Mastering the Art of Selling Real Estate

Author: Hopkins, Tom
Publisher: Portfolio Hardcover
Year Published: 2004
Rating:
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Tom Hopkins has been the go-to sales guru since he took his real estate business from earning $42 a month during his first 6 months to selling more than $14 million in real estate over the next five years - and that was back in the 1960s.

In this updated edition of Mastering the Art of Selling Real Estate, Hopkins provides his model for how to succeed in the real estate business.
The book is broken into 2 sections: becoming a listing champion and your selling real estate career. There are 29 chapters and a recommendations section for continued training.

The first thing you’ll notice when you read Hopkins’ book is that he strongly believes his model is the only “professional” model for selling real estate. He explains

“A professional salesperson is a person who earns more money than the average salesperson. If you are not earning two to three times more income than the average real estate salesperson, you are not as professional as you could be. If you are unwilling to make the changes necessary to achieve this level of professionalism, you should consider getting a job where someone pays you a salary.”

That translates to an ego-driven and outdated model for selling throughout the course of this book.

Hopkins starts out with the harsh reality that the average listing agent doesn’t make enough to stay in business. It’s up to you to take control of your business and get the outside training you need. Hopkins goes through the nitty gritty of why sellers often price their homes too high, how to win listing presentations, and overcoming objections. He also encourages agents to keep your seller’s best interests in mind rather than charge in for the opportunity to make a quick buck.

Yet, Hopkins’ fiduciary statements seem superficial when compared with his techniques, which can only be described as aggressive, high pressure and at points, down right manipulative. For instance, he encourages agents to write on the listing form during the presentation as a way of taking notes and when sellers have objections to handing over keys to their property, he pulls out his box, places their key inside and shows how secure it is. That way, the key stays in the lock box and he’s more likely to get the listing. The philosophy is that you always get a bunch of little “yes’s” - to questions only an idiot would answer “no” to - before you get the listing.

“Learn all the closes, all the responses, all the leading questions word for world. I hope you’re not telling yourself right now that you don’t need to do that. When I first started taking training I did that. I said, “Those words are not me,” even when a great sales person gave ma a script that had been proven over and over again to work. Fortunately, I didn’t fight him long. Instead, I learned his words so well that they became me.”

Hopkins also pushes the boundaries of ethics during his FSBO techniques. For instance, when FSBOs have made it clear that they don’t want agents to call, Hopkins calls them up and tells them he might be interesting in becoming a principal. He responds

“Now, are you telling the truth when you say that you could become a principal? Certainly. If their home is worth $180,000 and these people happen to be asking $136,950, you’d rapidly become a principal, wouldn’t you? Probably, depending on their circumstances. You wouldn’t take advantage of them, but if their situation dictates they must move immediately, this could be a wonderful opportunity for you.”

Hopkins assures his readers that what they are doing is in their clients’ best interest, and throughout the book, he stresses that “professionals” approach sales through his methodology to great success.

Admittedly, Hopkins offers great advice in many of his chapters, but the tone of the book reminds me of the proverbial sleazy used car salesman. What he essentially says is that the only way to be a professional is to subtly manipulate people by using his techniques. There doesn’t seem to be any genuine concern for his clients’ best interests. Instead, you say and do what you feel is in your best interest, rather than your clients’. You obviously know better than them, so you might as well make decisions for them.

Sales theory has come a long way since the 1960s, so it amazes me that these techniques are still being taught. People today have more information at their finger tips. They want someone they can trust to advise them and work in their best interests. If you start your relationship with manipulative techniques, you’ll find building rapport with your clients to be difficult down the road. And unhappy clients will make your life miserable.

Perhaps Hopkins’ idea of “professional” worked back in the 60s, but today, very few of his techniques and closings would be considered that. Today, when we think of professionals, we think of consultants, doctors, dentists, attorneys, and financial advisors who know that if they use manipulation on their clients, they will face stiff penalties. Sometimes this means being publicly rebuked, getting kicked out of their professional organizations, or even facing malpractice and/or criminal charges. In other cases, this means they lose a client - and unhappy ex-clients tend to be vocal ex-clients. They can quickly and easily spread their discontent throughout the internet.

That said, Hopkins obviously knows his stuff when it comes to the process of selling real estate, so the book is worth reading for numerous valuable tips. Those who feel uncomfortable with his sales tactics should consider picking up Neil Rackham’s SPIN Selling, which offers a much more “professional” and modern day approach to selling.