the way to go in those days.
Mitch,
Great blog. Thanks for taking the time.
I agree that floor is an art and you seem to have mastered it.
Mitch,
Great information. I do the same...finding a common interest or bond is a great quality in a RE agent.
Thanks for taking the time to post.
Its true, I've seen some agents try to prequalify the person by the inflection of their voice. To determine if they really are serious or just curious. My 3 biggest leads so far we not very forthcoming with their info, but though "idle" conversation we bridged the gap to what they really were seeking. I've had floor calls hang up on me, guess they really were just browsing.
Mitch: Every call can mean potentially mean tens of thousands of dollars in business over the long haul. It's wise to build rapport as in your example then people don't mind telling you what's going on. Thanks for your post.
My guess is most of the reason for the lack of effort on floor calls is most likely because most Agents don't look at Real Estate as a business. If you don't look at your business as a business, then you don't develop systems in which to develop business. Thanks for all the comments!
Hi Mitch - Amazing statistic and very good advice. Thanks for the post.
Excellent post....most of this problem is due to a lack of agent training as well as a lack of confidence in dealing with prospects on the phone.......
Julie - That was the purpose in starting The eHomes Realty Network. I have learned through traveling around the country and talking to Agents and Brokers that most smaller companies and Agents get little to no training. Our Network can help brand new Agents as well as Agents and Brokers who are trying to learn how to use the Interet to generate business. Although most people know me because of my Internet abilities, but Brokerage has grown every year and become number 1 with buyers in our county due to all our programs...especially understanding how to convert a lead no matter where it comes from..the Internet, Sign Calls, or any other form of marketing.
The only goal of my Network is to save Agents and Broker money that I spent figuring all this stuff out! You can check it out at www.eHomesRealtyNetwork.com
It seems that depending on your area floor calls maybe just a way to get free coverage for the office. We have not seen much success with floor duty and so we don't do it.
Back when I was the manager of an office, the single most difficult task I had to do each month was to set the Floor schedule. My agents ran the spectrum from a few who wanted as many hours as they could to a few who cringed whenever they heard the phone ring. I never understood. But I did listen (much as you did) and was appalled at what I heard - even from those who wanted the time.
Well, we started having coaching sessions about how to handle incoming calls. It proved too difficult to track the conversion rate (dont get me started on that whole new topic!), but I did find that it got much, much easier to fill the schedule each month.
A little training can sometimes go a long way!
Mitch, You mean all we really have to do is be nice and act like we care? Geeesh....who would've thunk it! I truly believe one of the keys to success is having the ability to build trust quickly. And one of the best ways to do this is to be a likable non threatening person. Good stuff Mitch.
Patty and Scott - The problem is that you don't know how to make the best of floor time. If I was selling real estate in this market I would be knocking people over to do floor time. I can tell you that it is a way for Brokerages to have coverage but most importanlty it's so there is always an Agent on duite in case someone walks in or calls. If you would like to chat about our floor call system, I would gladly help you.
As for the area, I don't see a difference between a floor call in Melbourne and a floor call in Vancouver, WA. A potential lead is a potential lead. Why dont you give it a try and then let me know how you make out. I would venture to say you will be pleasantly surprised.
Bryant - It's amazing to me how easy this is and how small that conversion stat remains. I have made quite a living just being a good guy and helping my customers the best I can do. It's create a great revenue stream, tons of referrals and I have taught my Agents the same values. I believe that's one reason we are so busy. For the month of August we closed another 24 transactions. I think this puts us over the 200 market with 5 months to go. My goal for the year was 250 so it looks like that should be no problem.
Floor calls can be the lifeblood of a new Agent and an experienced Agent just the same. If you are not doing floor, are you spending 40+ hours building business and showing property? I guess some Agents are just waiting for the market to get better instead of testing and working every possible solution to increase sales.