How to Attract Clients in Residential Real Estate
by Alan Rigg
Published on this site: June 13th, 2005 - See
more articles from this month...
Doesn't it seem like everyone you know has a friend, relative,
or acquaintance that is a realtor? How could anyone, especially
someone new to the industry, possibly achieve success when
faced with this much competition?
The answer begins to appear when you consider the following
questions:
- How many licensed real estate agents have the TALENTS required
for success in sales?
- How many have been trained in EFFECTIVE SELLING TECHNIQUES?
- How many know how to PROSPECT effectively?
- How many know WHICH QUESTIONS TO ASK to determine the factors
that are most important to each prospect's buying decision?
- How many take their profession seriously and are WILLING TO
PUT IN THE EFFORT AND HOURS that are required to build a successful
business?
- How many of them regularly SELL MULTIPLE HOUSES PER MONTH?
The 80/20 rule definitely applies to residential real estate. In
fact, some statistics suggest the ratio is more like 90/10 (where
90% of home sales are made by just 10% of realtors), with the vast
majority of home sales by the top 1%!
So, how can a novice realtor attract clients? By building his or
her CREDIBILITY and RELATIONSHIPS. Let's explore these two
topics separately.
How to Build Credibility
Imagine you are a brand new realtor that has just passed the licensing
exam. Why would someone turn to YOU to help them make what may be
the largest investment of their lifetime? What makes you stand out
from other licensed real estate agents?
If you are new to the profession, you won't have success stories
or testimonials to point to as answers to these questions. However,
there are many things you can do to build your credibility quickly.
Here are a few examples:
- You can perform in-depth research on a specific aspect of your
local real estate market and write a "white paper" or
"special report" to share with prospects. Examples of
potential topics include "The Hottest Markets In (a specific
area)", and "Resale Home Prices for the Past 12 Months
In (a particular community)".
- You can compile a "New Resident Resource List" that
educates your prospects on local stores, service companies, fun
activities, family-friendly restaurants, etc.
- You can write articles and deliver free speeches or seminars
that are based upon the results of your research.There is tremendous
power in AUTHORSHIP. If you can place useful information that
has your name on it the hands of potential prospects, you will
earn credibility.
How to Build Relationships
A good starting point is making sure everyone you know (friends,
family, acquaintances, past business contacts, etc.) is aware that
you have become a licensed real estate agent. It doesn't matter
where they live who knows when one of their friends or associates
will decide to move into your target market? The best approach is
a simple, "soft sell" message such as, "If you hear
of anyone that might be interested in buying or selling a house,
please let them know that I would be delighted to help them."
When you are sure that everyone you know is aware of your new role,
start pursuing NEW relationships. Don't limit yourself to contacts
that may themselves become prospects. Also look for opportunities
to develop relationships with people that can REFER prospects to
you. This includes:
- Mortgage brokers
- Bankers
- Salespeople in non-competing sales roles (i.e., new home sales
vs. resale)
- Property managers
- Corporate relocation managers
You can also pursue relationships with people that have large customer
lists such as accountants, financial advisors, and insurance agents.
Focus on getting to know your potential prospects and referral
sources as PEOPLE. What do they do for a living? What constitutes
an opportunity for them? What are their issues and concerns? What
are their personal interests and passions?
If you constantly have your "radar" up, you never know
when you will run across a resource that could be helpful to someone
else. If you focus on helping other people accomplish their goals
and fulfill their needs and wants, you will be astonished by the
number of referrals that come your way.
As you build your list of satisfied customers, you will be able
to expand your sales success through referrals and testimonials.
However, the strategies described in this article will always provide
a boost to your opportunity pipeline!
Alan Rigg is the author of How to Beat the 80/20 Rule in
Selling:Why Most Salespeople Don't Perform and What to Do About
It. His company, 80/20 Performance Inc., supplies specialized sales
assessment tests and consulting to help organizations build top-performing
sales teams. For more sales and sales management tips, visit: http://www.8020performance.com
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