7 tips to increase the profitability of your real estate business in 2022
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There are two ways to become profitable in this business: increase your income and reduce your expenses. Most agents only focus on the “making more money” part of the equation. However, reducing expenses is another important profitability factor.
Below are seven powerful ideas that address both increasing income and reducing expenses so you can make this year one of your most profitable.
1. Focus on low-hanging fruits in your local real estate market
Think about for sale by owner (FSBO) and expirations – and don’t view them as difficult or enemy territory like so many of your colleagues.
Listen, these people need you more than ever. Why? Because even in these markets that are still hot sellers’ markets, the need for home sellers to protect their interests and their return on investment and to negotiate like a pro is strong.
Have you ever heard one of them say, “Bring me a buyer, I’ll pay you a commission”? What happens when more than one agent brings them a buyer who makes an offer and the FSBO is inexperienced with multiple offer situations and ends up “selling their house twice”?
There are many reasons why FSBOs shouldn’t be FSBOs – the main one being that agent-assisted homes sell for more. Here’s my advice when prospecting these two niches, but especially FSBOs: go over the first 60 seconds when you first call them.
It’s almost like they’re trained to be aggressive from minute one, but if you can ride that wave, ride it out, compliment their house and efforts, and ask questions about their goals, you can move on to through the rest. conversation and create an opportunity to serve them by making an appointment to view the house.
From there, wow them with a solid conversation about how you can help them get more in less time — with less headache — and help them achieve the goals they’ve committed to.
2. Connect with former clients, family and friends – better known as the “sphere of influence”
Your sphere includes people who know you, trust you and would do business with you, and they are an incredible source of referrals – if you stay in touch and in the lead and committed to nurturing those relationships.
According to a study by the National Association of Realtors (NAR), 68% of sellers who used a real estate agent found their agents through a recommendation from friends or family, and 53% used the agent with whom they used to work to buy or sell a house.
Here’s the trick – don’t try to flirt or sell them. Especially them. These are the people who will create the benchmark foundation that can last for decades when done right.
Unsurprisingly, during tough times for real estate agents, it is by leaning in and caring for your sphere that you will not only find new business, but also relationships that support you, inspire you and motivate you to serve more. .
3. Ask for “orphan” prospects
Ask your manager for client records of agents who have moved on to another brokerage or who have retired from real estate. Call them and introduce yourself as their new contact in your company. Let them know that you will be your company’s representative for them if they have any questions about this crazy market and what it might mean for their home buying and selling needs.
You don’t always have to spend money to make money. If you don’t have the money to invest in a cohesive agricultural campaign or advertising, there are many ways to get exposure and market yourself for little or no cash investment, such as:
Pick up the phone
It will be one of your best allies if you allow it. If you can overcome the fear of prospecting and make it your mission to pick up the phone at least three or four days a week for at least an hour a day, you’ll get more business, coming from a place of service.
Your commitment should be to building a relationship, finding out their commitment, and looking at how you can help them, not just “booking” an appointment or signing up.
Become an advocate and resource in your farming region’s Facebook group
Most of you have neighborhoods that you want to market that have a closed group online. Spend 15-20 minutes a day or every other day making friends, being a resource, helping people, and being active in the community.
The general rule is that for every six contributions, share a real estate tip or tool. Keep it conversational. Help where you can. You will be rewarded.
4. Organize open houses
This is an amazing way to build business, helping new buyers find new people in the neighborhood who are considering selling. Have constructive information of value to offer and follow, follow, follow.
5. Don’t pay for real estate leads unless you can afford it
The truth is, not all purchased lead sources are good, reliable, and with ROI. If you don’t have the money to bet on trialing a lead source for at least three to six months, consider the “no money” options above.
When (and if) you feel ready to embark on this investment, do your research first. Ask around in your agent communities to find out what kind of experience others have had so you don’t waste time on duds.
Know that there are top producers who spend tens of thousands of leads per month and others who pay little or nothing and make a very good living. Decide what is right for you.
6. Look for fundamental investments that pay off
I don’t believe a Realtor can survive long term in this industry without a serious Customer Relationship Manager (CRM). There are too many moving parts and the importance of staying connected and ahead has never been greater. A CRM is the only way to ensure that things have a chance of not falling through the cracks.
7. Turn one ad into several
How do you do that? Highlighting listing, market conditions, quick sales, and even multiple offers through direct mail, door-to-door, open houses, and neighborhood canvassing. Pro Tip: Be the first to call and communicate with neighbors in an area where there’s a new listing, even if it’s not yours. Start the falling dominoes!
The bottom line is that you need to pay attention to your bottom line this year. That means staying close to high-priority activities like these. Focus, mindfulness, and a commitment to service will all serve you when you do.
Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.