GR Phelps training manual complete april 2012 by Graham Roberts-Phelps

Training Manual Complete

Confidential Must not be copied or distributed without written permission ÂŠ GR Phelps Ltd 2012 www.grphelpsonline.com www.estate-agency-opportunity.co.uk

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 1

Contents Lettings.................................................................................................................................................... 5 Introduction ........................................................................................................................................ 5 Getting started with your new letting agency ........................................................................................ 6 Promoting Your Service To Tenants .................................................................................................... 9 Target markets .................................................................................................................................. 11 Landlord Review................................................................................................................................ 12 Working With Tenants ...................................................................................................................... 13 Property Letting: Administrative Procedures ................................................................................... 16 Important points for the letting agent.............................................................................................. 17 Responsibilities Of The Letting Agent ............................................................................................... 18 Extra Profits For The Letting Agent ................................................................................................... 20 Useful documents ................................................................................................................................. 22 Property Sales: Know your buyers ........................................................................................................ 49 The Buyer Pool .................................................................................................................................. 50 The Buyer’s Perspective .................................................................................................................... 51 What Buyer’s Look For ...................................................................................................................... 52 Respect Your Buyers’ Intelligence! ................................................................................................... 54 Property Sales 2: Be a professional....................................................................................................... 55 Attitude is Everything! ...................................................................................................................... 56 The Steps to Being a Professional ..................................................................................................... 57 About Doubts… ................................................................................................................................. 58 Property Sales: Finding properties........................................................................................................ 59 Property Sales 4: Common erros .......................................................................................................... 62 Know the Rules…............................................................................................................................... 63 Some More Common Selling Mistakes ............................................................................................. 64 CONCLUSION......................................................................................................................................... 65 Personal Marketing Skills ...................................................................................................................... 67 Business networking ............................................................................................................................. 69 Ten essential principles ......................................................................................................................... 71 Networking planner example ............................................................................................................... 78 Networking checklist............................................................................................................................. 82

GR Phelps Ltd Training Manual – Page 2

Types of networking situations, events and methods .......................................................................... 85 Introduction to professional selling ...................................................................................................... 90 The seven steps of the sale ................................................................................................................... 93 The seven steps of the sale ................................................................................................................... 94 1. Planning and preparation ............................................................................................................. 95 2. Introduction/opening (the seven steps of the sale....................................................................... 96 3. Questioning (the seven steps of the sale ...................................................................................... 97 4. Presentation ................................................................................................................................ 100 5. Overcoming objections/negotiating ........................................................................................... 102 6. Close/closing/agreement ............................................................................................................ 104 7. Follow-up/fulfilment/delivery/admin ......................................................................................... 106 The product offer (also called 'sales proposition').............................................................................. 107 How to gain referral business ............................................................................................................. 111 Appendix ............................................................................................................................................. 115 Goals ................................................................................................................................................... 116 Goal planning template ...................................................................................................................... 118 The aim - level one .......................................................................................................................... 119 Direct cause factors - level two........................................................................................................... 120 Enabling factors - level three .............................................................................................................. 121 Goal planning - in summary ................................................................................................................ 123 Systems and getting started ........................................................................................................... 125 Checklist to getting started ............................................................................................................. 126 GR Phelps services .............................................................................................................................. 128 Property sales – getting started .......................................................................................................... 129 The valuation appointment ............................................................................................................ 130 Setting price .................................................................................................................................... 131 Applicant and buying enquiries ...................................................................................................... 132 How to Price a Home - article ............................................................................................................ 133 Enquiry form ................................................................................................................................... 135 Valuation form – property for sale ................................................................................................. 136 Preparing property descriptions ..................................................................................................... 137 Prospecting ......................................................................................................................................... 138 Managing data ................................................................................................................................ 139 Some notes on suggested or possible prospecting activities ......................................................... 140

GR Phelps Ltd Training Manual – Page 3

Approaching private sales websites/existing FSBO listings ............................................................ 142 Finding BMV properties .................................................................................................................. 146 Partnership building ........................................................................................................................ 147 Approaching trades people............................................................................................................. 149 Mortgage brokers as business partners.......................................................................................... 150 Trustatrader campaign.................................................................................................................... 151 Online activity ................................................................................................................................. 154

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 4

Lettings Introduction One of the most important services we offer is our Find a Tenant service – with viewings conducted by you or the Landlord. This is either a fixed-fee or a percentage of monthly rental if viewing done by yourself or simple fee for advertising the vacant property if viewings conducted by the owner. You can also offer additional services such as tenant reference and credit checks, inventory services and property and letting management. Credit checks are always needed from the prospective or chosen tenant. These are best performed by us and the tenant charged a fee ranging from £50 to £150. The following ebook included in this manual(“How to find a better tenant faster”) is available to send or give to customers and is included here as an excellent training or reference guide. Please see also the general points regarding a Landlord review at the back of this section. We can also provide high-quality letting management full services. A number of useful forms and guides are available in the article or FAQ sections of www.grphelpsonline.co.uk

GR Phelps Ltd Training Manual – Page 5

Getting started with your new letting agency The success of any business depends on how well you market it. However, with a letting agency there are two distinct markets; landlords and tenants - and so two distinct marketing approaches are necessary. Whilst the landlords effectively pay your wages and tenants pay you nothing, marketing to prospective tenants is equally important since the more tenants you attract the more landlords you can serve - and the happier they will be. However, this is becoming less important for letting agent as so many tenants are now registered with the larger property websites that this effectively becomes your tenant database as well. Promoting Your Service to Landlords There are many different types of landlords and each has a slightly different motivation for wanting to use a letting agency service. Some of them may be seasoned property investors with many properties to let, while others may just own one property. Some may be expatriates who are working abroad, while others may turn to letting because they are unable to sell their own home. Whatever their situation, you must actively promote your service to them. These methods are all suitable: 1. Press Releases and Editorials Local newspapers, radio, advertising magazines and websites are always interested in the launch of a new business. So send them a press release and tell them about your business. You will get some free publicity. Also, if you decide to advertise with the newspaper you will almost certainly get much more free press release publicity in the future. 2. Recommendations and Referrals Most landlords and people in the property business know other land lords and others who make their living from the properties market. Once you are established in the business you will automatically benefit from this word of mouth' advertising. However, make a conscious effort to use it, simply by mentioning to everyone you come into con tact with in your property business that you also offer a professional letting service. 3. Local Advertising This is can be an effective form of advertising, especially for a new agency. It is also probably the most effective way of reaching the 'non professional' landlord, i.e. those who have just one property they wish to rent out perhaps because they do not wish to sell it, which is the Ideal type of business for the new agency. This is also may be a good way of attracting customers who perhaps had not thought of renting their property through an agency. Once they realise you are available, they may decide to do so. You do not need a series of expensive, full page advertisements to establish your agency. The best policy to adopt is one of 'little and often.' Simple lineage adverts are effective, but make sure you place them every day or week. Here are some examples: LANDLORDS! All types of property required for waiting tenants. Full Management or Basic Letting Service. For FREE details Tel. 01234 567890.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 6

Vacant property? We can find you a tenant for just ÂŁ99 Call / sms or email EMPTY PROPERTY? Specialist Letting Agency requires all types of property. Tenants waiting. For free details telephone: 01234 567890. Specialist Letting Agency requires all types of property for waiting tenants. Telephone 01234 567890 for free details. Always point out that you have tenants waiting. Landlords will always be attracted more quickly if they know that their property can be filled quickly. Maybe offer a money-back guarantee if paying up front. It is also worth stressing that you are a specialist letting agency. I.e. not just an estate agency that does letting on the side.' Again, landlords will be attracted if they feel you specialise in letting and their property won't be treated as a lower priority than property for sale, which is the case with many estate agents. GR Phelps / fixed fee edge: Not all letting agents will be keen to offer a fixed fee tenant finding service, but rather sell a managed service at 10-15 or even 20% of monthly rental. Also, writing a good advert is important and do not assume that all agents are good at this. 4. Your Competition It makes good sense to get to know other people and companies in your area who are running a letting service. Rather than being fierce competitors you can actually help each other to work more productively and profitably. It is often the case that other letting agencies may have a glut of a particular type of properties to let, while you may have a shortage. You may have properties which you find hard to let, while other agencies could fill them in days. By working together you can match supply and demand even more effectively over a wider area. In areas where you co-operate with another letting agency it is usual to share the fee income 50-50 or they keep the Landlord fee and you keep the tenant credit check and reference fee. Tip: Offer to find a multiple landlords property next tenant free, so long as you get the reference fee from tenant. 5. Direct Contact With The Landlord. Build up your own personal contact list of landlords in your area. You can do this by making enquiries with other letting agencies, as well as scouring the property 'small ads.' You may also find some landlords listed in the 'Yellow Pages' under 'Accommodation.' Do some detective work with the aim of matching together known landlords with their properties and then finding a telephone or address contact for them. It is well worth contacting these people direct to establish a relation ship. There is no need for any hard sell. Just introduce yourself. This method is suitable: Make a preliminary phone call "Hello, could I speak to Mr. Brown please. Good morning Mr. Brown. My name is Mike B from Mike Black Associates. We operate a specialist property letting service in the Anytown area. I understand that you let your properties from time to time and I would like to send you some details of the service we offer to landlords in your area. Would that be OK? With this sort of approach the landlord has nothing to lose and so is unlikely to object. GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 7

Simply confirm the email or postal address to send the literature to. Send out some basic information This is where you can gain advantage over many of your competitors. Many agents do not have any formal sales literature, relying instead on a verbal description of their services. However, in this business image is very important. By sending out descriptive and well presented literature you will be one step ahead. Although a brochure is ideal you can prepare simple sales literature by writing a description of your services, adding a list of charges and sending it with a sales letter. Print this up on your business letterheads. A sample sales letter and brochure copy is provided at the end of this lesson. Make a follow up phone call Hello Mr Brown? This Mike Black from Mike Black Associates. I'm just calling to make sure that you received the information on our property letting service that I promised you. You did. That's great can I ask you f you use a letting agent at the moment?' From here you can go on to find all the information about the landlord, i.e. whether they use an agent, whether they would consider using one, how many properties they have, how often they come up for let, and whether they have any properties at the current time. Not every contact will necessarily result in immediate business of course. However, if you have made a professional approach your agency is highly likely to be remembered for the future. 6. Direct Contact With Householders You should also consider making a direct approach to private individuals who have their houses up for sale and Identified by 'For Sale' signs in the garden. This approach works best of all in a sluggish housing market, or at times of the year when it is more difficult to sell property, i.e. during the winter. If these sellers have lined up a new property but cannot sell their own they risk losing the new property. By renting and then selling at their leisure it solves their problem quickly. These people may not have thought about renting or using an agency so your approach could be very welcome.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 8

Promoting Your Service To Tenants While every good letting agent provides a first class service to landlords, don't forget that it also offers considerable advantages for tenants. Instead of responding to dozens of small ads for property to rent (many of which are taken by the time they reply), tenants can find the right property for them through one single point of contact, and at no cost to them. In short, as a letting agent, you will have an instant, ready-made customer network with no hard selling. Very few businesses can boast those advantages. When promoting your service to tenants remember that all tenants are looking for one thing - a place to live which is just right for them and at the best (low) rent Whether that place is rented direct from a commercial landlord, estate agent, householder or letting agent is largely irrelevant to the tenant. However, you can encourage them to let through you if: a) You make it easy for them to find and view suitable properties b) The whole letting process is made as simple and straight forward as possible. Remember tenants leave bad landlords and letting agents just as much as they leave bad properties. In this regard remember that your tenant is in some ways a client' of your business! As such, you need to promote arid sell your service effectively to them. Here are the best ways to reach prospective tenants: 1. Press Releases and Editorials These can be used to attract tenants as well as landlords. When preparing a press release or editorial for the purpose of attracting tenants, remember that it must stress the benefits to the tenant, rather than to the landlord. 2. Local Advertising Local advertising is very much the lifeblood of the letting agency business, so far as finding tenants is concerned. Every local paper has a 'Property To Let' section. It is essential to advertise there and this is where you should concentrate the bulk of your advertising campaign. You can adopt two approaches to local advertising: 1. You can advertise that you have properties to let without naming specific properties, and offer tenants a 'free search/location' service. 2. You can advertise specific properties to let, and simply wait for tenants to contact you about the property they are interested in. If you are advertising specific properties then the aim should be to achieve maximum response at minimum cost. Newspaper advertising is always expensive. Try to include only the most appealing points and write a small ad round those factors. For example: XYZ Area - two bedroomed flat - fully furnished - £75 per week. One Bed Flat - Close City Centre - Well appointed - £250 pcm. Fully furnished four bedroom luxury detached - Anytown - £500 pcm. When prospective tenants enquire you can then provide them with further details. Once your agency becomes established try to cover several properties with one generalised description. This means that several properties can be let from one GR Phelps Ltd Training Manual – Page 9

small ad! 3. Direct To Local Companies Large companies frequently move employees in and out of a given area. Some will be moving into an area with a view to buying there eventually, and others will be only on short contracts or visits. While you can help these people direct you can also offer your service direct to the companies, as they frequently help their employees to find accommodation, or even rent it for them on a company let. Contact the personnel department at the following institutions to introduce your service. Do this by telephone, letter or fax. They'll be glad to have their employee location problems solved, or at least made simpler. • local businesses • local authorities • emergency and armed services • hospitals • universities/colleges • construction companies 4. Posters and Window Cards Putting up a poster or sign on properties to advertise the fact that they are available costs very little, and is also a good way of getting free advertising for your letting agency in general! However, it is usually insufficient in itself as a way of letting a property and should only be used a sideline to other methods. Also, as an extra to your promotional activities you should consider placing cards/posters detailing your service in places such as shop windows, company, college and hospital notice boards. This kind of advertising is most effective when used to promote specific properties in the immediate local area. 5. Publishing Property Listings A brochure listing all the properties you have available is a useful marketing tool. You may not wish to do this when you are relatively new and have few properties, but you should certainly consider it long term. The listing may give either brief or lengthy descriptions of the properties involved. However, it should never give the actual addresses of the properties. This may result in unwelcome, unexpected visits from prospective tenants - or burglars! For the very best results, update your listing on a daily basis. This is easy to do if you have a PC with a word processor. Update the list as a property comes onto your books or is let, then print out a copy every lime it is requested. Make it known to clients that your list is right up to date. and that it is more accurate than expensive, printed brochures. GR Phelps edge: Setup and run an iProperty Club in your nearby area and you will attract lots of good contacts and referrals. As well as being a good way to promote your service to tenants (and also to landlords) a website can enable prospective tenants to search online for suitable properties, thus reducing the time and work involved in handling enquiries and searching your database yourself.

GR Phelps Ltd Training Manual – Page 10

Target markets As a letting agent you have two target markets: landlords and tenants. Each target market has its own requirements and we will study the requirements of each in this section. Working With Landlords Landlords can come from a number of different sources and back grounds, as we have already covered. However, despite their different reasons for being in the letting business, they all have very similar aims and objectives in letting their property: • They want a tenant who will pay the rent on time. • They want a tenant who will act responsibly and care for the property. • They want an agent who is thorough and efficient. • They want an agent who charges reasonable fees. Landlords often go to agencies because they have experienced bad episodes with previous tenants they have handled. For example, perhaps the tenant didn't pay the rent or did a 'moonlight flit. The fact that you will take care of all of this for them is a very important sales point of this type of service. It is also important to note that some landlords may have suffered poor service from other letting agents in the past. such as the agent didn't find enough tenants, or didn't deal with any problems that arose. Again, emphasising the personal nature of your service is a very good selling point for your agency. Most letting agents provide landlords with some or all of three types of letting service. These are usually as follows: Service one: Finding tenants for a property, arranging the tenancy and supervising the moving-in process. Service two: As service one, but also providing a rent collection ser vice, collecting the rent from the tenant and paying it to the landlord each month. Service three: As Service one and two, but also managing the property. This includes inspecting it periodically, arranging for any repairs and dealing with any problems. As a new agency, you do not have to offer all these services. Simply offer as many or as few services as you feel confident about offering, and have the time for. If you decide to offer services two and three it is also a good idea to allow landlords to choose which level of service they require.

GR Phelps Ltd Training Manual – Page 11

Landlord Review Offering A Rent Assessment and Advisory Service In most cases your landlord will usually have a general idea of what rent they wish to charge for their property. However, this is often very much a 'guesstimate' and one reason landlords will use your service is to obtain a professional assessment as to how much rent is realistically achievable. Deciding on the most appropriate rent is very much a balancing act. If you can show a landlord that their suggested rent is too low they will be delighted. But they will also be pleased if you can show it is too high and, by reducing it slightly, can fill the property immediately rather than waiting several weeks to find a tenant. The rental value of any given property depends partly on: a) The type, size and quality of the property b) The area in which it is located. However it depends mainly on: The market level of rents actually being achieved for similar properties in that area. You can advise your landlords on the most appropriate rent by keeping a close eye on the levels of rent being achieved in your area and making direct comparisons where possible. The important figure to bear in mind is the rents being asked for properties which are actually let, i.e. not those which stand empty.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 12

Working With Tenants On the face of it, the requirements of the tenant are very simple - they require accommodation. However, it is important that you match the tenant with the type of accommodation most suitable to them. Not only does this keep the tenant and the landlord happy, but makes the whole process much simpler for you too. A good way of matching up tenants with properties effectively is to fill out a tenant profile sheet for every prospective tenant who registers with you. This not only looks very professional when the tenant first contacts you, but allows you to do the matching as quickly as possible. Remember tenants will no doubt be contacting other agencies at the same time, so it is important to do the job promptly with minimum fuss A sample Tenant Profile Sheet is given at the end of this course. Be Professional. Always answer the telephone in a professional manner, i.e. "Good morning ABC Lettings. How can I help your If you are operating from home don't let any 'home' noises like children or dogs be heard, since this will give a poor impression. When you have taken the tenant's details tell them that you will search your database or listing of available properties for the most suitable one. Aim to get back to them the same day with details of the proper ties that are available. This will minimise competition from properties offered by other letting agents. CHECKLIST Key Points Covered Landlords and tenants have different reasons for doing business with you, and are sold' by different benefits arid features of your service. You can offer some or all of three distinct letting services. Three Letting Agency Services To Offer As we have already covered, most letting agencies offer one or more of three distinct services. In this section we will study more details of exactly what service you offer at each level. Service One: Basic Letting Service This service includes finding tenants, arranging the tenancy and supervising the move. 1. The first task to undertake with this service is to visit and inspect the property. When approached by a prospective landlord, make an appointment to meet them at the property to be let. 2.Ensure that the property is in a ready-to-let condition, i.e. it is habitable, no repair work is required and it is furnished to an appropriate standard (where the landlord wishes to let part or fully furnished). Discuss the rent required, and the type of tenants preferred. If the landlord is a first- time landlord, ask if he or she has any questions or queries about letting their property. There is no charge for this service, and no hard sell should be used. 3. Complete a property survey sheet. This records details of the property and can be used to match it with the most suitable tenant. A sample property survey sheet is provided at the end of this lesson.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 13

4. Assuming that the prospective landlord decides to go ahead with the letting through your agency complete a management agreement document. This explains on what basis you will be handling the letting. A sample management agreement document is provided at the end of this lesson. Give a copy of this to your new client. 5. Advertise the property, using the methods we have already studied. This should produce a number of enquiries. You can then match ten ants and properties and make appointments for them to view the premises. NB. Viewings must be by appointment only, and you should always be accompanied. 6. When a prospective tenant expresses a firm interest in a property their suitability should be checked. Ask for references and verify them. The subject of taking and processing references was studied in lesson five. 7. Draw up the tenancy and have it signed by the landlord and the tenant. 8. Compile an inventory for the property, and have it checked and signed by the tenant at the time they move in. Refer to lesson five for more information on inventories. 9. Collect a bond from the tenant. This guards against non-payment of rent or any damage to the property. The amount of a bond should be agreed with the landlord and paid over to them. 10. Notify gas, electricity, telephone and water companies, and the local authority, that a new tenant is moving in. This can be done by letter or by telephone. Note that it is the tenants responsibility to contact the companies of their choice to arrange for the new services they require to be provided. Charges For Service One The usual charge for this service would be 50 per cent of the first month's rent or £200, whichever is the greatest. Example: Finding tenants for a 4 bed house rented at £606.00 pan. 50 per cent of £606 = £303. Service Two: Rent Collection Service For this service you will usually be carrying out the service provided in service one but also providing a rent collection service. However, you may be approached by some landlords who only require you to collect their rent. This is a good service to offer to landlords who do not wish to be seen as a 'rent collector.' It is also ideal for landlords who live out of the area or abroad. Whatever the situation, rents are collected each month and forwarded to the landlord, less your commission payable. If possible your tenants should pay their rent by standing order, direct from their bank account. M you have to do then is check to ensure that it is paid each month. However, some tenants who do not have bank accounts or who have their rent paid as housing benefit may pay in cash, which you can collect door to door. Housing Benefit: Where a tenant's rent is covered by housing benefit you can arrange to have this paid directly to you. In this case you should request a pretenancy determination from the local authority. This W show how much the local authority will pay for the tenant. The balance (if any) is payable by the tenant themselves Rental Accounts: When you forward the rents to the landlord you should GR Phelps Ltd Training Manual – Page 14

prepare a rental account for all their properties showing what has been paid, what has been deducted (commission etc.) and any amounts that are overdue. A sample rental account form is provided at the end of this course. Problems: If the tenant cannot/will not pay the rent then you should report the matter to the landlord. With this service you are not required to enforce payment of the rent unless the landlord wishes you to do so. This would be charged at extra cost. See later in the lesson for details. Charges For Service Two A reasonable charge for this service would be the set up fee as in service one, plus 7.5 per cent of all the monthly or annual rents collected. Example: Finding tenants for a two bedroom fiat rented at £346.00 pcm. 50 per cent of = £173, therefore a minimum of £200 charged. 7.5 per cent of monthly rentals collected is £25.95. Setup fee is £200+ (12 x £25.95) = £511.40. Service Three: Full Management Service As well as the duties carried out in service models one and two, a full management service requires you to look after' the property much the same as you would your own let property. With a full management service you should make regular inspections of the property on an agreed schedule (normally every 3 or 6 months) and report back to the landlord on the condition of the property and any maintenance or repairs needed to keep the property in good order. Then, If the landlord requires you to do so you should instruct appropriate tradesmen to carry them out (it is usual for letting agents to be able to organise minor but urgent repairs under approx. £1O0/ in value without consulting the landlord at all). Charges For Service Three A full maintenance service would normally cost the landlord 10-15 per cent of the annual rental charge, plus £200 for a re-letting charge as necessary. This is for providing the service and not carrying out the work. Example: Providing tenants for a 4 bed house with a rental of per calendar month. £606 x 15 per cent = £90.90. Annual fees are therefore £90.90 x 12 = £1 .090.80. All of these charging methods are attractive and acceptable to landlords because you only get paid when you find them a tenant. NB. These fee levels are based on instructions being given on ONE property. You may wish to give discounts to landlords who let several properties through you. Charges To Tenants As a letting agent you should note that under the Accommodation Agencies Act 1953, it is illegal to charge tenants simply for registering their requirements or Just showing them lists of accommodation, In addition to this it is, of course, a good selling point for your service that it is totally free to tenants, Tenants may be charged certain amounts In connection with preparing the lease and administering the tenancy. However, in most cases a let ting agent derives all their Income from the landlord, not the tenant.

GR Phelps Ltd Training Manual – Page 15

Property Letting: Administrative Procedures Use this checklist to help ensure that all tasks are completed when letting each new property. 1. Take full details of the tenant on the tenant profile sheet, if not already done. • Take references from the referees given by the tenant and process them. 2. If the references are satisfactory tell the landlord that you have obtained a suitable tenant and obtain his or her agreement to the letting. 3. When the landlord has agreed to the tenancy, make an official written offer, offering the tenancy to the tenant and outlining the terms. A sample letter which can be used for this purpose is provided at the end of this course. Also, obtain a deposit from them, this could be equivalent to the bond payable on the property. 4. Agree a date to transfer the property which suits the tenant, you and the landlord. Bear In mind when the current tenancy ends, if appropriate. 5. Inform local council and utilities that the occupant has changed as soon as you know the completion date (The new tenant must still contact them to take out a contract for service of the utilities they require). 6. On the day of the transfer: - Complete, sign and witness the tenancy agreement. 7. Obtain a month's rent in advance (this is in addition to the deposit). - Ensure utility meters are read where appropriate. 8. -Supply new tenant with an inventory and have them check/sign it. 9. Transfer keys to the property. 10. Send tenancy agreement to the Stamp Duty Office for stamping, where relevant, together with appropriate fee if any (See later for details). 11. Send the landlord a completion pack containing the following information •

A copy of your correspondence with the tenant, If any. –

•

Their copy of the tenancy agreement. –

•

Copies of references.

•

Details of the date when they will receive the rent, - An invoice for your service.

12. Pay the deposit/bond and the rentals (less your commission) to the landlord, ideally within seven days of them being received by you. Make sure payments are made promptly and keep the landlord informed at all times. This way they win continue to use your letting agency for many years to come. GR Phelps Edge: We can do all this for you.

GR Phelps Ltd Training Manual – Page 16

Important points for the letting agent Creating A Tenancy Creating a tenancy may seem complicated but, as we studied in the last lesson, it is not. You do not need a solicitor. Most properties will be let on an Assured Shorthold Tenancy agreement although there are other types. See lesson five for details. If the landlord has, or wishes to have, their own tenancy agreement created specifically for them then they can do this. However, the extra cost would be payable by them. Two copies of the tenancy agreement are required. One stays with the tenant. The other should go to the landlord. It is, however, useful to keep a copy for yourself. This should be a photocopy and not a third original Student Lets: If it is agreed that the property should be let on a shared house' basis to students then it Is usual for rent to be charged at 100 per cent for nine months of the year and at 50 per cent for the summer vacation period U. e. July 1 to September 30), in cases where the tenants take a 12 month tenancy. In this case, you would receive only 50 per cent of your usual fee in those months. This should not be considered a problem, since the rents for these properties are frequently higher than similar properties not occupied by students, and this compensates for any shortfall. Landlord Responsibilities Just as you must be fair and honest with landlords then it is important that landlords are always fair and honest with you. Stress to them the importance of this at your first meeting. The landlord must provide clear and correct information regard- big the owners or joint owners of the property to the agent. This has important implications for the security of tenure enjoyed by the client, i.e. you should ensure that no joint owners have a right of residence in the property. If the landlord has a mortgage secured on the property then they must obtain permission from the bank or building society who holds the mortgage in order to let it. The only exception is if they have a buy to let mortgage, which by definition infers that the property will be let. •

•

The landlord is responsible for the buildings insurance of the property. They should advise their insurance company that the property is to be let as this may affect the Insurance. To clarify these points, ask the landlord to sign a landlord's declaration. A sample wording for this document is given later. The landlord is required to keep the exterior and structure of the premises in good repair, and also keep the utilities in good repair. The exact nature of what must be done is normally stipulated in the lease, and not decided by the agent. Gas Safety Checks. As we studied in lesson five landlords are responsible for the annual testing of gas appliances in let property. They can either arrange this work themselves, or instruct you to arrange it.

If you arrange it all costs should be passed on to them. If they arrange it, you should ask for copies of the inspection documentation, although you are not legally required to have them. Whatever the arrangements, this work is always the landlord's responsibility legally, although as a responsible agent you should always ensure it is done

GR Phelps Ltd Training Manual – Page 17

Responsibilities Of The Letting Agent A letting agent should never accept responsibility, or be held responsible, for the actions of the tenant, i.e. that the tenant will care for the property properly, not cause any damage or fail to pay the rent. However, you should use your best endeavours to ensure that the property is used properly and kept in good condition, and inform the landlord immediately where this is not the case or where the rent falls into arrears. Should tenants cause damage to the fittings or fixtures, or if an item is lost or stolen, then the agent should arrange replacement and collect the cost from the tenant, but should advise the landlord of the situation and agree the cost with them before doing so. If the tenant leaves the property in a condition where it needs to be cleaned before it is re-let, then the agent should arrange this with a professional cleaning service and charge the cost to the tenant. Normally this can be deducted from their deposit. An agent does not normally agree to arrange repairs or rectify damage made before the agreement takes effect, or once the agreement has terminated. This includes after the last tenant has left if it is not intended to re-let the property. Repossession Of The Property Unless the landlord specifies that they require repossession of the property on a certain date, it is normally assumed that the agent will continue letting and re-letting the property on a continuous basis. In most situations, the tenant will rent the property on a shorthold tenancy basis (see lesson five). This entitles the landlord to legal repossession of the property at the end of the tenancy agreement. The landlord should state at the outset of the arrangement either: (i) When they win require repossession of the property, or (ii) The maximum period of tenancy to be granted at any one time. Should the tenant refuse to hand back the property at the end of the tenancy, fail to pay the rent or do anything else which causes the land lord to wish to terminate the tenancy then a court order must be sought to evict them, as studied in lesson five. The landlord may decide to handle this themselves, or they may wish the agency to handle it for them. If they wish you to handle this procedure for them then they will still be liable for all court fees, solicitor's fees and your fees for handling the procedure. It is possible to arrange insurance for landlords against the costs of obtaining repossession of a property in these cases. Being able to arrange such insurance can be an extra selling point for your agency. GR Phelps edge: We can manage all financial transactions, including lodging and management of deposits. A number of properties are let by landlords who are resident overseas (eg. expatriates, armed forces members, tax exiles etc.). You should always check whether the landlord is a resident overseas for tax purposes, as this has an important implication for income tax and for your agency. NB. Some landlords to whom this applies may spend considerable periods in the UK but may still be officially resident overseas for tax purposes so always check.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 18

If you know or suspect that the landlord is an overseas resident you must abide by the rules of the Non Resident Landlord's Tax Scheme. This scheme is operated by the Inland Revenue to ensure that non resident landlords pay any income tax which they are due to pay. In these circumstances, a landlord has two options: (i) He or she can either register Ms/her Interest as a landlord with the Inland Revenue and pay tax on his/her rental income direct to them. In this case, you can pay them their rental income gross. (ii) If he/she does not wish to do this then the letting agent must deduct a sum equal to the current basic rate of income tax, less deductible expenses, from any payments made to them and pay this to the Inland Revenue. If your agency deals with any non resident landlords then you should register to operate the Non Resident Landlord's Tax Scheme within 30 days of making your first payment to a non resident landlord. This is done by applying to The Centre for NonResidents using application form NRL4. You should note that it is an offence to handle lettings for a landlord who is either not registered with the Inland Revenue or where tax is not deducted from their payments and the Inland Revenue may hold the agent liable for payment of the tax even where they have not collected it. Exception: If you do not collect the rent or any other fees you do not need to operate this scheme. For more information and to register, contact: The Centre for Non- Residents, Unit 367k St. John House, Merton Road, Bootle, Mersey-side L69 9BB; Tel: 0151 472 6208; E-mail: non-residents@lnlandrevenue.gov.uk Stamp Duty & Leases When a tenancy is created, a copy of the lease must be stamped by the Stamp Duty Office of the Inland Revenue and a stamp duty or government tax paid on it where relevant. If this is not done, its provisions cannot be enforced in law should it be necessary, although the tenancy is still valid. As part of your service you should send off a copy of the tenancy to the relevant Stamp Duty Office within 30 days to be stamped, before forwarding the tenancy to the landlord. As is the case for stamp duty on property purchase, stamp duty on leases varies according to the amount of rent payable and is subject to periodic review. If a premium has been paid for the lease this is also taken into account when calculating the stamp duty. Most short and medium term lettings for domestic properties will qualify for stamp duty at zero per cent, one per cent or a fixed duty of ÂŁ5 depending on the length of the tenancy and the average rent. This expense can be passed on to the tenant. For more information on stamp duty, and to find the relevant office for your area, call 0845 603 0135. Website: www.inlandrevenue.gov.uk/so

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 19

Extra Profits For The Letting Agent When you set up a letting agency a number of other opportunities will be available, enabling you to offer extra services and generate extra profits. Here are some of the services you can offer: Management Of Communal Areas If you are handling the letting of property which comprises several flats within one building all owned by the same landlord, then you can provide management of the communal areas and generate an extra income. You can also offer this service to blocks of flats for which you do not act as the letting agent. This work involves the management and running of the communal areas such as any car park, gardens, corridors and stairways. It includes jobs such as parking control, gardening and grass cutting, cleaning, decorating and maintenance, such as painting or changing light bulbs, and being on hand to deal with emergencies, such as breakins or lift repairs. Such a service is very easy to provide. Simply engage some suitable contractors, eg. gardeners or contract cleaners to carry out the work as necessary. Charge the cost of these services, plus extra for your time in organising them. A sum of £30- per hour is typical for such services. These charges are usually levied on tenants. However, they may be included in the rent in which case you will be paid by the landlord. Guaranteed Letting Schemes Guaranteed letting schemes can be very profitable for the letting agent. Guaranteed letting schemes operate on the basis that a landlord letting their own property cannot necessarily expect a property to be occupied by a paying tenant all the time. As tenants move in and out, there are bound to be periods when the property is not earning an income for the landlord. This can be a problem where the landlord is dependent on this income, I.e. to repay a mortgage! or if they are just small scale landlords. You can offer a guaranteed letting scheme to your landlords which promises that they will receive a minimum monthly income throughout the period you are handling the letting whether the property is occupied or not. This guaranteed income would normally be around 75 per cent of the annual rent achievable if the property was permanently occupied. Thus, if a flat can be let for £400 a month the annual rent would be £4,800. You might offer to pay the landlord £3,600 per year regardless of whether the flat is occupied or not. Many smaller landlords will find such a guarantee attractive. As a letting agent you make your profit from a guaranteed letting scheme by using your resources to ensure that the property is actually let for a period exceeding 75 per cent of the year This way, you stand to pocket 25 per cent of the annual rental (in the example given above, that's £1,200) as extra profit. Offering a guaranteed letting scheme involves an element of risk and may not be something which you wish to offer when you first start. However, once you are established and are confident that you can find plenty of tenants to rent particular types of property it can be very profitable. C

GR Phelps Ltd Training Manual – Page 20

Commercial Lettings You can offer a letting agency for commercial property. eg. offices, shops and factory units. This operates in exactly the same way as for residential lettings. Buying Agency Services A buying agency not only lets property for landlords but locates and arranges the purchase of property which is suitable for letting too. This service is ideal for offering to large scale landlords and serious investors who do not have the lime to locate and purchase suitable properties. For more information on the work of a buying agent refer to lesson two. GR Phelps Affiliate: If you appoint other companies or individuals as affiliates or associates you will receive an override commission on any revenue they may bring in. Please see www.grphelpsonline.com for more details.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 21

Useful documents Online links Copies of the many forms and the AST letting agreement contained in this guie are available to download from www.grphelpsonline.com under the Articles section ‘Letting newsletter’. Please register to get your free links to dozens of documents, articles and useful links. If you have any questions: info@grpheps.co.uk 0871 288 3834

GR Phelps Ltd Training Manual – Page 22

AGENCY AGREEMENT / 1 LETTING ONLY SERVICE 1. Providing a rental valuation of the property and giving advice as required. 2. Advertising as necessary, interviewing and selecting tenants, arranging/carrying out viewings. 3. Taking up references and credit checks as appropriate. 4. Advising on the transfer of gas, electricity, and telephone accounts. 5. Collecting the first advance rental and security deposit. 6. Drawing up a standard Assured Shorthold Tenancy Agreement and arranging signature by the tenant. If you require our Services beyond this point, please enquire about our Full Management Service. FEES Our fee for the Letting Only Service is ........................................... This fee is payable at the commencement of the tenancy and will be deducted from the monies received by us as your Agent as described above. Should the tenancy be brought short for any reason, no reimbursement shall be due. TERMS Whilst we shall use our best commercial judgement in the selection of tenants and the execution of our Service hereunder, we shall not under any circumstances be liable for nonpayment of rent or any other outcome of a tenancy or for any legal costs resulting therefrom. Insurance policies are recommended to cover such risks.

--------------------------------------------------------------------------------------------------------------I/we* confirm: 1) That I/we* wish to appoint you to act on my/our* behalf in accordance with this Agreement. 2) That I am/we are* the sole owner/joint owners* of the property appended below. 3) That I/we* have been advised of my/our* responsibilities for gas, furniture and fire, and electrical safety, and undertake to ensure compliance with the relevant legislation. * Delete as applicable

Full address of property to be Let: .................................................................................................................…....... ....................................................................................................................................... Signed: ....................................................................................................................................... ............................... Print Name/s: ................................................................................ Date: .................. (IF PROPERTY IS JOINTLY OWNED ALL PARTIES SHOULD SIGN)

Signed by or on behalf of Agent: ...............S.............……................. Date: ..............

GR Phelps Ltd Training Manual – Page 23

AGENCY AGREEMENT /2 Find a Tenant Service 1. Providing a rental valuation of the property and giving advice as required. 2. Advertising as necessary for the landlord to carry out viewings 3. Taking up references and credit checks as appropriate. Options 1. Collecting the first advance rental and security deposit. 2. Drawing up a standard Assured Shorthold Tenancy Agreement and arranging signature by the tenant. If you require our Services beyond this point, please enquire about our Full Management Service. FEES Our fee for the Letting Only Service is £49 + vat (£59) This fee is payable at the commencement of the tenancy and will be deducted from the monies received by us as your Agent as described above. Should the tenancy be brought short for any reason, no reimbursement shall be due. TERMS Whilst we shall use our best commercial judgement in the selection of tenants and the execution of our Service hereunder, we shall not under any circumstances be liable for nonpayment of rent or any other outcome of a tenancy or for any legal costs resulting therefrom. Insurance policies are recommended to cover such risks.

Full address of property to be Let: .................................................................................................................….............. ................................................................................................................................... ................................................................................................................................... Signed: ....................................................................................................................................... ............................... Print Name/s: ................................................................................ Date: .................. (IF PROPERTY IS JOINTLY OWNED ALL PARTIES SHOULD SIGN)

Signed by or on behalf of Agent: ............................……................. Date: ..............

GR Phelps Ltd Training Manual – Page 24

TENANT ENQUIRY FORM REQUIREMENTS: No of bedrooms: …………………. Furn / Part / Unfurn: ………………………………… Area/s: ………………………………………………………………………………………… Other requirements: …………………………………………………………………………. Max rent: ………………………….. Move reqd by: ……………………………………….. APPLICANT DETAILS: Name: ……………………………... Occupation: ………………………………………….. Address: ………………………………………………………………………………………. Telephone: Work: ……..………… Home: ………..………… Other: …………………… Smokers: ………………………….. Children (ages): ………. Pets: …………………….. Total no of persons: ……………... Sexes and occupations of each: …..……………………………………………………….. NOTES Date of enquiry: ………………….. Origin (where heard of us): ………………………… Remarks: ……………………………………………………………………………………… Record of viewings: Date and time

Property

Result / Remarks

Continue overleaf if necessary

GR Phelps Ltd Training Manual – Page 25

TENANT APPLICATION FORM Please note: A copy of this form must be completed by each intended occupier over 18 years of age, and by any guarantor. Surname (Mr/Mrs/Ms):

First names:

Home Tel:

Work Tel:

Date of birth:

Present Address: Postcode: Owner/tenant/other (specify):

How long there:

Landlord/Agent:

Name:

Reason to leave:

Address: Postcode:

Tel:

Fax:

If less than 3 years at the above address: Previous Address: Postcode: Owner/tenant/other (specify):

How long there:

Landlord/Agent:

Name:

Reason to leave:

Address: Postcode:

Tel:

Current Employer:

Name:

Fax:

Address: Postcode:

Tel:

Position held: Date commenced:

Fax: Annual Salary:

Contact: Name:

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 26

Position:

If less than 2 years with current employer please give previous employer's details overleaf.

Page 1 of 2 Accountant if self-employed:

Name:

Address: Postcode:

Tel:

Your Bank:

Name:

Fax:

Branch Address: Sort Code: - -

A/c name:

Personal Referee:

Name:

A/c no:

Address: Postcode:

Tel:

Fax:

Occupation:

Relationship:

Time known:

General: Do you smoke?

Yes / No

Do you intend to keep any pets? If so please give details:

Yes / No

Will any children be living with you? If so please give ages:

Yes / No

Do you have a criminal record?

Yes / No

Have you ever had any County Court Judgements against yourself?

Yes / No

Have you ever been evicted from or asked to leave a property you were renting for any reason?

Yes / No

Declaration:

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 27

I declare that the information I have provided on this form is true and correct, and hereby authorise you to verify the details given and to seek references as required. I understand that this does not represent any offer or contract of any nature. I further understand that if you decline to offer me a tenancy no explanation will be given. Signed by Applicant:

Date:

Additional information may be included here:

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 28

Employee reference for letting purposes An Employer Address x x x Attn: The Personnel Officer Date PRIVATE AND CONFIDENTIAL Dear Re: (Name of applicant) The above-named, who we understand is employed by your Company, has applied to us for the tenancy of a property for which we are the Letting and Managing Agents. We would be grateful therefore, if you would provide us, in the strictest confidence, with a letter to include the following information 1. how long s/he has been employed by your company and in what capacity 2. his/her current salary 3. whether you can recommend him/her for our purposes. Thank you for your assistance in this matter. Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 29

Landlord reference

Prior Landlord Address x x x Date PRIVATE AND CONFIDENTIAL Dear Re: (Name of applicant) The above named, who we understand is currently renting / has recently rented accommodation from you, has applied to us for the tenancy of a property for which we are the Letting and Managing Agents. I should be grateful therefore, if you would be kind enough to complete the questionnaire below, tear off, and return it to us in the enclosed SAE. Your reply will of course be treated in the strictest confidence. Thank you for your cooperation in this matter. Yours sincerely,

CONFIDENTIAL QUESTIONNAIRE How much was / is the rent ?

£ ………

Have rental payments been regular and on time ?

Yes / No

Have the property and contents been treated with respect ?

Yes / No

Can you recommend the above-named as a tenant ?

Yes / No

Any other comments: Signed: ……………………………….. Print name: ……………………………… Date: …………………..

GR Phelps Ltd Training Manual – Page 30

Bank reference Applicant’s Bank plc Address x x x Date PRIVATE AND CONFIDENTIAL Dear Sir / Madam, Re: Applicant’s name and Account number The above-named has applied to us for the tenancy of a property for which we are the Letting and Managing Agents. The rental / her proportion of the rental will be £xxx per calendar month. I would be grateful therefore, if you will provide a reference to include your opinion of the applicant’s ability to meet this financial commitment, and reply to our bankers as below. The applicant’s signed authority is enclosed. Our Bankers and A/c details: Bank name: Branch address: Sort code: A/c name: A/c number: Thank you for your assistance in this matter. Yours faithfully,

GR Phelps Ltd Training Manual – Page 31

Guarantor letter Note: This is a legal document. Sign it only if you wish to be bound by its contents. If you are in any doubt you should first show it to a solicitor. To:

GUARANTEE (Please use capitals throughout) TENANT APPLICANT Full name: _________________________________________________________________ Address of property to be let:

GUARANTOR Full name: _________________________________________________________________ Home address:

Occupation: ________________________________________________________ Relationship to the above named applicant: _______________________________ DECLARATION BY GUARANTOR In consideration of a tenancy of the above property to be let being granted to the above named tenant applicant, I hereby agree to accept full liability for, and to discharge to you without undue delay all rental and any other lawful debt or liability which may be due or overdue for payment by the above-named applicant in respect of that applicantâ&#x20AC;&#x2122;s proposed tenancy of the said property. This is a continuing guarantee and security and my liability under it shall not be affected by your giving time or any other indulgence to the applicant. Signature of Guarantor: _________________________ Date: ________________ Notes: (Delete before printing) 1) The Guarantor should be fully referenced as though s/he were a tenant. 2) This document should be completed and signed in the presence of the landlord or landlord's agent.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 32

Tenant confirmation A Tenant Address x x x Date Dear Re: Your proposed tenancy of (Address of property) Following satisfactory replies to our reference enquiries, we are pleased to confirm our offer of a tenancy on the above property, subject only to contract. We would request therefore, that you telephone our offices to arrange a mutually convenient appointment with our consultant, to sign the tenancy agreement, and to pay over the necessary deposit and advance rental, at your earliest convenience. Please note that if you wish the tenancy to commence within 14 days, the abovementioned balance will need to be made in the form of cleared funds (i.e. no current account cheques). Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 33

Tenant decline letter A Tenant Address x x x Date

Dear Re: (Address of property) Following your recent application for a tenancy, we are now in receipt of replies to our reference enquiries. Unfortunately, after careful consideration, the information obtained leads our client to consider your application as unacceptable. We regret therefore that we are unable to proceed further with your application to rent the above property. Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 34

HOLDING DEPOSIT RECEIPT To:……………………………………………………… Date: ………………………….. Re proposed tenancy of:

Planned commencement date: ………………………………………………………….

First advance rental

Security deposit ** Admin fees @ £ p/p Total due Less Holding Deposit paid * Balance due

* The above balance must be paid in full before your tenancy starts in cleared funds, i.e. by bankers draft, building society savings account cheque, or cash. Current account bank cheques will not be accepted within 14 days of the tenancy start date. ** The Agency Admin fee is payable per person and covers the costs of referencing, credit checking, agreement preparation and ancillary costs. Conditions: 1. Payment of the Holding Deposit ensures that the above accommodation will not be offered to any other applicant by this company until after the above-entered planned commencement date. This is a NON-REFUNDABLE DEPOSIT and will be forfeit as liquidated damages in the event that you withdraw or otherwise fail to take up the tenancy by or on the above date. If, however, this Agency or the Landlord decline to grant the tenancy it will be refunded, less the Agency Admin fee/s. 2. The proposed tenancy is offered 'subject to contract' and is conditional upon: 1. The receipt of satisfactory references and/or guarantees 2. The receipt of cleared funds as above 3. The signing by all parties of the tenancy agreement.

GR Phelps Ltd Training Manual – Page 35

4. Particulars of the above accommodation and proposed tenancy have been described to you in good faith from information received, and no responsibility will be accepted for errors, omissions or mis-statements. To be completed by applicant/s: I understand and agree with the above terms and conditions and to pay the Agency Fee/s as shown. Signed: …………….…….. Name: ……………………. Date: …………………..

Signed: …………….…….. Print Name: ……………………. Date: ………………….. (All proposed tenant applicants to sign. Continue overleaf if necessary).

IMPORTANT: Once your tenancy start date is confirmed, you should contact the gas, electricity and telephone companies to arrange transfer of accounts to your name/s. Please bear in mind that at least three working days notice is required if the service is currently disconnected.

Telephone numbers: Gas: ………………… Electricity: …..…………….

GR Phelps Ltd Training Manual – Page 36

PROPERTY SUMMARY Address:

HEATING Type (gas, economy 7 etc) Make of boiler

Timer position

Themostat position

Timer position

Set-up instructions

WATER/PLUMBING Main stopcock position

Other stopcocks

Notes

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 37

ELECTRICITY Meter position

Fusebox position

Notes

GAS Meter position

Notes

OTHER SERVICES

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 38

Inventory form INVENTORY OF CONTENTS (and Schedule of Condition)

of:

Item

Page

Condition

Existing damage

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 39

Last page of Inventory of Contents (and Schedule of Condition)

of:

Notes:

Schedule of condition:

Ingoing check:

Outgoing check:

General remarks:

Gas meter reading:

Electricity meter reading:

This Inventory & Schedule of Condition checked and agreed at: on

Signed by the tenant/s:

Signed by the landlord’s agent:

Page

GR Phelps Ltd Training Manual – Page 40

Welcome letter A Tenant Property address x x x

Date

Dear Re: Your tenancy at the above address I enclose your copies of documents relating to your tenancy, including the agreement, the inventory, your financial statement, and a standing order form for rental payments. Please complete the standing order form, and pass it to your bank without delay. As you know, we are the managing agents for the property, and if you should have any queries about your tenancy, or if any maintenance or repair problems arise, please call us during office hours and we will do our best to help. Finally, I will take this opportunity to wish you a pleasant stay in your new home. Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 41

Overdue rent A Tenant Address x x x

Date

Dear IMPORTANT â&#x20AC;&#x201C; OVERDUE RENT Further to our telephone call of xxxxx it appears that your rent on the above property which was due on xxxxx, remains unpaid. This is perhaps an oversight on your part, but if further delays occur, it can become a very serious matter. Please therefore forward payment immediately to rectify the situation. If you have any problems in making payment as above, please telephone us to discuss the matter right away. Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 42

Overdue rent A Tenant x x x

Date Dear IMPORTANT â&#x20AC;&#x201C; OVERDUE RENT Having received no reply to our letter date xxx regarding your overdue rent, we write to advise you that if the arrears are not rectified immediately, our next course of action must be to issue a Notice under Section 21 of the Housing Act 1988 (as amended), REQUIRING REPOSSESSION OF THE PROPERTY. Please note that it is also our policy to take enforcement action to recover any arrears through the Courts. This will involve you in additional costs, and is likely to affect your ability to obtain credit, and to secure future rented accommodation. To avoid further action as above, you must contact us immediately to arrange payment of your arrears. Yours sincerely,

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 43

Checkout NOTES FOR TENANTS Your End of Tenancy Checkout - Handing back the Property In accordance with the terms of your tenancy agreement, you have two main obligations to consider when ending your tenancy: The property and contents should be handed back in the same condition as they were at the beginning of the tenancy, but allowing for normal wear and tear. The rent must be up to date, and all bills settled. The Checkout We will contact you in due course to make an appointment time for your checkout. This will need to be fixed for a time when you are literally ready to close the door and hand back the keys. During the checkout we will check the condition of the entire property and contents against the inventory, and record gas and electricity meter readings if relevant. The following notes are intended to help you prepare for the checkout, so that the event runs smoothly, and to minimise the risk of misunderstandings, deductions from your deposit, last minute problems or surprises: The Inventory It is a good idea to start your preparations now by running through your copy of the inventory to remind yourself about the contents and condition at the start of the tenancy, and to check for damaged or missing items. Normal Wear and Tear Please note that normal wear and tear does not include damage, nor excessive wear and tear. Preparing the Property and Contents All soft furnishings especially carpets, curtains and mattresses should be left clean, paying special attention to any heavy stains and marks if applicable. This may mean having carpets professionally cleaned, and curtains dry cleaned and pressed. All kitchen utensils, equipment and appliances should be cleaned, the fridge and freezer defrosted, food should be removed from all the cupboards and all hard surfaces should be washed down and cleaned, including the kitchen floor, which must not be 'sticky'. All bathroom/WC furniture and fittings should be thoroughly cleaned with a proprietory bathroom cleaner/disinfectant paying particular attention to any stains or marks. All the woodwork, skirting boards etc. should be washed down. Any linen, towels etc. should be laundered and pressed and left in the appropriate places. All items of furniture should be dusted, cleaned and left in the appropriate rooms. Page 1 of 2

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 44

All electrical goods and appliances, including light bulbs and any garden equipment should be in good working order. Gardens and patio should be free from weeds and lawns cut. No rubbish should be left on the premises, except in the wheeliebin. All sets of keys must be handed over. Internal keys for cupboards, windows etc. should be left in their locks. Final Bills You should contact the appropriate offices for telephone, water rates, and council tax and arrange for final bills. For gas and electricity it is generally easier to inform them of the final meter reading after the checkout. We will record these reading during the checkout. Mail Forwarding You should make arrangements with the Royal Mail. Viewings It is possible that we may contact you to arrange to show the property to prospective tenants. It is a condition of your tenancy agreement that you allow us to do so. However we will give reasonable notice, and endeavour to do so at your convenience. Return of Deposit Please note that your deposit will not be returned at the checkout. It will be refunded by company cheque sent by 1st class mail to your forwarding address normally within 24 hours. Where it is necessary for us to obtain estimates for replacements or remedial works, there may be a further delay, but we will endeavour to keep this to a minimum. Pre Checkout Visit It is our normal practice to carry out a pre-checkout visit to the property, about 2 weeks before you are due to leave. The purpose of this visit is to point out to you any particular areas which require your attention. Once the final checkout has taken place, you will not have access to the property, and therefore any remedial work will have to be carried out by contractors at your expense. This preliminary visit usually takes only a few minutes, and we will contact you shortly to make an appointment. We look forward to speaking to you shortly. In the meantime if you have any queries please do not hesitate to call during office hours.

Page 2 of 2

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 45

Notes

The Property Agent’s Guide to Selling Property

Training Manual: Property Agent Skills Confidential Must not be copied or distributed without written permission © GR Phelps Ltd 2012

GR Phelps Ltd Training Manual – Page 46

INTRODUCTION The goal of this short manual is to help you discover some of the secrets in property that the average person is not aware of. Knowing these secrets – or tricks – or inside scoop – whatever you want to call it, will give you that edge and turn you into a smart investor. You see, property is one activity where curiosity does NOT kill the cat. The more you’re curious about the business of selling and buying property, the better will be your grasp of the mysteries that only a select few have unravelled through their diligence and hard work. Many of them will not share these mysteries with you…because they’re worried that you might cut into their slice of the profit pie. Untold fortunes have been made in property; it would not be surprising if during the last 5-7 years, some ordinary mortals have become instant millionaires, thanks to the feverish upswing in the industry. The world of property has changed; people are now considering going into it as one of the sure fire ways to a golden future. So…we ask: how do they do it? For a few, it’s sheer luck, given the recent property boom; for most others, however, it’s that they have legal inside knowledge – the kind that outsiders are not privy to. Success coaches and motivators will tell you that to be successful in any endeavour – property included – you must get the TOTAL picture, not just half of it. You must get to know the TWO SIDES OF THE COIN, and discover a hidden third side, if there’s one. This insider’s guide to selling property guide therefore you provides guiding principles that you can tap to your advantage. You’ll get the whole piece of pie, not just a half-baked tart (no pun intended), the two to three sides of the coin, or both ends of the spectrum, if you will. So we searched far and wide to get into the minds of not only sellers but also buyers and property brokers. We’ll also throw in some facts on the financing options in property. This guide is organized into five sections: o Section 1:

Know your Buyers

o Section 2:

From Agent/Broker to Property Professional

o Section 3:

On the Prowl for the Hot Shots (valuable properties)

o Section 4:

Mistakes Sellers Often Commit

o Section 5:

Financing

You can, if you wish, read this guide from cover to cover; and for some readers, this will be the most valuable approach. However, if you’re already a little property savvy, you can easily jump to a particular category and glean the wisdom that you’re currently lacking. Furthermore, long after you’ve finished reading this guide (or reading sections that are relevant to your needs), this guide will serve you as an invaluable reference tool.

GR Phelps Ltd Training Manual – Page 47

We’ve searched behind the hype to uncover the guiding principles that drive success in property selling. Remember, please: markets boom and wane; certain types of properties (such as condos) can be hot one year, while rental properties can be hot in another. From a distance, property is one of the most dynamic and changing fields there is. Yet inside that change is a core wisdom that remains constant. Successful property sellers, from the millionaire in the car next to you as you drive, to Donald Trump, know what these principles are. And by the time you’ve finished reading this guide, you’ll know them too. And while, yes, the markets will always change, you’ll be confident, calm, focused, and it is our hope and expectation: financially successful!

GR Phelps Ltd Training Manual – Page 48

Property Sales: Know your buyers As you know, aside from food and clothing, shelter is a fundamental need. People need a roof over their heads, a place they can call home. Now, this may seem like obvious information and not important for us to think about, but really, itâ&#x20AC;&#x2122;s a very important thing to be aware of as you sell your property. Why? Because this awareness points to one essential fact that should give you an ENORMOUS amount of confidence; especially if this is going to be your very first (of many!) property sales transactions: there will always be people looking for houses, regardless of whether we live in good times or bad. Knowing the types of buyers in the market will help your position as a seller!

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 49

The Buyer Pool So who are these buyers that are poised to do business with you? They are people in your buyer pool. The phrase “buyer pool” refers to those people who are interested in buying a certain piece of property in a certain location at a certain price. This is the group that you, as a seller, should focus on. The buyer pool is different from the bunch of mere onlookers or “prowlers” who like to spend Sunday afternoons looking into the homes of other people. As you gain experience in this field, you’ll almost instantly be able to tell the genuine buyers from the speculators (or the people who are just bored and like looking at property…and yes, there are some of them out there). Bill Effros, in his great book How to Sell Your Home in 5 Days, says the profile of a buyer pool will change constantly. Some buyers may decide eventually to purchase a home elsewhere, some get frustrated and leave the pool; still others decide they want to buy and therefore stay in the pool.1 The buyer pool is made up of different types of buyers – bear in mind that some buyers are looking for homes NOT to live in, but to invest in. You will typically encounter a mix of the following types of buyers:  End buyers: buyers who will live in the home.  Professional buyers – these include property brokers, builders who want to develop property in your location, speculators (quick cash wheelers and dealers) and developers looking to buy strictly for the land value. Effros says not to be afraid of professional buyers. If circumstances warrant, they could offer the best price for your house, given their cash reserves.  Cash buyers – this is the group to whom you can consider giving a discount because you do away with the lending and mortgage nitty gritty that could take weeks, even months. Cash is king, so flexibility in negotiating price is not a bad idea.  Mortgage buyers – since majority of people can’t buy homes for cash, they borrow the funds to acquire possession of a piece of property. They fall into two groups: 1. the pre-qualified ones (those who have started the process and have discussed preliminary details with the bank); 2. pre-approved mortgage buyers (the bank has made a commitment to lend them a specific amount of money under certain terms and conditions).2

Bill Effros. How to Sell Your Home in 5 Days. Workman Publishing, New York, 1998.

Bill Effros. How to Sell Your Home in 5 Days. Workman Publishing, New York, 1998. GR Phelps Ltd Training Manual – Page 50

The Buyer’s Perspective Selling your house quickly and successfully requires that you see a piece of property through a “buyer’s eyes”. How do you do this? Well, put yourself in the buyer’s shoes. What does he/she see about your house that you haven’t noticed yourself? One property broker said that a trick she’s learned in getting sellers to think “out of the box” is to take them across the street from their house, and then asks them to give their house a long hard look, and spot things they’ve never noticed before. When this exercise is done, she then takes them on a detailed tour of their house: front yard, back yard, side alleys, garage, bathrooms, the whole look-see. This way, they come up with a list of repair jobs that need to be done before they can even think of putting their house on the market.

GR Phelps Ltd Training Manual – Page 51

What Buyer’s Look For What do buyers look for in terms of the house itself? Many agree that location is a decisive factor, but so are tangibles like the price and condition of the property (is the price worth the additional huge sums of money to put this house back into mint condition? How much time will I need to renovate the dilapidated portions of this house?). Buyers will be on the alert for the following: Start with the outside of the house and ask yourself the following questions – because these are the questions that your potential buyer will be asking!:  Do these dustbins, discarded wood scraps and building materials strewn about carelessly an indication of the seller’s negligence?  Are the gutters and roof in place? When was the last time the seller changed the roof?  Apart from the human occupants of the house, are there termites and other insects that live here also?  These overgrown bushes and trees are distracting. What is it that the sellers don’t want us to see?  Is the lawn is looking unhealthy? Is the rest of the house like that?  Have the patios and decks been converted into storage areas? Why can’t we see what they actually look like?  The paint is peeling off; is that why the house looks so drab and uninviting?  Why are there no lights outside the house? Is this the owner’s way of saving on utility bills? Is this a safe neighbourhood? The above questions are just a few of the many questions buyers are likely to ask with respect to the outside of the house. A house’s exterior constitutes the buyer’s first impression. And we all know what they say about first impressions – they are powerful and outweigh other considerations!3 Now let’s look at the inside the house: what are buyers looking at? Barb Schwarz advises sellers to be guided by the 3 C’s in property: 1. cleanliness 2. clutter 3. colour These three are self-explanatory, yet many sellers overlook the fact that buyers have fixed ideas about what makes a house clean, bright and uncluttered. Don’t take clutter for granted. Clutter is a big turnoff. Too many objects lying around the house collect dust, and when you have an open house and the sun is streaking in through those large windows, the dust becomes very conspicuous. Schwarz explains: “Clutter makes it difficult for a purchaser to mentally move into a home”. This means that purchasers have a hard time imagining where their sofas

Barb Schwarz. How to List Residential Estate Successfully. Prentice Hall, New Jersey. 1991. GR Phelps Ltd Training Manual – Page 52

and entertainment centers will be placed because the clutter is hampering visualization. This is what Schwarz tells her clients: “the way you live in a home and the way you sell a home are two different things”. This is just her way of saying that some clutter does give a home a lived-in feeling, but too much is too much and makes buyers very, very nervous.

GR Phelps Ltd Training Manual – Page 53

Respect Your Buyers’ Intelligence! Never underestimate the intelligence of buyers even if they strike you as inexperienced, first time buyers. Since governments have stepped into the domain of property, they are now warning home buyers about potential environmental dangers lurking inside houses. So what aspects of home buying are governed by regulations? Ilyce Glink warns that most professional house inspectors are not qualified to do special tests for toxic substances, although more and more individuals are specializing in these types of home testing.4 

Radon – the US government reported in 1989 that radon was the cause of 22,000 deaths per year and that it is the second leading cause of lung cancer in the US after cigarette smoking. Radon is an odourless, natural gas that comes from the earth and seeps through cracks in the house or its foundation.



Asbestos – Glink says that if your home was built after 1980, there is no need to worry about asbestos. This is a microscopic fiber that escapes to the air and is ingested by humans through their noses and mouths. Buyers who have lingering fears about asbestos may demand a written report stating that the house is asbestos-free.



Lead – Paints and water can contain high levels of lead that are harmful, particularly to children. Their physical and mental development is affected when they are exposed to this substance. Lead paint and lead in water are usually found in older homes (pre 70’s). Pipes in older homes for example that were soldered together with lead can transmit lead particles into the water system.

Ilyce R. Glink. 100 Questions Every Home Seller Should Ask. Times Books (Random House). USA. 1995. GR Phelps Ltd Training Manual – Page 54

Property Sales 2: Be a professional If your goal is to sell your house at well over the price you asked for and for the whole transaction to be hassle-free from A to Z, then perhaps you should start thinking like a property broker or agent. During times when the real market is rollicking to new, unimaginable heights, and you hear of brokers pocketing enormous amounts of commissions and fees making them millionaires overnight, you’d like to know, deep down in your heart, what makes them tick. This new crop of wealth builders is making everyone envious, including you. And here you are – all you really want is to learn the tricks to sell your house successfully. Learn from the pros. What makes the pros stand out and the mediocre drop out later in the game? Get inside the mind of the property professional and think like him. Who knows, after you do sell your house successfully, you may decide to be a broker yourself, having learned the pitfalls and felt the glory of just this one deal. Tom Hopkins talks about the true professionals: “Professionals are highly goal-oriented. They strive for a certain number of homes listed and sold each month, a certain income, a trophy, or an award. They know exactly what they’re looking for and when they’ll achieve it…you see, the successful ones, the true professionals, begin where the failures stop. They do what the failures are afraid or too lazy to do.”5

Tom Hopkins, Mastering the Art of Selling Property. Penguin Group. USA. 2004. GR Phelps Ltd Training Manual – Page 55

Attitude is Everything! A positive attitude tops the list of characteristics that real estate professionals live by. When the world comes crumbling down, as in a depressed property cycle, they look at downturns as an opportunity and maximise on that opportunity. Professionals make every effort to let their image speak for their success: The trappings of success must convey your competence in the field. Do your car, briefcase, desk and office communicate a successful business career? Professionals have an organised and efficient follow-up system. Their success at closing deals depends on returning calls, prioritizing appointments, punctuality and integrity. This is the only way people will entrust the sale of their homes to them. The client’s comfort level is important to a professional - an element he never takes for granted. A property professional stays in tune. He reads the classified ads religiously, and makes it his business to know what’s going on. His networking skills are above average, he attends the latest seminars, nurtures close relationships with people who are directly or indirectly connected to the property industry: 

Contractors



Builders



Developers



Bankers



insurance companies



settlement agents



trustees



other brokers

Reach out and see people. Hopkins says: “There are literally thousands of people in your area who need and deserve professional assistance with their property needs. If you don’t take it to them, they might be short-changed by someone less professional. The more people you can meet, the more you can serve.” 6

Tom Hopkins. GR Phelps Ltd Training Manual – Page 56

The Steps to Being a Professional Successful property selling is based on being well-informed about the hidden strategies of the trade. If you do decide that you want to be a property professional – a profession that will most likely bring you into the inner sanctum of the cult, how do you get started? Apart from taking the usual course and getting licensed, Tom Hopkins believes you should take the following steps:  Have a professional photograph taken. Clients like to put a face to the name, especially the person they picked to sell their house.  Get a cell phone with voice mail. This is indispensable, if you want to return calls promptly.  Purchase a good computer with a high processor capacity, and get your hands on software such as ACT!, Goldmine or Top Producer.  Get email. Who doesn’t need an email address these days? Surveys show that less than 6% of property agents with email check their mail twice a day. Be ahead of the pack.  Get Internet – be familiar with thousands of resources dedicated to the property industry: industry news, training opportunities, public records, lead generation, etc. Be sure you have Mapquest (you don’t want to waste time figuring out how to get to a particular address).  Have a digital camera handy. You’ll want to produce quality photographs of the properties you’re selling. And don’t forget to have business cards printed.

GR Phelps Ltd Training Manual – Page 57

About Doubts… Some individuals have doubts about a property professional’s competence when they’re just starting out. Experience is, after all, the old reliable – in any profession, not just in property. But the true, beginning professionals don’t let this long-held belief discourage them. They are usually able to demonstrate, quite skilfully, that they are the hungriest and the most willing to do whatever it takes to sell a house. Enthusiasm and zeal go a long way – two traits that older professionals sometimes take for granted because they’ve been in the business long enough to develop a subtle smugness.

GR Phelps Ltd Training Manual – Page 58

Property Sales: Finding properties “Hot shots” is the name given to jackpot properties that every person who dabbles in property part time or full time watches out for. They keep their eyes and ears open to potential deals and jump at the first opportunity as soon as they know that the jackpot property is in the market. Their gut instincts tell them that this property will generate handsome dividends if the deal is handled properly.

Separating the Good from the Bad Being able to discern the difference between a good and bad piece of property usually comes with insider knowledge and long years of active duty in the property battlefield. One writer calls property an emotional business. One manifestation of this is that buyers are easily swayed by the appearance of the building or its fantastic location. But Tyler Hicks says that “buying the wrong property…can be a mistake. You really won’t be penalized for life. But you may have a few years of tight money. That’s why it’s important that every piece of property you buy be a good ‘fit’ for you.”7

Finding Hot Properties Be on the lookout for re-negotiated property deals, what Tyler calls the “property workouts”. These are deals where lenders, so as not to foreclose on a property, extend the term of the mortgage loan so that monthly payments and terms are easier for individuals. This is how the property pros lay their hands on properties about to be foreclosed because the property is being sold below market price. Want to have fun and get educated at the same time? Attend local property auctions. This is more for networking purposes and to get potential leads from others who make it a business to attend these auctions religiously. If one leading broker likes you, he/she may steer you to the right deals. Keep a roving eye on government assistance programs, specifically those geared towards affordable housing programs for seniors and low income families. As governments become more sensitive to the needs of aging populations, they establish housing priorities for those in most need. Remember that populations everywhere are aging! Seniors will be in a better position to demand more services, and housing is a top priority. Property professionals turn these opportunities into a gold mine because of easier financing terms. Another technique for zeroing in on jackpot properties is to explore tax foreclosure certificates. This is a good way of making money from good properties without actually owning the property. These certificates can be bought from local tax authorities for properties on which owners have not paid property taxes. Hicks points out, “Once you own one of these low-cost certificates, you have the right to wheel and deal to sell the property to others, take it over, or otherwise make

Tyler G. Hicks. How to Make Big Money in Property in the Tighter, Tougher 90’s Market. Prentice Hall. USA. 1992. GR Phelps Ltd Training Manual – Page 59

money from it. It’s another way to move in on jackpot properties with small cash outlays that can make you rich – soon!”8 Read your newspaper everyday and look for bargains. When sellers are on the point of giving up, they transfer their ad from the national paper to the community paper, as a last ditch effort. This is another area where you can tap another hot shot.

Leasing instead of Selling… Lease with option to buy: a lease option has a longer term than a straight option, usually running for as long as one year or longer. Some will even stretch to three years, depending on the whim of the seller. While your lease is ongoing, you can rent out the property and be in a positive cash flow. The second advantage is, the property is appreciating in value. If you have a long lease option, you can then sell the property for the highest price you can obtain. One last strategy for hot picks: be on the alert for long leases. Long leases will ensure that a property will be rented or leased for long periods of time, not just a year. Some commercial leases for example go for as long as 5 or 10 years. One example is the government. Take post offices as the best illustration. The government will usually rent space for post offices on a long term basis. If the property you are eyeing has government outlets like the post office, the automobile insurance board or the government-sponsored health centres, these buildings qualify as hot property!

LOCATION! You’ve heard about the three principal parameters in property? One - location, two location, and three - location. Take that with a capital “L”. One trick in looking for that pot of gold at the end of the rainbow is to buy the worst property in the best neighbourhood, NOT the best property in the worst neighbourhood. This is a cardinal rule that sophisticated inventors try never to break. Robert Allen gets the message across: “If you buy the worst property in the best neighbourhood, at least you have the chance to upgrade the property to match the standards of the neighbourhood, and your property value will increase. In a bad area, your property will only decline in value along with the rest of the neighbourhood. Remember, you’re buying a neighbourhood, not just a property.”9

A Model of Selling Success Robert Allen’s concentric circle theory makes for intelligent hunting for hot properties. The circle has a small circle in the middle called the “center.” The circles around it are identified as A, B, C, and D – A being closest to the center. The theory works this way: compare property to student housing. The nearer the student apartment is to campus, the higher the rent is and the lower the turnover is.

8 9

Tyler Hicks. Robert G. Allen. Nothing Down for the 90’s. Simon & Schuster. New York. 1990.

GR Phelps Ltd Training Manual – Page 60

That student apartment therefore – being in circle A is a good investment. The same applies to houses. Which neighbourhoods are nearer to centers of employment, education, shopping and conveniences? Try to hunt for properties in the A circle, and avoid those in the D area.

Introducing the Don’t Wanter Don’t-wanters are people who will give anything to sell their property, to be rid of it completely, and who cross their fingers every minute hoping a seller will buy their property. Because of this, they can be flexible as you want them to be. How many of them are don’t-wanters? “Even in extremely tight sellers’ markets, there are still plenty of don’t-wanters. Perhaps 5% of all sellers are willing to be flexible enough to be called don’t-wanters. Some new investors get discouraged early because they haven’t learned that 95% of the sellers are not flexible. They need to be dealing with the 5% who are don’t-wanters.”10

Robert G. Allen. GR Phelps Ltd Training Manual – Page 61

Property Sales 4: Common erros Here’s some very useful advice: don’t treat your property agent as Mr. or Ms. Know it All. They are not infallible! Believe it or not, they don’t know everything there is to know about property. They make mistakes, just like everyone. When an agent tells you to wait because your property will probably not sell these days, take her/his word with a grain of salt. Question motives!  Is she/he trying to get you to lower your price so she/he can sell it much quicker, thus pocketing the commission quicker?  Is she/he concentrating on other higher priced homes in the area and hence has no time for you? Sellers often make the mistake of believing their agents. One such seller was so disgusted because she/he allowed the agent to let her take her house off the listing. The agent kept telling her to wait some more. Three years later, her property was still unsold, and in her frustration, decided to go with another agent.

Investigate Credentials Once you’ve signed a contract with an agent that the house is exclusively hers to sell, you could be stuck with an inefficient agent for a long time. Before you sign on the dotted line, investigate your agent’s credentials. Ask for the names of other sellers she’s worked for, and where possible, speak to these past clients and ask them whether or not they were satisfied with her service. Check out qualifications, licence and board certifications. Some sellers make the mistake of engaging the services of an agent in a hurry because they’re eager to sell. As Gregory Lerch stressed, hire a property like you would an attorney or accountant. Try to distinguish the full time professionals from the part-timers – those who occasionally dabble in property, who get into the business of selling homes only when they need quick cash.11

Have Reports In-Hand Another mistake sellers make is not having written inspection reports to show to prospective buyers. The regulations about asbestos, radon and lead are fairly stringent and must follow governmental guidelines. Ensure that professional house inspectors have the capability – and certification – to do these tests.

Gregory Lerch. How to Sell Your Home When Homes Aren’t Selling. Betterway Publications, Inc. Virginia, USA. 1991. GR Phelps Ltd Training Manual – Page 62

Know the Rules… Sellers often decide to go solo without enlisting the help of an agent for the sole purpose of being able to save thousands of thousands in agent’s commissions. This is a legitimate reason. If you do decide to sell your house on your own, make sure you know the rules of the game like the back of your hand. Have it down pat. The second, even bigger mistake, is that some sellers don’t have the ability and understanding to know when to quit as independent sellers! If your house is still in the market for a year, even if other homes are selling like hotcakes in the neighbourhood, then it’s time to take a step back and see what you’re doing wrong. A property agent may be your alternative. According to Lerch, “market studies have shown that you can actually lose money when your home sits on the market for an extended period. Knowing that, your goal should be either to learn how to extend your optimum selling period or market your home so it sells within the time limits the market has dictated”.12

Be Zone Conscious If you don’t keep up with your city hall urban planners and engineers, you could be selling your house just before zoning adjustments are being implemented. These zoning adjustments could considerably increase the value of your property. Haste makes waste, they say. So keep your eyes and ears tuned to municipal changes that could enhance (or affect) your position as a seller.

Pricing Too High? Too Low? High and low pricing: sellers who like to make a killing price their property way too high, making it out of reach to buyers who are looking at similar properties in the same location. Don’t be priced out. Going to the other end of the spectrum, you’ll know that you priced your house too low when it’s bought the same or next day after you or your agent advertised it. It was “snatched” by someone else because it was way below market price. Obviously, you as seller will try to get the highest price you can get for your property so you start with a high price. The buyer, on the other hand, will offer the lowest possible price he can negotiate. So you start high and he starts low. This creates plenty of room to negotiate – the gray area that lies between the highest and lowest prices. This is where sellers can make the mistake of not demonstrating sufficient flexibility to the buyer! This is the reason there are high and low prices in property – what Albert Lowry called practising the give-and-take principle. “Such give-and-take is part of the bargaining process…It gives you both room to negotiate…As you and the buyer make proposals and counterproposals, you are inching closer to agreement…Then at some point one of you will yield no further.”13 Develop the extra sense to know when to stop negotiating.

Gregory Lerch. Albert J. Lowry. How You Can Become Financially Independent by Investing in Property. Simon & Schuster. New York. 1982. 13

GR Phelps Ltd Training Manual – Page 63

Some More Common Selling Mistakes Ilyce Glink names a few more mistakes sellers make:  Undefined motivation – are you selling your house because you want to or have to? Honesty in answering this question will affect your negotiation abilities. You might be sending the wrong messages to your agent or buyer. If you and your husband have mixed feelings, be sure you iron out your differences and reasons for selling before putting your house in the market.  Hanging around during open houses. If you have an agent, let her do the work. Don’t make buyers uncomfortable by your presence. They may want to ask the agent certain questions that they don’t necessarily want you to hear.  Pets and Odours – some buyers may not exactly be animal lovers; other buyers are turned off by cooking smells. Keep the pets invisible, and the smells at bay with air freshener.  Letting the house go stale – if your house has been on the ads too long, know when to pull it out. Don’t give buyers the chance to “suspect” something is wrong with your house. Take out the for sale sign and come back another time.  Timing: when sellers sell their house in hopes to buy another, they fail to recognize proper timing as an essential component of the property process. When their offer on the new house is accepted but there are no firm buyers for their old house, they are forced to apply for a bridge loan which can make them out of pocket for a few years. Wait until your house is sold, or at least wait before a firm offer is in your hands.  Mortgage payments: just because your house is sold does not mean you can skip mortgage payments. Make sure your mortgage payments are up to date until closing. When closing documents are drawn up, the lender will take any unpaid amounts and deduct them from any monies due to you. Check with your lawyer, escrow or title company officer.  Deposit money: there is no fixed standard practice regarding deposit money – sometimes called “earnest” money. Requiring a deposit from the buyer is simply the seller’s need for assurance that the buyer will buy the property and has the financing required to buy the property. When time and money are spent in the showing, negotiation and contract preparation procedures, the seller has to be compensated for lost opportunities to sell to someone else if the original committed buyer suddenly backs out of the deal. Don’t omit discussing this with your agent or settlement agent. It’s added protection for you as seller.

GR Phelps Ltd Training Manual – Page 64

CONCLUSION As we noted earlier in this guide, property is a very dynamic field; and that’s one of the reasons why some people are hesitant to explore it, and to exploit its profit potential. The way to overcome this obstacle, and to realize incredible profit in property selling, is to understand this dynamic field from the inside; that is, to know the tips, techniques, and strategies that turn ordinary property transactions into extraordinary ones. You, now, are one of the insiders. Thanks to this guide and your efforts, you possess information that millions of people simply don’t have access to. And you can take this information with you to your current property deal, and indeed, to your future ones as well. You now know the following keys:  Knowing your Buyers  Going from Agent to Professional  Finding HOT Properties  Avoiding Mistakes  Financing Success Use your new information wisely and professionally, and you’ll soon discover why people who enter the property selling game – and play it well – stay there for life. It’s fun, exciting, always interesting, and best of all: profitable if you’re an insider – and that’s what you are right now!!!

GR Phelps Ltd Training Manual – Page 65

Training Manual 3: Personal Marketing Confidential Must not be copied or distributed without written permission ÂŠ GR Phelps Ltd 2012 www.estate-agency-opportunity.co.uk

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 66

Personal Marketing Skills Our marketing philosophy is based on: 1. Personal service, credibility and trust 2. Organised persistence prospecting through database building, regular contact, referrals and networking 3. Partnership 4. Relationships and engagement 5. Involvement 6. Online connections 7. Referrals Marketing is essential about two things: Reach and timing. This is essential a way of developing business on a personal level that does not require large amounts of money spent on advertising, leaflets or online PPC ads such as Google. Instead it focuses on networking and referral building on a consistent and planned basis. Let’s consider this example, based around your business venture.. 1. First you make a list or collate a database of all your friends, family, contacts, old school friends, workmates, etc. etc. (Using Facebook or Linkedin is really good for this. Let’s imagine you get this list to around 500: a. 50 people you know quite well, typically Christmas card senders b. 150 people you now to talk to in the street c. 300 that you might have meet a few times or only online. 2. You contact them all at the rate of 5 a day by phone wherever possible, email if not, taking you 10 weeks altogether. Your top 50 you might well meet with socially to explain your new venture. 3. You do not try and SELL to them, but instead ask “Do you know anyone who might be interested in or looking for….” They almost certainly won’t straight away, so you send them some information or give them a card, as well as finding out what they do and taking their details and business card of course. 4. Once you have completed a first contact for all 500, you start again, this time focusing on something new but again only asking if they know anyone. 5. During this time, try and find them a referral and contact them personally with the details or tell them you have recommended. (If you want to get more referrals – give more first!). 6. Repeat…for ever. Interestingly, things really start to happen after the third contact, but most people never make it that far!

GR Phelps Ltd Training Manual – Page 67

Think of it this wayâ&#x20AC;Ś If you know 50 people and speak to them regularly and each of them have a similar 50 contacts, that is a network of 2,500 people at least. Consider also that when someone requires a service or change of supplier they may look online, in directories or (more likely) ask around. And, people are more likely to take the advice of someone they know, like and trust than a name off a website.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 68

Business networking Business networking tips and techniques for networking events and networking websites Business networking is an effective low-cost marketing method for developing sales opportunities and contacts, based on referrals and introductions - either face-to-face at meetings and gatherings, or by other contact methods such as phone, email, and increasingly social and business networking websites. A business network of contacts is both a route to market for you, and a marketing method. Business networking offers a way to reach decision-makers which might otherwise be very difficult to engage with using conventional advertising methods. In addition, business networking brings with it the added advantage of recommendation and personal introduction, which are always very helpful for developing business opportunities. Business networking is a way for you to make the maxim, "It's not what you know, it's who you know.." work for you. The principles and techniques of business networking are mostly common sense. Many of the behavioural principles apply also to business and relationships generally, and specifically to selling, managing, coaching, facilitating, etc.

From 'net work' to network - introductory definitions and origins The word network is defined in the Oxford English Dictionary (2005 revised edition) as: "Network (noun) 1 An arrangement of intersecting horizontal and vertical lines... 2 A group or system of interconnected people or things... (verb) 1 Connect or operate with a network... 2 (often as noun networking) Interact with others to exchange information and develop professional or social contacts. Interestingly, the first definition above referring to a more general sense of a network, as might be used for a network of railways or a canal system, reminds that a network consists of connecting lines which run indifferent directions. Crucially a network especially a business network - ceases to be a network if there are no connecting lines. Creating and maintaining good lines of communications, in all directions, is as important as developing contacts. We could say instead that there is really no point developing contacts unless good lines of communications are established and maintained. The OED defines a networker as "...1 A person who operates from home or an external office via a computer network... 2 A person who uses a network of professional or social contacts to further their career." The first networker definition here originally referred to the use of a computer network, whereas nowadays the notion of working from home or elsewhere remotely has merged significantly with the more modern meaning of networking, in the sense of contacts and communications. The point is that while a computer is probably significant in most forms of home or remote working, what matters most these days is the networking itself (communications and relationships), rather than there being a specific dependence on a computer network.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 69

The 1922 OED explains that network entered the English language by 1560, simply from the words 'net work', which referred to the act or process of fabricating a net from threads or wires. These separated root words, 'net work', are very apt today. 'Net Work' remind us of the vital aspects of modern successful networking, by which ideally: 

we work (apply thought, commitment, effort)



to create, grow, use, assist and enable



our own net (network) of contacts.

A good network is created, and networking succeeds, by the application of hard work. 1A network without the work produces nothing worthwhile. Further useful points can be drawn from, and are explained in the more detailed origins and definitions of network and networking, which appear below.

Business networking - quick tips summary Here are ten of the most important principles for effective business networking. More details are linked from each tip to bigger explanations below. Consider that all sorts of professional people outside of the business community can also be very helpful networking contacts - for example, scientists, lecturers, educators, councillors, etc. When developing your networking plans, think beyond the people you'd typically see at other business networking events. Some of the most important connections are not business people, and consequently you need to be creative in reaching them. The examples of networking situations/methods below provides help with this later. These tips apply broadly to any sort of business networking - face-to-face, organized events, business social networking websites, etc:

GR Phelps Ltd Training Manual – Page 70

Ten essential principles 1. Elevator speech.

Describe yourself concisely and impressively.

2. Be different.

Differentiate yourself. Aim high. Be best at something.

3. Help others.

Help others and you will be helped.

4. Personal integrity.

Integrity, trust and reputation are vital for networking.

5. Relevant targeting.

Groups and contacts relevant to your aims and capabilities.

6. Plans and aims.

Plan your networking - and know what you want.

7. Follow up.

Following up meetings and referrals makes things happen.

8. Be positive.

Be a positive influence on everyone and everything.

9. Sustained focused effort.

Be focused - and ever-ready.

10. Life balance.

Being balanced and grounded builds assurance.

1. Describe yourself - elevator speech Use these principles also in text-based descriptions for the web and printed materials, etc. This is commonly called an 'elevator speech' or 'elevator pitch' - as if you were to meet a potentially important contact for the first time in an elevator at a conference and he/she asks you: "What do you do?" You have no more than 20 seconds perhaps just 10-15 seconds - between floors to explain, and to make such an impressive impact that the person asks for your contact details. If you talk (or write) too much, the listener (or reader) will become bored, or think you are rude or too self-centred. Be concise. You will demonstrate consideration and expertise by conveying your most relevant points in as short a time as possible. Here are the main points for creating your elevator speech:

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 71

1. your name

"My name is..." Look the other person in the eye. Smile. Shoulders back. Speak with confidence. Sincerity and passion are crucial in making a strong early impression.

2. your business name

"I work for..." or "My business is ..." Loud clear proud again. Do not ask "Have you heard of us..?" or wait for recognition.

3. based and covering where

"I am based..." and "I cover..." Adapt the town, city, geography for the situation. There is little value in mentioning a tiny village if you are at a global gathering, or your global coverage if you are at a local town gathering. Make this relevant to the situation.

4. your personal specialism and/or offering, and your aims

Be different and special and better in some way from your competitors. Be meaningful for the event or situation or group, and as far as you can guess, be meaningful for the contact. Express what you offer in terms of positive outcomes for those you help or supply, rather than focusing on technical details from your own viewpoint. Load your statements here with special benefits or qualities. Be positive, proud and ambitious in your thinking and expression of what you do. Include in this statement what your aims are, to show you have ambition and that you know what you are seeking from network contacts.

Depending on the situation, aim to complete your explanation in less than 20 seconds. Less is more: lots of powerful points in very few words make a much bigger impact than a lengthy statement. It is a sign of a good mind if you can convey a lot of relevant impressive information in a very short time. Conversely, a long rambling statement shows a lack of preparation, professionalism and experience. N.B. In some situations your speech may flow smoother by inverting points 3 and 4, or combining them. If your organizational structure is complex do not attempt to explain it. The other person is not interested in this level of detail now - they just need to know where you operate, and an indication of scale. While you are speaking look the other person in the eyes, and be aware of his/her body language to gauge for interest and reaction to you personally, and to help your assessment of the other person's character and mood. After your 'elevator speech' end in a firm, positive, constructive way. Ending with a question enables more to happen than letting the discussion tail off nowhere or into polite small-talk. Depending on the situation and visible reaction (again see body language for clues of interest) you can end in various ways, for example: "What's your interest here/at this event?" "What are you most wanting to get out of this event/your visit here?", or obviously if you've not already asked: "What do you do?" GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 72

If you already know the other person's interests and motives, for example ask: "How would you like to improve/change/grow... (various options, for example your own network, your own business activities, this sort of event, etc)?" After giving your elevator speech avoid the temptation to force your business card onto the other person (unless this is the tone and expectation of the event), and certainly do not launch a full-blooded sales pitch. 

Instead try to develop the discussion around what the other person wants to do, achieve, change, grow, etc.



And be on your guard for interruptions and sudden opportunities:



Many highly competent business people have a habit of interrupting and cutting short discussions when they see an opportunity.



This means you may not always finish your elevator speech, in which case allow the discussion to progress, rather than try to complete what you planned to say.



Be prepared at any time to respond effectively to an interruption like, "Okay, I get the picture - now what exactly do you need?.."

2. Be different and ambitious Developing or refine your offering so that it is strongly differentiated from what is already available in the market-place, whatever your market-place is. If there is no special difference between you and other providers, then people have no reason whatsoever to choose to work with you. Look again at how you describe your business offering (or yourself as a person) - what's different or special about it (or you) compared with all the others? If there is no difference, you must find a way to create one. Sometimes this is merely a matter of redefining or placing different emphasis on what you already are and already do. This difference must be something that plenty of people will find appealing; ideally irresistible. If you are struggling to find a difference or market advantage, look at your competitors and talk to your customers, and discover what's missing and what can be dramatically improved out there. There is always at least one thing, usually more perhaps you can bundle two or three powerful market advantages together. This difference needs to shine out in your elevator speech, and be echoed in your subsequent discussions whenever initial interest develops towards supplying something, or putting a collaborative project together. Aim high and big when thinking about and expressing yourself and your aims. Be realistic of course, but aim to be the best and to lead in some way, in whatever specialisms and market-place you operate. Your aims should also suggest what you are seeking from business networking - otherwise, there's no reason for you to be networking. Business networking is not simply finding customers in one-to-one meetings and connections; it's building a strong network, helpful for your aims. Accordingly project yourself as a great networker, as well as being a great supplier or specialist.

GR Phelps Ltd Training Manual – Page 73

Business networkers want to work with other networkers who aim high, who have great ambitions; people who see what can be, not merely what is; and who strive for change and improvement. These attitudes make things happen. When you meet like-minded networkers with these attitudes, your network will grow because they'll see you can make things happen too.

3. Help others - give before you receive 

Always prioritise helping and giving to others ahead of taking and receiving for yourself.



You must give in order to receive.



Be helpful to others and you will be helped in return.

Networks of people are highly complex - often it is not possible to see exactly how and why they are working for you, so you must trust that goodness is rewarded, even if the process is hidden and the effect takes a while. Use the principle of 'what goes around comes around'.You could think of this as Karma in business. A possible explanation of how Karma (or whatever you call it) produces positive outcomes is found in the rule of 'cause and effect', or the scientific law (loosely speaking) that 'every action has an equal reaction'. Good deeds and helpfulness tend to produce positive effects. They are usually remembered and often repaid. The giver builds reputation and trust. Referrals tend to result. Imagine yourself having lots of personal connections like this. You become known as a helpful person. Word about you spreads, and your reputation grows. People who give are seen to have strength to give. Followers gravitate to strong giving people. Helping others extends far beyond your personal specialism or line of work. Networking is about working within a system (of people) enabling relevant high quality introductions and cooperations, which get great results for the participants. These enabling capabilities transcend personal specialisms. Cybernetics provides one interesting and useful way to understand how best to approach this. In adapting cybernetics for business networking, the technique is twopronged: 

interpret (especially what people need and what will help them)



respond (in a way which those involved will find helpful)

At a simpler level, always try to ask helpful questions. These typically begin with 'what' and 'how', and address an area of interest to the other person, not you. Open questions (who, what, how, when, etc - also "Tell me about...") give the other person opportunity to speak and express their views and feelings: Ask people: "How can I help you?" "What can I do for you?" Closed questions (requiring a yes or no answer, or another single response, for example "Is this your first time here?") do not offer the other person much

GR Phelps Ltd Training Manual – Page 74

opportunity to talk, although at certain times a good relevant closed question can be vital for clarifying things: "Do you mean X or Y?" "Do you want to do X or would you prefer that I do it?" Be creative and constructive in how you regard others and how you might help them. Being defensive and making assumptions tends to limit options and growth. For example try to see your competitors as potential allies. There is a fine dividing line between the two behaviours, and positioning too many people/companies in the competitor camp can make life unnecessarily difficult. When you talk to your competitors you will often surprise yourselves at the opportunities to work together, in areas (service, territory, sector, application, etc) where you do not compete, and even possibly in areas where you do compete. This is particularly so for small businesses who can form strategic alliances with like-minded competitors to take a joint-offering to a market and compete for bigger contracts.

4. Keep your integrity - build trust and reputation 

Always keep your integrity.



Sometimes a situation arises which tempts us to do the wrong thing, causing harm or upset that could have been avoided.



Making such a mistake can damage personal integrity.

We are all human; mistakes happen. If you do make a mistake or wrong decision whether it significantly undermines your integrity or not - always admit it and apologise. Failing to apologise for wrong-doing often damages a person's integrity and reputation far more than the original misjudgment itself. We only need to think of how we view people in high and public authority, notably politicians, when they fail to take responsibility and admit their mistakes. Some integrity is lost. Do it a few times and all integrity is lost. People of low integrity sooner or later find that the only friends they have left are other people of low integrity. Significantly, integrity is vital for trust to develop. Trust is simply not possible without integrity. Building trust is essential for growing a strong business network and a lack of trust prevents successful business networking. Remember… 

Certain connections are absolutely impossible to make until a very high level of trust is established.



Empathy and effective listening greatly assist the process of building trust.

These qualities require you to be genuinely interested in others; to listen properly, and to reflect back meaningfully and helpfully. Following up (covered below) is also a vital feature of building trust and reputation. You will probably know a few very solid people who always keep their commitments, and who never make a commitment which they cannot keep. Aim to be like this. Reliability and dependability are highly valued qualities in relationships, especially relationships involving referrals and recommendations, because someone's reputation is at stake. GR Phelps Ltd Training Manual – Page 75

The words 'reliable' and 'dependable' do not mean that you are always available to everyone. These words mean simply that when you say you will do something you will do it.

5. Seek relevant groups and connections Identify and target groups and connections which are relevant to your aims and capabilities. Relevance can be according to several different things, for example:        

Geography Size Sector Social grouping (e.g., ethnic, gender, age, seniority, etc) Political or religious grouping Trade or society grouping Academic or technical grouping Other common interest (e.g., social enterprise, environmental, Fair Trade, etc)

The more relevant your targeting of groups and contacts, then more useful your meetings and referrals will be. Other professional people can be important networking contacts. Don't limit your targeting just to obvious business people. Certain non-business professional people can be hugely influential in networks, and greatly trusted because of their neutrality and professional standing - educators and scientists, for example. Journalists, surgeons, and magistrates, also. There are many others. It is not easy to make connections with these people through conventional business networking, but remember that a network is not only made of businesspeople, and be awake to these non-commercial connections when the chance comes. If you find that your networking is producing very low opportunities for follow up and referral, try to improve your targeting. Find different groups and methods, in other words. A true business network is a connected system of people within which referrals and opportunities can be passed through several connections, or circulated to all those connected. Networking thus can extend far beyond simply having lots of random one-to-one meetings. A given number of people who are connected for a reason will generally be more productive than the same number of random connections. So don't go aimlessly after every networking opportunity which comes your way; instead try to find networks which already function well or have the potential to do so; and consider and decide which sort of groups and contacts will be most helpful for your aims and capabilities - ideally remembering that you need to be able to help them, as well as they should be able to help you. Within most networks people tend to have a few close and trusted connections. Choose these, your most trusted and closest associates, very carefully. Reputations are built according to your chosen contacts, in addition to how you yourself behave. The old expression is generally true: "You can tell a man by the company he keeps..." (Or woman of course.) So focus your efforts on groups and connections of integrity, as well as relevance.

GR Phelps Ltd Training Manual – Page 76

6. Plan your networking - know what you want - manage it All projects need managing. Business networking is a project, and so it needs managing. You can use various tools to manage your networking. You must manage your networking, or it will manage you. Some people plan with shapes and connections on a big sheet of paper. Others prefer a spreadsheet. Use whatever you find comfortable. Be able to plan and monitor your networking activities. It is important to know exactly what you want, because you will be asked - very directly by powerful potential contacts - and you will need to give a clear answer. An activity which has no clear planned outcomes is liable to be pulled in all sorts of unwanted directions. As with any project, you will only move towards your aim when you keep focused on that aim. If you don't know what to plan, then probably some research is necessary: In terms of evaluating and choosing a potential networking group - especially a big online community - investigate the tactics that successful members are using. Ask a leading member for pointers. This will help you assess the group's relevance to your needs and strengths. You will save yourself from attending time-wasting events, and registering with timewasting websites, if you do some research before committing valuable time to deeper involvement. A plan is vital because business networking can be a very time-consuming activity. Have some targets and measurables, and monitor results. A structured approach can be especially important for very sociable networkers. Business networking can be a very enjoyable activity, and for some people can seem a lot more productive than it actually is, so stay mindful of business results and cost-effectiveness. Here is a simple example for planning and monitoring networking, which extends the elevator speech template above. Just use the headings as a guide if you prefer to work more intuitively, or if you favour a certain type of planning method.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 77

Networking planner example group 1

group 2

group 3

what is my aim? ideal connections (people) - describing words group name and type group profile/sector/interests (relevance to me) tactical group notes/tips - what works well? my elevator speech (for this group) what I can do for these people what do I want from these people? diary dates/scheduled tasks targets/expectations actuals time spent compare with my other marketing activities Obviously alter the box sizes to allow for whatever content you want to insert. The framework can be extended to manage specific follow-ups. The example above doesn't necessarily suggest you begin with three groups, or limit your business networking activities to three groups. A sensible start might be to pick one business networking website, and one face-toface business networking group or event, and see how you do before increasing the activity. As you will see from the sustained focused effort point, business networking works best when it is attacked in a concentrated way. If you take on too many groups and websites at the same time you will be spread too thinly, and find it difficult to make an impact in any of them. GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 78

7. Follow up your commitments and promises There are two main reasons for the importance of following up: 

Networking only produces good results when it is followed up.



Following up with contacts builds trust, reputation, and relationships.

Put negatively, to emphasise the points: 

Networkers who meet people and never follow up are wasting their time.



Networkers who never follow up will eventually become known as timewasters.

Follow up is a matter of relevance and commitment: If a contact or referral is not relevant, then say so, which avoids any expectation of follow up. If there is relevance, follow it up, in whatever way is appropriate for the situation. If you find that you are not wanting to follow up meetings and referrals because of lack of relevance then you can re-examine your group targeting strategy. You might be chasing the wrong groups and connections, and could need to redefine these issues.

8. Be a positive influence 

Be positive. Use positive language. Smile. See the good in people.



Be known as a really positive person. It rubs off on others and people will warm to you for being so.



Keep your emotional criticisms of others and personal hang-ups to yourself.



Speak ill of no-one.



Be passionate and enthusiastic, but not emotional or subjective.



Avoid personalising situations. Remain objective.



Seek feedback and criticism about yourself and your ideas from others. It is the most valuable market research you can obtain - and it's totally free.



Be tolerant. Be patient. Be calm and serene - especially when others become agitated.



Followers gather around people who remain positive and calm under pressure, and who resist the herding tendencies of weaker souls.

At many networking events and situations you will have the opportunity to give a presentation to the assembled group. This is a wonderful chance for you to demonstrate your expertise in your specialist area, your positive confident character, and also to pass on some useful information. When giving presentations in these circumstances, avoid giving a hard-selling pitch, unless you are sure that such a style is appropriate. Usually it is not. Aim to inform and educate rather than to sell. In many networking situations a strong selling presentation is regarded as insulting by those present. This is especially so if you are a guest of a group that you would not normally meet regularly.

GR Phelps Ltd Training Manual – Page 79

You will sell yourself best by giving helpful information in a professional and entertaining credible manner. Be confident, positive and enthusiastic, but do not let this develop into pressure on the audience, or a sense of your trying too hard. Try to find and present within your specialism the most helpful information for the group concerned. Your aim at the end of the presentation is for the audience to have learnt something useful about your area as it applies to them, and to have been impressed with your professionalism and command of your subject.

9. Apply sustained focused effort – organised persistence Business networking is a form of marketing. All forms of marketing benefit from strongly focused activity, which is necessary first: 

to create awareness, and then



to build relationships to the point when a sale can be made.

A given amount of effort will produce much greater results when applied consistently in a strongly focused way, than the same amount of effort spread over several wider activities, especially if spread over time too. This especially applies to business networking websites, where occasional light involvement has little impact, but focused continuous efforts can achieve a visible profile and build very many connections. The same principle applies to local networking clubs, where occasional participation rarely penetrates the usual inner core of members, but regular enthusiastic involvement inevitably gains attention. You should also be continuously open to unplanned networking opportunities, which can arise at any time. Business people are mostly normal human beings just like you. They have social lives, they travel, go to shops, sports events, restaurants, pubs, concerts, etc., and do lots of other things that you do too, quite outside of work. Paths can cross in the most unexpected places. You will find and develop connections in these unplanned situations if you:     

make eye-contact with people and smile take the initiative start conversations generally adopt an open friendly approach to everyone and always carry a pen and some business cards

Thereafter in all cases - planned and unplanned - much depends on what you offer to your connections - again see help others. Business networking clubs and websites are full of people with many connections but little of value to offer, and they achieve poor results. Good results come instead from being friendly and open, from taking the initiative, from working hard at sustaining genuinely helpful contributions wherever you meet people. In face-to-face networking clubs there is often a 'clique culture', in which members are defensive or sometimes seemingly arrogant. This often indicates a requirement to become known and trusted, which takes time and effort. (That said, if there is genuine arrogance, you would be sensible to find a different group.) GR Phelps Ltd Training Manual – Page 80

Business networking, like any other business activity, requires concentrated effort to produce results. If you treat networking like an occasional or purely social club it will not produce good business results. Business networking requires sustained effort to make things happen. Sustained focused effort does not mean delivering a full-blown sales pitch to every person you meet, and plastering your brochures all around the hotel lobby. Sustained focused effort also means working hard to become a regular active helpful presence in the group. Build relationships first, your reputation next, and referrals and introductions will follow.

10. Life balance A healthy balance in your life - of work, pleasure, business, social, etc - promotes and gives off a feeling of well-being, which is helpful for networking in many ways: 

you will be at ease and relaxed, and this transfers to others



you will be able to engage and respond in lots of ways with lots of people



your life balance will project confidence, which fosters confidence in others



you will demonstrate that you are in control of yourself and your business



people will buy or refer you as a person - not just your business specialism

This particularly applies to referrals and introductions, in which your character reflects directly on the person referring or introducing you. Being a balanced person enables low stress and a feeling of assurance, which are very useful characteristics in business networking situations, and particularly so if you have aspirations to become a leading member of any of the networks you aim to work with. Measuring or defining life balance is not easy, but we know it when we see it in others, and we respond to it. Having good life balance contributes directly to the level of faith people have in you. And crucially, life balance gives you the strength to absorb problems, to care for others, and maintain vital qualities like integrity, dependability, compassion and humanity. Conversely when our life slips out of balance for any reason, we have less to give. We have lower reserves of enthusiasm, energy, tolerance, understanding and consideration for others - all essential for growing and maintaining a successful business network. This prompts an incidental 'lifestyle' tip - for business networking events where alcohol might be available: drink in moderation and keep a reasonably clear head. This is not to say that you should reject all local customs where drinking is involved. In many social business events, including many foreign situations, drinking and eating are a very significant part of relationship-building. Use your judgment. Alcohol to a degree certainly helps many social processes, but taken to extremes tends to be counter-productive.

GR Phelps Ltd Training Manual – Page 81

Networking checklist 1.

What goes around comes around.. humankind can't yet explain this scientifically, but it does seem to work. Give to receive. Counter-intuitive to many people, nevertheless it's the fundamental ethos of business networking. Help others.

Use a helpful approach especially on business networking websites. Think: "What can I contribute to this community which people will find truly helpful?" And then work hard to extend that help whatever it is - to as many relevant people as possible.

Develop slightly different descriptions of yourself for different situations - so that you are as relevant as possible. As you work with these descriptions or 'elevator speeches', you will find that a series of mix-andmatch phrases take shape. Continue to refine and adapt these statements. Get feedback from people, and notice what works best, for different situations.

Be different to everyone else especially your competitors.

Always keep your integrity. Nothing destroys networking like lack of trust. Trust is based on knowing that the other person has integrity.

Ask people: "How can I help you?" and "What can I do for you?"

10. Try to see all your competitors as potential allies. There is often not much difference - just a frame of mind. This can be very significant if you are spending a lot of time looking over your shoulder at what your competitors are doing, and not concentrating on building your own business.

Understand and use facilitative questioning. See Buying Facilitation. The techniques use careful questions to help people clarify their choices and decisions easier. It's a powerful ethos applicable widely beyond selling.

11. Direct all your efforts to growing your own positive activities, and resist losing valuable energy and time and resources combating or worrying about the apparent successes or advantages of others.

Develop a concise and impressive description of who you are and what you do. Aim high. Think Big.

Develop a description of yourself and what you do as a written statement, and as a verbal statement (an 'elevator speech' or 'elevator pitch' - so called because it makes a successful impact in the time you share an elevator with someone who asks: "What do you do?").

12. Be positive. Use positive language. Smile. See the good in people. Be known as a really positive person. It rubs off on others and people will warm to you for being so. 13. Keep your emotional criticisms and personal hang-ups about others to yourself. If you hear someone being negative about another person, you will often wonder, "I wonder if he/she says that sort of thing about me too?.."

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 82

14. Some say it's bad Karma to speak ill of another. True or not, why risk it? Saying negative things at the expense of another person brings everyone down. This is the opposite of what business networking requires to succeed. 15. Be passionate and enthusiastic, but not emotional and subjective. Avoid personalising situations. Remain objective. 16. Seek feedback and criticism about yourself and your ideas from others. It is the most valuable market research you can obtain - and it's totally free. 17. Be tolerant, patient, and calm. Particularly when others are agitated. Followers gather around calm people. 18. Always carry a pen. Always carry a diary. Always carry your business cards. (Or modern electronic equivalents of all three..) 19. Drink less alcohol than everyone else around you, and if you cannot trust yourself to do this, do not drink alcohol at all. 20. Keep fit, or get fit, and then keep fit. Success and followers tend to gravitate towards people who take care of their bodies, as well as their thoughts and actions. 21. As soon as you can, create or have built a clean and clear website for yourself or your business. It is the ultimate universal calling card, brochure, and CV, all rolled into one, and perpetually available. 22. Only promise or offer what you can fully deliver and follow up. Always aim to under-promise, and then over-deliver.

23. Take great care with quick electronic messages (texts, messages, emails, etc) - you will be amazed at how many misunderstandings and breakdowns in relationships occur because a message is wrongly interpreted. Check and read twice everything you send. 24. Always follow up everything that you say you will do, however small the suggestion. 25. If you accept a referral or introduction to someone always follow it through. 26. Say "Thank you" to people whenever the opportunity arises especially to people who get taken for granted a lot. 27. Be interested in all people. Invest your time, attention and genuine understanding in them. 28. Understand what empathy really means, and practice it. Look people in the eyes. Listen with your eyes. This is about communicating at a deeper empathic level than business folk normally employ. Very many business discussions are superficial - like a game or a set of dance steps; instead make a determined effort to concentrate and care about the other person. Listen properly. 29. Find reasons to give positive feedback to people - give and mean it. 30. Stand up for what's right and protect less strong people from wrong, especially where you see bullying, cruelty, discrimination, meanness, etc. You will hear it everywhere when you step back and out of the crowd. 31. Networking is about building a wide and relevant network of

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 83

meaningful contacts - not just having lots of one-to-one meetings. Big strongly connected networks inevitably capture more opportunities than networks with lots of holes and weak connections. 32. Choose your most trusted and closest associates very carefully reputations are built according to the company you keep, beyond how you yourself behave. 33. Target groups and connections that are relevant - which fit your purposes, and you fit theirs. 34. Don't waste your time on groups and connections that lack integrity or relevance. 35. Recommendations reflect powerfully on the recommender, therefore: Recommend only those people you are confident will reflect well on you, and always ensure you reflect brilliantly and memorably on anyone who recommends you.

36. Seek and take opportunities to make a positive difference towards a positive aim (of anyone's) wherever you can even if some of these opportunities are unpaid and unrewarded in conventional terms. You will learn a lot, create new opportunities for yourself, and develop a reputation for producing good results out of nothing. This is a powerful personal characteristic which people find completely irresistible. 37. Be clear and realistic about what you want when you are asked. Have a plan. 38. Research the customs and expectations of foreign cultures before networking with foreign business-people. What is considered normal in your own part of the world could be quite inappropriate in another.

Your notes

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Page 84

Types of networking situations, events and methods There are many types of networking situations and methods. Far more than you might imagine. Most people tend to think only of the best known business networking clubs and websites, but business networking can be done virtually anywhere that you find business-people relevant to your aims and capabilities. This is important when you remember that other professional people outside of the business community can also be very helpful in networking (for example, scientists, lecturers, educators, councillors, etc.) Here are some of the main examples of situations and methods suitable for business networking, including specially organized business networking events, meetings, activities and systems. N.B. Many of these are not organized networking activities. Many of these networking situations are simply opportunities to meet people relevant to your aims, when your initiative and creativity can turn vague potential into worthwhile networking. For all networking opportunities, your success is dependent on the relevance of the situation and the quality and energy of your involvement. Brief pointers and tips are shown alongside each networking opportunity. Conferences

Conferences are full of people with common interests. Coffee breaks are an ideal time to make introductions.

Exhibitions

Exhibitions are obviously full of business people with a common interest. Most exhibitions rightly do not like visitors to canvass the exhibitors, but there are plenty of other situations to meet people and network.

Seminars

Seminars attract business people of all sorts. Again there are usually coffee breaks which are ideal for making introductions and getting to know people.

Training courses

Open training courses are excellent for meeting other business people. Many will encourage informal networking among delegates because this adds value to the quality of the event; certain types of training bring people together in work teams, making it extremely easy to get to know all attendees very well.

Chambers of Trade or Commerce

All towns have at least one 'chamber of commerce', specifically to bring local business-people together. Many run networking events and/or other meetings and activities which

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 85

are ideal for networking. Breakfast networking clubs

Several companies run regular breakfast networking clubs as their primary business. Other companies will run one-off events to connect with the local business community. These purpose-designed events obviously provide a good opportunity to engage with other business people.

Business networking Since the development of interactive website technology in the websites late 1990s there are increasing numbers of online business networking organizations. Each has its own culture and systems. Some are vast, covering all types of business imaginable, for example linkedin.com. Others are industry or trade specific, and some are geographically focused. All can be found quickly and easily by searching the web. Website forums

Website forums exist for every subject you can think of. Each offers a networking opportunity for the subject matter concerned.

Website user groups User groups are a further variation of groups found online. User groups are typically within the websites of major internet corporations such as Google and Yahoo. Many user groups are highly specialised, and by implication, internet networking is second-nature to most of these people. Professional body websites

Every profession and trade is represented and connected by at least one official body, which tends to act on behalf of its members, and also offers various opportunities for outsiders to get involved and make helpful connections.

Interactive special interest websites

Networking has been made much easier with the advent of interactive membership websites. When you have identified your target groups, there will be a specialist membership website somewhere which represents and brings them together.

Community social websites

Facebook is the obvious example. There are many others. Culture and demographic profile are different in each. Some of these websites and memberships are vast. Bigger than countries. This is because of the social aspect, which might initially be appealing, but making a business impact can be very challenging due to the scale of these operations.

Online/mobile

Twitter is the obvious example. New internet platforms like

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 86

communications applications

these can grow from nothing to be hugely popular social connection systems in just a few months. Business people can use them to good effect if approached in a very dedicated and technically informed way. Otherwise they can become big time-wasters, so beware.

Local networking events

Anyone can set up a networking event, so you can find isolated or more permanent networking operations cropping up at a town near you.

Speed networking events

Speed networking is a highly structured type of networking event, in which an organizer (there are several, of varying type and quality) coordinates quick introductions among a group of typically between 20-40 people. The concept is similar, and probably modelled on speed-dating formats.

Societies and associations

Every specialist subject has its own society or association. These organizations offer various ways to meet their members.

Institutes for industries

Every industry has its own institute or similar. Various events and methods generally exist by which outsiders can engage with the institute's membership.

Lectures and talks

Lectures and talks occur widely, held or promoted by various organizations for all sorts of purposes. Obviously a lecture/talk will attract a common grouping of people interested in the subject concerned.

Universities and colleges

Universities and colleges are like little towns in their own right. Some are like quite big towns. They are also now run like big businesses. These communities contain a vast number of very interesting people, many of whom are very relevant to business. For the past twenty years or so, these big educational establishments have been increasingly keen to engage with business people of all sorts. It's a matter of talking to them and discovering what opportunities exist for getting involved.

Hospitality events

Corporate hospitality events - a rarer thing in modern times are typically organized by big corporations to get to know their suppliers and customers better. If you find yourself involved in one of these it will present some of the best conditions for business networking that you will ever experience. Fill your boots, as they say.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 87

Shareholders meetings

If you have company shares, especially in a big corporation, you will tend to meet a lot of business people at shareholder gatherings. Many shareholders do not invest just for financial reasons - many invest because they have an enthusiasm for the company's technology or culture, which in some cases can offer a relevant target group for your business networking aims.

Annual General Meetings

AGMs are by their nature a regular occasion offered by corporations and membership organizations to engage with its members. Some are very formal and tightly run with little networking opportunities, but others are more sociable affairs, in which case if the group is relevant to your aims, and you can become a member it's worth consideration.

Conventions

Conventions are organized for all sorts of special interest groups. If the group is relevant to your aims in any way, then their convention could offer excellent networking opportunities.

Pressure groups

Pressure group meetings are strongly connected and usually attended by very active and energized people. If the subject is relevant to your aims there will be opportunities to meet some interesting people at this sort of event. These situations often also have scope for volunteering and becoming involved at a strategic level.

Public meetings

Public meetings are held for all sorts of reasons, for example local planning consultations; presentation of local development plans. These events attract business people, especially if the subject relates to commerce, as many will do. At meetings like these, most attendees sit and listen for quite a while, and consequently are ready for conversation during breaks and at the close of the meeting.

Product launches

Product launches invariably offer at least one situation when attendees stand and mingle together drinking tea/coffee. Some have receptions afterwards. If you are able to attend one of these events where the subject is relevant to your aims, then you will find opportunities to network. The same applies to book launches and similar publicity events.

Opening ceremonies

Opening ceremonies, especially for notable new buildings, attract many local business people and dignitaries. If the community concerned is relevant to your aims this sort of event can provide useful networking opportunities. The same applies to unveiling ceremonies, especially where there is a GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 88

reception afterwards. Festivals and shows Festivals are organized for many interests, and naturally attract a large group of people with related involvement, including business-people. Agricultural and county shows are a further example. If the subject is relevant, there'll be networking potential. Foreign trade visits

Local chambers of commerce, regional development agencies, and similar business bodies routinely organize trade missions and gatherings to promote international trade for their region and/or members. Such activities offer excellent networking scope.

Sports clubs

Lots of business people enjoy sport, and enjoy mixing sport with business. Golf is the stereotypical example for sports club networking, although all sports, and other special interest clubs, tend to have many business people in their membership. If the group is relevant to your aims and you enjoy the activity concerned, consider becoming a member yourself.

Other clubs

Clubs exists for every hobby and interest you can imagine. Instead of sitting at home watching the telly, join a local club that interests you, and meet some new interesting people.

Pubs

Not all pubs are good for networking, but some are great, because they are the regular haunts of local business-people. For a very long time indeed, lots of business has been done in pubs.

Trains, boats, planes, etc.

Business-people tend to travel around a bit. When you are travelling too, keep your eyes and ears open and be ready to start conversation. Delays are particularly useful for making introductions. So are long plane and train journeys when you could be sat next to another business person for several hours. Make the most of these opportunities.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 89

Introduction to professional selling These notes are included for those are not trained or familiar with the process of selling.

Prosecuting and approaching using AIDA AIDA is the original sales training acronym, from the late 1950s, when selling was first treated as a professional discipline, and sales training began. The model is said to have evolved from earlier work by American psychologists concerning assimilation and understanding of communications and information. Walter Dill Scott's 'AttentionComprehension-Understanding' model, developed by 1913 at the Chicago Northwestern University, is cited as one example of possible contributory thinking, although this is by no means a specific single origin; in fact it is unlikely that a specific single origin for AIDA actually exists. AIDA is perhaps more relevant and useful today than when it was first devised, because modern theories and distractions can often cause people to lose appreciation for the most basic and obvious features and requirements of a successful sales engagement. So, especially for those learning your trade in selling or advertising or communicating with prospective customers, if you remember just one sales or selling model, remember AIDA. Often called the 'Hierarchy of Effects', AIDA describes the basic process by which people become motivated to act on external stimulus, including the way that successful selling happens and sales are made. A - Attention I - Interest D - Desire A - Action The AIDA process also applies to any advertising or communication that aims to generate a response, and it provides a reliable template for the design of all sorts of marketing material. Simply, when we buy something we buy according to the AIDA process. So when we sell something we must sell go through the AIDA stages. Something first gets our attention; if it's relevant to us we are interested to learn or hear more about it. If the product or service then appears to closely match our needs and/or aspirations, and resources, particularly if it is special, unique, or rare, we begin to desire it. If we are prompted or stimulated to overcome our natural caution we may then become motivated or susceptible to taking action to buy. Some AIDA pointers:

Attention ď&#x201A;ˇ

Getting the other person's attention sets the tone: first impressions count , so smile - even on the phone because people can hear it in your voice - be happy (but not annoyingly so) be natural, honest and professional.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 90



If you're not in the mood to smile do some paperwork instead. If you rarely smile then get out of selling.



Getting attention is more difficult than it used to be, because people are less accessible, have less free time, and lots of competing distractions, so think about when it's best to call.



Gimmicks, tricks and crafty techniques don't work, because your prospective customers - like the rest of us - are irritated by hundreds of them every day.



If you are calling on the phone or meeting face-to-face you have about five seconds to attract attention, by which time the other person has formed their first impression of you.



Despite the time pressure, relax and enjoy it - expect mostly to be told 'no thanks' - but remember that every 'no' takes you closer to the next 'okay'.

Interest 

You now have maybe 5-15 seconds in which to create some interest.



Something begins to look interesting if it is relevant and potentially advantageous. This implies a lot:



The person you are approaching should have a potential need for your product or service or proposition (which implies that you or somebody else has established a target customer profile).



You must approach the other person at a suitable time (ie it's convenient, and that aspects of seasonality and other factors affecting timing have been taken into account)



You must empathise with and understand the other person's situation and issues, and be able to express yourself in their terms (ie talk their language).

Desire 

The sales person needs to be able to identify and agree the prospect's situation, needs, priorities and constraints on personal and organizational levels, through empathic questioning and interpretation.



You must build rapport and trust, and a preparedness in the prospect's mind to do business with you personally (thus dispelling the prospect's feelings of doubt or risk about your own integrity and ability).



You must understand your competitors' capabilities and your prospect's other options.



You must obviously understand your product (specification, options, features, advantages, and benefits), and particularly all relevance and implications for your prospect.



You must be able to present, explain and convey solutions with credibility and enthusiasm.



The key is being able to demonstrate how you, your own organization and your product will suitably, reliably and sustainably 'match' the prospect's needs identified and agreed, within all constraints.

GR Phelps Ltd Training Manual – Prospecting skills – Page 91



Creating desire is part skill and technique, and part behaviour and style. In modern selling and business, trust and relationship (the 'you' factor) are increasingly significant, as natural competitive development inexorably squeezes and reduces the opportunities for clear product advantage and uniqueness.

 Action 

Simply the conversion of potential into actuality, to achieve or move closer to whatever is the aim.



Natural inertia and caution often dictate that clear opportunities are not acted upon, particularly by purchasers of all sorts, so the sales person must suggest, or encourage agreement to move to complete the sale or move to the next stage.



The better the preceding three stages have been conducted, then the less emphasis is required for the action stage; in fact on a few rare occasions in the history of the universe, a sale is so well conducted that the prospect decides to take action without any encouragement at all.

However, getting in front of or to talk to the customer is only the start…

GR Phelps Ltd Training Manual – Prospecting skills – Page 92

The seven steps of the sale The Seven Steps of the Sale is the most common traditional structure used for explaining and training the selling process for the sales call or meeting, including what immediately precedes and follows it. This structure is usually represented as the Seven Steps of the Sale, but it can can be five, six, eight or more, depending whose training manual you're reading. This structure assumes that the appointment has been made, or in the instance of a cold-call, that the prospect has agreed to discuss things there and then. The process for appointment-making is a different one, which is shown later in this section. Aside from the questioning stage, this structure also applies to a sales visit which been arranged for the purpose of presenting products/services or a specific proposal following an invitation, earlier discussions or meetings. For these pre-arranged presentations it is assumed that the sales person has already been through the questioning stage at prior meetings. The Seven Steps of the Sale remains a helpful structure for sales and sales training, but do bear in mind that the concept is over forty years old. Customers are increasingly more knowledgeable and aware than some of these points might lead to you to believe.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 93

The seven steps of the sale The following principles apply mainly to consumer selling rather more complex or business to business selling. However, it is important to remember that nobody likes to sold to, but we all like buying. The best sales people ‘pull’ not push and base their entire approach around the customer. Instead of trying to sell, think of it as simply helping people to buy. The original commonly used Seven Steps terminology is in bold. In recent years more sophisticated interpretation and application of the Seven-Step selling process requires the model to be expanded and interpreted with more subtlety and flexibility, as shown here: 1. Preparation/planning/research/approach (using facilitative methods) 2. Introduction/opening/approach/establish initial credibility 3. Questioning/identify needs/ask how and what, etc/establish rapport and trust 4. Presentation/explanation/demonstration 5. Overcoming objections/negotiating/fine-tuning 6. Close/closing/agreement/commitment/confirmation 7. Follow-up/after-sales/fulfil/deliver/admin

GR Phelps Ltd Training Manual – Prospecting skills – Page 94

1. Planning and preparation 

Generally, the larger the prospect organization, the more research you should do before any sales call at which you will be expected, or are likely, to present you company's products or services.



ensure know your own product/service extremely well - especially features, advantages and benefits that will be relevant to the prospect you will be meeting



ascertain as far as you can the main or unique perceived organizational benefit that your product or service would give to your prospect



discover what current supply arrangements exist or are likely to exist for the product/service in question, and assess what the present supplier's reaction is likely to be if their business is at threat



understand what other competitors are able and likely to offer, and which ones are being considered if any



identify as many of the prospect organization's decision-makers and influencers as you can, and assess as much as far as you can what their needs, motives and relationships are



try to get a feel for what the organizational politics are



what are the prospect's organizational decision-making process and financial parameters (eg., budgets, year-end date)



what are your prospect's strategic issues, aims, priorities and problems, or if you can't discover these pre-meeting, what are they generally for the market sector in which the prospect operates?



prepare your opening statements and practice your sales presentation



prepare your presentation in the format in which you are to give it (e.g., MS Powerpoint slides for laptop or projected presentation) plus all materials, samples, hand-outs, brochures, etc., and always have spares - allow for more than the planned numbers as extra people often appear at the last minute see the presentation section for more detailed guidance on designing formal sales presentations



prepare a checklist of questions or headings that will ensure you gather all the information you need from the meeting



think carefully about what you want to get from the meeting and organise your planning to achieve it



understand and make the most of cold calling: despite the tendency for some organizations to position cold calling as a lowly de-skilled canvassing or enquiry-generation activity, cold calling increasingly enables sales people to become more strategic and significant in the sales function

GR Phelps Ltd Training Manual – Prospecting skills – Page 95

2. Introduction/opening (the seven steps of the sale 

smile - be professional, and take confidence from the fact that you are wellprepared



introduce yourself - first and last name, what your job is and the company you represent, and what the your company does (ensure this is orientated to appeal to the prospect's strategic issues)



set the scene - explain the purpose of your visit, again orientate around your prospect not yourself, eg "I'd like to learn about your situation and priorities in this area, and then if appropriate, to explain how we (your own company) approach these issues. Then if there looks as though there might be some common ground, to agree how we could move to the next stage."



ask how much time your prospect has and agree a time to finish



ask if it's okay to take notes (it's polite to ask - also, all business information is potentially sensitive, and asking shows you realise this)



ask if it's okay to start by asking a few questions or whether your prospect would prefer a quick overview of your own company first (this will depend on how strongly know and credible your own company is - if only a little you should plan to give a quick credibility-building overview in your introduction)

GR Phelps Ltd Training Manual – Prospecting skills – Page 96

3. Questioning (the seven steps of the sale 

while questioning is a vital aspect of selling, the principles and techniques of questioning are mostly transferable to other situations where questioning is essential for effective cooperation and relationships - these questioning guidelines therefore extend to applications beyond sales and selling



empathy and listening are crucial in questioning - understanding body language is useful too



a major purpose of questioning in the traditional selling process is to identify the strongest need or benefit perceived by the prospect relating to the product/service being offered by the seller



as the questioner you need also to understand very clearly what you are seeking from the relationship - questioning should aim to identify a mutual fit relationship work when theer is a good fit for both sides



buyers commonly have one main need or benefit, and a number of supporting needs/benefits



needs and benefits may be obvious to seller and buyer, or not obvious to either, in which case questioning expertise is critical in selling, as it is an all other relationships where motives and change are involved



questioning must also discover how best to develop the relationship and the sale with the organization - how the organization decides: timings, authority levels, the people and procedures involved, competitor pressures, etc.



good empathic questioning also builds relationships, trust and rapport nobody wants to buy anything from a sales person who's only interested in their own product or company - we all want to buy from somebody who gives the time and skill to interpreting and properly meeting our own personal needs



to be professional in your approach you should prepare a list of questions or headings before the discussion



aside from complex variations, there are two main sorts of questions: open questions and closed questions



broadly open questions gather information and build rapport; closed questions filter, qualify and seek commitment



open questions invite the other person to give long answers; closed questions invite the other person to say yes or no, or to select from (usually two) options, for example red or blue, or mornings or afternoons, etc



use open questions to gather information - typically for example, questions beginning with Who? What? Why? Where? When? and How?



when training or learning the skills of using open questions it helps to refer to the Rudyard Kipling rhyme: "I keep six honest serving men, They taught me all I knew; Their names are What and Why and When, And How and Where and Who.." This is from Just So Stories, 1902, The Elephant's Child - see other useful and amusing training quotes and maxims.)



use "Can you tell me about how..." if you are questioning a senior-level contact - generally the more senior the contact, the bigger the open questions GR Phelps Ltd Training Manual – Prospecting skills – Page 97

you can ask, and the more the other person will be comfortable and able to give you the information you need in a big explanation 

'what...? and 'how...?' are the best words to use in open questions because they provoke thinking and responses about facts and feelings in a nonthreatening way



use 'why?' to find out reasons and motives beneath the initial answers given, but be very careful and sparing in using 'why' because the word 'why?' is threatening to many people - it causes the other person to feel they have to defend or justify themselves, and as such will not bring out the true situation and feelings, especially in early discussions with people when trust and rapport is at a low level



listen carefully and empathically, maintain good eye-contact, understand, and show that you understand - especially understand what is meant and felt, not just what is said, particularly when you probe motives and personal aspects



interpret and reflect back and confirm you have understood what is being explained, and if relevant the feelings behind it



use closed questions to qualify and confirm your interpretation - a closed question is one that can be answered with a yes or no, eg., "Do you mean that when this type of equipment goes down then all production ceases?", or "Are you saying that if a new contract is not put in place by end-March then the existing one automatically renews for another year?"



when you've asked a question, you must then be quiet - do not interrupt allow the other person time and freedom to answer



the other person (your 'prospect' in selling language) should be doing 80-99% of the talking during this stage of the sales discussion; if you are talking for a third or half of the time you are not asking the right sort of questions



do not jump onto an opportunity and start explaining how you can solve the problem until you have asked all your questions and gathered all the information you need (in any event you should never be seen to 'jump' onto any issue)



all the time try to find out the strategic issues affected or implicated by the product/service in question - these are where the ultimate decision-making and buying motives lie



if during the questioning you think of a new important question to ask note it down or you'll probably forget it



when you have all the information you need, acknowledge the fact and say thanks, then take a few moments to think about, discuss and summarise the key issues/requirements/priorities from your prospect's organizational (and personal if applicable) perspective



questioning is traditionally treated by conventional sales people and conventional sales training as a process to gather information to assist the sales person's process, and this is how it is typically positioned in the old-style 'Seven Steps of the Sale'; however, modern sales methodology treats questioning in a radically different way - as an essential part of a facilitative GR Phelps Ltd Training Manual – Prospecting skills – Page 98

process whose purpose is to help the buyer decide (see the information about collaborative selling and buying facilitation for more explanation) 

questioning is a fundamentally important part of selling - techniques being increasingly developed and refined far beyond early selling techniques transferable to and from other disciplines (notably coaching, counselling, therapy, etc)

GR Phelps Ltd Training Manual – Prospecting skills – Page 99

4. Presentation 

the sales presentation should focus on a central proposition, which should be the unique perceived benefit that the prospect gains from the product/service



during the questioning phase the sales person will have refined the understanding (and ideally gained agreement) as to what this is - the presentation must now focus on 'matching' the benefits of the product with the needs of the prospect so that the prospect is entirely satisfied that the proposition



the sales person therefore needs an excellent understanding of the many different organizational benefits that accrue to customers, and why, from the product/service - these perceived benefits will vary according to the type of customer organization (size, structure, market sector, strategy, general economic health, culture, etc)



the sales presentation must demonstrate that the product/service meets the prospect's needs, priorities, constraints and motives, or the prospect will not even consider buying or moving to the next stage; this is why establishing the prospect's situation and priorities during the questioning phase is so vital



the above point is especially important to consider when the sales person has to present on more than one occasion to different people or groups, who will each have different personal and organizational needs, and will therefore respond to different benefits (even though the central proposition and main perceived benefit remains constant)



all sales presentations, whether impromptu (off the cuff) or the result of significant preparation, must be well structured, clear and concise, professionally delivered, and have lots of integrity - the quality and integrity of the presentation is always regarded as a direct indication as to the quality and integrity of the product/service



it follows then that the sales person must avoid simply talking about technical features from the seller's point of view, without linking the features clearly to organizational context and benefit for the prospect - also avoid using any jargon which the prospect may not understand



sales presentations must always meet the expectations of the listener in terms of the level of information and relevance to the prospect's own situation, which is another reason for proper preparation - a vague or poorly prepared sales presentation sticks out like a sore thumb, and it will be disowned immediately



when presenting to influencers, which is necessary on occasions, it is important to recognise that the sales person is effectively asking the influencers to personally endorse the proposition and the credibility of the selling organization and the sales person, so the influencers' needs in these areas are actually part of the organizational needs of the prospect company



the presentation must include relevant evidence of success, references from similar sectors and applications, facts and figures - all backing up the central proposition



business decision-makers buy when they become satisfied that the decision will either make them money, or save them money or time; they also need to GR Phelps Ltd Training Manual – Prospecting skills – Page 100

be certain that the new product/service will be sustainable and reliable; therefore the presentation must be convincing in these areas 

private consumer buyers ultimately buy for similar reasons, but for more personal ones as well, eg., image, security, ego, etc., which may need to feature in these type of presentations if they form part of the main perceived benefit



while the presentation must always focus on the main perceived benefit, it is important to show that all the other incidental requirements and constraints are met - but do not over-emphasise or attempt to 'pile high' loads of incidental benefits as this simply detracts from the central proposition



presentations should use the language and style of the audience - eg., technical people need technical evidence; sales and marketing people like to see flair and competitive advantage accruing for their own sales organization; managing directors and finance directors want clear, concise benefits to costs, profits and operating efficiency; and generally the more senior the contact, the less time you will have to make your point - no-nonsense, no frills, but plenty of relevant hard facts and evidence. See the presentation section for more guidance on this.



if the sales person is required to present to a large group and in great depth, then it's extremely advisable to enlist the help of one or two suitably experienced colleagues, from the appropriate functions, eg., technical, customer service, distribution, etc., in which case the sales person must ensure that these people are properly briefed and prepared, and the prospect notified of their attendance.



keep control of the presentation, but do so in a relaxed way; if you don't know the answer to a question don't waffle - say you don't know and promise to get back with an answer later, and make sure you do.



never knock the competition - it undermines your credibility and integrity don't even imply anything derogatory about the competition



if appropriate issue notes, or a copy of your presentation



use props and samples and demonstrations if relevant and helpful, and make sure it all works properly



during the presentation seek feedback, confirmation and agreement as to the relevance of what you are saying, but don't be put off if people stay quiet



invite questions at the end, and if your are comfortable, at the outset invite questions at any time - it depends on how confident you feel in controlling things



whether presenting one-to-one or to a stern group, relax and be friendly - let your personality and natural enthusiasm shine through - people buy from people who love and have faith in their products and companies

GR Phelps Ltd Training Manual – Prospecting skills – Page 101

5. Overcoming objections/negotiating 

decades ago it was assumed that at this stage lots of objections could appear, and this would tend to happen, because the selling process was more prescriptive, one-way, and less empathic; however, successful modern selling now demands more initial understanding from the sales person, even to get as far as presenting, so the need to overcome objections is not such a prevalent feature of the selling process



nevertheless objections do arise, and they can often be handled constructively, which is the key



if objections arise, firstly the sales person should qualify each one by reflecting back to the person who raised it, to establish the precise nature of the objection - "why do you say that?" , or better still, "what makes you say that?, is usually a good start



it may be necessary to probe deeper to get to the real issue, by asking why to a series of answers - some objections result from misunderstandings, and some are used to veil other misgivings which the sales person needs to expose



lots of objections are simply a request for more information, so definitely avoid responding by trying to re-sell the benefit - simply ask and probe instead; the best standard response is something like "I understand why that could be an issue, can I ask you to tell me more about why it is and what's important for you here?.."



try to avoid altogether the use of the word 'but' - it's inherently confrontational



an old-style technique was to reflect back the objection as a re-phrased question, but in a form that the sales person is confident of being able to answer positively, for example: the prospect says he thinks it's too expensive; the sales person reflects back: "I think what you're really saying is that you have no problem with giving us the contract, but you'd prefer the payments staged over three years rather than two? - well I think we could probably do something about that..."



another old-style technique used to be to isolate the objection (confirm that other than that sticking point everything else was fine), then to overcome the objection by drawing up a list of pro's and con's, or analysing to death all the hidden costs of not going for the deal, or re-selling the benefits even harder, and then to close powerfully, but these days such a contrived approach to objection handling is likely to insult the prospect and blow the sales person's credibility



the 'feel-felt-found' technique was another popular tactic in overcoming objections: this is a response built around the three 'feel felt found' elements: "I understand how you feel/why you feel that...//Other customers have felt just the same/that...//But (or 'And') when... they have found that..." The method uses empathy in stage one, neutrality and group reference (shifting the issue away from personal confrontation) in stage two, and then counters the objection and reinforces the benefits using (alleged) majority evidence in

GR Phelps Ltd Training Manual – Prospecting skills – Page 102

stage three, in the hope of persuading the buyer that he/she is isolated and missing out if deciding not to buy 

it is important to flush out all of the objections, and in so doing, the sales person is effectively isolating them as the only reasons why the prospect should not proceed, but then the more modern approach is to work with the prospect in first understanding what lies beneath each objection, and then working with the prospect to shape the proposition so that it fits more acceptably with what is required. See the section on negotiating.



avoid head-to-head arguments - even if you win them you'll destroy the relationship you'll go no further - instead the sales person must enable a constructive discussion so that he and the prospect are both working at the problem together; provided the basic proposition is sound most objections are usually overcome by both the seller and the buyer adjusting their positions slightly; for large prospects and contracts this process can go on for weeks, which is why this is often more in the negotiating arena than objection handling



you've handled all the objections when you've covered everything that you've noted down - it's therefore important to keep notes and show that you're doing it



by this stage you may have seen some signs that the prospect is clearly visualising or imagining the sale proceeding, or even talking in terms of your working together as supplier and customer; this is sometimes called buying warmth. Certain questions and comments from prospects are described as buying signals because they indicate that the prospect may be visualising buying or having the product/service. In the old days, sales people were taught to respond to early buying signals with a 'trial close', but this widely perceived as clumsy and insulting nowadays. Instead respond to early buying signals (ie those received before you've completed the presentation to the prospect's satisfaction, and answered all possible queries) by asking why the question is important, and then by answering as helpfully as possible

GR Phelps Ltd Training Manual – Prospecting skills – Page 103

6. Close/closing/agreement 

in modern selling, even using the traditional Seven Steps process, every sales person's aim should be to prepare and conduct the selling process so well that there are few if any objections, and no need for a close



the best close these days is something like "Are you happy that we've covered everything and would you like to go ahead?", or simply "Would you like to go ahead?"



in many cases, if the sales person conducts the sale properly, the prospect will close the deal himself, and this should be the another aim for the sales person - it's civilised, respectful, and actually implies and requires a high level of sales professionalism



the manner in which a sale is concluded depends on the style of the decisionmaker - watch out for the signs: no-nonsense high-achievers are likely to decide very quickly and may be a little irritated if you leave matters hanging after they've indicated they're happy; cautious technical people will want every detail covered and may need time to think, so don't push them, but do stay in touch and make sure they have all the information they need; very friendly types may actually say yes before they're ready, in which case you need to ensure that everything is suitably covered so nothing can rebound later



for the record here are some closes from the bad old days - the traditional golden rule was always to shut up after asking a closing question, even if the silence became embarrassingly long - (a who-talks-first-loses kind of thing) use them at your peril:



the pen close: "Do you want to use your pen or mine?" (while producing the contract and pen)



the alternative close: for example - "Would you like it delivered next Tuesday or next Friday?", or "We can do the T50 model in silver, and we have a T52 in white - which one would you prefer?"



the challenge close: "I know most men wouldn't be able to buy something of this value without consulting their wives - do you need to get your wife's permission on this?.." or "Most business people in your position need to refer this kind of decision to their boss, do you need to refer it?"



the ego close: "We generally find that only the people who appreciate and are prepared to pay for the best quality go for this service - I don't know how you feel about it?..."



the negative close: "I'm sorry but due to the holidays we can't deliver in the three weeks after the 15th, so we can only do it next week, is that okay?"



the guilt close: "Over three years it might seem a lot of money, but we find that most responsible people decide they simply have no choice but to go for it when it's less than a pound/dollar a day to protect your.../safeguard your..../improve your... (whatever)."



the sympathy close: "I know you have some reservations that we can't overcome right now, but I've got to admit that I'm pretty desperate for this sale - my manager says he'll sack me if I don't get an order this week, and you're GR Phelps Ltd Training Manual – Prospecting skills – Page 104

my last chance - I'd be ever so grateful if you'd go ahead - and I promise you we'd be able to sort out the extra features once I speak to our production people..." (How could anyone live with themselves using that one?....) 

the puppy dog close/puppy dog sale: "Let me leave it with you and you see how you get on with it..."



the last ditch close: (sales person packs case and goes to leave, but stops at the door) "Just one last thing - would you tell me where I went wrong - you see I just know this is right for you, and I feel almost guilty that I've not sold it to you properly, as if I've let you down....."



the pro's and con's list: "I can appreciate this is a tough decision - what normally works is to write down a list of all the pro's and con's - two separate columns - and then we can both see clearly if overall it's the right thing to do..."



the elimination close: "I can see I've not explained this properly - can we take a moment to go through all the benefits and see which one is holding us back from proceeding?" (At which the sales person lists all the benefits - the positives, and runs through each one to confirm it's not that one which is causing the problem, crossing a line through each as he goes. When he crosses the last one out he can claim that there really seems to be no reason for not going ahead...)

GR Phelps Ltd Training Manual – Prospecting skills – Page 105

7. Follow-up/fulfilment/delivery/admin 

after-sales follow-up depends on the type of product and service, but generally for every sale the sales person must carry out a number of important processes:



all relevant paperwork must be completed and copies provided to the customer - paperwork is will cover the processing of the order, the confirmation of the order and its details to the customer, possibly the completion of installation and delivery specification and instructions



sales reporting by the sales person is also necessary, generally on a proforma or computer screen, typically detailing the order value, product type and quantity, and details about the customer such as industrial sector - each sales organization stipulates the sales person's reporting requirements, and often these are linked to sales commissions and bonuses, etc.



the sales person should also make follow-up contact with the customer - as often as necessary - to confirm that the customer is happy with the way the order is being progressed; this helps reduce possible confusion and misunderstood expectations, which are a big cause of customer dissatisfaction or order cancellation if left to fester unresolved



customer follow-up and problem resolution must always be the responsibility for the sales person, who should consider themselves the 'guardian' of that customer, even if a well-organised customer service exists for general aftersales care



customers rightly hold sales people responsible for what happens after the sale is made, and good conscientious follow-up will usually be rewarded with referrals to other customers - this is also helpful for networking



follow-up is an important indicator of integrity; when a sales person makes a sale he is personally endorsing the product and the company, so ensuring that value and satisfaction are fulfilled is an integral part of the modern sales function

GR Phelps Ltd Training Manual – Prospecting skills – Page 106

The product offer (also called 'sales proposition') FABs (features advantages benefits) USPs (unique selling propositions/points) UPBs (unique perceived benefits) The product offer, or sales proposition, is how the product or service is described and promoted to the customer. The product offer is generally presented in varying levels of detail and depth, depending on the situation. As an opening or initial proposition the words are used by the sales person to attract attention and interest in verbal and written introductions to prospects - so it has to be concise and quick - remember that attention needs to be grabbed in less than five seconds. The product offer is also used by the selling company in its various advertising and promotional material aimed at the target market. Traditionally the selling company's marketing department would formulate the product offer, but nowadays the sales person greatly improves his selling effectiveness if he able to refine and adapt the product offer (not the specification) for targeted sectors and individual major prospects. Developing and tailoring a product offer, or proposition, is a vital part of the selling process, and the approach to this has changed over the years.

FABs (features - advantages - benefits) The technique of linking features, advantages, and benefits (FABs) was developed in the 1960s and it remains an important basic concept for successful selling and sales training. FABs were traditionally identified and by the company and handed by the training department to the sales people, who rarely thought much about developing them.

Here is the principle of using Features, Advantages, Benefits: Customers don't buy features, they don't even buy the advantages - what they buy is what the product's features and advantages will do for them, which in selling parlance is called the benefit. For example: A TV might have the feature of internet connectivity and a remote control qwerty keyboard; the advantage is that the customer can now access and interchange internet and TV services using a single system; and the benefit is that the customer saves money, space, and a lot of time through not having to change from one piece of equipment to another. It's the saving in money, space and hassle that the customer buys. A sales person who formulates a sales proposition or product offer around those benefits will sell far more Internet TV's than a sales person who simply sells 'TV's with internet connectivity and remote qwerty keypads'. Moreover the few customers who recognise the product benefit by its features and advantages will also recognise all the competitors' products too, which will cause all the sales people selling features and advantages to converge on the most astute GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 107

purchasing group, leaving the most lucrative uninformed prospects largely untouched. The aim is to formulate a product offer which elegantly comprises enough of what the product does and how, with the most important or unique benefits for a given target market or prospect type.

USPs (unique selling points/propositions) The strongest benefit for a given target sector is often represented by the term USP, meaning unique selling point or proposition (for many companies no real uniqueness exists in their USPs, so the term is often used rather loosely where the word 'strongest' would be more apt). Real or perceived uniqueness is obviously very important because it generally causes a prospect to buy from one sales person or supplier as opposed to another. If there were umpteen WebTVs on the market, the ones that would sell the best would be those which had the strongest unique selling points. Price is not a USP; sure, some people only buy the cheapest, but most do not; most will pay a little or a lot extra to get what they want. As with the example of the WebTV, an advantage that produces a money-saving benefit is different to straightforward price discounting. A low price is not a benefit in this context, and any product that is marketed purely with a low-price USP will always be vulnerable to competition which offers proper user-related benefits, most of which may come in the form of a higher value, higher price package. What makes it difficult to succeed all the time with a fixed USP or series of USPs is that one man's USP is another man's dead donkey - USPs by their nature fail to take account of a prospect's particular circumstances and detailed needs. The name itself - unique selling point - says it all. Purchasers of all sorts are more interested in buying, not being sold to. Each type of prospect has different reasons for buying. Market sectors or prospect types with smaller houses and fewer rooms are more likely to respond to the spacesaving benefit of the WebTV as the product's main USP. Market sectors or prospect types with big houses and lots of big rooms are more likely to regard the time-saving benefit as the key USP instead. A sector which comprises people who are not technically competent or advanced, may well respond best to a USP that the supplier could fail to even mention, ie., installation, training and a free technical support hotline. Where does that leave the sales person if his marketing department hasn't included that one on the list?..

UPBs (unique perceived benefits) This leads us to the UPB, meaning unique perceived benefit - a modern selling concept naturally evolved from FABs and USPs. The UPB acronym and concept was originated by The Marketing Guild, and it is proper to mention this when using the term in training. A UPB is essentially a customer-orientated product offer. The problem with USPs and FABs is that they are largely formulated from the seller's perspective; they stem from product features after all. So if instead of looking at the product from the seller's viewpoint, we look at the need, from the customer's

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 108

viewpoint, we can build up a UPB-based product offer that fits the prospect's situation and motives much better than any list of arbitrary FABs and USPs. First it comes down to knowing the target market segment, or the targeted prospect type, extremely well. This implies that we should first decide which sectors or segments to target, and it also shows why the planning and preparation stage in the selling process is far more significant and influential than it ever used to be. Each targeted segment or prospect type has its own particular needs and constraints, and these combine to create the prospect's or target sector's very specific buying motive. So if we can identify and then formulate a unique perceived benefit to meet or match a known or researched sector's specific buying motive, we can create a very well-fitting and easily recognisable product offer indeed. For instance, a likely attractive target sector for the WebTV could be families with limited space and little technical confidence. With children at school learning how to use computers, their parents (the decision-makers) would likely be interested in improving their children's access to internet services at home, given no requirement for extra space, and in a way that didn't put pressure on their limited technical knowhow at the time of installation and for ongoing support. If the package enabled the parents to upgrade their TV as well for not much more than the cost of a conventional TV, then we're certainly likely to get their attention and interest, and we're a short step away from creating some real desire. The UPB for this particular prospect type might look something like: "You can now give your children important educational access to the Internet at home, if you know nothing about computers, and don't even have room for one." The product offer above is described so that the prospect type in question identifies with it, and can immediately match it to his own situation. The WebTVs relevant benefits - ie., you save space and you don't need to spend time understanding the technicalities - have been translated to match exactly why we believe that the prospect might be motivated to consider buying it. The 'important educational' reference is an example of developing the UPB further, ie., that your children's education will be improved. The trade-off is that more words reduces impact and attention; only by using the UPB in various forms can we see what works best. It's now clear to see the difference now between a basic technical feature ('a TV with internet connectivity and remote qwerty keypad) and an unique perceived benefit (your children will be better educated). The feature does nothing to attract the buyer; the UPB does a lot. There's another important reason to use tailored perceived benefits, rather than focus on FABs and unique selling points: it's easy for prospects to compare and put a price on what a product is (FABs and even USPs), but it's very difficult to value a real UPB. This means that sales people who sell UPBs are far less prone to competitor threat. Developing strong meaningful unique perceived benefits is not easy - it requires good insight and understanding of the prospect or sector to be approached, and a lot of thought, trial and error to arrive at something that works well. Remember that it is important to adapt the product offer (UPB, sales proposition or however you define it) according to its use in the selling process. For example: GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 109



When cold calling, the proposition is generally broad, concise, and more strategic in nature, and amounts to no more than a long sentence.



In sales brochures and enquiry follow-up letters the product offer or proposition is more detailed, perhaps running to a few sentences or bullet points.



In formal proposals and detailed presentations the proposition can often extend to several paragraphs.

GR Phelps Ltd Training Manual – Prospecting skills – Page 110

How to gain referral business Getting referral business from your existing customers and contacts is a costeffective and efficient way of increasing business. This guide explores the key drivers that lead to referral business and offers some tips on exploiting the potential of referrals to the full. Reducing your costs Getting referral business from your existing customers and contacts is a smart way of doing business. It’s smart because gaining more business from existing customers and contacts costs you far less than finding new customers and contacts. It also allows you to take advantage of a key marketing principle: maximise the full the potential of what you already own (a valuable customer base) before you spend money on looking for more customers and contacts or clients. Finding new customers and contacts is expensive. In addition, as the rest of this guide emphasises, getting referral customers and contacts is a natural by-product of doing business well. Better conversion rate Another advantage of referrals is that the sales conversion rate is much higher. In Sales Prospecting for Dummies, author Tom Hopkins claims that the average sales closing ratio for non-qualified leads is only 10% compared to a 60% close ratio for referred leads. It’s not difficult to understand this better conversion rate. A referral has built-in credibility that reduces the risk new customers and contacts might feel in doing business with you. The customer is half-sold on doing business with you even before contacting your business. Utilise the 20/80 rule Which customers and contacts should you concentrate on to get referrals? All of them, but particularly the 20% of customers and contacts that (in most businesses) provide 80% of your business. These customers and contacts are likely to be the most enthusiastic advocates of your business. Referrals: the key drivers If they’re not happy, it won’t happen The first and most important key to getting referrals is to make sure that your customers and contacts are more than happy. Customers and contacts who are less than satisfied are very unlikely to refer others to you. People like to talk about excellent, unusual or outstanding businesses they have encountered. But they also spread the news of unhappy experiences even more widely. The golden rule is to go out of your way to make sure your existing customers and contacts are very happy. Good systems are essential It’s important that you have effective feedback systems in place to monitor customer satisfaction. If there are any problems with products or service levels, you need to be able to pick these up quickly before they damage your business. Relevant Solution Guides that will help you are listed in the Resources section at the end.

GR Phelps Ltd Training Manual – Prospecting skills – Page 111

See complaints as a turnaround challenge Complaints and poor service offer you an opportunity to turn the situation around. This applies even more to that 20% group of customers and contacts . With some smart thinking, you can convert a disgruntled customer into an advocate for your business. These advocates can turn out to be the most ardent champions of your products and services because they have been so unexpectedly and pleasantly surprised by how you’ve rectified a wrong or a mistake: The secret is to identify unhappiness early and correct it. Don’t let the problem fester. Case study: A business breakfast A group of business people have all gathered for breakfast by 7.20am on the pavement outside a coffee bar. The bar opens at 7.30am, but it’s bitterly cold and they notice a staff member inside. They knock on the door. “Can we come in?” “Sorry, we only open at 7.30.” “But can’t we just come in and wait?” “We only open at 7.30.” The business has just lost not only this group of freezing customers and contacts , but also potential referrals. This customer service disaster could easily have been averted through training focused on the customer’s needs rather than inflexible rules. Good staff training You can only rectify problems if your staff report the problem to you in the first place instead of hoping the problem will disappear. Staff should be encouraged to see that customers and contacts are more than just customers and contacts . They represent unseen customers and contacts (future business) as well. Try to create a business ‘culture’ where staff are praised, not punished, for alerting you to such problems, Giving staff some authority and flexibility to rectify problems on the spot is also important. The Solution Guide: ‘The importance of delegating’ develops this point. Great follow-up pays dividends Always follow up sales Try to follow up all sales through a thankyou card, a telephone call or other form of contact. How soon you follow up depends on the nature of your business. Sometimes following up too quickly with a telephone call can seem a bit too aggressive and selfserving and therefore counterproductive. It may be better to wait a while. Selfless service Too many businesses forget about the customer after they’ve been paid. If this sounds familiar you’ve likely experienced this yourself. The attitude of: “Now I’ve got your money I’ve lost interest in you” comes across all too clearly in many commercial transactions. This makes it comparatively easy to differentiate yourself from the rest. Simply visit or contact the customer when no money motive is involved. Delight and surprise them To gain referral business make sure you exceed the expectations of your customers and contacts or clients. Here are some suggestions: •

Underpromise and overdeliver.

•

Send unexpected gifts.

•

Send useful information. GR Phelps Ltd Training Manual – Prospecting skills – Page 112

•

Be seen as an authority and a resource.

•

Keep in contact at least every 90 days.

•

Be different: do something better than the competition.

•

Make your customers and contacts feel special or privileged.

•

Community involvement also helps because people like businesses that put something back.

Anything that builds goodwill is a good way of encouraging referral business. These tactics are covered in more detail in the related Solution Guides listed in the Resources section at the end. Work to a plan Referral business works best when you work to a plan. Set specific targets “Let’s aim for a 20% increase in referral business in the next 90 days” is far better than ‘Let’s try and get more referral business this year.” The reason for this is simple. If the target is not specific, then you can’t measure progress towards the target. Be consistent Treating everyone consistently and setting high service standards are the keys to achieving the targets you set. Train your staff so that everyone is aware of the targets and how important referral business is to the success of the business. Monitor progress Have systems in place that allow you to measure how much extra referral business you’re getting. Without such systems you have no way of knowing whether you’re likely to achieve your targets. More important, without monitoring, you have no way of knowing if your customer satisfaction levels are increasing or decreasing. More tips on how to get referrals Asking for referrals •

Be careful about how direct you are about asking for referrals. People don’t like to feel used. Asking is easier if you’ve built a close relationship with a customer or client. One business person simply says: “You know, I really enjoy doing business with you. I wish we had more customers and contacts like you. Do you have any friends who’d like to do business with us?”

•

If you’re asking for referrals, it helps to be specific about your target market “We’re looking for people/businesses that…”

•

Hand out business cards. An effective tactic is to write the customer’s name on the back of the card, so that if it comes back to you, you know whom to thank.

•

Try this tactic: “If one of your friends comes in with this card, I’ll personally make sure they get the best service and a great deal.” In this case make sure you train your staff to identify these referrals and notify you so you can keep your promise.

•

Always thank people for a referral.

•

Never take referrals for granted. A quick phone call, a card or a small gift: whatever seems appropriate.

GR Phelps Ltd Training Manual – Prospecting skills – Page 113

•

A newsletter (conventional or email) offers an excellent opportunity for you to provide useful information and ask your current customers and contacts to pass it on.

•

Make it as easy as possible for customers and contacts to pass on information.

Conclusion Referral business offers you a cost-effective way of building your revenues. Success depends upon delivering excellent service, so you need systems in place to monitor and maintain high service and quality levels. You also need the full cooperation of your staff and this means explaining to them the importance of keeping customers and contacts very happy. In achieving these goals, you’re also an expanding circle of excellence. Satisfied customers and known contacts bring in more customers and contacts who in turn refer your business to others.

GR Phelps Ltd Training Manual – Prospecting skills – Page 114

Appendix

GR Phelps Ltd Training Manual – Prospecting skills – Page 115

Goals Goal planning template for personal and business aims To achieve a goal or a vision you must plan how to make it happen. You cannot 'do' a goal or a vision. Instead you must do the things that enable it â&#x20AC;&#x201C; usually several things, in several steps. A goal without a plan remains just a goal - many people have visions, intentions, ideas, dreams which never happen, because they are not planned.

A plan makes things happen. Goal planning can be especially helpful in advancing your career and job hunting, or staring your own business, or becoming self-employed or freelance. A good plan identifies causes and effects in achievable stages. These need not necessarily be very detailed or time-bound unless the aim requires it.

Having a clear aim begins to define the plan. For example: a large-scale short-term aim requires a plan with detail and strict timescales, whereas a goal to achieve a personal life change within five-to-ten years requires much less detail and scheduling, provided the crucial causes and effects stages are identified. Plans can also be structured in different ways according to individual preference and the various planning tools and methods which exist. Detailed people prefer detailed plans. Intuitive people prefer broader more flexible plans. The section on project management explains some of the common more complex planning methods. Also see for example the SMART planning model, which provides an excellent simple basis for outline planning. The delegation tips also refer to SMART, and these pointers are helpful for setting objectives for yourself, aside from other people. Personal goal planning for yourself is rather like delegating a responsibility to yourself, hence the relevance of the principles of delegation. Choose a planning format that you are comfortable using - and adapt and develop it as you need. There is no point in adopting a complex spreadsheet if you'll not enjoy using it. Conversely, if you want to analyse lots of details, then choose a format which will accommodate this. Whatever planing format you prefer, all plans begin as a simple outline, like the planning template provided here. Beyond this you can add more detail and structure to suit your aims and preferences, but you must begin with a clear goal, and an outline of what will make your goal happen. Whatever the aim, all good plans tend to include: 1. A clearly defined aim. 2. Linked steps or stages or elements - resources, actions, knowledge, etc the factors of cause and effect. 3. Relevant and achievable proportions and timings (for steps, stages, elements)

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 116

Note that the overall aim or vision does not have to be limited or constrained. Where aims and visions are concerned virtually anything is possible - for an individual person or an organization - provided the above goal planning criteria are used. Here is a simple outline goal planning template and process, which can be used as the full planning method for certain personal aims, or as an initial outline planning tool for the most complex organizational vision. It is structured in stages. You can add more stages and elements (in other words the factors which cause things to happen) as necessary. If any element is too big to imagine realistically achieving in one go, then break it down into further elements. Even the most ambitious goals and plans are achievable when broken down and given time. A plan to achieve a goal or vision is normally best developed by working backwards from the aim. Ask yourself at each stage of the plan: "What must happen before this?" And then plan to achieve each element, working back in realistic bite-sized elements, to where you are today.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 117

Goal planning template

GR Phelps Ltd Training Manual – Prospecting skills – Page 118

The aim - level one Define your aim - clearly and measurably. My aim/vision/goal:

Measures:

Timescale:

1. Write down your aim or vision. Describe it. Clearly define it so that a stranger could understand it and know what it means. 2. Attach some measures or parameters or standards (scale, values, comparative references, etc) to prove that it is achieved. 3. Commit to a timescale - even if it is five or ten years away. 4. Then ask yourself and identify: What factors would directly cause the aim to be achieved? Insert these below.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 119

Direct cause factors - level two Identify - clearly and measurably - the factors which would directly cause the aim to be be achieved. Factors which will cause the aim to be achieved: 1

Measures:

Timescale:

1. Consider realistically and identify the factors which would cause the aim to be achieved. 2. If necessary research this - you will only be kidding yourself if you guess or ignore an unavoidable aspect. 3. Write these factors down and clearly define them, again so that even a stranger could understand them. 4. If necessary add more rows. 5. Attach measures or parameters or standards as necessary (scale, values, comparative references, etc). 6. Attach timings. 7. Then ask yourself and identify: What enabling factors must exist or be achieved for these level two causal factors to happen? Insert them below.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 120

Enabling factors - level three Identify the factors - clearly and measurably - which will directly enable the directly causal factors to happen or exist. It is natural for causal factors to depend on a number of enabling factors. The plan therefore develops like the roots of a tree, or the tributaries of a river. The numbering is merely a suggestion. Your own plan will be different. Some plans may contain lots more factors and levels - some plans will contain far fewer. Factors enabling the level-two causal factors: 1.1

1.2

1.3

2.1

2.2

2.3

3.1

3.2

3.3

4.1

4.2

Measures:

Timescale:

1. Consider realistically and identify the factors necessary to enable the causal factors. 2. If necessary again research this. 3. Write these factors down and clearly define them, again so that even a stranger could understand them. 4. If necessary add more rows. 5. You can improve the linkage of the factors through the levels by colour or number referencing. 6. Attach measures or parameters or standards as necessary (scale, values, comparative references, etc). 7. Attach timings. 8. Then ask yourself and identify any earlier enabling factors which need to happen before level three. If so, add a fourth level and complete the enabling factors accordingly. 9. When you have completed your plan, you can then start to work through the levels from the bottom to the top. 10. Adapt your plan as required - especially add new factors as you discover them, and plan how each can be achieved by

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 121

incorporating them into this model. 11. A natural way to develop this outline planning method is to use project management tools, such as Critical Path Analysis, or a Gantt Chart, or the various computerised project tools now available.

4.3

5.1

5.2

5.3

This is a sample template not a fixed structure - adapt and develop the model to suit your own situation. Add more or remove factors and levels as you need. You should add a fourth level if any third level enabling factors are not already possessed and cannot easily be achieved. Create your plan from top to bottom. Implement your plan from bottom to top.

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 122

Goal planning - in summary Start with a clear aim. Define it and understand what will cause it to be achieved. Break down these causal factors and identify what will enable these to happen. Ensure every listed item can be tracked back to achievable enabling factors achievable in terms of size and time. Remember that causal and enabling factors come in all shapes and sizes. If necessary research what they are for your own aim. Success is mostly based on understanding what is required for it, before setting out to achieve it. For example, enabling factors can include: 

resources and tools



knowledge and experience



qualifications and reputation



contacts



style



skills



decisions and commitments



re-direction, re-allocation and prioritization



attitude and outlook



encouragement and support



time and space



maturity and wisdom



energy and enthusiasm



determination and persistence



money and other assets



mistakes and disasters - yes, mistakes and disasters can be very useful enablers, so it helps to see them in this way

Where you already possess an identified enabling factor, then re-direct and prioritize it 'upwards' towards your aim and the next relevant causal factor(s) in your plan. This can even apply for factors like money and time, where such enablers are often possessed but are currently misdirected or wasted. The decision and commitment to re-direct and prioritize become the enabling factor. Conversely (and perhaps more commonly) if you do not possess a factor and cannot attain it easily then identify what will cause it to happen, and extend your plan to a prior level. Apply the logic of the planning method - identify the prior enabling factors, and extend the plan to a prior level. Behind every factor lies a cause. When you approach any aim in this way it becomes achievable. This is a simple yet powerful approach. Be careful what you wish for - if you follow this method you will get it.

GR Phelps Ltd Training Manual – Prospecting skills – Page 123

Training Manual Prospecting guide Confidential Must not be copied or distributed without written permission © GR Phelps Ltd 2012

GR Phelps Ltd Training Manual – Prospecting skills – Page 124

Systems and getting started Access your GR Phelps email via webmail Open office can provide you with a Microsoft office compatible system for free Skype is a good way of making low-cost calls, and we use it, free to setup. Need a good quality headset. Picasa – Essential photo editing Useful equipment 1. Good notebook 2. Digital measure around £15-£20 3. Large business card file 4. Digital camera 5. Skype headset 6. Diary 7. Overshoe protectors (save taking your shoes on and off)

GR Phelps Ltd Training Manual – Prospecting skills – Page 125

Checklist to getting started General

 Register as an agent on GR Phelps website (instructions in appendix if needed)

 Login into webmail and send a test email  Download picasa, openoffice, firefox browser and Open Office  Setup user login for 5+ property websites with 10 mile search radius of home postcode, registering for updates.

 Go through presenter and review selling approach and forms, agreements, etc Marketing In the next six weeks you are going to build a database of 150+ contacts made up of the following groups: 1. Personal contacts 2. Business contacts 3. Property professionals (min 200) 4. Home builders and developers (min 50) 5. Social media connections 6. Landlords (min 100) 7. Tenants 8. Home buyers (applicants) Your strategy is then to maintain contact with all 150, growing the Landlords and Property professionals by 10% a month. Tenants and applicants will grow naturally.

 Setup or amend profiles on facebook, twitter, linkedin, blogger and local business directory websites

 Place GR Phelps adverts on Gumtree, vivastreet and your local listing websites

 Poster/card campaign in golf clubs, schools, newsagents, etc  Choose one postcode with a high turnover of properties and do a monthly leaflet drop

 Attend local property investor network meetings  Write a profile page for your GR Phelps page, also copy and paste text for ‘Local information page’

 Create a list 60 property professionals to list on the iProperty and GR Phelps website pages

GR Phelps Ltd Training Manual – Prospecting skills – Page 126

Getting started continued Listings

 Approach properties listed in free sites or listed for 3 months or more with agents for a free valuation

 Phone up landlord adverts  Place private landlord dummy adverts on website, gumtree, vivastreet and free lettings sites etc to start to build tenants database

 Register as potential buyer on as many free sites as possible, for 10 mile radius of postcode Lettings management and investment sourcing

 Every week meet with 5 or more landlords who are currently advertising for tenants to discuss o Finding a tenant o Lettings management o Property sourcing and search o Finance / refinancing opportunities o Landlord insurance services

 Carry out 3 Landlord review meetings every week  Approach sales-only estate agents to offer shared commission on lettings  Property management companies – outsourced administration  Approach non-Rightmove agents and approach for shared commission for joint listing Notes

GR Phelps Ltd Training Manual – Prospecting skills – Page 127

GR Phelps services Here is a simple one-page guide to all the property services that we currently offer.

1. Lettings services 

Find a tenant advertising service - £49-£99



Tenant sourcing – from £195



Full lettings and property management from 7.5% per month



Find a flat search service – call or email for details

2. Property sales services 

Fixed fee – full service with viewing by owner - £95 listing and £895* on completion



Premium Service – full service and premium Rightmove listing 1% on completion



Quick sale – various packages, including BMV packaging, lease option, rent to buy and target price – call or email



NEW: Find a property on Google search service

3. Property services 

Mortgage and finance services



Conveyancing

Database building In addition to networking and referrals (discussed later) much can also be gained by prospecting as well.

GR Phelps Ltd Training Manual – Prospecting skills – Page 128

Property sales – getting started Whether a property sales opportunity, finding a tenant or Landlord Review, it is ALWAYS better to do face to face. Key points 

Only sell the appointment



DO NOT get drawn into discussing too much detail over the phone.



Give just enough to get them interested and keeping saying…”I think the best thing is for me to pop round” or ”I think the best thing is for us to get together”



Use the alternative the choice close, Monday at 5.30pm or Tuesday at 10.30am



Offer appointment times on the half-an-hour



Get full contact details and confirm by email



Have time and space pre-marked in your diary.



Allow at least an hour for each appointment.

Appointment types: 1) Property valuation – conducted at owners home 2) Tenant valuation – at property 3) Landlord review – in reception of good, but not flashy local hotel with good parking and easy to find. Notes

GR Phelps Ltd Training Manual – Prospecting skills – Page 129

The valuation appointment This illustration is for a standard property with normal selling motives, adjusted in forced, distressed or negative equity sale. Before you arrive: 1. Go into Rightmove plus and go back ten years – print out history 2. Find their property if was bought in the last ten and copy and pasted details, especially room measurements. Right click pictures and save to your disc,, and print out. 3. Complete Listing agreement with their full address and take with you. 4. Check on Rightmove and globrix currently available properties within .25 of that postcode. 5. Think – if this was your house, what price would list it for? What price would you aim for? The best process is Connect - make general small talk – them liking you and your credibility is 50-80% of the whether you make the sale. Consult Get owner to show you around property, asking questions as you go. Optional: take pictures as you go around. When back and seated, make sure you find out: 1. Reasons they are moving? 2. What stage they are in looking? 3. What other agents they seen? 4. Do they use or know about RIghtmove? 5. What fees have they been quoted? 6. What would you say are the top five selling features of this property or location? (end with this one – very important) : Talk notes and discuss each point fully. 7. What are you looking for in an estate agent? (get a list of 4-5 factors) Convince Ask them: How much do you know about GR Phelps? Then explain how we work. Use brochure. Make sure your really emphasise the points they made in question 7. End with: “So, which ever agent you list with, the chances your buyer will find your house on the Internet. We invest in online marketing, great customer service and value for money savings, we like to think of ourselves as the agent that gives you more and charges you less....<don’t pause> What are your thoughts about price? Listen and encourage to talk. GR Phelps Ltd Training Manual – Prospecting skills – Page 130

Setting price Draw your line Must get ------------------------- realistically -------------------------------- starting price “The fact is a house is only worth what someone is willing to pay for it at that moment in time, can you give some numbers for each category so I understand your expectations.” If they won’t suggest your prices, and ask “How does that compare with other agents” State we have several ways of marketing your property, as I mentioned, which do you think is right for you? Get out your reports. Discuss starting prices. Once they set a price, reassure them you will go away and start to work hard immediately, particularly with existing applicants. The way we work is very straightforward and honest. I would us to agree a starting price, and then the price steps when can go to at set periods. Draw as graph Starting price:

£299,995

After 4 weeks:

£289,995 (could be any duration, 4 weeks, 4 months)

After 8 weeks,

£275,000

“Does that make sense to you” Commit Take out part-completed listing form, write in price. Do you have an EPC already? What have you been quoted? Our price is £ Complete the missing boxes, select the sales package. Close: If decide to give us a try, I will go away now and prepare a draft property description and send it to you to have a look at, will that be okay? Then I or the office will speak to you regularly and work with you to keep changing the description and price if needed. Great If you could both sign here, I can get the HIP organised and get started to find you a good buyer.

GR Phelps Ltd Training Manual – Prospecting skills – Page 131

Applicant and buying enquiries Inbound enquiry or email: The first time applicant the goal is to get a viewing. Ask the questions below. Arrange the viewing or send more information and follow-up. Important get their full address and email address and send them our details. Very important: ALL viewings must be confirmed by email, SMS and a telephone call with BOTH the owner and applicant. Pitching the applicant’s property Ideally this should be done AFTER the viewing or information sent and BEFORE arranging a second appointment or making an offer. E.g.: “How did the viewing go?” “Great, would you like to put an offer or arrange a second viewing?” (No matter what the answer, even “neither”), lead into: “You said that your house is on the market, could we list it as well and save you some money?” (discuss/explain/overcome objections) Best option is to arrange to pop round and take some more pictures. After the viewing – getting an offer After the first viewing, the goal is to get an offer, with the fallback of a second viewing. A low offer is better than no-offer. Do everything you can to get an offer and ask the applicant to confirm by email or in writing.

GR Phelps Ltd Training Manual – Prospecting skills – Page 132

How to Price a Home - article Pricing decisions should be grounded in reality rather than wishful thinking. “A property is only worth what someone is willing to pay for it, at the moment in time.” When the time comes to price your home for sale, you may be tempted to start with the price you paid for it, add a healthy mark-up and go for it. Unfortunately, that strategy is unlikely to result in a true reflection of your home's market value. Here are seven tips to help you set your price and decide how much your home might be worth: 1. Abandon your personal point of view. How much will a ready, willing and able buyer be willing to pay for your home? Buyers don't care how much you paid for the home, how many memorable moments you and your family shared in the home, how much cash you need for the deposit on your next home or how much time and money you've invested in your home's hardwood floors, fresh paint, lush landscaping or other improvements. 2. Get a couple of viewpoints. Invite at least two estate agents to visit your home and give you their opinion of its likely selling price. Ask for a "comparative market analysis" (CMA), which shows the prices of comparable recently sold homes, on-themarket homes and homes that were on the market, but weren't sold. The on-themarket homes are the "competition" for your home. Ask the agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA. Price recommendations based on CMAs aren't gospel. Some agents will tell you to under-price your home in hope of sparking a bidding war. Others will suggest a flatteringly high price to "buy" your listing only to demand a price reduction a few weeks later. TIP: You can also do this yourself using popular websites such as Rightmove, Upyourstreet, findaproperty and Zoopla to name a few. 3. Do your own market research. Go to the websites above and download details and maybe even view properties in your neighbourhood and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities and condition. Assuming all the asking prices were the same, would you buy your home or someone else's? 4. Calculate the price per square foot. The average price per square foot for homes in your neighbourhood shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage. 5. Consider market conditions. Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home-buying season or the dead of winter? Are interest rates attractive? Is the economy hot or cold? Will you be selling in a buyer's market or a seller's market? Is the local job market strong or are employees fearful of staff reductions? TIP: Consider local factors (with 5 miles of your property) than national or regional trends.) GR Phelps Ltd Training Manual – Prospecting skills – Page 133

6. Sweeten the transaction terms. Some buyers have needs that go beyond the bottom line. If you're willing to sell quickly, you will want attract buyers who want to move in right away. If you can offer quick completion without a chain, then this will be a selling point for some buyers. A lease-option can help first-timers who need deposit assistance. The more creative and flexible you can be in meeting the buyer's needs, the more success you'll have in pricing your home to sell. 7. What are your properties’ hot buttons. Know the five or six selling features of your home. Consider things such as good location, feature bathroom, luxury or wellfitted kitchen, conservatory, new pluming and electrics, high standard of decoration, potential to extend or improve, large room sizes, good built-in storage. Consider the factors that might influence a higher than market-norm price.

GR Phelps Ltd Training Manual – Prospecting skills – Page 134

Enquiry form Date

Area:

Name Address Tel Email Reason calling

Next action

 Property to sell

Is it on market: ___________________________

If renting: notice period: _____________________________ Target moving date: Get full address, and ask name of landlord. Notes

GR Phelps Ltd Training Manual – Prospecting skills – Page 135

Valuation form – property for sale Date

Area:

Name Address Tel Email Number of rooms Number of bedrooms Number of bathrooms Work completed Five key features of house

1. 2. 3. 4. 5.

Reasons for selling

Property looking and timescales

 Looking to buy

Found suitable property - Yes / No / Maybe

GR Phelps Ltd Training Manual – Prospecting skills – Page 136

Preparing property descriptions

Sales Key points 

Make sure clutter and things are moved to create a tidy and spacious appearance. Move furniture out of the room if needed.



A good outdoor shot is important if you can get



Take at least 20 pictures, from different angles, light, flash settings, most from 3ft / 1m off the ground by crouching down.



Take room measurements or check if already on previous listing



Find five features about the property



Find something positive to say about location



Use distance not time when stating proximity

GR Phelps Ltd Training Manual – Prospecting skills – Page 137

Prospecting Where you can find likely prospects (not in order)

1. Private sale sites – contact owners directly by telephone to make an appointment

2. General property trades professionals – homestagers, plumbers, builders, etc 3. Trustatrader campaign 4. Monthly property network meetings 5. Friends, family, colleagues, contacts 6. Facebook, Linkedin, Twitter, Myspace 7. Business and social network clubs, social events 8. Door to door leaflets, and cold calling 9. Local offices and employers notice boards - ‘properties needed’ 10. Houses already on the market with other agents, or listed and not sold 11. Mortgage brokers, DEA’s, accountants and solicitors* 12. Your page on our website – populate with local links and contacts 13. Viewing enquiries – try and get their house 14. JV websites – myhiphome and others 15. Lettings only agents* 16. Non-Rightmove agents* 17. Sales-only estate agents 18. Schools – staff notice boards, also golf clubs, local shops, garden centres, etc ‘properties needed’

19. Referrals from contacts clients 20. For Sale signboard and applicants generally 21. New homes, landlords, investors and developers 22. Free listings on local and national websites- aboutmyarea, bttradespace, etc

23. Houses already on the market – use google property and streetview 24. Houses that were on the market but are not now 25. Property sourcing leads and off-market properties, or shared commission with other agents *can offer introducers / finder’s fee of 10-20%

GR Phelps Ltd Training Manual – Prospecting skills – Page 138

Managing data Every contact you have or make has a property, rents a property, knows other property owners and landlords, may have money to invest and may meet other property owners in the course of their daily work. Managing the contacts means:     

Recording information in single place or format Making notes of each and every contact Keeping in touch with every contact with a monthly email or newsletter Calling ‘best few’ prospects every month by phone Calling everyone else at least every three months.

I recommend using either Outlook or a spreadsheet. If you use a spreadsheet, the first 7 column headings for spreadsheet must be: Email

firstname lastname

Company address1

Town

Postcode

Please add headings for category, notes, etc. Once a month email your file to dawn@grphelps.co.uk and we will produce a monthly email newsletter via mailchimp.

GR Phelps Ltd Training Manual – Prospecting skills – Page 139

Some notes on suggested or possible prospecting activities Suggestions only… Monthly property network meetings

Mypropertyteam website. Events often listed on Facebook and linkedin

Friends, family, colleagues, contacts

Make a list of everyone you know, personal and business and systematically call each and every one to explain GR Phelps. Send an email and brochure. Always ask: “So, do you know of anyone thinking of selling their house or renting out a property?

Facebook, Linkedin, Twitter, Myspace

Set up separate account for you at GR Phelps. 1. Link in with people you meet 2. Search for colleagues 3. Update account profile with info on our fixed fee services 4. Twitter / update on your property activity, news and articles on our website. 5. Mention properties when you list them 6. Mention viewings you are arranging 7. Announce price reductions

Business and social network clubs, social events

Choose three. Attend each one at least twice. As well as the local chamber, consider BNI (find a member and volunteer to ‘sub’, 4 networking, FSB, IOD ,etc. Do not join any, you will starting your own iProperty networking club with a few weeks. Keep all business cards and enter into your database.

Door to door leaflet

Pick a few streets and door drop every month.

Local offices and employers notice boards - ‘properties needed’

Ask to put postcard up. Maybe write our mobile number and “discount for all employees and family”

Houses already on the market with other agents

Leaflet and knock on door. Ask how it’s going. Don’t ask to come in that time, but try and arrange a time to come back, but have everything you need just in case! Find address via streetview and post brochure. More on this later in the manual.

GR Phelps Ltd Training Manual – Prospecting skills – Page 140

Mortgage brokers, DEA’s, accountants and solicitors

Call and setup meeting, with the purpose of being able to pass them leads, and them earning a commission or a discount for a referral (see business partner PDF)

Your page on our website – populate with local links and contacts

Send in some copy and articles, and local links.

Viewing enquiries – try and get their house

See notes in next section.

JV websites and affiliate links with local or national websites.

List on as many free sites as possible.

Schools – staff notice boards, also golf clubs, local shops, garden centres, etc ‘properties needed’

Put up poster, consider holding lunchtime property advice clinic at a lunchtime

Referrals from existing (and past) clients

See notes further on.

For Sale signboard enquiries New homes, landlords, investors and developers

See notes further on.

Free listings on local and national websites- aboutmyarea, bttradespace

GR Phelps Ltd Training Manual – Prospecting skills – Page 141

Approaching private sales websites/existing FSBO listings Key actions 

Select a private sale site or advert source and local through the local newspapers weekly for private adverts



Before calling or emailing, chose a site and select a search criteria, e.g all houses within 5 miles of MK41 2LY.



Email each property with the suggested text, personalising with the name of the street or location so it does look it a standard email and follow-up with a phone call the next morning, where there is a telephone number



Make sure your diary is clear to visit today or tomorrow.

NB: When emailing through a private sale site and not the owner directly, keep it short, and simply ask for a phone number. Otherwise your email by be blocked by filters. EG: Suggested email 1 Hello Please could you call me regarding the house for sale, I would like to arrange a viewing. Regards Graham 07515 851 691 Suggested email 2 Hello My name is ............... I am a property advisor with GR Phelps. I have an applicant urgently looking for a house in this area, and I think yours might be suitable. Whilst you are not listed with us, I wonder if it might be possible to arrange a viewing. Please contact me on..................... Regards Graham NB: Sending emails like these is much more time efficient.

GR Phelps Ltd Training Manual – Prospecting skills – Page 142

Suggested telephone script when calling Hello My name is ............... I am a property advisor with GR Phelps. We are a low-cost virtual estate agent that works on a low fixed fee basis, no-sale, no fee. We have applicants looking for a property like yours and would like to put them in touch. As I said, we do NOT charge commission or any upfront charges, and I am very local to you and would be happy to pop-round and tell you more about how we might be able to help you sell your house. Most importantly, we can get your house listed on Rightmove and over 100 over websites.. .would Wednesday or Thursday be best for your? Our service is a low-cost way of listing on Rightmove and all the main property websites. Our clients save thousands of pounds in comparison with a normal estate agent, for the same or better service. Please contact me on .TEL , EMAIL, if this is of interest, Regards

GR Phelps Ltd Training Manual â&#x20AC;&#x201C; Prospecting skills â&#x20AC;&#x201C; Page 143

Private property sales sites. 1.

http://www.taysidepropertyonline.com

http://www.thelittlehousecompany.co.uk/

http://www.home4.net

http://www.propertysprite.com/

http://www.click2move.co.uk/

http://www.houseweb.co.uk/

http://www.housenetwork.co.uk/

http://www.mypropertyforsale.co.uk/

http://www.ukauctionlist.com/

10.

www.housesimple.co.uk

11.

www.littlepigs.co.uk

12.

http://www.buyitprivately.com

13.

www.gumtree.com – regional sites

14.

http://www.thelittlehousecompany.co.uk/

15.

Behoused.co.uk

16.

Buyitprivately.com

17.

Clicksell.co.uk

18.

Houseweb.co.uk

19.

Mousesale.co.uk

20.

http://www.privatehomeseller.co.uk/

21.

www.usforhomes.com

22.

www.home.co.uk

23.

My Property For Sale

24.

HomesGoFast

25.

http://www.postyourproperty.co.uk/links7.php

26.

http://www.themovechannel.com

27.

http://www.itlhomesearch.com/

28.

www.ebay.co.uk

GR Phelps Ltd Training Manual – Prospecting skills – Page 144

GR Phelps lettings agentâ&#x20AC;&#x2122;s guide â&#x20AC;&#x201C; www.estate-agency-opportunity.co.uk

Page 145

Finding BMV properties Ideally you should be looking for properties that have been on the market for at least 3 months, possibly 6 and have dropped price already. Find these on: http://www.propertysnake.co.uk/ Another useful tool is: http://www.property-bee.com/ This works with Mozilla / firefox browser only and displays a list of changes to a property when using Rightmove, Primelocation and few others. Rightmove plus can also give you this information One approach: Phone the estate agent (either pretending to be a buyer or saying you are from another agent and have an investment buyer that might be interested) handling the property and ask some questions to get background information on property: 1. How long has it been up? (although you might already know this) 2. What is the owners situation? 3. What offers have been made and when? 4. What’s wrong with the property? 5. What is the lowest the owner will take? 6. I want to view the outside, where is it? Leave your details if you have to (personal email address) and say you will talk and your partner and think about. Then, either: 1) Go around the house and knock on the door – say that a friend told you it was up for sale and you are from another agent that has someone who would like to make an offer and ask to view the property. 2) Phone the agent back and say you are interested and would like view or make an offer (low) of course. Pitch “I am from GR Phelps, I have a cash buyer who might be interested in this property but only at a very realistic price” (use this expression instead of below market value) “What is the lowest price you think the vendor will accept for a no-hassle sale?” (Wait for answer) “I would like to make an offer at £____, subject to inspection and valuation, but I must know if the vendor will accept this price before viewing. Can you get back to me today on this.” Gain either a signed listing agreement or a target price marketing agreement.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 146

Partnership building To build listings by working with other organisations and individuals 1. Homestagers and property professionals (see list in Appendix) 2. Lettings only agents 3. Mortgage brokers 4. Property developers, home builders and multiple landlords 5. Charities In all of these partnerships the partner may register as an agent on www.grphelpsonline.com . Commission share is a guide only and may not be necessary if you can pass referrals to them.

Homestagers and property professionals How we work with them

What we offer

We can offer Homestagers paid assignments to photograph, prepare property descriptions and post on line.

£50 per property 10% finders fee

Finder’s fee commission for referrals, that they upload themselves.

Lettings only agents (non Rightmove) How we work with them

What we offer

List and manage their properties on Rightmove + for £49. (+VAT)

Discounted portal listings

Finder’s fee commission for referrals, that they upload themselves.

20-50% commission on properties listed for sale, full enquiry and sale management.

Ability to sell properties via main portals.

Mortgage brokers How we work with them

What we offer

Finder’s fee commission for referrals, that they upload themselves or pass to us.

10% -25% commission properties listed for sale, full enquiry and sale management

Pass leads for mortgages Entry on our websites.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 147

Property developers, home builders and multiple landlords How we work with them

What we offer

List and manage their properties on Rightmove + for ÂŁ49 per property

Ability to manage listings for sales and rental with more control and lower costs than any other agent.

Ability to sell properties via main portals on a fixed fee basis. Fixed fee lettings management Bespoke sales service for new home sales

Charities How we work with them

What we offer

Promote our service and properties on their website and in shops.

10% of sales fees to them on completion of property sale.

Fund and provide marketing leaflets with shared messages.

Support at events.

GR Phelps lettings agentâ&#x20AC;&#x2122;s guide â&#x20AC;&#x201C; www.estate-agency-opportunity.co.uk

Page 148

Approaching trades people (See additional section on iProperty Network) Key points 

Building contacts with as many trades people as you can is vital.



Finding them is easy – they all advertise! Check the local paper every week - these are people looking for week



Whilst walking or driving around, look out for workmen on site or trade vans with contact details on them, approach them and ask about the property if being renovated, ask a few questions but do not overstay your welcome.



Aim for at least three good contacts in every category.



ALWAYS call first and either try to get a meeting or send a follow-up email or brochure after you have spoken.



Posting a brochure or letter is always a good idea, with your business card clipped to it. Hand-write the envelope as you go through the calls.



Enter full contact details into the RGS cardmaster system or spreadsheet



By giving them leads and referrals, they give you referrals. Givers gain.



Contact them at least once a month to pass referrals, and invite to a property networking event, whether your own or another organisation’s.

Steps 1. Generate a list of all trades professionals in your area 2. Contact by telephone and introduce yourself and the directory and finders-fee. 3. Offer to send information by email. 4. Enter their name and email into database 5. Send personalised email and monthly newsletter. 6. Follow-up by phone once every few weeks. 7. Invite to property power circle, networking events, PIN meetings, etc. 8. Pass leads whenever possible.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 149

Mortgage brokers as business partners Mortgage brokers are very good contacts to develop as business partners. We can offer, if you chose:   

Listing on website Passing other of leads Finder’s fee commission of 10% on all leads passed.

Steps 1. Generate a list of all mortgage brokers in your area 2. Contact by telephone and introduce yourself and the directory and findersfee. 3. Offer to send information by email but best arrange an informal first meeting 4. Enter their name and email into your database, card into the card file (system will send personalised email and monthly newsletter and put details on your website pages). 5. Follow-up by phone once every few weeks. 6. Pass leads on to them.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 150

Trustatrader campaign Here is a suggestion on how to accelerate your marketing and build more contacts, leading to uncovering properties to sell or let. It is a version of the previous marketing approach, be focused around the trustatrader website.

1. Use Trustatrader as a prospecting source. Work through each category, emailing and extracting at least five contacts or companies per trade (see step 2) http://www.trustatrader.com/ Suggestion: Aim to send out 20-50 emails a day for at least four weeks, giving you 400-1,000 contacts. 2. For each trader, working one at a time - click on info and wait for window to open. Three things to do here: 

Select text and copy into word document



Handwrite an A5 envelope to post a brochure. (If you send these envelopes to me in batches of 50, I will send print a standard letter with your email address on the bottom and post from here. )



Click on email address (or copy and paste) and send the email text below to each tradesperson individually, adding their first name if shown or known use the text below and ADD YOUR EMAIL address to the bottom and attach our standard PDF - fixed fee.

3. Once the brochure has gone out, within 3 days of us receiving it, phone all or selected tradespeople to ask: 

Would they mind being included in your directory or recommended tradespeople - online and on a printout - to give to possible clients



Do they know anyone looking to sell or rent a property this year?



Would they like a free, no obligation report on their property/properties?

NB: If you do not want to offer the discount/finder's fee - please remove. After four weeks, I will send you details of Stage 2 Suggested email copy is over the page.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 151

Getting appointments Whether a property sales opportunity, finding a tenant or Landlord Review, it is ALWAYS better to do face to face. Key points 

Only sell the appointment



DO NOT get drawn into discussing too much detail over the phone.



Give just enough to get them interested and keeping saying…”I think the best thing is for me to pop round” or ”I think the best thing is for us to get together”



Use the alternative the choice close, Monday at 5.30pm or Tuesday at 10.30am



Offer appointment times on the half-an-hour



Get full contact details and confirm by email



Have time and space pre-marked in your diary.



Allow at least an hour for each appointment.

Appointment types: 4) Property valuation – conducted at owners home 5) Tenant valuation – at property 6) Landlord review – in reception of good, but not flashy local hotel with good parking and easy to find.

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 152

Trustatrader / property professional sample email __________________________________ Subject: Landlord directory Hello, I am a local property advisor with GR Phelps, a new style of estate agent. As part of our service, I am building a select directory of local professionals that will be listed FREE on our website and sent to clients and landlords when they enquire or sell with us. With your permission I would very much like to include your details. I have attached more information on our services. Our fixed-fee sale service is just £895+vat, no sale, no fee. If you know or hear of any customers that are looking to sell, please pass on my contact details - we offer a free valuation service without obligation. Plus, for any referrals that you generate we offer either a 10% discount to your customer or a 10% referral fee to you. Please contact me for your details. Regards

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 153

Online activity

Property groups and websites to list / advertise on Linkedin – various property groups Facebook – various groups and marketplace http://www.uklettingagent.co.uk http://www.kompass.co.uk http://www.ukprop.net http://propertytribes.ning.com/ http://landlordzone.co.uk/ http://www.arla.co.uk http://www.residentiallandlord.co.uk/ http://www.landlordexpert.co.uk http://www.landlordlaw.co.uk/ http://www.landlords.org.uk/index.htm http://www.studentlandlord.org.uk/ http://www.rla.org.uk/ http://www.propertyhawk.co.uk http://www.all4landlords.com http://www.rentchecks.com http://www.mypropertypowerteam.co.uk/ http://www.freeindex.co.uk/ http://www.smartlandlord.co.uk/ http://www.informedlandlords.com http://www.lettingzone.com http://www.landlordsfinance.co.uk/ Sites we list additional properties on, that you should to, and look for prospect as well http://www.gumtree.com/ http://www.vivastreet.com/ http://www.ezylet.com/ Facebook marketplace ( www.oodle.com)

GR Phelps lettings agent’s guide – www.estate-agency-opportunity.co.uk

Page 154