I started in real estate brokerage in late 1987. It was time very similar to what is happening in the markets today. Real estate prices collapsed and were depressed from 1988-1994.
In the 80's real estate was hot. Banks were lending at a drunken pace. Prices were going up not because people were making more or that all of a sudden there were more people. It was because banks were lending more money. Then the stock market crashed in October of 1987.
Today the same story is repeating itself. Banks lent too much money at cheap rates. It was easy to borrow. Not just mortgages but credit cards and auto loans. Bear Stearns just dissolved. One of the top investment banks in the world. They were just sold at 1% of where Bear was valued a year ago.
So now it's a whole new ball game. Thats good. Easy money is gone for a few years at least.
I worked at a major firm who taught me how to make money as a real estate broker. Their system works in every market at any time in the market. I will tell you that no matter whether you're a proven broker or new to the business the system is a winner. If you deviate from the plan your production will plummet. (I advise a lot of brokers and am applying the same strategy to a segment of the building products market and it works!)
Here's how it works.
1. Define your market- lets say you define your market with 400 residential home owners. It doesn't matter what the product is. If you're in the commercial market it could be 400 office tenants or if you want to specialize in 2-10 family homes pick an area with 400 property owners. What you're going to do is specialize in a targeted market and getting the exclusive listing in that market. The system requires phone contact and mailings. (there is an internet strategy as well which I'll cover) You need to make 10 phone contacts daily in your market. That means every 8 weeks you will speak to everyone in your market.
2. Mailings - every month you want to send a newsletter or post card to your market. Do not stop. Every month without fail. Send some valuable info like properties for sale or a property that has sold. Maybe some general info about design trends or a feature about a local contractor or mortgage broker.
3. Blog - start a blog, when you do mailings tell everyone about your blog. Keep your blog updated every day. Tell everyone about their market. Anything you can provide will help break down the sales barrier. You will be perceived as the expert in your market before long.
4. Leads - you want sellers not buyers. You can show 50 homes to 1 client and they could buy the 51st from another broker. Work on exclusive listings, you'll be paid when the property sells. When you work your market like defined you should get every lead. Crazy if an owner doesn't at least speak with you. Sometimes that happens though.
5. What to do when you get a lead - first thing is to set up an appointment to inspect the property and meet the owner. You must do both. Don't try and start selling on the phone or at first meeting. Tell the client at the first meeting that you will prepare an analysis of property value and marketing strategy. Set up second meeting now.
6. 2nd meeting - Presentation- prepare a bound booklet that has section of value, suggested asking price and marketing strategy. Do not give the client the booklet yet. Give them a handout with valuation and suggested asking price. Show comparable sales and properties for sale. Start going over values. If you hand them the bound report you will lose control of the meeting. After you go over the value then hand the client a summary of proposed marketing. Even if it seems trivial to you it's not to them. Tell them about your blog. Try and limit your presentation to 15 minutes.
7. Exclusive Agreement - Now you can hand over the agreement, explain the fee. If they tell you that they want their neighbor excluded tell them no. No exclusions. They're hiring you, if they think they can sell on their own, tell them to try. If they don't succeed then you'll be back. Exclusions are a conflict of interest. They will create a bad relationship.
8. Marketing and Sale - Always keep your client updated with your efforts. Even if you have nothing to tell them call and tell them you have no news. This will be especially critical in the current market. Properties will be slower to sell. Keep you client posted and you'll keep the listing. When properties move slow clients become anxious. If you don't stay in touch they will start talking to other brokers. It's just when they are ready to drop the price that you can lose the listing. Stay with them. When you have a deal stay with them through the sale. You don't want them blaming you if the deal goes sour.
9. Market Share - If you follow this program you should be able to maintain a 50%market share in your market. Even in a highly competitive market. Once you have dominated your market hire someone to work with you and slowly start expanding your market size.
I'm applying a similar strategy to a new highly focused internet business related to decorative concrete. I write articles, I maintain a blog. I network with 150 bloggers weekly. I'm quickly becoming known as the leading expert for Do It yourself concrete stain and resurfacing nationwide. It's working.
Currently with one of my former broker friends we are developing an online broker training school to teach brokers how to become highly productive. Again we will apply the same strategy. We already have 6 firms signed up. I'm no different than anyone. I just follow the system.
Edward Winslow
http://www.decorativeconcretekits.com
Blog http://www.metrocrete.com
Concrete Resurfacing Made Simple - Concrete resurfacing products and solutions
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