How do some realtors get more business than others?

11 Replies

Let's say an agent is new to an area, etc. Assuming the agent is good enough with knowledge, what is the difference between an agent that gets lots of business and one that does not? Is it simply a matter of going in to the office and sitting by the phone?

Patrick,

Nope, sitting by the phone doesn't work. I am guessing you are using "knowledge" as in the technical bits of Real Estate, then that's only 10-20% of the battle.

The difference between an agent that gets lots of business and one that doesn't is "Hustle". They are doing a few important things constantly, namely:

1) Client Networking - they are building lists of contacts who are interested in Real Estate, sorting them according to how soon they are going to buy or sell. They are using some version of CRM to follow up. If they have been in the business for a period of time, they are calling former clients for referrals.

2) Dialing for Dollars - They are cold calling (or having someone do it for them). They are calling to get leads, either buyer or seller. Most agents are looking for sellers, since sellers have the product (properties). The theory goes, once you have product, the buyers will come. Those leads go into #1 above and are cultivated. Calling expired listings would fall in this category.

3) Professional Networking - They are building their professional network (if they are new). They are previewing houses, talking to other agents, mortgage brokers, banks, appraisers. They are building those relationships to know where to place their clients to get the job done. Occasionally, I would have a broker who was unable to sell a property refer the clients to me, and take a referral fee. This was a direct result of networking with other agents. I got countless good buyers from my mortgage broker connections, including the mortgage brokers themselves. This is often overlooked when you are an agent.

4) Farming/Advertising/Marketing. They are getting to know folks in their farming area, they are trying to get name recognition and their particular message/properties out to the public. Keep in mind, a farm can be a specific location on the map (usually) or a specific type of property they deal in (say c-stores with gas). On occasion, farming can take on more of a networking bent, especially when working corporate (REO/RELO) or NPN type business.

5) Listing and Selling properties - The culmination of 1 to 4. The "easy" part of the business. Getting some deals to close is an absolute nightmare. Others go like a hot knife through butter. Some listings are a pain, others a joy. The only thing worse than no listing is one that is overpriced and not selling.

There are certainly countless other things an agent does to generate business. Mostly it's getting yourself and your name out there, and keeping the folks that hate your guts away from those that haven't made up their minds yet.

Good Luck!

Jim

@Patrick Philip for me it has all been about relationship building  and consistency. A lot of people dive into being a realtor with very few resources, and this does not allow them to stick it out for the first year. Most people don't close a lot of transactions during the first year or two, which weeds people out of the business. I work in a very competitive market in the Chicago west suburbs near Oak Park, and I was able to close 9 transactions in my first year and 17 transactions in my second. This is fairly uncommon for realtors though! A lot of folks only close a handful of transactions their first year. 

The other thing that many agents struggle with, in my opinion, is finding a niche. Once I decided to focus my marketing efforts on investors, my business exploded. Being an investor friendly realtor won't be the right niche for every realtor, but it was for me. I think that is the key for those realtors who are two or three years in. Find what works and tune out the noise on the rest! If first time buyers is your niche, stick with it. If luxury rentals works, work with people renting luxury rentals. It all depends on the agent and the sphere of influence. 

People need to know who you are and they need to trust who you are.  Focus on those two things and you can build up a great business.

I have never done advertising, but I do a ton of networking, all my business comes from referrals.  

Originally posted by @Brie Schmidt :

People need to know who you are and they need to trust who you are.  Focus on those two things and you can build up a great business.

I have never done advertising, but I do a ton of networking, all my business comes from referrals.  

also innate god given talent  in a combination of personality/ not being shy/ smart/ articulate driven.. Oh wait a minute I am describing Brie !!! 

@Brie Schmidt   Also  watch Glenn Gary Glenn Ross...    Coffee is for Closers   .... most people simple can't close.

they can do 95% of what is laid out above but they simply can't close.. they cannot get them selves to spit out and ask for the order.

you need definite closing talent and you need to be able to control the client without them relizing your doing it.

if your technique is to simply ask them what do you think would you like to do this.. your going to get   ( I need to think about it and or no)  that's not closing and you will never be a top producer.

you need to tell them what they will buy and when they will buy it .. but in a manner they don't know you did it.. that's what separates the great sales folks from the dud's and believe me I have been around both for 40 years.

I love listening to my wife on the phone. she gets all excited calls her buyer  ( she does not do investment only homewoners and is damn good at it)  first thing out of her mouth.

HI I just found YOUR home.. I just found the home your going to buy I am so excited..   this gets the client positive and thinking hey if Lori likes I bet we will

Instead of HI  is there anything you like  ????  you cant ask those kind of questions you will get killed

“Every result that you desire […] is preceded by a process that is required to produce the result. When you define your process and commit to it for an extended period of time, the results take care of themselves.”

Hal Elrod

Sitting by the phone aint gonna cut it.  @James C. covered the processes well.

Originally posted by @Jay Hinrichs :
Originally posted by @Brie Schmidt:

People need to know who you are and they need to trust who you are.  Focus on those two things and you can build up a great business.

I have never done advertising, but I do a ton of networking, all my business comes from referrals.  

also innate god given talent  in a combination of personality/ not being shy/ smart/ articulate driven.. Oh wait a minute I am describing Brie !!! 

LOL.  Thanks Jay!  I spent 9 years in corporate sales, and have had hundreds of hours of professional training.   But what made me successful then is still the same thing that makes me successful now.  Know your client, solve their problem, put their needs first.  It is that simple.  

Post 3,000 messages on Bigger Pockets with good content and you will have more business than you can handle.

advertise, network and (most important) word of mouth.

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