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Posts tagged ‘prospecting’

9
Oct

The Real Estate Chain Reaction

science class
Today in Mastermind we talked about a series of events that, like a chain reaction, happen when you do everything you can to ensure the right conclusion. Here’s what I mean….do you remember back in high school chemistry we were asked to mix two chemicals together and then document the reaction? Often the students had different conclusions. Why? Because of the variables involved. Was it the measurement of the ingredients, the temperature of the flame or the length of time the chemicals were mixed?

In many ways, the outcome of your first interaction with a buyer or a seller, depends on the steps you take next. As with many agents I know, the first listing is often a friend or relative. This is a great way to get your career off and running, but, for ultimate success, you need to remove all chance and stick to the tasks that work. That means coming out strong. Prepare and stage the house to perfection, get a pre-home inspection, take care of any repairs, order virtual tours and professional pictures, tell the neighbours, hold an agent and public open house, etc, etc. the list is extensive and, quiet frankly, labour intensive and expensive, but at the end of the day you know that you didn’t leave anything out. I bring this up for one reason. You don’t leave any stone unturned because a perfect execution will lead to more interaction and more deals.
Today we talked about the real estate chain reaction and had some interesting examples of it. We heard from one agent who put an ad in the paper for a small house in a relatively unheard of neighbourhood. In a time when newspaper ads hold little value to a young demographic, it seems like a colossal waste of money, but a strange thing happened. The agent got a call from an interested buyer because their parents, who were helping with the purchase, had seen the ad. Bingo. Connection made.
Here is another one. An agent is out-door knocking. He just happens to meet someone interested in selling. Within a week the property goes on the market and sells successfully. The owners were so thrilled they used that agent to sell the mother’s house. That one sells quickly too. The agent then starts canvassing the neighbourhood to let everyone know that he sold it but to also ask if they know of any other people on the street are thinking of selling. Someone mentions the vacant house down the street. The agent writes a hand written note and leaves it at the house. The following week he has that one listed too. And so the real estate chain reaction begins.
I know to here are a hundred similar stories out there, and for each one there are ten others that end with one single transaction and plenty of lost opportunity because the agent didn’t do EVERYTHING, to ensure the chance of future business. You might even suggest that the agents just got lucky. Have you ever heard the saying “the harder I work, the luckier I get”?
There is another benefit of putting every ounce of effort into your listings. Your clients will know the lengths you went to and will recommend you to other people. So, get your business off on the right foot today. Agents fail because they go into the listing with the attitude that the house will sell itself. That might be true, but then what?
In a market where you are competing with 40,000 other agents, commission is no longer the competitive advantage. For ultimate longevity you need to go above the bare minimum of service. Not only will you sell the property but it will cause a chain reaction of events that will help grow your business and guarantee a fruitful career.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

10
Sep

Mission Possible. The Ultimate 12 Week RE Sales Contest. Task 1. Be Present and Accounted For.

For as long as I’ve been managing an office I’ve wanted to run an EPIC contest. One that would have the ultimate goal of making agents money. A real rah-rah type of contest where everyone is excited to play and healthy competition is born. To be honest, I’ve been thinking about this contest all summer, and it has kept me up at night. I have debated about how I’m going to keep agents interested and motivated and, of course, create a game where EVERYONE has a chance of winning. This is not just a contest where the winner is the one who sells the most houses. Gawd, even I wouldn’t play THAT game. This contest had to give every agent an opportunity to win and the tasks had to be so spectacularly easy that you could accumulate points by literally doing nothing. Ok that’s not exactly true. You have to do something BUT I didn’t want the tasks to be a big hassle, they had to be fun and the the ultimate goal had to be that the agents made money. Simple enough. Over the past few weeks I’ve refined and laid out the tasks, calculated the points, talked to managers and top producing agents about it. The contest is for my office only but I encourage everyone to play along.
The contest is simple. This is a points oriented contest where the highest points win. If you sell or buy a property you earn 5 points.It’s the same for leases. If that’s all you do, sell and lease properties, you are making money and isn’t that the point of the game anyway?
But you can earn points by doing other things too so today’s task is really simple. SHOW UP AT THE OFFICE. Why you ask? Because real estate is about prospecting and prospecting starts at the office. At my office there are three opportunities to be here; the Tuesday meeting, Wednesday Mastermind and Duty Day. Over 12 weeks, this task alone could earn you 36 points (that’s the equivalent of 7 deals). The question remains however, if you are in the office three times a week for the next 12 weeks, will you make money? Well, from experience I can tell you that the new agents who have made a habit of coming to this office on a regular basis are making money.
Now I realize that not all business models hold meetings or have offices that you can go to so if that is the case…do this; Call 5 or 6 agents in your office and schedule a coffee meeting every week. Talk about the market, what you are up to, and what successes and failures you are having.
I hold over 45 meetings a year in my office. Some are good and some are downright boring. The point is, we still get together and network. Today’s meeting gave us an opportunity to remind ourselves why we come to the office. Check out our list here; realty feud
So what are the prizes? Well, besides all the extra money you put in your pocket there are some pretty cool rewards, but that’s top-secret. All I can say is the winner will need to have an updated passport!

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

25
Jul

Getting Your First Deal and Avoiding The Sophomore Slump

Sophmore slumpSo, just how long does it take to get your first deal? It’s a question nearly every new agent asks me during the first interview. I say that they should prepare for at least six months without any income, but the reality is that everyone is different. Some come into the business with clients ready to go. Others start their career buy buying or selling their own home. Others have a massive sphere of influence and will turn a deal in a few weeks and others don’t know a soul in the city and take a few months to get ink to paper. Frankly there is no exact science to it, so I asked the question in a local Facebook group and got answers that ranged from a few weeks to half a year. Here is a cross-section of answers from agents in different markets.

One agent said… I managed to firm up my first deal in about 6 weeks. got paid in about 10 weeks. I would tell a new agent that they may lose money the first year. You can never predict how the market will behave.

Or, this one…I tell every new agent to have 6 months worth of wages (for personal and business expenses) comfortably in the bank. Don’t count on a pay cheque for 6 months min. I had mine in 5, but was prepared for 6. Too many drown in the overhead without a plan.

Another great comment… It took me 3 months and the second one didn’t come until the 9 month mark. I would say 9 months generally to a new agent.

Also this one…Started out on my own September, first commission December. I was prepared also for six months but very happy to say it took four.

And finally some wise words… it all comes down to how much the Brokerage can help them in the beginning and if the person will work it is a job. So much learning to do in the first year or so… so the stronger the brokerage I believe the faster the deals. Just like the stronger the team… more experience for the new agents, greater confidence and more deals.

Actually, I believe that it isn’t the first year that determines your success in any business but what you do in the years that follow. Many agents coming into the business with prospects or clients ready to buy or sell. They spend there first few months buying or selling homes for friends and family that they forget the basics of building a business for life. We have seen it several times, new agents who rock their first year, they go out and buy a new car, go for a holiday and think that they have walked into the easiest job ever. Then the reality of year two sinks in and they have no business in their pipeline. It’s called the “sophomore slump”.

So, how can you avoid the “sophomore slump”? Don’t take your initial experiences as gospel. Use your first commission cheque wisely. Use every opportunity to research your farm area, work on your website, get your continuing education credits out-of-the-way, and above all, prospect. These are just some of the basic building blocks for constructing a successful career.

Of course there is more to think about than surviving for as many as 6 months without an income. Have you heard the old expression…you need to spend money to make money? Starting any new business, whether it is a flower shop or real estate, requires some capital outlay. The good news is that, depending on where you work, the initial few months can be floated by the brokerage. Still, there are business cards, open house signs, name riders, website, not to mention a clean car, rent, food, gas. The list goes on and the amount needed will differ substantially depending on where you live and work. As crazy as it sounds, it’s important to have your finances in order right from the start.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

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