Although the market in the Toledo, Ohio area is not the same in California, the author is accurate when he says: "you're more likely to sell 10 homes at $300,000 than you are to sell 1 home at $3,000,000. You've know got 10 happy clients instead of one."
The secret to success in real estate is to have a system and follow up. My first manager in real estate once told me "Sell 'em big, sell 'em small, sell 'em all". His point was that no matter the size of the transaction, the goal of every deal should be a satisfied client and a paycheck. While it's a lot of fun to sell high-end homes, they are often time consuming and expensive to market. If you really want to succeed, you need to have a system that ensures happy clients across the entire price spectrum. Whether it's a $200,000 postage stamp-sized dump or a $10,000,000 estate, the secret to long-term success is being able to convert all such transactions.
If you're starting out, a listing or buyer at any price is a good thing. As your business grows you might prefer transactions in particular areas at price points you like. Regardless, NEVER GIVE AWAY BUSINESS!
Let's assume you like mid-range homes (here in California) priced around $1M. The "low-end" are condos priced at $300,000. Some agents will say "not worth my time" and let leads and clients in that range pas through their fingers. DON'T!! If you don't want to work on "low end" listings, fine, but...
- Have an agent on your team handle that segment you don't want
- Put a process into place that ensures the client has a good experience
- Continue to generate more business in that segment
Let's put it another way, you're more likely to sell 10 homes at $300,000 than you are to sell 1 home at $3,000,000. You've know got 10 happy clients instead of one. You see my point? The smart real estate agent actually covers both market segments. Even if all you get is a referral fee on the other business, it's still revenue! Plus, this is a good way to build a team.
Build your business to support the entire price spectrum. Tailor your services appropriately (don't overspend) but build the widest net of happy clients you can. Do that, and you'll do well no matter where you are.
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Bryan Robertson, President | T: 650.799.9951 | Email: firstname.lastname@example.org | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | ARIVVA | 744 San Antonio Road Ste 24 | Palo Alto, CA 94303
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