Agent-Centered • November 15, 2023

Finding New Business

by Shaun Parker

Dealing With the Challenges of Today’s Market

Generating business in a down real estate market can be challenging, but with the right strategies and a proactive approach, it’s possible to succeed. Here are some effective ways to generate business in a slow real estate market:

1. Expand Your Network Focus on building and expanding your professional network. Attend local real estate and community events, join industry organizations, and connect with potential clients and partners.

2. Offer Competitive Pricing and Commissions In a down market, sellers may be more price-sensitive. Consider offering competitive pricing and commissions to attract clients. There may be a time to offer 2.5% or 2% BAC while holding 3% for the listing side.

3. Provide Expert Market Analysis Showcase your expertise by offering in-depth market analysis. Share data, trends, and insights with potential clients to help them make informed decisions.

4. Target Distressed Properties Look for distressed properties that may be more likely to sell in a down market. Offer your assistance to homeowners facing financial difficulties or foreclosure.

5. Focus on Local SEO and Online Marketing Optimize your online presence with a strong website, social media profiles, and local SEO strategies. Use online marketing to reach potential clients in your target areas.

6. Leverage Social Media Use social media platforms to promote your listings, share market updates, and engage with your audience. Visual content, such as high-quality photos and videos, can be particularly effective.

7. Target Renters Market to renters who may be considering buying a home, especially if the rental market is strong. Offer information on the benefits of homeownership.

8. Host Virtual Open Houses Conduct virtual open houses and 3D property tours to showcase properties to potential buyers. This can expand your reach and attract more interest.

9. Provide Creative Financing Options Collaborate with lenders to offer creative financing solutions to make home buying more accessible for potential clients.

10. Strengthen Referral Partnerships Build strong relationships with other professionals in the real estate industry, such as mortgage brokers, home inspectors, and real estate attorneys. Referral partnerships can lead to new business.

11. Offer Buyer Incentives Consider offering buyer incentives, such as covering closing costs, to make purchasing a home more attractive in a down market.

12. Diversify Your Specialization Consider diversifying your real estate specialization to include different property types or geographic areas. This flexibility can help you capture more opportunities.

13. Provide Exceptional Customer Service Go above and beyond to provide exceptional customer service. Satisfied clients are more likely to refer you to others, even in a challenging market.

14. Educational Workshops and Seminars Host workshops or seminars on topics like home buying, market trends, or real estate investments. This positions you as an expert and can attract potential clients.

15. Adapt and Stay Informed Stay informed about market trends and be ready to adapt your strategies as needed. Understanding the changing dynamics of the market is essential for success.

16. Build a Strong Online Reputation Encourage satisfied clients to leave positive reviews and testimonials on online platforms. A good online reputation can build trust with potential clients.

Generating business in a down real estate market requires creativity, adaptability, and persistence. By offering value, staying informed, and actively marketing your services, you can continue to build your real estate business even when the market is slow. Here’s a more in-depth look at how creativity, adaptability, and persistence play crucial roles:

Creativity

- Innovative Marketing Strategies: In a slow market, traditional marketing may not be as effective. Creative marketing approaches, such as virtual tours, drone footage, or interactive property showcases, can attract potential buyers.
- Content Creation: Creating engaging and informative content, such as blog posts, videos, or podcasts, about real estate trends, market updates, or home buying/selling tips, can position you as an authority and draw in potential clients.
- Unique Selling Propositions: Identify and emphasize unique aspects of properties you’re representing. Highlighting these unique features can make listings more appealing, even in a sluggish market.

Adaptability

- Flexibility in Strategies: Be ready to adapt your marketing and sales strategies based on the evolving market conditions. What worked in a booming market might not yield the same results in a downturn.
- Diversification: Explore new niches or areas within the real estate market that might be more active. For instance, focusing on specific types of properties (like condos, starter homes, or luxury estates) or catering to different demographics can help expand your client base.
- Technology Integration: Embrace technology and digital tools to streamline processes, enhance marketing efforts, and stay connected with clients. Incorporating tools like CRM systems, virtual staging, or AI-powered analytics can provide an edge.

Persistence

- Consistent Outreach: Keep engaging with potential clients through various channels, including social media, email newsletters, or personal follow-ups. Persistence in staying top-of-mind can lead to opportunities even in a slow market.
- Long-term Relationships: Building and maintaining relationships with clients, even when transactions might not be immediate, can lead to referrals and future business. A long-term approach to client relationships pays off in the long run.
- Continuous Learning: Stay updated with industry trends, market shifts, and new techniques. Persistence in learning and adapting to changing dynamics can help you remain competitive.

Ultimately, the combination of creativity to stand out, adaptability to pivot strategies, and persistence in consistently reaching out to potential clients form a potent formula for success in generating business in a down real estate market. The ability to think outside the box, adjust to market conditions, and maintain a steady effort in engaging with prospects are key elements in navigating challenging times.

Agent-Centered • Recruiting • November 15, 2023

Can We Still Command Our 3%?

by Shaun Parker

Selling the Difference

In a challenging climate where the value of realtors is increasingly overlooked, residential real estate agents are compelled to proactively defend their commissions and distinguish themselves amidst a sea of competition.

Let’s shake up our approach in this ever-changing landscape! Imagine a strategy where we secure our 3% listing side commission without compromising the co-op fee. Instead of selling the entire commission, let’s focus on selling the buyer’s agent commission (a.k.a. sell the difference). I am in no way saying commissions aren’t negotiable, but think about it. The seller is coming to you as a real estate professional understanding a fee for services will be rendered upon the sale of their home. Because the seller understands a commission will be charged, do we really have to sell them on the entire commission? By doing this, we can provide sellers with more flexibility and transparency, and position ourselves as the agents who truly understand their needs. It’s a win-win for everyone! Embrace this new approach, and let’s take our listings to the next level.

EXAMPLE

Listing Agent: “…While we’re at it, let’s discuss compensation. My brokerage’s fee for services on listings is 3%. How much would you like to compensate the buyer’s brokerage/agent?”

Seller: “I’m not sure. I haven’t really thought of that. What do you think?”

Listing Agent: “Well, we can compensate the buyer’s brokerage/agent anything you want. We can compensate them zero if you’d like. We can compensate them 2%, 2.5%, 3% or anything outside or in between. It’s completely up to you. Let’s talk about the differences in compensation.

—3%—

(Sell your most desired option first.) At 3%, we can almost guarantee that anyone interested in your home will get the opportunity to view it. Just like my brokerage’s fee for services is 3%, some buyer’s brokerages have a similar policy. Therefore, the buyer may not have to compensate their brokerage in addition to the down payment and closing costs for the purchase of your home. Ultimately, this means if the buyer can afford your home as per their lender’s pre-approval, the buyer does not have to pay any additional out-of-pocket expenses not previously discussed with their lender. This will allow you, as the seller, your largest buyer pool.

—0% or $0—

At 0% or $0, it may be difficult for many qualified buyer’s to afford. In addition to providing the down payment and closingcosts, the buyer would also be responsible to compensate the buyer’s brokerage/ agent. If the buyer’s brokerage requires a 3% fee for services, the buyer would be responsible for paying that entire amount. For example, if your home was listed at $400,000, the buyer would be responsible for compensating their brokerage $12,000 in addition to the 3.5%/5%/10%/20% down payment and 2% in closing costs. This would severely limit your buyer pool. Think about when you purchased your first, or last, home. Would you have been able to afford your house plus the additional expenses of paying your agent’s commission? How do you think those added expenses would have affected your home search process?

The other option at play is the buyer’s agent could either “discount” your property by including the buyer’s agent’s commission in the offer or offer a price higher than the listing price to cover the cost of the buyer’s agent’s commission. In the event the commission is offered in addition to the list price, your property would then have to appraise at that higher value in order to capture the entire amount of that offer. If your home happens to under-appraise the contractual sales price, this could allow the buyer the chance to renegotiate the sales price or give you the opportunity to cancel the contract and place your home back on the active market. Ultimately, this may lead to your property “sitting” on the market for longer periods of time, potentially causing price reductions or inferior offers that are less than desirable.

—2%—

Again, at 2%, we may run into a similar problem on a smaller scale. We should be able to capture more prospective buyers, however, these buyers may still be responsible for making up the difference between 2% and 3% in compensation to the brokerage if their brokerage requires such. With that said, these prospective buyers could be responsible for shelling out an additional $4,000. Just so you are aware, VA and FHA buyers are limited in the additional out-of-pocket expenses they are required to pay. This opens your buyer pool up more, but still prohibits some that cannot afford the additional out-of-pocket expenses.

—2.5%—

(Sell your second desired option last.) Lastly, you have 2.5%. At 2.5%, many of the people interested in viewing your home should have the opportunity to do so. Prospective buyer’s may still be required to compensate the difference, however, 0.5% or $2,000 (if 3% is required by their brokerage) is a much more palatable number than the $4,000 previously mention. This will allow for a larger buyer pool but may not be able to capture EVERYONE.

So, based on this information Mr. and Mrs. Seller, do you have any questions? What are your thoughts? What would you like to offer the buyer’s agent as compensation?”

Remember, our job is to educate our clients. In this instance, you are able to educate the seller on how the commission structure in real estate works. You have given them a choice as to how “marketable” and “accessible” they would like their property to be to prospective buyers. In no way am are you telling them what to choose, but only the situations that may arise with each scenario. Keep in mind, our brokerage can set a standard or required fee. However, we are not allowed to talk about that fee with other agents or brokers outside of our brokerage. Also, we cannot express that the fee our brokerage requires is an industry standard or a common practice in the marketplace.

SELL THE DIFFERENCE!

Agent-Centered • Recruiting • November 14, 2023

Professionalism

by Shaun Parker

How To Set Yourself Apart

Professionalism is a set of qualities, behaviors, and attributes that reflect a high standard of competence, ethics, and conduct in a particular field or workplace. It encompasses a range of characteristics that contribute to a positive and productive work environment. Using professionalism to your advantage can help you advance your career, build trust with colleagues and clients, and enhance your reputation. Here are some key aspects of professionalism and how to use them to your advantage:

Ethical Behavior: Uphold high ethical standards in your actions and decisions. Avoid conflicts of interest, be honest and transparent, and maintain confidentiality when required.
Reliability: Consistently meet your commitments and deadlines. This reliability builds trust and credibility with coworkers, superiors, and clients.
Competence: Continuously develop and update your skills and knowledge in your field. Competence demonstrates your expertise and ability to deliver results.
Communication: Communicate clearly and effectively. Listen actively, express your thoughts and ideas coherently, and adapt your communication style to your audience.
Dress and Appearance: Present yourself professionally by dressing appropriately for your workplace or industry. A polished appearance can create a positive first impression.
Punctuality: Arrive on time for meetings, appointments, and work-related commitments. Being punctual shows respect for others’ time and reinforces your reliability.
Adaptability: Be open to change and willing to adapt to new situations, technologies, and methodologies. Adaptability is crucial in a rapidly evolving professional world.
Teamwork: Collaborate effectively with colleagues and clients. Show respect for diverse perspectives, contribute to team goals, and resolve conflicts professionally.
Accountability: Take responsibility for your actions and decisions. Acknowledge and learn from mistakes, and work to rectify them when necessary.
Self-Management: Organize your time, tasks, and priorities efficiently. Manage stress and emotions, and maintain a positive attitude, even in challenging situations.
Networking: Build and maintain professional relationships with peers, mentors, and leaders in your industry. Networking can open doors to opportunities and provide valuable support and guidance.
Continual Learning: Invest in ongoing education and development to stay at the forefront of your field. Seek out relevant courses, workshops, and conferences.
Problem Solving: Approach challenges with a problem-solving mindset. Use critical thinking and creativity to find solutions and make informed decisions.
Professional Development: Seek out opportunities for career growth and advancement. Set goals, create a career development plan, and work toward your professional aspirations.

Using professionalism to your advantage involves applying these principles consistently in your work and interactions. It helps you gain the trust and respect of colleagues, clients, and superiors. Additionally, it can lead to career advancement, new opportunities, and a reputation as a reliable and competent professional.

Listings • November 3, 2023

“List to Last”

by Shaun Parker

Why Are Listings So Important?

The phrase “You have to list to last” in real estate emphasizes the importance of having property listings as a key component of a successful real estate career. Here are 15 reasons why listing properties is crucial in the real estate industry:

Income Generation: Income generation is one of the most fundamental reasons why listings are considered the lifeblood of a real estate agent’s income. When an agent successfully secures a property listing, they not only establish themselves as the representative for the seller, but they also set the stage for potential earnings. Commissions earned from the sale of a listed property form a substantial part of an agent’s income. Typically, the commission is a percentage of the final sale price, and in many cases, it’s split between the listing agent and the buyer’s agent. Successfully managing listings and facilitating their sale not only ensures a steady flow of commissions but also allows real estate agents to maintain financial stability, cover business expenses, and invest in their professional growth. In a highly competitive field like real estate, the ability to generate income through listings is a critical factor in the agent’s overall success and longevity in the industry.
Increased Visibility: Listing properties is a powerful strategy for boosting a real estate agent’s visibility in the market. When you have active listings, they are often featured on various real estate websites, social media platforms, and in local advertising, making your name and brand more prominent. Potential clients searching for properties or considering selling their homes are more likely to come across your name or agency, especially if you have a strong online presence and marketing strategy. The increased visibility not only positions you as a credible and active agent but also helps you establish a reputation as a go-to professional in your market. This exposure can lead to more inquiries, client engagements, and, ultimately, a broader client base, all of which are vital for building a successful and enduring real estate career.
Establish Credibility: Having listings is a tangible demonstration of your expertise and an essential factor in establishing credibility as a real estate professional. When you can showcase a portfolio of properties under your care, it provides tangible proof to potential clients that you are not just a salesperson but a knowledgeable and experienced real estate agent. Sellers want to work with someone they can trust to manage their valuable assets, and buyers seek guidance from experts who can help them make informed decisions. Your ability to effectively market and negotiate the sale of listings reflects your competence in the field, instills confidence in your clients, and solidifies your reputation as a trustworthy and capable real estate agent. This established credibility can lead to more referrals and repeat business, further strengthening your position in the industry.
Attract Buyers: Listings play a dual role by not only attracting sellers but also drawing the attention of potential buyers. When you have a well-maintained portfolio of properties on the market, it acts as a magnet for individuals or families actively seeking a new home or investment opportunity. These prospective buyers, drawn by your property listings, can become valuable leads that you can nurture for future business. By working with these buyers, you not only help them find the right property but also have the opportunity to convert them into satisfied clients who may return to you for their own future real estate needs. In this way, listings serve as a gateway to building a network of clients that includes both buyers and sellers, creating a sustainable source of business in the real estate industry.
Networking Opportunities: Listing properties opens the door to valuable networking opportunities with other real estate professionals, including buyers’ agents and appraisers. When you have a listing, you often collaborate with a buyer’s agent who represents the purchasing party, fostering relationships that can lead to future cooperative efforts and referrals. Additionally, appraisers are typically involved in the transaction process, offering insights into property valuations and market trends. These interactions provide a chance to connect with experts in related fields, expanding your industry network, and creating a support system of professionals who can work together to benefit clients and facilitate successful transactions. Such collaborative relationships are not only advantageous for your clients but also for your own growth and success as a real estate agent.
Market Knowledge: Managing property listings is a dynamic learning process that keeps real estate professionals continually informed about their local real estate market. To effectively market and sell properties, agents must stay current with trends, pricing, and neighborhood dynamics. By actively participating in listing transactions, agents gain invaluable insights into what’s happening in their area, including changes in property values, market supply and demand, and emerging neighborhood developments. This hands-on experience enriches an agent’s market knowledge, helping them provide clients with more accurate advice, make well-informed decisions, and navigate the complexities of local real estate markets with confidence. In the ever-evolving world of real estate, staying up-to-date is not just a professional advantage; it’s a necessity for success.
Marketing Skills: Promoting listings is a key component of a real estate agent’s role, and it necessitates the development of effective marketing skills. Real estate marketing involves creating compelling property descriptions, capturing high-quality images, designing eye-catching flyers, and implementing online and offline advertising strategies. Agents must master various marketing channels, from digital marketing on websites and social media to traditional methods like print advertising. Developing these marketing skills not only helps in showcasing properties attractively but also boosts an agent’s ability to market themselves and their services. Successful real estate marketing can set an agent apart in a competitive industry and drive more client inquiries, making it an essential skill for long-term success in the real estate field.
Referral Business: Successfully managing property listings often leads to a substantial source of referral business in the real estate industry. Satisfied clients who have experienced your expertise in selling their property are more likely to refer your services to friends, family, and acquaintances who are considering buying or selling real estate. These referrals, driven by positive experiences with your listings, can significantly expand your client base and create a network of potential new clients. Such referrals are particularly valuable, as they often come with built-in trust, making it easier to establish credibility and build strong client-agent relationships. This steady stream of referral business can contribute to the long-term sustainability and growth of your real estate career.
Brand Building: Consistently having property listings plays a pivotal role in building your personal brand and reputation within the real estate community. Each listing becomes a showcase of your expertise and professionalism, contributing to the overall image you project to clients and fellow industry professionals. As your portfolio grows, your brand as a trusted real estate expert is strengthened. In turn, this reputation can help you stand out in a crowded marketplace and differentiate you from other agents. Your personal brand becomes synonymous with quality service, market knowledge, and a track record of successful transactions, making it easier to attract clients, partners, and new opportunities in the real estate field.
Market Trends: Managing property listings offers real estate professionals a unique vantage point for monitoring and understanding market trends. By actively engaging with the sale and purchase of various properties, agents gain firsthand insight into shifts in buyer preferences, pricing dynamics, and changes in the local market’s supply and demand. This intimate knowledge enables agents to adapt their strategies proactively, such as adjusting pricing strategies, refining marketing approaches, or focusing on particular property types that are in high demand. Staying attuned to market trends also allows for more informed and strategic decision-making, positioning real estate professionals to better serve their clients and make data-driven recommendations. In a constantly evolving industry, this adaptability is key to long-term success and maintaining a competitive edge in the real estate market.
Negotiation Experience: Listing transactions are valuable opportunities for real estate agents to gain negotiation experience, a critical skill in the industry. Whether negotiating with sellers to determine the best listing price, working through contract offers with buyers, or navigating the complexities of counteroffers, each step of the listing process hones an agent’s negotiation skills. The ability to facilitate mutually beneficial agreements between parties, while protecting the interests of your client, is fundamental in real estate. Listing transactions provide the practical experience necessary to sharpen this skill, improving an agent’s ability to secure favorable terms and outcomes for their clients, whether they’re buying or selling a property. This hands-on experience in negotiation is not only vital for client satisfaction but also for building a reputation as a skilled and reliable real estate professional.
Learning Opportunities: Each property listing offers real estate agents a wealth of learning opportunities, contributing to their ongoing growth and improvement as professionals. The process of listing involves diverse aspects, from property evaluation and market analysis to marketing strategies and legal compliance. These multifaceted experiences provide agents with a platform for expanding their knowledge and refining their skills. Whether it’s learning about different property types, understanding the intricacies of unique neighborhoods, or navigating new market trends, agents continually encounter fresh challenges and opportunities for growth. Each listing is a chance to build a more extensive skill set and a deeper understanding of the real estate industry, ultimately making agents more adaptable and effective in serving their clients and succeeding in a dynamic and ever-evolving marketplace.
Database Building: Listings are a powerful tool for building and expanding a database of clients and prospects that can provide a steady stream of future business. When you successfully list and sell a property, you establish connections with both sellers and buyers. These clients often become long-term relationships, as they may return to you for future real estate transactions or refer friends and family. Moreover, potential clients who inquire about your listings, even if they don’t proceed with a purchase or sale immediately, can be added to your prospect database. Regularly nurturing and staying in touch with these contacts can result in future opportunities when their real estate needs change. This database becomes a valuable asset, helping you generate repeat business, referrals, and a network of contacts that contribute to your sustained success as a real estate professional.
Market Share: Listing properties is a fundamental driver of market share for real estate agents and can position them as market leaders. The number and quality of listings an agent manages directly impact their market presence and visibility. With a robust portfolio, an agent can capture a larger share of local transactions, establishing themselves as a go-to expert in their area. A significant market share not only attracts more clients and referrals but also allows an agent to exert influence and shape market perceptions. By consistently offering well-managed listings and demonstrating expertise, an agent can solidify their reputation as a market leader who is well-connected, knowledgeable, and highly capable. This reputation can further enhance their credibility and standing within the real estate community, attracting more clients and business opportunities.
Long-Term Success: Achieving a successful and enduring real estate career indeed hinges on striking a balance between listings and buyers. This equilibrium provides stability and income over the long term. Listings generate consistent commissions, establish your presence in the market, and offer a platform for networking, learning, and brand building. On the other hand, working with buyers provides opportunities to diversify your clientele, cater to different needs, and create potential future listings through their purchases. By maintaining a harmonious blend of listings and buyers, agents can mitigate the income fluctuations that often accompany market shifts or seasonal variations, ensuring financial stability. Moreover, it enables agents to cater to a broader range of clients, enhancing their reputation and the sustainability of their real estate business. In the ever-evolving real estate landscape, this balance becomes a strategic advantage that can weather market changes and contribute to a flourishing long-term career.

In the fiercely competitive realm of real estate, the ability to secure and proficiently manage listings is a cornerstone strategy for achieving longevity and success in the industry. Listings not only serve as a primary source of income but also as a prominent demonstration of an agent’s expertise and credibility. By consistently attracting new listings, agents demonstrate to potential clients that they possess the skills and market knowledge needed to handle one of the most significant financial transactions in their lives. Moreover, active listings increase an agent’s visibility, reinforcing their presence in the market and making them a preferred choice for clients and referrals. In a field where reputation and trust are paramount, a strong listing portfolio acts as a testament to an agent’s prowess and becomes a powerful tool for sustaining a thriving career over the long haul.

Finding New Business

Can We Still Command Our 3%?

Professionalism

“List to Last”

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