Johan
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08:04:08 pm on November 8, 2007 | # |
You may ask me, “Why do I even have to decide on a listing area? My boss gave me one and I have 2000 homes in my area and that’s more than enough.”
That’s the problem. The intention is to become the Lance Armstrong of the listing area. You want to be seen as the trusted real estate expert in the area which is not possible with 2000 homes to concentrate on. But with 300 homes you will have the opportunity to shake hands on a regular basis with all the home owners. And they will get to know, to like and to trust you.
Many real estate agencies allow their agents to do what comes across the table. And the agents tend to fail because they will get very little return from a 20 000 impersonal pamphlet drop.
Let’s stop that and work on a smaller cross section of your listing area. Focus on 300 homes and cultivate relationships with these people. Give them what they want. Most of them want community information and news. And with the right tools and technology you can provide it.
How do you decide on your listing area even if you are responsible for 2000 homes?
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Select 300 homes in your own suburb where you live. (If you do not live in your listing area you can then select 300 homes in the listing area.)
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You maybe an expert in sectional title properties. List 300 of these as your listing area.
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You may want to work on either entry level homes, flats or expensive homes.
All you need to do is cut your area down to a size you can manage and that will bring you enough income.
In order to decide if there’s enough income you need to do the following:
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Establish the average selling prices of homes in your listing area.
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Establish how many homes are selling in the area.
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Calculate the percentage turn-over per year.
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Calculate your potential income if you sell all the homes listed in the area or a certain percentage of the homes.
Example: 300 homes x average price x percentage turnover x percentage commission = expected commissions. (Or 300 x 1.5 million x 15% x 6% = Annual commission 4.05 million)
Considering the calculation; you can increase your income by selecting more homes (not recommended), by working in an area where the average prices are higher, where more homes are bought and sold (turnover) or where you get more commission.
The objective is to dominate the listing area by cultivating relationships with each and every home owner in the area.
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You can now focus all your marketing and listing efforts here.
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You can shake their hands once or twice a year.
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You can send them community news 24 times a year.
And you know by now that I promote technology to help you. I suggest that you stop listening to the music but rather face the music. Meaning that you need to take the next step, even if you are scared, get past the learning curve. Face the new internet technology and use it the way you use electricity. It will make your task easier and you will stop being a pusher of your services. Rather, you be out there pulling people towards you like a magnet.
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