Real Estate Sale:
Without Goals, There Is No Future
That You Achieve Your Goals Doesn't Depend On The Circumstances; It depends on you.
Selling real estate is more a matter of planning, organization and attitude, than preparation or training. I am not saying to real estate agents that training is not important. It is; But planning, setting appropriate goals in your work is the only thing that will get you where you want to go. In other words, to get sales and improve your bank account.
The best agents and consultants approach real estate sales and their work in general from the perspective of personal planning and organization and this leads to setting realistic goals and knowing how to achieve them. A task that does not consist of sitting down one morning, writing down some goals to achieve, making some promises and wishing for the best.
Many real estate agents start their real estate careers by setting the wrong priorities. To know how to multiply, you must first learn to add. This simple logic is often forgotten when you want to attract clients and / or sell properties. It's best to set goals in phases.
Why is it that some well-trained real estate agents, having excellent properties for sale, in a demanding market fail to sell more than they could sell? When we analyze the causes in depth, we discover that a lack of proper planning has caused them to set the wrong goals.
Setting goals is not as easy and linear as many real estate agents like Al Hartman believe. This also has to be learned. In the real estate sale it is not enough; not even recommended, having only sales objectives: "this month you have to sell these 3 properties, ..."; "This year we have to bill an average of $ 10,000 a month ..." These are the typical objectives that are established in a real estate agency. What is the problem with these lenses? They are poorly designed.
| The Real Estate Sale. Defining Some Terms.
Let's start by defining some necessary terms:
1.- Plan: Decide what to do. Decide where you want to go, why you want to go precisely there. Set goals so they are clear and achievable.
2.- Schedule: Decide when to do it and assign the necessary resources to achieve it, bearing in mind that your most important resource is time.
3.- Organize: Intelligently apply the available means, according to the most appropriate method to achieve the proposed objectives.
Those of us who have experience in real estate sales always say, and even preach, that real estate sales begin long before capturing the property or the client. It starts with your planning and goal setting. If you set them wrong, you will have trouble selling well and fast, regardless of the properties you put up for sale, your real estate business or the market demand.
To make our dreams come true, we must be willing to leave our comfort zone, (change habits), learn new skills, and set goals. How are the objectives set properly in the real estate sale? In phases, following a process and covering all areas of your work.
Establishing by phases means not only knowing the result we want; but how we get there step by step. For example, Juan is an independent real estate agent with a portfolio of 12 properties who, after calculating his monthly expenses, analyzing the market and evaluating his time and work, begins to draw conclusions. After this analysis, Juan realistically establishes that he must bill a minimum of $ 7,000 per month for the next 6 months, in order to bring home a decent salary and bill more and more after those 6 months.
Okay, now what Juan needs is to set priority goals to achieve that goal. How many calls should he make a day? How many new properties should he add to his portfolio? How many clients should you attract per week? … and so on.
“In summary, in real estate sales the ultimate goal is the sale of a property, but this goal is reached when other goals are reached first. Sometimes it is planned well, but programmed poorly or organized with priorities in mind. Planning, scheduling and organizing are different and related tasks.
Before pointing out what Juan should do, let's see what might happen if Juan, instead of being an independent agent, worked in a real estate agency.
| The Real Estate Sale. The Objectives in Real Estate Agencies.
Everything would be a bit complicated for Juan if he worked for a real estate agency. Here are several factors that Juan does not control and that in many cases will prevent him from reaching his personal sales goals.
Among the most recognizable are the inappropriate organization of the agency, the personal interests of the older agents, (called habits and influence), and the possible inappropriate marketing budget to achieve the proposed objectives.
But this is not the worst thing that can happen to Juan in his agency. What really makes this sector unbearable and frustrating is when the agency nurtures the spirit of competitiveness among real estate agents. Let's see who sells more! And who sells more? He usually sells more; the most aggressive, who likes to walk the edge of ethics, morality and legality; the one who has been with the company the longest and knows all the shortcuts, the one who is not supportive of colleagues ...
And what does the boss, the owner, the manager say, what does he do? Nothing. In the end, it is he / she who takes part of the profits from each sale and who will always be in an advantageous position against the team. They express the milk of the cow using the phrase healthy and professional competitiveness. Oh my God! Is this professionalism?
In these circumstances it is difficult to set adequate personal goals. Here it is the agency who must set goals and generally does not set goals for each agent based on a common goal. I know perfectly. The main activity of my job as a coach is helping agents and agencies set the right goals.
“Looking at how many agencies work, it is clear. If you want to own your future as an agent, work as an independent real estate consultant ”.
| How to Set Objectives in Real Estate Sales.
It would take a long explanation on how to set goals and how to use your resources to achieve them. Therefore, I will indicate the general concept to follow to establish objectives in real estate sales.
1.- Analyze your market. With this analysis you must decide the number of properties that you are able to sell in 6 or 12 months. Let's say that in the next 6 months you are able to sell 8 properties. Indicate approximately how many you can sell each month.
2.- Classify the Properties. Those 8 properties, classify them by price range: For example: A: - from $ 80,000 - $ 150,000 B.- $ 150,000 - $ 400,000 and C.- $ 400,000 to $ 1 million.
3.- Establish your Income. Then, based on the market, indicate how many properties you can sell of each type and calculate your income.
4.- Real estate acquisition. Calculate the properties that you must capture from each group per month. Keep in mind that you must sell 70% of the properties captured. If you want to sell 8 properties in 6 months, you must capture at least 12 properties in 8 months.
5.- Marketing. Next, you must calculate the number of information requests that you would need for these to become visits and from there into sales. For example; You would need 160 requests for information so that, let's say 40 people visit your properties and from there you get 8 sales. This is the most difficult part when setting objectives, because these objectives must be established by weeks, have a budget to achieve those requests for information and know what means will generate this flow of requests.
In short, this is how real estate sales goals are set. Of course, each point above takes time to plan and schedule and involves some activities to do to establish them well.
Have you ever wondered why the best real estate agents on the market, (20% of them), work independently? Why they plan well and do not depend on others to achieve their goals. Have you ever calculated how real estate agencies and franchises are structured? 80% of the agencies in the market, (in any market), have an average of 4.5 employees.
According to the figures that we manage in this consultancy since 2013, out of every 10 real estate agents in the market, (recognizable), 6 work independently, (without public office and without full-time staff), and many of them only they sell about 4 properties a year.
When agencies or franchises say that most real estate transactions go through their hands, we must put this fact in perspective. If we compare the total number of transactions carried out in almost any market and the number of transactions carried out by agencies, you will realize that, in real estate sales, independent agents sell quite a few properties. They could sell many more if planned better.
Selling real estate is not just about selling, and expert and successful real estate agents know this very well. I hope the following sentence helps you to be more successful in this sector:
"Sacrifice yourself a few years doing what others are unwilling to do, and you will enjoy the rest of your life as others never can."