The Expert Factor |
By Denise Lones
The Lones Group
AN ABSOLUTE NECESSITY FOR YOUR BUSINESS
It never ceases to amaze me how many real estate agents work in the industry every day, yet don't take the time to be an expert in anything. They do not use what I call "The Expert Factor," possibly the key tool for your business on which all your success rests.
What is "The Expert Factor"? It's the willingness to be more than just a "real estate agent." It's the dedication to being a true Expert.
"Generalists" are aplenty in the sea of real estate agents. But to excel in this business, you need to be an expert in two things-real estate and your specific real estate niche.
In my classes, I often ask agents, "How's the market in your area today?" In a room full of a hundred people, I invariably get conflicting answers that are half-hearted attempts at regurgitating something they "heard" last week-not solid answers based on research they did at 7a.m. today.
It still surprises me how few agents are expert enough to talk about what the market is really doing. The reason is because they haven't taken the time to collect the specific statistics and numbers to back up their opinions. In order to know the market, you have to know the numbers. And not just today's numbers. You have to know the past numbers, the present numbers, and the future projected numbers.
Here's the sad truth: Most agents are too busy on a day-to-day basis to add research to their marketing task list. That's why I've spoken so many times about automating your business-having systems in place to take care of all that day-to-day stuff so that you have time to do your research and become an expert.
Systems are the solutions. When you have a walk-in, you have a system (complete with forms and procedures) to help your new potential client. When you do an Open House, you have a system in place so you're not up at 6 a.m. getting everything ready. When you make a listing presentation, you have a system that you know so well you can pull it out two minutes before you get there. Having such systems in place keeps you from getting bogged down so much that you don't have time to become the expert that you need to be.
The key reason that doing the research is so important is that when you speak numbers, you impress people. Even if they don't completely understand what you're talking about, the very fact that you mention a "17.4% decline in property value from the south corner of Lot 12 to the northeast corner of Lot 34" shows that you're somebody who's going to find out the proper information for them.
People like numbers when it comes to real estate transactions-or at least people who understand numbers. Because most people don't understand numbers. They want YOU to be the "number person" for them.
And please stay away from wild speculative predictions. Nobody can predict the future. Short-term trend projections are valuable, but don't assume a property will "increase in value by 50% over the next twenty years". You just don't know. There's no way you can predict that.
But you can look at trends and say, "Within the next six months, it's safe to assume that property values in your neighborhood from Elm Street to Poplar Avenue will remain consistent in the $450,000-$500,000 range."
Experts are rare. Be rare. Do the research. Be able to rattle the following facts and figures off the top of your head:- How many homes sold in your niche community this year.
- How many homes sold in your niche community last year.
- Average number of real estate sales over the last five years.
- Average days-on-market number.
- Average listed sales price ratio.
- Appreciation rates neighborhood-by-neighborhood.
- Foreclosure rate.
- Demolition rate. (Why do you need to know this? This gives you an idea of how many new homes may be constructed in your area.)
- Number of new homes, old homes, and condos in your area.
- Population-to-home sale ratio. (Important because it clearly shows the demand for housing in your area.)
I know it sounds like a lot of work, but most of this is available from the MLS anyway. It's not back-breaking digging for gold in a trench. It's just a little brain work that takes a few hours. And once you do it the first time, checking it every day will be easier because you know exactly where to go.
When you know all this information off the top of your head, you truly impress your clients. Your confidence level when sitting at their kitchen table will be supremely evident to them. This can do nothing but help you make more money.
And not only should you be an expert on all this, you should be an expert on your particular sales niche. If luxury homes are your niche, know everything about luxury homes. Know the brand-names of the gold-plated faucets. Know the types of counter top granite and expensive imported Italian tile. If condos are your niche, know all about condo construction. Know how the condo associations assess fees and maintain the property. Know the differences between a home mortgage and a condo mortgage. Know about the pitfalls of renting condos.
And know every single listing price, final sale price, and days-on-market for every property that sold over the last five years in your niche market.
It's worth it to know all this. Put "The Expert Factor" to work in your business and you'll be amazed at the results. You'll STAND OUT in a sea of real estate generalists.
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