The 5-Step MFO Real Estate Listing Process

The 5-Step MFO Real Estate Listing Process


Hello and welcome to Mike Ferry TV. I’m Ron Cronin, the President of Business
Development for the Mike Ferry Organization. And with the current market conditions we’re
experiencing right now, I was thinking how hard everyone’s working at getting more listings. You know, maintaining your listing inventory,
keeping your numbers up. And I was thinking about a conversation I
recently had with Mike Ferry … One of the easiest ways to get more listings is to simply
improve the closing ratio that you have on your listing presentations. Improve your closing ratio. For example, if you go on 10 presentations,
you know the next 10, and you’ll sign up three to four. Well, you have a 30 to 40 percent close ratio. Well, at the Mike Ferry Organization, Mike
has always taught you, when you follow his materials, use his scripts, follow his processes. You know, you should be enjoying eight out
of ten people sign the contract with you when you follow these processes. Now what’s interesting is the National Association
of Realtors reports that if you follow their scripts, their training and what they teach,
that you should enjoy two out of 10. Two out of 10. Right? Well, I like eight out of 10 a lot better. So how do we improve our closing percentage? That’s the question. How do we improve it? And I want you to write down in your notes…
write down: by following Mike Ferry’s five-step listing process. By following it. The five-step process. Now, I know that you’ve heard of this before,
and a lot of you are following it. Some of you are following it to some degree,
but it’s such an easy way for you to take more listings without doing any more work,
really. Without doing more work. So imagine if we can take you from four out
of ten people signing. We can take you to eight or even nine. Imagine what that’s going to do to your production
your income and your closing percentage. Okay so let’s go over the five step listing
process, because what I know about a lot of our coaching clients is they follow it to
some degree. Right? You know, you may you may be pre-qualifying,
but you don’t send out the package. Shame on you. Right? Or you don’t call and confirm. Or you follow the Mike Ferry scripts, you
send the package, but when you get there, you do a completely different presentation,
and you can’t figure out why more people don’t hire you. Ok. So let’s go over the five-step process and
as we do, I want you to define for yourself which areas, which steps, do you need to improve,
do you need to implement… start doing! OK? So that we can get you more listing. So please write down step number one of the
five-step process is to pre-qualify. Pre-qualify and the rule is to pre-qualify
100 percent of the sellers, 100 percent of the time and there is no exception to that
rule. 100 percent. OK? And by pre-qualifying it means taking them
through Mike Ferry pre-qualifying script. You know, it’s a few questions to help you
understand where the customer’s coming from, what their goals are, what they want, what
their timing is, what they don’t want. Pre-qualifying allows you to learn everything
possible about the customer before you actually get together. Now, you know, don’t you want to be as informed
as you can? So any fears you have about pre-qualifying
you must talk to your coach about it and get it out of the way, because it’s step number
one and it’s what makes you a professional. OK. By pre-qualifying. Now the second step is important, and we’re
going to discuss it. It’s it’s mail or deliver a pre-listing package. Mail or deliver the pre-listing package. It’s to send the sellers something to get
them ready for the appointment. Now when you look at realtors pre-listing
packages, I mean, boy! These things can be pretty elaborate. And then agents pre-listing packages look
like they’re made out of dried macaroni and popsicle sticks. OK. So, we’re gonna discuss what goes in the packet,
but let’s first discuss what is the purpose of sending a pre-listing packet? What’s the purpose. OK. Well, Mike says that the seller has four questions
that they want to have answered. Four questions, right? They may have more, but let’s just agree that
they’ve got at least these core four questions. OK, first of all, what will my home sell for? OK. What will it sell for? They’re going to want to know that. How much are you going to charge me? Right. What’s the commission? How does that work? They want to know what the cost is, what the
fees are. OK. They want to know, what are you going to do
to get the home sold? What’s the plan? What’s the strategy here? OK. And then they’d like to know, how long will
it take? How long will it take to complete the job? So, what would my home sell for? What are you going to charge? What are you gonna do? And how long will it take? You see those are the questions that the sellers
have. Those are the questions that are causing them
to want to meet with realtors and get those questions answered. But when you look at agents packages, they’re
not always about answering those questions. Excuse me. Sometimes they’re about the packages are more
about the company, and they’re more about the agent involved. You know, you have photos of the agent everywhere,
all this company propaganda that we pack in there. All this extra stuff to make us look like
we’re important, or I’m not sure what you’re going for with all those things in there. You know because the truth is, if you ever
really examine it, are the sellers are the customers really looking through all that
material? Some of them might, but most of my don’t think
so. Right. We’re not going to go scour that, we’re just
going to basically wait for you to come over. So by streamlining your package to include
what Mike Ferry says to put in, it’s going to set you apart from the competition. It’s going to better prepare the sellers for
the meeting that you’re about to have. It’s going to answer their questions in advance
so that it’s easier for them to make a decision. And it’s going to get you better results. So inside the package, what goes in here? Write down the letter A. First of all, personal
references. Four or five only, personal references. You know, Bob Anne Marie Smith and their phone
number. OK. What we see is that in packages agents you
put your testimonials, that you’ve conveniently selected out of a larger group of testimonials. Right. And, you know, these testimonials say how
wonderful it was working with you, and how great you are, and so forth. But the truth is, you know, you are applying
for a job with these sellers. You’re applying for a job. And when you’ve applied for jobs before, do
you include testimonials about you? Or do you include references? OK. So, you know, provide a simple list of references
that the sellers can call and get a reference on you. Keep it simple. Remember the package is not about you. It’s not about who you are, and what you think. It isn’t. It’s about answering those questions. With that in mind, write down letter B. The
next thing to put in there would be your your listing plan of action, or your marketing
plan. How do you plan to sell the house? What activities are you going to execute to
get the homes sold? And we want you to have all those listed out. Now, Mike Ferry-trained agents typically follow
the eighteen-point plan of action. Right. The eighteen-point plan of action. We’ve already got it prepared for you. And it lists out what great real estate agents
do to get their listings sold. It’s very straightforward. Some of the items on the 18 points are very
common for agents to do. Some of them are not common. And it shows the hard work that you’re going
to do when they hire you. Now, keeping in mind that most of your competition
does not have a plan of action, they didn’t even know what you’re talking about. OK. So this shows that you’re actually going to
work and earn the commission, and a lot of sellers like that. OK. So what is your plan of action, or how do
you plan to market the property? OK. Write down a letter C. Mike says you can include
a copy of your track record. Right. Your personal track record. Or, if you don’t have one—you know, you’re
newer, you just getting started, or it’s only been a short time—well, then use your company’s
track record. I’m sure that’s impressive. Right. How many homes has your company sold in the
last six months? Or this year, or in the last 12 months. Right. Or if it’s your own, if you’ve been selling
for a while, make sure you include your track record. Now don’t go back your entire career, I don’t
want to know what you did the last 20 years right. But maybe show, you know, what you’ve done
the last 6, 12, 18 months. Something like that. Just to show what you’re currently up to. OK. Track record. It can be impressive. OK good. Write down, a completed CMA. That would be letter D, or number four. A completed CMA. You put the CMA in the package with the list
price. Right. With all the comps that you’re using, whether
they’re using actives and pendings or solds, whatever you choose however you choose to
line that up. But we want to make sure that we include the
CMA so they can understand what is value, and how is your suggested price determined? We want to make sure they know it’s not just
that you just thought of it. Or that you rolled the dice. Or you did some crazy process of developing
it. It’s just based on what the homes in the neighborhood
have sold for. It’s the same process used by everyone in
the industry. So include the CMA with your suggested price. OK. Now some of the things I’m suggesting, I know
that you’re questioning right now. You’re like, “Well, Ron, if I put the price
in there, you know they may not want to keep the appointment, they may just want to cancel
the appointment.” Good! OK. Because, if they’re not going to list it at
a realistic price that’ll cause it to sell. Ultimately, if they won’t, well, we’re not
going to be able to help them anyway. OK. But remember now guys and gals, the package
and this five-step process is designed to draw out those objections in advance. It’s supposed to draw out that objection when
you mail this over. And if it doesn’t, well then they don’t have
objections. OK. All right. So we’re not gonna be afraid of that, it’s
supposed to pull that out of there. OK. Good. So the CMA. Most of your CMAs are going to include a net
sheet. So let’s make sure that you have a completed
net sheet in your package. Completed that sheet showing the fees, the
costs, the commission, the title fees, the escrow fees, you know, everything involved. And it’s an estimate, but we want to give
the seller an idea of what it’s going to cost, and show him approximately what he’ll net
out at your suggested price. See, a lot of people they have a hard time
making the decision to sign if they don’t know how much they’re going to get. So don’t leave them guessing it’s one of their
four major questions. It’s one of those, so you gotta answer it
a completed net sheet. Don’t be afraid that they’re not going to
like the commission. Right. No one likes the commission. But don’t be afraid of it. It’s supposed to draw out that objection so
you can prepare for it, and show up at the appointment prepared. Ok. Next thing to put in your packet would be
the completed contract. A completed contract. Right. Fill it out, put their name put their address. Put the suggested price in there. The commission that you that you charge, you
know. The term of the contract. Sign it, date it where you’re supposed to
do all those things. Get it prepared and even you know highlight
on the contract where the seller is supposed to sign and initial. Or, you know, put those little sticky arrow
indicators or however you choose to do it. But let’s make it easy for the seller to figure
out where they’re supposed to initial date and sign. Make it easy for them. OK. By putting the contract in front of them. Now, think about that. By sending the contract in advance with all
the information in it, making it easy for them to sign. You’re making it easy for them to sign. Imagine that. Versus them having to close you. Or them having to ask you if you brought a
contract with you. You know, that kind of thing. Make it easy by putting it in front of them
and making it available. That’s all you have to do. By offering your service, by asking them if
they’d like to sign. By sending the the contract in advance, it’s
making it easy for them. And if you look at it that way you’ll do it
more often. OK. So put the contract in there. Now here’s what’s exciting. I ask a lot of our top producers and they
all agree… easily two out of 10 sellers will have the contract signed when the agent
shows up. They’ll have it signed. But that only happens when you send it to
them in advance. How are they supposed to sign something they
don’t have? OK. Alright. So I know you’ll start sending it. And then, you know, you should probably include
any of the disclosure statements that go along with your listing agreement. OK. Except in California where you folks have
like 30 disclosures, so maybe just agency disclosure. Some other states there’s a lot, but for the
rest of you, the disclosures that go along, put those in there, highlight where you need
them to sign an initial, make it easy for them. Ok. So step one is to pre-qualify the appointment. So once you set it follow the script. Ask the additional questions. Find out everything you need. Step two mail or deliver the package. Now I need to touch on something, I didn’t
say email. I didn’t say email, did I? Why? Well, most of these packages are going to
be more than 20 pages and some of them are going to be are huge. There are a lot more pages. How many people open up a 25-page email? No. No one you know. So, e-mail would be emergency use only. Make sure that you ask them to print it out
before they review it. Ask him to print it out. Otherwise they’ll just go right to the price
and the commission, and they won’t see anything else. Have them print it out, and then review it. But mail or deliver. OK. You could run it over there on your lunch
break. Have your assistant do it. Have a runner or a courier service. I heard people are hiring Uber to deliver
their packages for them, and they’re happy to do it. OK. Mail it. Overnight it. Snail mail if you have the time. Whatever it takes. Get him a hard copy in their hand. OK. So step one, pre-qualify. Step two, mail the package. Step three, call at confirm. Call and confirm. Alright. So step three, call and confirm. Let’s talk about it. Mike has taught us for forever, maybe an hour
or two before the appointment, call back and confirm with the seller. You know, maybe you confirm these three things. Are we still on for five o’clock? Will all the decision makers be present? And have you received and reviewed the packet? OK. We want all the decision makers there, or
we’re not going to get a signature. Right. We want to make sure we’re on time and that
they’re going to be on time. And then you want to make sure that they reviewed
the packet, because otherwise it’s like not having even sent it at all. So let’s make sure that we go over that. Call and confirm one or two hours before. OK. Step 4, show up. Show up. Five-step process, step four us to show up. Physically, mentally and emotionally. OK. Don’t come racing in there late. Don’t come running in there rushed and just
right on time. Show up a little bit early. Make yourself get there 15 minutes early. Sit out in front of the house in the car. Get prepared. Review your notes. Review your package. Maybe drive around the neighborhood. And go you know eyeball the comps that you’ve
put in the package so that you could speak about them a little bit more. You get more familiar, you know the location,
you know where things are. Drive the comps, but get there a little bit
early. Show up. When you show up at the house, you should
be dressed professionally. Wearing a business suit and business attire. Right. You’re there to get a contract signed. You’re excited, you’re enthusiastic about
it. I mean, you naturally are because your service
is so awesome and you’re excited about the opportunity to help these folks get moved. Ok. Show up physically, mentally and emotionally. The last step is to follow the scripts verbatim
when you get there. See, we have a script for you when you get
there. It’s the one-minute listening presentation,
and the CMA listening presentation. We have the script for you. So please make sure that you’re following
the script when you get there, because it’s congruent… It’s congruent with all of the other things
that you’ve done so far. See, the listening presentation is congruent
with the questions you asked when you set the appointment. And when you pre-qualified them. And the presentation you’re following is discussing
all the materials that you sent in the packet. See it’s all designed to work together to
help you. And now imagine this. You set the appointment, you pre-qualify it,
you mail the package. You call and confirm, and everything’s a go. You show up and they’ve received the packet
and all the numbers and then you’re still showing up. You’re going to get the listing. The chances have dramatically increased, because
you followed the five-step process. So, when you do this every time… and I want
you to follow this every time, and I want you to follow all five steps, so if you’re
skipping something, now is the time to get it aligned with your goals. OK. But remember, that’s going to allow you to
know everything about the seller when you follow this process. It’s going to help you learn the objections
before the appointments so that you can get ready. Right. It sets you apart from everyone else in town
that you’re competing with because most of them don’t send this. And if they do, it’s not the information the
seller wants to know. It’s a bunch of material about the agent in
the company. So it sets you apart. It actually helps better prepare the sellers
to make a decision. It just puts them in a position where they
can say yes. Right. It’s going to shorten your appointment, because
they’ve got all the … you know, really, what is there to talk about? If they’ve looked at the packet, and I’m still
coming over, what’s left to talk about? OK. It makes this process easier for the seller
when you follow the five-step process, because then hiring you is just so much easier. Right. I also wrote down, that one of the most important
things you’ve got to remember by following this process is not to get discouraged that
people canceled the appointment, or they don’t show up, or they don’t want to have an appointment
with you after maybe receiving your materials or being pre-qualified. Because what this process does is it also
weeds out the sellers that you don’t want. See, low motivated people probably won’t make
it through the five-step process. Because their their lack of motivation will
show up during the process. It weeds out the no motivated, the low motivated. And it only helps you find and focus on the
highly motivated sellers that have to move and have to sell. And isn’t that who you want? So guys and gals to increase your closing
percentage, let’s come back to some of the fundamental Mike Ferry material. Follow the five-step process to a tee, and
let’s watch your numbers increase. We want to remind you that the Superstar Retreat
2019 at the Venetian Palazzo is coming up in the beginning of June. You don’t want to miss it. If you haven’t signed up, or haven’t booked
your room or your flight, what are you doing? The clock is ticking. We want you there. We want you at the program. Don’t miss it. Your coach will be there. I’m going to be there. Mike and Sabrina will be there. Let’s make sure that you’re there too. Thanks for watching the program.

4 thoughts on “The 5-Step MFO Real Estate Listing Process

  1. Amazing video! I’ve never sent the prelisting Package and this explained very well why I should. Thank you!

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