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Interview With a Winner

Carroll Peel

Carroll Peel, RE/MAX 2000, Phoenix Arizona
2003 Sales Volume: $3 million plus
2003 Units Sold: 50
Average Home Price: $185,000 to $200,000

Sandy Dixon: How long have you been in the real estate business?

Carroll Peel: I've been with my present company for a little more than two years, and I've been in the business for almost eight years.

Sandy Dixon: Do you utilize any particular software in your business?

Carroll Peel: I did for awhile and then found out that it was not as beneficial as I had hoped it would be. Now I use different portions of several software packages. I use a little Excel, a little Word - a little bit of everything to put my own program together.

Sandy: Are you utilizing a palm pilot to keep track of your clients?

Carroll: Yes, certainly.

Sandy: Where does the majority of your business come from?

Carroll: Probably the East Valley. I make calls to cancelled or expired listings and FSBOs in the area.

Sandy: Making cold calls has always been a challenge for real estate agents. What techniques work for you?

Carroll: You have to figure out what their needs are, ask a few personal questions and, after awhile, what you say in each call will become pretty standard. There are programs available that include scripts - some for free from various title companies. You can learn from those if you choose to. They didn't seem to apply to my personality. Many included statements I would never make - not that there was anything wrong with them - but they just weren't me.

Sandy: How open are the sellers to talking to you?

Carroll: They are actually pretty open. I think that's because I'm friendly and I get directly to the point. I'm not a con artist or a used car salesman. I identify myself and what I'm trying to do. They either have an interest or they don't, and I move on. There's no hard sell or pressure of any sort. I don't pretend that I'm somebody else or that I'm interested in buying their house. I'm honest and forthright.

Sandy: I'm sure the sellers ask, "What can you do differently than the previous agent?" What do you tell them?

Carroll: I try to get together with them and find out in what ways the other agent disappointed them, in addition to just not selling their home. Quite often, sellers don't listen to their agents the first time around. I've found even more often that the agent has only been in the business for a year or two and does not have the experience needed to market a home or talk to a seller seriously about pricing. These agents don't educate the seller on what's really needed to sell the home.

Sandy: Do you have any advice for agents who need to discuss price with sellers?

Carroll: Some people are very set on a price - maybe they need a certain amount to keep from going into the red when they sell. You can not overcome a seller's realistic expectations. However, some are not realistic about their goals. I've told some of them, "We can ask a million dollars for your home, but unless you have a million dollar home, it is not going to sell. The longer it's on the market, the more likely it is that you'll get less money than you would if you had it in a medium price range." I explain to them how we go about showing the value of the home to the potential buyers.

When you're honest with people, and explain where you're coming from and how the process works, they usually understand. If you don't bother to explain, they think that you're guessing at prices. You can show them the comps and they can tell you why they think their home is worth more. Everybody always thinks their home is worth more than the market will bear - that's not unusual. In fact, I suggest they get an appraisal. When I sell my own home, I follow my own advice. I get an appraisal and base the price on the appraised value.

Sandy: How do you stay in touch with your past clients?

Carroll: I do a mailing once a month to my database. I get a lot of referrals from my database because I spend personal time and attention with my clients. It's very important to me that they are happy. I have a 70% referral base right now - and I'm working on 100%. For being in the business just eight years, my referral base is quite extensive.

Sandy: Do you find that you get much response from your website?

Carroll: I haven't received much response yet. To be perfectly honest, the site has only been up a short period of time. I've just established an 800 number so I can take more out of state calls. Establishing my own website and such has been a three-year project for me.

Sandy: How did you become interested in the real estate business?

Carroll: I've always wanted to be in real estate. While my children were young, I avoided it because I didn't think they'd benefit from the sporadic hours. Now my children are grown, and I can concentrate on my career and work my own hours.

I've worked in "people" jobs all my life and real estate is not what people think it will be when they go into it. They think they can get a couple listings and make a ton of money. That's not how it works. I think the best thing I ever did was work as an assistant for a top producer. He had been in the business for over 20 years and knew all the ins and outs. It's a great way to learn the basics, and then you can build your own systems from there. You usually have to split your comissions with the agent you're assisting for awhile, but I always looked at that as "tuition" if you will.

Sandy: What do you attribute your success to?

Carroll: I attribute it to starting out as an assistant and spending more than the average amount of time learning the business.

Sandy: I'm sure you had some preconceived notions about real estate. What surprised you the most as you were learning the business?

Carroll: I think the thing that surprised me the most, and continues to puzzle me, is that most people are stymied when it comes to selling their own house. There is so much information out there on how to sell a home. The general public has all kinds of literature available to them, and yet they don't understand the process.

Sandy: So you find that a big part of the service you're providing is education?

Carroll: Absolutely. It is a process of explanation and education. Much of the literature available only applies to certain areas, not everywhere. Yet the information is published nationwide. People need information and education for their own market.

Sandy: What mistake do you think new agents typically make?

Carroll: I think that most of them get into the business thinking that if they get a couple listings (from the relatives or the next door neighbor), they'll be established. However, those types of listings aren't long term. In less than a year, they are usually out of the business again. They are looking for quick money because they think that's what real estate is. They need to be going out and knocking on doors, making the phone calls, and basically doing the work required. They think it's easy - but it's not.

Sandy: Don't you feel also that it is essential to have a lot of different irons in the fire as far as marketing? They probably don't quite know how to get started with that.

Carroll: I do think marketing is important. If you send out mailers, you may get a call or two. You have to understand how many you have to send out in order to get even 10 people to call. Out of that ten, you may only get an appointment with one person who can list. You have to do everything in order to get something from here and something from there - and eventually it adds up.

Sandy: Consistency is important as well. A lot of newer agents see other agents get a listing from a mailing and then they expect that to happen for them within the first one or two mailings that they do - and that's not always the case.

Carroll: It's definitely not always the case. You have to be consistent and know the percentages. I'm a self-starter, some people are not. I make calls and prepare mailings every morning, 365 days a year. You have to be extremely disciplined or you won't be successful. Many agents don't bother prospecting when they have listings they're working on. Then all of a sudden they don't have any listings and they start marketing again. They don't market consistently.

Sandy: If you're making calls 365 days a year, how do you get time for yourself?

Carroll: I make it a rule to turn my cell phone off at 6 o'clock every night. I return any voice mails first thing in the morning. Real estate is funny. You can go a couple days without any calls. Then all of a sudden the phones are ringing. You have to be available at those times. It's a different type of job. That's why I didn't feel comfortable doing it while my kids were growing up.

When I go on vacation, no one even knows I'm gone. I take the cell phone with me and my office calls are forwarded. I never go anyplace that doesn't have access to fax or the Internet. I take forms with me so I can still work on counter offers and do what I need to do. With this type of job, I think you'll find that you either need to have a good crew in place to cover you for a short period of time, or you do as I do.

Sandy: Have you considered the team approach?

Carroll: I have considered it but I like doing my own thing. I'm at a point in my life where I don't want to be responsible for other people. Other people do things differently than I do. That's fine, but then I feel that I'm not in control.

One of the things I noticed when I worked as an assistant was that people would come to the point where they either didn't want to work with the person I was assisting or they were very angry that they couldn't reach him.

Buying and selling a home is very close to the same emotional status as marriage, divorce or death. It's something that most people only do once or twice in their whole life - so it's very emotional for them. If they can't reach you, even though it may not seem like a major issue to you, it is to them.

Sandy: Do you offer your clients any special services that are not offered by other agents?

Carroll: My presentation is all on computer. I'm very technologically savvy compared to most other agents. I think my clients like the fact that I have that knowledge. I've just recently begun to offer home staging. I have someone who can come to your home and rearrange things to make the home show better. Home staging is a brand new service that will eventually be included in my listing contract. In this market, you have to be better than the rest.

Sandy: What has been your most successful marketing campaign?

Carroll: Picking up the phone every single day and talking to someone. Even when I'm talking to my referral base, and I know that I just sold them a home six months ago, I'll still mention it. I'll ask if they know anyone who has a real estate need - a co-worker, relative or friend. Quite often, they will know someone. Maybe that person is only thinking about buying or selling, but now your name is on their mind, you've got their email address and they're in your database. Then they'll call you when they're ready.

Sandy: Looking back over the years, what has been the biggest challenge for you?

Carroll: The biggest personal challenge has been to actually go out there and do it, knowing that I'm the only thing standing in my way.

Sandy: Is there anything you'd like to change about your business?

Carroll: I've changed so much in the last two or three years already. I think that the best change would be to be open to change, because this business changes frequently.

Sandy: What are your goals for 2004 and beyond?

Carroll: I'd like to bring in more people to help out - to add value for my clients and to refer more clients to me. Word of mouth is the best advertising of all. For example, I have a gentleman I refer to for carpet cleaning. He calls me and gives me the phone numbers of FSBOs. If you're good to other people, they'll be good to you.

Sandy: How do you thank your buyers, sellers and those who refer others to you?

Carroll: I always give them a gift. The laws are very clear about monetary issues, and you have to stay within the guidelines. I might send a gift certificate to Home Depot, movie tickets or dinner tickets. I might offer them a landscaping credit or have their carpet cleaned. There are so many nice little things you can do. I try to choose the gift according to the client so it's more personal.

Sandy: Is there anything else that you could share with other agents who aspire to be more successful?

Carroll: I think education is the biggest thing. Not only am I a licensed agent, but I'm a licensed broker. I'm a certified residential specialist (CRS). To get your license in Arizona you attend a school and then are required to have 24 hours of continuing education every two years. There's no way you can stay up on technology and changes in the market if that's all you are going to do. You should check out other schools, courses and ways to learn in order to stay educated and a step above everyone else. It shows when you do your presentations and when you speak to people.

And another important resource:

Recent studies conclude that 93% of purchasers are satisfied with the agent they used, but only 11% buy from them again. Why? Because they don't remember their name.

Ask And You Shall Receive

Always remember to ask for referrals any time you can - at initial consultation, closing, and after. Use Referral Request Postcards to approach this request with a light hearted feel but strong message reminding clients that referrals are vital to your business.