If every one of the 15,000 real estate agents in New Zealand got an even slice of market share (and we all know they don’t), there would only be 5 or 6 sales available each year for every agent.*
That’s barely enough commissions to earn the average New Zealand salary for someone who only works 40 hours a week!
Recently I was chatting about the drop in listings to the owner of several Auckland real estate offices. He commented that the 90/10 rule is now in play – 10% of his agents now have 90% of the listings – and the one thing these people all have in common (which is what we here at Downright Brilliant are all about) is they have learned the secret of investing in, building and maintaining a network of homeowners who know, like and trust them, then automatically get in touch when it’s time to buy or sell.
Are You Hoping to “Hit the Jackpot” or Fishing in a Well Stocked Pond?
Creating a continuous flow of new listing leads is not about searching here there and everywhere, hoping to “hit the jackpot” and find a homeowner ready-to-sell now. It’s about positioning yourself as the ever present, always visible, friendly and professional, local real estate expert among a fixed group of homeowners, whether that is your database or a geographical area, or both.
Dominating your market is about “fishing” for listings in a small, well stocked “pond” of homeowners with whom you regularly keep in touch in a way that is relevant and interesting, whether or not those homeowners are interested in buying or selling right now. When they are ready, you won’t have to go looking for them. They’ll come looking for you.
Throwing Away Potential Listings?
A few months ago an agent contacted me about an investment property my husband and I own which is adjacent to a large, well-known shopping mall. He was marketing the property next door and wanted to know if we had any interest in selling. He quoted some recent, impressive figures he’d achieved in the street and my interest was piqued, but not enough to sell. I asked him to keep in touch. Six months have passed and I haven’t heard from him. I can’t remember his name. I don’t want to sell, but what if I did? Big, lost opportunity. Wasted time and effort.
How to Increase Your Market Share
Unfortunately, no agent will ever get a “fair” share of the real estate market. Every listing you secure is a direct result of your previous marketing efforts.
To become part of the 10% of agents with 90% of the listings, you need to stop looking at what your competitors are doing – 9 out of 10 of them are doing it wrong. Think smarter, future proof your business. Build and strengthen relationships with homeowners you already know. Remain top of mind with a regular newsletter, flyer drops, phone calls and getting face to face through prize draws, sponsorship and giving back to your community. Build your own “pond” of homeowners to create a continuous flow of new listing opportunities…and enjoy your pie.
*Based on 1) REINZ statistics 91,212 residential sales in the 12 months ended November 2016 2) REAA statistics show 15,494 active licenses as at 30 November 2016.