Broker Michael Mongomery talks CRM's and Agent Success
How important is a real estate CRM to an agent's success?
Besides your real estate licence, a CRM is the next most important tool to an agent's business. I would say it's more important than your website, social media account, and your car. We are in a relationship focused industry and with the vast number of an agent's transactions coming from their networks, agents need a CRM to keep this vital part of their business in order. NAR has put out some remarkable statistics in previous years where they say less than 20% of buyers use the same agent when it is time to sell. This all stems from not staying in touch and not providing constant value to your network. We need to nurture, educate, and entertain our databases - all of this is not possible unless you have a database.
How important is building client relationships to an agent's real estate business?
It's basically the business we are in. We are selling ourselves much more than we are actually selling homes. Yes, we need to know our product, but the transactions all come from relationships. Even if the relationship was formed from an online lead or door knocking, you still need to build a relationship with this person to move them to know, liking, and trusting you. It's been said that your "network equals your net worth" and this could not be any more true in real estate sales.
Where are some of the most common mistakes agents are making with their databases?
The first mistake is not having one. Once that is solved, the main mistake I see is agents not reaching out to their database. There are endless justifications around "not knowing what to say" and "not wanting to bug them", but what most agents forget is this is the food on your table. Reaching out to your database is part of the job and 9/10 people will be delighted to hear from you. Much of the hesitation comes from a place of fear -- when we need to understand that these people want to hear from us. They want to show us their house, tell us about their upgrades, and to chat. Of course, there are strategic ways to interact with your database but the biggest mistake I see is inaction.
How do you help new agents create a business plan for success?
The Renzo Real Estate business plan is built on reverse engineering one's goals and implementing a plan. We actually look at the number of people in your database and the number of people you need in your database to be successful. Most new agents want all the success in real estate instantly (I don't blame them) but we work to look at a long-term strategy to build a sustainable business. We speak a lot about your streams of business and how we are going to fill your database with the right people to help your business. Once the business plan is formulated, the real fun starts - the execution. Success in real estate requires focused execution day in and out.
When building that business plan, what role a CRM has help agents work towards reaching their goals?
The business plan is reverse engineered to determine the number of people you will need in your database to reach your achieve your goals. Without a CRM it's a huge challenge for agents to organize and carry out their plan. Given our business plan is built around your database and your CRM is the core of your database, it's very hard to reach your goals without a system. I can virtually guarantee that an agent's production will improve with a CRM that they use.
Do you have any advice or top tips for new real estate agents getting started in the industry?
We have tons, but here are a few tips.
1) Think long term - getting your first deal is important but remember you are building a long-term business. So don't worry if you don't sell a home in your first month, just keep doing the daily activities required to reach your goal.
2) Execute - there will be a number of different tools, lead sources, bright objects to pull you in every direction. Stay focused on your strategy and don't give up. There is no shortage of information out there in order for you to be successful, but it's not the amount of info, it's what you do with it. We say that "if you do what others won't then you will have what others won't have". Keep executing your daily activities.
3) Build relationships - get ready to be talking to everyone you can and building relationships every day. Start by rekindling old relationships and letting everyone know you are in real estate. Then start building out a plan to fill your database with great people. It doesn't matter if you know everyone in town or only one person, everyone has to make a plan to succeed. And don't worry, you can build relationships in fun ways! Sports, hobbies, friends of friends, events, and so many more!
4) Learn - Fill yourself up with every bit of knowledge out there. Don't miss an opportunity to learn something new about sales, real estate, or your city. This never really ends but it's extremely important as a new agent.
5) Work on your enthusiasm and confidence - these are two of the most important skills in sales (And I say "skills" because they can be learned)
6) Have some fun in the industry - yes it's a challenging career filled with uncertainty, emotions, fear, ups, and downs, but remember to take time for yourself. Build relationships in your own way and remember to stay positive.
How do you know RealOffice360™?
RealOffice360™ is our preferred brokerage CRM provider. They provide such a robust and user-friendly product to the modern day agent. Their structure makes it perfect for a brand new agent and a long time, top producer. It is a fantastic CRM built by amazing people!