“Do something today that your future self will thank you for.” ~ Unknown
I never have met a brand new realtor who did not want to build a successful career. Their hopes and dreams are real so why is the fallout in this business so horrific?
Each went through the pre-licensing course of their state or province. In BC, they endure a 3-hour final exam and enter into the post-licensing modules upon achieving the required passing grade. They are excited to finally get licensed and suddenly realize that while the course they took to get here may have taught them much, it didn't teach them how to be successful. Many then flounder as they encounter an overwhelming learning curve that never seems to end.
In this post, we will look at 5 key areas of knowledge you must master to achieve the success you want.
Simon Sinek wrote the best-selling book "Start With Why" In it, he says “People don’t buy what you do; they buy why you do it.” Among other things, knowing your why accomplishes 2 things;
It attracts the right type of client to your business
It provides you with a reason to push through the hard stuff
Let's look for a moment at this second point. Having decided to start a real estate career (or any decision to start something) is the beginning of a change in your life. Often the beginning phase is exciting because everything is new and you are learning but then you come to what is sometimes referred to as the messy middle. In the messy middle, you will feel frustrated because the results might not be what you thought you would get or you wonder if you made a mistake by starting in the first place and maybe this isn't so exciting. It is easy to get down, emotionally, psychologically, and physically. If you stay here, you will likely burn out and become one of the many that say "I tried Real Estate but it wasn't right for me" Knowing your Why will help you to push through the crap and persevere to success.
Most of us start our real estate career willing to take anyone as a client. If they breathe and ask a real estate question there is a chance they might buy a house! Been there and done that too but the reality is the more focused you are on a particular niche, the more success you will have. Sooner or later we need to conclude we can't be everything to everybody! It is another way of saying "Know Your Who". A friend of mine, Jon Morrison, wrote a book called "Now Start With Who". It is a guide to connecting with your ideal customer and you can watch his Ted Talk here. In the book, Jon says "Every business has a Who. Your Whos are the people you love to help, that you're good at helping, and they are the people who are happy to pay you well for it. Others have called them your "ideal client," "customer avatar," or a whole host of other names that consultants have come up with over the years." What is important is to know who they are and how to reach them.
If the past several years have shown us anything, it has shown the real estate market can be volatile and unpredictable. Knowing your specific marketplace is critical in providing your clients with information and conditions relevant to their needs and making an informed decision. Your market knowledge will also elevate you as an expert in your field. Knowledge of property values, as well as market trends, are key factors to knowing the market. This can be acquired by knowing and understanding key statistical information about the market and doing a daily review of new listings as well as sales. My favorite statistics to note are Sales to Active Listing Ratio, Days on Market, and a review of The Housing Price Index. The HPI will give you an indication of the direction of the market. Are prices rising, falling, or somewhat flat? Days on Market is a good indicator of how long the selling process will take so your clients can better plan their move and the Sales to Active Listing Ratio will indicate whether you are in a Buyer or Seller's market.
When you know your numbers, you are better able to predict your levels of income. For example, did you know that you need to have 5 real estate-type conversations before you get one referral? You will need to have 5 referrals for one appointment and likely 4 appointments to make one sale. so each sale is equal to contacting and having a real estate-type conversation with 100 people. Of course, everyone's numbers vary somewhat and as you improve your skills, these numbers will improve as well. The key is to have systems to track the numbers and your success rates. Knowing them helps you to develop a sustainable and predictable business. If your goal is to do a minimum of 2 transactions per month, then using the above numbers tells us you will have to have contacted 200 persons. If there are 20 working days in a month, then 10 people per day. When you apply your average commission for sale end to the formula, you can then predict what your income should be over time.
The other numbers you need to know are the financial ones. First, what are your monthly personal household financial requirements? Rent, Heat, Light, groceries, etc. You do like to eat, don't you? Then what are the monthly business expenses you will incur? These can vary greatly depending on your situation but so important to know.
Each of us has our own unique style. When you are buying and when you are selling. Do you know your style? Are you introverted or extroverted? Are you a get-it-done type of person or one who works better on a team? Knowing and understanding your personal style will help you in many ways but two that come to mind are;
Help you identify the blind spots that keep you from closing some sales.
Help you identify your client's personal style so you can make adjustments and become a better communicator with them.
So much of the home buying and selling process is about our communication and when we are a student of human behavior styles we improve our communication skills and recognize the opportunities we are presented with.
Building a Rock Solid Real Estate Career is a process. It doesn't happen overnight and likely won't happen unless we are intentional about building it. I hope the above has been a helpful start to your process and invite you to check back often or better yet, subscribe and follow us to get more valuable information on how to grow your Real Estate Career.
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