How to Prioritize Your Real Estate CRM Database?
There are so many ways to build a successful real estate career. Lead generation, referrals, investor clients, corporate to name a few. For us, we like working with people we know so we have focus on how to build a business around those relationships you already have, your sphere of influence (SOI) or centre of influence (COI).
Whether you know it or not, the people you already know are buying and selling real estate so your job is to figure out who they are and to become their real estate agent of choice! How? You need to know how to prioritize your database.
Your Friends & Family Transaction Rate
People are buying and selling real estate all the time, deals are out there to be had! What’s even better? People you already know, who already like you, are buying and selling real estate! Did you know that on average, for every 10 people you know, 1 person will buy or sell this year?
We ran the numbers for our local real estate market to confirm this:
- Number of Calgary resident-occupied Households: 466,725 (Statistics Canada 2016)
- Number of owner-occupied Calgary Households: 333, 465 (Statistics Canada 2016)
- Average Number of annual sales: 20,000 (CREB 10-year average)
- Average Number of transactions/sides: 40,000
- Calgary Transaction Rate = 11.9% or ~1/10 (40,000/333,465)
So, you want 10 deals this year? You need to be the agent of choice for 100 of your friends! Simple as that! Now 100 people is a lot to focus on, so where do you start? Good question…let’s continue on!
I have a bunch of clients in my database, how do I know who to focus on?
This is a great question and we have put together a simple two-step formula:
1. Do you know who they are? If you have to think about who “that person is” when you see their name in your database…don’t waste your time! You have other clients you can focus on!
2. Look for change. Facebook is amazing for this and it’s kind of like working and playing at the same time. Next time you are Facebook, look for big changes:
a. New kids
b. New animals
c. Older teenage kids
d. Company promotions
e. Company layoffs
f. Big trips abroad
g. Getting married
h. Getting divorced
i. Ranting about horrible commute
If you start taking this approach when on Facebook, you will start to see potential deals everywhere. People usually only decide to move after their home no longer fits their needs. These are your friends and family, so who better to know than you to know that they need your help…if you get really good, you will know that they want to move before they do!
Once I make my shortlist, how do I reach out?
This is the best part, give them a call or send them a text and ask to go for a coffee (or lunch)! If you don’t have time to follow-up immediately, make sure you mark those on your shortlist in your real estate CRM. I would call these friends and family members “Prospects” and add them to my Business Tracker for now.
Ready to reach out and not sure what to say? Keep it simple, you wanted to reach out and catch up as you “saw the big promotion” on Facebook (or whatever)!That’s it! At your meeting, don’t talk about if they want to buy or sell, but wait, look for change and when the conversation comes up about you and “How’s the market?”, it’s time to go to work!
Good look and happy prioritizing!
With ❤️, The RealOffice360™ Team