From our friends at Keeping Current Matters (KCM Blog):
1. Realize real estate has changed from a retail to wholesale business.
Retail businesses, such as clothing stores or movie theaters, have their customers come to them. Real estate was like that for the first six months of this year. Buyers came to you excited about great prices and historically low interest rates.
Wholesale businesses create their demand by reaching out to potential customers to sell their inventory. Real estate is now a wholesale business. Demand in the second half will be determined by your ability to reach out to potential buyers and sellers that are ready, willing and able to move now.
As an example, there is a pent-up buying demand among echo boomers who, according to Harvard University, are about to enter the market soon. Don’t wait for them to show up at your offices. Find a way to reach out to them and explain the opportunities available in real estate right now.
Put simply – YOU MUST PROSPECT EVERY DAY!
2. Prepare diligently for EVERY appointment.
Most agents prepare well for a listing appointment. They go in with a complete consultation manual ready to show the seller why they should sell now and at the suggested price. They make sure they have all the tools necessary to have a successful meeting.
- What about the buyer consultation appointment?
- Or the price-break appointment?
- Or the negotiation of offer appointment?
There are four critical appointments in today’s market. Most agents prepare for one of them and ‘wing’ the other three. You must prepare as thoroughly for the last three as you do for the listing presentation. You must make the most of every opportunity presented from now until the end of the year.
3. Spend the first week of July working expireds.
As we mentioned last month, history has shown that the single day of the year that most listings expire is December 31st. The date that comes in second is June 30th. The number of expiring listings will be staggering. That means opportunity for someone. Hone your listing and pricing skills and approach every expired you can. The inventory of listings you accumulate in the first two weeks of July could catapult you to success for the rest of the year.
4. Gain knowledge and then get to work.
Two quotes from the late business guru, Peter Drucker:
“Knowledge has to be improved, challenged and increased constantly, or it vanishes.”
You have to become better at your craft every day. You must continuously improve your skills. You must become an expert at showing your customers what is taking place in the current housing market. They can then make the right choices for themselves and their families.
“Plans are only good intentions unless they immediately degenerate into hard work.”
It is not good enough to be a student of real estate. You must act on your knowledge. You must plan where you wish to be and then get busy making your way there. If you could have only one of all the attributes that successful people are known to have, you should chose the ability to work hard. It is the most important and will get you closer to success than any other attribute.
5. Remember that a picture is worth a thousand words.
Whether you are taking a listing, consulting a buyer, doing a price adjustment or presenting an offer-to-purchase, you must be able to effectively communicate your customers’ options in the current real estate environment. The use of strong visuals dramatically enhances the chances that the consumer will truly understand the points you are making. Too many agents are satisfied complaining about the fact that their client just ‘doesn’t get it’ even after they’ve ‘told’ them what is happening.
You must take the time to visually ‘tell a story’ on each point you are making. You must hone that story until it makes your point simple to understand. That is what differentiates talking at a person from truly educating them. You need to be great educators in this market.