Look at this reality.

• The average conversion rate for contacts to appointment for an agent 1 year or less in the business is 125 contacts =1 appt.
• If you make 5 contacts a day it will take you 25 days to get an appointment.
• The average conversion rate for a new agent appointment is 4 appointments to a sale.
• That means that it will take 100 days to get 4 appointments to get 1 sale.
• in a year there are 14.6 25 day periods.
• Divided by 4 = 3.65 deals a year.
• With an average sales price of 200k and 3% commission. That looks like $21,900 GROSS commission…
• then the split at 70% (this doesn’t include royalty and coaching fees) leaves you with $15,330. Oh and then take off 20% for taxes.
• That is a WHOPPING $12,264 net earnings on 5 contacts a day.

NO wonder people get out of real estate so fast.

Asking 5 people a day simply won’t cut it.
Lets do the same formula with the average agent 1-5 years in the business.
62 appointments to a contact.

• That is an appointment every 12.4 days of prospecting.
• = 49.6 days of prospecting for a sale.
• = 7.36 deals a year.
• = $44,160 in GCI,
• =$30,912 after a 70% split (not including royalty and coaching fees)
• =$24,729 after 20% taxes are paid.
• HELLO…..You might as well get a job at a retail store for 40 hours a week—would be a lot less stressful and pay the same amount, right?

In the SHIFT…Gary Keller’s 1st tactic is GET REAL GET RIGHT.
People….get real. and how you get right is get APPOINTEMNTS every day.

If you aren’t getting appointments weekly then you aren’t doing your job and so no wonder you aren’t getting paid. Quit getting ready to get ready. Get your mindset right, and go get the business with massive action. The systems will come…and besides, when you have massive business due to your massive action, you can pay someone to do the grunt work for you.

About two months ago, my next door neighbor convinced me to sign up to take an exercise class with her at our local Goodman Community Center. I agreed—and wondered if I was crazy at the time. The class is titled 20-20-20 and is a mixture of aerobics, strength training, and core work. All good, right? Here’s the catch: it’s every Tuesday at 6 am! But, seeing as I’ve become a morning exerciser, this is fine with me (theoretically).

Our first class was this past Tuesday. My muscles are still burning. I don’t think I’ve done THAT many squats since I was in labor, that many push-ups since I was 12, or that many high-intensity movements that early in the morning since, well—ever!

At one point, our instructor Johanna had us lean up against the wall, put our feet about 2 feet from the wall, firmly planted on the ground (back fully flush on wall), and then s-l-o-w-l-y lower our bodies so our thighs were parallel to the ground…and HOLD it. Seeing us all wincing in pain after about 30 seconds, our legs starting to shake under our weight, she shouted “keep holding…your body can do this…it’s all mental with this one!”

And here’s what I keep rolling around in my head: how much of our life is ALL MENTAL? I’d venture to say most of it, if not all of it. We can stretch to great lengths when we just stay focused and refuse to give up, give in, or plain stop. When we accept this idea as TRUTH, it’s amazing what can be accomplished, what can be felt, and what can be realized that is simply EXTRAORDINARY about ourselves.

As I was out for my walk/jog this morning, I decided to test this idea once again. I told myself “run to the corner of Fair Oaks and Milwaukee Street without stopping.” I focused in, zoned out, and tuned into my mind…my burning calves were talking to me, my hamstrings were strung, and my body (overall) was resisting…but my MIND was engaged and sharp and focused on the goal…and I did it! I was huffing and puffing, sweating like a pig, and feeling absolutely high. I now have the knowledge that I CAN do this and I will likely try to go a little farther next time.

So, I leave you with this thought: how might it transform your business—and your life in general, more importantly—if you just GO MENTAL on a regular basis?

BOLD is all about the power of mindset, about believing in YOURSELF and YOUR ABILITIES and then taking ACTION to make things happen for you. You can create the life you want through the thoughts you think and the actions you undertake. BOLD helps to keep you focused on that…plus, you get to do it with 39 of your closest colleagues, which is always fun and creates a great sense of camaraderie.

Here’s my thought: the first class is being held on June 29^th from 9-1 at the Crowne Plaza in Madison (East Wash Ave). It’s free. I’m told that participants are not going to be given a sales-pitch, that they will ACTUALLY be given 7 stunning and juicy ideas that they can implement right away to increase their business! So why not at least go check it out? If you’re still not convinced after attending this seminar then, okay…maybe it’s not for you. But why not at least GO CHECK IT OUT! Until you know what you are saying “no” to, it’s hard to say “no,” isn’t it? Besides, what if—just WHAT IF—you actually end up LIKING what you hear and believe it can help you TREMENDOUSLY to not only grow your little pocketbook but, more importantly, your MIND? That would be terrible, wouldn’t it?

See you there!!!

Are you working from your power place? What the heck is a power place, you ask?

Here’s how I think of it:

Think of a time when you were at your absolute best—you were not only soaring and doing well professionally and/or financially, but you were also feeling TOP of your game, smiling a lot, and knowing that you had found your rhythm, your flow in life. No matter what anyone did or said, you were unbeatable, unstoppable, and unflappable.  You were living in the moment, savoring every last juicy drop of life for all it sweetness.

Never been there before? Perhaps it’s time for you take a visit.

If you’ve never done so before, make a list/inventory of all of the ways in which you SHINE…that is, think of those things that come to you easily, effortlessly, and without much thought or difficulty. Think about the essence of who you are and what talents and gifts you naturally have. If you find this challenging, you’re not alone. Most people tell themselves that they “really aren’t good at anything” and that “there’s not much that’s my specialty.” What if you told yourself a different story? What if you actually BELIEVED in your strengths to such a degree that you began capitalizing on them on a DAILY basis? Read on.

For example, what if you used your talents as an artist to volunteer to help paint a mural on a worn wall in your community? What if you used your gift as a great chef to make delicious meals for a sick or infirm neighbor? What if you accessed your inner entrepreneur to help a non-profit raise more funds? What would happen to your BUSINESS and YOUR LIFE and the way you live it if you simply focused on what you are really GOOD at? What would that feel like? What would your impact on the world look like? What would your business partners and acquaintances say? What if you created your identity and your reputation from that starting point of strength? Powerful? Absolutely.  But too often, we focus on our weaknesses and ways to shore them up. And what’s insane about the human creature is that when we, as individuals, work from our strengths, we are much more likely to achieve greatness and, more importantly, live happy and fulfilling lives.

I call you forth with all of your gifts and talents this week to step into your life, embrace your strengths, and let your light SHINE. The world needs you…and you need to do this for yourself.

I attended the monthly International Coaches Federation of Madison luncheon today. The guest speaker was Miri McDonald, an Organization Change Specialist. She shared some insights with us about CHANGE—how difficult it is, how most people may “say” that they want to change themselves or some aspect of their lives and can’t/don’t/won’t, and how companies struggle to bring change about and make it really “work.” As business owners, we are faced on a daily basis with the task of making decisions—sometimes BIG ones—that will change the face of our business overnight. And, when faced with change, we get that “pit in the stomach” feeling that makes us want to vomit at times. That’s natural. So I often wonder, given all of the pain that change can cause, what really makes people change and, more importantly, how to do you make the changes LASTING?

I thought I would share with you some of the nuggets I took away regarding KEYS to change—either personally, professionally, or organizationally.

1. You must have a good case for change. What inspires you when it gets hard (and it always does)? It’s important to define this for yourself.
2. Commitment vs. compliance. Are you really committed to the changes you say you want to make? You have choices—make them wisely.
3. Change has to come from within—it cannot be prescribed on an individual. The person making the change has to WANT it; someone else can’t want it for you.
4. Connecting with a group of people or an individual that inspires and supports the change is critical. Get support systems to assist you in your change efforts.
5. Do the hard work. Consistently do what you say you’re going to do—OVER and OVER again. Just do it.
6. Re-frame your thoughts about the change you’re making—spin it into something positive that your mind and ego can get behind and believe in.
7. Measurement, accountability, and feedback. Without honest assessments, you’ll never realize the change you’re truly working toward.
8. Celebrate successes! Little wins along the way to the big goal are incredibly important to continue the climb and manifest the energy necessary to make the change LASTING.
9. (This one is my favorite, folks)—You must go and MEET yourself, really learn who you are and what you value. In other words—get to know yourself, in order to make REAL change.

It’s not always easy, but it’s always worth it!

“Talk to Me, Friends: Using Facebook For Generating Leads”

So many of us wonder if the time we spend on social media really gives us a return. The answer? See below. And take heed—make sure you’re utilizing your Facebook account in a way that really engages and PULLS IN your people!

Max Pigman, vice president at Realtor.com, who teaches social-media classes and shares tips on the Realtor.com Facebook page, said there are a lot of Realtors on Facebook, but a small percentage of them are actually making money from it.

He said that’s because a lot of them think they need to be on social-networking sites because everyone else is, but they aren’t creating a business strategy. That’s what he teaches them to do.
He encourages agents not to use Facebook just to talk about open houses and new listings.
“I have a friend who is a dentist and he doesn’t write, ‘I did another root canal,’ every day,” Pigman said. “You have to get strategic about what you are sharing.”

Instead, Pigman encourages agents to start conversations on Facebook about the state of the real estate market or even create neighborhood pages where they specialize that could come up in Google searches.
“It’s all about creating some sort of relevant information,” he said.
Besides Facebook, Pigman suggests agents share video tours of homes on YouTube, create a professional profile on LinkedIn, and search Twitter for tweets about real estate where they might find leads.
“I think social media itself is here to stay forever,” Pigman said. “What the Realtors really have to do is learn how to get people talking about them.”

Source
This is a partial re-print from the online Detroit Free Press:

http://www.freep.com/article/20100423/BUSINESS06/4230346/Realtors-open-to-social-media-more-agents-market-on-Web

Is an open house worth your time? These practitioners say yes, and here’s how they do it.

It’s a never-ending debate that has become more heated in recent years. Do open houses provide any real value as buyers spend more of their house hunting time online?

Some practitioners dismiss the open house, saying it’s an outdated custom that’s carried on mainly to placate home sellers. Other real estate pros remain devoted to the method. Their track records show that open houses can, and often do, get the property sold.

Even when a Sunday afternoon buyer doesn’t emerge, the open house serves as a prospecting opportunity, a way to fill their pipeline with future business.

“I treat Sunday as the most important day of the week,” says Wendy Cutrufelli, a sales associate at Alain Pinel, REALTORS®, in Walnut Creek, Calif. “When else will you be in a room full of buyers and sellers? You spend a lot of marketing dollars to reach these people, and open houses put you right in front of them.”

As Cutrufelli and other open-house enthusiasts can attest, orchestrating a great event isn’t easy. From getting people to show up to following up after the event, every open house requires careful prep work, excellent conversational skills, and a positive attitude.

“It’s not a two-hour picnic,” says Rita Burke, e-PRO®, broker associate at Kenna Real Estate in Denver. Burke estimates that she and her husband Brian Burke, e-PRO®, the company’s managing broker, spend about 12 hours on every open house. That includes online marketing, printing and assembling packets of information for attendees, placing signs around the house, and hosting the actual event. “It’s a full day of work,” she says, “but we do it because we believe in it and we have success with it.”

Harness the Web

If you’re looking for greater success in the open house arena, the first thing you need to know is how to get prospective buyers to show up. One of the best ways to attract people, Cutrufelli says, is by promoting the open house as widely as you can and as early as possible in the place where most buyers are lurking—on the Web.

She starts planning her Sunday open houses a week in advance. Her goal is to have three open houses per month, so if she doesn’t have a listing of her own that she’ll be holding open, she sends an e-mail to her entire office Monday morning, asking if she can host someone else’s. “I’ve never not gotten one when I’ve wanted one,” she says.

By Wednesday, she usually knows which property she’ll be featuring, and she posts the information on REALTOR.com, Trulia, Zillow, and the multiple listing service. (If it’s not her listing, the listing agent must post the information on the MLS.)

“It’s interesting to see the increase in clicks to your listings after you’ve started promoting the open house,” she says.

Following a checklist of marketing activities, she also blogs and tweets about the upcoming event. She estimates that about 50 percent of people who walk into her open houses learn about them through the Web.

“One of the first things I always ask people is: How did you find out about this open house?” she says. “The Internet is a huge driver today.”

So-called “Internet buyers” tend to have done their homework on the property, but they’re less willing to give up personal information than a neighbor or someone who came in because they saw a sign, Cutrufelli says. “I approach them a little bit differently than other buyers,” she says. “I know they value their anonymity. I ask open-ended questions and I don’t prompt them for a bunch of information right away.”

When she eventually asks whether they’re work-ing with a real estate agent, she finds that Internet buyers are more likely than other buyers to be unrepresented. If they’re not interested in the property at hand, Cutrufelli approaches them as prospects.

These buyers may require patience, but they will purchase in due time, she says. One couple Cutrufelli described as “classic Internet buyers” spent a year researching the market and nine months going to open houses unrepresented before they came to one of her events.

They agreed to meet with her again the next weekend, and eight months later they bought a house with her. Not all Internet prospects take quite that long, Cutrufelli notes, but in that case the buyers were dealing with excruciatingly tight inventory in their price range.

Signs, Signs, and More Signs

Rita and Brian Burke also rely on the Web to promote open houses in the Highlands Ranch community south of Denver. But the cornerstone of their marketing strategy is signs, and lots of them. Over the past three years they’ve amassed a collection of about 80 open house signs in an array of styles, colors, and sizes.

For a typical open house, Brian will spend two hours before the event setting up 20 to 40 signs. It may sound excessive, but “it really works,” Rita says. “It brings the people in.”

They use a mix of company-branded signs and specialty signs, which advertise giveaways ranging from fresh-brewed coffee to a list of area foreclosures.

“Different signs work for different properties,” she says.

For example, they found that a no-frills handwritten open house sign is very effective for drawing in bargain hunters, even though the signs may look tacky. For higher-end properties, company-branded lime green-and-navy signs paired with just a few specialty signs have proven to be a good mix.

“We do work with a lot of homeowner associations and gated communities, so in those cases we may have some restrictions on what signs we use,” she says.

Signs will often attract curious passersby who may not be actively looking for a home. But that’s the point, Rita says.

“You never know who will fall in love with the house,” she says. “We don’t disregard anyone. The bottom line is that we need a buyer, and the looker may be the buyer.”

It’s hard to argue with the Burkes’ success. Rita estimates that 10 percent of the couple’s listings sell to someone who visited an open house. But of course, a home doesn’t sell just because of the signs. The clincher for many, she says, is Brian’s gift of gab.

“It’s really his personality that gets people warmed up,” she says. “Once you get them in the door, it’s the way that you conduct the open house that makes the difference. If you come right at them with ‘Are you qualified?’ they’ll run away.”

Brian, who has a background in construction, loves walking visitors around a property and chatting about a home’s details. Even if visitors don’t fall in love with that particular home, they’ll leave with the thick packet of community information that Rita assembled the day before. The packet includes a local market report with data on recent sales activity and selling prices.

“Our feeling is the bigger the packet, the better,” she says.

Being Friendly Pays

Cutrufelli estimates that about 75 percent of her buyer business originates at open houses. She also provides a helpful giveaway—one that both buyers and her competitors appreciate. Before the event, she maps out all other open houses in the area, regardless of whether the homes are listed with her brokerage.

“Visitors love it, and it establishes a professional atmosphere with other agents,” she says. “I’ve even received thank you calls from agents at other open houses who see my name on the map.”

As part of her homework before each open house, Cutrufelli researches every other listing in the neighborhood that falls within the same price range and general specifications as the open house. In conversations with visitors, the information helps showcase her market expertise.

She says her main goal at every open house is to find a buyer for the home. But when it’s clear that the buyers are looking for something different, her helpful attitude is what makes the difference in winning clients. This is especially true when it comes to dealing with neighbors.

“Neighbors aren’t a waste of time,” she says. “They’ll usually show up and say, ‘Oh, don’t mind me. I’m just a nosy neighbor.’ I tell them, ‘I love nosy neighbors!’ I let them know it’s OK that they’re there.”

Rita Burke not only shares that philosophy, she distributes flyers to the 100 closest neighbors the day before an open house. “There are always people who are moving up or down but want to stay in the area,” she says. She once sold a house to a neighbor’s friend who was relocating.

‘Don’t Just Stand There’

At Weichert, REALTORS®–Synergy in Wellesley Hills, Mass.—and throughout the Weichert franchise—open houses are deep-rooted in the company culture, says broker-owner Martin Kalisker, e-PRO®. Four of every seven homes sold by Weichert brokerages are bought by buyers who attended an open house, Kalisker says.

That’s why Weichert sales associates don’t question holding open houses. “They understand why we do them, how it helps sellers, and how it helps them develop relationships with their clients,” he says.

Weichert practitioners hold multiple open houses for each of their listings, complete with eight bright yellow signs and 16 balloons per open house. They also accompany their buyer clients to other open houses. Even if buyers have already seen the home in a private showing, they’re urged to attend the open house.

“It’s a great tool to create a sense of urgency,” Kalisker says. “It creates sort of a feeding frenzy. If your clients are interested and see that other people are interested too, it gets them off the fence.”

Kalisker says his associates start planning open houses about two weeks in advance. Each event is staffed by the listing agent, a buyer’s agent (typically someone who’s newer to real estate), and a representative from one of the company’s preferred lenders.

The lender can answer financial questions and help buyers understand how a low interest rate makes the home more affordable.

Meanwhile, the buyer’s agent learns about buyer preferences and how an open house is done, Kalisker says.

Unless the seller objects, open houses are held every week or twice a month for each listing until the property sells.

“At the open house, our job is to market and sell this home. We try to develop a rapport with the people coming through and we answer their questions. We ask them what they like about the home and what they’re looking for. We don’t just stand there.”

Although it may be off-putting to some visitors who don’t want to give any information, everyone is required to sign in, Kalisker says. “It’s a matter of procuring cause.”

A successful open house, Kalisker says, is one that achieves “a broad exposure,” bringing in serious buyers and neighbors who may know someone who wants to buy the house.

Postcards, e-mail blasts to people who’ve registered on the company’s Web site, and online marketing help spread the word.

“What’s most important to me is that we get the message out to the right potential buyers. If an open house visitor buys that house, we’ve done our job,” he says.

Cara Pearlman, a sales consultant at Long & Foster Real Estate in Bethesda, Md., agrees with Kalisker.

“To be completely successful, the open house results in having an offer,” she says. “Even if you have only three buyers through in two hours, if one of the buyers writes an offer, I am going to say it’s a successful open house.”

Pearlman says her “secrets” to generating a lot of foot traffic are online marketing and smart pricing. But once the buyers show up, it’s important not to disappoint.

“A huge part of it is making sure the house shows the best that it can. We’ve had sellers move furniture out and even move themselves out when the home goes on the market,” she says. “It becomes like their own little HGTV project.” She sold three homes in the last year to buyers who first turned up at her open houses.

Find What Works

So before you say open houses don’t work, take a moment to consider the other side.

“There are people who say direct mail is dead or blogging doesn’t work,” Rita Burke says. “The truth is that you have to find the method that works best for you. If you do an open house the right way, it will work.”

Get More From Your Open Houses

Perhaps because of today’s more challenging market conditions, the percentage of recent sellers who say their agent held at least one open house rose over the past five years, to 59 percent in 2009 from 49 percent in 2004, according to research by the NATIONAL ASSOCIATION OF REALTORS^®.

Find topics for your blog.

Treat open houses as a “fact-finding mission” to learn about the hot topics and concerns that are on buyers’ minds, says Wendy Cutrufelli of Alain Pinel, REALTORS®, in Walnut Creek, Calif. Then turn their questions into topics for blog posts, and include relevant information in your buyer presentations.

Get neighbors on your side.

When it comes to word-of-mouth marketing for your listings, nothing beats the power of knowledgeable neighbors. Invite neighbors to their own special preview event an hour before the house opens to the public, suggests Martin Kalisker of Weichert, REALTORS®–Synergy in Wellesley Hills, Mass.

Listen for feedback.

Want to know why a home isn’t selling? Ask people what they like about the property, but take special note of their objections to buying, says Rita Burke of Kenna Real Estate in Denver. Is the price too high? The backyard too small? Armed with the information, you’ll be able to tweak your marketing or work with the seller to fix what’s wrong.

Make them remember you.

For the most prospecting punch, provide buyers with something of value: a map of other open houses in the area, a list of local foreclosures, or a snapshot of recent market activity. Even after they’ve moved on, they’ll remember the helpful information you gave them.

Tips From the Open House Master

Recently we spent a day with open house master Margaret Rome, e-PRO®, broker-owner of Home Rome Realty in Baltimore. (Watch the video at REALTOR.org/masters.)

Some of Rome’s tips:

• Don’t have an open house just to have one. Not all homes are truly perfect for an open house, Rome says. “If the home isn’t in open-house condition, don’t have one unless you’re advertising it as an as-is property that needs tons of TLC.”

• Add a personal touch. Prospective buyers can always expect a sweet treat at one of Rome’s open houses. She likes to bring a basket full of Baltimore’s famous Berger Cookies, a delight to adults and children alike.

• Give them a reason to come. “Sometimes you have to do something a little different from the three Ps—put it in the multiple list service, put a sign in the ground, and pray,” Rome says. Consider having an event with a fun theme, such as ‘champagne and popcorn.’ Design an open house that guarantees people will show up.”

• Keep your seller a phone call away. “You don’t want a seller who stays at home talking to the people who come through. That intimidates buyers. But the seller should be reachable during the open house in case a serious buyer has a question about the depth of the well or the age of the furnace.”

By Marcie Geffner | May 2010 {realtormag.org]

To create an expert market analysis, you must approach the task as you would a jigsaw puzzle. There are many pieces that have to come together to form a completed picture. Following good methodology will insure you create a winning price tag for your client.

1. Start by looking at all of the pieces. Your search should include looking at all facets of the market: active properties (the current competition); pending properties (those with price tags good enough to attract serious buyers and received an offer); solds (THE most important for your analysis and what the market will bear); expireds (those that were priced too high and didn’t sell); and withdrawn properties (seller withdrew property from the market for some reason). By looking across all of these categories, you’ll be able to see exactly what the market is commanding and what price tag your subject property will likely fetch.
2. Build the border. The location in which the property lies is the first parameter you will use to define the limits of your search. It is best to go as “local” as possible, down to subdivision and/or street level. If the property is not located within a particular subdivision, the MLS area in which the property is located shall define your search.
3. Fill in what’s obvious. You want to compare your subject property to homes that are MOST like it. Use items like square footage, number of bedrooms, and number of bathrooms to initially narrow the analysis. Age and style are important determinants, too, but “less is more” in a Paragon search, so keep it simple at first.
4. Experiment with different pieces. After your initial search in Paragon, you may find you’re not getting the picture to “come together” quite right. Perhaps you’ve chosen the wrong pieces. Try removing some parameters and re-run your search. OR, try using different parameters to help you further define the puzzle. For example, remove number of baths and bedrooms and just focus on location, square footage and age—then rerun your search. OR, if the home has unique qualities that need to be considered (e.g., a three car garage, a location on a body of water, etc.), you may want to add those components and rerun your search. You will find a clearer picture emerges from moving the pieces around a bit.
5. Refer to the sample picture on the box. It’s good to continually remind yourself of the completed picture so you know what you’re aiming for. Repeatedly ask yourself if the comparables you’ve found in your search are a good representation of your subject property. If not, go back and refine your search parameters, then rerun your analysis.