explains why it is easier to get paid while working with listings
than with homebuyers. 926 words.
PAID ON LISTINGS
High producers know that regardless of what goes on in their
personal or professional lives, SOMEONE has to sign a listing
agreement with them every week. Real estate is primarily a listing
business, not a sales business. Top producers never run away
from sales, but they primarily invest their prospecting time
and energy in finding someone who wants to sell property.
But for some reason, many low producing agents - particularly
those new to real estate - allow themselves to focus on the buyer.
Maybe they think in terms of "I'm going to sell real estate;"
"Which house can I sell you?" "If I'm selling,
...I must need a buyer to work with!" It is also important
that when you are brand new in real estate, there is an existing
inventory of listings you can tap into. (Hmm, got plenty of listings
there, what I need is a buyer.) But there is no standing inventory
of buyers ready and available to you.
Out of a need to generate a commission quickly, new agents often
presume that selling a home will put them closer to a payday
than listing one/getting it sold/THEN closing the transaction.
Looks are deceiving! By devoting all their time to finding a
buyer who will buy, they usually go LONGER (sometimes forever)
without getting paid than if they had listed the property of
anyone other than a friend or family member.
There are many, many Realtors® who make well in excess of
$100,000 a year and who specialize in listings. But you probably
could not name more than three or four who earn as much and who
specialize in working with buyers. So in real estate, WHERE'S
THE MONEY? In listings, naturally!
· It takes less time to work with sellers. Add it up.
How much time do you spend preparing for a listing presentation
and making the actual presentation? All together, it's probably
somewhere between three and five hours total. That includes a
short time doing a market evaluation and maybe previewing a couple
of specific properties ahead of time (which you would probably
be doing anyway with your other previewing), plus the time you
spend actually inside the house making your presentation. However,
the time spent with a buyer is measured by days and weeks, not
· It's easier to set goals while working with sellers.
You can't say, "My goal today is to have a cash buyer walk
into the office and ask for me." That's a fantasy, not a
goal. It's difficult to say, "My goal is to have someone
transfer here from another city and buy from me." The money
in referrals is in SENDING them, not RECEIVING them. However,
it's useful to say, "My goal today is to contact five FSBO's,
five Expired Listings, distribute twenty-five of my business
cards and knock on thirty cold doors." These initiative
activities are ones that are more likely to put you into contact
with a seller than with a buyer.
· Getting paid by sellers/clients is more certain than
getting paid by buyers/customers. If you got paid by every buyer
to whom you showed property regardless of who they bought from,
would you make more money? Essentially, that's how it works with
client/sellers. Once you get the listing contract signed, you
get paid regardless of who shows it and who sells it.
· You get paid more frequently and consistently as your
listings sell than as your buyers buy. That's because in working
on listings, time and the numbers are on your side. If you are
working with buyer-customers, you only have the chance to get
paid on the days you work directly with them, perhaps two to
five days a week. Time and energy limit you to only working with
one or two serious buyers at a time. But when you take a listing,
it can sell on any days whether you are working or not. There
is nothing unusual about having twenty or more listings in your
personal inventory at one time. Do the math: What if half of
your two buyers bought in one month? What if half of your twenty
listings sold in one month? Which side of those two closing tables
would you want to be on?
· For every 100 listings you take, you'll make an additional
25 sales with no extra work on your part. It just happens; top
producers have known that for a long time. Some of your sellers
relocate in the same area and you sell them another house. Your
yard signs are good advertising. Your reputation builds faster
when you specialize in listings. But just because you make a
sale, it is not necessarily true that the buyer will then list
· Your inside track on selling your own listings leads
you to having more closings than listings taken! All by itself,
this is ample of justification to specialize in sellers/listings.
Consider this example:
You take Listing #1. A co-op broker sells it.
You take Listing #2. A co-op broker sells it.
You take Listing #3. A co-op broker sells it.
You take Listing #4. You sell it yourself.
You take Listing #5. You sell it yourself.
You take Listing #6. You sell it yourself.
You take Listing #7. It never sells, ever.
You take Listing #8. It never sells, ever.
Altogether, you took eight listings; two of them never even sold,
three of them you sold yourself. Total: Nine closed sides on
just eight listings taken! A smart sales person could look into