The Power of Routine

Having a daily routine and following it establishes the consistency and accountability necessary for you to be successful in your business. Build a good routine and everything you do each day will get results.

To structure your daily routine, first establish a time to wake up in the morning and the time you go to sleep at night. Once you know that, then you know how many productive hours you have in your day. Your next step is to prioritize your most important tasks, starting with prospecting. Whether you arrive at 9:00 am or 4:00 am, your main priority when you get to your office will be to get on the phone and start calling people as soon as you know they are awake. Around that, look at what is happening in the marketplace, especially new listings and sales. This will help you direct your prospecting for greater results. Also think in terms of scheduling up to three 45 minute call sessions per day, and set a target for yourself – say 16 to 24 calls resulting in 8 to 12 connections and 1 to 3 appointments.

You should also have a structure for your phone calls that addresses the three things your prospects will want to know:

Who are you?
Why are you calling them?
What can you do for them?

Address these questions directly and you will have their attention, because you will be speaking to them from their point of view.

Having a routine includes scheduling around work to meet all your daily personal needs. Set a time for breakfast, lunch and dinner, and make sure you honor those times because you require rest and fuel at intervals in order to stay sharp and on top of your work. Also maintain an exercise regimen, because you really do need to be fit and strong to do your best work. Remember, too, that regular exercise helps keep your stress level low.

You should also plan a weekly schedule and devote each day to a specific task around prospecting. For example, Mondays can be your day to do open for inspection callbacks. Tuesday, concentrate on calling potential sellers. Wednesdays do your 10-day callbacks. Thursdays, call past clients. And Fridays, focus on calling buyers about upcoming auctions and opens. With all of your work scheduled you will find you don’t have to waste time and energy juggling tasks and thinking about what needs to be done next.

One more significant reward for planning a routine, sticking to it, and working with greater intensity is that when you do go on holiday, you get an 8 to 10 week holiday, and you won’t need to think about work the entire time you are off. Because you follow a well-planned and balanced routine everything has been taken care of, so you can relax and enjoy your well-deserved vacation knowing your business is solid.

I hope you’ve enjoyed today’s Coaching Tip and I look forward to seeing you again next week.

The Importance of Market Knowledge

One thing that will really set you apart from other agents is your level of market knowledge. No one knows more about this than Shannon Whitney of BresicWhitney.

Shannon says, in order to be a great agent you need to go through as many of your competitors’ open for inspections as you possibly can. This is the best way to know what is selling in your market and for what prices. This is also the best way to learn the details of properties that add value for buyers, such as the view from a top floor vs. a bottom floor, access to golf courses and other areas of interest, and how details like these influence pricing in various locations.

Whenever you are not conducting your own open for inspections you need to be going out and looking at other open for inspections. This is an ongoing process because the market changes constantly and it is vitally important for you to keep current on those changes. Maintaining timely and thorough market knowledge helps you to price your own stock more competitively, and also increases your expertise in advising and negotiating with your clients. Market knowledge includes volume of transactions, sales prices, and activity in the different sectors of your market. Market knowledge establishes you as a trusted advisor to your clients. Your competence in this area will gain you loyal clients as well as new business.

You may be tempted to simply view other properties online, but there is no substitute for actually walking through a property. You need to see details and experience the nuances that make a property more attractive to buyers in order to make the best evaluation of how pricing is influenced by those aspects. The more accurate you become at evaluating pricing on an ongoing basis, the more accurate you will be in pricing your own properties for your best possible sales. It is better to set market trends than to merely follow them, so train yourself to become a market leader. Good market knowledge drives active market momentum, and that momentum will grow your business.

I hope you’ve enjoyed today’s Coaching Tip, and look forward to seeing you next week.

The Million Dollar Mindset and Scalable Growth

Do you have a “million dollar mindset”? That’s great! But – Are you working in a million dollar market?

You may have the right attitude and work ethic to make 100 sales a year and reach a million dollars in sales – but your market may not be big enough to accommodate you, even if you had no competition. There is a way to reach your goals, though, through planning for scalable growth. But first you have to know the numbers for your market before you can expand beyond them. We call this the “size of the pie.” A lot of agents base their projections on a farm area of around 1000 homes. You have to look deeper, though, and see what percentage of those homes actually sell per year. It’s the number of sales that actually defines your marketplace. And your expectations must be based on calculations of how many properties are in your area, how many of those sell every year, what is the average sale price, and how much of a fee you will earn per sale.

In order to work towards producing a million dollars in fees you will begin with a 10-month calendar, because that allows for 2 months of holiday per year – for you and for the market. Within that 10-month framework you will build your plan for systematic scalable growth. This will take you to your goal in manageable increments that work with your real market situation. You can’t start out aiming for 100 sales a year if your market only supports 50 to 60. So you start out aiming for a milestone of 30 sales. Once you reach that and maintain it you will need to hire an assistant to do all the basic administrative tasks so that you can focus on prospecting, listing and clearance. Now you can stretch up to 60 transactions a year. When you reach that milestone, hire another assistant so you can continue to work your way to 100 sales per year. With a good system in place, you can teach that to your assistants so they can reliably and consistently provide the support you need from them.

Successfully reaching your incremental goals through planning and following through on this scalable growth plan will build your reputation as a go-to real estate agent, and that will bring in more business for you.

I hope you’ve enjoyed today’s coaching tip. We look forward to seeing you again next week.

Why Sticking To A Plan Works

Some aspects of success in real estate are universally basic and necessary. Recently the four finalists for our Australia’s Changed Agents Awards gave presentations at our Real Estate Blue-Print Conference. Not surprisingly, all of these agents did the exact same basic things that allowed them to radically improve their business.

The first thing each of these agents did was to commit to taking their business seriously. They basically removed their safety nets and backup plans, decided that this is their career for life, and did the necessary work to make it all happen. Next, they evaluated their existing skills and upgraded them. They learned what they did not know, and fixed what needed repair, starting with structuring the listing presentation. The third thing each agent did was to hire an assistant. They each realized that they were wasting valuable time doing mundane office tasks that kept them from doing actual real estate work – prospecting, listing and selling. By hiring an assistant to do the office tasks, the agents could then spend all their time doing real estate.

The overall winner of the Changed Agents Award, Simon Perry, succeeded in taking his business from $36,000 to $360,000 within a year. He did this by becoming an outstanding listing agent. When you have a lot of listings, some of those are going to sell. The more you list, the more sales you will realize. Simple.

All of the finalists for the Award had a plan. They set goals. They set up schedules for accomplishing those goals, for implementing new operations, reinvesting new income into the company, and scheduled vacation time. Most importantly, they stuck with the plan and worked with it long-term. They decided where they wanted to be in a month, a year, even five to ten years; they wrote it all down and made a commitment to follow it.

It is vital to have vision and clarity for the future of your business. If you don’t have an idea of where you want to go, how are you going to get there? Know what you want to achieve, set short-term goals to move you forward step by step, and watch your business expand and prosper.

Here at the Josh Phegan Company we’d love to help you get a great start toward success in your own real estate business. Please contact me if you’re interested in training or coaching with us.

Let's get controversial…

Negotiating fees with clients is a necessary part of your business. It is much easier to set your fees and justify them if you are confident of your worth. Ask yourself what you are doing relative to your competition that sets you apart as a client’s best choice. What are you worth in your marketplace, and why?

You should know how your competitors set their fees, how market regions differ, and how much some of your competition may be undercutting you. How is it that some agents may charge as much as 4% on a sale, while others charge as little as 1%? Where should your own professional worth be set on that kind of scale? It may seem like the difference between, say, 1% and 2% is small – but in reality 1% is half of 2%. That’s a 50% difference, not just 1%. Your client would not agree to sell their home at 50% less than it is worth – why would you agree to accept half of the fee you should command?

First, understand that the less time spent negotiating fees, the less of an issue it has to be and the more quickly you can move forward with the sale of the property. Make your case for your fees quickly and convincingly.

You know what you are worth, but if your client can’t see the difference between what you and your competition offer, then they won’t want to pay you more than they could pay elsewhere. So how do you demonstrate your value to your client?

Before even mentioning your rates you should be able to demonstrate why, if all fees were the same, your client should choose you over any competitor. What would make you the better choice if money was removed from the picture? One example would be to demonstrate your access to buyers – as in, how many potential buyers you can produce to see the property – by documenting recent open for inspections, total number of buyers you meet there, and how many of those buyers you can send through the client’s property even before marketing begins.

Keep in mind that clients are driven by two simple concepts: Convenience and Safety. How quickly and easily would they like to see their property sold, in minimal time and at a great price? And can they trust you to handle their sale capably? This is where your track record comes in, because it is solid evidence of what you have done successfully over time – your sales percentages, list and sale prices, days on market, marketing costs, your auction bidding record, etc. You can also compare your records with your competitor’s records to demonstrate how much time and money you will actually save your client as opposed to what they would likely lose by choosing a discounted fee elsewhere.

Make sure you have solid current tactical documentation, because that could make a 25% to 50% difference in the fee level you can justifiably command. It could mean an extra quarter of a million dollars a year for learning how to successfully negotiate for the fee level you deserve.

I hope you’ve enjoyed today’s Coaching Tip.  If you have ideas for other topics you’d like to see as a Coaching Tip, please feel free to email me: josh@joshphegan.com.au.

They won't buy it if they don't know it's there

It is important to know what marketing means to you, because your own beliefs about marketing will determine how effective it is for you and your clients. If nothing else, you should understand the vital role marketing plays in selling properties, and how that works. At the core, it really is pretty simple.

Marketing is really all about making buyers aware that your property offerings exist. They won’t buy it if they don’t know it’s there. It just doesn’t get any more basic than that. And in order to make sure your marketing is seen by as many potential buyers as possible, you have to make it easily accessible and visually attractive, and be consistent with making it available. Multiple mediums – print, video, email, Internet, etc. – will get your offerings out there. Making them appealing will get them noticed. Reach and frequency of marketing is also vital. Reach is simply how wide an audience you reach, and frequency is how often you present your offering. Once you understand the importance of marketing and the elements involved, then you will be able to communicate that importance and process to your clients in a convincing manner.

Keep in mind that you don’t need to sell all of the marketing that will be necessary to your clients during the listing presentation. Go easy, ask lots of questions and listen to the answers they give you. Build your relationships and a foundation of trust first, and then in a week or two your clients will be far more receptive to your informed marketing recommendations for them. You should also put together some visible, tactile printed and Web-based examples for them to see and touch, and interact with. Simplicity is key: Present three marketing packages, show your most expensive and elaborate marketing option first, and then stairstep downwards in price from there. Once they experience the effectiveness of the higher quality presentation they won’t want to step backwards very far.

Also explain to your clients how you use your database to bring in the first prospective buyers more quickly, then describe how immediately effective a video is that’s readily available on the first page of a Google search, and also cover the necessity of press-based support, signage, photography, etc. Finally you can tell them how you use indicators of interest – i.e. numbers of inquiries, numbers of inspections, requests for copies of the contract, offers made – to monitor how well the property offering is doing in the marketplace.

The process involved in vendor paid marketing is one of the most important skills you must learn as an agent. I hope you have a better understanding from this overview, and will join us again for next week’s Coaching Tip.

How to grow and work with assistants

When you get really good at doing what you do more people are going to want to use you. As more people want to use you it means there will be demand on your time than ever before. So how do you really grow a great business as an individual sales person and really get that level of momentum and traction that you need?

The first thing you’ve got to do is you’ve got to know the milestones for growth. Inside of the Australian real estate industry there’s a couple of milestones that are really important. The first one is writing over $300,000 in gross fees. Once you’ve done about $300,000 in gross fees and you’re turning 30+ transactions a year on an average fee of $10,000 per property that means that you’re now starting to get enough momentum to put on an assistant. You, plus an assistant is a great place to be. And usually we’ve seen people with an assistant write anywhere up to 60, 70 transactions a year. So somewhere in or around that $600,000 to $700,000 mark before they then put on their second assistant to then grow their business well and truly over a million dollars in fees.

It is possible for an individual agent to do that number of transactions on their own but they’re really going to be owned by their business. Without having someone else, as part of the team, there is a lot of leakage through not really following through on his or her systems and processes.

If you’re ready for growth then putting on an assistant is a natural, landmark step for you to move to that next stage.

When putting an assistant on you need to think about:

• What are they going to do for you?
• How are you going to work with them?
• What does success look like for you both? And how will we know when we’ve achieved it?
• How do you get the most level of productivity?

Putting on an assistant is one of the most important things that you’ll do, but you’ll need to make sure that you really know how to work with them. Most agents tend to take their foot off the accelerator, when in fact you need to put on the accelerator at double as soon as you put on the assistant.

The great thing about putting on an assistant is that you can choose the type of work that you want to do. You need to be out there and in front of clients and the more that you do that the more income that you will generate. You can have an administrative-style assistant who’s just going to help you purely from an admin perspective, or and assistant that can even prospect, and at best, list. Imagine a system where you built your business based on some really scalable and simple systems and then you’ve got yourself to a point where like literally you could teach the entire listing and prospecting process so you could have other people out there in the market for you.

What does your database look like?

Your database is one of the most vital elements inside of your business. Whether you have been in the industry for 30 years or are just starting out, understanding how to categorise and evaluate your lists of buyers, sellers and clients can really maximize the growth of your business.

The largest category in your database is Buyers. This includes buyers who are also property owners. Some of them are likely landlords of properties you manage. You want to use your database to regularly keep in touch with these people. In order to make that process most efficient, you want to maintain a current database, which means maintaining only currently active buyers in that Buyers category. But you don’t want to lose track of those people completely. Instead, buyers who are not actively buying need to be moved to a different category.

When a buyer completes their real estate transaction they can usually be entered into a new category inside your database called Potential Sellers, which also includes all the people who attend your open for inspections and who own property in your areas. Your long-term goal is to get to know all of the potential sellers in your marketplace. Potential sellers will eventually move into a new category called Market Appraisals once you actually meet with them, see their property, and build enough of a relationship with them to know something about their reasons for selling. From there these people can become your Current Clients.

You need to know how many current clients you can comfortably and effectively work with without overloading your capacities. One way to gauge this is by average days on market. If your days on market tend to be longer, then you can carry more stock at a time. If you turn over properties more quickly, then you can afford to carry less stock. In either case, you always want to list more stock than you sell.

The final category inside of your database is Past Clients. These are the people you have actually bought and sold property with. They can be the most valuable people in your database because they become clients for life. Your Past Clients category is one that you want to keep growing year after year.

You will use all these database categories to measure your progress because the success of your business is reflected in the size and quality of your database. It’s a good idea to review the numbers of buyers, potential sellers, market appraisals, current clients and past clients every week and compare those numbers with the past week to keep up with what is happening with the growth of your business. It all comes down to the simple fact that working with those people is what turns them into your buyers, sellers, and clients for life.

What does your database look like?

Your database is one of the most vital elements inside of your business. Whether you have been in the industry for 30 years or are just starting out, understanding how to categorise and evaluate your lists of buyers, sellers and clients can really maximize the growth of your business.

The largest category in your database is Buyers. This includes buyers who are also property owners. Some of them are likely landlords of properties you manage. You want to use your database to regularly keep in touch with these people. In order to make that process most efficient, you want to maintain a current database, which means maintaining only currently active buyers in that Buyers category. But you don’t want to lose track of those people completely. Instead, buyers who are not actively buying need to be moved to a different category.

When a buyer completes their real estate transaction they can usually be entered into a new category inside your database called Potential Sellers, which also includes all the people who attend your open for inspections and who own property in your areas. Your long-term goal is to get to know all of the potential sellers in your marketplace. Potential sellers will eventually move into a new category called Market Appraisals once you actually meet with them, see their property, and build enough of a relationship with them to know something about their reasons for selling. From there these people can become your Current Clients.

You need to know how many current clients you can comfortably and effectively work with without overloading your capacities. One way to gauge this is by average days on market. If your days on market tend to be longer, then you can carry more stock at a time. If you turn over properties more quickly, then you can afford to carry less stock. In either case, you always want to list more stock than you sell.

The final category inside of your database is Past Clients. These are the people you have actually bought and sold property with. They can be the most valuable people in your database because they become clients for life. Your Past Clients category is one that you want to keep growing year after year.

You will use all these database categories to measure your progress because the success of your business is reflected in the size and quality of your database. It’s a good idea to review the numbers of buyers, potential sellers, market appraisals, current clients and past clients every week and compare those numbers with the past week to keep up with what is happening with the growth of your business. It all comes down to the simple fact that working with those people is what turns them into your buyers, sellers, and clients for life.

Secrets of Agent Marketing with Matt Hayson

There are actually two kinds of marketing you need to know how to do well: property marketing and agent marketing. In today’s Coaching Tip video, Josh Phegan will be talking with Matt Hayson of Cobden & Hayson about getting results with both.

Most agents already know how to do effective property marketing, which focuses on presenting the property itself in an attractive manner. This includes photography, video, floor plans and written copy that involves the customer personally and emotionally with the property. Agent marketing should also be part of your property marketing as it is actually more important to your business overall.

Agent marketing is about promoting your business as a brand. You may be presenting a specific property, but also include an emphasis on your agency’s handling of it. You should also be directly presenting your agency regularly and consistently throughout the marketing calendar to keep your name and business fresh in clients’ minds. Consider that past appraisals and clients are not often targeted for continued marketing, but they have been proven to be a valuable source of new business for you. Also look beyond traditional email distribution to options such as direct mail newsletters and online videos that demonstrate your knowledge and effectiveness as well as offering accessible information to previous and potential customers.

It is consistency and currency, plus a solid marketing plan for both property and agent marketing, which will put you in the forefront with your real estate business.