I’ve been a fully licensed real estate salesperson for 3 months and I thought it would be interesting at this point to share my thoughts, experiences and insights. Valuable, I hope for others who may be thinking of embarking on this career path and also potentially a valuable reflection piece for those already established in this industry.
The fact is real estate is tough. There is a saying I remember from years ago and echoed at a recent training session “Real estate is simple, but by no means is it easy” – it is true; if a little overly simplistic. The fact is real estate in 2018 is a detailed process-based business with a high degree of legal requirements and obligations, more so each year. As I stated in an earlier article tracking the process of studying for the Certificate in Real Estate, there are 30 Acts of parliament that are studied on the course and all potentially have a direct impact on this process and need to be understood and adhered to by all agents.
However, long before you ever get close to talking to a buyer or seller and providing any form of service, the life of a newly licensed real estate is all about building a profile and making an impression so you can be seen at least as relevant. It’s all about building a brand. This is so key. The hard truth of this industry is that there is no shortage of real estate salespeople. Nowhere around the country is currently underserved by a real estate agent; and in the main cities there will be tens of capable, experienced and competent agents ready at the drop of a hat to list a property for sale. So this is the highly competitive marketplace into which you need to launch yourself and create a point of difference, and even before that, just get to be seen and known.
Real estate is a numbers game and in general terms the numbers (the odds) are not great. At any one time there are probably around 20,000 people in NZ actively involved in selling their home, that’s less than half a percent of the population – 1 in 200. However this group who are easy to target are not the audience you want to reach out to and engage in order to succeed to gain a new listing.
The target audience you want to address are the people in the stage before that. A very short window in which people who have possibly been looking to buy, get that confidence to say “right let’s going, let’s get our house on the market and let’s buy that new property” – I suspect that audience is fewer than 1,000 any one time and with 14,000 agents in NZ today ready to serve that market that’s a highly competitive environment for a new agent to take on well-experienced and established operators. Imagine trying to identify that target audience in your local area, you are talking about a needle in a haystack; 1 person in 4,700 – virtually impossible. What you have to do is rely on connections and engagements. That is why agents constantly reach out through networks, make new connections, market extensively and make proactive approaches to everyone in their local area. For unlike established agents, new agents have no referral network of previous clients to rely on for future work or referral.
In my case from the outset I chose to focus and leverage on two clear points of difference when compared to my well established local competitors. These were my analytical capability focused on local property market trends and insights; matched to my unique and extensive experience in digital property marketing. That was the easy part, the hard part was to communicate these capabilities and break through the paradigm that sees people use the same agent time and again or rely on agent's presence (existing listing stock) as the arbiter of the decision of which agent to use.
As I will highlight in a forthcoming article this decision making process in selecting an agent, based on a survey I am currently undertaking is heavily skewed to established agents.
To substantiate my analytical capability of the local property market I am writing and publishing a hyper-local property report for Devonport each month. I maintain a detailed database of property listings and sales, enabling me to publish this report early in the month. This initiative is already bearing fruit with a growing subscriber base for the full email version of the report which enhances my brand awareness and my role and is supplemented through the publication of the abridged report in the local fortnightly local paper The Flagstaff.
However passive marketing is as ever, a slow build. The massive hurdle that needs to be overcome to really kick-start an agent’s career is getting a listing; this is the mark of credibility. However the ‘chicken and egg’ conundrum kicks in – how to get a listings without having the credibility of a listing? This is where the numbers game comes back into play. You need to try a myriad of initiatives to see if somewhere, something bears fruit. As I described it the other day when sharing experiences with my fellow Bayleys newbies – it’s like growing crops, you have to sow masses of seeds and tend and nurture the ground, feed and water and eventually shoots will arise – it takes time, patience, fortitude and tenacity.
Here is a selection of the initiatives I have undertaken to date.
- I held an local event with Bernard Hickey invited to speak about property and the economy. An excellent foundation with over 60 attendees
- I personally door dropped over 500 flyers for Bernard’s event
- I distribute my monthly property report to properties on the market. Sure these properties have an agent, but if the property remains unsold I want to make sure the vendors know of my presence should they decide to change agents in the future. This I see as classic reciprocity, I share the value in my report which has real contextual relevance and thereby establish my brand credentials
- I target local streets where recent sales and listings have been active and communicate through personalised letters to all home owners with my property report and insight as to the local market dynamics. There is well know fact that properties tend to come onto the market when those around them are listed - a strange correlation that I think needs investigating!
- I target private sellers offering my experience and advice on marketing, seeing if I can be of assistance to build trust and hopefully a future listing if they stumble in the process themselves
- I contact owners who are undertaking renovations to discuss latest online valuations and the potential value-add of the work they are doing
This is sample of the tactics I have employed to date. To this you can add digital marketing through Google Adwords, Trade Me advertising, Facebook promoted posts. All focused to drive traffic to my personal brand website which I have tweaked regularly as I have reflected on what I can do to trigger the right engagement with my prospective target audience. I've also had produced a personal brand video so as to allow people to evaluate me as a person.
So what success so far?
– well as of today there is no listing with my name on it.
However there are germinating seeds which I am confident are soon to blossom. I have a client who will sell their home, however my task is to find them their next home which is challenging, but exposes me to the world of being a buyers’ agent which is a valuable experience. I also have three further clients for whom I am working to find them their next home and hopefully from that I may gain another listing or two. I am also working outside my home area when helping people as a buyers' agent which is surprising and valuable.
As I have said it is a numbers game. I should think that over this first 3 month period I have engaged and contacted over 250 people in my local area directly, plus an unknown number through other marketing. I’ve already invested over $12,000 in real cash in this new business of being a self employed agent which does not take into account the cost of my time everyday I work in this business, nor the cost of the time studying for the course and certificate.
The brutal fact is that more than half of all agents do not remain in the industry past 6 months, I am at the 3 month stage. I am sticking with it, I can see the future and I am confident that I can establish myself in this industry and deliver a professional service that is respected and valued. I’ll keep you all posted with future articles in the coming months.
and by the way...
I almost forgot this. If anyone tells you or you suspect that establishing yourself as a new real estate agent is a lifestyle choice, then tell them politely from me - if you are prepared to let that lifestyle consumes your every waking moment 7 days a week with no hope of a holiday then they clearly they are open to a new form of lifestyle.
Sure I choose to work where and when I like, but every moment you are not thinking about where the future business will come from, you will be worrying about where that future business will come from. Just some advice!