New Home Sales – Closing Techniques

We’ve already learned that to be the best of the best in new home sales we have to ask for the sale because 60% of my competition isn’t. We have also learned that we must not allow negative thoughts to control our actions and we must practice having an Attitude of Gratitude. And now we know that we must be prepared to ask for the sale minimizing the possible rejections and objections that we will find. Now you’re probably wondering, “How do I do this?” It’s easy to write about it and easier to read the theories behind it, but how do we apply this today? Values! We must put into action the material that we are internalizing.

There are multiple styles of sales closing techniques that have been discussed over the years. As I mentioned earlier, generic sales manuals have taught many salespeople techniques to improve their sales skills. I would venture to say for myself that although these have been shown to be effective, the closing techniques used 20 or 30 years ago may not be as effective. As time goes by, consumers become more informed about the products they buy. They are also aware of the techniques taught by sales trainers. If you sat down with an educated business professional and tried Ben Franklin’s closing (listing the positives of the purchase on one side of the paper and listing the negatives on the other while the positive column is longer than the negative), the consumer may be offended. Therefore, you just lost the sale.

However, there are some techniques that, when used at the right time, work. Figuring out the timing will take practice, but it usually comes naturally when we’ve earned the right to ask by building rapport and trust.

o The power of the three closures: cost, quality and time combined are the classic business measurement trilogy. As salespeople, we use the power of three to summarize why a prospect should buy. Incentives, Products and Benefits are three examples you can use. For example: “If you buy today, we can pay for your closing costs, prepaid expenses, and title insurance policy.” Or: “The house you just saw is better looking, better built, and better equipped than any you’ve ever seen. Right?” By using the “Power of Three”, you create an uncannily compelling reason to buy.
o The alternate closure – This is also known as the “either/or” closure. This closing technique works when we have already assumed that the buyer is going to buy, it’s just a matter of which. For example: “Would you prefer the house with the red brick or the beige stucco?” At this point, it is very rare for a client to reply “none”. Typically, the prospect is deciding between what he considers to be his two best options.
o The assumed closing: This technique is similar to the alternative closing because, again, we assume that the buyer has already made the decision to buy. This is accomplished by taking the prospect to the next level by asking, “When would you like to move in?” or “What will your friends and family say when you tell them about your new home?”
o The Multiple Closing Yes (Close Minor Points) – This type of closing technique can and should be used throughout the sales process. By getting the customer to agree to minor points during the sale, it’s easier to get to the big “yes.” For example: “You mentioned that gas appliances were important to you. Are these the types of appliances you had in mind?” “When you mentioned solid surface countertops, is this what you were looking for?” “Isn’t Radiant Barrier Roof Decking a great energy saving feature? It would pay for itself over time by lowering your energy bills, wouldn’t you agree?”
o The Smooth Closing – This closing technique again works with the primary assumption that you start filling out the paperwork. When you fill out all the forms for them, it takes away a level of stress that may cause them to take it home so they can “think about it.” It would be a good idea to include the loan application package as well. Many times, he would use this by asking them to clarify the spelling of his name and address as he began to enter his information into the computer.
o The Summary Close – This is the simplest and most powerful close you will ever use. After spending time with the prospect, asking questions, and demonstrating the features and benefits of the home to meet their needs, all that is needed is to summarize the key points of interest to them in one package. For example: “So, in addition to the floor plan you love, you’ll get a nice covered patio, a fireplace for your enjoyment, and a large yard for the kids to play with the dog. How about that?” This works by repeating what the prospect has already agreed to. It just sounds better in a package. Combined with the “Multiple Yes” closure, this is extremely powerful.

As stated above, it is imperative to remember that closing the lead with the wrong intent can and will lead to lost revenue by losing the sale. Closing techniques to avoid are:

o The Compliment Closing: The potential customer generally acknowledges complimenting people to gain their favor. You will lose sincerity and respect.
o The distraction closing: when we try to close the sale of a prospect because we caught him in a weak moment, it can lead to an eventual cancellation. It’s a waste of everyone’s time and it’s just plain dishonest.
o The Doubt/Reverse Close – This principle is discussed that you show doubt in the product to get the buyer to disagree. It is absolutely ridiculous for a professional seller to show any doubts about their product.
o The Shame/Shame Closure: Making the prospect feel embarrassed or embarrassed only triggers negative feelings that will come back to them after they have left your office. Just thinking about you will reignite these emotions and cause them to avoid you in the future.
o The Deaf Closing: When the homebuyer offers an objection and you choose to ignore it, the buyer feels you don’t care. If he doesn’t know an answer, just say he doesn’t know but will find out and give you the answer.
o The rush closing: Similar to the “distraction closing”, rushing and not addressing the buyer’s needs or concerns will lead to eventual cancellation. Our time is too valuable to waste writing “bad paper.”
o The Puppy Dog Close: Acting cute to evoke a positive response is quickly detected as unprofessional. Many times, this can backfire as one partner may perceive you to be flirting with the other.

When we believe in the product we are selling in addition to knowing that we are providing a need to the consumer, we never have to resort to manipulation or dishonesty to convince the prospect to buy. This relates to whether your spiritual life is correct or not. When we choose to live a life of responsibility before God, our Spirit within us will not allow us to continue behaving dishonestly. It is much easier to make money by being honest with ourselves, our employers, and our family than it is to live a life of deception. Remember to sell with integrity!