New real estate agents often work mainly with buyers, doing open houses, getting buyer referrals from their broker, or other agents in the office who do not want to work with buyers, and doing buyer relocation referrals.
By working with buyers, you will get exposed to inventory, buyer needs, and other aspects of the real estate business. Most importantly, you will build up your client database of people who may refer business to you, or need to sell their home in a few years. As a buyer in your early years you often drive the start of your seller business down the road.
The more buyers you work with, the more at-bats you will experience in terms of converting a buyer on the phone to a meeting, first meeting, buyer consultation, showing properties, writing contracts, and getting a deal to closing.
As you progress, you learn more about the business and how everyone who is super successful is a strong listing agent and has a solid seller business. You will work to develop your seller business, and get your first few listings.
As you grow to a pace and volume which keeps you very busy or too busy, such as 30 to 60 deals per year, your time becomes more limited. If you fail to get enough assistant help, you are stuck doing buyers, a few sellers, and lots of assistant work. If you get enough assistant work, you find yourself jumping on the seller leads faster because a seller deal may take you only ten hours and a buyer deal takes you 20 hours. Seller leads also move faster to an appointment and buyer leads build in your pipeline for future business.
You start to let your buyer business go downhill:
· Price - If a Buyer is below $XXX, you are less interested in making the calls needed to win that buyer business. Each year, that $XXX amount may amount to $100,000, $150,000, $200,000 or more.
· Future Business - If a buyer is not ready right now, they are a Buyer – B or Buyer – C who may be three to 12 months out. You may let them drop on the floor, fall through the cracks, or throw the lead in trash which means that someone else is going to get a $6,000 commission check and it is not going to be you or your business. The failure to manage future buyer business is an initial step of going down the wrong road.
· Tired of Running - It is tiring to run around town and show homes to buyers. That is a key reason why many agents fade away from buyer business without hiring someone else to show properties.
· Referral Agents - You may think you are solving your problem by referring out some or all buyers to referral agents. This is usually not viable because the referral agents are not going to work hard enough to win the business. You do not have systems to hold them accountable, and track the leads. You just gave away the entire lifetime value of the buyer which is the MAJORITY of the net profit your business should be getting from that buyer lead.
Sound familiar? Call me, email me, or reply to this blog. We have Systems for Buyer business and we can help.
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