So, you would like to improve your real estate sales skills?
I hear you and I think sales is one of the most important skills you can learn in any industry and as an entrepreneur. Some considered it to be even the million-dollar skill.
But how can you improve your real estate sales skills?
According to the statistics, you do this by becoming a better communicator over the phone or face to face, qualifying early, asking the right questions to learn about the customer’s needs, communicating the value you provide, pitching less, not forgetting to close, and practicing sales role-play.
The line is blurry between marketing and sales in general.
And since there are many real estate agents that may feel that they need to improve their sales skills, I will tackle this question more in detail in the rest of this article.
You will learn 15 inspiring sales statistics, how you can increase your odds for better real estate sales, and more details about how you can improve your real estate sales skills.
If you are a big fan of robo-calls and sales scripts without wanting to listen to a potential customer, this article might not be for you. If not, please read on.
15 Inspiring Sales Statistics
You can already get a feel and also clues for the areas that need to be attacked to improve your real estate sales skills when we take a look at some interesting general sales statistics I found during my research for this article.
So, let’s have a look first. I will distill the most relevant stats for the sales areas that need to be attacked afterwards, and make them bold in the bullet points below.
1) After potential buyers have researched their options and created a shortlist, 60% want to connect with sales during this phase (source).
2) If a sales representative would call back at a scheduled and specific time, a little less than half (42%) of people would be motivated to make a purchase (source).
3) One major difference between top performers and non-top performers is that 47% of the first group asks for referrals versus only 26% of the second group (source).
Additionally, the ones who do ask for referrals earn 4 to 5 times more than the ones who don’t.
4) The large majority (92%) of customer interactions happen over the phone (source).
Also, according to Sales Insights Lab 2021 (source), 41.2% of sales representatives consider their phones to be the most effective sales tool.
5) A sales representative or vendor that responds first gets 30 to 50% of the sales (source).
Additionally, you want to be aware that when you wait longer than 5 minutes to respond there, is a 10x drop in lead qualification, and even a 400% decrease when you respond within 10 minutes in contrast to 5 minutes (source).
6) For a clear majority of sales (80%), you will need 5 follow-up calls after a meeting. And in my article about follow-ups, I already mentioned that 44% give up after just one follow-up.
7) Something important to keep in mind for later – only a tiny number (13%) of customers think that a salesperson understands their needs (source).
This goes together with the stat that you will have better sales success when you ask potential customers questions about their pain points and goals (source).
8) Your calls will be most successful if you focus on the value you can provide (96%), then work together with your customers (93%), give them perspective through market insights and other information (92%), and again assist them in understanding their needs (92%) (Hubspot, 2020).
9) More than half (55%) of the people working in sales lack the skills to be successful (source).
This is additionally supported by the fact that 85% of prospects are not satisfied with their experience over the phone (source).
10) Only 5% of attendees of a presentation remember statistics, but 63% remember stories (source).
11) For sales, qualified leads are closed by 30% of the best companies, and on average by 20% (source).
In the same context, it is important to note that at least half (50%) of prospects are not a good fit for the product or service that is sold (source).
12) Not qualifying a potential client the right way is responsible for 67% of lost sales (source).
13) In almost half (48%) of sales calls, no attempt is made to close a sale. So, it kind of makes sense that the overall closing rate is 27% (source).
14) Non-top sales performers do a lot more pitching (19%) or “premature sales presentation” compared to 7% of top sales performers (source).
15) If we compare top performers with non-top performers in terms of sales-related activities, 81.6% of the first group spends 4 hours or more on these activities compared to 60.8% of the second group (source).
Before I bore you with more statistics, let’s see what we can make out of them in terms of what sales areas need to be attacked to improve your real estate sales skills.
How Can You Increase Your Odds for Better Real Estate Sales?
From the sales statistics mentioned above, we can conclude several things that can move the odds in your favor when it comes to real estate sales success.
So, what can be concluded?
The phone or, for a better word, direct ear-to-ear or, even better, face-to-face (e.g. FaceTime, Zoom, Skype, etc.) conversations seem to be essential to have good customer interactions.
For sales skills improvements, this means you want to be a good communicator via these mediums.
I will come to what being a good communicator means later.
While it’s not directly related to real estate sales skills, it may improve your numbers if you want to get in the habit of responding as fast as you can to inquiries or calls you get.
You want to get better at understanding your potential customers’ needs by asking them the right questions.
This comes back to being a good communicator.
When it comes to objections, you may want to focus on communicating the value you can provide aligned with the needs you discovered beforehand by again asking the right questions.
Most people remembering stories in contrast to stats gives us a clue about the importance of emotions.
Because stories usually convey emotions.
This means, in turn, that if you manage to sell by triggering some emotions with your potential customer more of what you have to offer will be retained.
This is not limited to stories.
There are many other ways you can trigger emotions in a sales call, such as, for example, exacerbating pain points further.
The next clue we get from the statistics is that you likely need to improve in terms of qualifying potential customers or prospects.
You can waste a lot of time when you first give a large presentation, the prospect picks your brain to get a free consultation, and then start to qualify or rather disqualify her way too late at the end of the call to find out that she needs to think about it, wait until the next full moon, or light a candle in church first, and doesn’t have the budget.
The opportunity costs are huge.
The time you wasted with this type of unqualified or late qualified client could have been spent in talking to several more that may have resulted in a sale.
What we can also learn from the stats is that you might also need to improve your closing skills.
Remember that almost half of the salespersons don’t make an attempt to close a sale.
This can happen quite a lot when you may have prepared a nice presentation for a sales call.
And since you put so many hours into the preparation, your focus is on giving the presentation quickly but miss the buying signal from your potential customer.
Instead of skipping the presentation and going into the close, you go through the presentation and the potential customer goes from very interested (“shut up and take my money”) to less interested (“maybe I should reconsider”).
That this problem seems to be a reality is further confirmed by the statistics mentioned above: the high performers do less pitching than the lower ones.
And lastly, another element to improve your real estate sales skills seems to be to increase the hours put into sales activities.
It’s kind of common sense, but the more you practice this skill by doing it, the better you will get.
How to Improve Your Real Estate Sales Skills
Most of the points I mentioned in the section before to increase your odds are part of a sales system I know as the G.U.T.S sales system from Claude Diamond.
You will need to become a better communicator, and rather than using and getting attached to sales scripts, you want to have a sales system in place or better ingrained in your mind that you have already practiced several times via so-called role-plays, where your role-play partner gives you a hard time.
The problem when you use a script is that many of the things I mentioned to increase your odds for better real estate sales will fall under the table.
Because first, it will be more difficult to listen to the prospect when you focus on the script.
This means you will lose out on getting to know the needs, pains and greeds of your potential customer.
You also can’t be prepared with a script for every eventuality that may come up in a conversation.
If you do, you will have such a complex script at the end that you will lose the whole picture pretty fast.
In this context, I would like to mention a nice article from indeed.com I found during my research.
It mentions what is considered as the 10 top communication skills:
- Active listening
- Using the right communication method (when you sell things like real estate where amounts are usually above $1000, you want to use face-to-face communication, for example; in e-commerce, this would be another story)
- Providing and accepting feedback
- Volume and clarity
- Empathy (e.g. “I am so sorry to hear that you need to sell your lovely house. It must be tough to leave this place”, etc.)
- Respect (not only from you to the customer, but also from the potential customer towards you)
- Being able to pick up nonverbal cues
So, now you may already know the answer of how good of a communicator you would be if you are using scripts or rather are too attached to a script.
But the same is also true if you don’t get the role-play practice if you have the theoretical knowledge of a good sales system such as the one from Claude Diamond.
It will be a bit like learning to drive.
First, you will have to focus way too much on your conscious head-eye-foot coordination, but won’t be able to react spontaneously to suddenly occurring situations on the street.
But once you have put the hours in, it starts to work automatically and you become a better driver, because you will be able to adapt flexibly to most of the situations.
You might even start to text and drive (which you shouldn’t do, of course ;-)).
You can read many different books on sales, persuasion and communication, but if you don’t practice what you read or learn, it won’t make much of a difference.
It basically needs to be mastered in a way that it enters your subconscious.
Now, when you take a look again at the conclusions from the section before, you will find that most conclusions from the statistics tie in with what makes a good communicator.
In the past, I’ve also read many books on sales and persuasions and also watched several videos from so-called sales gurus.
But up to now, there was only one guy that stood out to me who, although he possibly could call himself a millionaire real estate guru, came across as modest, approachable, and trustworthy.
I will mention him one last time in this article.
It’s Claude Diamond and when I compare his sales system to what the stats in this article say, the conclusions I drew and what is considered to be good communication, it basically covers all of that.
His system is based on asking good questions, qualifying early, not giving early presentations, mutual respect, and different persuasion moves during a sales call. And, of course, not using any scripts and role-plays.
He offers several different coaching packages and info products where, depending on what you choose, group role-playing is also included.
This article has been reviewed by our editorial team. It has been approved for publication in accordance with our editorial policy.