Last week, I referred to 12 steps in relationship to what we call a “normal market”. On our site, there is a report that I have written called Mike Ferry’s 2019 Market Report. I’d like you to download it. I’d like you to read it, study it, understand it. If you have questions, send me a note and I’ll try to explain it. This report can be used in a variety of ways, most importantly to help you understand what 2019 is going to be all about for you and I as residential real estate people. That’s really important. Sit down with your broker, your manager, if you have a coach and discuss the report and its effects (positive and negative) on you and what you’re trying to accomplish.
Mike Ferry’s 2019 Market Report
I had a conversation about ten days ago with one of our coaches Christen Hamilton out of northern California, and she read the report and said, “Mike, can I use it in more ways than just for myself?” Well, this report can be used if you’re on a listing presentation and you’re working with a seller that’s unrealistic in pricing (hard to believe that you could have a seller unrealistic in pricing). Read it, understand it, and show them some of the normal parts of what they’re experiencing to help them price it. It could be used for price reductions. Very important because if you’re looking at a price reduction, which in today’s market there are more and more price reductions than we’ve had in 5-6 years, this can back it up and take the emphasis of you being the tough person on the price.
Then I said to Christen, “this is a great report to share with your database, your past clients and centers of influence. If you’re doing the kind of job which we expect you to do with them, then of course this report comes in handy because it’s information that will influence your database in a very positive manner in relationship to you. We want you to look good, strong, and professional in the eyes of your database.
Cultivating Relationships
I picked out 7 points for us to discuss today in relationship to your past clients and centers of influence. I think the biggest thing that I try to stress is that if you’re not working that database that is two faced (your past clients and centers of influence). Centers of influence being people you know, who understand you, understand the business you’re in, generally like you, trust you, and some cases love you (if they’re friends and family).
These are people that should be a good source of business for you as long as you are a professional salesperson. The past clients, of course, have already had an experience with you, and if you’re not contacting these parties all the time, naturally, someone else out involved in lead generation could be talking to your past clients and centers of influence. Getting referrals from them. Getting possibly a transaction from them.
I don’t think there’s anything more discouraging for a great real estate person, for yourself, than to be driving down the street and you’re near one of your past clients that you sold a home to and you see a for sale sign of a competitor. And then you go, “darn it, how could they do that to me?” And the truth is, we didn’t follow up. We don’t follow up because there was a problem, so let’s look at 7 thoughts in relationship to your database that I want you to think seriously about between now, December 10, and the end of this month because this is the best time to contact all of your database. “Thank you, it’s been great working with you this past year, it’s been great communicating with you. Is there anything I can do to help buy or sell for anyone you know?”
1. Past Clients and Centers of Influence
Treat your past clients and centers of influence with respect, because they’re an asset that allows your business to grow. Every business has certain assets. You’re a real estate entrepreneur, you have a business that you own. Whether you do a handful of deals or a lot of deals, you have a business you own. A business is always built on the respect you have with and from and that respect you give to the people you deal with the most. Therefore, I always say to every good real estate agent, like yourself, treat them with a high level of respect, give them valuable information when you communicate and talk to them. Yes, they may be your friend or relative, but everyone talks about real estate, everyone understands real estate, everyone communicates about real estate. You want to be the real estate resource center for your database.
2. Reestablishing Contact
Don’t Hesitate to Call the Ones You Haven’t Spoken to in a While. Whether it be a neighbor or a friend (maybe there was a falling out) or a past client because we know the last couple years towards the end of the transaction it’s not uncommon for a transaction to get a little sideways, a little screwed up. It happens all the time. Title companies, mortgage companies, escrow companies, insurance policies, something could go haywire. The other broker didn’t communicate, the buyer got hesitant, or you didn’t do your job right.
You have to be talking to those people. I have a simple script, okay. You call a past client where there was a problem, you haven’t talked in 6 months. You call, they answer the phone, “Hi this is Mike. I owe you an apology.” They say, “what for?” And you respond, “Well, we had some problems at the end of the transaction. I want to apologize.” They’re going to 99.999% of the time say, “oh don’t even worry about it.” And you’re right back into a normal conversation.
3. Have Real Conversations
We have to speak in person or on the phone conversations (Not text, not email, not a letter; actual conversations at their front door, on the phone) with all of them at least 4 times a year.
A real conversation. Now some of you will say that you text or blog to them. Give me a break. You’ll say, “They’re my Facebook friends. I contact through Facebook.” Watch, human contact creates transactions. I think most of you finally have gotten the message now that, yes, you could get a deal off Facebook. No questions about it, but the human contact, the human conversation, is what creates the transaction. Do this 4 times a year.
4. Four Points of Contact
You’re going to send them a personal note or postcard 4 times a year.
I have a simply opening, “Just want to remind you that I’m still in real estate. Who do you know that wants to buy or sell and let me give you some information about the community, the town, neighborhood about what’s going on.”
5. Clearing Your Database
If you’re not going to call them 4 times a year or you’re not going to send them something 4 times a year, expect the fact that they’re going to deal with someone else. So, take them out of your database. Quit fooling yourself, you don’t have 150 names, you might only have 70.
6. Energy and Enthusiasm
Always make these calls with a lot of energy and enthusiasm. The world we live in is, unfortunately, a negative world. If we can be very positive, excited, energetic, and enthusiastic in talking to the people that like you, love, trust you, have done business with you, that’s what they want from us all the time.
7. Database Cataloging
There’s a certain number of people in your database today (let’s say you have 400 names and there’s a handful – 10, 20, 30, 40) that would give you good, solid referrals every year.
So what I’m going to ask you to do between now and Christmas, is to go through every name. I don’t care if you have 30, 100, 400, or 4,000 names, go through every name. If you have a check mark next to a name, it means that person would give you at least one good referral every year. I’ll bet every one of us has either a handful or a couple dozen that would give you a referral all the time. With those people, communicate with them 7, 8, 9, 10 or maybe every month in 2019. These are people that are open and willing to work with you.
Mike Ferry’s 2019 Market Report
I want you to all download Mike Ferry’s 2019 Market Report. Print it, read it, study it, use it with your past clients and centers of influence. Use it on a listing presentation. Use it to get a price reduction. Clean up your database dramatically between now and December 31. It’s going to be a fun 3 weeks. Not only is it we have a holiday season, but it’s a fun 3 weeks because you’re going to be one of the few that’s working and doing deals. Thanks for today.
Mike Ferry is the global leader in real estate coaching and training. Watch Mike each week as he discusses a variety of topics to help real estate agents and brokers. Grow your real estate business by improving your mindset, developing your skills and creating a plan of action to increase your production!
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