Michael Michalak

On a recent coaching call, my coach shared some very interesting survey results. They pertained to the number of communications to a client versus the purchase frequency. Here are the stats:

48% of sales people never follow up with a prospect

25% of sales people make a second contact and stop

12% of sales people only make three contacts and stop only

10% of sales people make more than three contacts

2% of sales are made on the first contact

3% of sales are made on the second contact

5% of sales are made on the third contact

10% of sales are made on the fourth contact

80% of sales are made on the fifth to twelfth contact

Source: Buffini & Co.

We have all been frustrated by clients who don't seem to be engaged and ready to buy. These stats show the importance of follow up.

I came across this great Forbes article, "Five Reasons Why You Still Need a Real Estate Agent".

With all the internet tools available to buyers and sellers, some may think that an agent is a thing of the past or optional. My feeling is that a good agent is a project manager that gets a listing sold or helps a buyer purchase a property. The agent makes sure each step of the project plan gets completed and handles any breakdowns when they occur (they usually do).

The Forbes article highlights five points that an agent is needed:

1. Better Access/More Convenience

2. Negotiating Is Tricky Business

3. Contracts Can Be Hard To Handle

4. Real Estate Agents Can't Lie

5. Not Everyone Can Save Money

I have several additional points to add:

6. Local knowledge and intuition. Specializing in downtown Chicago, I keep up to date on the latest news that affects property. A new grocery store being announced next to a certain property would have a positive effect on home values in that development. Conversely, negative news or happenings can have an effect. Wherever the property you plan to sell or buy, it would be an advantage to enlist the help of someone who specializes there. A neighborhood specialist also knows how to promote the best qualities of an area and how to handle common objections to a property. I expand on this in my ChicagoNow interview with writer Dan Rafter.

7. Managing the transaction Despite what some may think, a real estate transaction is a complicated process that involves carefully coordinated steps. Based on a list prepared by Belton Jennings, CEO of the Orlando Regional Realtors Association, the selling process from start to finish involves up to 180 steps. When issues come up, having an experienced agent with a cool head is a must. For example, a problem with financing or a problem found during inspection could quickly kill a deal if not handled effectively.

8. Let a professional handle it. Having an advocate that is not emotionally attached to the property can be a huge asset. How would an owner react to feedback from a showing of their property. That beautiful heirloom clock that Aunt Millie got you when she was in Switzerland might mean the world to you now that she's gone. Unfortunately, if a buyer comments negatively on it, emotion could take over. Emotion is the worst thing that can creep into a real estate transaction. It can color communications between buyer & seller, buyer's agent & seller's agent and ultimately sour the deal.

Lastly, knowing who to turn to when things go completely off track is critical. A buyer or seller may not have access to a senior managing broker or real estate attorney to help them put things back on track. The best metaphor I can think of is that you can go to court and defend yourself without a lawyer, but it is very difficult. Similarly, you can juggle knives and not get injured, but the likelihood of success is very low.

Downtown Chicago Alderman Brendan Reilly is pushing to limit short term "vacation rentals" in condominium buildings in the city. From Crain's Chicago, "Under the measure proposed by aldermen Brendan Reilly (42nd) and Edward Burke (14th), condo owners who want to rent out their units for short vacation stays would be subject to licensing fees, inspections and taxes" The above picture is something that the new legislation aims to reduce or eliminate. Short term rentals are defined by the proposed law as two to five days. From Greg Hinz's Crain's Blog, Reilly had these comments, "In many cases, these units are never owner-occupied but become party pads," Mr. Reilly said. "Older residents are concerned about safety. . . .People see strangers in the elevator." I am in agreement with the new proposal. I don't feel like the building's maintenance and door staff should have to take the time to 'check in' a guest and answer questions about what elevators go where and where they can or cannot park their car temporarily.

Also, let me be clear and say that living in Marina City downtown, I don't mind helping guests or relatives of family that might be staying in the building. Conversely, I don't want to be the unpaid concierge for 'guests' that will only be here a couple of days. I think that most people would agree that these guests also would not care for the building as well as a conventional tenant or owner would. I would love to hear what you have to say.