Building a listing-based real estate business, with a focus on lead generation, handling objections, and delivering value during listing presentations.

1. Finding Listings: Farming as a Key Strategy

  • Farming is an effective long-term strategy for consistently generating listings. Farming involves door knocking, hosting open houses, organizing community events like picnics or shred days, and consistently sending mailers.
  • Target owner-occupied areas. It’s important to understand the owner occupancy rates, turnover rates, and the market share held by the top three agents in the area before selecting a farm.
  • Start by spending time rather than money in your farm to build relationships. As you gain momentum and listings, you can invest more into mailers and other marketing activities.

2. Build Relationships Through Canvassing and Conversations

  • Canvassing involves leaving something of value at each door, such as market updates, event invites, or just general neighborhood information.
  • Approach each door with confidence, knowing you belong in the neighborhood. Value doesn’t always mean information about real estate—it could be as simple as a genuine conversation, asking about their day, and noticing something personal like a garden or home improvement project.
  • Be consistent. Even if someone is not interested in talking, leave behind valuable information and express that you’ll be back. This builds familiarity and trust over time.

3. Overcome Imposter Syndrome

  • If you’re farming an area where you don’t live, focus on providing value rather than feeling like an outsider. Consistency and genuine interaction will build your reputation and presence in the community.
  • After putting in hours of canvassing, your confidence will grow as you begin to see results, such as inquiries and listing opportunities.

4. Handling Objections and Concerns During Listing Presentations

  • Ask questions first. Start the presentation by asking sellers what their most important questions are. This helps you understand their concerns and allows you to address them directly.
  • Rephrase their questions to ensure you’re on the same page and show them that you’re listening. This helps build rapport and trust.
  • Common concerns include commission fees, how much work is needed on the home, and whether they can stay in the home during the sale. These should be addressed after establishing the value of your services.

5. Handling the Commission Discussion

  • Once you’ve established your value, the commission becomes a secondary conversation. Explain the value of what you’re offering, how it benefits the seller, and how it impacts the final sale price.
  • If necessary, offer a tiered commission structure that ties commission to the results you achieve. This can make the seller feel like they have control while ensuring you are fairly compensated for exceptional performance.
  • Comparison to other agents: If sellers mention that another agent offered a lower commission or free services (e.g., staging), reiterate that they should focus on the results rather than the upfront costs.

6. Dealing with Market Concerns and Lawsuits

  • In relation to market noise like interest rates or recent lawsuits, focus on the seller’s main problem, which is often unrelated to broader market concerns. Their primary need is to solve a personal issue, such as moving forward with their life or getting the most for their property.
  • Regarding lawsuits about commission structures, explain that offering a co-op commission is a way to encourage buyer agents to bring clients. Help the seller see the value in incentivizing buyer agents for a faster and more profitable sale.

7. Building Social Proof and Using Systems

  • Social proof is essential in today’s market. Ensure you’re highly visible online through platforms like Yelp, Google Business, and Facebook Business. Reviews and visibility online build trust with potential clients before they even reach out.
  • Ask clients, even neighbors or community members, to leave reviews based on their interactions with you. These reviews can be based on your professionalism and helpfulness rather than just completed transactions.

8. Listing Presentations: Diagnose Before You Prescribe

  • The presentation shouldn’t be about showing off your marketing plan but rather about listening to the seller’s needs and concerns.
  • Use your fiduciary duty to establish trust, and provide answers to both asked and unasked questions to position yourself as the best solution to their problem.
  • Value is not just about commission but about how you’ll solve their problem, whether it’s selling the house quickly, netting the most money, or handling the process smoothly.

9. Build Your Presence and Follow Up

  • Consistency and perseverance are key. Build long-term relationships in your farm by staying in front of potential sellers through regular mailers, events, and follow-ups.
  • Focus on being present in their lives, offering help where you can, and proving your value in small ways. When the time comes for them to sell, you’ll be their first call.

By focusing on providing value, being consistent with your farming, and understanding the deeper needs of your clients, you can build a successful listing-based business even in competitive markets.