A Fresh Approach to Real Estate Rookie-hood with Jennifer Allan: April 2007

Whatchu talkin' ‘bout Jennifer? You can't be serious!

Yes, I am.

If you're asking the question "What is the best way to ask for referrals?" that tells me that something about doing it bothers you.

And if it bothers you, don't do it. Your discomfort will be crystal clear to the person you're asking, which is probably worse than not asking at all.

(If you don't mind asking for referrals, it probably comes naturally to you. Keep up the good work and ignore the rest of this blog.)

Do YOU like being asked for referrals? I don't.

When a friend asks me to refer business to her, I feel uncomfortable. What was five minutes ago a friendship suddenly feels like an obligation. If she asks me twice, our friendship may very well be in danger. I don't want to have to explain to her why I haven't referred anyone to her lately (or ever). I don't want to listen to her sales pitch... again. And, frankly, if I haven't referred anyone her way, there may be a reason. But I'd hate to lose a friendship over it.

When a business professional asks me for referrals, it lowers my respect for them a notch. Right or wrong, I assume everyone is as successful as they wanna be. So when I receive a marketing letter from my insurance agent or my accountant asking for referrals, I suddenly question their level of success... and therefore, just a teeny bit, their competence. Where five minutes ago, I perceived them to be a prosperous, crazy-busy professional... now they're a ... salesperson. Ick.

Don't get me wrong, I love to refer. I'm a referring madwoman when I find someone I believe in. You don't have to ask me to refer, I'm all over it! Aren't you the same way? If you have the world's best hairdresser, dog trainer, chiropractor - don't you tell everyone you know? Do these people have to constantly ask you for your referrals?

Here's a better way.

Be a friend first. If not a friend, then a reasonably competent human being. Be happy, excited and enthusiastic. Act as if your career is everything you always dreamed of. Practice saying "I'm a real estate agent and it's the coolest job in the world!" with a huge smile on your face. Or how about "I had no idea how much I would enjoy selling real estate, I'm having a blast!" Followed up by a sincere "How are YOU doing?"

To ensure that every potential referrer in your life knows you're a reasonably competent human being, make sure your self-promotion materials are professional and error-free. Return phone calls promptly, even social phone calls. Show up on time for appointments and lunch dates. Do what you say you're going to do, when you say you're going to do it. No excuses. Dress appropriately. Watch your language.

It really is that simple.

www.SellwithSoul.com 

Yesterday, I got a call from a former client of mine. She was one of my biggest investor clients during the Denver real estate boom in the late 1990's, but has since left town and no longer invests in the Denver market. We stay in touch and she sends referrals my way when she can.

Anyway, she called asking for my help in appealing a low appraisal her brother received on his home he's trying to refinance.

No problem, I tell her. I pull the comps, confirm that the appraisal is ridiculously low and email her the information, which she forwards to the lender handling the refinance. The lender calls me, asks for a little more information, including a copy of the tax assessor's record, which I immediately fax to him. He emails me the low appraisal and asks for my input which I provide. I explain in detail why the comps the appraiser used are inappropriate.

He thanks me profusely and tells me I'm awesome. I smile.

From the time my client called me to the point I evaluated the appraisal for the lender, about 90 minutes passed. All in all, I spent maybe 25 minutes of my time. Piece o' cake to do.

The moral of the story... this is pure SOI in action. Do you think I'll need to constantly remind my former client that I LOVE Referrals? Uh, no. I'm her real estate resource in Denver, no question about it. Because I dropped everything and helped her out right away, she knows she's a high priority for me. She knows she's special. I don't have to tell her, I showed her. And I won't have to remind her.

This is pretty simple stuff. But what if I followed my buddy Dirk Zeller's advice and put her off until later in the day (or even tomorrow) so I could finish up my prospecting or other more critical work? I mean, isn't it way more effective to pester ten strangers than to take care of one person who has already proven to be a source of business for me?

What do you think?

www.sellwithsoul.com

copyright Jennifer Allan 2007

We've all heard from the guru's how we should prospect two to three hours a day. Uninterrupted. No distractions. After all, we are self-employed and need to ensure ourselves a steady stream of business in order to stay IN business.

Fair enough.

But for those of you who shudder at the thought of pestering strangers every day, here's a new approach, compliments of Loreena Yeo.

Loreena is my consulting client. She hired me to help her succeed in her real estate business. Per our agreement, I get paid for my efforts. But, with her insight and wisdom, she's helped me every bit as much as I've helped her.

Here's what I learned from her this week.

To give myself credit, I introduced Loreena to the concept of an SOI business model. And she's run with it. She is now the poster child for how to succeed in real estate sales by being a good friend.

How does Loreena prospect to her SOI? Well, you can check out her blog for lots of ideas. But the one that struck me this week was this...

Loreena spends her "mandatory" two to three hours a day prospecting time writing personal emails. Not calling FSBO's. Not pestering expired listings. Not cold calling her farm area.

She spends that time catching up with her friends. Via email, because she's a little shy, it's easier that way. Does she ask her friends for real estate referrals? NO WAY. Does she share her latest success story? I doubt it. She just does what we woman creatures do naturally. Communicate, nurture, offer compassion when needed.

Is it working? Oh yeah. Just ask her. She's crazy busy and her phone is indeed ringing. With business and referrals from her SOI.

Here's the best part. She estimates a 90% success rate. As in, 90% of the people she writes to write back. Do they have a real estate need or referral today? Probably not. But when they do, you can be sure they'll think of Loreena.

How does a 90% response rate compare with YOUR prospecting efforts?

www.sellwithsoul.com

copyright Jennifer Allan 2007

This blog is directed at new agents. Experienced agents, who know their systems, their markets and their contracts, and who have a steady stream of business can certainly succeed working part-time. But in the first year......

No! Selling real estate (well) is NOT a part-time job!

I know this opinion is unpopular. And because I like to be liked, I've kept my mouth shut. As an active participant on several real estate forums, I see this question come up time and again. Responses range from "Oh, yes, you can definitely sell real estate part time" to "Well, you can do it, but you'll have to work real hard." To my great surprise, no one comes right out and says "Are you crazy??"

So, I'll be brave and go first... "Are you crazy?"

Let's talk about the reasons someone might become a PT real estate agent...

Uh...okay, only one reason comes to mind. Money. Not enough of it.

I can't think of any other reason someone would start a new career and only attack it half-assed (or less!)

This is a tough business to get into, especially now. Well, I should rephrase that - it's certainly not tough to get into, but it's very tough to succeed in. Rumor has it that eighty percent of new agents fail within the first year. Eighty percent! So, if you are considering entering a business in which eighty percent don't make it through the first year, the odds are very much against your chances of succeeding. And you think that giving it less than your all is going to improve those odds?

The common song I hear when agents insist on going part-time is a whining "Well, it would be NICE if I could do it full-time, but not EVERYONE has that luxury!"

Fair enough.

Then, maybe, just maybe, this isn't the right time. Just because selling real estate is your dream doesn't mean that you are entitled to succeed if you aren't ready. Some dreams may just have to wait. Patience, grasshopper!

But enough ranting and raving (maybe). Here are some solid reasons part-time is not nearly as cool as full-time:

1. Being part-time screams to your friends, prospects and clients that you aren't successful enough to do it full-time. And who wants to work with an unsuccessful real estate agent?

2. Being part-time requires you to be oh-so-efficient with your time. This sounds like a good thing, but it's not. In the course of learning to be a good real estate agent, you need to be able to risk "wasting" your time. For example, let's say you get a floor call from a marginally qualified buyer. If you're part-time, you might be tempted (or forced) to turn him away. If you're full-time, you're delighted for the opportunity to practice your craft, regardless of the potential for a paycheck. But I guarantee you, whether or not you get paid for running around with this buyer, the learning experience will be worth every "wasted" minute. And who knows, this buyer could end up being your biggest referral source.

But as a part-time agent who doesn't have time to mess around, you'll never know.

3. I don't see how a new part-time agent can truly serve her clients when she doesn't have the time to learn her craft. When I was new, everything I did took me five times as long to do as it should have because I had a huge learning curve to climb over. I worked very hard (full-time) to learn my market, to master my systems, to know my contracts inside and out, to develop my team of service providers and oh, yes, to answer my phone every time my clients called... or to return their calls within five minutes.

4. Your paying clients expect and deserve your full attention. Especially when you're new and, c'mon, admit it, you don't know what you're doing. When you go on your first listing appointment, you SHOULD have spent the previous 48 hours straight preparing your market analysis. Your fear of failure and embarrassment should motivate you to go through the comparable market data with a fine-toothed comb. A part-time agent doesn't have the time or energy for this.

Your buyer needs an agent who is as enthusiastic about his house-hunt as he is. He deserves an agent who previews like a madman to find just the right house the day it hits the market. An agent who is willing and able to hold the buyer's hand through the painful inspection. An agent who can drop everything and spend five hours making phone calls when a last-minute crisis threatens your buyer's closing.

5. The agent on the other side of the deal expects and deserves your attention. She doesn't want to do your job for you just because you're at your "real" job and can't get away. And remember, you're making her look bad to her clients when she can't reach you to get a question answered or a problem resolved. 

6. Selling real estate is a constant learning experience. Even full-time, experienced agents learn something new with every sale or listing. If you're only selling four or five houses a year because you're part-time, you're missing out on a lot of on-the-job training. It doesn't matter how smart, how motivated or how charming you are, you'll never be as qualified as a good full-time agent.

(Note I said "good." There are plenty of bad full-time agents and you may very well be more qualified than some of them).

7. In both of your careers, if something goes wrong, it's going to be blamed on your dual-life. Perhaps with good reason.

Again, I know my opinion is unpopular. I just know how hard I worked in my first five years, and I can't imagine succeeding in (or even enjoying) this career without devoting my heart and soul to it.

So, here's an alternate plan. If you want to sell real estate and you want to succeed... work your backside off for the next year and save some money. Work two or even three jobs that guarantee you a paycheck and put that money away. After all, that's what you're talking about doing anyway, right? Working two jobs? If you think building a real estate business is easier than, say, waiting tables at night, you're mistaken. At least waiting tables guarantees you $3/hour with no out-of-pocket costs!

Then, hit your new career with guns blazing. ALL your energy. ALL your enthusiasm. ALL your attention. You'll be glad you did, I promise.

www.sellwithsoul.com

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Confidence-Builders for the Rookie Real Estate Agent

copyright Jennifer Allan 2007

The new agent asks... "What can I tell people about myself in 30 seconds that will make them want to work with me?"

That's a tough one. I've seen some pretty creative answers. Most answers center around bragging about one's expertise, one's helpful nature and one's successes.

Hmmmm.

I'm trying to think of a time someone bragged to me about themselves and I was so impressed I asked for their business card. Can't think of one. We human beings tend to be contrarians and will argue (at least mentally) with just about anything. Tell me how great you are, and I'm already thinking of reasons to disagree with you.

So, what do you say to someone you just met to motivate them to want to know more about you?

Try this secret phrase.

"I'm a real estate agent!!!"

If you announce it with your shoulders back and a big smile on your face, like being a real estate agent is the coolest job in the whole world...it's magnetic. People will be irresistibly drawn to you and can't help but want to know more about you.

Unfortunately, it doesn't work if you fake it. If you don't love your job and don't think it's the coolest in the world... no one else will either.

But if you do love your job and think you're pretty darn good at it... try the secret phrase a few times and let me know how it goes.

copyright Jennifer Allan 2007

Please, please, please! Can we do away, once and for all, with the dorky new agent announcement card, letter or whatever else that agents use to announce their exciting venture into real estate??!!

Here's a typical letter:
"Dear Friend, I'm pleased to announce...blah, blah, blah...my company is great...blah, blah, blah...I promise to provide the highest level of service...blah, blah, blah...please send me referrals. Love, Me"

Nice, but so what?

First, if you are new in the business, I strongly urge you not to announce this fact to the world. Sending out an announcement that you JUST got your real estate license and are looking for business won't give anyone much motivation to call you. Okay, well, maybe your mother and your Aunt Lou, but no one else.

I'd rather you approach your "announcement" a little more casually. Just slide into "being in real estate."  Don't make a big deal that you Just Got Your Real Estate License and are Looking for Business. No, simply start communicating with people you know and "reminding" them that you're in real estate. Most of those on your SOI list haven't been keeping track of your every movement (sorry), so if you're suddenly in real estate, they won't think twice about it, probably. They might even think they forgot that you were a real estate agent! And that's fine.

So instead of sending out a formal announcement, here are some other ideas for getting the word out:

√  Send out an e-mail offering your friends some promotional item or service. Don't mention that you just got your license; pretend that you've been selling real estate for a while now and "Gee, I've been so busy I've lost touch. Let's get together soon!"

√  If it's holiday time, send out holiday cards with your business card enclosed. Write a "personal" note in each "What a great year it's been! Looking forward to even more prosperous 2007 for all of us" or something like that.

√ Send out a "Happy New Year" (any time of year) family newsletter with all the happenings in your life, including your venture into real estate. Don't be specific as to when your career started--just that it did start and you love it! Be sure to include your business card.

√ Put together a mini-newsletter with a description of special services you offer, as a local real estate professional. If you have a digital camera, you could offer to take pictures of your clients' rental properties for their online marketing. Or before-and-after shots for clients who are doing extensive remodeling. Maybe you could offer to take photos of your friends' belongings for insurance purposes. I offer my graphic design services to friends for garage sales, rental property flyers, etc. Very few people ever take me up on these services, but it gives me something of value to offer.

√  Send thank you cards every day...to anyone who helped you out that day. Some sales trainers advise sending out five thank you cards every single day, and it's not a bad idea. Not only does this practice put you in a grateful frame of mind, it also gets your business card out there in the hands of the public.

Open your mind...can you think of anything you could mail out to your SOI that would have value to them, yet give you the opportunity to push your business card at them? You don't have to send the same thing out to everyone--if you belong to a special interest group, maybe you can clip a relevant magazine article and send out copies (along with your card and a short note). Brainstorm ideas, write them down.

Or, send out the dorky announcement. It's okay if you do that, it's just not special and it makes it kind of obvious that you're fresh off the turnip truck, so to speak.

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Dorky Announcement Letters - DEDorked!