S1 E15October 6, 2018·48 min·Michael Kane, Berkshire Hathaway HomeServices

How Michael Kane takes 30 to 60 listings a month using a reserve-auction strategy across northern Ohio

Michael Kane, a Berkshire Hathaway HomeServices team leader across Cleveland, Akron and Canton, takes 30 to 60 listings a month with a 12-agent team that prospects expireds and FSBOs from 8:00 daily. He sells about 125 homes himself, closes 75 to 80% of appointments, and uses a reserve-auction strategy to win and sell overpriced homes.

How Michael Kane takes 30 to 60 listings a month using a reserve-auction strategy across northern Ohio
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Key takeaways

  1. Takes 30 to 60 listings a month with a 12-agent team, and personally sells about 125 homes a year
  2. Runs a reserve-auction strategy with an auctioneer, selling over 300 hard-to-move homes and often driving price above list
  3. Doubled the business by doubling the service area after a Mike Ferry call, growing from about 150 deals to close to 500
  4. Closes 75 to 80% of listing appointments, shortened to about 40 minutes by a pre-listing packet and heavy pre-qualifying
  5. Encourages every team agent to call the same expired, treating in-team competition as a win rather than a conflict
  6. Carries hot leads on 3×5 cards and calls the most motivated, distressed or vacant-home sellers every day, multiple times a day
  7. Charges seven percent, plus an added auctioneer fee of about 3% when a seller opts into the auction

Transcript

00:00 — Welcome, the Vulcan7 challenge, and introducing Michael Kane

Ren Jones00:02

Welcome to Roadmap, how to take three listings a week until you’re ready for more. Each week we interview a great agent who is consistently taking two, three, four listings each week, sometimes more, and we have an exciting guest today. If you’re watching on the Vulcan7 network, you’ll have an opportunity to ask questions. Make sure to take a lot of notes, apply as much of their knowledge as you can, and then use the copycat principle. Let me introduce my co-host from San Diego, Carley Hathaway.

Carley Hathaway00:44

Hi everybody, thank you for tuning in.

Ren Jones00:48

How’s the real estate business in San Diego?

Carley Hathaway00:49

Real estate business is really good. It’s definitely a seller’s market, there’s not much on the market, so it’s a good time to be a listing agent for sure.

Ren Jones00:57

Great. Let’s talk about the Vulcan7 challenge first, and then I’ll introduce our guest. The Vulcan7 challenge — Bernie Gallerani did that instinctively when he started his business eight years ago. Once a month, shadow a great agent in another market who’s taking two, three, four listings a week. Either go two, three, four hours to an adjacent market where you’re not a competitor, or fly there, even better. Get there in the afternoon, have dinner with them if they’re available, go to their office early in the morning and shadow them all morning, take notes, record what they say, go to lunch with them, and head home. If you do that every month, at the end of a year you have 10, 12 great friends who are very successful, and you become one of them. I want to remind everybody we are also simulcasting the show on the private Lead Gen group on Facebook — they have 41,000 members now, so we have a large audience there today as well, and we’ll be pausing for a commercial message during the show as a thank you to the Lead Gen folks. Let’s welcome our guest today from Cleveland, Akron and a wide area up in northern Ohio — Michael Kane. Michael, welcome to the show, we’re glad you’re here.

02:33 — Reaching Michael, and doubling the service area

Ren Jones02:33

You’re really dominating that area. It’s hard to catch Michael standing still — I’ve learned that the hard way, I’ve been courting him to be part of our show for a couple of months now, and that just happens to be what it’s like when you’re successful, you’re on the go. So if they want to send you some business — I think you have a website or two — what’s the best way for them to reach out and get that referral to you?

Michael Kane03:02

They can call me direct on my cell phone, it’s probably the best way, 407-960-45 [number garbled in source]. Or they can email me at kaneteam@gmail.com.

Ren Jones03:20

Perfect. We’re a little concerned down here in Cincinnati that you may just take over. What cities are you covering now?

Michael Kane03:40

I’ve got to tell you, six, seven years ago I had a call with Mike Ferry, and I asked him how I could double my business. I was doing thirty deals, twenty miles outside of where my office was, and now we go pretty much sixty-five to seventy, seventy-five miles in any direction — obviously not north right now. So every major city we cover, Akron, Canton, Cleveland.

Ren Jones04:35

Basically just think northern Ohio — when in doubt, if it’s up that way, call him, unless it’s in the middle of the lake. So what’s a typical month? I know November, December is a little off, but typically for most markets, what’s a typical month for listings taken for you this year?

Michael Kane05:15

This year we completed, or just about completed — no month were we taking under 30 listings in a month. Very slow months, busy months, we’re taking 60, 70 listings in a month.

Ren Jones05:28

Awesome, that’s amazing. So 10 a week or 12 a week, whatever it is.

05:44 — A 12-agent team trained to prospect, and the daily schedule

Michael Kane05:44

It really comes down to mindset with our team. Our salespeople are trained — every day it’s germane to the listing — so I train our agents to prospect.

Carley Hathaway05:55

How many people do you have on your team?

Michael Kane05:59

We have 12 full-time realtors selling with me, and I still do about 20% of the business.

Carley Hathaway06:13

So your team’s also making calls with you — that’s your main source of producing?

Michael Kane06:19

Not all the agents, but the top listing agents, yes.

Carley Hathaway06:23

So that being said, what does the typical day look like for you and your team? Do you do role playing in the morning, when do you get on the phones? Walk us through a typical day.

Michael Kane06:36

This is essentially the perfect schedule for any agent working with me that wants to become a top listing agent. In the morning, do something that’s going to get you going for the day, whether it’s meditation, exercise to get the energy levels up, repeating affirmations, or music. Then every morning at 6:30 or 7:00, my lead coordinator emails everyone all of the Vulcan leads that morning, the expireds and for sale by owners coming in from the night before. They get them ready, upload them on the computers. We do a quick five-minute morning team conference call, just holding each other accountable, and then at 8 o’clock sharp they’re on the phones prospecting, calling for three hours. Then in the afternoon they’re doing lead follow-up, they take a lunch, lead follow-up and administrative work between 2:00 and 3:00, and after 4:00 they’re typically going on appointments.

Ren Jones08:00

That’s great. I think we’re starting to see why you’re doing thirty to sixty listings — everything’s focused on just that, contact with someone who potentially could list.

Carley Hathaway08:16

And when you’re calling, are you using Mike Ferry scripts?

Michael Kane08:23

100% Mike Ferry. If they try to do a variation, I redirect them back onto the script.

08:36 — Accountability: his sister Tina runs the numbers

Ren Jones08:36

So how do you set up the accountability? It sounds like you’re the accountability for the additional people looking for listings on the team.

Michael Kane08:50

Here’s the thing, we have a real strong support staff at the office. I’ve got my sister Tina, who’s basically the CEO of the company — she’s the sales manager and team manager, she runs all of the administrative people, and she’s in charge of holding everyone accountable to getting their goals. She’ll sit down with them and do an onboard meeting once they’re licensed, and she’ll get their monetary goals, figure out where they’re at financially and where they want to be. Then she and I discuss it and put a plan together for how they can get to their goal by the end of the year, and we let them know if it’s realistic or not. It’s broken down all the way down to the number of dials they make.

Carley Hathaway10:03

And what about you? How do you keep yourself accountable, making sure everyone’s on the phones at 8 a.m.?

Michael Kane10:11

I keep close track of my bank accounts, I watch the board every month. Trust me when I tell you, Carley, there’s accountability just by looking at sales goals as to where we want to be. If we’re not on track, I’m pushing harder, regrouping, prospecting more with my salespeople, and making sure that if they’ve got a solid listing appointment they need me to go with them on, I’m there. I’m constantly reinforcing everything we preach and teach, and pushing them to become great at everything.

Carley Hathaway11:07

So Tina’s got that all set up, tracking all the individual people — any other visible boards?

Michael Kane11:20

I have one here, but she has a really nice Excel spreadsheet broken down that shows how many houses they’ve listed each month, how many transactions they have written for the year, and where they were last year. So she has records showing where they’re at, what their goals are, where we’re heading for the year, and whether we’re ahead or behind our goals.

11:52 — Helping new agents shake off the no

Carley Hathaway11:52

Let me ask you this — when you bring on a newly licensed agent and they’re getting on the phones, what is their biggest hang-up in the beginning? What are they getting stuck on, frustration and things like that?

Michael Kane12:07

Rejection. We get a no and immediately — I have a lot of agents I have to change the mindset of, thinking bigger and moving on, not letting it get in their head. Our agents are very trained — the first thing we have regimented is working with them directly, role playing, learning how to present over the phone and in person. That’s the biggest thing, the objection, the no, someone hanging up on them. Immediately I’m like, “All right, let’s go to the next one.”

Ren Jones13:05

When you look at it, Michael, that is the biggest challenge a lot of people watching have. When they come into this, they get an objection and then they feel like they need to get off the phone quickly, instead of staying with it a little longer and a little longer. How do you teach your folks to get past that? How did you get past it? What should we tell the folks watching?

Michael Kane13:37

I think if you do certain things with your business plan — you put together your vision board as to where you want to go, what you want to have in your life. I’ve got my vision board, my kids, my family, my team members on there. If they have that strong mindset of where they want to go and they have it in front of them every day, then getting to the next call is easy, especially if they see that new car or new house they want to buy. So we really push them to the next level, where they’re thinking, “I’ve got to get another contact, another appointment, another listing, another sale,” and bulldozing through the negative feedback they might get. They’re looking at that dream board — places they want to go, things they want to have and do — and that’s the carrot to stay on the phone a little longer.

14:45 — The prospecting war room

Ren Jones14:45

I imagine there’s a collective effort there — are they all calling from the same place, all around each other?

Michael Kane14:51

We have a prospecting room. Right now we’ve got a war room — it’s a small room, maybe 12 by 12, we’ve got three computers in there, sound-deadening walls so it’s not super echoey, and we have our Vulcan7 on all the computers and they’re prospecting from there. Typically two or three agents at a time, sometimes more, and now we’re moving it out to another area, a lot bigger, to keep a conference room with three-net prospecting as well.

Ren Jones15:47

Nice, you can keep building this out.

Michael Kane15:52

I have no intention of stopping. Check back in a couple of years.

16:03 — Maintaining a 25,000-person database

Ren Jones16:03

The people you know and the people you don’t know — what’s the balance with the team? You’re bringing in a lot of new business, so you must have a lot of people you know now. How are you working that database, and who are you adding and how?

Michael Kane16:22

Right now, on all of our past clients, every time a sale goes through, our closing team takes that client, makes sure we get the new address and keep in contact. I think we’re doing three mailers a year, then I’ve got their email addresses, I’m doing video blogs twice a month to them, and we send email blasts to them as well. And we’re building the bigger database — we’ve got a ton of people through our Commissions Inc website, and we track everything, so anytime we get a new client, every month we’re updating our database. I think we’ve got 25,000 people in the database. I’m trying to go through and trash the bad ones, because there’s a lot of bad information there, and then we video blog and email them. It’s a process, but I think that’s not where the majority of business comes from — that’s just one more piece. The majority is maintaining our database and our contacts. The real business comes from regenerating by prospecting. That’s how I built my business 20 years ago, and I’ve been a strong believer in getting up every day and on the pavement.

Ren Jones18:00

Toe to toe, phone to phone, face to face. What did they have 10, 12 years ago — dialers, and you were double dialing, sometimes triple, with a phone on your head, hanging up on people, apologizing?

Michael Kane18:23

Certainly things change, but it’s all the same business.

18:28 — How he handles buyers

Carley Hathaway18:28

You’re obviously taking a ton of listings — how do you handle buyers? Do you work with buyers?

Michael Kane18:33

I work with personal clients of mine — a real close friend, a family member, certain clients I’ll work with directly. All of my sellers, if they’re not working directly with me, are working with one of my buyer agents. I don’t do a ton of buyer sales a year — it’s like 10% of my personal business. I’ll sell about 125 homes a year myself, and of those I might have 10% in buyers.

Ren Jones19:12

There’s so much property, you’ve got a lot of homeless people — that may be the fastest buyer you can get, they’re going to have to move out. Those are the buyers that come in on your personal listings. You’ll do some yourself, but somebody on that team, if they have nowhere to live, you’ll help them.

Michael Kane19:43

Yeah, no question, don’t turn money away.

19:53 — A live expired role play

Ren Jones19:53

So expireds and FSBOs — you guys have a pretty good mastery of that.

Michael Kane20:00

Expireds have been our bread and butter — the majority of our listing sales over the years have been expired listings. A little more challenging this last year because the market’s gotten a lot better in the last two years, but we still sell a ton of expireds.

Ren Jones20:27

You want to try a role play? Is that something you’d be open to?

Michael Kane20:44

I’ve got my expired script, if you want to do that one.

Ren Jones20:47

Carley, did your house expire? Let’s say your house expired, listed for 90 days. Let’s go through it.

Michael Kane21:01

Ring ring.

Carley Hathaway21:04

Hello?

Michael Kane21:06

Hi, is this Carley? Hey Carley, this is Michael Kane with Berkshire Hathaway HomeServices, I’m calling about the home for sale over on Smith Street. I’m sure you figured out that your house came up as an expired listing, and I was calling to see when you plan on interviewing the right agent to get your home sold.

Carley Hathaway21:23

You know what, you’re like the ninth person that has called. I’m just not interested, I really need you guys to just stop calling me.

Michael Kane21:31

I completely understand. It’s crazy — how do you think I feel every day? So when you sold this home, Carley, where were you going to move to next?

Carley Hathaway21:41

I’m planning to move to New York.

Michael Kane21:45

Okay, that’s exciting. How soon do you have to be there?

Carley Hathaway21:50

As soon as possible, to be honest with you. We thought this home would have sold — my house is gorgeous, I just don’t understand why it wouldn’t sell. I customized everything, it’s beautiful, I put in like hot pink walls, it’s gorgeous.

Michael Kane22:02

I know, I saw that. That’s one of the things I’d like to talk about. I pull it up on my computer and look, it’s a fantastic home. What do you think stopped it from selling?

Carley Hathaway22:14

Honestly, I couldn’t tell you.

Michael Kane22:18

You’re not sure. Look, this is not my area of expertise, and I think that’s something you need to find out. Now, how did you happen to pick the last agent?

Carley Hathaway22:29

It was a friend of a friend, I got referred.

Michael Kane22:35

Got it. And what did that agent do?

Carley Hathaway22:40

Obviously nothing. Now they should have sold my house.

Michael Kane22:51

Right. Let me ask you, what would you expect from the next agent you choose?

Carley Hathaway22:57

Sell the house. I mean, it’s not that hard, your guys’ job is not even hard, I don’t even get it.

Michael Kane23:06

Well, I have to tell you, you might say it’s not that hard, but the home didn’t sell. So I have to ask, have you already chosen an agent to work with?

Carley Hathaway23:17

No, I haven’t.

Michael Kane23:21

I’d like to apply for the job of selling your home. Are you familiar with some of the techniques we use to sell houses?

Carley Hathaway23:26

No, what are they?

Michael Kane23:29

That’s a fantastic question. What would be the best time I could come out, look at the property, and show you how we can sell it — Monday or Tuesday at 4:00?

Carley Hathaway23:37

Really, I just don’t understand what you would do differently than my last agent.

Michael Kane23:42

That’s a great question. We have a whole tool belt of things we do differently.

Carley Hathaway23:49

Like what?

Michael Kane23:51

I’d like to talk to you about that when I come out and meet with you. I first want to evaluate the property, determine what methods we can use this time around to get it sold and market it differently. What would be the best time, Monday or Tuesday?

Carley Hathaway24:04

How about like at 9 o’clock at night?

Michael Kane24:07

Okay, I have time in my schedule for 9 o’clock Monday night.

Carley Hathaway24:09

I’m not painting the pink walls, either.

Michael Kane24:11

That’s okay, that’s something we’ll discuss when I’m with you. I’ll look forward to seeing you Monday at 9:00 p.m. And before I come out, do you have any questions for me?

Carley Hathaway24:23

No, I mean, you seem like a nice guy. I’m willing to meet with you, but I’m not making any promises.

Michael Kane24:28

Okay. After that, I’ve got the appointment, and I go into my pre-qualifying script.

24:38 — The reserve-auction strategy for overpriced homes

Carley Hathaway24:38

So how do you handle it if they have their house way overpriced? Do you take those listings?

Michael Kane24:46

I have several things we do. I certainly don’t turn it down over the phone — I want to meet with them and see the house, because I never want to discount the value of a property before seeing it. But we do have a few methods to overcome that objection and help people looking to sell for higher than what the market’s bearing. One of them is my auctioneer on our team, the reserve auction he uses. For example, a house listed at $400,000 that’s really only worth 350, with no showings and hardly any activity — they’re wondering, “If I’m not getting any showings, how can you possibly sell the property?” I get that all the time. So I discuss value, I tell them my opinion, I tell them they’re not locked in to having to get a specific amount with us, but if we advertise and list it and then start the auction approach with an opening bid over $299,000 and a reserve of, say, 370, then we have it for sale by auction.

Ren Jones26:21

So you use the auction process to let people see how high it’s going to go.

Michael Kane26:27

Yes. We work with the auctioneer — we explain to them beforehand, if it’s worth 350, and they want 370, then rather than listing it for sale at 379,9 when it’s worth 350, where they’re not going to get anything, what I suggest is: let’s open up the bidding at 299,000, and you, Mr. Seller, can set the reserve as to what you have to get, whether that’s 370 or 380. It’ll start immediately when we list the property, and you’re not required to take any offer regardless of how low it is.

Ren Jones27:22

That’s a great strategy.

Michael Kane27:26

In the last seven of the eight years, we’ve sold over 300 properties using that approach — homes that couldn’t sell — and we’re getting great prices, fair market value most of the time.

27:51 — The pre-listing packet and a 40-minute appointment

Carley Hathaway27:51

So do you send over a pre-listing package before you go to the listing appointment?

Michael Kane27:56

I do. It includes our listing agreement, my proposed price so they see it in advance, a copy of our marketing brochure, and a form so they can answer questions in advance. So between the pre-qualifying and the pre-listing packet, that cuts the time at the property way down, and it’s a much more powerful presentation. I answer a lot of the questions in advance, so the appointment shouldn’t take more than 40 minutes.

Ren Jones28:57

We’re getting a few questions on the auction process — they want to know, how do you come up with a price for your MLS when you’re running an auction like that?

Michael Kane29:08

You have to study the market and know what the house is worth based on comparables, then price it low enough that it’s below your direct competition. The advertised suggested starting price — auctioneers call it that, it’s their term for what we’d consider the list price — you don’t want that number anywhere near fair market value, because it won’t have that high demand and the auction effect.

Ren Jones29:43

Right, it’s kind of like eBay.

Michael Kane30:14

If you look at these list prices and where they ended up, it’s pretty incredible how much more you can get. For example, right here you can see the suggested starting price was 299 on this house, and it sold for 375. It was listed previously for 587 days, and we sold it in a total of 79 days. In most cases we’ll post it at $50,000 increments — depending on the price, a $100,000 house we’d probably place at 75 for the starting bid, and a $250,000 house we’d place accordingly.

31:17 — The batting average, and closing until they sign

Carley Hathaway31:17

It seems like a really great strategy to overcome people pricing their homes too high, plus getting the listing versus your competition. What’s your batting average — you go on ten appointments, how many listings do you take?

Michael Kane31:31

When I go out on an appointment, I’m taking between 75 to 80 percent of the listings I go on.

Carley Hathaway31:38

So roughly four out of five. And then either you don’t want them or they don’t want you, it goes both ways?

Michael Kane31:53

If we’re not in agreement, I’ll apologize and tell them I can’t help them and wish them the best of luck, and if it changes, to call me.

Carley Hathaway32:09

On the Q&A, Dan asks — do you get them to sign there at the listing appointment?

Michael Kane32:16

I do everything I can in my power to get them to sign the contract when I meet with them. I’ll close three, four, five, six, seven times until they sign. They’ll throw everything at me, and when they say, “Thank you so much for coming out, we appreciate the opportunity, we’ve got two or three more agents we’re meeting with,” or “We’re going to think about it,” I’ll say, “Two or three minds are better than one, why don’t we talk about what you want to think about?” and then I bring out those objections. Sometimes if it’s a simple objection — “We’re really not comfortable with this price” — I’ll say, “Why don’t we try it at 379,9 at your price, but after two or three weeks with not much activity, we go to my price?”

Ren Jones33:18

How many times do you get the listing that you wouldn’t have gotten if you’d walked out the door? You’re just demonstrating what they want — someone with persistence, a closer. That’s who they need for their house. They realize you’re a powerful closer, and that’s who they want representing them. If you’re a lay-down and you walk out just to be a nice person, neither one of them…

Michael Kane33:49

Yeah, that’s the same thing with my commission — if I’m really weak and I give a discount on my commission, how quickly do you think I’d be willing to discount their price when negotiating?

Ren Jones34:01

Exactly, people want somebody strong. You’re modeling it, demonstrating it — we’re selling, and we’re able to demonstrate what they’re buying, which is a strong listing agent.

34:14 — Why multiple agents calling the same expired is a win

Carley Hathaway34:14

This has come up two or three times on the Q&A — when you have more than one person calling an expired, say you and two others from your team, how do you coordinate that? People have this idea that only one of you should call, which as we know, actually all three of you should call the same person. How do you structure that?

Michael Kane34:43

First of all, my market is different than a lot of parts of the country — my market area is 60 or 75 miles across, so we have a lot more expireds, a lot more for sale by owners, a lot more coming off the market. Being in Cleveland, it’s not like Miami or Los Angeles where market time is five days — our market time now is like 45 to 60 days. So we have a lot more homes that come off the market, but there’s enough for our salespeople. To answer the question, all of my salespeople are on a group text, and as soon as they set an appointment, they text the group, and that lead is off limits — no one can call them after that. But I don’t mind all my people calling the same expired. If it comes up and three people call them, who cares? I have four, five, six agents prospecting every morning, and if they’re calling the same people and someone says, “You’re the fifth person from Berkshire Hathaway,” isn’t that great? Obviously he’s working today. The idea that only one should call is crazy — I don’t know why people think that. They’re competing with all the other agents anyway, so if you compete within your team, that creates a win-win.

36:40 — Doubling the business by doubling the service area

Ren Jones36:40

What about geographically — do you have areas of emphasis, are you targeting the luxury market or anything?

Michael Kane36:53

Like I said, when I did my call with Mike Ferry a couple years ago and he got me to double my service area, that doubled my business. Ten years ago it was about 150 deals a year for five of us, and we doubled — we’re close to 500 homes now, with more realtors, by going after a bigger service area. I don’t think you should limit yourself — if you feel like you can service that listing, there’s no reason you shouldn’t go out there, even if it’s a little further. For me, my mindset, and this is what I tell my agents, is I don’t care if it’s a hundred thousand dollar listing or a fifty thousand dollar listing — if it means going two hours of your time to get the listing, why not spend two hours, list the property, and control the market? We’ve got the largest inventory of homes in our area, carrying anywhere from 150 to as much as 250 listings.

38:22 — Working FSBOs and the hot-lead 3×5 cards

Carley Hathaway38:22

People are asking about FSBOs — any advice on calling for sale by owners and overcoming really tough objections?

Michael Kane38:33

We have a lot fewer for sale by owners, because it’s a harder market to sell and it’s not a hot little market. But we do call FSBOs just as regularly as we do expireds. It’s a longer process — you get the leads over a period of three to six weeks before you actually list the property, harder work, but we work them.

Carley Hathaway39:10

So if you have a FSBO and it takes a few weeks to finally get it listed, how often are you calling them?

Michael Kane39:30

My lead follow-up won’t be the same for every lead. Michael, this is my gold mine — I carry all of my hot leads on 3×5 cards in my pocket every day, and I take notes on them. The most important things are their name, contact information, the address, the date I last spoke to them, and where they’re at. I’ll typically call them until they list, one way or the other, but it depends on the lead. If someone’s holding an open house on Sunday, I respect that and don’t call until after the open house, and I’ll drive by to go to their open houses. Every lead is different — in some cases I’ll door knock, in some cases keep calling until they set an appointment. And if we know it’s a vacant house, they have to sell, they’re motivated, distressed financially, they’ve got to get this home sold — we’re calling every day, multiple times a day. Those 3×5 cards are the hot list, the people that have to sell quickly.

Ren Jones41:13

He sleeps with them, you know what I mean? It’s gold, that small group of people. You have leads and you have leads, and some of them are going to take action very quickly with your competition, so you have to stay on top of it.

41:44 — Charging seven percent, and the auctioneer’s added fee

Ren Jones41:44

I noticed on the listing you charge seven percent?

Michael Kane41:48

Seven percent, as to what it’s worth. I typically put the gross commission on there.

Ren Jones42:06

You too can make a $42,000 commission check in Cleveland, Ohio — and he’s doing it right. And any probate? People die, they need to sell, they don’t want to buy, because they’re not alive. I think his video froze — Michael, we see your picture frozen. Let me ask you, Ren — what do you do to create a sense of urgency to get people to sell?

Ren Jones42:43

You don’t create it, you can’t create it. Michael, we see your picture frozen, hopefully we’ll get that back, but you can’t create urgency — what you’re looking for either already exists or it doesn’t. I think we lost him, and he may or may not dial back in. You can’t create it, you’re just calling enough people to find it. It’s like, how do I motivate somebody to buy? You don’t — you talk to enough people. A lot of agents watching want to motivate somebody to buy or sell instead of making more calls, but if you make more calls, you’ll find the person that has a core motivation. You can’t instill that in them.

Ren Jones43:34

So you’re back. Matt wrote in and asked how you create a sense of urgency, and when your picture froze we just answered it — you can’t create it or motivate somebody to buy or sell, you just have to keep making contacts until you find that core motivation.

Michael Kane43:57

I think that’s always key, whether you’re on the phone with customers or in person — it’s very important to ask the questions and find motivation. You have to know that before you come out and meet them.

Ren Jones44:14

Yeah, it’s call reluctance — “I don’t want to call more people, I just want to get the people I’m working with to buy.” No, you have to call more people and throw those in the trash.

Michael Kane44:29

One thing I’ll mention with our auction approach with my auctioneer — we don’t just make six or seven percent, we actually charge the seller 3% if they want to do the auction, on top of the listing commission. So in some cases we’ll charge nine, ten percent on the listing. He has a minimum standard as well, so if it’s a low-price listing, he’s taking a higher percentage. But there’s a return on investment there, it’s a good value for them.

Ren Jones45:11

You’re coming in with an armload, a tool belt of things you do, and a lot of agents come in with a little tiny belt. You have a tool belt full of things, so they’re getting value, a higher price, and it sold.

Michael Kane45:24

We sell properties in a shorter time, and in most cases at fair market or better. In some cases I’ll sell them for so much that the appraisal comes in too low, and we have to adjust down, but the seller’s more than willing because they’re just happy to have it sold at fair market.

Ren Jones45:53

That’s your challenge, because you drive that price north and create that auction frenzy, and then you get an appraiser, which is a whole different dance, but you can work through some of that.

46:02 — An open book, and closing thanks

Michael Kane46:24

One thing I’ve always been a huge fan of is sharing our team ideas and what we do — I’m an open book, I always have been. I’m never in fear that anybody’s going to take away from what we do, so if there’s ever any questions or strategies people want to learn more about, they can contact me and I’m always open to share and discuss our ideas.

Ren Jones47:00

That’s very kind of you. And while we’re on that note, I want to thank the people at Lead Gen on Facebook — the Lead Gen Facebook group, facebook.com/groups/gotobjections — and I want to thank Aaron Wittenstein for his expiredmasteryelite.com. He’s a good give-back guy who’s helped a lot of people find their way in this business and make a lot of money. And obviously, thank you Michael, and Mike Ferry for all the work he’s done. If you want to text anything about the show, or you didn’t get your question answered, you can text me direct at 513-409-1625. Thank everybody for being on here, thank you Michael, I appreciate it. And if you’ve done your lead generation, made four, five, six hours of calls like Michael — maybe he’s doing ten hours — get a big spoon and get some nice delicious Graeter’s mint chocolate chip ice cream, you deserve it. Have a great week everybody, we’ll see you next week with another exciting guest who’s taking three, four, five, or in the case of Michael, ten listings a week. Thanks for joining us.

Questions this episode answers

How does a reserve auction help sell an overpriced home?

Michael Kane lists a home with a low advertised starting bid, well below market, to create eBay-style demand, while the seller sets a hidden reserve for the minimum they’ll accept and is never required to take a low offer. He says his team has sold over 300 hard-to-move homes this way, often at fair market value or better.

How many agents should call the same expired listing on a team?

Kane has every one of his agents call the same expireds, treating in-team competition as a win. He says the idea that only one should call is crazy, since sellers are being called by outside agents anyway, and a seller hearing “you’re the fifth person from Berkshire Hathaway” signals that his team is working hard.

How do you keep new agents from quitting after rejection?

Kane says rejection is the biggest hang-up for new agents, so he trains them to shake off a no and move to the next call immediately. He has them build a vision board of the car, house, family and goals they want, kept in front of them daily, so the reward pulls them through the negative feedback.

How can an agent grow by expanding their service area?

After a Mike Ferry call, Kane doubled his coverage area and doubled his business, growing from about 150 deals a year to close to 500. He tells his agents not to limit themselves: if you can service the listing, even a two-hour drive for a modest-price home is worth it to list the property and control the market.

How often should you follow up with a for sale by owner or hot lead?

Kane carries his hottest leads on 3×5 cards with the name, contact info, address, last-contact date and status. He follows up based on the lead: respecting an open house before calling, door knocking others, and calling motivated, distressed or vacant-home sellers every day, sometimes multiple times a day.

Guest

Michael Kane

Berkshire Hathaway HomeServices · Cleveland / Akron / Canton, OH (northern Ohio)

Berkshire Hathaway HomeServices team leader across northern Ohio with a 12-agent team, known for a reserve-auction listing strategy

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