Doesn't
it seem like everyone you know has a friend, relative, or acquaintance
that is a realtor? How could anyone, especially someone new
to the industry, possibly achieve success when faced with this
much competition?
The answer
begins to appear when you consider the following questions:
- How many
licensed real estate agents have the talents required
for success in sales?
- How many
have been trained in effective selling techniques?
- How many
know how to prospect effectively?
- How many
know which questions to ask to determine the factors
that are most important to each prospect's buying decision?
- How many
take their profession seriously and are willing to put
in the effort and hours that are required to build a successful
business?
- How many
of them regularly sell multiple houses per month?
The 80/20 rule
definitely applies to residential real estate. In fact, some statistics
suggest the ratio is more like 90/10 (where 90% of home sales
are made by just 10% of realtors), with the vast majority of home
sales by the top 1%!
So, how can
a novice realtor attract clients? By building his or her credibility
and relationships. Let's explore these two topics separately.
How to
Build Credibility
Imagine you
are a brand new realtor that has just passed the licensing exam.
Why would someone turn to you to help them make what
may be the largest investment of their lifetime? What makes
you stand out from other licensed real estate agents?
If you are
new to the profession, you won't have success stories or testimonials
to point to as answers to these questions. However, there are
many things you can do to build up credibility quickly. Here
are a few examples:
- You can
perform in-depth research on a specific aspect of your local
real estate market and write a "white paper" or "special report"
to share with prospects. Examples of potential topics include
"The Hottest Markets In (a specific area)", and "Resale Home
Prices for the Past 12 Months In (a particular community)".
- You can
compile a "New Resident Resource List" that educates your
prospects on local stores, service companies, fun activities,
family-friendly restaurants, etc.
- You can
write articles and deliver free speeches or seminars that
are based upon the results of your research.
There is
tremendous power in authorship. If you can place useful
information that has your name on it the hands of potential
prospects, you will earn credibility.
How to
Build Relationships
A good starting
point is making sure everyone you know (friends, family,
acquaintances, past business contacts, etc.) is aware that you
have become a licensed real estate agent. It doesn't matter
where they live -- who knows when one of their friends or associates
will decide to move into your target market? The best approach
is a simple, "soft sell" message such as: "If you hear of anyone
that might be interested in buying or selling a house, please
let them know that I would be delighted to help them." When
you are sure that everyone you know is aware of your new role,
start pursuing new relationships. Don't limit yourself
to contacts that may themselves become prospects. Also look
for opportunities to develop relationships with people that
can refer prospects to you. This includes:
-
Mortgage brokers
- Bankers
- Salespeople
in non-competing sales roles (i.e., new home sales
vs. resale)
- Property
managers
- Corporate
relocation managers
You can also
pursue relationships with people that have large customer lists
such as accountants, financial advisors, and insurance agents.
Focus on
getting to know potential prospects and referral sources as
people. What do they do for a living? What constitutes
an opportunity for them? What are their issues and concerns?
What are their personal interests and passions?
If you constantly
have your "radar" up, you never know when you will run across
a resource that could be helpful to someone else. If you focus
on helping other people accomplish their goals and fulfill their
needs and wants, you will be astonished by the number of referrals
that come your way.
As you build
your list of satisfied customers, you will be able to expand
your sales success through referrals and testimonials. However,
the strategies described in this article will always provide
a boost to your opportunity pipeline!
Copyright
2004, 2005 -- Alan Rigg
Sales performance
expert Alan Rigg is the author of How to Beat the 80/20 Rule
in Selling: Why Most Salespeople Don't Perform and What to Do
About It. To learn more about his book and sign up for more
FREE sales and sales management tips, visit http://www.8020performance.com.
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