Salesmanship – Using “Tie-Downs”, Are You One of the Best?

A strong agent identifies the best points to make with a client and then explains the benefits of each point. This is called the “Fact/Benefit Approach”.  Simply put, you state a fact and then explain how the fact impacts the buyer or seller. Consider the following example with a buyer:

• The Fact – Prices have increased 12% in the past year.
• The Benefit or Impact – The buyer now has to pay more. A Trusted Advisor will then point out the risk of prices rising another 12% in the next year, based on recent trends. The agent will take it one step further by asking questions that entice the buyer or seller to come to the same conclusion as the agent.  In the example above, instead of telling the buyer prices could go up another 12%, the best agents will get the buyer to say this themselves. Here is how it might play out with the buyer above:

1.      The Fact: “Mr. Buyer, statistics show that prices have appreciated 12%.”

2.      Now the Questions:

• “If you had purchased last year, how much would you have saved?”
• “Of course, hindsight is always 20/20. We can’t do anything about the past, but we can minimize risk in the future. Because inventory levels continue to drop and sales are increasing, isn’t it likely prices will continue to appreciate over the next year?”
• “If you were to buy now, instead of waiting for prices to go up even more, how much could you save?”
• “Doesn’t it make sense to keep that money, instead of giving it to the seller by buying later?”

The key is to ask a question instead of making a statement.  The art of asking questions to close the deal is one of the most important and most difficult skills to develop.  Clients are likely to resist this approach because they recognize that sales people have an agenda or goal to get “the deal”. When your client answers the question, it’s not you telling them because you want to make a commission, it’s them telling themselves.

Consider an example with a seller:

1.      The Fact: – A seller is resisting a price reduction. A good sales person will do great research gathering the data that supports the value of the house, and then may say, “The comps and data show that you’re not likely to get the price you’re asking. I suggest you lower the price.”

A great sales person will use tie downs to get the seller’s agreement. These are called “Small Yes’s” or “Mini-Closes”. The great sales person will take the same data and ask questions;

2.      Now the Questions:

• “I know your home is different, but if you looked at the data I presented without seeing your home, you’d probably think a home like yours may be over-priced, wouldn’t you?”
• “Based on feedback from buyers, it’s possible you could be asking too much, isn’t it?”

“Wouldn’t it” and “isn’t it” are great examples of “tie downs”. The obvious answer to a tie down question is “Yes”, yet they don’t force the seller to concede his or her position. In other words, “tie-downs” are baby steps towards reaching the logical conclusion. Examples of tie-downs include:

To be the best, the rule to follow is, once you identify the logical conclusion you want the buyer or seller to reach, make every effort to make your statements questions by using “tie downs”.