Real estate agents: You can turn the next quarter into your best one yet by following this profitable and proactive plan.
4 rules to follow to earn $100k in 100 days
The median-home sales price in the United States is north of $400,000. That makes the average commission about $12,000. This means you need eight deals to gross $100,000 and about 10 to net $100,000. That’s about two transactions per month.
There are people who will absolutely be buying or selling real estate in the next 100 days. The only question is whether you will be the one to list (or sell) the next homes in your market.
When you list two homes per month, you will automatically attract buyer business as well, so focus on listings.
1. Contact both people you already know as well as those you don’t know
People you know are past clients, people in your sphere of influence and real estate agent referrals. People you don’t know are everyone else. Are you willing to speak with both groups to earn your $100k in 100 days?
2. Know where your business came from last year, plus this year to date, and keep doing what has worked
Consider doing more of what worked. If you had five transactions from repeat clients but you didn’t have a system to speak with your database regularly, how many more repeat clients could you gain this year by being more drilled down on that source of business?
3. Be consistent at the highest level
Keep doing what you’re doing and you’ll keep getting what you’re getting. If you want more faster, if you want to go to the next level financially, you must go to the next level with your skills, discipline and consistency.
4. Ask for help when you need it
Don’t waste time reinventing the wheel, sampling or trying things out. Get help from a coach or seek out a mentor.
12 proven lead generators to make $100,000 in 100 days
Remember the goal is to get to eight listings in the next 100 days, which will earn you $100k. Here are some sources of lead generation to tap into.
1. Your database of past clients and sphere of influence
Statistically, when you have regular and real conversations with your list, 10% will either do business with you or refer business to you every year.
What would happen if you committed to speaking with 100% of the people in your database in the next few months? Don’t get mad when another agent lists your past client if you’re not making the effort.
How many people in your database know what their home is worth in today’s market? It’s your job to let them know. If they knew they could get $X for their home, netting them $Y, what would that do to their plans?
2. Expired listings
Expireds are near the top of the list because these sellers want to sell and many have to sell. These are the listings you’re looking for! There’s been a big increase in expireds recently since most agents still had too-short listing agreements in anticipation of the hot seller’s market continuing. Aspirational pricing and competition from new construction has created more expired and withdrawn listings.
Expireds usually have the wrong price. Your comparative market analysis is much easier on an expired listing. Plus, the agent you would have competed against (the one they thought would get the job done and likely knew) is now out of the picture.
On an expired, the seller will correct negative feedback and reprice the home in most cases, creating a quick sale. The average days on the market for re-listed expireds is always very low.
3. New-build salespeople
These are the salespeople who sit in the builder’s model homes and write up all those new construction contracts. When someone builds with them and they have a home to sell, what happens to that lead?
This is a fantastic lead source, because you can have one new-build salesperson contact who sends you multiple leads per year. What if you had five new-build salesperson relationships?
4. For Sale By Owners
When the market is hot like it’s been for so long, there are always plenty of unrepresented owners who need your help. Most of them give up on the process if it’s not sold in the first two weekends.
There are luxury priced, unrepresented owners in today’s market as well. This is a great opportunity because many of them have not yet bought a home, so they could build with you or downsize/upsize and purchase with you.
A recent development since the market has slowed is the fact that many For Sale By Owners were first expired listings. They simply didn’t know what else to do, probably because an agent like you hasn’t reached out to them.
5. Open houses
It’s all about choosing the right house, promoting the open house, using good scripts and having relentless lead follow-up. You can spin this source up to a very predictable listing machine.
If you’ve failed at open houses before, you’re missing a key element of the system to make it work.
6. For Rent By Owners
Investors who own single-family or small multifamily units are an amazing source of new listings for you. This is one of the easiest scripts to learn and polish because it’s a simple business conversation.
If the home is vacant and for rent, might the owner rather sell it versus continue to keep it as a rental? Offer to do a free comparative market analysis so they can make an educated decision and see what that does to their plans.
Again, potentially one contact and multiple transactions. Maybe they want to re-invest in different properties with you or cash out their entire portfolio while prices are high. You won’t know if you don’t ask. You’ll also love this source because the contacts are easy to get.
7. ‘Spec’ small and medium-sized builders
This means they’re speculating that the house will sell. There are many iterations of this, but what is working for our clients lately is to identify buildable lots and take them to the small builder. You sell the lot and list the spec home, often bringing the buyer as well.
8. House flippers
Sure, they might sell the home on their own (refer to the previous For Sale By Owner point), but flippers often will list with you so you can bring a buyer to them before they’re actually finished with the flip.
This helps them because they can flip more homes in less time. A bird in hand so to speak. And while you have it listed and they’re finishing it, the house generates more and more buyer and seller business for you. It’s a win-win for everyone.
9. Probate court
Not many agents prospect probate leads because they don’t understand it. Probate is simply the process of selling a home after someone passes away. The court appoints an executor of the estate who can then sell the property.
If keeping the home in the family is not an option and the executor(s) wishes to cash it out, that’s a listing. Sometimes, they’ll re-invest the proceeds in real estate; sometimes you’ll just sell that listing. Either way, they need someone caring and competent to get the job done.
10. Your professional sphere of influence
When was the last time your favorite lender sent you leads? When have you asked? Who do they know who is getting prequalified to buy right now and has a home to sell?
Stagers are also great to know because smart sellers call a stager first. Refer business to stagers and ask for leads in exchange.
11. Property investors
Join your local investors’ club through meetup.com or private Facebook groups in your town. You’ll know who’s looking for what property and which investors are likely to sell. This also gives you insider information about pocket listings, which can benefit your buyers.
12. Door knocking
This is not at the top of the list because it generally takes more contacts and time to win a listing, but it is still effective when you’re consistent.
Door knocking can help you become more comfortable speaking with people about real estate and, many times, you’ll be at the right place at the right time.
Before you go door knocking, choose your neighborhood wisely. Does it turn over much? What’s the average sale price? What’s currently active, pending and recently sold? What’s being built around the neighborhood? Is there new construction nearby?
Become the go-to neighborhood specialist and use good scripts at the door. Start with your own neighborhood since you already know it well.
Convinced you can list and sell eight to 10 homes in the next quarter? If not, why?
For many of you, you’re probably feeling comfortable with at least two or three of the 12 lead-generation sources above. Start with those and drill down to increase your contacts and your level of skill.
If you need scripts and skills, ask for help. Waiting is not profitable.
Once you’re getting results from two or three lead sources, it’s time to add the next one. You may even have dabbled in all 12 but haven’t taken each to the next level. Decide you’re going to earn eight to 10 listings in the next 100 days no matter what and execute the plan we’ve outlined.
You must be systematic, disciplined and consistent for any of these methods to work.
Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.