The Hidden Power Of Giving First The Law Of Reciprocity Real Estate Sales Trainer And Coach podcast

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The Hidden Power of Giving First The Law of Reciprocity

3d ago 41:39

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Alright, let's polish up this transcript and make it shine! Here's a revised version with improved clarity, flow, and a touch of tightening:

Today, I want to dive into the law of reciprocity. For those of you who are new to real estate, welcome! I'm James Festini, your real estate sales trainer and coach, and this is the program designed to help you sell more real estate in less time.

So, the law of reciprocity… I like to think of it as when you consistently provide value to a client, they feel a natural inclination to work with you. It's not about creating a sense of obligation or guilt, where you give expecting an immediate return. That's not reciprocity; that's more like commerce. True reciprocity in this business blossoms when a consumer – and I primarily focus on listings – chooses their next listing agent based on one of two fundamental elements: love and money.

By "love," I mean a genuine connection, a special bond. This could stem from a referral, a relationship with someone they know from church, or even a nephew who just got their real estate license. You might see them choose this connection over a top-producing agent with deep local knowledge and a proven track record, simply because of that existing relationship. It's not necessarily reciprocity in this case; it's the power of a personal connection.

The law of reciprocity works similarly, but it's about intentionally cultivating that "know, like, and trust" factor. You aim to build such a strong sense of value that the consumer naturally chooses you. How many times have we lost a listing appointment to someone else simply because the client had a pre-existing relationship built on trust and familiarity? That's often the missing piece when we don't land the listing.

If you're engaging in consistent lead generation and follow-up, as I advocate, losing some opportunities is inevitable. You'll have a database full of contacts, and if you're making 100 outbound calls a day, you'll encounter homeowners who aren't immediately ready. I typically don't ask, "Are you working with another agent?" Most people volunteer that information. However, when you ask for their email to stay in touch, it subtly initiates a relationship where you'll provide value. The key is to offer enough value so that the law of reciprocity kicks in, making it difficult for them to imagine going with anyone else.

Earlier, I mentioned that consumers often choose based on "love" (relationship) or "money" (perceived higher price). Regarding money, you can sometimes win by promising a higher listing price. For example, on a million-dollar home, if one agent says it's worth that, and you come in and say, "No, it's easily worth $1.2 million," some homeowners, particularly those with ambitious (some might say delusional) expectations of a quick sale and bidding wars, might be swayed. It's fascinating how these impressions form, often based on a fleeting headline aligning with their desire to sell.

This reminds me of the reticular activator in your brain. Once you focus on something, you start seeing it everywhere. If you decide to buy a Tesla truck (which I'm definitely eyeing), suddenly you'll notice them all over the road. It's the same with real estate. As a consumer starts to get to know you and perceives your value, this familiarity grows, influencing their choice.

Now, while you can sometimes win with money, "love" – that strong personal bond – is often more powerful. Think about those agents who somehow land high-end listings despite presenting themselves poorly, maybe with blurry vertical photos taken on an old, cracked iPhone. It's baffling! I sometimes wish we could anonymously tell homeowners, "Hey, those listing photos are terrible for a $4 million property!"

The frustration of losing a listing to a less capable agent underscores the importance of the law of reciprocity. If you're truly good at what you do, you shouldn't just hope for reciprocity; you should almost expect it because you are consistently delivering value.

While you won't close every deal, I want to share a few powerful tools to help you cultivate that "know, like, and trust" factor and ultimately get chosen:

1. Consistency: This is paramount. Let's start with cold calling, which is a significant part of my business. When I make that initial call and establish that first spark – "Hi, I'm [Your Name] with [Your Company], calling to see if you've considered selling?" – your delivery is crucial. It needs to be sincere, reflecting your confidence in your abilities. If you're not the best at what you do, why aren't you striving to be? This job fundamentally requires market knowledge and genuine consideration for the client's needs.

Consistency extends beyond the initial contact. It includes following through on your promises. If you offer to send information and they provide their email, how quickly do you act? What do you send? A generic email has a high chance of getting lost in spam or forgotten. Remember, they might not be in the "ready-to-sell" mindset right now.

The consistency and follow-through create that crucial first impression, much like showing up on time (or even a bit early) for an appointment.

2. Commitment and Follow-Through: This ties directly into consistency. It's about doing what you say you're going to do. If you tell a homeowner you'll send information, do it promptly and professionally.

Think about arriving a little early for a listing appointment. Instead of rushing to the door, perhaps take a moment across the street to observe the property and jot down a few notes. If the homeowner happens to see you, it conveys a sense of preparedness and attention to detail. Ringing the doorbell precisely on time, after this brief observation, creates a subtle but positive impression.

This consistent professionalism sets you apart. It's like maintaining a constant, comfortable "room temperature" – a reliable standard in your interactions. You're tuning into their frequency, their "WII-FM" – "What's In It For Me?" Just like tuning into a specific radio station for holiday lights or a movie theater's audio, locking into their needs and expectations fosters reciprocity.

The law of reciprocity, while intangible, manifests in the tangible action of them signing the listing agreement. What differentiates you from the competition is consistently providing value.

3. The "Dub Slam" (Video Follow-Up): This is a powerful tool I use. When someone expresses interest in selling and gives me their email, instead of a standard "Thank you," I send a personalized video follow-up. In this era, think like a social media platform to keep their attention.

Using a platform like Dub (a sponsor of the show), I create a brief listing presentation showcasing my online marketing package, demonstrating its value, and giving a quick visual overview. This puts a face to the name again and leverages technology to create a memorable first impression.

I often ask for their cell phone number to send it via text as well. Imagine receiving a text with a personalized video showcasing a potential marketing plan for your home! It's impactful. With today's technology, you can even have AI tools remove things like cars from driveway photos for a cleaner presentation.

This level of personalized value makes it incredibly difficult for them to choose someone else. What are the chances other agents they're considering are doing this? Probably slim. While some consumers might now expect a high level of digital presentation, it's still not the standard, and it's a significant differentiator.

Remember, they need to know, like, and trust you to choose you. The "Dubb Slam" helps build that quickly and effectively.

4. The "Slam Package" (Physical Presentation): When I encounter a highly motivated seller who is close to making a decision, I stop everything and create a comprehensive listing presentation package. This isn't just a few sheets of paper; it's a well-bound, professional document, often around 30 pages, with a laminated cover.

If I get a hot lead, even if it's geographically a bit further, I'll often drive over and hand-deliver this package within 30 minutes of the phone call. This immediate action demonstrates commitment.

When you arrive, present the package and convey that you're just dropping it off for their consideration, without any pressure to invite you in immediately. Often, they'll start flipping through it right there. If they ask questions, the interview has begun! Be prepared with your answers regarding commission, listing duration, and your opinion of their home's value.

Always present yourself professionally. If I don't have a formal appointment, I'm still in a suit. You never want to be caught off guard.

5. The Power of Direct Mail (with a Twist): In our digital world, a physical piece of mail can stand out. For motivated sellers, I use Mojo to automate the process of sending out personalized letters. It might cost under a dollar, but the impact can be significant.

However, my letters aren't just standard text. I include a real estate-related cartoon – a little unexpected surprise, like the prize in a Cracker Jack box. It's a small detail that can catch their eye and make your letter more memorable.

I schedule a follow-up call about three days after the letter is sent. When I call, I can reference the cartoon to jog their memory. These small, consistent touches reinforce your value and keep you top-of-mind.

By consistently implementing these strategies, you create a strong foundation for the law of reciprocity to work in your favor. When you ask, "Ideally, when do you want to see a moving truck in your driveway?" it evokes a more emotional and tangible response than simply asking when they want to sell.

Remember, people don't want to be sold; they want to be led to the right conclusion. As real estate "sherpas," our job is to guide them with trust and expertise.

Even with all this, you might occasionally lose a listing unexpectedly. Don't dwell on it. Those might not be your ideal clients. Focus on consistently providing value and playing the numbers game.

Thank you for tuning in. If you're interested in one-on-one coaching to master these techniques, including the "Dub Slam" and CMA presentations, you can find me at jamesfestini.com/training . Remember to subscribe to my YouTube channel for more content.

This episode is brought to you by Mojo Selling Solutions, Dub, Cole Realty Resource, and Zentap. Be sure to check out my book, "Dynamic Door Knocking," on Amazon and Audible. For ambitious agents looking for growth opportunities, consider joining my team at EXP Realty. You can find direct links in the show notes. And don't forget to join me every Friday at noon Pacific for the Festini Nooner live on YouTube. Now, get back to work!

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The Hidden Power of Giving First The Law of Reciprocity

Real Estate Sales Trainer and Coach

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published 3d ago