How to be a Million Dollar Broker (Pt1)

So I’ve been on a couple of real estate reality TV show’s, and inevitably the questions arise.

“What happens on the show is real, right?” (no)
“It must be super competitive, yes?” (yes)

The entertainment aspect of these shows dictates that the productions don't just show up and see’s what happens, they create and deliver drama to an audience that crave’s it with NYC real estate as the backdrop like a movie set.

To these lucky few agents, the publicity and notoriety resulting from these shows feeds them an enormous pipeline of customers. For every other agent and broker, a multitude of techniques, connections & systems must be employed if they hope to do well enough to live comfortably in one of the country’s most expensive cities.

If you are thinking of getting your license and making it in the fast moving residential real estate business, I have a few suggestions based on my experience in the market, selling over 400 condos, co-ops and buildings.

Move into a Building you can work

When I first took up real estate I had a brilliant manager named Chris Peters who advised me to move to a building where I could be “The Guy”. Coming from a $400 /month basement studio in Queens it would seem insane to move into Manhattan and spike my rent, but that's exactly what I did. I went from $400 per month to $2,500 per month in one enormous bet that is still paying dividends today.

The fact is appearance is everything in life and in real estate getting the chance to meet property owners is what you live for. On any given day you can meet 2–10 owners in a condo building between the lobby, entrance, elevators and hallways. Knowing you’re one of them gets you a foot inside. Look sharp and act courteously as well? That's two feet.

Researching every past and current sale and rental and literally becoming an expert in the numbers of the building will also help you as well. Inevitably someone will say, “I live in the A line, What do you think I could get for my place?” Having an answer immediately as opposed to “Let me run some comps and get back to you” makes you the expert in the moment and guarantees your eventual success, should you combine your people skills & locational relevance with informative, succinct marketing.

Death, Taxes and Hearing From You

That’s right, by showing up regularly in the mail, at open houses, in the lobby, throwing customer appreciation events and any other way you can get in front of your building’s residents, you will become the defacto expert real estate agent of the building and start to win referrals by the staff and other residents because you have successfully sold them on the fact that you are the expert.

Regularly timed mailings to your target clientele are much more important than a beautiful one-off mailing. It takes maybe 6 months worth of marketing before people will remember your face and name and come to respect or even pay attention to what you're saying in your pieces. As it relates to hard mailings, I’ve spent probably hundreds of thousands of dollars in printed brochures & mailings over the past 15 years selling New York. When you do commit to a mailing campaign be prepared to think long and hard about what it is you’re offering and what exactly makes you special.

There are dozens of choices to be made that will effect how people will view you and your brand. The thickness and color of the stationary, the stamp choice, the ink choice, the fonts, the layout, the envelope choice, the amount of info to share or hold back, the different ways of contacting you, the size of the mailer, 1st class or bulk.

Then there’s the actual pool of prospective buyers or sellers. Owner /Resident or Mr Bob Jones. Do you want to hit everyone or just the older owners? Do you include or skip the units that were just traded?

Speaking of whom to hit, do not disregard any callbacks for rental help vs a listing call. Half of my clients started off as rental clients and when they got tired of being landlords or wanted to do something else with their money I was the first person they called for the sale.

Make it special from the very first showing

Once you’re in a building you can work, organize residents-only previews of new listings and do custom invitations a week ahead if possible. As soon as people hit the door introduce yourself in a very warm relaxed style befitting a neighbor and use humor to lighten the mood and the room -especially if it’s an empty apartment. “Hi guys, great to see you. I hope you brought your checkbooks”. At all of my previews I offer bubbly. It could be domestic, champagne or prosecco — most people are just happy to have something to drink as they walk around the apartment. Not unlike a cocktail party you should work the room, spending 5 minutes with each neighbor and asking them which unit they are in. A good trick to get people’s info is to say that you have a residents only monthly newsletter you can send them on email covering issues relevant to the building and the neighborhood. They will likely give you their cells as well.

The very next day send them a short follow up note in the mail or by email or text. They will have forgotten about you otherwise and you will have wasted some good bubbles.

I also have scented candles, light jazz and even some horderves for the neighbors to nibble on. They will keep coming to your events if you offer more than just real estate. One of the main things you want to find out from each neighbor is if they are looking to buy as an investment or possibly move up or down within the building. Almost everyone will downplay the level of their interest so be prepared to ask a few extra follow up questions that will better help you determine if they are long or short term prospects.

The After Party

I cant tell you how many times I’ve held apartment previews where the guests have asked if I could pop in for a quick look at their homes after the open houses. This is a very good sign that they are looking for guidance and your professional opinion as it relates to the value of their home and possibly to do or not do certain improvements.

I almost never blurt out a price to anyone unless I know with certainty the most recent sales that would support that opinion and what if any price the owner has in mind already. What you want to sell them on is not your ability to spit out prices like a stock ticker, but your warmth, sharpness and professionalism. They will very likely hire you if they like you and will certainly never consider hiring you if they don't. So Job 1 is be likeable, relaxed, confident and not too pushy. The fact that you live in the building and have offered them wine plus a few extra minutes of your time means you have a real shot here. They may already have another broker in mind however or have promised the listing to a friend or maybe want to use all of your tips to just sell it on their own. How do you determine your best next move? First you need more information from a variety of sources so when you do speak to them you can give them the very data they will make their decision on.

That's called stacking the deck in your favor and the topic of the next lesson…