2 Takeaways from the Berkshire Hathaway HomeServices Sales Convention

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Real Estate Technology with 855-419-6019
https://activerain.com/droplet/52rW

A few weeks ago I attended the Berkshire Hathaway HomeServices Sales Convention. If you’ve ever been to a franchise conference, like Keller Williams Family Reunion or RE/MAX R4, you know there’s a lot of selling. Franchises trying to convince you this is the right company to partner with. Vendors trying to market their product. Brokers trying to do a little recruiting.

 

I’m going to do the opposite. I’m going to share a few things I learned (since I help orient BoomTown’s product better for real estate professionals) and I’d love to hear your thoughts/comments on them.

 

Oftentimes, people work in a bubble. But sharing ideas and what we’ve learned can sometimes lead us to an unknown path to success. Here we go …

1. Knowledge & Wisdom > Data & Information

What’s the value of a real estate agent? This is a loaded question. Obviously, here, real estate professionals know they are extremely valuable to the real estate process. But, do consumers? Do home buyers think they are getting a good value for the service you provide today?

 

I think this question has been growing in debate across the country. With companies like Opendoor and Zillow, they’ve certainly changed how people find agents and homes for sale. Obviously, this isn’t the first time people have questioned whether or not they need an agent. When real estate websites grew in popularity, there was a similar war-cry.

 

But it brings up a good point. If a homebuyer asks you “How’s the market?” and your response is “It’s great. It’s a good time to buy.” then you aren’t providing much value. Consumers can already look online and find housing data. They can see what properties are worth, what they sold for, and what activity the market is seeing.

 

Your job is to build on the data they’re seeing. Instead of acting like a facilitator, you need to act like an advisor. Show them what you know from experience, how things will play out, etc. People appreciate wisdom over data. It positions you as the expert.

 

It’s the reason Berkshire Hathaway HomeServices has taken “Good to know” as their tagline. When an agent is consulting a client, they should be providing knowledge that is … good to know. This creates value.

2. Forget Recruiting & Retention. Select and Develop Agents, Instead.

Sounds like wordplay, right? Recruiting an agent and selecting an agent are nearly the same. So, what’s the difference? Mindset.

 

Everyone wants the top producers to join their office, but the method for winning those champion agents should be examined. Recruiting is a term designed for the military, for conscripting soldiers. You train them and give them orders. But really, you want to build a team that continues to improve performance.

 

Brokers and team leaders all take the same approach to hiring a new agent. They start the conversation with “What did you earn last year?” or “How many listings did you have last year?” or some variant. In your mind (the recruiter’s mind), you’re ready to offer them more. More money. More leads. More listings.

 

But this is the wrong approach.

 

You’re going into the conversation trying to sell them on joining your office/team. Instead, you should be selecting them. Asking them “how much they made last year” puts the person on the defensive. They get protective.

 

Here’s an alternative way to run the conversation -- one that’s designed to create a positive mindset:

  • [You] Do you still have an open mind about your real estate career?

  • [Agent] Yes

  • [You] What percentage of your income do you attribute to your company versus you?

  • [Agent] I’d say 5-10%.

  • [You] With all due respect, if you only attribute 5% of your income to your company, then why do you stay with them?

  • [Agent] Well, I like my boss. He’s nice.

  • [You] What’s more important to you? Your happiness with your manager or the potential to earn more income?

  • [Agent] Earning more income.

  • [You] Then give me a ballpark. What would you like to see yourself earn in 12 months?

  • [Agent] Around $200,000.

  • [You] Would you settle for $190,000?

  • [Agent] Yeah, I think so.

  • [You] Why? If you want to earn $200k, then why are you not devoted to earning that? Why would you settle for less?

  • [Agent] Their response will vary.

  • [You] Do you think you need to leave a company to earn this?

  • [Agent] No.

  • [You] Look, if you’re committed to earning $200,000, then I want to show you something. Here’s a quick look at one of my team members in the area who is making $150,000. I’ve worked with him to build a strategic plan to get him to that number. I’m willing to do the same for you, if you ever decide you want to work for a company that supports your goals. Give it some thought and let me know what you decide.

  • End conversation. Leave your contact info.

 

This framework addresses why they are staying with their current company. It makes them think “why am I staying?” versus you trying to sell them. It also creates a more positive mindset versus a defensive one. You don’t have to sell. Instead, you win them over.

 

Overall, as a manager, your job is to build a strategic plan to help the agent get the salary they want. If you want top producers to join your office and stay with you, then they must come first everyday. Now, you’re selecting the agents you want and you’re developing their skillset -- while improving your business.

Closing Thoughts

These are just a few things I learned and thought about during the Berkshire Hathaway HomeServices Sales Convention. If you have any thoughts or questions, let me know in the comments section below.

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Rainer
148,490
Jim Joeriman
Coldwell Banker Riviera Realty, Inc - Lacey Township, NJ
Helping Agents Reach New Heights

Thanks for the post. I find it useful.

Mar 24, 2017 04:49 AM #1
Rainer
258,739
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Mindset.  It's all the difference in a world of "me too".  Know your worth and be the asset in the industry/area that people actively look for.  They want to be with you, want your expertise, value.  They want to buy, not be sold.

Mar 24, 2017 07:02 AM #2
Rainmaker
785,107
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Interesting take aways. I think agents need to do a better job explaining their value and it has to be more than the same old cliche answers. As you say in your second point it is all about mindset and how you see yourself.

Mar 24, 2017 07:49 AM #3
Rainmaker
507,448
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

Being a Berkshire Hathaway Home Services affiliate myself I found this very informative Steven.  Thank you so much.

Mar 24, 2017 08:12 AM #4
Rainmaker
111,544
Jeanne Feenick
NextHome Premier - Basking Ridge, NJ
Basking Ridge, Warren, Bridgewater Market Expert

Thank you for sharing - found it interesting - propelled me to jot down a few reminders for myself.  

 

Mar 24, 2017 06:08 PM #5
Rainmaker
179,393
Melissa Spittel
Coldwell Banker Residential Brokerage - Westminster, MD
"Achieving Results Together "

As a former BHHS agent, I must say "Good To Know" is a great tagline that can easily be expanded upon by agents. It's imperative we expand upon the stats and data consumers can easily find online.

Mar 24, 2017 07:22 PM #6
Rainer
500,576
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Steven,

When I started in real estate, the shift from facilitator to adviser was already in progress. I have to say, I much prefer it that way. I hope, every client, who has worked with me comes away with some tools to apply to other life choice situations too.

Mar 24, 2017 08:13 PM #7
Rainmaker
2,772,745
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I've heard so many good things About Warren Buffett that I can see it going pretty well.

Mar 24, 2017 11:13 PM #8
Rainer
67,389
Kevin Green
Berkshire Hathaway Home Services - Wallingford, CT
Residential & Equine Properties

Thnx for the share and insight!

Mar 25, 2017 05:15 AM #9
Rainmaker
401,223
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

I think you found 2 very helpful take aways.

People want to see the value we can add to their experience.

Thanks

Mar 25, 2017 07:58 AM #10
Rainmaker
470,034
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great details taken from your recent Berkshire Hathaway Sales Convention.

Mar 25, 2017 07:50 PM #11
Rainmaker
933,106
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

With the most technology at our disposal, FSBO's are at a historic low of 8%. They'll always be shiny objects, relationships sell houses.

Mar 25, 2017 08:38 PM #12
Rainmaker
1,518,712
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Good information. I like that "select" approach. Have a great day!

Mar 28, 2017 11:30 AM #13
Rainmaker
2,772,745
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Berkshire Hathaway might be something I should attend one of these days soon enough. I have to bookmark this one to get more out of it.

Mar 30, 2017 11:16 PM #14
Rainmaker
2,772,745
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I've heard a lot of great things about the company and I'm sure you have as well from the looks of this post. :)

Apr 12, 2017 10:27 PM #15
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Rainmaker
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Steven at BoomTown

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