There are many sayings you will hear often during your Real Estate Career. One of the most popular sayings is “LIST TO LAST”. When people mention this, what they are referring to is the idea of concentrating more of your business on the Listing side instead of working more with Buyers.
The reason is simple really. By concentrating your business on the listing side provides more opportunities for more business and more chances to help more people get moved.
If we look at the following scenario you will see the difference and why this makes sense.
When working with buyers you really only have one opportunity for business. The final conclusion of your efforts hopefully results in a sale of a current listing on the market. Generally unless you are fortunate enough to get a referral from your client because of the outstanding service you provided (everyone should be doing this!), then there really is no other opportunity for more business.
If we look on the listing side however, we see quite a difference.
Imagine you have a new listing and you market to all your normal marketing streams. You have your Sign in the yard, your listing on your website and perhaps an ad in the local newspaper.
While doing an open house for your listing, someone comes to look at the home and decides to purchase it, which you help them with. They also mention that they would need help to sell their home and of course you offer your services for that as well. Your marketing techniques resulted in you finding a buyer for your own listing!
Obviously you see where I’m going with this, you now have 3 sales (Ends) instead of 1. You have done 3 transactions, where working with buyers you would only had an chance to do 1. You now have an opportunity to do more transactions instead of just one each time.
Now this scenario may not happen that often, but it never happens when working on the buy side. While working with buyers you can only really ever do 1 transaction.
There really is no other opportunity for more business when working with buyers. You find them a great home to live in and get them moved. But there are really no marketing opportunities to attract another client.
This is why I suggest if at all possible, to try to be more of a listing agent. I’m not suggesting not working with buyers at all, that would be silly. But if you can focus more of your business on getting listings you should be far better off.
A 70/30 listings to buyers ratio is what I always coach Realtors® to aim for, your business will be very healthy heading into the future. With each listing you have marketing opportunities to attract the next client. The Yard Sign, Your Website, the Listings Ad in the paper, just listed and just sold flyers.
You now have many things working in your favor to find the next client.
Don’t forget there is one more thing to think about!
Another big thing to consider is the difference in time commitments on each side. When working with buyers, it can take as much as 3 times longer to do a deal than dealing with Listings. Driving buyers around to see properties is very time consuming. Booking houses to show, offering feedback, negotiating any offers, booking and doing inspections all take time.
Where as working with Listings you spend more time up front, doing the initial contract paperwork. You work your marketing plan as well but you are not having to cart people around door to door looking for homes. The Buyer Agents are doing that. Your Listing should be getting showings without much involvement on your part. Some offices do all the bookings for their Agents so all they may receive is a page to let them know that a showing took place.
The amount of time is controlled much more to allow you to spend more time on prospecting for more Listings.
The truth is, without listings we have no product to sell. As long as agents have listings on the market, they will still have a strong sustainable business.
So the next time you sit down to work on your business plan or setup some new goals, think about how you want to run your business. Perhaps set some new goals for the next 90 days.
Double or Triple ending your own Listings can go a long way to putting many more dollars into your pocket and for a very profitable Real Estate Career!
All the best and good luck!
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