Working in real estate demands a lot of time and effort, but offers substantial financial rewards for those who become successful. Managing those demands can be an agent’s biggest challenge. Success in real estate is possible with these four principles.
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Real Estate Is Business
Many people picture a successful realtor as a friendly person who is pleasant to work with, knowledgeable, and almost always at ease. However, reality paints a more complicated picture. With all of the pressures to make contacts and finalize sales, the real estate business can be challenging. Always remember that as a realtor, your business is just that—a business.
Do not begin your real estate career without considering all of the normal demands of a business. Like any company, you will need to manage expenses, handle communications, and track cash flow. You will need to market your business and make informed decisions on which marketing strategies work best for your success. Moreover, this is a full-time job, and doing it well requires a full-time commitment.
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Marketing for Real Estate Success
Success in real estate hinges on the constant creation of new contacts and relationships. Therefore, marketing yourself and your business is key to connecting with new potential clients.
Your marketing strategy will require networking and building relationships with the right people in the industry. Brokerage relies on connections, primarily with potential clients of course, but also with professional services related to the business side of real estate. As a realtor, you’ll be marketing yourself to buyers and sellers. You will also build relationships with accountants, lawyers, and investors who can help your business run smoothly.
Marketing yourself as a real estate broker requires consistency. Target your marketing in a neighborhood with high potential for growth that appears to be overlooked or on an area poised to undergo gentrification. Keep your marketing on-point.
Marketing expenses should be a constant item in your budget. A portion of every sale or rental should go back into your marketing budget. Don’t waste time and money by frantically trying every marketing approach you can find or dream up. Spend your money wisely with focus and intentionality.
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For example, while old-fashioned networking luncheons are still viable in today’s world, real estate agents and investors are increasingly connecting online via new tools and social networks. Jake Marmulstein, CEO at Groundbreaker, states, “While at its foundation the real estate industry doesn’t change much from year to year, new technology is beginning to disrupt certain aspects of it, like relationship management and marketing.” Success in real estate demands embracing the disruption of new marketing methods while keeping your message consistent.
As your marketing succeeds, you will see an increase in the communication you receive from potential buyers. Your number-one rule for that communication is to respond!
The faster the response, the better. If you can’t take the call right away, or answer the text instantly, do so at least before the day is out. Once your business grows, you may be able to hire help to handle the communication flow.
In the meantime, it’s up to you to demonstrate to both your current and potential clients that you are available and ready to help them. As with most businesses, clients are drawn to businesses that respond to their needs. Responsiveness and great communication skills show competency and reliability, providing further comfort to your clients and strengthening your relationship with them.
A note about social media communications. Social media can generate a steady stream of feedback from your posts and advertising. Use tools such as immediate responses to ensure that every connection receives an acknowledgment. It is easy to lose track of everything in the shuffle, which could cost you a potential client. Stagger your promotions so you’re not dealing with a potential mass of responses all at once.
Budgeting for Success in Real Estate
The core of any budget is the desire to properly manage income and expenses. Ultimately, the budget keeps expenses lower and income higher, ultimately growing the bottom line. A business budget is as crucial as a personal one, perhaps even more so. Real estate brokerage may not always maintain a steady level of profit even when everything is going well. Be sure to prepare for the slow times, especially when business is going well, by implementing a strict budget.
When the sales are coming in, the contracts are closing, and cash flow is high, it can be easy to think the good times will last forever. That may not always be the case. Properly allocating your funds in the good months will allow you to reduce the stress that comes with the slower months. This will also ensure that you have the money to market and grow your business throughout the year. The key to any good budget is to remember to set money aside when you can. Always take a portion of each sale and assign it to cover costs down the road.
Real estate brokers and agents face all the challenges of running a business. Developing contacts and good relationships with clients will be much easier when you manage the business side efficiently. These tips will help you keep both sides of your business balanced as you pursue your career.