Are you getting bombarded with all the different ways to succeed in real estate?
The real estate success market is a noisy place in today’s market. A new agent will get hit from every angle to try to latest and greatest idea to get leads and succeed at a high level. They will find as soon as they change their Facebook profile to “Real Estate Agent”, in no time flat they will start seeing sponsored ads from all kinds of companies promising them the moon. Most of the companies are founded by people who either never sold real estate or hasn’t sold much to speak of. That is not to say that some aren’t legit. Some are. But, how do you know who to listen to and what direction to go in?
Well, there are two thoughts:
- Research who you are listening to and make sure they are legit (if you cant find any info on their background, that should tell you what you need to know). Do not fall for something that sounds too good to be true. There is NO WAY around the amount of hard work that will go into becoming a huge success in real estate. I don’t care how great the next app or real estate technique is.
- Test things out for yourself and find out from experience what works and what does not. Become very skilled at figuring out what works and what doesn’t work very quickly. Eliminating what doesn’t work and tripling down on what does.
Any agent who is a part of my real estate coaching program knows that I do not believe that these three avenues of success are the most effective way to build a real estate business. However, that’s me, and what works for me may not work for everyone. That is just the way it is. You may be really great at handling FSBO’s or owners of an Expired Listing. Or, you might operate really well with internet leads and find huge success there. Who am I to say. My job is to tell you what I think is the best based on my experiences and then allow you to make the decision for yourself what is best for you. Do I know exactly how to convert FSBO’s and Expired Listing’s into listings? Yes, I do, and I am very good at it. I can give you a very effective way to handle these types of sellers and convert them into deals. Do I think this is best for the greatest long-term success? No, I do not. Do I believe that dealing with FSBO’s and Expired Listings are the VERY BEST for new agents to get the most experience in the least amount of time? YES. Where else can a brand new agent talk to a live prospect looking to do a deal, possibly meet the prospect and look at their property, maybe list the property and/or show them property? NOWHERE. This is the fast track to the best experience in the business. As a new agent, you should call every FSBO and Expired Listing in your entire area within the first 30-60 days and go meet with all of them. Ask questions and begin the journey of learning your new career. If you do as I say here, you will find out sooner or later a few things that prevent these avenues as the most effective path to success.
- Most are anti-agent
- They are getting hammered by 10 other agents in the area
- They are very needy
This is not true for all. You will run into a rare FSBO/Expired Listing that is great to work with. No problems and glad to do the deal with you. There is opportunity there. That is not what I am saying. It’s just not the most efficient. Try it for a month and tell me otherwise. And, if you are having great success with FSBO’s and/or Expired Listings, please comment below. I want to hear about it.
Internet leads are another huge world. There are so many companies out there that want to sell you leads. The largest is Zillow.com. However, there are 1000’s of others, and there are plenty of companies that want to show you the way to create 1000’s of leads using Facebook. I am not a big fan of any of this either. I do use Facebook in a big way, but not to find leads. I use it to build my brand. Anyway, here’s why I do not advocate Internet Leads. Number one, they are not the highest quality leads. There are much higher quality leads that you could be spending your precious time on ( we will get into that in a minute). But, outside of that reason, they cost too much. I know agents spending anywhere from $500 dollars to $80,000 a month on internet leads. Craziness. Of course, the ones spending on the upper end of the spectrum have a huge team of buyers agents that they are supplying all the leads to. In my opinion, this is a failed system for a few reasons. I like to keep my expenses as low as possible with the highest rate of return. In other words, if I can find much higher quality leads in an unlimited quantity for nearly free, why would I want to pay a boatload for a huge list of lesser quality leads. I would rather be a single agent, spend all of my time on the highest quality leads I can find and when the market crashes, my expenses won’t take me out. This way I am in a strong position in terms of leads and expenses, and I am fully prepared for a market downturn.
Who are the highest quality leads in every market?
What would you consider a high quality prospect to be? One who is prequalified to buy. One who is ready right away to buy or sell. Someone who doesn’t have an agent and is ready to do a deal. All are great answers, but I have a better one for you. How about a prospect that you make the most amount of money in the least amount of time? To me, that is the best way to judge the quality of a prospect, but no one ever thinks about that. It’s called efficiency. So, who are these prospects and how do we find them for a fraction of the cost involved in buying leads? They are property owners who own the type of property you want to sell and you find them by looking them up in the county tax records. It’s called Farming and Circle Prospecting. These people already own property, so you do not have to educate them on property ownership (time saved versus first time buyers). They know what they want and how to get it-they just need an agent to facilitate the deal. And, since they own property, they are a possible buyer OR a seller (two possible kinds of a deal wrapped up into one prospect). Listings are the greatest time multiplier in the history of real estate.
I am a long-time real estate agent and coach. I am an open book as well and very willing to help you. If you have an questions, feel free to send me a message above. Check out my real estate training here>>zerotodiamond.com
Ricky Carruth, RE/MAX of Orange Beach, AL