Real Estate Training
How can Real Estate use Geo-Fencing?
“People will not buy what Geo-Fencing is, they’ll buy it because of what it can do for them!“We do not provide leads, sales, or calls. And, if you state otherwise, or simply lead the customer to believe so, you will lose credit for the sale. Do not tell Real Estate agents that we will get them started and show them how it works. This is an implied promise of results.
We Guarantee Exposure – Not results!Real estate agents will often selectively hear only what is implied. For example, if you tell the client that we can get started today to get you some calls and that payment can be made 30 days later, he/she may hear that they do not have to pay if they do not get calls. The real estate industry is loaded with pay-per-lead services, and therefore anytime the client perceives that payment is contingent upon results they are likely to agree to sign up and then later cancel. As a HTH sales agent, you must resist word play.
“Say what you mean and mean what you actually say!”Geo-Fencing is the future of marketing!
- Are you tired of wasting marketing dollars that you can’t track? We can help you reach selected groups using our targeting groups and we’ll send you a traffic report at the end of the month to show you where your ad was seen and how many contacts you received. How amazing is that?
- Would you be interested in a proven strategy that will help you use your real estate knowledge to make bigger commissions? We can help you reach selected groups using our targeting groups with our specific targeting groups.
- Would you be interested in a program designed to help you stand out in the sea of real estate agents? We can help you reach selected groups with our specific targeting groups.
- I’m sure you would like to spend less money on those pesky business expenses, right? We can help you reach selected groups using our specific targeting groups.
(If they are near a computer walk them thru www.easygeo.org)
Why Should You Care About Real Estate?Because if you understand the material in these modules, and can explain the Real Estate Bullet Points to your potential clients. YOU WILL MAKE MORE SALES AND EARN MORE IN YOUR BONUS CHECK! It is that simple. If you need additional help, do not hesitate to ask. Your trainers are here to help you. As with most questions, the answer lies in dollars and cents. These modules are designed to help you understand what it is like to be a real estate agent, and then in turn become a great agent for your customer. So, we urge you to familiarize yourself with the Real Estate Bullet Points.
Real Estate Agent Facts
- According to the National Association Of Realtors, there are generally 1.2 million registered real estate agents in the U.S. at any given time.
- 65% of all real estate agents are female, average age of 53, with at least some college education
- Real estate agents are paid on commissions. That is, when a property is sold – one that they have either listed or personally sold, they are paid a percentage of the total sales price. Typically, there is a 6% two-way split between the agent for the buyer and the agent for the seller, but at times there is also an additional split for the agents’ brokers – which means it can possibly be a 4-way split.
- For example, if the property was sold for $100,000, and it’s a two-way split, the sellers agent would receive $3000 and the buyers agent would receive $3000. If it were split 4 ways, each agent would receive $1500.
- The average new home sales price in 2017 was $385,200, and would result in $11,556 in commission for each agent if split two-ways or $5778 if split four-ways.
- However, unlike other consumer items, the average American home buyer purchases just three (3) homes in their entire lifetime, and since nearly 50% of the American population earns $30,000 or less per year, the pool of eligible buyers at any given time is limited.
- In 2018 there were only 5.3 million non-new home sales in the U.S., or 5 homes sold per agent on average.
- For a real estate professional, this means that the supply of potential customers is limited, and that the demand among real estate agents for these customers is high.
- And, this also means that although repeat customers are critically important, each customer’s home purchase is often separated by as many as 10 or more years.
- Thus, it is critically important for real estate professionals to acquire and nurture a significant quantity of quality leads, and to stand apart from all other agents.
GeoFencing Benefits for Real Estate Agents
- GeoFencing is one of the most technologically-advanced ways of advertising
- GeoFencong helps advertisers get their company out in front of the people they are likely to work with
- Target groups allow agents to focus their advertising dollar on the demographics they most desire
Here’s What You Can DoAs a Sales Agent for the Hometown Hero Project, you have the ability to offer real estate professionals exposure to millions of people and target specific demographics. Hopefully, after familiarizing yourself with this information you should be excited about the opportunities you have as the middleman in this market. Do not tell real estate agents that we will get them started and show them how it works. This is an implied promise of results. We Guarantee Exposure – Not results!
One More ThoughtAs you know, numbers on the whiteboard are meaningless without ultimate payment. HTH provides great exposure to the Veteran community as well as niche marketing opportunities for the real estate professional. We do not provide leads, sales, or calls. And, if you state otherwise, or simply lead the customer to believe so, you will lose credit for the sale. Real estate agents will often selectively hear only what is implied. For example, if you tell the client that we can get started today to get you some calls and that payment can be made 30 days later, he/she may hear that they do not have to pay if they do not get calls. The real estate industry is loaded with pay-per-lead services, and therefore anytime the client perceives that payment is contingent upon results they are likely to agree to sign up and then later cancel. As a HTH sales agent, you must resist word play. Say what is actually meant, and mean what you actually say. The obvious and easy answer is simply to ask for payment – even if it is just the first payment. Let’s face it, if a business cannot afford at least the first payment then what are the chances that this business will ever have the money. You need to understand that all businesses should have cash on hand for day-to-day operations, and generally if they cannot afford a single payment upon order then they are likely not a real business and will not be in business long. We only guarantee exposure as well as marketing materials that will help them create a niche market for themselves. We are transparent and upfront in all of our interactions, these are the cancelable and non-cancelable products that they are purchasing: The term Realtor is a copyrighted (owned) term. Real Estate agents cannot call themselves Realtors unless they are members of the National Association of Realtors.
The top reasons why real estate professionals succeed:
- They understand their market
- They maximize productivity from each market lead source
Market size is an important factor in being successful in Real Estate. If there are 10 agents in a town of 1000, the number of homes for sale at a given time is likely to be less than the number of agents. This is a small market with too many agents. On the other hand if those same 10 agents worked in a city with a 100,000 people there’s a better chance that each real estate agent will make sales.
Even in very large cities, agents fight for their piece of the pie, and many will do a lot to get a bigger piece. With GeoFencing we can help offer agents more exposure to the people more likely to buy or sell a home. Exposure is important. A face and a name mean a great deal in the real estate industry, and we want to help them get that exposure…help them have more notoriety in the area.
The Department of Veterans Affairs (VA) offers home loans and grants. These programs help service members, veterans, and surviving spouses buy, refinance, or modify their home. The VA guarantees part of the loan, meaning they will cover a portion of the loan if you default. This allows lenders, such as banks and mortgage companies, to offer you more favorable terms.Private mortgage insurance typically costs between 0.5% to 1% of the entire loan amount on an annual basis. On a $100,000 loan this means the homeowner could be paying as much as $1000 a year, or $83.33 per month – assuming a 1% PMI fee. At 5 percent down, private mortgage insurance (PMI) costs $150 per month on a $250,000 home, according to PMI provider MGIC. Condominiums are ideal starter homes. Their price point is often lower than that of single-family homes. And, condos are often the only affordable option in many cities.
Become confident in your knowledge about the VA loan. We have Veteran targeting groups that will give real estate agents more exposure to the Veteran population. Your knowledge of the VA Loan will present a picture of professionalism to the agent you are calling and lets them know you understand their business. Moreover, many agents would love to be able to focus their advertising dollars on Veterans, because they are generally easier to work with, and they end up making more money
Home Improvements and Structural Alterations (HISA)This grant provides medically necessary improvements and structural alterations to Veterans/Service members’ primary residence for the following purposes:
- Allowing entrance to or exit from their homes
- Use of essential lavatory and sanitary facilities (e.g. roll in showers)
- Allowing accessibility to kitchen or bathroom sinks or counters (e.g. lowering counters/sinks)
- Improving entrance paths or driveways in immediate area of the home to facilitate access to the home through construction of permanent ramping
- Improving plumbing or electrical systems made necessary due to installation of home medical equipment
- Walkways to exterior buildings
- Widening of driveways (in excess of a 7ft x 6ft area)
- Spa, hot tub, or Jacuzzi
- Exterior decking (in excess of 8ft x 8ft)
- Veterans and Service members who have a service connected condition
- Veterans who have a non-service connected condition rated 50% or more service connected
Specially Adapted Housing (SAH) grant—and how much funding does this grant offer?Veterans may be able to get an SAH grant if they’re using the grant money to buy, build, or change their permanent home (a home they plan to live in for a long time) and they meet both of the requirements listed below. Both of these must be true. the Veteran must:
- Own or will own the home, and
- Have a qualifying service-connected disability
- The loss or loss of use of more than one limb
- The loss or loss of use of a lower leg along with the residuals (lasting effects) of an organic (natural) disease or injury
- Blindness in both eyes (having only light perception) along with the loss or loss of use of a leg
- Certain severe burns
- The loss or loss of use of one or both lower extremities (feet or legs) after September 11, 2001, that makes it so they can’t balance or walk without the help of braces, crutches, canes, or a wheelchair Note: Only 30 Veterans and service members each fiscal year (FY) can qualify for a grant based on the loss of extremities after September 11, 2001. If you qualify for but don’t receive a grant in 2019 because the cap was reached, you may be able to use this benefit in FY 2020 or future years if the law continues to give us the authority to offer these grants and we don’t go beyond the new FY cap.
Tips For Successful Real Estate Agents
It is a generally accepted fact that the Real Estate business is a dynamic and thriving industry. This is why so many people gravitate to it. In fact, there is no better way to earn a living. You practically set your own hours, you are selling a great commodity, and home ownership is a large part of every American’s dream.
According to the Case-Shiller Index housing prices have appreciated nationally at an average of 3.4% per year from 1987-Present. And, some areas are luckier than others. As of 2010, Austin, Texas actually averaged 8.9% yearly appreciation over the last 20 years – even taking the downturn of the Great Recession into account!
And yet, only 10% continue on in the field after the first year.
As you likely know, there are a ton of blogs, websites, and seminars dedicated to teaching the magical techniques to becoming the top agent. We are not touting ourselves to have the magic bullet, but we have compiled what we believe to be some common sense tactics in your overall success strategy.
1. It’s a Business, Not a Job
“A man who doesn’t know how to count his own money is soon separated from it”
It is suggested that the main reason for failure as a real estate agent is simply because most think of their job as primarily a sales position – and do not fully understand that it is a business.
Let’s assume you sell five (5) homes per year at the September 2017 new home average selling price of $385,200; and, your share of the commission is 3%. How much did you earn for the year? Is this revenue or earnings or both?
This may seem straightforward, but this is the most common error people just starting out in business make. For most agents, they are not simply a sales representative, rather they are operating their own independent business.
Three percent of $385,200 is $11,556, and multiplied by 5 home sales per year equals $57,780. But let’s not mistake this amount as take home pay. Many folks will just put this money in the bank, and simply think of it as their earnings. But, that is misleading.
Even assuming there is no further split with another agent, that $57,780 is gross revenue. The agent’s net income will be less.
Everyday, huge corporations with gross revenues of millions of dollars go out of business because they have NO earnings, and the real estate business is no different. The agent must understand the difference between revenue and earnings to succeed in their business.
Whatever is left from that $57,780 after deducting all business expenses is earnings.
So, how much should a real estate agent expect in business expenses?
According to the National Association of Realtors Member profile for 2015, the yearly average expenses for a sales agent is just over $6300 or $525 per month.
Thus, our example agent would earn a net income before taxes of $51,480 ($57,780 minus $6300). According to National Association of Realtors 2016 Member Profile, the median income for an agent working between 40-59 hours per week earns $60,100.
However, many agents neither anticipate or accurately account for their business expenses such as, MLS fees, taxes, marketing costs, ongoing training, clothing, transportation, fuel, lockboxes, signs, office supplies, and the myriad of other expenses that must be deducted from the gross revenue earned.
As an independent business person, an agent should be focused on keeping a rein on expenses. And, as a HTH Sales Agent, you should explain how selling to buyers simply makes good business sense:
Boot Camp Tip #1: Just as with any new business, expect to invest heavily in the first few years on marketing. Your business is like a snowball. At first it is small, but as you roll it along it gets bigger.
If a real estate agent has not already done so, it is critical that they either invest in inexpensive accounting software, or hire a local bookkeeper. Generally, you should be able to find a bookkeeper for a relatively low monthly rate.
Then, it is advisable to have a separate bank account and debit/credit cards that the real estate agent will use exclusively for their business. This will help them focus like a laser beam on expenses, and it also keeps things simpler to analyze and understand.
We suggest that once an efficient bookkeeping system is established the real estate agent will likely discover some expenses that can be trimmed.
For example, I always knew that fuel was a high expense. Heck, I was driving a full size quad cab pick-up truck. But, after setting up a bookkeeping system that generated reports of my costs, I was shocked to discover that my fuel cost was nearly $170 each week! You can bet your bottom dollar I re-evaluated the need for a fuel efficient vehicle, and then reduced my annual fuel expense by nearly $4000!
The bottom line is to keep books, records, and know the results. We cannot overemphasize this enough. Count, recount, and manage the results. Treat every penny earned like a dear friend. And, as with all friends, show them you care and only allow them to permanently depart if absolutely necessary.
3. Consider Joining A Team
Often, real estate agents just can’t afford all the expenses associated with getting started.
An immediate solution to this is to join a team of Real Estate agents and share the costs. The downside is you will have to share commissions also, but there is a lot of upside.
You will be surrounded by tons of experience and the power of multiple lead generating sources. On balance, the vast majority of agents make far more NET income on a team than they do going it alone because of the often overlooked expenses of going it alone.
4. Appearances vs Competence
I remember once as a little boy in the 1970’s a financial planner came over to the house to meet with my Dad. I specifically recall being impressed because the guy pulled up in a brand new Pontiac Trans Am. After he left I asked my Dad how it went and he just kinda gave me that father-to-son look that said – the guys an idiot. I asked what was up, and my Dad said:
“Did you notice the $5000 Rolex on the guys wrist? Even if he is making $50K that’s 10% of his income, and I’m not going to let a man manage my money who can’t manage his own wristwatch”
Point taken. If this guy would have pulled up in a Datsun B210 while wearing a Timex I definitely believe my Dad would have respected his financial prowess much more if he coupled expertise with competence.
There is always the temptation to try to impress the customer, but often times the perception can be something completely different than expected. My advice is don’t chase the Joneses, and keep it prudent. Folks appreciate common sense and efficiency when dealing with anyone responsible for their investment – and a home is an investment!
Boot Camp Tip #2: Concentrate on showing off your competence. Showcase how you can save them money while simultaneously increasing their purchasing power. This will impress more than a shiny automobile.
Hopefully, your takeaway from this module is that it is critically important that each sales agent know this is a business not simply a job. And, to concentrate on his or her own finances, account for them, and concentrate on competence rather than appearances.
So, Let’s Put Boots On The Ground
The real estate industry rewards hard work and experience, and the average salary reflects this dynamic. According to the National Association of Realtors (NAR) 2016 Member Profile, agents that have been in the industry for more than 16 years earned a median gross income of $73,400 in 2015, and those who work 60 or more hours per week – regardless of experience, pull in $93,400.
We all have likely heard our parents say, “there is no such thing as a free lunch”. This holds true in science, as well as in your real estate business. Very rarely, if ever, does anyone just happen to fall face first into wealth. Normally, they or a family member has worked very hard for the opportunities.
So, let’s get to know more about a real estate agents business.
The average home buyer purchases just 3 homes in their lifetime, and the interval between purchases may be a decade or longer. However, according the U.S. census, 69.3% of movers stay within the same county and theoretically could use the same agent over and over again.
Developing a real estate business means more than simply hanging out your shingle – this means constructing a pipeline of customers.
Nearly all successful agents receive the bulk of their income from referrals. According to the NAR, of all low wage earning agents, 20% received their leads from referrals, while 60% of all sales for high wage earners came from referrals. This is largely because earning money in the real estate business starts out small, but grows over time. The more and more deals that an agent closes with satisfied customers, the more and more referrals and repeat customers they will receive. Good sales begets more sales.
This also means that as their real estate career matures the less and less they will find themselves worrying about where these sales leads will come from. Again, there is no such thing as a free lunch, and do not be distracted by the many shiny objects that will be offered as the magic bullet. Generally speaking, the more experience an agent gains, the more easily it will become to accumulate leads and repeat customers.
Thus, as in any business start-up costs, to include marketing, will be higher in the beginning and then level off – and, that their revenues will grow.
II. Advertising & Exposure
The first thing that comes to mind is internet exposure, and if you are reading this then it is likely that you are learning how to sell real estate agents a web listing on Hometown Hero Project’s comprehensive web directory, hthproject.com that includes a backlink to their business website and/or Facebook page, their own unique URL, the ability to upload photos of their property listings.
With HTH the real estate agent has artistic control over the finished advertisement. This is the opportunity for them to develop their marketing personality. Be sure to advise them to take an active role in this process. Remember the target audience of the proposed Ad, and focus the personality to talking relevantly to that audience.
III. Advertising Is An Expense – Yet Can Remain Your Asset
If you are familiar with accounting, you may think the title of this section is implying that you need to keep two sets of books. Any good bookkeeper will tell you that assets are depreciated over time, and advertising is an immediate expense.
However, what I am suggesting is that any advertisement that you own can remain part of your marketing portfolio and can be used again and again saving the real estate agent precious dollars on repeat production costs and other marketing.
Boot Camp Tip #3: Unlike many other platforms, any advertising production purchased through HTH is the customer’s property to use in any marketing of their choice.
Because marketing expenses are generally higher in the beginning of your real estate career, these strategic tips can potentially reduce long term expenses and should not be overlooked in the overall business strategy.
Boot Camp Extra: Suggest a 30 Second Video for their business, and the customer can use it anywhere to save money for years to come! Click here to see a sample.
Why are backlinks important? Search engines such as Google, Yahoo, and Bing are in the business of giving customers what they want, and one way they interpret your popularity is by how many legitimate backlinks you have to your website. For example, Facebook has over 32 billion backlinks to their site. Pretty darn legit!
So, if your customer is on Facebook, LinkedIn, Twitter or another website their HTH listing will be linked, and search engines will rank them higher.
V. Open Houses & Direct Marketing
Open houses account for over 12% of an agent’s leads, and 7% of listings. A key to success is for an agent to hold as many open houses as they can where they can shake hands, and distribute handouts to all those who attend. There is no better way to advertise yourself than personal contact.
Boot Camp Tip #4: Do not underestimate the power and the multiplier effect of handouts, nor the emotional response to shaking hands with someone who has a smile on their face.
VI. Follow Up
The psychology of sales tells us that three non-personal telephone contacts with a potential client will result in an emotional connection. Sounds simple, but you would be surprised how many sales agents don’t put this easy strategy into practice.
Think of any time you have sat and performed cold calls. The first call is generally an introduction. The second, a bit warmer “Mr. Jones, it’s Bob Sellers with Veteran Realty, if you recall we spoke the other day”. By the third call you easily make the leap to a jovial and friendly tone, “Hey Jim, it’s Bob with Veteran Realty, how’s the family, I think I may have sighted a winner in your house hunting”.
Also, ensure that the initial contact makes a good professional impression, and then make regular follow-up salutations that do not come off as patronizing. For example, just a note to say Happy Veterans Day, welcome the new baby, or simply to say hello. Consider calling leads that you have not spoken to in quite some time.
Remember – everyone is a potential lead. Develop good notes in your database of contacts, and make positive connections on holidays, Veterans Day, or simply as a matter of routine.
VII. Hustle – The Intangible
“Genius Is 1% Inspiration and 99% Perspiration” Thomas Edison
Let’s use a baseball analogy. Some say Pete Rose was the most talented baseball player ever. His personal statistics would make a sound argument for such an accolade. But, ask any of his peers and they will without hesitation tell you that what put Mr. Rose above the rest was not his innate talent, but his hustle – hence his nickname “Charlie Hustle”.
What we often lack in talent, can be made up for in tenacity and hustle. For you and the real estate agent you are contacting, this means beating the bushes, pounding the pavement, and going the extra yard.
VIII. Leads & Listings
As we already have discussed and know – the sales business is not a walk in the park. Especially in the real estate industry because unlike all other commodities, folks only purchase a few homes in their lives with long intervals in between. Also, according to the U.S. census only 12.5% of the population changed residence in 2010, and the trend is shrinking rather than increasing. But, renting is on the rise.
Ask just about any real estate agent, and they will swear that leads and listings are like trying to catch the wind. The point is, a sales agent must fill their database (or Rolodex if you’re an old codger like yours truly) with present and potential clients. Again, everyone is a potential lead.
There are many promises of gold over them there hills, nirvana just around that bend, and tons of cheap inexpensive leads falling like manna from the sky. But, in reality you must grind them out, and we suggest you work both sides of the fence – listing as many homes for sellers as possible, and acquiring potential buyer leads. Real estate agents need to work home buyers, home sellers, and renters.
Today, most successful agents work with both the buyer, the seller, and the rental market. Listings provide an opportunity for an agent to earn money if another agent sells the property, and leads provide the opportunity to not only sell your own listings but someone else’s too. Real estate agents are the matchmaker, and their expertise will make the difference.
Being a real estate agent is an independent business – not a hobby, that can only be conquered with tenacity and hard work.
Thank and remind the agent that they will be joining our greater mission that they should be very proud of.
The Hometown Hero Project provides agents more than exposure to millions of people and their families nationwide:
- Providing branding and awareness opportunities that instill emotional connections with all Americans
- Resources to help launch your commissions
- The freedom and peace of mind to purchase advertising productions – that you continue to own, thus reducing your long term expenses
- Providing tools to connect with your community and build lasting relationships
Killer One Liners
Get Real Estate Agents To Say “Yes” (with brief explanation)
- One of the biggest difficulties as a realtor is getting yourself to stand out among others in the industry. When your ad pops up on users’ phones across the city, you’ll definitely stand out.
- We can help you target the demographic you most want to work with. Want to target current renters looking to buy a home? We can help you do that!
- Do you only deal in luxury homes? We can help you reach out to households with incomes over $100,000 and qualifying credit. What more could you ask for from your advertising?
- In the dog eat dog world of real estate, being technologically current is important, especially with younger home-buyers. Our GeoFencing Ads are the newest form of advertisement delivery.
- Can I ask you question, most of the folks we speak to join our program because they want to either help someone find their dream home or to simply get more business. Would you be interested in a program that does both?
- Would you be interested in a program designed to help you stand out in the sea of real estate agents? Your ad will pop up on mobile phones in your city targeting users whom meet your criteria.(See next bullet point)
- Are you familiar with “Click-to-You” technology? (See next bullet point)
- With our “Click-to-You” technology, we offer consumers a direct connection to you that bypasses all other real estate agents! (All of our Banner Ads have the “click-to-you” technology – meaning that all a user has to do is click on the ad and it links directly to the real estate agent’s page)
- I’m sure you would like to spend less money on those pesky business expenses, Right?
- Our program can save you money in expenses because you own the rights to all Ads to use anywhere now and in the future. (We can also provide them their own landing page at a small additional cost – our program covers all their needs)
- Without spending an extra penny, as a member of our program we will link your ad via URL to any website, document, web platform, Facebook, Google+, etc.
- Have you ever looked into having a gif Action Ad custom made for your business? As you know, nothing attracts the attention more than vibrant movement. (Of course, you own the gif ad to use anywhere, anytime).