From cold to sold: here’s how to develop your real estate business
New to the industry? Start with everything you need to know about the first decisions that will shape your career, including choosing a brokerage, learning your market, building an online presence, budgeting, getting leads, marketing lists and more. If you’re a team leader or broker owner, New Agent Month is packed with resources to help your new hires navigate.
With the hectic nature of our business, it is sometimes easy to lose focus on what is important. Most successful agents focus on certain fundamentals and activities to ensure continuous and systematic growth.
If your business is drifting or getting out of hand, it’s always a good idea to get back to basics. The following is a list of 10 fundamentals that lead to success in real estate.
1. Establish a clear set of goals
If you don’t know where you are trying to go in your business, you will never know if you are headed in the right direction. On the other hand, if you set goals that are easy to understand, have a clear timeline, and are measurable, you’ll have a better idea of the steps to take to achieve those goals.
Here’s an example of how to break down your goals into basic daily activities:
Imagine your goal is to earn $ 120,000 for the year. Now imagine (to simplify the numbers for this example) that your average net commission is $ 6,000 per trade. This means that you will need to close around 20 trades this year to reach your goal.
If your averages are that 50 real estate-related conversations lead to a deal, then you know that you will need around 1,000 conversations (20 deals x 50 conversations per deal) this year to reach your goal of 20 deals and 120,000. $ for the year.
Dividing the 1,000 conversations by 12 months, we will need about 84 conversations for the month, 21 per week, and just over 4 real estate-related conversations per day based on calls 5 days per week. .
The first fundamental principle of real estate is to have a clearly defined set of goals and objectives for your business. Start here.
2. Be the market expert
Real estate is your business, so make sure you know all about the factors affecting the market. Immerse yourself in understanding the key indicators in your region.
Understanding and being able to communicate sales and market details like the following will give you the opportunity to add the most value to your current and potential customers. Make it your goal to know:
- The average selling price in your area
- The average price per square foot in your area
- The average number of days in the market for sales in your area
- The current inventory of homes for sale in your area compared to the previous month / year
- Homes that have recently come onto the market or sold in your area
- Details of the upcoming development project
When you are able to help your customers understand the market and interpret its impact on their transaction, you give them the confidence to trust you and make an informed decision.
Regularly study your market to position yourself as an expert.
3. Build a lead generation strategy
Leads are the lifeblood of our business, and if you don’t have opportunities from multiple sources and directions, your business will struggle to grow. Your prospects can come from:
- Your sphere of influence
- For sale by owner listings
- Expired ads
- Prospecting circle
- Open doors
- Direct mail
- Email campaigns
- Paid online leads
- Other prospecting methods
Whichever method you use (and ideally you’ll use more than one), you need to establish a constant flow of new customers into your business to develop new customer relationships and close more deals.
4. Feed your prospects
Once you’ve developed a strategy for attracting new leads, you need to track those leads from a cold lead to a sold customer.
Set up drip campaigns that will automatically email information about the types of properties they are interested in and keep them up to date with new listings or properties sold that could impact their decision to buy or sell .
Systematize your communication with these prospects by using a CRM to alert you when it’s time to follow up with a customer. Having a consistent, automated process for adding value and communicating with your prospects is vitally important if you are looking to grow your business.
5. Communicate consistently with your former customers
Over 90 percent of home buyers, surveyed when buying their home, say they would use their buyer’s agent when deciding to sell in the future. Surprisingly, however, only about 13% of sellers list their home to the same real estate agent they bought from when they decide to sell in the future. Why is it?
This is because the selling agent stops communicating with buyers, and when the time comes for the previous buyer to sell her house, she either forgot the buying agent or the lack of communication has escalated. the relationship.
Set up tasks in your CRM or calendar to remind you to connect with your old customers. Give them updated ratings of their home at least once a year. Stay connected and you will be the agent of choice when the time comes for them to sell.
6. Build a database and communicate regularly with the people who compose it
Your database is the heart of your business and constant email communication with your database is essential for your growth. Build your database with past customers, potential future customers, people of influence, service people, and anyone else who can benefit from the value you will provide.
Once you’ve built the list, send out an email newsletter with information on upcoming community activities and featured properties at least once a month, but ideally once a week.
Consistent communication with your database will keep you in mind not only for their real estate needs, but also when the potential to send you a recommendation arises.
7. Focus on real estate conversations
If your business isn’t where you want it to be, then having more real estate-related conversations is the way to go. Many times we find ourselves content with email communication with our database. While important, there is no substitute for one-on-one conversations.
Conversations lead to conversion. Start conversations with new prospects, old clients, friends, people you nurture, people who provide services to you, and anyone else you meet in your daily routine.
If you are reducing the growth of the business to one activity, having conversations about real estate is the most important activity for the growth of the business.
8. Focus on relationships
When I first started in the industry, real estate was all about transactions. Today, however, relationships are key, because if people know, love and trust you, they will want to do business with you and they will be happy to refer other people to you.
Spend some more time at lunch with a former client. Send a thank you note for entrusting you with their business. Donate to a charity they love in their honor. Just call to see them.
Relationships matter. Focus on deepening relationships, and the fruits of those relationships will grow your business.
9. Reward people who recommend you
The best producers generally view referrals as a crucial part of their success. Referral generation should therefore be a key part of your business.
Start by rewarding people who share a referral with you so that they are more likely to provide additional referrals in the future. Send a handwritten thank you note that acknowledges the recommendation and communicates your appreciation. Here’s an example of a thank you note to someone who refers a customer to you:
Thank you very much for the trust you have placed in me by referring me to (Name). I will make sure to treat them like family by providing them with the best possible service. I appreciate that you keep me in mind when your friends want to buy or sell real estate, and let me know if there is anything I can do for you or your family.
The gifts are always so memorable. Send gift cards, event tickets, or anything else unexpected to let your referrers know how much you appreciate their efforts on your behalf, and they’ll be much more likely to do so again in the future.
10. Focus on sellers
The day you go from working primarily with buyers to working primarily with sellers is the day you go from being a seller to running a business. What we are focusing on expands. Are you focusing on buyers or sellers?
Remember, if you control the inventory, you control the market. Understand that if you have ads, you will have a constant flow of buyers entering your business as you market the ads. The shift in focus towards sellers versus buyers is fundamental to your long term success.
Determine if you are currently discussing these fundamentals and if you are spending enough time on each of them. If you are missing one, work them one at a time to put them in place. By focusing on these 10 fundamentals, you will improve your focus and constantly grow your business.
For some examples and templates of additional handwritten notes, click here.