Running Your Business Like a Business

Running Your Business Like a Business

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development (CRD), with assistance from Lauren Hampton and the Podfly editorial team.

Running your business-like a business-is crucial for getting maximum value out of it, and your efforts. As REALTORS(R), it is crucial to plan and be wise, and to think of yourself as a business owner at all times.

Episode eight of the CRD Podcast is the first of two episodes that explore different aspects of business planning for real estate professionals. Part one is a one-on-one by host Monica Neubauer and an industry expert.

Part two, which will release later this month of December, will be a panel discussion, so you can hear some different opinions on the same topic from peers.

Neubauers guest for episode eight is Mark Given. Given has been teaching real estate courses nationally since 2004. He has been president of and served on numerous committees for REALTOR(R) Associations at the national, state and local levels. In addition to his speaking, teaching, and volunteering careers, Given is a prolific author. Given has a book series about his trust-based business philosophy, and has also co-written four other books. His weekly blog, "Marks Minute," is read by thousands-you can sign up to get on the list on his website. Before launching his real estate career, Given spent 20 years as CEO of a multi-state retail sales and rental company.

Given and Neubauer talk about a number of things that should become part of your business plan: finding a mentor, how to foster a good broker relationship, and the cost of training (or not getting trained) in several areas, as well as niche positions in the market and keeping up with your past clients. They also discuss aspects of building a team and being proactive in your business. Below are some of the highlights and key ideas from the discussion.

Find the right brokerage for you. One of the first things a new agent has to do is find a brokerage firm. You need to find a good fit with your broker, so they can help nurture you and gain momentum. Look for a brokerage firm that has potential mentors, a good educational program, and a culture that connects with who you are. Looking for mentors both within and outside the company is important in getting honest answers to some important questions. Learning to ask good questions is a huge part of the real estate industry.

Budget for periods of uneven cash flow. Understanding the money aspect of real estate is important in showing a profit and actually making money in your business. You likely won’t be closing on any deals right away, and you have to budget for the periods of time that you don’t have any revenue. Some expenses include gas, marketing, MLS and association fees, and other additional business fees. Taking a class that talks about the cost of running your business is a great idea for new agents-you don’t want surprises that might cause stress that would prevent you from performing at your highest level. You also don’t want to get ahead of yourself; don’t spend your earnings before you make them!

Don’t skimp on training. Training should be part of your business plan, as well-and not only for new agents. There is always new information to be learned. It is very beneficial to do more training besides what is required for your continuing education. This can help grow your own confidence, and make your business more successful.

Find your special niche. Most agents run their real estate business as generalists. There are plenty of agents who succeed running their business this way, but Given has found that agents that take the time to specialize in a given niche often become the "go-to" person for that niche. If you’re going to run your business like a business, it’s in becoming really good at some part of a business that you become recognized as the best person for that part.

"Pick a niche and get really good at it and all of a sudden your business can really explode," explains Given.

Develop systems to help your business run more smoothly. It is crucial for people running a real estate business to have better systems. Some of these systems include contact management systems or systems that track your business profit. Your management systems are only as good as the information you put in them. You need to have some systems in place to make sure you’re doing things in a timely manner, and following up with your clients. There are many companies that already have these systems in place-take advantage of them! Start your day by making a plan for what you need to get done that day.

There is quite a bit more helpful information covered in episode eight, and we invite you to check out this particular episode, as well as the seven that came before it, at www.CRDpodcast.com, or wherever you sign up to listen and subscribe to your favorite podcasts. Our goal with the podcast is to support and broadcast great conversations (in a free and easily-accessible format) between and for real estate professionals who want to always keep learning and continuously elevate their practitioner skills.

The Center for REALTOR(R) Development podcast is sponsored and supported by NARs Center for REALTOR(R) Development, an online learning platform designed specifically for REALTORS(R).

For more information, please visit the online learning portal from NARs Center for REALTOR(R) Development (CRD)and the Learning Library. Here, real estate professionals can sign up for online professional development courses,industry designations, certifications, CE credits, Code of Ethics programs and more. NAR's CRD also offers monthly specials and important education updates. New users will need to register for an account.

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Why You Should Be Working With Renters

Why You Should Be Working With Renters

RECBL - Real Estate News

As a real estate agent, you know a steady stream of leads is the only way to keep your business moving; however, many agents shy away from rental leads because they believe they aren’t worth the time or investment.

The only tool that allows you to time-stamp the life-cycle of a customer, rental leads can be a great way to increase your client list. The best part about rental leads is that most agents aren’t focusing on them, so it opens a new, untapped market. If you put these tips to the test and find your business thriving, you may have found your niche.

Why should I work with rental leads?
While many groups such as millennials are moving toward homeownership, some can only afford to rent. This means there’s a large portion of potential homeowners waiting. If you can work with them now, you’ll know exactly when their lease is set to expire. This puts you in prime position to contact them about buying a home as their rental period ends.

Where do I begin?
Before you start, set a price point (e.g., $2,000/month). This means you’ll only work with clients who are looking for rentals priced at $2,000 and above. After they’ve found their dream property and moved in, send something small to congratulate them. This creates a warm relationship, giving you something to build on in the future.

How can I convert renters to buyers?
After your clients have moved into their rental, add them to an email campaign and invite them to follow you on social media. Share periodic tips related to saving for a down payment and how to prepare to buy a home. After they’ve been renting for nine months, contact them directly to ask if they’re interested in buying as their lease comes to an end. Since you helped them before, you know exactly what they’re paying, where they live, and what they wanted in a property. 

This gives you a great advantage in helping them look for a home. If they seem a little hesitant, send them some properties that show how much they could be saving by owning instead of renting.

Keep in mind that if someone inquires about renting, it doesn’t disqualify them from buying. Many renters have great credit scores and savings, but don’t know they can afford a home. You could show them that its less expensive to own than rent. If it turns out a rental client doesn’t want to buy, you can always refer them to another agent.

What do I do with the leads that don’t meet my price point?
If your price point is $2,000 and you have a number of leads below this price range, farm them out to other agents. Offer to sell these leads for a nominal fee ($5 each) to rental-specific agents. Over time, they’ll pay for themselves. If you’d rather keep them in-house, these leads could be great for new agents who are still building their experience.

Ready to start building your client database? Homes.com can connect you with quality rental leads in your area. Don’t let any more rental leads slip away from you; start connecting with them today. For more information, visit bit.ly/homesrental.

Mark Mathis is general manager of Agent and Broker Sales at Homes.com.

For more information, please visit connect.homes.com.

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Build Rapport and Convert More Leads

Build Rapport and Convert More Leads

RECBL - Real Estate News

"Know, like and trust" is a three-step process that agents need to master in order to convert more of their own lead database. Most leads start out as strangers who transition into a warm lead and then evolve to someone that "knows" you as their sales person. Getting to the "know" stage is essential in the lead conversion process.

Prospects must know you because, when they do, they’re more likely to like you and refer you to other buyers and sellers.

Trust is also an important part of the equation. When your clients trust you, your advice has greater weight and the sales process goes more smoothly.

There are many ways to build "know, like and trust," and they all begin with building rapport with your leads. Here are 10 tips to start your relationships off right!

1. Make a good first impression. Whether your first meeting is over the phone or in-person, you have to make the best impression possible. Speak with confidence and greet them with a smile. Make sure you present the image of a relatable professional. If you dress too nice, you could ostracize your more casual leads. If you dress too shabby, however, they won’t see you as a pro.

2. Small talk. Don’t dive straight into questions about income, savings and credit score. Break the ice with some safe, comfortable small talk so they can get comfortable with you.

3. Call them by their name. Start using your leads name right away. Not only will this help you remember it; it will also give you a psychological foot in the door. People love hearing their names. Using it can help endear you to your lead.

4. Open-ended questions go a long way. People love to talk about themselves. Let your prospects share information about themselves by asking open-ended questions like, "What’s the most important thing you must have in your house?"

5. Find common ground. Finding out what you have in common can help you bridge the gap between you and your lead. Do they like basketball? Do they enjoy cooking? Have they been to that coffee shop downtown with the really great biscotti?

6. Offer a compliment. Make sure any compliments you give are honest and sincere. Otherwise, they may come across as condescending and damage your relationship with your lead.

7. Model your body language. Observe your lead to determine how loud your body language is. This will help ensure you don't intimidate them.

8. Adjust your tone of voice. People typically like people who are similar to themselves. Try to adjust your pace, volume and tone to be closer to that of your lead.

9. Be genuine. If you don’t like football, don’t pretend you do. If you aren’t feeling bright and bubbly today, don’t force it. Real estate relationships aren’t about acting. Let your leads like you for you. Be yourself.

10. Be empathetic. People buy and sell homes for a variety of reasons. They could be going through a divorce or having a new baby. They may need a larger home to take care of an aging family member. Whatever is going on, there is an innate desire in most people to be understood. Give your leads that understanding by acknowledging their hardships, triumphs, and other driving emotions.

Now that you have the "know, like and trust" process to convert your leads, if you are looking for ways to attract first-time millennial homebuyers, Homes.com can help. With over 13 million monthly visitors, Homes.com can connect you with quality leads in your area by giving you the ability to target consumers during the initial stages of their home search process. Don’t let any more of your local millennial homebuyers slip away to your competitor. Start connecting with them today.

For more information, please visit connect.homes.com.

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Economic Forecast Perks Up

Economic Forecast Perks Up

RECBL - Real Estate News

Analysts are amending their economic forecast due to higher GDP expectations, even as Hurricanes Harvey and Irma weigh on growth, according to Fannie Mae’s Economic & Strategic Research (ESR) Groups recently released Economic and Housing Outlook for September 2017.

The Outlook projects the economy will perk up 2.2 percent over the course of the year, up from the 2.0 percent initially reported.

"For the first time in 2017, we have increased our full-year growth outlook," says Doug Duncan, chief economist at Fannie Mae. "The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast. The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle.

"Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts," Duncan says. "Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories."

Source: Fannie Mae

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Real Estate Myths Debunked: Lead Generation Reminders

Real Estate Myths Debunked: Lead Generation Reminders

RECBL - Real Estate News

Lead generation is the key to selling real estate. In today’s digital world, 80 percent of buyers search for homes online which is why agents rely on websites, social media, and email to attract potential buyers.

However, agents can’t rely solely on digital marketing. A good old-fashioned phone call can still go a long way. To understand how to find qualified leads, well debunk three myths that many believe are true:

The identity of the agent is most important.
When a buyer searches a real estate website, they’re most interested in finding a list of homes for sale. While the identity and background information of an agent is valid, it’s not what drives buyers to the site. First and foremost, a real estate website should cater to the buyer by providing a searchable database of homes.

Asking buyers to fill out a short form online is best.
Most real estate sites encourage buyers to fill out short forms to save homes they like, learn more about a specific house, or get in touch with an agent. Many believe longer forms bother buyers and may even cause them to leave the site; however, that’s not the case. Conversion rates stay generally the same whether or not they include a comment section. Giving buyers the chance to ask a question or leave a comment allows agents to personalize their responses and provide better customer service.

Online responses are better than phone calls.
While many buyers conduct research online, that doesn’t mean it replaces a personal touch. Agents should use a balance of online tactics and more traditional communication options, such as a phone call or a face-to-face meeting.

Real estate agents must build relationships, which should be done through a combination of online and traditional communication. For a real estate agent to succeed it’s not about collecting hundreds of potentials, it’s about collecting qualified contacts. You want leads that are serious about buying a home.

If you need assistance finding quality leads, you can reach out to a marketing company to help you establish an online presence that attracts qualified buyers.

For more information and to begin building your online brand, please visit LeadHax.com.

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Start Strong, Finish Stronger with a Big Q4 and Happy New Year

Start Strong, Finish Stronger with a Big Q4 and Happy New Year

RECBL - Real Estate News

We’re about to begin the final stretch of the year. Even if you’re close to reaching your goals, now is not the time to give in to distractions. While it’s necessary to plan for time off at the end of the year, now is the time to work hard to not only reach your goals, but also set yourself up for 2018, as well.

Remember: the seeds you sow now are the referrals you’ll reap in the coming year. Finish the year strong and you’ll be able to maintain your momentum in the New Year.

Start planning for next year.
We live in a time of immediate gratification; however, success isn’t immediate-it takes years of planning and consistent practice to succeed. Although the plan doesn’t need to be set in stone, it is time to start thinking about next year. Creating a practical and disciplined plan, and then committing those goals to writing, will allow you to measure where you are and what proactive lead-generating activities you need to do to make your goals a reality.

Think long-term.
When you’re busy, it can be tough to plan ahead; however, once those transactions are winding down and the contracts are signed, it’s essential to have more business in the pipeline. Keep lag time at a minimum by making time for lead-generating activities, even when you’re busy. Focusing on the long-term will ensure you keep your momentum up and transactions on deck.

Get face-to-face with clients.
The relationships with your clients drive your business. The autumn season is an ideal time to get face-to-face with your best clients. Plan a fun client party that takes advantage of the season, such as a fall hayride or pumpkin picking. Or, swing by your clients homes with a small thank you gift, such as a small pumpkin, a pie or their favorite warm beverage. Don’t forget to thank them for their business and referrals, and ask them to continue to refer you. For more inspiration, here’s a "referral recipe." Give it a try for a week! If you meet new people in the process, be sure to get their information and add them to your database.

Make time for personal development.
Stay sharp and on top of your game by taking a class or seminar. Enroll in a local or online training or register for a real estate event near you. Continuous learning not only keeps you up-to-date on the market so you can serve your clients better, it also helps you stay motivated. When you commit to growing yourself, you help to grow your business.

Continue to track your activities.
Tracking allows you to monitor your progress so you can see how far you’ve come and know how much you need to do to achieve your goals. Knowing your numbers also helps you stay motivated to succeed.

Finish strong.
The more activities you do, the closer you become to your clients and the more referrals you may be able to generate if you ask or remind them. When you focus on the fundamentals, you can be sure you’ll finish strong.

Continue your success in 2018 by setting the stage for it now. Your fourth quarter is a sprint; schedule your goals and continue to work hard by utilizing productivity programs like the Blitz: Finish Strong. You'll be glad you did when the New Year comes!

For more information, please visit www.buffiniandcompany.com.

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You make the call!

You make the call!

Rick Geha began his real estate career at age 22, and has been selling for over 36 years and has run, managed or owned real estate offices for the past 23 years. His love of people and mentoring their passions has led him to a successful career as a speaker, trainer and coach.

As I have ventured through my 37-plus years as a real estate agent, I have to smile at the fears that kept me from creating more, in less time.

By my 13th year in the business, I had started coaching, speaking and training, yet I was still a student of the business. I would teach a class and attend three other classes. What I found is that many others thought the way I did, had similar fears, and had the same limiting beliefs.

Real estate people-in fact salespeople of all kinds-don’t seem to like doing the most basic thing that will get them more sales. The single basic thing most salespeople don’t do; talking to people. I’m sure a good 80 percent or more of you will identify with that sentiment.

In 2005, I was told to take a good look at the 2,700 names in my database, then asked a serious question: "Rick, when was the last time you actually spoke to those people?" The question paralyzed me. It had been a while.

So, I began the task of calling, emailing and doing all I could to reach each and every single one of those people. It was exhilarating and heartbreaking, all at the same time. Over 1,200 of them had bought or sold something without me, as I had done nothing other than send them a magnetic 12-month calendar at the end of each year. Obviously, this wasn’t enough to keep them committed to me.

It was in that harsh moment of reality that I wrote an apology script, which I still share and use today. I was shocked at how willing I was to use it, in addition to how willing agents all over the U.S. and Canada were to use this script without hesitation. Why? Because at no point in the script do you actually ask for business.

The main point of the apology script is to apologize for having been out of touch for so long. You say it’s your fault, and to make sure it doesn’t happen ever again, you’re going to get down some important details and be in touch regularly. I start by getting their birthdays, their wedding anniversary, children’s names and ages, and, if you can find it online, the anniversary of the date they closed on their home. I also like to make sure I have the proper email and mailing address, home and cell phone numbers, and anything else to make a thorough file.

This script has helped me, and many others, more than I can relate. Remember: "Everything works, and nothing doesn’t!" Either way, start by talking to more people every day than you did today.

Over the past 15 years, he’s led more than 1,000 classes and workshops throughout the U.S. and Canada. He is currently a coach with Workman Success Systems. Contact him at Rick@RickGeha.com.

For more information, please visit www.workmansuccesssystems.com.

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Real Estate Titans Reveal the Keys to Real Estate Success

Real Estate Titans Reveal the Keys to Real Estate Success

RECBL - Real Estate News

After 17 years in real estate, authoring the "The Foreclosure Revolution" and building a large real estate portfolio, Joe Sesso, national speaker for Homes.com, is excited to introduce to the public his latest project: his new book, "Secrets of Top Selling Agents," which is based on the popular webinar series of the same name.

"I watched every episode and I’ve encouraged countless agents over the years to do the same," said Sesso in an interview with webinar host Deb Helleren. "I realized if I could take the meat and potatoes from my favorite episodes and compile them into one book that it could help agents learn the valuable lessons and tips from these industry titans."

Sesso was able to pull together tips from some of the biggest names in real estate."This book provides a blueprint for success from successful people who have mastered their business, so if agents can follow the principles of this book, they can be extremely successful in real estate," said Sesso, "There’s no question about that."

It’s not just the speakers who are brought together with "Secrets of Top Selling Agents," but also the readers. No one reading this book is going to feel left out or like they need to switch companies to utilize the tips.

"This book is for you...whether you’re a brand-new agent or a veteran who’s looking to really build on their business and be able to take it to the next level."


​For more information, please visit connect.homes.com.


View additional recently released Real Estate books.

 

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How to Find a House Today

How to Find a House Today

Cash Buyers List News

​This year may be the most difficult in a decade to buy a home, especially for a first-time homebuyer.

Prices are soaring in most markets, and for affordable starter homes, the price is rising faster than larger homes.* Supplies are suffering from a three-year inventory drought that also is hitting starter homes hardest.

The number of starter and trade-up homes fell 8.7 percent and 7.9 percent, respectively, during the past year, while the inventory of premium homes has fallen by just 1.7 percent, according to Ralph McLaughlin, Trulia’s chief economist.*

There’s little leeway for mistakes in today’s marketplace. Discipline is essential, and the learning curve is stepped. Buying a home is serious business, and in most markets today, it is the most difficult step in the process for move-up buyers, as well as first-timers.

Here are nine tips on house-hunting in today’s marketplace that will put you ahead of the competition and may spell the difference between success and failure.

Hire a specialist. If you had a serious medical condition, you would seek advice and treatment from a medical specialist. Real estate is also a large and complex field. Many brokers and agents specialize in delivering better service to their clients and customers. If you’re serious about finding a home today, hire a REALTOR(R) who specializes in serving buyers. Look for one with the designation ABR after their name. It stands for Accredited Buyers Representative and means that they are REALTORS(R) who have received specialized training from the Real Estate Buyers Agent Council (REBAC) and have experience representing buyers.

Even if you don’t hire a specialist, you should hire a REALTOR(R). Not all agents are REALTORS(R); REALTORS(R) are members of the National Association of REALTORS(R) (NAR) who are licensed and abide by NARs Code of Ethics. Hiring a REALTOR(R) with an ABR designation won’t cost you anything, and a professional’s assistance could make all the difference. Above all, don’t try to go it alone today. Last year nearly 90 percent of successful buyers used an agent.**

Don’t start your search until you are ready. It’s a good idea to spend some time online surfing real estate sites and learning about real estate and checking out what’s available; however, you aren’t a serious buyer until you have done all you can to improve your credit, raised the money you need for a down payment, been pre-approved for a mortgage from at least one lender and hired an agent

Make a budget and stick to it. The amount for which your lender pre-approves you is not your budget. Your pre-approved amount is conditional and can change when you apply for a mortgage. Moreover, it does not include many of the other costs of homeownership, like taxes, home insurance and maintenance.

Sit down with your agent, make your budget and stick to it. As a rule of thumb, economists recommend you spend no more than 30 percent of your gross income on housing costs. Make a pledge to yourself to stick to your budget. There are few heartaches worse than falling in love with a house you can’t afford or stretching yourself so thin that you are "house poor" for years to come.

House hunt every day. Looking for a house in today’s market is like having a second job. Financially, finding the right home may be even more important to you than a second job. The outcome of your search will determine where you live and how much you spend on housing for years to come. Be proactive with your agent to learn as much as you can about the home-buying process and conditions in your market. Spend time every day reviewing listings and learning about neighborhoods.

Drive the neighborhoods in which you are interested and go to open houses to get a feel for the market and to meet listing agents who may have a home that meets your criteria. Check out "coming soon" listings to get a head start on the competition.

Use a selection of sites. Most buyers start their house search on one of the major national real estate sites like realtor.com(R), Zillow or Homes.com. These sites have great features, research and how-to material. As you get more serious about finding a house, increase your selection of sites to include your local multiple listing services, if yours has a consumer site with listings (not all do). Also, bookmark several of the leading local brokerages in your market. Listings may appear earlier on a local brokerage site than a national site, and often updated information like contracts or price changes are posted first on the site of the listing broker who represents the property. Sign up for email updates of listings that fit your criteria.

Be flexible. You may find that you cannot afford to live where you would like, or you can’t afford the size or amenities you want. If those are deal-breakers for you, you may not be ready to buy in your market today-or you might revisit your plans and decide to live a little farther out from the city, buying an older house that you can improve over time. Starting out in a condo might be an acceptable alternative. Chances are prices in your market are not going to decline, and by buying now, you will begin to accumulate equity. Though mortgage rates have risen over the past year, they are still very reasonable by historical standards, which mean that the odds are they will continue to rise, rather than fall, in the future. Expand the geography and price ranges on the websites you are using and see what you find.

Sweeten your offer. When you find a house on which you want to make an offer, ask your agent for a comparative market analysis (CMA) to determine its value. Don’t rely on the estimated values provided by valuation tools on real estate sites. Knowing the value is important not just for deciding how much to offer, but also to anticipate how much the house will appraise for. CMAs are based on recent sales of comparable properties, similar to appraisals. Chances are you will be competing with other buyers, including investors who pay all cash. Sellers are not only looking for the best price; they also want an offer that will close on time from a buyer whose financing won’t fall through.

Consider sweetening your offer by increasing your down payment and getting more than one pre-approval. Be flexible on considerations like renting back if the owner is a move-up buyer who may need time to find a new home. If you are a move-up buyer, sell your current home before you buy a new one. Most sellers react negatively to offers that are contingent upon a buyer first selling his current home.

Don’t lose your deal. About 23 percent of contracts on homes today have a delayed settlement, and 7 percent of contracts fail to close and are terminated. The leading causes for delayed settlements are issues related to obtaining financing and appraisal issues. Among contracts that were terminated, 25 percent faced issues related to home inspections, and 20 percent had issues related to the buyers ability to obtain financing.***

One way to improve your odds for financing is to get more than one pre-approval so that you are ready to talk to a second lender if your first application fails. Most appraisal issues result from appraisals that come in lower than the contract price and buyers must come up with more cash. One way to protect against a low appraisal is to know the value of the house before you make an offer and make a larger down payment than you have to.

Persistence pays off. Don’t despair if a seller selects another offer over yours. Learn from your experiences. A better home may come on the market tomorrow. Last year buyers searched for an average of 10 weeks and looked at a median of 10 homes**, but that’s just a national average for all buyers. If you are a first-time buyer in a hot market, expect your hunt to take longer. Don’t quit when the weather turns cold. Fall and winter can be good times to find a home. There are fewer listings than in the spring or summer, but there’s also less competition, and sellers are usually more motivated.

* McLaughlin, Ralph. (2017, May 22) Don’t Call It a Comeback: How Rising Home Values May Be Stifling Inventory. Retrieved from www.trulia.com/blog/trends/inventory-q117/

** 2016 Profile of Home Buyers and Sellers. National Association of REALTORS(R).

*** REALTORS(R) Confidence Index: Report on March 2017 Survey. National Association of REALTORS(R). Retrieved from www.nar.realtor/sites/default/files/reports/2017/2017-03-realtors-confidence-index-04-21-2017.pdf.

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