So, you’re ready to start your career as a real estate agent. First off, congratulations! You’re now a part of an industry with great potential for growth and uncapped earning potential. But there are currently 1.4 million realtors in the United States, and competition can be tough. Aspiring realtors must understand that many new real estate agents don’t make it through their first two years. Why? Most newly-minted real estate agents tend to underestimate their expenses and overestimate their starting income while struggling to network effectively.
To ensure long-term success for your new endeavor, you’ll need to understand the basics of real estate 101 before you jump in. Kick off your career on the right foot with these concepts that every successful realtor must know.
1. Lead Generation Tactics
When it comes to real estate 101, nothing is more crucial than generating leads.
In the real estate industry, lead generation is the process of attracting new customers and converting them into satisfied buyers. And given the cutthroat nature of the real estate industry, it’s crucial that up-and-coming realtors do everything in their power to ensure that prospective buyers choose them over the competition.
So, how do you choose the best tactics to support your efforts and ensure that you have a steady stream of qualified leads? Typically, realtors use lead generation tactics that include the following:
- Social Media: Developing a solid social media presence will significantly increase the number of qualified leads that you’re able to generate. Create profiles on LinkedIn, Instagram, TikTok, and Facebook. Post high-quality content consistently and keep your target audience in mind!
- Cold Calling Companies: To stack the odds in your favor, consider working with a team of experienced cold calling professionals. They are well-versed in developing cold calling scripts that thoroughly explain the benefits of working with you, along with countering common rebuttals. Cold calling professionals are experts in the art of engaging conversation and reaching untapped audiences for more qualified leads.
- Leverage Video Marketing: Currently, 73% of homeowners are more likely to list with a real estate agent who can create video content for them. In fact, MarketingSherpa concluded that videos attract two to three times more visitors to a realtor’s website and doubled the amount of time said visitors would spend on the website. For the best results, create shareable listing videos, client interviews, and informational videos to widen your sphere of influence.
2. Main Drivers of Property Value
The next must-know concept for real estate 101 is property value. Before you jump into this industry, it’s essential that you understand the factors that drive or undermine the value of each property in your portfolio. This knowledge will help you price each property appropriately and emphasize its most important features to close a sale.
Location
The location of a property can make or break a sale. Of course, some of this is subjective. Your clients want a property that’s in the ideal location for their needs, which may mean that the property is near family members or their job. But in the general sense, properties with a higher value will boast proximity to good schools, lucrative employment opportunities, and shopping or entertainment. For many prospective buyers, the right location is more important than the qualities of the home itself.
Upgrades and Updates
A property that has gone through extensive home improvement will be worth much more than a home of the same age without renovations. However, the upgrades that increase value the most are highly dependent on the property’s location. For instance, this home improvement value calculator concludes that a renovated basement in Portland increases the value of a property by 13%. In contrast, an updated basement in Atlanta only increases the property value by 2.5%. Renovated bathrooms and kitchens tend to increase the value of properties across the board, while adding amenities like pools or wood floors tend to increase the value of higher quality homes.
The Age and Condition of the Home
In most cases, newer homes sell for a higher amount than older homes. We can attribute this to the fact that elements like plumbing, the roof, electrical fittings, and appliances are less likely to require renovations in newer properties. Many qualified leads are willing to shell out big bucks for a move-in-ready home.
Furthermore, most buyers include an inspection contingency in their contract to avoid the chance that they’ll need to make any significant repairs after closing on a home. Consider providing your clients with a home maintenance and repair checklist to show your trustworthiness and educate buyers of factors to be aware of before buying or selling a home.
3. Buyer’s and Seller’s Markets
Our final concept in real estate 101 is the difference between buyer’s and seller’s markets. Because even if you’re selling properties in immaculate condition, the ratio of properties for sale versus the number of buyers in your area can drastically impact your success as a real estate agent. You’ll have to evaluate the market to craft your strategy. In what’s known as a seller’s market, there are more buyers interested in purchasing a home than there are available homes on the market. In contrast, a buyer’s market occurs when there are fewer qualified leads and a higher amount of homes for sale.
If you’re trying to sell property in a buyer’s market, it increases the likelihood of negotiations regarding the home’s price. In addition, you’ll need to put a little more effort into attracting buyers due to increased competition.
When attempting to close a deal during a seller’s market, the entire process will be much easier. The average time that it takes to close on a deal shrinks, and properties sell for a higher price than they would otherwise.
Call Motivated Sellers
Once you master the basics of the real estate industry, the market is your oyster. And if you’re interested in increasing your chances of success, our team at Call Motivated Sellers is here to help. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more leads.
To learn more about the services we offer, simply contact our team today!
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