Two aspects that I have absolutely loved about real estate is its predictability and the ease of access we have to information. Armed with these two resources, anyone can create a blueprint, apply and commit to the necessary actions, and thereafter achieve their desired goals.
If you aspire to reach million-dollar status, apply what I refer to as the “magic bullet” formula. The formula combines the law of probability with verifiable and readily available data. The combination highlights the effectiveness of activities when actioned consistently. They truly represent the “magic bullet” to all avenues of success in real estate operations.
You don’t have to reinvent the wheel. All that is necessary is to unashamedly follow, copy and emulate hundreds of current million-dollar agents who have willingly and openly shared their success secrets. Do what they do, and if possible, do it better.
Then amass as much sales information that can be cross-referenced and found on the myriad of online resources such as the major property portals and sales data platforms. When you action these two steps, you amass all the information you need to set your sights on your first million. It’s important to note. No one “flukes” writing their first million-dollar GCI year. As Zig Ziglar was quoted as saying: “People don’t tend to wander around and then suddenly find themselves at the top of Mount Everest.” They normally apply a well thought out plan with unrelenting conviction.
In the instance of million-dollar status, the magic bullet formula would require the aspirational agent to establish and document a number of key metrics. The first is the average annual number of property sales in the agent’s core suburb(s). Most established areas have an average turnover of 4 per cent. That simply confirms that 1 in 25 homes in a local area sells annually.
We also know that, on average, there are three active agents for every 1,000 homes in a marketplace. We also know that agents with a clean database of 500 prospective sellers who also receive consistent communication will generate approximately 30 potential sales. As with all proficient agents, referrals add to these numbers by a factor of 50 per cent. That is, for every two successful sales, most agents will receive a subsequent referral sale.
So applying the law of probability with the above criteria and information at hand, the “magic bullet” formula will suggest that if an agent diligently works a service area of 1,000 homes, they will by all probability sell a third of those areas annual sales. That is approximately 14 properties.
Using the same approach to a database of say 500 clean contacts, probability suggests there is the potential of a further 30 sales; that adds up to 44. We can then accurately predict a further 22 in referrals, bringing the total to 66. If the average selling fee is $15,000, the annual GCI potentially comes to a total of $1,000,000.
As simplistic as it seems, applying the law of probability and following through with actionable steps will guarantee the outcome. That’s why I label it the “magic bullet” formula because, quite frankly, it is. Naturally, agents are often sceptical because when they first start, results are, more often than not, slow. Building a contact list of 500 is daunting. It takes real effort, and referrals at most parts are rare in the first instance. Getting runs on the board in the early days is challenging.
But here is what should be a light bulb moment. Every single million-dollar agent was also once a beginner. But they persisted, held the faith, believed and took a chance on themselves.
Therefore, regardless of whether you are a beginner, veteran or wanting to rejuvenate your career, I encourage you to do the very same. Back yourself and apply the magic bullet formula. It’s so worth it.
Wishing you every success in your real estate career.
Manos Findikakis is the CEO and co-founder of the Eview Group.