The Real Estate Referral Community is now open to all professionals who service the Real Estate Industry. Yes, Realtors have been the foundation of NuOp, but now everyone from Plumbers to Home Stagers, to Attorneys, can exchange referrals through NuOp.
Join for FREE
NuOp has been, and will always be free to join. What is most important to us is that we build the most comprehensive community of professionals who service the Real Estate Industry. This way referrals from one professional to the next can flow seamlessly.
NuOp is a referral processing utility that makes exchanging referrals fast & easy. Choose from three different referral exchange methods. Open your referral to the community, send it directly to one Member, or make it first come, first serve. Learn more about the benefits of NuOp- The Real Estate Referral Community today!
I am sure at this point everyone is hearing about the coronavirus. I have been paying close attention to this virus for over a month now. It’s now taken on a new life because it has made it’s way to more countries, specifically Italy, and it’s killing people. What is causing the major panic right now is the fact that experts really have no idea how it made it’s way to Italy and other countries such as Iran.
How many more countries could already be affected?
What seems to be the most troubling for the experts dealing with the containment of this virus around the world is that there doesn’t seem to be a clear understanding of how the virus jumped over to Iran and Italy. The fear of the unknown is real, and especially real when dealing with a deadly virus. It should be noted that the flu here in the US is still far more dangerous to Americans than the Corona Virus, but none-the-less this virus shouldn’t be taken lightly. What is more of a concern right now in the US than the negative health aspect of the virus is the economic impact.
How does this impact the global economy?
The coronavirus’s impact has already been felt in the global economy. In the past 6 days the Dow Jones Industrial Average has dropped over 3,200 points which equates to a 11% decline. This is historically significant and it shows how seriously investors around the world are taking the coronavirus. For weeks now the global economic impact of this virus has been felt mainly because of two factors: supply chains, and the Chinese economy.
China is the world’s largest manufacturing powerhouse. Quite simply, people have been under quarantine so they can’t go to work to make the products that need to be made. This puts companies all around the globe in a tight spot when it comes to inventories. Furthermore, the Chinese economy, which many global companies rely upon to sell their goods and services, is at a standstill. Until the past few days, most of the impact has been relegated to China and the companies which do business there, but now that the virus has moved on in a big way to other countries the panic is at a whole new level. So much of a new level that the 2020 Summer Olympics hang in the balance. There is news breaking that they might have to cancel the games for the first time since World War II.
How does the coronavirus impact the US Housing Market?
On Tuesday, February 18, 2020, I took some time to elaborate on how this virus can ultimately impact the US housing market as part of our most recent Housing Market Update. Click here to view the Housing Market Update recorded video. The discussion about the coronavirus’s impact on the housing market begins at minute #12. That said, that particular discussion was from the perspective of the virus largely being contained in China. Now that it has moved on and the financial markets are in a steep decline this whole discussion has taken on a new level.
There is no doubt that the US housing market is chugging along. In that video, you will see all sorts of strong statistics proving this point. However, it is my opinion that a potential global economic crisis, started and accelerated by the coronavirus, could cause the US housing market to slip into its own downturn. If the virus takes hold in the US, we too will need to quarantine. This means events will be canceled, schools closed, offices closed, etc. Some businesses already have so many external factors stressing their financials that a 60-90 day economic standstill could be the nail in the coffin. If businesses close, jobs are lost, so on and so forth. Couple all of this with the aggressive global monetary policy of the last 12-15 years and we might just have a recipe for the next US recession.
We will prevail
God willing, the men and women at the center of preventing a coronavirus pandemic in the US will produce an effective vaccine in short order and speed up the manufacturing of coronavirus test kits which are necessary to stem the spread. I have faith in those men and women, and I also have faith in our great country to respond in times of need. That said, it’s in all of our best interests to be engaged and to pay attention to what is happening because the coronavirus is not going away anytime soon.
I took a client to see 50 homes and they decided they did not want to live in the territory that I serve… 😡 Yes, this scenario takes Buyer Agent frustration to a whole new level.
Why does this happen?
Living an hour north of New York City, many folks look to the Hudson Valley, my current marketplace, as a possible place for relocation out of NYC. It has great schools, land, and proximity so that clients can commute into the city for work. However, many buyers are still learning about the area that they want to end up in. Often, a realtor can receive some unintended collateral damage given a client’s learning curve of their ultimate desired location.
Mitigate Risk By Planting Referral Seeds
This situation can be a very typical Buyer Agent frustration – the client is unsure of what areas to relocate to and while I am happy to take them around, it can often end fruitless. Months of time spent, miles put on my car, gas costs incurred, days seemingly just lost, gone. And, what am I to do? As a buyer-agent, taking on any client brings about some risk, we all know that. But, the question I’m most interested in is – How can we mitigate risk in a situation where a buyer decides that your service territory is not where they want to be?
Short Answer: Planting seeds. I’m not talking gardening, but I am talking referral.
Many realtors are not thinking “referral” from the onset of a relationship with a client, but they should be. And, they should be planting seeds with their clients when they start the home search process to not only mitigate risk, but to possibly capitalize on the positive relationship they are building with that client.
What does that look like in practice?
When you first meet with a client and you know they are relocating, you should always assure them that you are going to show them everything in your marketplace. Next, you should be clear and specific and let them know that if they should change their mind about the area and want to try a different marketplace that you can refer them to another quality agent. Let them know this before you even start your search.
What are the benefits to the client if you refer?
Be sure to tell your client that you hope to help them find their dream property, but that should things change, there are many benefits to them if you are able to refer them forward.
Put you with a quality agent who knows the marketplace well.
Warm up the agent for you with all of your likes, dislikes, preferences, and other details so that you can hit the ground running with your home search.
Make sure you avoid any sales pitches and save valuable time during your home search.
Always give you my advice – I stick with you and am always available to answer questions.
Why have this conversation?
Through planting these seeds early on, you are helping your future self and your client. No client wants to feel awkward when they realize your marketplace is not for them and they do not know how to tell you. Letting your clients know that this may be a possibility will help you both in the process. Do not be afraid to plant seeds and to refer. As you continue to search with clients, properties can still land in your territory, but they can become too far out or even a region of which you are unfamiliar. Too many realtors drive too far and waste too much of their time when they and their client would be better and happier if their realtor (you) referred them to a local, regional agent.
So, be sure to remember to keep the end in mind when you begin with a new client. Plant those seeds early on to streamline communication. Should your client need to be referred forward, use NuOp to select and vet a possible agent should you not already know someone in that territory. Additionally, use NuOp as an easy way to refer to a professional you already know, too.
NuOp simplifies the referral process. Using this tool reduces the risk you take on with your business, giving you time, money, and assurance located within one technology. Every time you spend time, you are taking on risk – so why not reduce your risk and your level of Buyer Agent frustration and pass along your client to someone who knows the local territory? Secure that referral and use the NuOp referral app to make it happen.
This post was co-written by Geoffrey Green & Lindsey Quistgaard. We hope you enjoyed it!
We have all heard stories of people who displayed great courage to achieve great things in their lifetimes. People like Winston Churchill, Ray Kroc, Michael Jordan, & George Washington quickly come to mind. It’s no secret that it takes courage to achieve success.
What is far more secretive is the fact that constant acts of courage are needed just about every day to achieve success in one’s life. When we think of courage most of us think in terms of big acts that yield big results, but it’s really the lesser-known acts that truly make us successful.
Breaking from the status quo requires courage
Perhaps the first success hurdle which requires an act of courage is breaking from the status quo. If you have a good job, but have always dreamed of starting a business, it will certainly require an act of courage for you to take that chance. If you normally watch football with your friends every Monday night, it takes courage to end that routine because you need to work late on your business. If you normally meet friends for breakfast every Saturday morning it takes courage to say you can’t do it anymore because you need to train for your upcoming marathon.
Breaking from the status quo can be frightening, and it requires serious courage to make it happen. This is a “big” act of courage which will only require many more “smaller” acts of courage to succeed.
Once one does break from the status quo and then becomes resolved to accomplish a goal it then takes follow through to see that goal through to successful fruition.
Courage is needed all day long
I know for a fact that most people who achieve great success monitor closely when they go to bed at night and when they wake up in the morning. I think we all can agree that waking up before the crack of dawn, day in and day out, requires some courage. The easy way out is to turn off the alarm clock and go back to sleep.
Now that you are out of bed what is your next step? Are you going to drink coffee and scroll through your Facebook feed? Or, are you going to have the courage to put some healthy food in your body and get some exercise so that you have optimal energy to power yourself through the day?
When your workday begins what will you do with it? Have you had the courage all week long to manage your schedule properly? Did you have the courage to say no to meeting requests that aren’t going to help you achieve your goal? In other words, did you tell your friends that you can’t watch Monday Night Football anymore because you have to get up at 5 am every day in order to achieve your goal?
Acts of courage are needed all day, and every day.
Good decisions require courage
At a young age, I was told: “Integrity is doing the right thing when no one is looking”. Of course, at the time of hearing that, I was probably doing something which lacked integrity, which is why it was told to me, but needless to say, that statement couldn’t be more true. What is implied by that statement is that it takes courage to make the right decisions.
Many times good decisions are hard to make.
I am an Entrepreneur with a focus in Real Estate Brokerage, Investment and Software Development. While all of my business endeavors have required constant acts of courage to make the right decisions, I have learned the most from my role as a salesperson. Any sales business is tough because there is constant failure. In other words, you are told “no” way more then you are told “yes”, and that quickly tries your patience and, in turn, your integrity.
Here are some examples of tough decisions that require a Real Estate Salesperson to dig down and find the courage to come to the right decision. Perhaps you can see how these same examples apply to your business or profession:
My Client’s home, which I have listed for sale, is overpriced and won’t sell. I recommended this price to them and now I need to recommend that they need to drop their price.
If this is you are you going to bury your head in the sand or are you going to muster the courage to have an honest conversation with your client?
I have shown my Client 45 homes and they haven’t made any offers yet.
If this is you are you going have the courage to request a meeting with your Client to discuss why this is the case?
My technology skills are lacking which ultimately affects my ability to market my client’s homes for sale as well as my ability to market myself.
If this is you are you going to muster the courage to block time to learn so that you can acquire the skills that you need to advance your business?
I am overwhelmed with workflow and I need some help.
If this is you are going to find the courage to stop what you are doing and find the right person to help you so that your business can continue to grow? Once you have the person are you going to courageously set aside your own time so that you can pour yourself into your new assistant to ensure the work gets delegated properly?
I just got an internet lead. I will wait 10 minutes until I finish talking with my buddy to call them.
If you get internet leads for your business are you going to be courageous enough to contact them immediately? It’s proven that leads which are contacted immediately convert at higher rates.
Courage is needed to live a meaningful life
Perhaps you are an Entrepreneur who has already achieved lots of business success, but perhaps other areas of your life are not where you want them to be. In Stephen Covey’s book “7 Habits of Highly Successful People”, he writes about “sharpening the saw” which translated means taking the time you need to renew and refresh yourself so that you can be more effective at what you do.
So how do you measure up on being renewed and refreshed? If the answer is that you don’t feel either of those, and your business is the reason for it, then you need to put systems and processes into place so that you individually can take a break from your business while it still thrives. Of course, this too will take courage, because it will add cost to your business, and require more of your time to initially put these systems and processes into place. With that said, feeling renewed and refreshed each day is worth working towards is it not?
Go For It!
In summary, constant acts of courage are needed at every turn if you want to achieve your goals. That nervous feeling in your gut can only be eradicated by courage. Rather than trying to ignore those feelings simply muster the courage each and every day and go for it. What you will find is that if you increase your acts of courage your level of success will rise.
According to the National Association of Realtors 2018 Profile of a Home Buyer and Home Seller report 64% of Sellers and 53% of Buyers find their Real Estate Agent through a referral by a friend, neighbor, relative, or they use the same Agent they had in the past.
In short, Friends, Neighbors, Relatives & Past Clients are the four pillars of any Real Estate Agents business.
So, what about the other 36% of Sellers and 47% of Buyers? How do they find their Real Estate Agent? As one could imagine there is a myriad of other sources, but the simple fact is that Zillow and Realtor.com capture the vast majority of those Buyers and Sellers.
Using simple logic one could deduce that humans prefer a personal connection when selecting a Real Estate Agent. Why? It’s simple, buying or selling real property is a massively important transaction in one’s life. It’s also complex.
So, if a personal connection to find one’s Real Estate Agent is so important why do such a large portion of Buyers (47%) seek an alternate method to one of the four pillars noted above? Well, it’s actually quite simple. Many Buyers are moving to an area where they don’t yet have many personal relationships established. And this is where Real Estate Agents have always dropped the ball.
Real Estate Agents have the unique ability to help their clients transition from one marketplace to the next due to a well established and unwritten rule. It’s the rule of the referral fee. For generations, Real Estate Agents have been referring their clients to one another and for doing so a referral fee is exchanged.
A referral fee can range between 25% – 40%. This can equate to thousands of dollars.
So, if a Real Estate Agent can earn thousands of dollars for simply referring their client to another Real Estate Agent why isn’t it done more often? Here are the top three answers we often hear when we talk with Real Estate Agents about it:
It’s not easy to find the right Agent.
Clients want the info right away, so I guess going to Zillow is faster for them.
I have been burned in the past by another Agent so I am hesitant to refer my clients anymore.
The inspiration to build REALLY came from this question: “why isn’t there a tool which allows Professionals who serve the Real Estate Industry to connect, communicate, and securely exchange referrals with speed and ease?”
REALLY, and it’s “REALLY Easy Referral” process is a game-changer for Real Estate Agents. This is the tool that solves the three problems noted above because it accomplishes the following:
Members of REALLY simply send their client referral through the system and candidates come to them.
Using the REALLY Easy Referral process takes minutes, and replaces old processes which took days or even weeks.
Members of REALLY hold one another accountable with the power of community. A Member of the community who breaks the trust of another is certain to tarnish their reputation.
It may seem like David vs Goliath, but REALLY is on a mission to help Real Estate Professionals take the lead generation power of their industry back from the likes of Zillow. Why? Because our friends, neighbors, and relatives clearly prefer it that way!