Do You Have An Ideal Client Type? You Should...

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Real Estate Technology with Home Value Leads

Dan Corkill Follow Up BossThe following is a guest post by Dan Corkill from the HomeValueLeads blog. Dan is the co-founder of Follow Up Boss, a high powered real estate CRM (Customer Relationship Management) program designed specifically for successful real estate agents and teams who attract leads from multiple sources and want to manage them all in one place.

How To Figure Out Your Ideal Real Estate Client Type

Most people think they have an ideal real estate client type, but in most cases, it’s based off of feelings rather than data. Many people know the type of people they like working with, but those aren’t always the types of people who are best for their business. Defining this ideal real estate client type can be difficult and even a little bit uncomfortable. You’re going to have to go back through past sales and fails and make notes about what’s happened. Try to look for patterns, and figure out where things went wrong that caused people to not turn into a sale in the end. This can often be an emotional process, and it’s easy to get worked up all over again about that sale that didn’t work out. That’s OK though, because this will help to ensure you aren’t working with those types of customers again. Then start going through things and figure out what things are actually pushing the needle forward. What income class of people are converting to sales most often and what types of homes did they end up buying? These are the types of people you’re going to want to start targeting and serving on a more regular basis. There are actually hundreds of different things you could be looking at to qualify or disqualify a certain type of customer. The key is to figure out the ones that are most important to your business in particular. Every real estate agency will be different. For example, some will do better with selling modest houses to people with average incomes, while other agencies will see much more success selling luxurious homes to people with almost unlimited money to spend. Those two agencies will do much better not trying to serve people who don’t fit into that description.

Why You Need to Learn How to Say No More Often

Let’s not beat around the bush - you probably need to start saying “No” to customers a lot more often. At first, this can sound incredibly counterintuitive. How could turning down a potential customer make you more money? That person could potentially turn into a sale - why would anyone ever suggest that you tell them no? The reason is because every customer that doesn’t fit into your description of an “ideal real estate client” is zapping up your company’s mental energy and time. You’ll never be able to get that time back again, and if you spend too much time on these types of customers, you’ll have far less time to spend on the types of customer who actually are proven to move your business forward. We aren’t trying to say that it’s time to start stereotyping your customers. At the same time, many types of customers have enough things in common that you can make some broad assumptions about how things are going to play out. At first, you’ll probably make some incorrect assumptions and turn away the type of people who are actually right for your business - and this can lead people into thinking that they are making the wrong decision by turning down their customers. If you get good at this type of customer identification though, it soon becomes far less of an issue. As with all things with a learning curve, you’ll have to make a couple of sacrifices before things get better, so be prepared to possibly lose a couple customers, in order to gain exponentially more customers in the near future when you figure out your ideal real estate client.

Getting Over The Mental Hurdle Of Saying No

At first it can be very difficult to say no, because it’s almost like turning down money. In reality it is turning down money, at least in the short term. In the long term, it’s a great way to ensure that you’ll make a whole lot more money, because you’ll only be serving the types of people who make you the most money. When you spend your time serving the people who fit your ideal real estate client profile, and no time on the people who simply take up your time, well, you can just imagine what kind of effect that has on your bottom line.

 

Our thanks to Dan for this great post. If you are looking for a great real estate CRM product to streamline your business so no leads slip through the cracks, make sure to check out Follow Up Boss.

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Brian Rayl

Licensed Dallas Real Estate Agent 

Co-Founder of Home Value Leads

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Ambassador
1,584,922
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Good point--if we spend time working with the "wrong" clients we are losing valuable time that could be spent working with the "right" clients.  I'm practicing my No.

Aug 21, 2014 09:39 AM #1
Rainmaker
3,985,753
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

For the most I look for ones that can afford to buy.  Then I check them to see if they are realistic in their thoughts.

Aug 21, 2014 09:59 AM #2
Ambassador
1,626,288
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

We have gotten no down to a science.  If you are not willing to get preapproved and have a buyer broker agreement in place, we don't take you shopping.  

We deal with less people but our conversion rate is up to nearly 80%.  

Aug 21, 2014 02:18 PM #3
Rainer
126,348
Brian Rayl
Home Value Leads - Highland Park, TX
Active Agent and Co-founder Of Home Value Leads

Norma Toering - Spend more time working with the "RIGHT" clients and you are more likely to get to the closing table more often. 

William Feela - If you are working with anyone with a pulse and a credit score, you might want to narrow down your "ideal client" criteria a bit. 

Kevin B. Tolbert PA Team - Excellent work! There is a reason you are one of the best in Port Saint Lucie =)

Aug 29, 2014 07:02 AM #4
Rainmaker
892,465
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I am finally realizing this very point! I should figure out who are my great clients and say no more often. Book marking this one.

Aug 31, 2014 09:29 AM #5
Rainer
126,348
Brian Rayl
Home Value Leads - Highland Park, TX
Active Agent and Co-founder Of Home Value Leads

Sussie Sutton - Sometimes we get caught up trying to help everyone. I know I was guilty of it (and sometimes still am), but business is business and you are in it to succeed and prosper. 

Sep 03, 2014 04:27 PM #6
Rainmaker
3,726,695
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I'm  a huge believer in saying no and in firing the "wrong" clients for me. I've said for years that my client niche is people I like and I will bend over backwards to service them. But anyone who raises the hairs on the back of my neck needs to go find someone else to annoy.

Sep 04, 2014 07:13 AM #7
Rainmaker
544,742
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Thanks, Brian Rayl, for making this post.  I have come to the same conclusion. My mistake was taking on a rural market area near Seligman, Arizona that is two hours away from where I live in Prescott, Arizona. I have been working that neighborhood to the point that I have over 50 listings there and I sell at higher prices (per acre) than my competitors. Sales in this area still produce a steady flow of commissions, so I can't just stop working it. My plan is to continue to take the best listings there and to find Buyer's Agents to work with Buyers there. I am also planning to pass off listing leads for referrals there. 

Feb 05, 2015 03:08 AM #8
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Rainer
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Brian Rayl

Active Agent and Co-founder Of Home Value Leads
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