I think the keys to success in this business are:
- Communication Skills
- Honesty
- Hard work
When I am talking with a potential client to list their house I think its important to communicate what the current market conditions are and what I am prepared to do to help them sell their home.
If this is a new client, I am also asking myself why are they not using the agent that helped them buy their home? When they bought their home, they most likely used the services of a real estate agent. They probably found that agent through a recommendation from a friend or may be from a family member, or through some sort of the advertising or marketing. What did they like or not like about their past experience with an agent? What could that agent have done differently to make sure they are repeat clients and that they will recommend that agent to their friends and family?
For whatever reason, now it is time for them to sell their home and they need a real estate agent again. Many home sellers, particularly those selling their first home really tend to think all agents are quite similar to the one, which helped them buy their home. Do our clients know the differences between agents? Selling Agents vs. Buyers Agents?
Most people know real estate agents can work with both buyers and sellers, however many agentsa tend to focus more on one or the other. When they bought their home, they maybe worked with a "selling agent" - an agent that works typically with buyers. Because of the nature of real estate advertising and the marketing, the public's main image of the real estate profession is that of the selling agent (buyer's agent).
As a result, many homeowners wait for their listing agent to do the same things, which a selling agent does i.e., find someone to buy their home. After all, they do the things you normally expect if they were searching for buyers. A sign goes up to the front yard. Ads are placed in the local newspaper and then in real estate magazines. The agent actually holds an open house on the weekend. The house is then proudly displayed on the Internet.
How do we best educate our clients that this is just the "surface" marketing. More significant activity occurs behind the scenes. After the "for sale" sign goes up and flyer's are printed.
To be successful once we have the listing we must be a master of marketing the property. besides placing the sign in the yard and writing the ad for the property, what else do we need to do? I realize that I have to help with negotiations and manage the transaction to closing but what am I going to do to get a buyer to see the house?
I usually start by building a profile for a buyer that might be interested in the house. This will help me build a target market for the property. My philosophy is that the broker advertises to the entire public. It's my job to narrow it down. Here are some items I look at in building the profile:
What price range is the house in? - We know based on a NAR survey done in 2006 that first time home buyers pay around $165,000 for their first home. We also know from that same NAR survey that repeat buyers usually spend around $249,000 for a house. Depending on your market these figures may need to be adjusted but they give you a good idea on where to start. So, if the house falls in the $120's, I know that it might be a good fit for a first time home buyer. If the house is in the $250's, then I know it most likely will be a repeat buyer that will purchase this listing.
Location? - What are redeeming qualities of the neighborhood? If the house falls into a particular good school district then you can imagine that individual with kids would be interested in purchasing this home. If the property is close to a busy night life, then a younger person without kids might be the best fit for the home. The best way to figure out how to find this out are one of two questions that you can ask the seller.
- Why did you buy this home?
- What is your favorite part of the neighborhood?
It is a good rule of thumb that the person that is selling the home bought it for the same reason that someone else would buy the home.
The house? - The final thing I look at is the house and what attributes it has. For example if it is a 2 bedroom house. Then you can imagine it is less likely to be appealing to someone with kids than a 3 bedroom house. If the house sits on a big lot and is a 2 story house, then it is most likely not going to be appealing to an elder person that would have deal with the stairs and up keep of the lot. Again the best way to figure this out besides visually looking at the house is to ask the seller some questions.
- Why did you buy this house?(You notice it is the same as above)
- What is your favorite part of the neighborhood?
After I build a profile on the house then I am ready develop a marketing plan for the listing. The marketing plan will be specific for that particular house. It will set-up to attract buyers that fit the profile that I develop. Remember my brokerage is marketing to everyone else. This helps me save time and money in marketing the home. Plus it personalized my service to my client.
These are some of the things I do.
So, my questions to you is.....
- What do you think makes a great Real Estate Agent GREAT?
- What are the little differences in service and client relations that build life-long clients?
- In todays slowing market how many agents will still be in the business a year from now?
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