Marketing Tips For Realtors

It's a tough market out there.  Nothing is selling.  So how do I survive as a Realtor?

Many people became Realtors during the boom.  Things were easy; you got a listing, it sold in a week, and then you were buying the Beamer the next week.  But that was a fantasy that couldn't last forever.  Now the tried and true methods of marketing are coming back into play.  Time to get back to basics.

Do I Want Listings?
Yes.  Only if they are priced right.  The first thing you should be doing is research on the MLS.  Login once a week a look at what has sold in your farm area, and for what price.  Now you know what the true market price is.  Print out these sales and put them in your briefcase.  The next time you go to a listing appointment pull them out and review them with the seller.  If they agree to sell at the right price, take the listing.  If they are unrealistic, smile (don't burn a bridge) and tell them that you are reluctant to accept a listing unless you feel confident that it will sell.  Chances are that they will call you in 6 months.

Don't be afraid to walk away.  Your reputation is at risk.  It's like retailing.  You know that you can go to Walmart and buy items for less money than other stores.  You want to be known as the Realtor who has properly priced listings; not overpriced ones.

Who Do I Target?
It is hard for a seller to be flexible when they are upside down.  Your best bet is to approach people who have lived in their home for over 10 years.  They should have enough equity to be flexible.  People still need to move for various reasons.  They could be retiring, moving for business, or it could be an estate sale.  Historically these have been the reasons people buy and sell real estate; not as an investment.  Time to get back to basics.

Where Do I Farm?
Always go fishing where the fish are biting!  Go to the MLS and see what is selling and for how much.  That is where you should concentrate.  Usually people are buying for practical reasons; they are getting married, relocating, retiring, etc.  That is what you want to concentrate on.

The math.  Figure out how much you want to earn a year.  $60,000.  $100,000.  Then look at how much commissions were generated in an area in the past year.  Then take 10% of that.  If that equals a dollar amount that you can live off of, then that is the market to go after.

The next step is to study the area.  Learn abut the real estate, the government, schools, community information, etc.  Become an expert.

Marketing
There are 2 methods of marketing: direct mail and internet marketing. 

Direct Mail.  The best way to get listings is to do postcard mailings to your farm area.  You need to mail at least 1,000 postcards once a month.  Go to the tax rolls and download a mailing list.  Open it up in Excel and review it.  Mailings should go to the owner's mailing address.  This is not necessarily the physical address of the property.  You need to do a mailing at least once a month.  Out of sight, out of mind.  If you do mailings infrequently, people will forget you.

Web Site.  NAR statistic:  85% of all buyers and sellers first do research on the internet.  If you don't have a web site, how will they check you out?  If you don't have a web site how will you show up on the search engines?  The first thing a person will do when they receive your postcard or see your ad will be to go to your web site and see if you are a professional.  If you check out, they will call you.

There are several things that should be on your web site.  First are listings; people want to see what's available; they want to compare prices, look for bargains.  You also want to put Community Information on your site.  This includes Just Solds in the neighborhood, government information, condo board minutes, etc.  Anything that will capture peoples attention and keep them coming back.

Advertising your web site.  There are tens of millions of web sites out there.  So how do you get people to see yours?  First you need to place your web address on all your printed pieces.  Then you might want to consider Pay-Per-Click advertising on Google.  This will drive hundreds of people, from all over the country (or world) to your site.  It is very powerful.  Place important information on your web site and then send emails to your "sphere of influence" with a link to that web page.  The more traffic you drive to your site, the more calls you will get.