I recently received an email that went like this:
“Dear Kartik:
“I’m addicted to social media and I can’t get over how successful all these real estate agents on Instagram seem to be. Read more...
I recently received an email that went like this:
“Dear Kartik:
“I’m addicted to social media and I can’t get over how successful all these real estate agents on Instagram seem to be. I see every other realtor on ‘the Gram’ closing what seems like an endless amount of real estate transactions and I can’t seem to keep up. I’ve done eight deals so far this year and I compare myself to other realtors online and it seems like I’m doing so much worse than they are.
How do I break my addiction because I keep comparing myself to other people online?”
This is a very good question, actually. I think that a lot of people these days are addicted to their cell phones and specifically to social media. I mean, the addiction to our phones and technology has gotten so bad that the latest version of the iOS operating system actually has a screen timer showing the user how much time was spent on their phone.
Anyway, there was actually more to this email. The writer had actually listed a few agents that seemed to be doing really well on Instagram and I used a system called Broker Metrics to look up how many deals these agents had done. Turns out that he author of the email had actually done MORE deals than the agents that he was comparing himself to!
Now, I know that there’s different ways that you can count how many deals you did. I understand that sometimes transactions can be co-listed or maybe you’re on a team and the offer was written in the name of your “team leader” and you didn’t get credit through the MLS. I understand all that. But, it’s important to remember that the things people put on Instagram or Facebook or Twitter are the most pleasant parts of their lives. Society picks and chooses what they want to share with the rest of the world. All these posts to is try and control your perception of their reality.
Remember to keep the following in perspective:
1. Much of society is addicted to technology. Particularly their cell phone.
2. A subset of that society is admittedly addicted to social media.
3. Not everything that you see on social media is real.
So, it’s important that we stop comparing ourselves to people online because more than half of it is fake. So, go back to work. Focus on what makes you successful. Closing real estate transactions, helping clients, stacking cash and building a career. Forget what everybody else is doing online. You could spend your whole life on the sideline watching what other people are doing, or you can get in the game, play and win.
Love, Kartik
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How to Use Social Media to Get Real Estate Business
Social media is one of the most important ways to get business today. Most people are on their phones interacting in the digital world at least as Read more...
How to Use Social Media to Get Real Estate Business
Social media is one of the most important ways to get business today. Most people are on their phones interacting in the digital world at least as much as they are with the physical world. Nurturing relationships online through outlets like Facebook and Instagram can help build trust and brand recognition between you and a prospective client.
To better understand how people in the real estate business use social media I recently met with a good friend who works at a large mortgage company in Orange County. When I met with her for a recent interview she was working with an escrow company and helped build their business using the power of Instagram and Facebook. She was kind enough to share some insider tips on how she uses social media, specifically Instagram, to gain followers and new prospects.In this interview, I was able to find out three key things:
• What she posts
• When she posts
• How she decides what to post
Danielle Benevides has done a great job building this escrow company using Instagram. Here is the gist of our interview, which you can also watch in full here on my YouTube channel.The main takeaways from our interview are these strategies:
1. Merge your personal and professional accounts into one.
2. "Like" other people's posts and engage with them.
3. Reach out to your followers by sending them messages.
4. Post at times when people will be more engaged with social media, such as before work, during lunch, after work and before bed.
5. Post updates that present you as a productive and successful professional, such as you going to an open house, you meeting with clients, you selling a house and so on. Be personable and relatable through these posts.
6. Find an Instagram account in your field that you admire. What makes it so successful? Ask yourself are there models that you can copy before you start doing your own thing? It’s important to not blatantly rip off others and be authentic as you consider this strategy.
7. When you build a following, you can do more and gain an even bigger following. It’s easier to go from 15,000 followers to 20,000 followers than to go from 0 followers to 5,000. Scale is important.
How Danielle Benavides Uses Instagram to Gain Business
Danielle: "Basically, I'm very intentional with what I post on Instagram. I'm very intentional about who I add. It's all a very methodical process. Something I encourage agents to do is to merge their personal profile with their business one. So far, that's really worked to my benefit. By merging accounts, I'm exposing what I'm doing in my daily routine, such as being out with new clients, visiting an open house or doing anything related to business. I'm posting these things and people recognize it. I'm also liking other people's photos, which establishes an online relationship."
Kartik: "Some people think that the business page and personal page should be separate. You don't think so. Why?"
Danielle: "I think it should be all in one. It's time-consuming to go back and forth and log into different accounts ... I hear from agents that they don't even log into either their personal or business profile. When you're trying to juggle two accounts, you won't have the best results."
Kartik: "What about people who didn't grow up with technology or those who may think that social media isn't relevant to their business?"
Danielle: "I work with some clients who aren't really into social media. I encourage them to at least try it out because it is something that they should put into their business. Social media can be a huge part of their success."
Kartik: "What is a good engagement strategy for those who want to get started?"
Danielle: "What I have found myself doing is that I will purposely go on Instagram and start liking pictures of real estate agents that I follow. I even go into my search bar and find real estate agents I know. I seek them out and message them if I want to, like send a DM about my escrow services. You're not working that hard to send a message online. It cost me more gas and time to visit friends than to touch my phone and start sending messages."
Kartik: "A lot of people struggle about what content to post and when they should post it. What do you do?"
Danielle: "It's important to post at certain times of the day when people are more likely to look at their phones or check social media.
• Before 9 am: Lots people get to work between 7:30 and 9 am and check their social media with a cup of coffee.
• Noon during lunch.
• After 5 pm: Work is over and people have some downtime.
• Between 8 and 9 pm: The day is usually done and there's some wind-down time before bed.
Kartik: "What are your end goals with social media?"
Danielle: "My goal is to continue building my following and use it as a tool to get business. I also want to be a leader in my field. I want people to use me as an example, just like the people I look up to on Instagram. I try to follow their methods and implement them into my strategy."
Learn More About Real Estate and Social Media
Once you build an audience around yourself, you can monetize and build your brand even more. I'm so thankful to hear some expert tips from someone who has used Instagram for her business with real results.
If you’ve considered taking online real estate classes visit our website here. If you want to take real estate classes in Los Angeles or in Orange County we have you covered also! To learn more about using social media for real estate, subscribe to my YouTube channel here.
Love,
Kartik
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5 Things I Love About Home Ownership No matter what you’re selling a basic belief in it is critical. It’s hard to sell something that you yourself don’t see value in. I genuinely love real estate, Read more...
5 Things I Love About Home Ownership No matter what you’re selling a basic belief in it is critical. It’s hard to sell something that you yourself don’t see value in. I genuinely love real estate, and there are countless reasons why. Because of this, I have no problem talking about it with everyone I meet. However, for this blog, I’ll limit myself to just a few reasons.Here are five things I love about homeownership.1. Fixed PaymentsWhen you get a home loan with a fixed interest rate, you lock in your payment for the next 15 to 30 years. Your payment is locked – even if the world around you changes. This means your payment will stay the same even while the cost of living is guaranteed to increase over time. This predictable and stable payment will help you plan financially without the fear of increased living expenses.On the other hand, if you rent, your payments are virtually guaranteed to increase as demand and population increase.When you own your own home, your housing expenses are locked in, which only gives you more margin because you’re not continually paying more to live at the same property.2. Likely AppreciationOver time, the value of your home is likely going to increase. Just how much won’t be the same every year, but on average California real estate goes up 4 to 8 percent annually.In some years, values may rise more than 20 percent, and in bad years values can go down — but everything ultimately averages out to a steady rate of appreciation between 4 and 8 percent.Without any effort you’re going to get richer through appreciation.3. StabilityOwning a home gives you a measure of stability and certainty in your life. You also get more control over basic lifestyle decisions without having to ask a landlord for permission. Do you want to paint your walls? Go ahead! If you want a dog, you don’t need to ask your landlord or pay a pet deposit — after all, it’s your house.Also as I mentioned before, fixed payments provide a static housing expense that won’t go up with inflation. In an uncertain world, this is a good thing.4. Forced SavingsIt doesn’t matter if you’re frugal or not — owning a home forces an increase in net worth over time.Even if the value of the home never goes up, the mortgage balance is going down through the process of amortization. This forces you to build some level of net worth even if your property isn’t appreciating.In California, you’ll gain more equity by an ever-decreasing mortgage balance, which will give you access to funds in the future. If your home appreciates, so you’re getting richer on both ends — with both a decreasing balance and higher home value to give you more equity.
5. Your Home Is an AssetYour home and other real estate form part of your estate, which can be left behind for future generations. The fact that your house is passable to others helps leave behind a legacy and keep wealth within your family.As a renter you are getting value in that you have a place to live temporarily, but the big picture is that you are helping pay off your landlord’s mortgage with ever-increasing monthly payments.I understand that in some markets people have the position that it is cheaper on a monthly basis to pay rent compared to a mortgage and that (in theory) that difference could be reinvested elsewhere but the truth is that so few people actually do that. For most of us, if we have money in our pockets we tend to spend it.Learn How to Buy and Sell Homes in CaliforniaDo you want to take real estate classes and get into the exciting world of buying and selling homes? Are you ready to share the benefits of home ownership with others? Then find out more about real estate classes in Los Angeles or even online real estate school today!
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Chinese Investment in U.S. Real Estate Down
Some of the most significant players in the U.S. real estate market are Chinese investment groups. In fact, if you check out our Foreign Investment Study, Read more...
Chinese Investment in U.S. Real Estate Down
Some of the most significant players in the U.S. real estate market are Chinese investment groups. In fact, if you check out our Foreign Investment Study, you’ll find that 1 in 14 residential properties that sold for over a million dollars was sold to either someone from Hong Kong, mainland China or Taiwan. Chinese investments in U.S. real estate have long brought health and vitality to the U.S. real estate market.
That said, Mark Heschmeyer from CoStar reports in his article Already Down, Chinese Investment in U.S. Real Estate Evaporates in First Quarter that if you compare the first quarter of 2017 with the first quarter of 2018, Chinese investment in U.S. real estate has gone down a staggering 75 percent.
This is a significant piece of news for real estate investors and agents for a lot of reasons — one of them being that Chinese investors have long been stimulating the U.S. economy. When 85 to 90 percent of foreign investment in U.S. real estate slows down, so can development and job creation.
Mixed Signals and an Update
Just a disclaimer: Nobody knows for sure if this trend is likely to continue or if in a few quarters things will return to the way they were. In fact, recently Costar reported that the American arm of Wanxiang Group Cos. acquired the Prudential Plaza Office Complex in Chicago for a cool $680 million, exceeding all the investments made in the entire first quarter of this year. As you can see, this situation is still very much up in the air.
What’s Causing This Overall Decrease?
Heschmeyer suspects that one factor that may be causing Chinese investment in real estate to dwindle is that the Chinese government has enacted new legislation that has pushed a lot of Chinese investment toward Europe and other parts of Asia rather than here in the United States.
Selling Current Holdings
Another trend is that these groups are selling their current U.S. holdings – thereby increasing supply. Recently many large deals have involved Chinese investment groups acting as as sellers-disposing of their U.S. real estate assets.Right now these are just large investments. For example, in February 2018, a Chinese investment group sold New York’s 1180 Sixth Avenue for $305 million and 19 East 64th Street for $90 million. These are just a couple of the large U.S. holdings that Chinese investment groups have sold off.
What If You’re Investing on a Smaller Scale?
If you’re an investor in smaller properties, you may be watching this situation closely to see if it will eventually affect you. As an onlooker, here are some questions you may have:
1. Is this an ongoing trend? Are Chinese investors going to be continually pulling money out of the U.S., or is this just a short-term reaction to legislation and things will return to normal in a few quarters?
2. Will this start affecting smaller deals? Is this the catalyst of a trend that will eventually trickle down to smaller properties like a $500,000 home or a $2 million building? Will we lose out on these smaller investments that help our economy and development?
In reality, nobody has definitive answers to these questions at this time. The only thing that we can be sure of is that Chinese investment in U.S. real estate has dropped precipitously, but we’re not sure if it will stay this way.
Tell Me What You Think
Do you think that this trend will trickle down to smaller assets? Do you think this drop is only temporary and that it won’t affect smaller holdings? Is this a good thing or a bad thing? How do you think it will affect the overall economy?
Current Events and Real Estate
Great agents stay on top of what’s going not only locally but also internationally. This awareness helps them tailor their sales and marketing strategy. Starting your real estate education off on the right foot can make all the difference in the world.
Learn how great real estate agents operate in the landscape of constantly changing legislation, buyer behavior and marketing trends at ADHI Schools.
Love,
Kartik
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Are We in a Real Estate Bubble?A topic of debate in our industry these days is whether or not we are in a real estate bubble. With supply still relatively low, housing starts that don’t keep pace with Read more...
Are We in a Real Estate Bubble?A topic of debate in our industry these days is whether or not we are in a real estate bubble. With supply still relatively low, housing starts that don’t keep pace with demand and prices inflated, my impression is yes.What do you think? First, I want to follow up on a video I recorded earlier this year. I reflected on a tour I did of some new construction where Lennar homes had built homes within homes – sort of like an in-law suite. I then discussed what I suspected to be a real estate bubble brewing, even back then.Back to the Mini HomesThese mini houses were built because Lennar might have suspected that housing prices in California had become so unaffordable that buyers would actually need demised space inside their homes so buyers could have their parents, children or tenants rent out the smaller space to offset the mortgage payment. The builder might also have predicted that joint families are becoming more likely for a greater number of buyers.I spoke of an affordable housing crisis that had to come to a head somehow. Read on for some California market statistics that have me concerned:The Numbers Say It AllIn San Francisco County, the median home price as of Feb 2018 was $1.73 million. There was a strong increase in appreciation in San Francisco county because in January 2018, the median home price was just $1.33 million.I’m located in Southern California, so naturally, I was interested in local statistics too. As of March 2018, the median home price was $805,000, but in January 2018 the median price was $780,000.Frankly, I’m a big believer that we are in a bubble. It’s no secret that many in the real estate business don’t want to admit that the economic environment for housing might be in bubble territory. But I’ve been saying that we’ve been in a bubble for the past year.Why Are Prices Increasing?Prices are always some interplay of supply and demand. Supply could be defined as the number of houses on the market at any given time and demand refers to the number of qualified buyers.We have had constraint in supply for the last few years relative to demand. The number of houses on the market in most areas just isn’t enough to satisfy the demand. This has caused prices to increase and a reduction in marketing times. According to the California Association of Realtors the average time to sell a home in California has recently been as low as 18 days!Low supply coupled with relatively high demand because of low interest rates and other factors have resulted in an extreme amount of appreciation. I believe that this isn’t sustainable and the market must balance out eventually.Why the Correction Might Not Be as Extreme as the Previous RecessionDespite the fact that I am a believer in the law of entropy I’m fairly confident that the next real estate market correction is unlikely to be as pronounced as the 2008 crash. This is not to say that another correction might not be worse, but I predict that the upcoming one should be a softer landing. It’s no secret that underwriting standards are pretty conservative these days. People generally have to qualify for financing and submit a bunch of documents to prove their financial ability to repay. There aren’t as the same number of stated income and stated asset loans out there that precipitated the 2008/2009 crash.What will happen and when? We can’t be sure. Maybe it will be an international geopolitical event, maybe a domestic event or something else significant that will cause the market correction. Maybe interest rates edging up will cause the market to shift.I just know that these prices aren’t sustainable.A Brief Update: July 2018This blog was based on statistics I found in earlier in 2018. Current stats from the California Association of Realtors state that the median price for homes in San Francisco have decreased to $1,620,000 as of the time of this writing. However, this is still a 7.9 percent increase of what the median was in May 2017.In Orange County, the median home price has risen to $838,000, which is a 5.4 percent increase from its value in May 2017.In short, the numbers still support my theory that we’re in a bubble.What Do You Think?Leave a comment on my YouTube video on this topic here. I would love to know what you think. Do you think I’m right? Am I wrong? Do you think these prices are just the new normal?If you are interested in real estate classes in Los Angeles or even an online real estate school, check out our website here.
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What Does It Cost to Become a Realtor®?
To start, we should differentiate between a “real estate licensee” and a “Realtor”. Remember, that to become a Realtor, it’s not only the exam and Read more...
What Does It Cost to Become a Realtor®?
To start, we should differentiate between a “real estate licensee” and a “Realtor”. Remember, that to become a Realtor, it’s not only the exam and license fees, but also association of Realtor’s membership dues that you have to pay. I’ll discuss all of these through this blog post.
A little plug – Don’t forget to follow me on Instagram,and subscribe to our YouTube channel.
It’s also important to keep in mind that prices for real estate education, exams, and licensure will vary state-by-state. That said, let’s look at the costs below. The main expenses you’ll incur on this journey are:
Statutorily required pre-license education
Classes at our real estate school currently range between $150 and $499. The price difference depends on whether you want to take the classes online or with an in-person component. Our online classes are great and our in-person classes are legendary. It’s really up to you. One other thing – please keep in mind that these prices are subject to change. While we haven’t raised the prices of our program in years, depending on where and when you read this post, things may have changed. The best thing to do is check our website or call us at 888-768-5285.
Also, realize that some states do not allow the future real estate professional to take their classes online. Arizona, for example, requires that you take classes in person. California allows you to do either or a combination of both. Check with your state to determine what the requirements are.
Exam fees
In California, the current cost of the real estate examination is $60 for salesperson applicants and $95 for the broker exam. If you happen to fail the test, the state requires that you pay this fee again.
Pro tip: Don’t fail the exam. Study with our amazing real estate exam prep site here.
Not sure what the difference between the sales license and brokers license are? Check out our video about this here.
License fees/criminal background check
The fee mentioned above is only for the exam. The state of California requires that you pay a license issuance fee as well. This is $245 for the sales license and $300 for the broker license. This fee is to be paid every four years when the real estate license is renewed.
You’ll also need to go through a Livescan criminal background check – even if you’ve been through this before. This will cost $49 to the Department of Justice in California plus whatever the livescan operator charges. Typically it’s another $20 on top of the $49.
Association of Realtor dues + joining a brokerage
If you’re a residential real estate professional, you will need to join the National Association of Realtors, the California Association of Realtors, as well as join a brokerage in order to do any act that would require a real estate license. Your board dues will cost between $1,000 and $1,500 per year depending on the association of Realtors that you choose.
Joining an association is mission critical as membership will provide you:
◦ The MLS (The most accurate database of current and former real estate transactions and tax information)
◦ Zipforms (ultra-convenient program that helps you draft complete contracts)
◦ E-Key (grants access to show properties)
Join a brokerage
Each company offers unique fees to agents that join them that vary. You may have a monthly office fee, website fee or pay up front for photocopies. You’ll want to interview a few of them first to make sure that you’re in the right spot.
Optional Expenses
Just because I’m terming these “optional”, it doesn’t mean that they’re not important. Being a full-time agent requires paying careful attention to your image online and in the community. Investing in these following items can boost your reputation.
• Getting professional headshots that are updated yearly can cost between $100 and $500 per session, depending on the photographer you use, nature of the photo shoot and number of photos you need. Accurate and good-looking professional photos are important in order to appear credible to new prospects. Imagine a fuzzy, outdated, 10-year old MySpace selfie being used on an agent’s website and business card. This looks lazy and doesn’t help the agent gain credibility. When you take the time to invest in your professional image, it helps win the trust of new leads.
• When it comes to marketing and promotion expenses, the sky is the limit. Your marketing expenses will depend on how much you want to invest in these:
◦ Boosting posts on social media: $5-as much as you want to spend.
◦ Open houses: Varies depending on how much food and drink you’re providing.
◦ Fliers and ads: Physical fliers are still necessary in many cases. The costs are minimal if you have an office printer and a set amount of prints you can do per month. Postcard marketing is also a tried and true method to gain new seller leads. We recommend our affiliate farming.cards listed here.
Get Your Real Estate License in California
If you want to know more about getting a real estate license in California, feel free to contact us today.
-Kartik
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Ways to Market in the Real Estate Business
It's impossible to build a successful real estate business without developing and maintaining a healthy sales pipeline. One obvious way to drive Read more...
Ways to Market in the Real Estate Business
It's impossible to build a successful real estate business without developing and maintaining a healthy sales pipeline. One obvious way to drive sales is to have a deliberate marketing effort, but with so many ways to market yourself as an agent, it can be daunting having to choose between so many marketing channels.
In this post, I’ll go over a few of the most effective to help build your marketing roadmap.
As always if, you are interested in online real estate classes or a live real estate school, visit adhischools.com.
Networking
One of the easiest and least expensive ways to market and raise awareness about you and your business is to start networking. In the physical world, this could be something as simple as handing out your real estate business card to people you meet and letting them know what you do. Although the person to whom you gave your card many not have an immediate real estate need, consistent networking can lead to a long line of referrals. The best part: This word-of-mouth promotion is free, and you never know who they will meet with real estate needs.You can also participate in local community events, particularly if you are in residential real estate. Whether you hang out at the farmers market or have a booth at a street festival, being involved in the area in which you sell will make people more inclined to work with you. Set a goal to recognize as a resource for local real estate.But what about networking in the digital world? This could mean maintaining social media accounts on popular platforms like Instagram, Twitter and Facebook. There are different ways to reach people once you're signed in. Don’t forget to post helpful and interesting content (like I do with our blog *cough* *cough*) adding friends, liking other people's posts, sending direct messages and more. After you meet someone in person, don’t be shy about asking to connect on Facebook, or following one another on Instagram. Make a conscious effort to reach out online, especially after making a personal contact.
Setting a Marketing Budget
While not a law, realtor.com says that you should be spending 10 percent of your commission income on marketing. Overall, have your spending match the caliber of what you're trying to sell. Compare the marketing associated with a starter home and a luxury mansion - they are totally different. If you’re interested in learning more about the luxury real estate market, check out my YouTube video.In most real estate markets nationally, the starter home is going to get plenty of interest solely based on price, so you may just need to create a listing in the MLS to get interest and have a few nice photos up. The luxury market, however, can be more competitive and particular, so save your money for extravagant and decadent open houses, professional photography/videography and promotions you will do throughout the listing period.
Paid Promotions
While on the subject of a marketing budget, there are plenty of ways to promote yourself that are worth the investment. Here are just a few ways to use your marketing budget to the max.
Boost your SEO
According to the National Association of Realtors, 90 percent of people searched for their home online. Increase your online search rankings in a local home search.
◦ Consider pay-per-click Google Ads to get your page higher in the paid search results.
◦ Hire someone with SEO knowledge to make your website organically rank higher.
◦ Increase your presence online by paying for premium memberships on listing sites like Zillow and Realtor.com. You can gain more visibility as potential buyers browse what's available because your profile will be featured while they are swiping through.
• Pay to boost your social media posts to reach people outside of your normal friends list on platforms like Facebook.
• When it comes to direct mail, utilize the services of a professional postcard marketing company like www.farming.cards to get your name and message into the homes of potential customers.
Be Memorable
Great marketing that is consistent will keep you fresh in the minds of your leads and contacts. When you are out there promoting your business and winning the trust of your sales pipeline, guess who your contacts are going to call when they have real estate needs?
Don’t Neglect the Direct Sales Approach Also
Marketing is great, but don’t forget direct sales. Work the phones, door knock and directly engage your customer. All of the aforementioned are totally F-R-E-E. =)
Learn More at ADHI Schools
Effective marketing is key to becoming a successful real estate agent. At our real estate school, we'll teach you strategies for becoming an excellent self-promoter and a real estate powerhouse! Register for ADHI Schools today!
- Kartik
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How to Dominate a Farm in Real Estate
You've finished your real estate classes and passed all the tests. It's official: You're now a licensed real estate agent. All those sleepless nights Read more...
How to Dominate a Farm in Real Estate
You've finished your real estate classes and passed all the tests. It's official: You're now a licensed real estate agent. All those sleepless nights filled with studying alluvium soil and the laws of the land have added up and paid off. After you put the blast the good news on Instagram, the question hits you: What next?
Starting off in real estate is at once the most exhilarating and scary times you'll find yourself in. After all, real estate agents aren’t in short supply, especially if you’re in Los Angeles or Orange County. The question becomes how do you pick a specific market area and get the majority market share in that community?
Breaking into high-end, luxury real estate isn't for the faint of heart nor for those who are off put by the idea of getting their hands dirty. This market is especially challenging for those with no prior experience, connections or repertoire. However, this doesn't mean there isn't a way to to get the job done. I’m warning you: It's will take work. (But hey, nothing worth having comes free — or in this case, without immense effort on foot.)
In order to get your name out there for those in your target market, your first step is to farm that area.
What Is Farming in Real Estate?
Farming a market is when you select a geographic or demographic area to focus on in hopes of growing your brand and ultimately your market share in that area. As time passes, you consistently nurture the market you've selected to farm through various marketing tactics that, over time, allow you to be seen as a trusted member in the community. Though geographic farming (as opposed to demographic farming) is generally thought of as the more common of the two forms of farming, both can lead to big breaks for newcomers to the realty world.
Consistency Is Key
To successfully break into your target market by farming, you need to be consistent. Farming is a long-term investment — not just financially. It's all about building and maintaining relationships with those in the community, and that takes consistency on a regular basis.
While you strive to make your name a well-known one in your selected area, you can work on building trust and connections by means of consistent communications. You can keep members of your selected community up to date with any new trends or events in their neighborhood by sending biweekly postcards — appropriately branded.
Knowledge is King
It's now a basic job requirement to stay on top of any and all changes that may occur in the market you're farming. Know if there’s a new shopping center being built in the area. Understand any new zoning changes that might be taking place in the near future. Keeping up on these changing market dynamics can be critical in continuing to bring value to your farm area. For example, door knocking with the latest pumpkin pie recipe is great around Halloween, but what about communicating recent sales in the area? If prices have risen or fallen it would be valuable to share this with owners in your farm area.
People love talking real estate - especially if it directly impacts their community.
Plan For Return On Investment (ROI)
When you're first starting out, it can seem like you're constantly dodging bullets and climbing hills. Needless to say, things can seem pretty daunting with a minimal client pool and little experience. Hey, that's why you're farming, after all! There's nothing to be ashamed of about being the new agent in town, but that's no reason to remain stagnant.The great real estate agents know that having a plan and executing it properly is mission critical. Make a budget and set achievable ROI goals. While time, progresses and your year march on, you can alter your initial plan with the insights you've gained thanks to new connections within your farming area and a better understanding of the people within the market.It's also important to bear in mind that farming by definition is a long-term thing.
Awareness Is Key
Being seen as the go-to source of knowledge in the area you're farming is the end goal. It means you're trusted and respected within the community, and have proven to be a reliable source.
Once you've established your role as the neighborhood's professional real estate agent, you'll have direct lines to various homeowners in the area. By coming around consistently and sharing valuable neighborhood and household insights, you're raising awareness about you, your brand and the service you provide. Also possible - the more people you know the more referrals you are going to get.
Keep in mind the law of numbers is alive and well - especially in real estate sales.At times, your real estate journey may seem daunting, but with proper farming, you'll have a positive rapport in the community and numerous satisfied clients in your phone. Follow up with them with intent and determination.
The biggest lesson I’ve learned from nearly 20 years in this business is that consistency is king.
Want to take real estate classes? We offer online real estate education as well as live classroom real estate courses. Let us know how we can help. =)
-Kartik
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FOLLOW UP IN SALES
If you have ever sold anything, you know that it’s extremely rare that a sale is made on the first contact. Even for something as benign as a shirt or bag, the customer Read more...
FOLLOW UP IN SALES
If you have ever sold anything, you know that it’s extremely rare that a sale is made on the first contact. Even for something as benign as a shirt or bag, the customer may need to come back to the store or review the item online a few more times before committing to the purchase. Before you enroll in a real estate school, it's important to be aware that real estate sales is just that - sales. Follow up is probably the most important aspect of the sales business.
Much of the time, it will take at least 3-4 contacts before your customer signs. In the case of real estate sales, it might take even more contacts as the sales cycle can be longer given the transaction size.
Even though this is a fact of business, most sales people don’t follow up nearly enough or as hard as they should.Reaching out to customers after an initial contact makes several positive impressions at once.
Here are just a few of them.
Follow-up and follow-through show your client:
• You're trustworthy.
• You're available.
• You care about their experience.
• You think they're special.
Mastering the art of the follow-up helps you become a more successful salesperson.
• You learn what the customer expects or wants.
• You give a customer the chance to be heard.
• You can convert a contact into a lead.
• You make the contact more inclined to work with you over other agents.
• You stay fresh in the customer's mind. Even if they're not ready to buy/sell right now, they may be later.
With so many benefits, you should definitely pursue following up as a key prospecting strategy to help you nurture leads and build more business.
How Many Times?
Statistics about agents who followed up more frequently versus those who didn’t are staggering. A recent report shows that agents who follow up on their leads five or more times made at least $200,000 per year. Those who followed up less frequently, even three times, reported significantly less earnings.To many of you, three times seems like a lot already, but it looks like five times is the magic number. Real estate depends on many tenacious sales tactics like this one. If you need to overcome the fear of prospecting, remember that the sale is made in the follow through, not in the initial contact.
The Nature of an Effective Follow-Up
If you're not following up with customers, you're setting yourself up to fail. The real estate game is all about gaining new prospects and leads. As such, you must constantly build your sphere of influence, your pipeline and ultimately gain the trust of new people.But before you pick up the phone or hop on the computer, you should take some time to review the best practices of a follow-up. It's more than just randomly calling people you meet. You need to contact people intentionally.
• First, have the right attitude. Sit up straight and exude confidence in your body language and voice. Your customers can sense if you're not sure about what you're selling.
• Follow up with hot leads first. These are the people who are most likely to become clients. You will get a higher success rate when you prioritize hot leads. Plus it’s easier to build your confidence with warm and hot leads rather than “leads” that are unlikely to buy.
◦ Segmenting your contacts is a valuable habit that will help you determine which contacts are more likely to lead to a sale — and therefore more worth your prospecting hours. Try cutting your prospects into groups of “hot” “warm” and “cold”. You must define what “hot” “warm” and “cold” mean. To me, a hot lead is one that will sign a contract in the next five to seven days.
◦ Follow up with a new lead within the first day.
◦ A hot lead should be reached every day
◦ Contact cold leads on a less frequent basis, between monthly and annually, depending on the nature of their real estate needs.
Hit multiple channels
Some people prefer one kind of contact method over the other, so being present on multiple channels can do wonders in reaching them. Here are a few to try:
◦ Phone calls
◦ Emails
◦ Text messages
◦ Social media DMs
◦ Event invites
◦ Direct mail postcards (check farming.cards as a valuable tool).
Vary your approach
You can make direct calls some days or use softer marketing techniques at other times. Sometimes offering informational content reaches leads without seeming too "salesy," such as sharing home-buying tips on a blog or advice on HVAC repair in a video.
Learn Real Estate Marketing and More at ADHI Schools
This is just the tip of the iceberg when it comes to a great real estate marketing strategy. When you take our online real estate classes, you'll learn the ins and outs about becoming a great agent who can nurture great client relationships. Follow up is a critical part of that.
-Kartik
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I recently received an email from a former student who asked me a question that every agent is bound to ask after getting busy. Whether you are taking real estate classes in Los Angeles or going to our Read more...
I recently received an email from a former student who asked me a question that every agent is bound to ask after getting busy. Whether you are taking real estate classes in Los Angeles or going to our real estate school in Orange County the below is applicable.
The email goes like this:
"Dear Kartik, I'm doing well in real estate and I think it's time to hire my first assistant. How do I go about finding someone, and when did you hire your first assistant?"
I'll answer his questions here.
How Do You Go About Finding an Assistant?
Overall, to hire someone, you need to take the following steps:
• Create a job description of the tasks you need performed.
• Properly screen candidates. Don't make impulse hires! There’s a great saying “Be slow to hire and quick to fire!” Good advice.
• Offer them a fair wage to reduce turnover.
After you hire someone, you should ...
• Train them well.
• Stay on the same page with your goals.
• Run your business by the rules created at the beginning but be willing to bend.
My Experience
To fully answer my student's question, I'll also explain my first hiring experience. I hired my first assistant four years after starting real estate, mainly because I had a lot of plates in the air at once. I was running my real estate brokerage business and working at the real estate school at the same time. Naturally, I was feeling overwhelmed.I actually feel like I got lucky with my first assistant. In fact, she's still working with us as the manager of our real estate school. I never screened an applicant before hiring her, but just ended up with a great assistant who stuck with me for the years to come.However, after gaining some experience in hiring more employees, I can now give you some real pointers.
Write It Out
The first thing I'd advise you to do is write out the job's description. What do you personally feel overwhelmed with? Do you need a personal assistant who can get your car washed one time a week and pick up your dry cleaning? Or, do you need a real estate assistant who can organize your files, input your listings into the MLS or oversee photographers and videographers? Hire someone who has experience doing these tasks or get someone who is willing to learn them well.
Properly Screen Candidates
In reality, hiring someone is always a little bit of a crapshoot. You’re going to do all you can to examine resumes and make applicants take personality tests, but there's always an element of luck in the hiring process. However, properly screening your candidates can reduce the chances of making hiring mistakes.
Here are some basic rules to follow:
• Don't randomly hire. Too many agents hire friends or friends or a spouse who was laid off, and then five months later they wonder why it didn't work.
• Avoid impulsive hires, even if you're in a rush.
• Check out their resume and make sure they have a background in the tasks you are giving them or are a good fit to learn.
• Use personality tests and other assessments, but don't let the scores define their destiny. I've seen someone who was told he didn't fit the agent personality profile become a successful broker and start his own company!
Prevent Frequent Turnover
Good talent usually sticks around with good pay, so offer a fair wage to eliminate turnover. After all, who will stick around if you offer just minimum wage? I've had people stay with me for five years, 10 years, even 14 years. Why? It's because I always think about how I can put more money in their pocket.I ask myself how I can make them more money ... because when they're making more money, I'm making more money, and the company's making more money. Pay your employees a fair wage and they'll not only work hard for you — they'll stick around.
Train Them and Have Accountability
After you hire someone, you'll need to do some degree of training. You should also hold them accountable for staying on task. Many agents like to have periodic meetings or phone calls to set goals and objectives because being on the same page is important. Whatever frequency you feel you need to communicate is up to you. I have some members of my sales team that I literally call three or more times per day. This might be a bit much for some of my readers, but it is what it takes when you are getting something off the ground from scratch.
Play By The Rules
Now that you're a boss, you need to make sure that you have all your legal ducks in a row. Have worker's compensation insurance for your assistant and withhold the right amount of taxes. Make sure the people you hire are properly classified as either independent contractors or employees.
Learn From the Best
Congratulations on getting to a point where you can hire your first assistant! I wish you the best of luck in the hiring process and hope you find the right person to join your growing business.If you are looking for the right real estate school, check out our website for real estate classes, or call us at 888-768-5285.
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