The real estate market is one of the fastest growing sectors of the U.S. economy. It has been steadily rising since 2012, (1) inspiring thousands of Americans to start their own real estate agency. With over 3 million active licensees and 106,000 brokerage firms in the country, (2) it can be difficult to grow and maintain your business. In fact, as many as 3 out of 4 real estate agents fail within their first five years. (3) Yet, the unprecedented housing boom, and the fact that 88% of home buyers work with agents to navigate the buying process, (4) means that the demand for real estate agents has never been higher. So, how can you tap into the market and scale your business amidst all the competition? Here are three tips to get you started.
It may seem obvious, but one of the single best things you can do to grow your real estate business is to get real about the finances. Where exactly is your money going every month? Are you spending it on ads, or social and email marketing campaigns that generate little to no actual leads? Perhaps that money would be better spent staging the property or using drone photography to close sales. Alternatively, you could reevaluate your process for generating leads or reinvest more money back into your business.
Identifying your resources and creating a budget around how you spend money can open your eyes to the factors affecting your ability to scale. This includes recognizing your pain points (e.g., generating leads vs. closing sales), and understanding what is (and is not) effective when trying to achieve your long-term goals. Completing a cost analysis of the business can also help to identify broad areas of improvement.
Another way to grow your real estate business is to form relationships with individuals in professions that overlap with real estate. Examples include estate attorneys, interior designers, stagers, home inspectors, handymen, and construction contractors.
Even with the advent of the internet and social media, referrals are still the number-one way to generate new leads. Approximately 67% of recent home sellers and 40% of recent home buyers used referrals to find their real estate agents.4 The truth is, people want to do business with someone they trust, especially when it comes to buying or selling property.
Referrals from friends, family members, and other professionals are an easy way to cultivate a sense of trust from the very beginning of the client–agent relationship. By building strong connections with others who are in the same professional environment, you can increase your likelihood of referrals, thereby increasing your ability to grow your business.
Warren Buffet once said, “The more you learn, the more you’ll earn,” and that is certainly true when it comes to marketing yourself in the real estate industry. The more you know, the better prepared you’ll be to scale your business and adapt to changing markets. After all, it takes more than just attending the traditional conferences and continuing education classes to stay at the forefront of your profession.
There are many online learning platforms that offer classes and certifications that can help you learn more about advertising, analytics, and market trends. LinkedIn Learning, Facebook for Business, and Alison.com are great resources. You can also join or follow the National Association of Realtors (NAR), which offers a wealth of information in the form of market research and statistics, articles, and networking opportunities.
Whether you’ve been working in the real estate industry for 20 years, or you’re just starting out—growing and maintaining your business are always top of mind. Strategic budgeting, networking, and investing in yourself are three ways to get started.
For more information and tips on how to meet your business goals, call Wealth Advocate Group for an introductory consultation. We advocate for what is most important to you: financial education, meticulous planning, and clear guidance for your family and your future. Reach out to Jason at 440-505-5751 or email jcohen@Wadvocate.com to schedule an appointment today.
Jason Cohen is Chief Operating Officer and wealth advisor at Wealth Advocate Group, LLC, an independent, fee-based wealth management company. Jason has 15 years of experience and spends his days managing firm operations, including portfolio trading and analysis, training of new advisors, financial plan production, and client relationship management. Jason specializes in serving real estate professionals and other independent contractor business owners, helping them navigate their unique financial challenges, such as unpredictable cash flow and tax issues, so they can achieve financial independence and freedom from worry. Jason has a bachelor’s degree in public management from Indiana University and is a CERTIFIED FINANCIAL PLANNER® (CFP®) professional and believes that everyone should have access to comprehensive financial planning. He is passionate about doing his best for his clients and setting others up for success. Outside of the office, you can find Jason staying active in a variety of sports and spending time with friends and family. Learn more about Jason by connecting with him on LinkedIn.
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(1) https://www.noradarealestate.com/blog/housing-market-predictions/
(2) https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics
