The Five BASICS Necessary for Success By Mike Pallin, Master Trainer and President of The Floyd Wickman Team
My friend and industry writer, Julie Escobar, called recently with a suggestion that I write a new article, based on a significant spike in calls from agents. The topic? How to get more inventory.
Is listing inventory really a problem?
No less an authority than Ron Peltier, Chairman and CEO of Berkshire Hathaway HomeServices of America, the second largest real estate company in the U.S.A., recently stated, “The Number ONE challenge across the country is that we have moved from a surplus of inventory two years ago, to a very, very critical shortage of inventory…”
Please notice two things about Mr. Peltier’s quote. First, the words “very, very critical shortage.” Listing inventory is on life support in most areas.
And second, notice “we have moved.” That’s the answer. The market moved and a lot of agents didn’t.
Except two groups I would like to tell you about.
In the last month we have graduated 186 agents from The Floyd Wickman Master Sales Program. In 42 days they listed 643 properties. That’s an average of 3.5 per person.
We also have 79 program graduates in Floyd’s coaching system. Since January 17th of this year they have taken 1546 listings. That’s an average of 19.6 per person in 23 weeks.
What did these two remarkable groups of agents do to get that many listings?
Two things. First and foremost, they shifted their activity from maintaining their listing inventory to building their listing inventory. Building is a completely different focus and style of activity from maintaining. Floyd teaches that all change begins with awareness.
His Master Sales Program begins with the awareness that, “listings are the name of the game.” And that, “inventory level will determine income level.” Awareness means something that you know that you know that you know; something you don’t have to be reminded of every day, it is just an automatic part of your thinking; something you really buy, because you can’t sell what you don’t buy.
To maintain a listing inventory, you market them and replace them as they sell. One reliable method of getting listings will usually work well to maintain.
Building a listing inventory is another matter. To change into an inventory building mode, you have to do ALL the basics. One method won’t do it.
You need all five of the basics going simultaneously. What are they?
1. Build your Book of Business. Focus your money, time and effort on your 200 best referral sources. Send them something every month with a referral call to action. Get voice-to-voice at least three times a year with a referral call to action. And see them in person at least once a year with a referral call to action.
2. Systematically work For Sale By Owners and expired listings. Send them something. Get voice-to-voice. Go see them.
3. Hold Open House to generate listing leads. And that doesn’t mean put out one little tent sign at 12:30 Sunday afternoon and expect a steady stream of prospects. It means work the neighborhood in advance. Work your Book of Business in advance. Work your prospect database in advance. And systematically follow up.
4. Canvas around new listings and new sales. When a new listing goes on the market, there are as many as seven other homeowners within the nearest 250 homes that also want to sell. Send them something. Get voice-to-voice. Go out and see them.
5. Religiously follow up all leads. More business is lost due to a lack of systematic follow up than for any other reason. Follow up internet inquiries. Follow up telephone inquiries. Follow up networking inquiries. Follow up Open House leads. Follow up just listed/just sold leads. And follow up all referral leads.
Now, of course, it helps if you have someone teach you HOW TO do the basics skillfully, and then someone to make you do them until they become a HABIT. That’s exactly what our clients hire us to do.
Yes, the Floyd Wickman Master Sales Program teaches the basics, but until you know how to do the basics skillfully, they are pretty advanced. We use every tried and true training method in the book to cause our students to become skillful listing agents. Remember those numbers? 186 agents. 643 listings in 42 days. From doing the basics.
And once you are trained, the need for accountability and reminders and support and encouragement and direction and motivation doesn’t stop. Floyd’s coaching provides graduates with just enough of that in one hour a week that 79 students have 1546 listings in 23 weeks.
We do not claim to have the only answer, or the best answer. We just have an answer that works.
And one more thing for all you listers. Don't beat yourself up over carrying a smaller inventory than you are used to, or comfortable with.
The current “shortage” of inventory, just like the past “surplus,” has been artificially created. If you look closely at your numbers from the past two years and compare them with this year, you will find that one of the main reasons we have a shortage of inventory is that inventory is selling quicker. In many markets, there are just as many listings coming in. They are just selling in less time.
Remember the baker doesn’t want stale bread on the shelves.
To build your listing inventory, do all of the basics. Do them skillfully and systematically. And keep an eye on your numbers and ratios. They tell an important story.
Want to learn more? Call our team today at 1.800.910.5351 or visit us online at www.floydwickman.com.