This is a five part series on a business building strategy. It will show you how to become the neighborhood real estate expert in your area. Whether you’re just starting out, or an experienced real estate agent looking for a way to improve your existing business, this in-depth detailed strategy guide will show you how to build a business from scratch. It touches on proven real estate marketing techniques such as real estate geographic farming, and takes it to a higher level leveraging social media and technology.
How to become the neighborhood real estate expert
In real estate, you’re either working with sphere of influence (or centre of influence) and a referral network, or you’re working a particular neighborhood or area. This series talks about establishing yourself as a neighborhood real estate expert in your area. We’re going to start from scratch. If you’re just starting out, or if you have been in real estate for a few years, and don’t work a neighborhood or area, this is for you. Follow along step-by-step and implement what you learn so that you can become a dominant agent in your area.
Work in an area you live in (or live close to)
When deciding on what area to work, it should be where you currently live, or an area you live close to. You’ll appreciate why when you get busy. If you’re living 20 to 30 minutes or further away from the area you want to work, it will become tedious when showing homes to buyers, or meeting with home sellers. Work in an area you currently live in. Or an area close to your home. It should not take you more than 10 minutes (15 minutes tops) to get to any point of the area you’re in.
It must be an area you’re familiar with
You should know your area inside and out. What homes are selling for. What kind of people live there. How much they earn. What kind of jobs they do. The local shops and businesses. The best restaurants in the area. Traffic. Public transit. Schools. Everything. Know it intimately. Know everything about it. Be passionate about your area. It will reflect when you talk to both buyers and sellers. They’ll know your level of intimacy with the area by the enthusiasm you have when talking about it. And even just knowing little detail such as a new restaurant, or a new park, will make a difference between you and a real estate agent who doesn’t know your area.
There has to be decent turnover in the area
No matter what area you work in, there has to be a decent amount of turnover. Meaning people are moving in. And moving out. If nobody is selling homes in the area you want to work in, there won’t be any business for you to earn a living. Start with 500 to 1,000 homes. If the turnover is 5% to 6%, 25 to 30 homes will sell in a 500 home area. And 50 to 60 homes will sell in a 1,000 home area. Next, set a goal for how much market share you would like to ‘capture’ or influence in the area. If it’s 10%, you’ll aim to sell 5-6 homes if your area is 1,000 homes. Calculate the average selling price and commission. Multiply by the number of homes you aim to sell. Is the income worthwhile?
Tomorrow we’re going to talk about how to plant the seeds in your area. We’ll look at three specific things you need to do to get started and gain traction. The steps will start to position you as the neighborhood real estate expert in your area.