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Home » Business And Finance Articles » Why Is My Real Estate Career On The Skids

Why is My Real Estate Career On the Skids?

How do you feel about roller coasters? Do you get nauseous or do you feel the thrill, throw your hands in the air and yell with excitement? If you want to succeed in the real estate industry you must learn to love unexpected turns of events and a wild ride. The real estate market is in an up and down cycle just like the stock market. Currently, many agents fear a soft or slowed market but the market has simply adjusted, as it has in the past. Change is a part of life and in the business of real estate you can count on it.

Two Words: Marketing Plan

Over the last few years many agents rode in on the sellers market and started a business with leads from family and friends. Unfortunately, relying on these types of leads is not a sustainable way of marketing yourself as a REALTOR®. In the excitement of a hot market many agents failed to think ahead and are now struggling to compete. Nationally there is a marketing frenzy that, without a plan of action, will shake you right out of the market. According to real estate expert Terry Watson, one of the "Top 7 Rookie Mistakes" in the real estate industry is having no marketing plan. "When you go into real estate sales, you are going into business for yourself," states Watson. "But many salespeople have no clear goals or timeline for achieving their goals," he continues, "Consistently, real estate professionals who have a written business plan are more successful than people who don't".

Be an Entrepreneur

Basically a REALTOR is an independent contractor. Don't get confused and think, as an agent, you work for a broker. If you are not earning a commission split of ninety-five to one hundred percent why take your money and pay fifteen to fifty percent of every commission dollar? This alone will put your real estate career in the toilet. At the end of the day you:

1. Lack the money to market yourself.
2. Are unable to claim the maximum number of tax write offs.
3. Cannot afford an office assistant so you can meet with clients and prospect.

Terry Watson calls "Not Maximizing Your Productivity" another one of the "Top 7 Rookie Mistakes". "According to the NATIONAL ASSOCIATION OF REALTORS® Member Profile," Watson says, "real estate practitioners who used at least one personal assistant had a significantly higher sales volume than those who didn't. You may erroneously think that you can't afford a personal assistant. But think again." Also every agent should partner with a franchise. Although you have to generate your own leads, you put more money in your pocket and take charge of your own destiny.

Technology Isn't Just for Geeks

Another key to a successful real estate career is to utilize the technology available. As a real estate agent, technology makes you more efficient and organized. Again Terry Watson writes "If you look at top-producing real estate professionals who are selling 600-plus units a year, you will notice that they have two things in common: assistants and systems." He continues, "These practitioners are multiplying their efforts and increasing their output through people and technology." Also, approximately eighty percent of all buyers begin their real estate search online. The Internet is a tool no REALTOR® can afford to ignore. As an agent, I not only have web sites to attract online buyers and sellers nationwide, I have assembled a team of Internet marketing specialists. A focus on my niche market, those planning to retire or relocate to the Williamsburg region, makes Internet marketing essential. Don't spread yourself thin, find a marketing strategy that works and invest in it!

Last But Not Least: Customer Service

Although exceptional customer service should be the top priority of every real estate agent, it isn't. Customer service counts, especially when assisting people with the sale or purchase of one of their most precious investments, a home. I find more new clients by answering my cell phone and returning messages within four or five hours. Homebuyers and sellers don't want that "real estate if you're lucky" feeling, they want a REALTOR® for life. Also, when you are with a client don't answer phone calls. Give them your undivided attention and be responsive to their needs. These practices ensure referrals in the future.

Your career as a REALTOR® can lead to success if you are willing to put your sweat, heart and ambition into this ever changing industry. Find a real estate company to work for that is agent friendly and in turn you will be customer friendly. Approach successful real estate agents and ask them to mentor you. To learn more about real estate and the current market visit my web site at http://www.voncannonrealestate.com.

And here is another random article you might be interested in...

Are You Throwing Good Time After Bad?

We've all heard the old saying "throwing good money after bad" referring to losing more money on something rather than cutting your losses and moving on. Laura was doing the same thing in her business -- only it was time she was wasting.

After two years in business, she was still networking with the wrong people. As a project management consultant, her ideal target market consists of large corporations with a designated budget for managing the processes in their company. The problem is, she isn't talking to the right people.

"I feel absolutely defeated. I'm not sure I can do this anymore. Maybe I should be selling something completely different. People either want what I offer but don't want to pay for it or they don't see the value in what I offer. I meet prospects at networking meetings and call them to set up a meeting. Then I spend a day researching their industry, so that I can speak intelligently during the meeting. Then on the day of the meeting, I spend half a day driving to and from their office. Within the next few days, I put together a proposal for them and send it off. Then I follow-up with them every week to see if they want to move forward with the project."

I felt the need to jump in. "Okay, can I stop you for a minute? It sounds like you're spending a lot of time up-front. Let's say it takes you 3 hours to drive to/from and attend a networking event, 30 minutes to follow-up with a prospect to set up a meeting, 4 hours to research their industry to prepare for the meeting, 4 hours to drive to/from and attend the meeting, 3 hours to put together a proposal, and 1 hour to follow-up several times. That's 15 1/2 hours pursuing one prospect."

"And the biggest issue here is that they may or may not end up being a qualified prospect because it doesn't sound like you spend any time during your initial conversation making sure they want your service, can afford your service and are the person to make the decision to purchase your service."

Laura was floored. "I never even thought about it that way. I just need to get more business, so I feel like I need to be out there meeting people and at least getting the chance to send them a proposal. I don't really have anything else to do at my office sometimes. If I wasn't doing this, what would I do all day?"

Like Laura, many early-stage business owners feel better if they are busy, making calls, going to networking events, meeting clients, doing proposals, etc. But if you're staying busy just to stay busy, you end up spending a lot more hours working for a lot less money which usually results in feeling the need to put in even more hours to make the business "work."

To avoid spending time doing the wrong things with the wrong people, you have to take the time to evaluate your prospecting process. It's all about defining what makes a good prospect for your business and qualifying your leads as quickly as possible before they get too far into your prospecting process. In Laura's case, if she formulated just a few questions she could ask leads in order to determine whether they were interested in her service, could afford her service, and were in a position to make the decision to buy her service, she could save numerous hours.

Depending on the complexity of her qualifying questions, she might be able to do this at the networking event itself or on the initial phone call she makes to follow-up. So, instead of the purpose of the phone call being to set up a meeting, the purpose now becomes to qualify whether or not this "lead" is a "qualified prospect."

In evaluating Laura's prospecting process, there are several points at which she could potentially save time by:

• networking with corporate decision-makers, not entry-level managers or small business owners
• qualifying leads on the phone before she sets up meetings
• allowing the prospect to educate her about their company by asking them questions
• ensuring that the decision-maker is in the initial meeting
• streamlining and automating her proposal process to include only what is required at this stage

After overhauling her prospecting system, Laura has freed up 12-15 hours/week to focus on improving the other elements of her sales process, marketing plan, skill development, etc. And, once the sales start coming through, she'll have more time to allocate to billable work which will earn her more money while working fewer hours.

So, ask yourself – are you throwing good time after bad? Have you ever actually written out your prospecting process? Do you know what steps you go through once you meet someone who might be a prospect?

If not, take 15 minutes right now to write down exactly how you process your prospects. Start by writing down all of the ways in which you meet prospects, including ones that come to you as well as ones you seek out (i.e. networking meetings, trade shows, web site, calling your office, cold calls, current clients).

Now, follow each of these entry points through step-by-step to chart exactly what process you take a prospect through. For example, if you get a lead through your web site, the prospect might receive information from you automatically via email before you've ever spoken to them. But, when you meet a prospect in-person, you might not give them anything tangible. You might just verbally describe your business or services.

After you have all versions of your process written down, review them one by one to identify any areas in which you are investing too much time, chasing unqualified leads, not providing information that would convince the prospect to buy, etc.

Once you've identified these areas of opportunity, brainstorm about how you can re-vamp your prospecting processes to use your time more efficiently. The less time you waste on unqualified, underfunded, disinterested leads, the more time you'll have to invest in qualified, paying clients.