The real estate industry is experiencing a loyalty gap – the phenomenon that 80-90% of people state they would use their realtor again, but only 13% of those people used their previous agent. In today’s episode of The Real Estate Sales Podcast, Jimmy is joined by Berkshire Hathaway Homeservices CEO Chris Stuart to understand this issue and explain how to grow your real estate business through influence.
What are some of the challenges facing the real estate market?
- What you focus on expands. Dedication to lead generation might expand your market of new leads, but that means your existing network doesn’t reap those benefits.
- Everybody knows how to find a realtor, so the loyalty gap is not a representation issue, a service issue, or an affinity issue.
So, why does this loyalty gap exist?
- In real estate, 90% of all transactions have a real estate representation on both sides. People do not go through the real estate process without a realtor.
- It all comes down to one thing: influence. How agents do (or don’t) influence how customers make their real estate decisions.
- When someone is making a real estate decision, most people talk to friends, family, neighbors, and coworkers before contacting an agent.
- To capitalize on this, the agent should aid initial decision-making to have a seat at the table.
How do you establish influence as a realtor?
- Demonstrate to your database that you’re a trusted advisor in any situation. Are there cracks in the foundation or water supply issues with their new home? You should know how to help them.
- Create a business where you aren’t tethered to a commission check, and quit expecting everything to come with a check – build relationships instead of transactions.
- Build your network and connections into your database. But don’t just leave it at that – add value to their lives.
Read to establish influence:
- Chris’s book Real Estate Influence to learn how to leverage social media and marketing intentionally as an agent.
- The best part? All the proceeds go to Sunshine Kids, a nonprofit organization dedicated to helping children with cancer.
- There are two fundamental premises to real estate: be in the service of others, and be in the spirit of accountability. When you need help, put aside your ego and ask for it.
Want to get in contact with Chris? Connect with him on LinkedIn to learn more.
Connect with Jimmy Burgess on LinkedIn and Facebook, as well as his YouTube channel. If you like what you heard today, we’d love it if you’d share a rating or review and then subscribe to the podcast and tell others about it as well. You can find The Real Estate Sales Podcast on Apple Podcasts,Google Podcasts, Spotify, and Audible, and our website, The Real Estate Sales Podcast.