There are several different ways to do this business, but there are certain truths that are foundational to any successful real estate business. When these seven truths are understood and applied to your business, success will follow.
1. A growing database is a healthy database
The foundation of success in real estate begins with the accumulation of a group of people for whom you can add value and with whom you can build relationships. The state of your database, whether growing or stagnant, is the best way to predict the growth of your future business. Do you have a systematic plan of action to add people to yours?
Your database should be a collection of everyone you know who might buy or sell real estate in the future. It should be growing through the addition of new people and through deepening the existing relationships you have. It should include your family, friends, neighbors, every person you know who owns a home and anyone you pay for services, from doctors to dry cleaners.
It should be growing with the addition of new people on a regular basis. This could be through online lead generation, people you meet in the community, and anyone you speak to about real estate for the first time.
The deepening of your existing relationships comes through communication, whether in person, digitally through email, or through phone calls. The database houses all the contact information for the people you are staying in touch with. It also grows by the documentation of each conversation you have through the notes you make that can be referenced in the future to help you better serve them.
If you allowed me to inspect your database, I feel confident I could predict what you can expect from your business in the future.
2. Consistency increases conversions
Statistics show it takes consumers five to seven impressions before they recognize a brand. In your real estate business, you are the brand. If it takes five to seven impressions just to be recognized, it takes even more to convert a prospect to a closed transaction. This is why having a strategic plan of action for consistently communicating with your prospects is crucial for long-term success.
Questions to ask about your current systems:
- Do you have a regularly scheduled day that you email a newsletter to your database?
- Have you added buyers to automated email alerts when properties meeting their criteria come on the market?
- Are your past buyers on automated email alerts when homes that affect the value of their property come on the market, go under contract or sell?
The more consistent your communication with prospects, past clients, and your sphere of influence, the more business you will do. It is foundational to have a database, but without consistent, value-added communication to that group of people, growth will not occur.
3. The more you help, the more you will be helped
Zig Ziglar said it this way: “If you help enough people get what they want, you will get what you want.”
What is it that your ideal client wants? Real estate clients typically want three things: education, information and dedication.
In real estate, ignorance is not bliss. Every buyer and seller wants to understand the process of buying or selling a home. They want to know what to expect when it comes to how much cash they will need to buy or what expenses they can expect when selling. They want to know if there are unique ways to make their offer stand out in multiple-offer negotiations.
By educating your prospects, you equip them to move toward their desired outcome confidently and to choose you as the agent they trust through the process.
People need the information to make the best decision for themselves and their families. They need information like the current state of the market, the average list to sell price in the current market environment, and where they can find the lender that will give them the best interest rate and best service through the loan process.
By providing quality information, you will attract more clients.
Buyers and sellers want to know that their agent is dedicated and passionate about providing the most professional service possible. Would you rather have a part-time doctor or a full-time doctor? Your clients are the same.
They want to know that you are a full-time, fully engaged, professional agent. They want to know you are dedicated to being the most knowledgeable and professional agent in the marketplace.
There is an old saying that says it is better to give than to receive. In real estate, it isn’t about which one is better. For us it is as simple as the more we give, the more we will receive.
4. What we focus on expands
What are you focusing on in your business? Whatever that is, the opportunities or frustrations in that area are probably expanding. Have you focused on helping buyers but you’re frustrated by how hard it is to find them a house? Maybe it’s time to shift your focus to listings. A simple shift of focus can change everything.
When we focus on something we have our eyes opened to more of what we are focusing on. Have you ever watched a few videos on YouTube and then noticed YouTube begins suggesting videos like the ones you watched? That is the algorithm of YouTube giving you an opportunity to see more of the videos you’ve searched for in the past. There are millions upon millions of potential videos for you to see on YouTube, yet the algorithm brings videos like the ones you’ve searched for in the past to the forefront.
Our brains are the ultimate algorithm. Our subconscious mind filters the millions of data points around us and moves the ones we have previously focused on to our consciousness. Acting like the algorithms online, our brain will provide us more opportunities to expand our knowledge and consciousness of the areas we have chosen to focus on.
Clearly identify what you want, focus intently on this area, and watch the growth and expansion that follow.
5. You’re only as good as the team you have around you
Whether you’re a single agent or the leader of a large team, we all have teams around us. Even the single agent has a team that includes your broker, your favorite lender or inspector, the closing attorney you prefer, or the handyman you depend on for repairs.
Your success hinges on building a group of people you can depend on to help your client’s experience with you to be as seamless and stress-free as possible. This leads right in to the next truth.
6. The deeper your relationships are, the wider your business will grow
Relationships are built over time. They are long-term in nature and the best relationships involve a two-way street of service to each other. Just as deeper and stronger roots bring more fruit, deeper and stronger relationships generate more fruit as well.
The deeper your relationships, the more likely you will have repeat customers. The deeper your relationships, the more likely you will receive referrals. The deeper your relationships, the larger your business will grow.
If you truly believe this is a relationship business, make it your business to build and grow relationships.
7. Self-awareness creates efficiency
Do you know where your transactions over the past few years have come from? Did they come from online leads, referrals, open houses or geographic farming? When you become self-aware of where your business is coming from, and just as importantly where it isn’t coming from, you can optimize your productivity.
If you can identify that 60 percent of your business is coming from past clients, why not invest more of your time, money and effort in generating more referrals? If 50 percent of your marketing dollars and time are spent on online leads that are generating only 10 percent of your transactions, it is time to reallocate your efforts and money.
When you understand where your business has come from in the past and you focus on expanding your efforts toward your most fruitful activities, your business can’t help but grow.
These are the truths I find to be self-evident for a thriving business, but there are countless ways to find success in this business. I’d love to hear the truths you’ve found for your business. Please share them in the comments section below.