A Real Estate Broker’s Share

The trend is for more of the top realtors to employ assistants to handle the more menial tasks or compensate for skill sets where the realtor has a weakness. This allows him or her to concentrate more on the aspect where they can provide greater benefit i.e. closing the sale. This allows the team to process more transactions and earn more in commissions. Systems are the backbone of these teams and enable all the team members to work together efficiently.

So what is a system? In this instance a system is a set of tasks that fit together to complete a given objective. You can define a system for almost anything. For example you could write a system for making breakfast:

1. Get the newspaper
2. Cook the eggs & bacon
3. Make the coffee
4. Set the table

In this example you could assign the four tasks to four separate people. Each task could be defined in more detail so that a stranger could perform the task and the end result would still be satisfactory. However, if even one of the tasks is missed or poorly done then the end result will be disappointing.

In real estate the tasks are usually very simple but there are usually a lot of them. Missing some steps due to the pressure of work or just poor discipline can have a drastic effect on the final income. Also, real estate salespeople are generally not renowned for their discipline. They prefer to be more intuitive, outgoing and people focussed. Therefore it is common to have checklists, computer systems or office managers to ensure that all the steps have been completed.

Example : Buyer enquiry system

Enquiries from potential buyers can come from a variety of sources including people simply walking into the office and asking for a specific property. The agent needs to work with each potential buyer and look after their needs. He or she needs to make the buyer feel special and that there is no need to go elsewhere for real estate services. This needs to be done in a proactive but reassuring way. That last thing that should be done is scare the person away by over servicing or being too pushy.

Each agent will develop their own style and will eventually develop a pattern that works for them. A typical system for managing the buyer enquiry might look like this:

1. Complete a buyer enquiry form. Usually a paper form filled out by the agent whilst talking to the potential buyer.
2. Conduct a search of possible properties for the buyer.
3. Take the buyer to inspect the possible properties and sell one of them if possible.
4. Gauge the buyer reaction to the properties and build a profile for the kind of property that will be suitable.
5. Enter the buyer details in the client database and schedule a trail of follow up actions based on the assessment of the buyer and his or her likelihood of purchasing in the next few weeks.
6. Same day - send a letter thanking the buyer and providing details of the properties seen and confirming the preferred property features for future searches.
7. Every week. Call the buyer and discuss the details of other properties coming onto the market. Try to arrange some more inspections.
8. Every month. Send a copy of the office newsletter.
9. Every three months. Send a copy of the suburb profile with updated sales and new listings during the period as evidence of sales activity.
10. Every three months. Visit the buyer and discuss how he values your service and whether he wishes to continue. You may then decide to change his details and the nature of your follow up campaign based on his comments.

Typically the system would be setup for a set period. For instance if a person wanted to buy a new investment property sometime in the next 12 months then you would probably assign a system based on 12 months duration. Then there would be a set number of follow up actions required, each with its own date etc. A system like this simple example would have 78 distinct actions that need to be completed.

When done well, these follow up systems build a trusted relationship between the clients and the agent. That in turn leads to a strong referral business.

Many real estate agents manage an area, or farm, consisting of over 500 people as potential sellers. Sometimes up to 2,000 people. The number of long term potential buyers, depending on the market, could be in the hundreds at any one time. Therefore it is apparent that a successful agent soon builds up a large list of daily actions and must be extremely efficient to stay on top. Writing the details in the diary is simply not going to provide the follow up necessary.

Please refer to Selecting and Using a Real Estate Database for more information.

Systems, tools and effective teams are the way forward in real estate sales today.