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Transaction Management

Sphere of Infulence - The Starting Gate

Your success in the real estate business may closely depend on how quickly you get out of the starting gate. Begin by contacting your "Sphere of Influence" and then move on to your next chosen marketing strategies.

Contact your "Sphere of Influence"

All the people you come into contact with are within your Sphere of Influence. In real estate, it is important to let these people know you are in the business – and could use their help.

Make a list of all the people you know. Your sphere of influence is probably larger than you realize. Here's a handy list to help jog your memory of who to contact:

Place a phone call. Or send a simple letter or postcard announcing that you are in the real estate business. Include your contact information and/or business card and a request to call you if they know of anyone who might need a real estate agent. A simple phrase "I Love Referrals" is a good way to let them know to keep you in mind.

Working with Friends and Relatives

The Beauty Of It

What could be better than having new business dropped in your lap? Sometimes for new agents, their first deal comes from friends, family or ex co-workers. There are two advantages of getting business this way. First, your expense in capturing this client was probably minimal compared to capturing a client via other means. Secondly, depending on whom you are working with, they probably have more of a built-in trust with you.

The Beast of Juggling Professional and Personal Relationships

Let's face it. It is hard to juggle both a professional and personal relationship with someone. Here are some things to be aware of and keep in mind when working with friends and family.

• Your friends and family may think of you in a "familiar" sense, but not in a "business" sense.
  
  
• Often times they want to see how committed you are to the business before they feel comfortable working with professionally.

• Even though you may try to explain what it is you do, they may not always understand it.
  
  
• Believe it or not, sometimes they will give business to another agent who has more experience, who works with another company that is better known, who farms their area, who has worked with them before, or for any other reason. This can be heartbreaking, but it happens.
  
  
• There is a tendency for friends and relatives to expect you to work for less commission. This is because a lot of them do not understand how much you will really get from the transaction. As an example, if your friend lists their home with you and the total commission compensation is $24,000, in their mind, they are giving you $24,000. They do not realize that this commission gets cut into many different slivers before you get your slice, which is less than they think.
  
  
• Due to the fact that selling or purchasing a home involves many complex elements, there's a chance that something unforeseen will come up. If something unexpected should happen or be discovered in the transaction, even though it is not your fault, your clients may secretly blame you. It may be harder to deal with them because of the familiarity factor.
  
  
• Also, if there is extra money to be paid out of their pocket, again, the tendency may be that they expect you to chip in.
  

Tips In Dealing With Friends and Family

Resist the tendency to act more casually and take things for granted when working with friends and family. You should take extra measures to:

• Educate them on the whole process of buying and selling.
  
  
• Break down exactly what services you will provide them.
  
  
• Explain how the commissions really work

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