The strategies of the top-earning real estate agents

The strategies of the top-earning real estate agents
Jennifer DukeDecember 7, 2020

On Friday, there was a significant turn out for Ideas Exchange 2014 in Melbourne, an event looking to share ideas on the real estate industry and boost returns for real estate agents. It appears that the 600-odd in attendance were there to find out one thing: How to be successful as a real estate agent. Success, in this context, was largely about increasing commissions to above $300,000 and being renowned in an area.

Of course, there's no one answer to this question. We've compiled the recurrent tips that came from presenters at Ideas Exchange, including Nelson Alexander's James Keenan, Ray White's Matt Sims, Compton Green's Adrian Butera, Gary Peer and Associates Gary Peer, Hockingstuart's Karen Vogl, Marshall White's James Connell, Barry Plant's James Hatzimoisis, Belle Property's Tim Foote, Williams' Katie Smith, Jellis Craig's Andrew McCann and Fletchers' Jason Salan.

  1. It's about the people, not about the buildings

    The strongest theme from every presenter was that succeeding in real estate is far less to do with the physical property itself and far more to do with the people and relationship building. With about 3% of the population transacting (either selling, buying or both) at any one time, with many to become part of this 3% at some point, it's crucial that real estate agents become someone's agent "before" they need one - in the manner that you may have an accountant before actually needing one. This, specifically, was the topic of Adrian Butera presentation, which looked at how to build relationships within a community ahead of time so that when someone does need a real estate agent, they pick you.

    It may be charitable giving, being personable or having 'stories' to share that put you on mutual ground - but succeeding is far more about being successful with people. Similarly, negotiating and getting on side with the prospective client and buyer is crucial.

    Foote pointed to a situation where he made the mistake of bringing in high pressure tactics to a fairly well-known businessman in Sydney, after a delay in the signing of a contract, who then reacted unfavourably and did not end up buying. When playing in the upper end of the market, he reminded agents that they'll be dealing with some of the best negotiators in Australia and it's worth keeping this in mind.

    Part of building relationships is touching base with those you know or have spoken to. A crucial part of maintaining relationships, this leads us in to tip number two.

  2. Have systems

    A CRM is crucial for every real estate agent these days. While it was specifically noted that technology wouldn't be a point of discussion (everyone has a system that works better for them), it's the way this is used that is crucial. Following up with those in these systems, and contacting them regularly is crucial.

    It was mentioned that the best agents tend to have over 1,000 people in their system.

    In fact, an expert explained that he once bought a Porsche, some 17 years ago. Since that time, the person who sold him the Porsche has called him regularly, perhaps once every six months, to let him know about new models. He said that if ever does want to buy a Porsche again, then this is who he will buy through.

    However, systems extend beyond this. Setting up an accountability buddy and a written-down system of KPIs for yourself can be crucial. There should be a required number of people to call, to list and actions to carry out daily to reach the overall goal.

    Whether this is have an accountability buddy, you need to set targets - and big ones. Write it down and follow up. Don't miss your meetings and keep the structures for each day. Success, in this context, is measurable.

  3. Timeliness

    You need to be telling people what they need to know immediately. If a property sells down their street, don't be waiting until the next week to let them know - be timely and informative. You need to have access to this information.

    Don't leave getting in touch with a buyer until they've heard news from someone else. For instance, let them know as soon as the contract is conditional, don't wait until it is unconditional to inform them. Show the respect to your clients that demand timely information. If they don't answer their phone, a text will do.

    Similarly, don't leave other clients waiting. If you are launching an open home, Smith reminded agents how much buyers hate lining up to be admitted to view the property. For anyone who has tried to view several homes on one day, they should be fairly sympathetic to this. Be efficient, and do things when you say you will do them.

  4. Look and see what other agents are doing

    Smith sends a bottle of wine with the image of the property on it, and her business card, on the one year anniversary of their house purchase (even if they weren't her clients!). She also writes a number of handwritten letters each day to send to clients.

    Other agents get inspiration from viewing other agents' open homes and seeing if there are ideas they can bring into place. Another sends out vouchers to local cafes.

    Don't be afraid to use other agents' ideas and put them into place. If you want to be the best agent in your area, on any criteria, then you need to know where other agencies sit.

  5. Leverage off the skills of others

Build a strong team around you. Whether it's the idea of an 'accountability buddy', a strategy favoured by Keenan, or a PA (which was heavily recommended by almost everyone on stage who note you should not wait until you're at the commission level you are aiming for before snapping up a good personal assistant), or just choosing a team at your agency if you are a principal, it's crucial to use the skills of others. Do not fear that they will do better than you and show you up - successful agents know that a rising tide lists all ships.

Learn from each other. If something works, use it. If it doesn't, ditch it. Be flexible, agile and ready to try new things to secure listings and boost your sales.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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