7 Ways That Real Estate Agents Can Turn Sellers Into Life-Long Clients

In the work I do as a writer/consultant/strategist, I get to work with a lot of real estate agents to help them grow their businesses. And I just recently sold my house so I got another glimpse into the business from a slightly different angle.

I think real estate agents are missing out some on some key opportunities to get more clients. They may THINK they’re doing everything they can but there are several ways they can do more. If you’re a real estate agent, I want to share with you 7 simple things you can do to turn sellers into life-long clients.

Aaron Hoos

Here’s what I mean…

When a seller signs a contract with you, you get to work to sell their house. In your mind, the home sale is the ultimate measurement of your success. However, your seller needs something more from you if you want to lock them in as a lifetime client and get referrals from them.

Your seller wants you to spend 24 hours a day, 7 days a week pouring over lists of potential buyers who might be interested in their house. They want to believe that you are rolling up your sleeves and working ONLY on their unique situation.

While that’s obviously asking more of you than you can realistically give, there are ways that you can appear to be prepared and hard working, which will create a more positive experience for your client, which will lock YOUR NAME in their minds for the future.

7 Ways That Agents Can Turn Sellers Into Life-Long Clients

#1. Give A Clear Timeline.

As a real estate agent, you are the expert, not your client. Clients have weird, broken ideas about how long it will take to sell or buy a house. I think their view is often skewed by unrealistically short timelines on those house-buying TV shows, as well as by optimistic word-of-mouth reports given by family and friends who bought or sold recently.

s the professional, you should come in with a clear timeline that says, “many houses in this price range are on the market for X days.” Yes, you’ll need to include a disclaimer that there’s no guarantee but you should give your clients an idea of what others are experiencing, if only to dampen expectations slightly.

#2. Give Clear Steps.

Again, you’re the expert. When you tell your client “we’re going to list your house and show it and maybe do an open house,” the client doesn’t really know what that means.

Give them a clear breakdown of the expectations, how often you do an open house, when you’ll revisit the price, how they’ll know when you get an offer, etc. These are things you deal with every day so you take them for granted, but your clients have no clue and if you don’t hold their hand, they’ll get worried. But if you do walk them through the process up-front, you’ll put them at ease and give them positive feelings about the service you provide.

#3. Checklists.

I wish my real estate agent gave me some checklists! I could have used some for before he showed up to take pictures, then for what to do before a showing, what to do before an open house, what to do when an offer is made, and what to do if I accept the offer.

These simple checklist documents would have alleviated many questions and reduced the number of times I called or texted my agent with follow-up questions.

#4. Market Analysis.

People who have lived in their house for years, as my wife and I did, are not really dialed into what the local market is like. Is it hot? Is it cold? All I had to go by was what my neighbor sold his house for (more than I thought he would) and how long it took (longer than I thought it would).

If your clients are hiring you to sell their house (or even to help them buy), a short one-page Market Analysis report will help them understand what to expect. For example, mine might have said: “we’ve finished the busy spring season and are entering a slightly slower summer season when many potential buyers are on summer vacation. There are still plenty of buyers and there are not a lot of houses in your price range right now so that’s a plus.” Like the timeline (see #1, above), you don’t have to make any commitments or promises but you can manage expectations and help the client know that you have everything under control.

#5. Regular check-ins.

This was probably my biggest complaint with my real estate agent. He was a good guy and he sold my house so that’s awesome but I occasionally felt like I needed to follow up with him because I hadn’t heard from him in a couple of weeks. We had a lot of showings, so I heard from his assistant a lot as she was setting up the showings, but I want to feel like my agent is working hard for me, and the only way I know he’s doing that is with a quick text that says, “Checking in; hope you’re doing great. We’ve had several showings but no offers this week but keep your chin up… we’ll keep pushing!

#6. Contingencies.

Sellers want to sell now for top dollar (of course). As an agent, you want that too (of course) but you’re also experienced enough to know that it might not always happen that way. When you talk to your client about listing their property, you should assure them that you are prepared for contingencies, such as lowering the selling the price or making some other adjustment to the offer.

Telling your clients this might seem like you are admitting defeat and already thinking of lowering the price but if you do it right you’ll assure them that you are prepared for every eventuality and you understand how important it is to sell the house… plus you’ll also address any skittishness they might feel if they get discouraged after not receiving offers after the first couple of showings. (Guilty as charged.)

#7. Acknowledgement of the significance of the event.

When the property sells, you’ve done your job and you deserve to get paid. Your client is probably relieved and excited as well. But remember: chances are, they’ve just sold their HOME… a place of memories and love that they are now moving away from. This is a significant event with many mixed emotions. If you really want to connect with a client and lock them in long-term, the best thing you can do is acknowledge the significance and experience it with them.

Summary

As a real estate agent, your job is to serve your seller by listing the house and trying to find a buyer for it. But in reality, you have a much bigger responsibility than that: you need to make them feel like they are at the top of your mind and you are doing everything in your power to sell their house. These 7 tips can help you create a loyal, lifetime client from every seller you serve.

Speaking Of Wealth Podcast: Sales Copy With REI Focus

speaking-of-wealth-sales-copy-with-rei-focus

I was booked to to be interviewed by Jason Hartman, a real estate investing expert and a very prolific podcaster. By coincidence, we both ended up at the same conference just a week or two before our podcast interview. It was great to meet Jason in person and it actually helped us have a better podcast because we were more comfortable speaking together, plus he already knew a bit more about what I do.

In his podcast we talked about the importance of copywriting and sales funnels, particularly as they pertain to real estate investors.

Click here to listen to my interview with Jason Hartman about sales copy with an REI focus

Want to interview me on your podcast? Click here to learn how to book me as a guest.

What is due diligence?

Due diligence is the investigation and research that an investor should conduct prior to making an investment to determine whether that investment is right for them. This is true for any kind of investment — from stocks to real estate to businesses.

It’s technically a legal obligation for some investments but I would argue that it’s essential for any investment and, in fact, for any kind of agreement or acquisition at all, whether it’s your home or car, or even whether you’re thinking about entering into a relationship with someone. (In a way, it’s all an investment — your car is an investment of money into your ability to get around; your new relationship is an investment of time and energy into a friendship or romance).

Ultimately, due diligence should answer the question: “Is this investment right for me at this moment?

Good due diligence should first seek to understand that investment (or whatever) as thoroughly as possible. Then, it should consider what the investment means to you and your own goals and timeline.

HOW TO UNDERSTAND THE INVESTMENT

To understand the investment, you need to explore it thoroughly. If it’s a stock, you need to study the stock itself, the industry, and market trends (and so much more. If it’s a real estate investment, you need to study the marketplace, the tenants and property management company, and the costs of maintaining a home in that area (and so much more). Even if it’s a potential romantic partner, you need to know what they’re hoping for a relationship, how they enjoy spending their time, whether the attraction is mutual, etc.

HOW TO CONSIDER WHAT THIS INVESTMENT MEANS TO YOU

An investment, by its very nature, requires you to trade something of value for the potential of a return. That thing of value could be money, time, effort, or many other things. So it’s important that you know what is required of you (and whether you have that to give) and what you can expect. And perhaps most importantly, you need to decide whether the expected return is what you want. Many investors buy into something without really thinking about whether it’s right for them at this moment in time; they end up putting up too much value and receiving returns that they are disappointed with.

DO YOUR DUE DILIGENCE — ALWAYS

Regardless of your investment, it is impossible to perform too much due diligence. However, there comes a point when, practically speaking, you’ve done enough due diligence to move forward. I don’t think people have a problem with the idea of due diligence; rather, I think people do too little due diligence.

(Side note: As a real estate investor, I hear a lot of people say that they’re doing their due diligence but what they’re really doing is being stalled by fear and they are allowing that fear to catch them up into a loop of “analysis paralysis”. Strangely, I only see this in real estate and business investments — never in the stock market.)

Do not leave your due diligence in someone else’s hands. Sure, your financial advisor might help you perform some of your due diligence but don’t think of them as a replacement for due diligence! Do it yourself. Be thorough. Don’t rush.

Check out some of my other writing on due diligence including:

9 things that are awesome even though we usually think they suck

Warning: You’re not going to agree with me on some or all of these. That’s okay. That’s actually the first one! :)

1. DISAGREEMENT

It seems like most people try to agree. They try to find common ground, achieve alignment, come together, whatever. And sometimes that’s helpful because when you work together with someone, you tend to achieve more when everyone is moving in the same direction. Agreement is ingrained in us because every story (whether book, movie, TV show, etc.) is basically about people who disagree and then discover a resolution (sort-of an agreement, even if it involves explosions). We tend to agree with our heroes.

BUT… a dissenter is good. History is built on dissenters. Businesses are founded on dissenters. Even countries are founded on dissenters. We don’t always have to agree. Disagreements (when healthy) breed discussion and growth.

2. RISK

Risk is fascinating. I love studying risk! Most people’s ideas of risk are broken. The average stock market investor tries to reduce risk. We’re wired to avoid it.

But who are the most successful investors? They’re the ones who accept some level of risk. (Warren Buffett understands that there is risk in the market and he accepts it. Even though he’s thought to be a safe and risk-free investor, he’s actually not and it’s to his benefit). And here’s a great example of how people are insanely risk averse: So many people dream of quitting their job and starting their own business but they can’t take the risk of giving up that paycheck. (By the way: I have a solution for that. If you want to start a business without the risk of quitting your job, do this).

Risk is good. Period. Yes, it needs to be managed and monitored closely and it should always be in balance with reward but risk is a good thing. (I talk a lot more about this at the blog post Ideas about risk that we have totally wrong.)

3. MISTAKES

We want to avoid mistakes because we don’t want to look foolish. But mistakes are what help us innovate. I love making mistakes. If I’m not making mistakes, I’m not trying. (Here are 5 business failures I’ve had and what I learned from them).

My advice? Do more stuff. Make more mistakes. Love those mistakes and learn from them.

4. BULLIES

This will be perhaps my most controversial addition to the list. Even before hitting “Publish” on this post I was tempted to remove it. But here it is anyway.

I was bullied in school. It sucked. I wished it never happened and I have emotional scarring as a result. (Gosh, am I actually admitting this on my blog???) And I support how bully-intolerant we’ve become as a culture.

BUT… because of bullies, I am where I am today. They solidified who my friends were (and weren’t), they were a key factor in me moving to a different city in my late teens (which launched some very positive changes in my life), they showed me that the world isn’t always fair but I need to be a good person anyway, and they motivated me to do well in life as a sort-of revenge for how they made me feel in grade school and high school. (Where are they now? I have no clue, and I’m not about to devote any bandwidth to finding out. But success is sill the sweetest revenge).

5. BAD CLIENTS

Bad clients make you work hard and then pay as little as possible while complaining about it, or they disappear with out paying. Or they leave a bad review. Or they take advantage of your guarantee. It happens and it sucks and sometimes it causes some short-term financial pain.

But but clients strengthen your “jerk-o-meter” and help you know for next time. And I’ve learned that bad clients are also an indicator of your success: When you’re just starting out and you’re willing to accept any clients, you put up with the bad ones. But as you get to be more successful, your ability to say “no” to a client — to turn them away if you don’t think it’s a good fit — is an AMAZING feeling.

6. LACK OF MONEY

I’m mostly speaking about having a lack of money in business, although I suppose this also applies to personal life as well.

Being short of cash sucks. It feels like you’re handcuffed and can’t do everything you want to do in your business. You wonder how you’ll afford a key investment or how you’ll pay your staff this money or how you’ll pay yourself this month.

But, when your business is short of funds, it is a fantastic motivator to get your ass out of your seat and start selling. It refocuses you on the important stuff. Being short of funds alerts you to the fact that your expenses seem to outpace your income, so you need to take a closer look at those expenses and trim them, and you need to boost that income. A lack of money also forces you to get creative.

Several years ago my business ran out of cash when I got a MASSIVE tax bill that I was simply not prepared for. I had to buckle down and work HARD, putting in long days every day for months in order to cover the tax bill. It was a very dark period in my business. But the result was incredible: I learned a lot, I raise the bar on what I could achieve when motivated, and it even opened up a couple of new opportunities for me.

Business tends to run in cycles: During the fat times, you spend a lot and you don’t hustle as hard. During the lean times, you spend less and you hustle hard. And so it goes like that, back and forth and back and forth (this happens in the economy, too) and hopefully you learn enough in the lean times that you make the fat times less silly, and you put away enough in the fat times that you make the lean times a little less lean. But lean times are still good.

7. DEADLINES

My entire life is built around deadlines. Every week I jam out content like a maniac because of deadlines. I hate them.

But… there have been a few clients who have said, “oh, just get me the project whenever you can” and guess what happens. The project gets deprioritized over and over and over again. And my own projects (like my first book, and now like my second and third books) get pushed farther and farther back. Deadlines give us a goal and keep us focused.

8. DEATH

The death of loved ones is very painful. When family or friends pass away, we’re left with a hole in our hearts and our lives, and sometimes even a bit of regret that we didn’t get to spend more time with them.

But death is a kind of deadline. The ultimate deadline. I don’t say that to be morbid, I’m just tying it back to my previous point. Like any other deadline, death reminds us to live now. When someone I know has died, I find myself revisiting my own life and considering whether I’m living the life I should be living.

When my grandfather passed away just the day before my 35th birthday, I was (of course) very sad at the loss (although it was not unexpected as he’d been in ill-health for a while) but it made me reflect on the way he lived his life to the fullest and inspired me to do the same. And when my friend and business colleague Rod lost his life unexpectedly, I renewed the commitment I had made in several areas of my life that he had impacted. These are just two stories but I’ve experienced more myself and know of many other stories that are similar. In fact, I’m writing a book for a business that started when a couple made a commitment to a friend of their who died of cancer — it’s a fascinating story and one I hope you get to hear someday.

9. PAIN AND DISCOMFORT

No one likes pain. We’re wired to avoid it. Just look at anyone who thinks they’re about to be in pain and we see them throw all personal pride out the window — whether it’s a flinch from a near miss, or hearing a bee buzzing around your head, or hitting your thumb with a hammer… whatever. When there’s pain or we think there’s going to be pain, we react in a primal way.

Pain hurts, discomfort is uncomfortable. (Duh). We do what we can do avoid them because our DNA is embedded with a desire to reduce pain and discomfort and increase pleasure. Nothing wrong with that. And hopefully our businesses grow to give us more time and money to enjoy the pleasures of life.

But there is good that can come from pain and discomfort. Some of the examples I’ve listed above (bullies, death, lack of money) all cause some amount of pain or discomfort and I’ve shown how they can make us better. The most successful people are not those who avoid pain and discomfort but who find a way to get through in spite of it. The best business example I can think of is selling. Selling can be hard. when I first graduated from college I went into sales and struggled at first. And then, for some bizarre reason I ended up in financial sales where I was making cold calls and even selling door-to-door. At one point during that time, there was so much discomfort that I threw up all over myself in anxiety before going out to sell. (Why am I making all these crazy admissions in this post???). But I pushed through. I prevailed. And now? I feel like I can sell anything. I can navigate my way through a sale confidently and comfortably because I pushed through the discomfort.

Or here’s another example: When you’re just starting out in your business and not sure how to do something. At first it takes you a bit of time and it seems difficult and slow. After a while, though, if you can push through the discomfort without giving, it becomes easy.

CLOSING THOUGHTS

I’ve listed many things that suck. But they’re also awesome, not because of what they are or what they put us through… but because of what we become as a result. We become better people — stronger, more resilient, with renewed focus, and a sharper desire to succeed.

So accept and embrace those challenges and push through because the other side is better.

My 17 rules for investing (regardless of the investment)

I love investing. Stocks, real estate, businesses, you name it.

Here are the 17 rules I invest by.

  1. Every investment has a return: Either money or education.
  2. Don’t be an investor: Be an engineer. Don’t invest in anything you can’t control (and learn the levers that will provide a return).
  3. Redefine your idea of risk.
  4. It’s impossible to completely derisk any investment.
  5. Invest primarily for cash flow.
  6. Define why you are going to invest in something. (For me, I almost always build my investment decisions around what a business’ sales funnel looks like.)
  7. Define what would make you sell it: List specific triggers with all possible exits.
  8. Do your due diligence.
  9. Become an expert in just a few things: You can’t fully diversify so instead go the other way and become an expert on a few things.
  10. There is no such thing as passive income.
  11. Reinvest a portion of your income into more investments.
  12. Be courageous — things will fluctuate.
  13. If you want to scale, you need a system.
  14. Master yourself and get comfortable with uncertainty.
  15. Be a contrarian.
  16. Decision, action, and commitment are the 3 qualities of an investor.
  17. There is no perfect time or perfect investment. There is only “pretty good right now for me.”