Don’t all sellers want to sell for the highest price, now, while paying the least commission? The same thing is true with agents. We all want to make more money, with less hassle, without working like a slave. If you want to make more money working fewer hours, the answer is pretty simple. You have to be more productive with the time you have. In this business, there are only a few things you should be doing.
1. Getting more listings.
2. Getting the listings you have sold.
3. Working with A+ buyers only.
But, most people (including me) convolute all this. They think they need to do this, or that. The older I get, the more I learn that basic rules apply to life. The most basic rule in life is this: The rules for success are simple. What is takes to be successful in real estate isn’t complicated. Just help a buyer or seller buy or sell a house and figure out a way to get paid. Make sense?
One of the biggest hurdles to being successful is working with un-motivated or wishy-washy people. Buyers, that don’t absolutely have to buy, and sellers that don’t absolutely have to sell. If you don’t put enough time into lead generation, then you’ll find yourself wasting time on them. The key is to bring enough business in the door, so that you can pick and choose who you want to work with.
If you spend just 1-2 hours each day on lead generation, then you’ll find enough motivated sellers to list. There are lots of potential seller leads in today’s market. You only need 3-4 motivated sellers each month to make a good living. I estimate that I make over $1,000 for each hour I do lead generation each day. For example, yesterday I got on the phone and called FSBOs and Expireds. I set up two appointments. I went on two appointments and took one very saleable listing. I estimate it has a 75% chance of selling.
It should sell for $165,000 to $170,000. My commission will be around $6,800. If you take that $6,800 and multiply it by 75%, you get $5,100. So, from an actuarial perspective I made around $5,100 yesterday. That is what 2-3 hours of solid, intense lead generation can do for you. Sometimes if I don’t want to get on the phone I go thru how much I make per hour calling people. That gets more motivated to get on the phone.
Where else can you make over $1,000 per hour? Now, obviously I have work to do besides just the prospecting. But, that is the difference the prospecting makes in income. There are plenty of motivated sellers out there that need a good agent. Let me be honest. There aren’t that many good agents that can get their home sold. So many agents are pessimistic about the market.
They don’t really understand what it will take to get the home sold. (The answer to that is pretty simple. For a home to sell, it needs a buyer. To get a buyer, it needs to be a good buy for the buyer, as compared to all the other homes on the market. If the buyer can buy a better home in better shape next door for less money, they will do so. For your listing to sell, it needs to be the best priced home in the best showing condition) Those sellers probably don’t know about you, or the fact that you can help them solve their problem.
You have to get in touch with them somehow and let them know how you can help. The only ways I know to do that are either by sending a letter or calling them up.
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Ben & Chris Curry The Short Sale Agent's Advocate
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