Feedback is one of the most important things we can collect on behalf of our sellers in order to adjust prices, adjust terms, adjust condition, and to get that property really tuned up for the marketplace.
So one thing is we gotta make sure we're going out and trying to collect that feedback. And when we do that, I'm gonna ask three questions:
1. Would you think of the price?
2. What did you think of the condition?
3. What did you think of the neighborhood?
Those are my three questions. I'm sending this by text to every showing agent. But I'm gonna also add one more question. My fourth question, which is maybe the most important is:
4. Can you tell me, did they make an offer on another house or did they actually purchase another property and get in contract?
When I do that and I find out that I can actually deliver that by act to my seller and say, "Well, Mr. and Mrs. Seller, here's the feedback. And they went ahead and made an offer...
Here's a number that we should be talking about with our spheres of influence, our friends, our social media audiences:
And this is 15.9.
Now what's 15.9 represent?
15.9% is the amount that the average renter had as an increase in the rent last year.
And it's likely that this is gonna have again this year or some similar high number, and probably the year after that.
It's supply and demand. There is high demand and low supply. So it's the same thing that's happening to us in the real estate industry, right? We have low supply, high demand causes prices to rise.
So if renters aren't careful what can happen is if rents continue to rise, they could have rent that's increasing by 10%, a year or more over the next 2, 3, 4, 5 years. They could easily be paying 30, 40, 50% more for rent in a few years.
And they think their rent's high now. Wait another couple years, it's gonna get higher.
So what can they do? What's the...
A few of you are suffering from what I call referral resistance. What's referral resistance mean? It means you've got a pretty good size database of people, a sphere of influence, and it's not performing well.
In other words, you're not getting a lot of referrals. Your sphere of influence isn't sending you buyers and sellers.
It's because the people in your sphere don't quite trust you enough. They don't quite see you as the expert that you know you are. And because of that, there's resistance to sending you referrals.
So how can you overcome referral resistance?
I'm gonna give you three quick techniques to help you with that:
1. You have to be the experts in their minds, not yours.
How do you do it? You need to be giving them information regularly about the real estate market. Now, this is super easy to do because you are given information all the time. One of the places you are given information from is your local MLS system....
There's a great book by a guy named Harvey Mackay. He wrote the book Dig Your Well Before You're Thirsty.
And in the book, he talks about this $25,000 question, and I'm gonna pose this question to you.
So the $25,000 question kind of goes like this:
Imagine you own a muffler shop or some kind of business. And it's payroll week and you don't have the money to pay your employees. And you know, if you don't pay 'em, they're all gonna walk because everybody's trying to hire right now. So the question mark is it's 2:00 AM you wake up in the morning and you're like, I've gotta come up with $25,000 by tomorrow morning. Otherwise I'm probably gonna lose my business. Who do you call? In your friends list, your personal friends list, right now, is there someone you call and get $25,000 from by tomorrow morning?
If the answer's no, the reason you probably don't have anybody that qualifies in that category is because you haven't helped enough...
If you were to go back in time for the last 24 months and look at every closing you had, would all those people you closed a transaction with have given you a recommendation or endorsement online?
In other words...
If you closed 20 transactions, do you have 20 endorsements on realtor.com, Zillow, Facebook, or Google Business? Or are you missing a lot?
If you're missing a lot, you're missing opportunities. Here's why:
If you look at a couple of agents in your market, you might find this, I see this all the time. You might have an experienced agent that's crushing it — doing 30-40 transactions a year. Then you have this brand new agent who just started their business a couple of years ago and only closed 10-12 transactions each year.
But... online, they're getting a recommendation or endorsement from every single client. And sometimes clients they didn't even close a transaction with, but just had a good experience with them. So...
Here's a super easy technique this time of year, which is super effective:
Go back to 2021. Look at every transaction you closed. Pull the HUD statement from your closing and then send that onto your client.
Why would you do that?
Because now it's tax season. People are gonna start filing taxes. They're gonna realized they lost those documents. And you can provide a real service to them by sending them those documents,. Just email them over and put a little note on that that says,
"Hey, I know tax season's coming. Thought I'd make it easy for you to file your taxes. There's some things here that may be a deduction for you or may save you some dollars in your taxes. Here you go.
By the way, hope you're enjoying the home. If I can help you or your friends with anything in the future with real estate, your referral is my highest compliment."
Something like that. Simple, easy, and guess what? Your clients will love it. They'll thank you....
I'm gonna give you some numbers that are just reality in our business that you should know. And these numbers are going to drive your success throughout your career — whether you like it or not.
Are you ready for these numbers? Here they are:
They may be slightly different for every person, but in general, across the country, here's what the numbers look like in our industry:
* For every 30 conversations you have, you'll average one closed transaction.
And I want you to remember this:
Almost every single transaction you will ever have in your career will be the result of a conversation you've had in the last two weeks. You want more closings? You're gonna have to have more conversations.
Here's another one:
* For every 10 sphere members you have in your database today, you should average one closing — assuming that you've made 20 to 50 contacts with them in the past year.
20 to 50 contacts will get you a 10 to 1 closing...
I want to talk to you about what I call the algorithm of sales. And what that means is that there's some base numbers in our industry, that if you embrace them, it can unlock unlimited opportunity.
The problem is most agents don't want to embrace them. They just want somebody to hand them a buyer or seller. Or for a buyer or seller to literally lay down in front of them so they can just start working with them.
Guys, that doesn't work.
You have to go out there and work the numbers if you want to do well.
I'm going to give you six numbers that are going to be just what I would call standard in the industry that you have to embrace for you to have success.
1. For every 30 conversations you have, you'll average one closing.
So if you want to make 300, 400, 500, $600,000 a year, you just have to figure out how many closings you need. And then multiply that number by 30, which will tell you how many conversations you need to have in...
I have a question for you:
Who is your #1 competitor in your marketplace?
When I ask that to a live audience, I'll hear all kinds of the typical brand answers. You'll hear the brands in their marketplace: Remax, Coldwell Banker, eXp, John L. Scott, Sotheby's, etc.
And I always tell them, you're all wrong. Your #1 competitor in your market is Zillow. Zillow is coming to eat your breakfast, lunch, and dinner. And in a large degree, they already are. Now, yes, Zillow has stumbled with their flipping operation. But does that mean they're going away? No. If anything, we should be more terrified now than ever, because they're going to turn and focus their entire attention back to where they actually started out, which is selling leads to REALTORS. They are not going away.
What does this mean? When lose something to Remax or eXp, you need to ask yourself:
Did I really lose that listing to those companies? Or did somebody go on Zillow, fill...
What is Q2?
Well, Q2 is your most valuable asset. And you might not even know it.
Your most valuable asset is your database, your sphere of influence, we know that.
But what's Q2 mean?
Q2 represents the quality and the quantity of your database. So let's look at those two issues and how they can impact your bottom line coming into the new year.
Let's start with the quantity. What does that mean? Well, if we know that for every 10 people in our database, we'll average one closed sale, knowing that quantity makes a big difference. In fact, when I talk to agents on a regular basis, and I ask, how many transactions did you close last year? And they say 10, 12, I'll say, how big is your database? Let me guess. It's probably 80 to 120 am I right? Most people will say, yeah, you're right on the money.
Because your database is a reflection of your performance. Smaller database, smaller performance. Larger database, larger...
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