Real estate
Sales Assessment Results
57
Needs Improvement
10 questions
Maximum score: 100
Completed in
Your performance reflects a solid understanding of some sales concepts, yet there's a noticeable gap in executing them effectively, particularly when addressing customer concerns. You have moments of promise, like acknowledging the prospect's worries and expressing a desire for collaboration, but too often, you fall short on specifics and actionable insights. You need to get into the nitty-gritty—data-driven evidence, clear solutions, and tailored engagement are your allies in building trust and confidence with prospects.
A consistent pattern in your responses is the tendency to acknowledge concerns without following through with robust, data-backed solutions. While empathy is essential, it’s not enough to merely show understanding; you have to arm your prospects with information that empowers them to make decisions. Your approach lacks the depth that would set you apart in a competitive market.
To elevate your game, dive deeper into techniques like Value Selling and Solution Selling. These methods will help you effectively highlight the benefits of what you're offering while tailoring your approach to meet specific customer needs. Think of each interaction as a chance to showcase not just your product but how it fits seamlessly into their landscape.
Remember, every customer interaction is an opportunity to build rapport and trust. So next time you get a prospect on the line, don’t just acknowledge their concerns—unpack them, provide real examples, and paint a clear picture of how your offering aligns with their goals. This isn't just sales; it's about fostering a partnership. Take this coaching moment to heart: specificity is your superpower—wield it wisely.
Question Breakdown
1.
2
/ 10Question:
"I'm concerned about the long-term value of this property compared to others in the area."
Answer:
Long term value would depend on how you maintain the property etc. It is not a number that is based of square footage or number of beds. Historically these homes appreciate if maintained. Even the home 200k today will appreciate if maintained. Houses in general appreciate. In the last 5 years it has 5% year over year.
Feedback:
The response lacks specificity and does not directly address the prospect's concern about comparing long-term value with other properties in the area. It primarily discusses maintenance but fails to compare with local market trends or provide concrete examples to instill confidence. Additionally, it misses an opportunity to engage the prospect with questions to explore their specific concerns further. Overall, it doesn't effectively build rapport or demonstrate a thorough understanding of the market.
To improve, consider incorporating comparable property data, emphasizing unique selling points of the property in question, and asking the prospect what specific factors they are considering when evaluating long-term value.
2.
5
/ 10Question:
"What if our team isn't available to manage the purchasing process effectively right now?"
Answer:
My goal is to create a partnership with you and be able to assist you in that process? Do you feel that managing the property at this time is challenging for you ? Could you share the things that perhaps you see as being challenging so I can see if I can assist you with the gaps that could hinder the process.
Feedback:
The response demonstrates a collaborative approach by expressing a desire to create a partnership, which is a positive aspect. However, it lacks a direct answer to the prospect's concern about the availability of their team to manage the purchasing process. Instead of asking if managing the property is challenging, it would have been more effective to acknowledge their concern and offer specific solutions or support options, such as project management services or resources available to assist during the purchasing process. Additionally, the questioning could be more focused on understanding their current capacity and how you can alleviate their concerns. Overall, while the engagement is good, the response needs to address the objection more directly and provide concrete solutions.
3.
6
/ 10Question:
"I need to be sure that the maintenance costs won’t exceed our budgeting expectations in the first year."
Answer:
I understand the unknown can be stressful. We do have the maintenance reports showing the expected costs and it would be a good idea when making the offer on the property to assume an unexpected maintenance cost. Wear and tear can fluctuate. The previous maintenance numbers can give us a great baseline to work with. The expectation is that those are your true maintenance costs. Also if you run into higher maintenance costs you could adjust rents etc in the coming years accordingly. Lease renewals will include increases based off of maintenance costs. Ultimately any property you purchase will assume the maintenance costs from a conservative approach. I can help you budget accordingly if needed and connect you with vendors who may even be able to lower the maintenance costs in the current report provided to us. When you review the entire picture of the reports and potential increase of rents the project may not appear as risky. Guaranteeing the maintenance costs is impossible but we can use history of the property to give us a pretty good idea of what to expect.
Feedback:
This response acknowledges the prospect's concern about maintenance costs effectively, which is a good start. However, it could be more effective by clearly outlining specific numbers or ranges from the maintenance reports to provide concrete evidence rather than just mentioning them. While the response mentions adjusting rents to counteract potential higher costs, it lacks a proactive tone and specific solutions that could immediately assuage the prospect's fears. Additionally, engaging the prospect with questions about their budgeting expectations would have further demonstrated curiosity and discovery. Overall, the response is informative but could benefit from more specificity and a more direct reassurance regarding the budgeting process.
4.
7
/ 10Question:
"How can we be certain that this property will not lose value in this unpredictable market?"
Answer:
Uncertainty is always a slippery slope and I understand how it could be hard to invest in a volatile market . I can show you the comps that are currently on the market vs a couple years back and you will see that even during those volatile years like Covid the properties still appreciated. When we value properties we also take future value into consideration. We look at the community as a whole as well and find that some communities do not have the fluctuations that others have. I have sold homes in this area for the last 15 years and in the last 5 they appreciated year over year. Even with 8% interest rates. Keeping up with the property can also help with values. How much do you expect the property to appreciate over time? In general real estate appreciates but I’m curious to see your expected rate of return.
Feedback:
The response effectively acknowledges the prospect's concern about market unpredictability, which is a good start. It references historical trends and provides context by discussing appreciation during challenging periods, which helps to build credibility. However, the answer could be strengthened by offering specific data or examples of comparable properties that retained or increased their value during downturns, as this would provide more concrete reassurance. Additionally, while engaging the prospect by asking about their expected rate of return is a good move, it would be beneficial to further explore their specific concerns or criteria for evaluating property value retention. Overall, the response shows promise but should include more data-driven insights to instill greater confidence in the prospect.
5.
6
/ 10Question:
"I'm worried that the ROI just isn't justified with the current asking price."
Answer:
I understand and would think the same thing if I looked at straight numbers. The comps support the purchase price but I’m curious what you expect your ROI to be? Properties in this area do sell for higher than ARV numbers . Buyers typically like shiny new updated properties and will pay more for them. If we use basic investment formulas we may not see the value but if we look at the comps that were recently renovated and bought originally for less than retail price we will see that those properties sell for much higher than comps or expectations. I spoke with one agent who had 20 offers on a newly renovated home. Would you like to see that home? When you do renovate this home are you planning to just do a quick flip or a full gut? Perhaps if I look at the project as a whole I can share a true expected sale number with you. The comps unfortunately do not have a lot of renovated homes to compare so we have to dig a little deeper to get true value. Homes in this area also have less square feet than some others so if you are doing a full gut you will most likely increase that square footage and we would need to adjust the value and comps used to creat that value. Can we see what you plan to do with this home and reevaluate and see if the numbers seem better?
Feedback:
The response starts well by acknowledging the prospect's concern about ROI, which shows empathy. It also introduces the idea that comparable properties can support the purchase price, which is a positive angle. However, the response could benefit from a clearer presentation of specific data or figures, like actual ROI metrics from similar properties, to strengthen the argument. Additionally, while asking about the prospect's expected ROI is good for engagement, it could be complemented with more proactive insights on how the property can achieve a favorable ROI despite the asking price. The mention of buyers preferring renovated properties is valuable, but it needs to be tied back to how this specific property can meet that demand. Overall, it offers a collaborative approach but requires more data-driven insights and direct reassurances to effectively address the objection.
6.
6
/ 10Question:
"We already have a trusted agent; why should we consider working with you instead?"
Answer:
Thank you for even considering after mentioning you have a trusted agent! Is the agent a close friend or family member? Have you used them before? I can’t speak on their track record but I can definitely show you the things that set me a part from most agents. I like to work together with my clients to get top dollar for their home. I have sold several homes in the area and know the community inside and out. I have a team of agents who can assist me with anything as needed and have a large network of professionals and vendors to consult with or refer. I am not afraid to roll up my sleeves and am excellent at negotiations. I have seen a lot of agents come and go since Covid and during that time I doubled down and truly became an expert in my home selling. I have sold x homes and sold most 10-50k over asking. Would you have any conflicts either using or not using your trusted agent? Is there anything I could assist with that would help you decide? What do you think is your top priority? Selling for top dollar or selling fast? I will market the property accordingly.
Feedback:
The response demonstrates a positive tone by thanking the prospect for considering you, which helps to establish rapport. However, it lacks a strong value proposition that clearly differentiates you from their trusted agent. While you mention your expertise and willingness to collaborate, you should provide specific examples or results that highlight your unique strengths and successes in the market. The questions posed at the end are good for engaging the prospect, but they could be more focused on uncovering specific needs or concerns related to their current agent. Additionally, addressing how you can directly meet their priorities—whether it be selling for top dollar or selling quickly—would further enhance your response. Overall, the answer shows promise but needs more emphasis on your distinct value to effectively persuade the prospect.
7.
5
/ 10Question:
"Is there a risk that the property won't meet our operational needs if we choose this option?"
Answer:
No. This option has the all the operational expectations you mentioned you desired. I am confident with the number of X in income as well as X in expected maintenance costs provided that this suits your request perfectly. Is there something in the reports that make you concerned they won’t be suitable for your needs? I’d be curious to see where you saw the gaps. The cap rate is phenomenal but if you did come up short we can assist you in perhaps restructuring to becoming more profitable. We have been doing with for 15 years and have at times had to assist property owners with budget adjustments and rent increases. We can handle all of it and by using us you will not need other people to make those changes. Does that work for you?
Feedback:
The response begins by confidently addressing the prospect's concern, which is positive. However, it lacks specificity regarding how the property meets operational needs—mentioning specific operational expectations would enhance credibility. Additionally, while you invite the prospect to share their concerns and gaps, the use of placeholders ("X") detracts from the professionalism and clarity of your answer. It would be more impactful to provide actual figures or examples that demonstrate how the property aligns with their needs. Furthermore, while you offer future support for restructuring or budget adjustments, this could be stated more proactively, focusing on how your expertise will be beneficial from the outset. Finally, the closing question is good as it encourages a two-way dialogue, but it could be more direct in seeking affirmation of the prospect's understanding and satisfaction with the proposed option. Overall, the response is collaborative but requires more specificity to instill confidence.
8.
7
/ 10Question:
"I need more clarity on how this fits into our company vision moving forward."
Answer:
Of course it would be important that this aligns with your company’s vision. You mentioned to me earlier that you want to make housing more affordable for first time home buyers but you also want to be able to turn a profit. I believe that any good investor would want to make a profit. Your company provides first time home buyers with tremendous opportunity by creating new housing. Currently there are no homes on the market in this town. The average home price is 300-400k which is affordable but inventory is low. By you purchasing this for 100k and flipping it to sell for 350k you are reinvesting in the community. You also mentioned you want to buy 10 properties to flip in 2025 it’s January so we will be down to 9. Your company will make 10 families homeowners this year and that is huge! The comps support it and I know that getting these deals done is just as important to you as the cash flow out of them! Wouldn’t that make you feel great?
Feedback:
The response successfully acknowledges the importance of aligning with the prospect's company vision, demonstrating an understanding of their goals. It effectively reiterates their desire to make housing affordable while also emphasizing profitability, which is critical for any investor. Furthermore, it contextualizes the current market scenario, highlighting the lack of inventory and how the proposed investment can fulfill both community needs and business objectives.
However, the response could benefit from further clarity on how this specific property fits into their long-term strategy. Asking more targeted questions about their vision would enhance discovery and engagement. Instead of stating the benefits, you could also illustrate a clearer connection between the property features and their vision. Additionally, while the closing question is optimistic, it may come off as somewhat presumptive; a more open-ended question could encourage deeper dialogue.
Overall, the response is strong in understanding and addressing the prospect's goals but could be improved with direct inquiries and a more explicit connection to their long-term strategy.
9.
7
/ 10Question:
"What if we encounter unexpected documentation issues during the buying process?"
Answer:
Good question! It does happen but I assure you I have added a contingency in the offer that gives us 90 days discovery period. This allows us to do our homework before you take the property. We would have 90 days to uncover any missing documentation while also diving deeper into the business operations. The 90 day period is completely risk free. After that 90 day period the attorneys will have plenty of language in the contracts that protect you from liability, fraud or surprises along the way. Anything discovered before you sign for ownership is up for discussion. Some things can be resolved but some are non starters and in that case we can walk and you can get your deposits back. I’m confident with my assistance and reviewing the docs we will get to the closing table. Do you have a feeling something is missing already from the documents?
Feedback:
The response effectively acknowledges the concern about unexpected documentation issues, which is a critical aspect of the buying process. By introducing a 90-day discovery period, you provide a clear solution to potentially mitigate risks, which is a positive approach. Additionally, mentioning the risk-free aspect of this period reassures the prospect.
However, the answer could be improved by providing more detail on the specific steps you will take during the discovery period to address any documentation issues. For instance, outlining a process or checklist could lend further credibility to your assurance. Furthermore, the closing question is good for encouraging dialogue, but it may come off as slightly vague. A more direct question about their specific concerns regarding the documentation would enhance engagement and discovery.
Overall, the response shows a solid understanding of the concern and offers a proactive solution, but more specificity about the process and targeted questions could strengthen it further.
10.
6
/ 10Question:
"Can you confirm that the integration of this property into our current portfolio won't disrupt our existing operations?"
Answer:
I can see how that would be a concern. Most of the operations are already self run without any extra assistance such as rent payments, maintenance, and insurance. Some things that could become an issue such as emergency repairs or audits may require more man power but the cap rate on this property is twice the cap rate on the other properties you own. Dollar for dollar you will not endure additional costs but you may have to add a budget for the unexpected repairs. Do you want to do a spreadsheet using the numbers and cap rate to see if that budget still makes you as profitable as today? If not more? I do think adding more units to your portfolio will make your overall company more profitable and increase future ROI. This property is in a hot area and could double in value the next 5 years. If I had the money I would buy it myself. The store down the street just sold for 300% more than original purchase . The property got a great 7 year lease tenant too. This property insane profits could end up covering your entire budget on your other properties and thus making your company as a whole more profitable. How’s that sound?
Feedback:
The response begins by acknowledging the prospect's concern, which is a positive approach. However, it lacks specific details on how the integration would not disrupt existing operations. While you mention that operations are mostly self-run, more concrete examples or data could bolster your assurance. The reference to the cap rate is valuable, but the response could use clearer comparisons to existing operations to show how this property can be seamlessly integrated. Furthermore, proposing to do a spreadsheet is a good idea for clarity, but you could also proactively outline potential operational adjustments or contingencies for the integration process. Additionally, while you mention the property's potential for profitability, connecting those benefits directly back to the prospect's specific operational needs would enhance your argument. Overall, the response shows an understanding of the concern but needs more clarity and specificity to instill confidence in the integration process.