Friday, March 27, 2015

Is Your Business Model Keeping Pace With Consumer Demands?

Is Your Business Model Keeping Pace With Consumer Demands?

What do real estate buyers and/or sellers want from their REALTOR in today’s market?

If you look at recent polls… consumers expect effective communicators and skilled negotiators who possess an overall high level of market knowledge.

 In 2013 it was estimated that over 70% of agents were part-time in the industry, (doing less than 6 transactions per year)…Which equates to 700,000 real estate agents. With so many part-time associates, where I see the real weakness of our industry is… An agents inability to deliver a consistent consumer experience.

What are consumers “buying” when they hire you as their REALTOR?

Today’s Consumers want an “experience”… it is your job to produce this experience through a high level of service…becoming the “project manager” who coordinates the multiple facets of the transaction… Showings, Feedback, Pricing, Contracts, Addendums, Negotiations, Inspections, Repairs, Appraisers, Mortgage, Insurance, Attorneys, Title, and on and on…. Are you tired yet?

Let’s begin by looking at two different styles of agents which on the surface may appear to be very similar, but when you look beneath the cover they two distinctly different business models for a real estate agent.

Facilitator: By definition this is a person who helps a group of individuals to understand a common objective while remaining on neutral ground…a “helper” or “enabler”.

·        They have tools to assist buyers and sellers in the navigation of a real estate transaction

·        They usually lack transactional experience and generally have less experience overall

·        They bring little in the way of value to the transaction

·        Do little more than guide clients through a transaction without give valued advice

·        Are typically unskilled at communicating and negotiating

·        Have a hard time justifying their commission to a client

Counselor:  A highly trained and skilled individual who has the ability to give expert guidance and advice on a one on one basis…an “advisor” or “mentor”

·        Master of the art of “relationship building”

·        Maintains an intense focus on activities which produce leads resulting in income

·        A Time Management Guru

·        Builds and maintains systems to manage a data base of potential leads and referrals sources

·        Adopt technology which enables them to be highly effective and efficient

·        Always abreast of current changes in your market and beyond

·        Master of the buying , selling, and closing process

·        Skilled at writing effective contracts and addendums for any market

·         A Master Negotiator

·        Has a “unique experience” designed for each client they work with

·        Continually searches for new ways to add value to each transaction

As you can see there is a wide gap between how these two very different styles of agents serve their clients. And…Since a counselor brings so much more value to the transaction… they are better equipped to justify… and receive higher commissions….and multiple referrals during and after the sale!

Let’s review some statistics to help drive home the point:

·        In 2014 the average productivity of a REALTOR was 8.5 transactions per year 

·        44% of agents produced zero transactions or income in 2014

·        57% closed less than 3 transactions

·        81% had 10 or less closed transactions (less than one per month)

·        Only 13% of REALTORS had 15 or more closed transactions for all of 2014

·        It is estimated that nearly 80% of all closed transactions in the U.S. for the year 2014 was performed by 20% of the members of The National Association of REALTORS

·        When asked …74% of consumers who bought or sold in 2014, found their REALTOR through a trusted source (a referral)

If those figures don’t peak your interest consider this…

·        Of the 57% of agents doing less than 3 transactions… 90% did not maintain an active database… and out of the 10% who said they did… only 3% utilized a Client Relationship Management (CRM) system to manage their database.

·        Of the agents doing 15 or more transaction per year… 97% used a CRM system to stay in contact with their database and 78% stated they used a CRM on a daily basis.

Ask yourself…Which percentile group do I want to be in? The 20% doing 80% of the business or the 80% doing 20% of the business? If you want to accelerate your career to the next level follow the 9 steps below to transform your business model to one your clients’ desire.

So where do you start the transformation?

1.     Purchase an electronic CRM and commit to using it daily

2.     Maintain a Vibrant Database of referral sources for your business

3.     Learn the fundamentals of time management

4.     Stay abreast of current market conditions

5.     Be able to deliver a compelling Listing Presentation

6.     Be able to conduct a persuasive Buyer Consultation

7.     Learn to write effective contract for any market

8.     Strengthen your negotiation skills for both clients and other agents

9.     Use a mentor, coach, or accountability partner to stay on track

I hope this in some way helps you in your real estate business…for more information on ICU-Coaching call 919-417-9908

Eddie Brown ©2015