Selecting A Farm Area

Real estate is very territorial. Having a license to sell real estate in Alabama permits one to sell anywhere in the state but common sense tells us we can’t provide quality service from one end of the state to the other. A person can have license in multiple states but that doesn’t mean they can provide quality service from their home town. I live in an area that only a few miles separate Florida, Alabama and Mississippi. Some people hold a license in each of those states. You can’t sufficiently service a county, not even a city within a county.

Farming Works

I am referring to a territory that a sales person will work within the boundary. This is considered their farm. Let’s narrow the field and focus on real estate sales. Farming is an older and more complete term for prospecting for new clients to work with. A few years ago the term “Prospecting” was replaced with the term “Lead Generating.” These two terms don’t encompass near as much as “Farming.”

Real estate is very territorial. Having a license to sell real estate in Alabama permits one to sell anywhere in the state but common sense tells us we can’t provide quality service from one end of the state to the other. A person can have license in multiple states but that doesn’t mean they can provide quality service from their home town. I live in an area that only a few miles separate Florida, Alabama and Mississippi. Some people hold a license in each of those states. You can’t sufficiently service a county, not even a city within a county.

If a person really wants to be successful in selling real estate, they should select an area of a city, or a subdivision to be their territory. They are going to farm this territory by focusing all their efforts on this territory much like an agricultural farmer tends to his crops. When concentrating on a small area, one can make it a priority to learn everything about that particular area. [Read more…]

Hiring an Assistant

ARE THESE YOUR EMPLOYEE'S?

Last week I included the 80/20 rule in reference to the amount of time a successful real estate agent should spend in generating new prospective clients. I stated that one should spend 80% of their work day contacting new leads and allot 20% of the day for taking care of all other business activities. Early in a real estate career, 20% of a work day is plenty time to accomplish other business activities but once production increases, 2-3 hours a day is not enough time for listing and showing appointments. When this happens one will usually spend less time in lead generation. This is a huge mistake. Securing a client to represent (lead generating) requires more expertise than a showing appointment. Lead generation is not looking for today’s sales opportunity, but it is securing future business. If you take time away from lead generation, you are reducing future sales opportunities.

If the proper preliminary work is done, and you have had the proper conversation with the clients, any licensed person can show a property. The property speaks for itself. Let’s look at a perfect scenario with Joe representing Mr. & Mrs. Jones. [Read more…]