I have been in this business since 2002, and I have tried it all. From FSBO’s to Zillow. I have been around the block several times running. Now that I am coaching real estate agents with my company, Zero to Diamond, while I continue to grow my personal real estate business, I have opened my eyes to all kinds of avenues you can take to generate quality leads.
So, what is the MOST effective way to produce the best real estate lead generation?
Well, I will say that there are not two realtors in history that have built their business the same exact way. They may have built it on the same principles, but no one can have an identical business. There are too many properties and everyone has a different personality that connects with different people. Therefore, no two businesses can be alike. With that being said, every agent succeeds by going down a different path regardless if they work with the same principles. Bottom line is that you must figure out what works for you the best, and what works for someone else, may or may not work just as well for you. Understand this and work hard to find your niche in the market. Maybe you are really good at internet leads or FSBO’s. In my opinion, these are not the most efficient way to find the highest quality leads in any market. My point is that you have to find your specialty and crush it. The only way to do this is to work very hard trying new things constantly for years until you strike gold. Every agent must find there own pot of gold.
To understand what the most efficient way to produce the best leads consistently, you first have to realize WHO the best leads are. Once you know who the best leads are, you have a target audience. Then you must figure out the best way to produce these leads into your sphere at the highest consistency.
Who are the highest quality leads in any market?
This answer comes from decades of research and experience. Through market crashes, good times and bad. Deep relationships with property owners who own the type of property you decide to be a specialist of is your most profitable and safest bet in real estate. You can take all the real estate training in the world, and try every avenue you want. But, creating and maintaining deep relationships with property owners are the best way to survive short term and dominate long term. This strategy will also help you survive and thrive a real estate market crash or recession. When the market goes down, you can fall back on your relationships and help them through the crash. During a market downturn, property owners will need to sell, want to buy or decide to hold on and ride it out. Either way, you win IF you have the needed relationships in place.
So, the answer is property owners. Well, what makes property owners such a high quality prospect over all others (buyers, internet leads, etc.)? The shorthand answer is that they will eventually sell their property, which gives you a listing if you have worked hard enough to maintain a relationship with them. Listings are the greatest time multiplier in the history of real estate. Listing agents are the highest producing agents in any market. If you want to reach the top, you must be a great listing agent. The only way to do this is to connect with property owners, which is what I am suggesting here.
But, here is where the magic happens…
On top of the possibility of building a great inventory of listings, property owners are also the highest quality buyers in the market. Why? Well, they know what they want and how to get it. They already own property and know all the ends and outs of ownership. Therefore, you don’t have to spend any time educating them. They just need an agent to help them do the deal that they want to do. They have more than likely already dealt with a real estate agent before and understand the process extremely well. This makes any transaction that much smoother and easier for all parties, including the agent.
If you could just work with clients who give you listings, are the best buyers and are the easiest to work with, would you just work 100% with these types of clients? If you figured out a way to produce a consistent stream of unlimited property owners to create and maintain lifelong relationships with, would you drop everything else you ever did to create business? I did. When I realized this and how to get it done, that was it for me. I couldn’t spend time anywhere else.
What is the system to create consistent lifelong relationships with property owners?
Circle prospecting. Targeting a subdivision or complex and start cold calling them. 99% of the time, the property owner will tell you they are not interested in doing a real estate deal at the time of your call. But, this is what you are looking for. If you have the right phone scripts in place, you take the “NO, I am not interested”, and turn that into a deep relationship forever if they don’t already have another agent who they do business with.
I have mastered taking an owner who tells me they are not interested and turning that into a future deal full of repeat business and referrals. I am doing it as we speak. It turns into a situation where you are looking for the “NO” so you can capitalize on the future business.
Ricky Carruth, RE/MAX of Orange Beach and ZTD Real Estate Coach