What would happen if you listed and sold 23 homes in 2023? The average closing price currently in the United States is $380,000. Let’s use $400,000 to keep the math easy. On average, that would gross the listing agent $12,000. Let’s say the net profit to that listing agent is $9,600 on that transaction after fees, etc. $9,600 x 23 = $220,800.
That’s a good reason to list and sell 23 homes in 2023. That’s about two per month. We’ll show you 13 ways to create those listings, but before we do that, let’s think even bigger for a moment.
Let’s say that each of those 23 listings produces at least one close-able buyer or another listing in the same neighborhood, which is entirely likely when you follow our proven systems. This would make your 23 listings into 46 closings. $9,600 x 46 = $441,600.
If your average sale price is higher than the national average we referenced earlier, modify your math and you’ll see that you can make $500,000 selling about two homes per month, assuming your costs aren’t crazy!
Game on? Things to consider before you accept the 2023 challenge:
You will have to actively contact both people you already know as well as those you don’t know. People you know are past clients, people in your sphere of influence and agent referrals. People you don’t know are everyone else. Are you willing to speak with both to earn your roughly $500,000?
Analyze where your business came from last year and keep doing what has worked. Ditch what has stopped working. Consider doing more of what worked. For example, if you had five transactions from repeat clients, but you didn’t have a system to speak with your database regularly, how many more repeat clients could you create this year by being more drilled down on that source of business, following a more systematic approach?
You must be willing to do what you don’t want to do. If you keep doing what you’re doing, you’ll keep getting what you’re getting. To go to the next level financially, you must go to the next level with your skills.
You must ask for help when you need it. Don’t waste time re-inventing the wheel, sampling or trying things out.
Still in? Let’s look at the 13 effective lead sources to get you those 23 listings in 2023!
1. Expired listings.
Expired listings are at the top of this list because of the following:
- They clearly want to sell and many have to sell. These are the listings you’re looking for!
- You know what is probably the wrong price. Your comparative market analysis is much easier on an expired.
- The agent you would have competed against (the one they thought would get the job done, who they probably already knew) is now out of the picture.
- The seller will correct negative feedback and reprice the home in most cases, creating a quick sale. The average number of days on the market for re-listed expired listings is always very low.
Bonus: Don’t forget old expired listings. You’ll have less competition and are more likely to get the seller the price they wanted in the first place.
2. Your past clients and sphere of influence.
Otherwise known as your database. Statistically, when you have regular and real conversations with your list, 10% of them will either do business with you or refer business to you every year. This could be 10 of your 22 listings if you have 100 people in your database and you speak with them regularly, at least once per quarter but ideally once per month. Don’t get mad when another agent lists “your” past client if you’re not making the effort!
3. New Build Sales People.
These are the salespeople who sit in the builder’s model homes and write up all those new construction contracts. Use our New Construction Plan (if you’re a Premier Coaching Member) to meet those new build reps and get all of their resale referrals. When someone builds with them and they have a home to sell, what happens to that lead? This is a fantastic lead source because you can have one new build salesperson contact who sends you multiple leads per year. What if you had five new build salesperson relationships?
4. For Sale By Owners.
When the market is hot like it’s been for so long, there are always plenty of unrepresented owners who need your help. Most of them give up on the process if it’s not sold in the first two weekends. There are luxury-priced, unrepresented owners in today’s market as well. This is a great opportunity because many of them have not yet bought, could build with you or purchase with you.
5. Open Houses.
Refer to our podcast, “How to not just ‘sit’ and open house, how to monetize them!” Our open house system and scripts are proven to generate a bare minimum of three close-able buyers or sellers every time. It’s all about choosing the right house, promoting the open house, using good scripts and having relentless lead follow-up. Many of our coaching clients have spun this source up into a very predictable listing machine. If you’ve failed at open houses before, you’re missing a key element of the system to make it work.
6. For Rent By Owners.
Investors who own single-family or small multifamily units are an amazing source of new listings for you. This is one of the easiest scripts to learn and polish because it’s a simple business conversation. If the home is vacant and for rent, might the owner rather sell it versus continuing to keep it as a rental? Offer to do a free comparative market analysis so they can make an educated decision and see what that does to their plans. Again, potentially one contact and multiple transactions. Maybe they want to re-invest in different properties with you. Maybe they want to cash out their entire portfolio while prices are high. You won’t know if you don’t ask. You’ll also love this source because the phone numbers are easy to get!
7. Small and medium-sized builders who are building homes on “spec.”
This means they’re speculating that the house will sell. There are many iterations of this, all of which we teach in Premier Coaching, but what is working for our clients lately is to identify buildable lots and take them to the small builder. You sell the lot and list the spec home, often bringing the buyer as well. Use NewHomeSource.com and simply search “New Construction” in your area to see what opportunities there are for you.
8. Flippers.
Sure, they might sell the home on their own (refer to previous For Sale By Owner point), but flippers often will list with you so you can bring a buyer to them before they’re actually finished with the flip. This helps them because they can flip more homes in less time. A bird in hand, so to speak. Meanwhile, while you have it listed and they’re finishing it, the house generates more and more buyer and seller business for you. It’s a win-win!
9. Probate.
Not many agents prospect probate leads because they don’t understand it. Probate is simply the process of selling a home after someone passes away. The court appoints an executor of the estate who can then sell the property. If keeping the home in the family is not an option and the executor wishes to cash it out, that’s a listing. Sometimes they’ll re-invest the proceeds in real estate, sometimes it’s just the listing that you’ll sell. Either way, they need someone caring and competent to get the job done.
10. Your professional Center of Influence.
When was the last time your favorite lender sent you leads? When have you asked? Whom do they know who is getting pre-qualified right now to buy and has a home to sell? Stagers are also great to know because smart sellers call a stager first. Refer business to stagers and ask for leads in exchange.
11. Investors.
Join your local investors’ club through meetup.com or private Facebook groups in your town. You’ll know who’s looking for what property and which investors are likely to sell. This also will give you insider information about “pocket” listings, which can benefit your buyers.
12. Door-knocking.
This is not at the top of the list because it generally takes more contacts to take a listing, but it is still effective when you’re consistent. Door-knocking can help you become more comfortable speaking with people about real estate, and many times you’ll be at the right place at the right time and indeed take listings from being there. Before you go door-knocking, choose your neighborhood wisely. Does it turn over much? What’s the average sale price? What’s currently active, pending and recently sold? What’s being built around the neighborhood? Is there new construction nearby? Become the go-to neighborhood specialist and use good scripts at the door. Start with your own neighborhood since you already know it well.
Secret: Refer to our podcast series about door-knocking!
13. Relocation.
While the referral fees can be steep, so can the sale price, which offsets some of the cost. Picking up a few “relo deals” per year can be a good supplement to your normal listing sources, but should be avoided as a main source of business since it isn’t much in your control. The good part is that like most listings when worked the way we teach you, it can create more listings that do not have referral fees.
Convinced you can list (and sell) 23 homes in 2023? If not, why not?
For many of you, you’re probably feeling comfortable with at least two or three of the 13 sources. Start with those and really drill down to increase your contacts and your level of skill. If you need scripts and skills, you’ve come to the right place! Just ask for help. Waiting is not profitable.
Once you’re getting results from those two or three sources, it’s time to add the next one. You may even have “dabbled” in all 13, but not really taken each to the next level. What would happen if you decided you will take 23 listings this year, no matter what and simply do what we’ve laid out for you in this podcast series?
For those of you who are already listing and selling at least 23 homes per year, which of the 13 sources do you still need to add to your skillset to take your business to the next level? Who will hold you accountable?
Where will you find the support you need?
Tim and Julie Harris host a podcast for Realtors called Real Estate Coaching Radio. They’ve been professional real estate coaches for more than 20 years, helping agents succeed in many different market conditions.
