Keys to Ultimate Success as a Real Estate Agent

The role of a real estate agent is highly essential to the success of any real estate company and the entire industry itself. This is because the agent is basically the bridge between the company and its prospective buyers. When we say prospective buyers, we are referring to the entire market that buys properties, land, houses and buildings. Without the efforts of a real estate agent, very little percentage of the said market will have the initiative to buy any property. No advertising campaign, company publicity and marketing project can replace the value of an agent who knows how to make multiple, monthly real estate sales and revenue for the entire company.

More often, real estate agents are also referred to as property “salesmen”. However, compared to the work of typical door to door salesmen or street peddlers, the job of a real estate agent is a little bit more complicated. The product that they offer is not some tiny package which can be placed in a box or delivered by mail. They are not selling consumables, such as food products and drinks which can be easily sold with little sales or marketing skills. The product that real estate agents sell demands more commitment from a customer. For example, buying a house is not an easy decision. Before a prospective customer can make a decision to buy a house, he or she must be fully aware of the features, advantages and disadvantages of the house. He must be fully convinced that he is making the right choice in picking that house, or else the time and money he intends to spend will all be wasted. It is therefore the real estate agent’s role to guide the prospective buyer into making the right choice and eventually reach a firm buying decision.

For the reasons mentioned above, the real estate agent should be highly trained, knowledgeable about what he sells, updated about the developments within his industry, and most importantly, should be skilled at face to face selling. This aspect of face to face selling is very essential because to be able to sell high priced items such as houses, lands and properties, a greater amount of buyer-agent rapport is necessary. While retail sales can be very impersonal, real estate sales is a lot more different. One sales transaction may take one week, one month or even one whole year, depending on the nature of the real estate property being sold. This would mean that it is normal for any real estate agent to meet the same prospect over and over again before they both reach a buying agreement. It is thus important to develop a friendly, positive relationship with the customer.

The real estate agent must be an aggressive salesperson and he must be flexible to different kinds of buyers. He must be able to talk on the same level with his prospects, instead of acting servile and inferior. There are many sales jobs that literally demote people from salespeople to mere order takers. In real estate, agents are not just order takers. They initiate the sale, meaning, they ask questions that probe and uncover the buyer’s needs. After discovering those hidden needs, the real estate agent puts himself or herself in a commanding position by giving the customer various options to choose from. He or she may also recommend options that best fit the client’s needs.

Perhaps the most difficult and exhausting job of a real estate agent is prospecting for new customers. Prospecting is simply the process of finding new prospects for the business. Without prospects, even the most skillful real estate agent will not make a single sale. While the company often provides good advertising to gather prospects, it is still the real estate agent’s responsibility to generate leads on his own. He must be familiar with various lead generation methods and be able to develop a huge list of potential customers. At times, a real estate agent may also opt to do his or her own advertising campaign.

There are a variety of available prospecting methods and strategies to choose from. According to Tom Hopkins, a great real estate salesman, there are two basic categories – referral and non-referral prospecting.

Referral prospecting is a very effective method because it allows the real estate agent to get referrals from his existing buyer’s list. The referrals are already qualified buyers because they belong to the same income bracket as the existing customer. Each time the agent makes a successful sale, he asks for referrals from the happy satisfied customer. The customer then gladly gives the names of some of his friends or relatives who might also be interested in buying a similar property that he has bought. He may even introduce the real estate agent to the referral. Most veteran real estate agents don’t do prospecting anymore because they have already built a huge referral base.

For starting or rookie real estate agents, there is no substitute to non-referral prospecting. This is the act or process of finding and approaching prospects that are not referred to the real estate agent. In this prospecting approach, the chances of making a sale are lower and the risks of rejection are higher. The real estate agent will have to deal with total strangers, which is the main reason for the high probability of failure.

One example of a non-referral prospecting method is “cold calling”. In this prospecting method, the real estate agent either acquires or buys a list of prospects and starts calling them one by one. This method is sometimes called “cherry picking” (Good, 1986), because it requires an agent to make a lot of calls before generating a single prospect. To be able to do an effective cold calling campaign, the agent must be determined, aggressive, has good phone skills, not a quitter and he must have a good list of qualified prospects. For example, calling a list of people who are looking for a house is much more effective than simply calling people from the yellow pages or the national street directory.

Another prospecting method that real estate agents often use is the “ten foot rule”. This means that the agent finds ways to talk to any person who comes within ten feet of him. With the use of personalized calling cards and leaflets, the agent initiates conversations with the strangers that he meets everyday. To enhance the agent’s chances of meeting someone who is qualified to buy a house or property, he makes himself available in places where his ideal customers will likely be found. Attending conventions, social events and joining clubs or organizations are all useful to the real estate agent because it gives him an opportunity to meet different kinds of social contacts who might someday become buyers, or may at least give a referral or two. In Tom Hopkins’ book entitled How to Master the Art of Selling, he said that to be able to constantly generate prospects on a regular basis, a good salesperson should be able to “talk to ten people belly to belly everyday”. (Hopkins, 1982)

There are hundreds of other prospecting methods. Modern technology has given the 21st century real estate agent a great variety of prospecting options. The internet and other such means can all be useful for anyone who is trying to generate new leads for real estate.

Finding prospects is one exhausting job, but approaching and making the initial contact with them is another task! Once the real estate agent finds or meets a good prospect for real estate, he must smoothly guide the prospect to the realizing the possibility of buying property. Using many possible approaches, the agent finds ways to settle an appointment with the prospect with the intention of showing him a sales presentation. To be able to do this, the real estate agent must uncover a specific need of the buyer, or if the buyer is not aware of the need, the agent must make him aware of it. If this need is not present, it is the role and responsibility of the agent to create that need and convince the prospect that he needs to own a real estate property. Qualifying, or the art of finding specific information about the customer with the purpose of determining whether he is a qualified buyer or not, is very important. There is no use of selling to a person who is not qualified. Some factors to be considered during the qualifying stage are ability to pay, ability to make a decision, size of family, and compatibility of the need to the product or service being offered or sold. Finding this information and putting them into consideration are still part of the difficult task of a real estate agent.

It is also the role of a real estate agent to stimulate buying desire. This may be done by presenting what he is selling in such a way that it appeals to the needs and wants of the buyer. It is the responsibility of the agent to magnify the strengths and weaknesses of the property he is selling, and to minimize the problems and disadvantages in the eyes of the prospect. In some cases, the prospect may not know exactly what kind of house he wants or needs, or he may have trouble in making a decision. At any event that a prospect finds difficulty in choosing what’s best for himself, the real estate agent is in a position to recommend a house or property that best suit the needs, buying capability and preference of the buyer. To be able to do this, the agent must be extremely knowledgeable about the various options that he can provide to the customer.

Familiarity with basic laws, policies and rules that apply to real estate will also be helpful to a real estate agent. However, he is not required to be an expert at these laws, policies and regulations. His main expertise should be the ability to close sales. In many real estate companies, the total revenue heavily depends upon the monthly sales turnover generated by real estate agents in the field. Simply put, applying mastery of the sales process is one of the greatest and most important roles of real estate salesmen.