Taking the 7question litmus test

Most successful business leaders adhere to the tenet that if you ask the right questions you arrive at the right answers. The following seven questions are designed to elicit answers to determine whether your personality, interests, and career goals are best suited to a career in residential or commercial real estate. Although no one is likely to answer every question for commercial or for residential, you can tell which way you're leaning by tallying up your score and weighing which questions...

Informing Clients and Yourself of What Happens Next

At the listing presentation or buyer interview consultation, after the client commits to a buyer's agency agreement or listing agreement by signing either contract, take a few minutes to outline what happens next in the real estate sales process. Cover the following two points Briefly describe how you'll work to represent your clients' interests when it comes to negotiating and closing their transaction. For example, I always used this final discussion to explain that my typical approach was to...

Taking CMA results with a grain of salt

I suggest you make Stop and smell the roses your mantra during the CMA process. At some point during your review of real estate records, home photos, and computer analyses, take a break and get out to actually look at comparable properties in order to form a good old-fashioned first-hand opinion. Don't expect data sheets and digital photos alone to present the strengths, weaknesses, and permutations of each comparable property. Some homes just plain feel better than others, and that's a...

Qualifying expired listings

When working expired listings, get ready to work with owners who are frustrated that their homes didn't sell and who, in most cases, blame their agent and, by association, all agents in their real estate market. Many also blame the marketing strategy, the marketplace, and the lack of effort put forth by the real estate community. They're not happy campers. jtJW In most cases, the blame is misplaced. The real culprit is usually the price the owners expected to reap from their property sale. If...

Winning Business from Expired and FSBO Listings

Converting expired listings into new listings for your business Securing for-sale-by-owner, or FSBO, listings Staying targeted, competitive, and resilient f you've been in the real estate business for any time at all, you've probably already sensed that many agents have a preconceived negative impression of expired listings and for-sale-by-owner listings, or FSBOs. These agents act as if these listings represent second-hand goods that aren't worthy of their interests and abilities. These same...

Developing sales ability to win customers

The single most important skill for a real estate agent is sales ability, and sales ability is how you win customers. Your sales ability is based on how effective you are in generating prospects, following up on those prospects to secure appointments, qualifying those appointments, conducting the appointments to secure an exclusive agency contract, and then providing service to that recently created client. People also base your ability on how quickly you can accomplish all this. Because you're...

Mine your contacts

The first step toward mining or extracting value from your referral contacts is to segment your database into manageable subgroups. To mine your resources effectively you have to put most of your effort toward contacts with the highest referral potential. Contrary to popular opinion, you can't afford to treat all referral sources with equal attention. Unless you establish priorities, you won't have the time or energy to devote to those sources who will benefit your business the most. i Start by...

Being Inconsistent

This is the old tortoise versus the hare lesson. In real estate, as in most other endeavors, consistency leads to larger-than-expected rewards. However, if you're inconsistent, your results will be notably disappointing. Inconsistency derails success faster than any other factor. To a real estate agent, the consistent activities of daily prospecting, daily lead follow-up, daily practice of sales skills, daily personal development, weekly planning, and scheduled evaluation time create...

Having a Financial Goal

One of the first steps toward success is knowing what you want out of your real estate career. However, financial independence is not a specific-enough answer. I've been in real estate, either in direct sales or teaching, speaking, training, writing, or coaching people, for nearly 20 years. I've met tens of thousands of agents and nearly every one started selling real estate with the same goal of financial independence. Countless times I've asked the question Tell me, how do you define...

Set a daily time and place for prospecting

You can't work your prospecting around your day. You have to work your day around your prospecting. You have to establish the habit and engage in the discipline of prospecting on a daily basis and from a controlled environment where your prospecting tools are available and readily accessible. To paraphrase from the '60s hit Batman, prospecting success is all about the same bat time, same bat channel. In my private office, I set up a prospecting station that included a stand-up area, a computer,...

Residential versus Commercial Deciding Which Type of Real Estate Is Right for

Differentiating between commercial and residential real estate specialties Understanding the risks and rewards in each field Choosing the right specialty for you The worlds of residential and commercial real estate agents are as different as night and day. Each arena offers its own set of opportunities, advantages, and challenges. Surprisingly, you find little overlap in terms of the types of clients served, the emotional involvement of buyers, the sales process, and the real estate agent's...

Gaining customers no matter the market conditions

According to the National Association of Realtors, over half of current real estate agents have been in the business less than three years. That means more than one out of two of today's agents (probably including you) have never experienced a marketplace where homes sat on the market for 60, 90, or 120 days, where agents faced stiff competition to move listings, and where it took real work to find and create client leads. oj NG In robust market conditions, leads are abundant and relatively...

The law of accumulation

The law of accumulation basically says that achievement is the result of ongoing and constant effort. Everything in life, whether positive or negative, compounds itself over time. An illustration of this involves money. If you want to be a millionaire, all you have to do is save a little on a consistent basis and the law of accumulation takes over. If you put away 2.74 a day from the time you were 20 until you were 65 and you received an average rate of return of 9 percent over those years, you...

Considering the rules youll be playing by

Real estate agents follow two basic sets of rules The body that governs real estate in your state, which is usually called The Real Estate Agency, establishes one set of rules. This group sets laws regarding how to handle the earnest money you collect from a purchaser, the deadlines for the paperwork that is involved with each transaction, who is to receive original copies, and what timeline the legal aspects of the transaction are to follow. The focus of The Real Estate Agency is centered on...

Dialing for dollars

As you work your high-priority FSBO homeowners, make phone or in-person contact at least twice a week. Use these communications to see how sales activity has been, whether a weekend open house is scheduled, whether they received your latest mailing, and, most importantly, whether they got the home sold. A portion of FSBOs sell on their own, but a big difference lies between getting a home sold and getting it closed. The fact that the owners achieved a sale doesn't mean that they'll get their...