New Year's Resolution for more listings! Guidance?

Question

I'd like to get 3 new listings in the next 60 days.  If you put yourself in the same position, what would you do?  I've expressed to my sphere of influence that this is my goal and have them keeping an ear out for me.

I really don't want to cold call as I am someone who hates getting cold calls.  I could do mailers but have found in the past that in the Naples, FL market, so many people have these places as second homes and a high portion of the mailers are returned.

So the ultimate question is, what would you do?

David Hunter · Answer

Ah... don't be so quick to give up on the mailings.

I learned a few things along the way... Sellers either re-listed right away with their current agent, or already had an agent lined up before their listing expired, so as soon as it expired they listed with another agent.

I'd say about 2/3 didn't re-list right away.  So, if they do get the money-hungry agent calling them the day their listing expired, most likely they aren't re-listing right away, which gives you time to get your mailings out.  Mail out the day their listing expires and they'll get it the next day (as long as they're in town).

You can also go back to find all the listings that expired weeks or months ago and see if they ever relisted or sold.  If not, cha-ching!!!

Joel Owens · Answer

I learned something a long time ago.

You only get paid when something closes.

It does no good to have a bunch of overpriced or mediocre listings that are not selling. What happens in that case is that for every good listing that sells and closes and brings you money is offset by the others where money and time is spent goes down the drain.

Same thing for commercial. You do not want to overpromise a seller and then it doesn't sell. You develop a rep for not performing when the real reason is the property is way to overpriced.

It's better to tell 40 sellers you can't take the listing and take 10 listings where they listen and you sell and close them.

Just like investors buying right a broker/agent has to list right for a successful outcome. You might can start a little above market but have the listing agreement already signed where in one week there are automatic price reductions built in.

Joel Owens · Answer

Yeah the problem with TEAMS is that you have to do volume and have a lot of expenses. I have friends that did tons with REO and now that has dried up and they had to let a lot of people go.

I equate it to a high volume restaurant where they are doing 2 million in sales a year but profiting 200,000. Any movement in food cost, labor expenses, couponing, or rent increases can adversely affect the profit.

I like structures where profit can be HIGH even if VOLUME is low. This way when the market slows you are still making a good amount of cash and not going to neutral or negative with your business because you aren't doing the volume anymore.

I love a low overhead and high profit business. That is the model I use. Years and years ago the thought was be big and rent this office etc. and show how big and successful you are etc.  It's a big mistake many brokers/agents make and they take on a lot of overhead. The only time I like something like that is if you own the building and have many other tenants paying it off for you.

Chris Farrugia · Answer

Great points, Joel.  Trust me--I was thinking that.  I thought it was implied.  As an anecdote, I was once recruited for this team that boasted they had over 200 listings on this island down here in Southwest Florida.  The whole team only did about 3 or 4 closings a month on that many listings because their leader overpriced EVERYTHING.  I completely understand your point and it's a huge concern.  Thanks!

Joel Owens · Answer

"I'd like to get 3 new listings in the next 60 days."

Change this to SELLABLE listings. Research your MLS. If buyers are clamoring for 4 bed, 2 bath for 185,000 with a 1/2 acres then go after those listings to sell.

Does taking 3 - 400,000 listings for larger homes when they are not moving in your market help you?? NO

Does taking 3 listings of any kind that are overpriced help you? NO

You need to redefine and clarify target goals.

Chris Farrugia · Answer

David, love the ideas.  Thanks for chiming in.  Naples is a funny market.  I had my own mother's home listed one just to test the waters at a very high price.  Long story short, the morning it expired, I think she had something like a dozen calls by 9am despite being on the Do Not Call list.  I'm afraid that by the time my mailers arrived, it would be too late.  I'd almost have to time them so they arrived on the day the listing expired which would be a bit risky.

David Hunter · Answer

Target expired listings!!!

If you don't want to cold call, then send them a 3 step mail campaign using some 3D mail (I've sent mini trash cans, messages in a bottle, bank bags).

Also, offer a home seller's guide.  This will be your lead generation magnet.

New Year's Resolution for more listings! Guidance?

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