When you are into a business or a profession, you strive to be the best you can be. The ace in every profession is the person who knows where to attack, how to attack and which tools to use for attacking. The experts know how to pursue the problem and not run hither and thither recklessly. The same is the case with real estate brokers.
Most of the beginner level real estate brokers do not know where to start. It is important that they are fully equipped with in-depth knowledge of their field. Before a broker starts cold-calling clients and bringing in business, it is better that they know where they stand. One needs to constantly self assess one’s own capabilities before one dives in. Otherwise, you can easily mess up a deal that is in process. You as a broker needs to measure yourself and your market competition. If you are related to a brand, then you need to be doubly careful about your affiliation with the broker or the brand.
When speaking to rookie estate agents we always tell them to talk to industry veterans who have loads of experience. Or discuss your matter with some successful agents in your periphery. Closely observe their actions – what strategies they build and how they execute it. Notice how and where they invest their energies. To excel at your job you need to stop playing the game like a regular desk job worker. Work out your deal in a manner a pro handles it.
But how do you get to the stage where you crack multi-million dollar deals? As a top real estate consultancy, allow us to guide you with some easily comprehensible points:
Evaluate your strengths and weaknesses. Don’t lie to yourself. Do not overestimate or underestimate your capabilities. Also, you should be aware of your personality. Do you easily mix up with people, or you rarely gel with people. Do you feel socially awkward when you are talking to strangers? Here we are not pointing out some drawback but we are asking you to develop your way of doing business according to your social style. If you reflect and come up with the correct answers, then this self-evaluation will go a long way.
There are many good traits of successful real estate brokers. They are consummate talkers. They also think and ponder. Real estate brokers should know how to be problem solvers. This is how we have become good at what we do! Over the years we have become good at developing a trustworthy relationship with our clients. Whether you love doing business aggressively or peacefully, it is totally up to you. But you should be able to tailor your strategies in accordance with your strengths.
Measure your needs
This part is a bit trickier than others. It totally depends on your financial requirements and contentment. It also depends upon your foresightedness. It also depends on how aggressively you are able to pursue your business. Just ask yourself one question,”How many homes must you sell in a year to make a living?” This answer depends on several factors –
1. Your definition of “making a living”
Assess your income goals. and find out how much capital do you need to meet your basic monthly financial obligations? Make a list of your personal needs, business requirements activities, retirement savings after-tax income to meet your financial goals and you will know what your income must be.
2. The prices of homes in your area
You may need to sell more homes to reach your income goal if your commodity is lowly priced. On the other hand, you will make fewer sales if you are in the luxury property segment. This is an important consideration in building a marketing strategy. While average-priced homes have more potential buyers, expensive homes in Mumbai and elsewhere are more challenging to sell.
3. Your commission rate
It is difficult to illustrate this point without the help of an example. Let’s assume that you charge a 2 % commission when you sell a home. If you focus on average-priced homes which are in the bracket of 5 – 10 Crores, then your average commission cheque will be about ten to twenty lakhs give or take. As regards the commission, you cannot exceed the market rate. In Mumbai, most buyers and sellers agree on 1 % commission. If you are adamant on demanding a high percentage in commission you may lose out on business. Because your clientele will prefer brokers who do not charge as exorbitantly as you. So you need to work out what commission you can charge depending on the country and area you do business in.
4. Your costs of doing business
Most agents working with us earn atleast ₹ 10 lakhs in gross commissions on an annual basis. Calculate the costs of doing business annually. Usually, it is in the range of 30 – 40% on a yearly basis. But there are other expenses involved as well. Business investments include advertising costs, computer expenses, phone, and internet bills. Apart from that, there are license renewal fees with online portals, fuel, and bike or car repair expenses. Then there are taxes involved. These will decide how much you need to work and how much you need to charge.
Measure your market
We have gotten where we are today by anticipating and gaining a foothold on our competition by getting to the prospective clients first. There are always some fishes in the pond. Once you have made certain that there are some leads that can be converted into prospects, you can capitalize on the market. Just take time to assess the variables in your business, and you would be able to chalk out a financial blueprint for yourself.
Measure your broker
Choose your broker based on how he or she can help you. Does the broker know how to jumpstart business and bring in clients (both during bull-ish or bear-ish seasons)? Is the broker part of national associations? A good broker will give you a considerable head start. The broker should have an exceptional reputation within the real estate community. He / she should have both integrity and leadership skills. He / she should also have the financial firepower to stay afloat during slow seasons of recession. Not to forget, the broker should be willing to invest in new-age technology to increase business.
Measure your competition
You should always be aware of who your competitors are. That way you will understand which listings need to be prioritized and which deals should be converted. For knowing who your competitors are, you need to find out who the top agents in your market are. Which dealers or institutions do they work for and what do they specialize in? This way you will be able to make a successful real estate strategy. One needs to remember that they may be your rivals, but they are not your enemies. Learn their business tactics if they benefit you. They might not tell you all their secrets but they will certainly help you in bettering your strategies and techniques.
Now you know how to get business, but you still have something more to learn. That is conviction. But it is more of an intangible trait. How can you acquire it? You need to make yourself seven promises –
Commit to listings, not selling
We always believe that we need more sellers than buyers. Working with 20 sellers is more efficient, and profitable for your business. If you have more than 20 buyers, you will have a lot of stress and unclosed deals in your hand. Many of the sellers need another place to live in. So why not tend to their demands? Spend your time getting and selling listings.
Set real goals
Real goals are specific and more sensible to set. Earning ₹ 10,00,000 is a specific target, it still does not qualify as a real goal. Real goals are achievements that you really want to acquire. Also, you need to create a deadline for achieving your goals. These deadlines will help you identify the efforts you need to put for fulfilling a goal. One also needs to be careful of not falling into the trap of setting materialistic goals only. Goals should also be beneficial for your health, both physically and mentally.
Be big somewhere
Most of the time real estate agents try to be everything for their clients. That takes a toll on their businesses and on their health as well. Being big somewhere means niche marketing. When you focus on your niche, then you make yourself adept in a skill. Repeat it over and over and over again, chances are that you will be successful in that.
You need to shamelessly pursue a deal. Come hell or high water, you should be able to provide what the client needs (if his / her needs are logical!). Prospecting relentlessly is what helps to scale up a business.
Protect your time
Time is money, that is the adage that our forefathers believed in. We should too. It’s our job to value our time because nobody else will. Be true to yourself and you will notice that your chances of success increase dramatically. Spend doing those jobs that make you money, and do not indulge in petty activities.
Schedule your activities.
Schedule your activities is one of the most important things that professionals in the real estate business need to do. Schedule the most important activities at the beginning of the week and the least important ones towards the end. Set them in chronological order. Here is an example – Prospecting, listing appointments, showing homes, posting in social media, working floor time, updating your database, and so on. This way you will be able to segregate your activities effectively.
Keep showing up, no matter what
At the end of the day we are never tired of saying this to our associates and agents who work for us – You will be unable to sell every listing. Deals will fail, no matter what! Still, you should believe in yourself and your abilities. Keep showing up, every day and we promise that eventually, you will succeed 🙂