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The Simple Formula For Success in Real Estate

By
Real Estate Technology with Realogy Holdings Co

The Simple Formula (Part 1 of 2):

Client Generation     X     Closing Percentage     X     Average Home Price     =     Income

That's it.  In this business, we only have to worry about 3 things.  One of those things, Average Home Price, is out of our control, so we really only need to concern ourselves with TWO THINGS.

Closing percentage is defined as the number of "Prospects" that we hand keys to at the closing table.  This percentage is usually much higher for sales people who follow a proven and efficient sales process with consistency.  I'll send more information on this in Part two of this article.

Client generation is the step most Realtors® spend 85% of their time and money doing on a day to day basis.  A successful generation system is crucial for success, because everything in the above formula relies upon generating clients.

The system should be designed to turn:
1.       Strangers into Friends
2.       Friends into Suspects
3.       Suspects into prospects

Companies spend millions of dollars turning strangers into prospects.  Any Realtor® who has done this on a regular basis will tell you it's neither cheap nor easy.  It takes time, money, and dedication.

As a ZipRealty agent, I spend far less time with Client Generation.  The company gives me 30 to 40 prospects per month.  I spend 85% of my time closing prospects rather than generating them.

Stay tuned for Part 2.  I will talk about developing an effective way of turning:

1.       Prospects into clients
2.       Clients into Clients w/ ratified contracts
3.       Clients with ratified contracts into home owners.

Posted by

Ray Garrett

Independent Real Estate Recruiting, Training, and Marketing Consultant
ZipRealty
cell:  804.615.4378
www.ZipRealtyCareers.com

Licensed in Virginia

Member: National Association of Realtors, Virginia association of Realtors, Richmond Association of Realtors.

 

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