Client Care Yields Real Estate Leads
Starting a real estate sales practice could be quite a risky
business. Commonly, one would go days without closing a sale,
receiving a phone call, and all the time the expenses and bills
keep coming. However, success at real estate generally results
out of maintaining fundamentals, such as: knowing all the
information about your area or property, getting sales leads,
and developing referrals.
One of the key aspects of real estate sales is the sales
referral. Most prospective property buyers looking for a new
home, office or any real estate, usually approach family,
friends, and colleagues to ask for recommendations for a good
broker. Also, most property owners or homeowners selling their
real estate will go to the same network to ask for brokers who
can help them sell a property. Unlike blockbuster lawyers or
specialist doctors, there is no ready information available that
calls out the skill and experience of a particular broker. So
traditionally, referrals are done person-to-person and by word
of mouth.
At first glance, it would seem like an unreliable way to build a
business. But, if a broker knows his business and his properties
well, all it would take is a few successful real estate sales to
"referred" customers, and his sales would start to pick up
momentum. Referrals to brokers are more significant because they
could give direct contact to someone seriously considering
buying a property. This gives a real estate practitioner access
to his main target market, whereas regular advertisements
through the media would have a very wide audience, but not the
actual people wanting to buy homes or properties. In terms of
marketing, a referral is like a slam-dunk promotional lead.
It is good that real estate referrals are such a
"direct-to-market" lead. Because there is another aspect to the
business: Property acquisitions are almost always the one most
expensive purchase that a family would make. So, although
referrals give you persons interested in buying a home or
property, buying decisions are not always quick or a sure thing.
The sheer cost, location, design, need for repairs or
renovations, ease of mobility or transport, and a multitude of
other decisions are considered before a buyer commits to a house.
But then, after all this consideration, when a broker manages to
deliver a satisfactory sale to a buyer, then the broker will be
awarded with a wider and perhaps more enthusiastic referral to
other potential homebuyers. This would widen your referral
network, and expand your file of potential contacts for
referrals.
The high price of your product also means that even if only a
fraction of your referrals translate to actual sales, the income
and commission from these sales are already considerable.
Maturing in the business will teach a broker the ways of
cultivating and screening referrals to further improve sales and
growth.
Therefore, we should understand what most successful realtors
and brokers know -- that Real Estate is a business of
relationship. Regardless of the current external or economic
conditions, the most adaptable method of generating ready
revenue is through building a real estate business by developing
relationships to cultivate referrals.
Several strategies or techniques can be used to build a strong
referral-based sales business. But when you look closely, all
these require that you stay in touch with your network
regularly, preferably once a month. It would be most helpful to
plan out different methods of maintaining contact with your
network on a monthly basis. The different ways of keeping in
touch are: personal visits, telephone calls, handwritten notes
or short letters, periodic newsletters, news and updates through
email, client thank-you cocktails or parties, sending postcards,
sending birthday/special greeting cards, organizing
house-warming events, promos or contests. The best practice is
to try combinations of these contacting techniques, tailor-fit
to your personality and the background of the particular
contact. As well as staying in touch, you need to be mindful of
the following aspects of your referral business:
-Organizing contact files by priority
-Creating and maintaining a network management system
-Studying the best way of asking for referrals
-Not using standard all-purpose solutions
-Setting your goals and planning a budget
-Memorize figures and numbers
-Organize your time
-Hire an assistant
-Engage a business coach
The real estate business is also a customer care business: take
care of all your referrals and grow your real estate business by
getting more real estate leads.