There are only three ways to increase your income in real estate.
I’m going to show you each way today…
#1 – Sell more homes
This seems obvious but, let us explore the process and systems you need to increase your sales numbers.
To sell more homes you need more leads.
If you have leads you need a system to convert these leads into appointments.
If you have appointments you need to convert the appointments into client agreements (buyer or seller agreements).
If you have agreements you need to convert into Pending Sales (Escrows)
If you have Pending Sales you need to convert them into closings.
If you have a closing you need to convert the client into a raving fan that refers you more qualified business.
These are impact areas you need to think about and work on each day. You can’t increase your sales by removing luck without working on these areas.
#2 – Sell higher priced homes
To sell higher-priced homes you need to focus on the price point you want to sell. Know the inventory active, pending, and closed better than anyone else. Use the law of attraction. Market homes that are in the price range you want to work in. Farm the neighborhoods where the homes you want to sell live. Hang out with people that live in these areas. Have a solid plan to follow up with your clients that have bought in this price range. Focus your raving fan club around higher price points.
Quick tip – Higher price point doesn’t mean go straight to luxury. Luxury is 3X the average sales price. There are far fewer listings and buyers. I’m not saying don’t just know if you do then you are violating step 1 which is selling more homes. Make sure your price point in your business is diversified. Right now, to be honest, working below $350k in Wenatchee for example is 4X as much work as working in $650k+.
#3 – Make higher commissions.
I not only coach our team Nick McLean Real Estate Group on how to increase sales, increase price points but, also how to increase their commissions.
There are specific ways to increase commissions.
The most important thing is to remember. Commissions are market-based. They are negotiable. Each real estate broker gets to determine their pricing.
Back in 2008 when I started I didn’t realize that I could set my own commissions. I just did what others in my office did. At the time it was 7% on the 1st $100,000 and 3% on the balance. Essentially 3.5%/1.5% to the buyer agent.
When I met with clients they would ask if it was negotiable and we would go from there.
I’m about to give you a big secret that nobody will tell you.
You are worth more!
If you raise your pricing you may increase your sales.
People assume that to increase demand for your services you need to lower fees.
That is true if you are a commodity. But, we are in the service business. People pay not only for results but, mostly for the experience.
Do you think The Four Seasons, Porche, Louis Vuitton, Tiffany’s, Rolex, Disney World lower their fees to increase sales?
NO WAY! They increase prices and add more value, quality, and experience.
Disney hasn’t lowered their ticket prices EVER! They keep going up! Because they keep making the experience better.
Nick McLean Real Estate
We are hiring business owners to come on board to grow their businesses!
If you want to be in an organization that teaches specifically how to increase all three of these areas in your business we are hiring. Call or text me at 509-670-1071 and let’s talk about your business.