KGCI: Real Estate on Air - 5 Steps to A Deal

Episode Date: July 10, 2024

Hello and welcome to the global luxury real estate mastermind with me, your host, Michael Valdez. Today's guest is me. So I did a session of Ask Michael a few weeks ago, and that had fantastic reviews. And thank you for everybody who was so kind in reaching out and saying that they loved that they would love to see more. So here we go. there's been a lot of questions that have been asked of me and I want to deliver the responses right off the bat here. So I'm going to read the questions. One of them is how do you start

working with a buyer? What is your recommended showing routine? Okay. Now let's break this down. You're going to work with a buyer or you're going to work with a seller. It doesn't quite matter. There are five steps to a deal. You prospect, you lead, qualify, negotiate, and then you close. Okay. Prospect, lead, qualified, negotiate, close. Let's break each one of them down. What's a prospect?

Prospect is anyone that you know. It's anyone that you're doing business with. Let everyone know you're in the business. is, you know, a good friend of mine says, do not be a secret agent. Let everyone know what you do for a living that you're there to serve their real estate needs. You're just as much of a professional as is their attorney, their doctor, or anyone else that is a part of that. You're bringing a sense of expertise and level of service that should be the same as every other professional when you take that chair at the table. Make sure.

that everyone knows what you are doing. Now, once you actually get somebody that is interested in your services, then they convert into a lead. Now, that lead has to be qualified. You have to ask the questions of that individual. So since the question now came for that of a buyer, let's go through that. Before you show anyone anything, you better have a great list of qualifying questions. Why are you interested in this property? Why are you interested in the size of the property? How will you use it? Is it your primary residence? Your secondary residence? How often will you be in there? Why don't you ask a question that very few individuals in the real estate business ask? What is your exit? strategy. When do you plan on leaving this residence that I'm about to get you into? And when those questions are posed to someone, you get them thinking. If they're coming to a certain city because they're there for their child education and they want to be close to the university, and you want to

be able to say, okay, great, so will this change in four years? Will you move out of this property then? If they're coming in for a job, for a promotion, do they anticipate that having a certain shelf life? Are they there for a certain period of time? That is super important to ask somebody because when you ask that question, they start thinking about it. So for them, it's now, wow, they've asked something that I haven't really thought about. So that's super important. So qualifying. So if somebody is there and planning to be there for 20 years, which is a really rare thing now,

but if somebody is planning to be there for 10, 20 years, then the price that you're paying today will matter less. If somebody is planning on being there for three years and flipping the property, whatever you get into today is critical and crucial. So in this environment, which is going to be a very much a seller's market, as it's been for many, many years. In my opinion, that's going to change quickly. So you want to make sure that you are telling somebody all the facts, that you have all the facts, and you're able to show them something that is right for them. So when you have those questions answered, you should then do a lot

of virtual tours. I don't understand agents that show people 10, 20, 30 properties. You're going to to confuse the client and you're not going to get a sale. You have to really understand what those clients needs are. You need to make sure they understand what their needs are and show them what they are. And then and only then shall you be showing them properties. You should start virtually, show them properties as much as you can online. We're in a technology-based industry now. people are very used to doing virtual openings and open houses and showings, make sure that you use your time wisely in your business. If it is something that you narrow down that somebody wants to go see in person, then that's when you go and show them that. Because they've already had the first showing, which has been the listing itself and the photographs, the second showing, which was virtual.

And then the third showing would be the one that you do in person. they already feel as though they're part of that property. So then you negotiate. Then you go into negotiation and you start thinking about what can you do? And remember, it's not just money. It's terms, right? So it's the idea of how quickly can you close if something is a purchase. How much equity do you want to put down?

If it's going to be a cash buyer, throw all the cash in and then refinance later. Cash is a much stronger, stronger offer right now. Terms are really important. So start thinking about all of that. And then finally, when you have a deal, shut up. Just close. I can tell you endless stories of people that have spoken and gotten themselves out of a deal once they had it to close. You only have to close it once.

Once it's closed, shut up and walk away. and just be able to service that client in the best way possible. So that's how I would show a buyer. There was a really long answer. Let me read another one here. How do I get into the luxury market at a young age? How do I get luxury listings this year? Simple answer, believe that you can.

You have to believe in yourself, but you also have to bring value to that particular client. So remember, we live in an age where information is in our fingertips. I can see anything on the computer, I am the internet. Everyone is in the same level playing field. So you're not going to tell me that it's a three-bedroom for $3 million, that's, you know, 2,000 square feet. I can see that.

I want you to tell me why. I should buy that listing. Why I should buy that property. What is the value of it? What do you think the future value of it is? And why? What's happening in the neighborhood? Why is it popular? Why is it $3 million? So you have to bring value to that listing that I cannot get on the internet. I want you to be the expert. So my advice to you, no matter what age you're at, my advice to you is become the expert in that area, in whatever you're trying to sell. And that could just be one building if you're in a very metropolitan city. That could be one building. I know a lot of agents that have built an entire career in New York City off of one building. And that's impressive. But that is the norm.

Become the expert. Understand what's there. Know who the doorman is. Know what restaurants are around. know what the school system is, know what the rating of the school system is, become that ultimate concierge and bring the value that you can to that individual. You will become that expert. You know, it was, someone told me something very, very wise. I will pay top dollar for an expert, but I won't pay a penny for a generalist. So remember that. Be able to send value and give value to somebody based on what you know that they can't get on the internet. Let's see what other questions we got. Let's see. Let's see. Let's see. How to break into real estate in other countries and how to begin agent attraction in other countries. That's a great question. I love that question.

So here again, it's studying the market, right? So let's start by wherever you are. So this is a global podcast. So I'm not going to assume that you're in the United States, but let's assume that you're in whatever area you're in, whatever city, whatever state, whatever country you might be in, and then start looking at where are the direct flights into your nearest airport? Where do they come from? look at them from a global perspective. You can do this online. Put in your city and find out what are the direct flights that come into your city. That's where your global buyers are coming from.

Someone's already done the research for you. All you have to do is sort of like look through it and be able to come up with a business plan. So let's just say that you live in San Francisco. and you see that there are many, many flights that come in from Asia. So now you have a lot of buyers that you can target because they're coming into your area. They're coming into the San Francisco area. So now what do you do with that information? Now you compile a list of who you have.

And now you try to figure out, okay, how do I get those buyers? Because by the time they land in San Francisco, it's too late. They've already spoken to somebody else. They already know what they're going to look at. They're already going to do a deal with somebody else that isn't you. So how do you get your value in their hands, in their territory, before they ever come and look at your listing or your properties or your area overall? So here are a few things to start thinking about.

Look at the associations that you can associate yourself with that's already in here, that are already dealing with these buyers. So if it was, if you were targeting Asia, for example, I have sat on the board of ARIA for many years. Aria is the Asian Real Estate Association of America. They deal with buyers that come in from every Asian country into the United States. They have a ton of research on those buyers and are able to give you a head start as to where to target And now, more importantly, how to target.

How do you target these buyers? There is cultural nuances that happen. There are things, for example, if you have an Asian buyer from a certain country and you present a deal where the deal and the number ends in eight, that's a great luck number. You're probably going to get that deal done, even if it's less money than what somebody else is looking at an offering. So understand cultural nuances. You're not going to become an expert, obviously, but understand that. The other thing that I would say is start creating your own network. So go in and start finding people that you can associate with. That could either be a colleague

that is in that country that you're looking at. And by a colleague, I just mean another real estate professional, not somebody that works in your office, although that would be, easier, of course, if you work for a global company. But someone who's a real estate professional in the country in which you're targeting, so let's just say it's mainland China or Japan or whatever the case might be, you go and associate yourself with another agent who is an expert there. And then you actually start creating a partnership. And you figure out what sort of referral fee you're going to give somebody that's going to start recommending buyers into, again, for example, the San Francisco area. You start working with them in that regard. You can also expand that.

Go to attorneys, immigration attorneys that are helping buyers that are coming into the United States, work with financial institutions, those that are funding the deals that are happening. Think about it from the other perspective. I would just start thinking about if I was the buyer from Asia coming, in to look at a property in San Francisco or in the United States in general, what would I need? So think about what that buyer needs in order to have a successful transaction happen. Everything from immigration help, from finance help, obviously the property itself. But go in and think about every step that is needed. Start creating your associations and your friendships with everyone that you need to,

in that regard. Now, when you actually land in San Francisco and you are the expert in that area, then you better be the expert in that area. I want you to be able to offer them everything from yacht rentals, the luxury car rentals if you are in the luxury sector, those things that will make that trip a lot easier for that buyer who is a serious buyer. They're going to look at you in a different way because you thought of them. You thought of whatever they were going through as they went through this process. So the easier that you make someone's decision to go and purchase something in your area, the more likelihood they are to close that transaction with you. So build your network is how I would say to get started in global real estate. Okay. Let's go to the next question.

So is it easier to have an empty home or stage a home? So look, it depends. If you are looking at a home that is a piece of art, that is a modern sculptural masterpiece, people can figure that out. Now, I would say start getting things out of the house that clutters the house. So you don't want any personal photographs there. You don't want anything that hinders somebody from making them see themselves in that home.

So the tricky part about staging is that you could stage in a manner in which a buyer comes in and it's not their style. So they're going to come in and sort of say, I can't see myself here because you've done ultra-modern and they're interested in a contemporary, in a tradition. home. And so they couldn't see themselves there. But if there was no furniture there, then they could sort of see it. I would also highly recommend investing in technology again, and this is very inexpensive. But I would start doing renderings in different styles for someone. So you have an empty canvas, and you start doing style, you start doing stage, virtually for somebody, and you start giving them different styles so that you have it for different consumers, and they can start seeing themselves in there living in that space,

and when they go for a physical showing, you'll know what they've reacted to. So if they've reacted to a contemporary style of furniture, then I would actually have those on easels when they come in, let them see the space in it with the front. furniture virtually, and in this case, it'll be in 3D on an easel. If they're traditional, just do the same thing and have the different styles in there. That to me is the easiest thing that you can do where you would appeal to the largest number of clients. Now again, if you've done the homework of doing the five steps of a deal with prospect, lead, qualified, negotiate, and close, that qualify step is an important step. You should know what somebody is wanting at that step.

So ask the questions, ask them what sort of architecture do you like? What sort of furniture style do you like? Make sure you know as much about that person as possible. Okay. All right. Where else do we have here? how does a brokerage impact agent's ability to grow their luxury market share? Oh, wow, what a great question that was. So here's what I say. I worked for a lot of companies and brands for many, many years. A lot of them were in the luxury space. And on a global scale, perhaps the brand opened something.

doors and people were more comfortable to deal with a particular brand. But here's what I want you to remember. People do business with people that they trust and like. That is the brand. You are the brand. You are the brand that is above whatever brand you're with. So people are going to do business with Michael Valdez or people will do business with whatever your name is because they trust and like you. The person or the brand, excuse me, the brand that you work with is secondary. I strongly believe that. You are the main reason someone is going to transact because you are the expert. If you've done your homework, you are the person that they're going to trust. You are the one that earned that seat at that table that we spoke about earlier. You are the professional. When I look at

my accountant, my lawyer, anybody else that is in my team, I look at the person that I'm dealing with first, not the firm that they're working with. And that's how I bring all of my professionals around me. So you are the person that is the brand first and foremost. So remember that always. All right. Let's see if we have any other questions here. We talked about that. How do I sell global luxury. We talked about that. All righty. What are your go-to strategies when promoting or selling luxury listings? Look, social media has allowed us to have a global stage. Look, this podcast, for example, is distributed in over 100 countries. I'm so humbled for that. We reach millions of people, the impressions that we have, I think of that 13, 14, 15 million impressions already.

And so the people that were touching is amazing. The power of social media is extraordinary. So how do I promote listings? I promote them by understanding who your audience is first. Targeted marketing is the most effective marketing. Targeted marketing is the most effective. marketing. So remember who your target audience is. You can go into any social media platform, create a marketing campaign, and target the people that you want to reach. So again, going back to that earlier example, if you have a luxury property in San Francisco and you're trying to target an Asian buyer, first of all, it may not be Facebook and Instagram. It might very well, be WeChat. And if you don't have a WeChat account, you should get one immediately. So it could be

we chat in July. So understand where the social media markets are in the market you're trying to target. So not only do you need to communicate with the right people, but you need to communicate with the right tools. So understand that as we look at a global buyer. But once you're on the right platform, then understand how you should communicate the messaging, right? So the idea is that you're selling a lifestyle. You're selling a lifestyle if you're looking at a luxury market. So the home is certainly important. But what else do I get there? What's around? Am I on the water? If I'm looking at a home on the water, show me the water for God's sakes. Show me what it looks like to have my boat docked on the dock of that property, show me what it's like to live there.

Show me what it's like to drive my Ferrari into the garage. Make sure that you're building a story, especially if the buyer is overseas or if the buyer's around the corner, it doesn't matter. Build a story as to what it's like to be there. So promote a lifestyle. That is what someone is buying in the luxury sector. They're buying a lifestyle. What is it going to be?

what's going to look like for me and my family to be there in this home. What's my day going to look like? What's my sunrise going to look like? What's my sunset? What's going to be my dinner parties? Show me, paint me a picture. Paint me a picture of why I should buy this $3, $10 million home that you want me to buy. What is it about it that's going to be there? And please don't tell me that it's got six bedrooms and five bats. I don't care. Tell me what the lifestyle is. Tell me why it's going to change my life. to pick your property over anybody else's. So promote it in a way that somebody can picture themselves living there with their family and what it's going to do for their family, right? And so that's super important. What else do we have? That is it on questions,

but I'm going to actually add a couple more things for you. The idea that I've gotten lately, I've gotten a lot of these questions lately, one of them came up and said, should I be in a team if I am a new agent? So the answer is that all depends on you. That depends on your sphere of influence. It depends on who you know, what you want to do, and what your experience is coming into this. So I was with a team when I first entered the real estate business back in 2004, and I came from a banking background. So I was with Deutsche Bank for 10 years before I entered real estate. And so I had a strong Rolodex of clients that were in the banking industry. And so my shift was a little bit easier into that luxury market.

But if you didn't have that, then I would sort of say that, team works for you. But I started on a team. And the reason that I did was because I didn't know the real estate market. I didn't know the real estate industry. And I wanted to learn it from someone that already done it. And so I was immersed in that team. And in less than a year, I learned what I needed to learn. And so then I started my own team. And the second year of my business, I ran my own team, which was incredibly successful and was ranked in the top 1% in the entire state of Florida at that given time. So know where your own trajectory is. It may not be a year. You might want to have more time, but you may not want to start with a team at all. It may be that you came from a real estate family

background. It may be that you already know enough about the industry to sort of like move into that next step. So really understand who you are, what your value is, what your pros and cons are, and what you're going to offer to a client, remember always, we are here to service others. The moment that you think it's about the commission you're going to make, you're going to lose that business. You're here to humbly serve clients in whatever price point you're looking at. It doesn't matter. It's the same in the luxury market as it is to Main Street market. You are there to serve a client's need and serve it humbly. And when you serve one family at a time, it's when you build your own business, your own reputation, it's something that you cannot take back.

Your reputation can be ruined in 10 seconds that it takes a lifetime to build. So remember that. Remember to always, always, always, have the client's needs first, foremost, and always. That is what you do in this business. That's how you build your reputation and your name. So that was a lot of scolding. but it's something that should be always, always, always, held close to the heart.

So that was my Ask Michael series for today. And I'd encourage you all to put your questions in. I'm going to be doing this periodically. You guys are reacting really positively to it. I appreciate that. I appreciate all of the support that all of you have given, this incredible podcast and the growth that we have had. So thank you for listening.

Thank you for your questions. Thank you for tuning in. And this has been the global luxury, real estate mastermind with me, your host, Michael Valdez.