Ok, so it’s booming, properties are selling quicker than they did in 2006 and prices are moving up quicker than 17 years ago in 2003/4 according to Core Logic. We have all started making money again but we’re now experiencing trouble getting listings as stock levels are as low as they were in 2006/7. Agents are reporting less GCI due to low stock levels and they can’t find listings. And so, the roller coaster continues from lots of stock that you cannot sell as there are very few buyers to no stock with very few sellers. No agent likes this up and down wave of income and stress.
How do the top 1% agents get their listings?
This got me thinking about how some agents can just weather every market with plenty of listings, great sales, and GCI, while others stand by in amazement wondering how the hell they do it. Well, the key to getting more listings comes down to PIPELINE. The seasoned, self-educated and highly skilled agents understand that it all comes down to the pipeline that feeds listings to your business. I was reading another one of Michael E Gerber’s books the other day, the guy that made himself famous writing about creating SYSTEMS for businesses, and he was talking about the fact that most homeowners sell within 5-7 years. He then went into the fact about how this represents if you have a database and that you CAN mathematically calculate how many will list and sell in each year. This fascinated me, so I will share it with you here:
- Let’s say everyone moves every 5-7 years, so we’ll use an average of 6 years
- Let’s say you have 500 people on your database
- 500 divided by 6 = 83 sellers from your 500 contacts looking to list their property
- 83 divided 12 = 6.9 sales per month on offer
So, if you are taking really good care of your 500 contacts on your database by staying in touch with them personally and with lots of touchpoints, gifts, information, and invitations, getting the listing shouldn’t be an issue and you should be able to make 6.9 sales per month. This excludes what you are gathering from your existing activity or low hanging fruit you meet at home opens, referrals, and the rest. NOW, what if you had 1000 contacts that you are nurturing? You can double this number to 13.8 sales per month, you could even triple or 10x this if you really wanted to.
This is a collection and nurturing business.
Real Estate is not an ad-hoc business that you cannot control or change. Take control of your business by building your contacts and nurturing them forever.