From 2020-2022, real estate agents faced many challenges. This hectic time started the trend of hopeful buyers, multiple bids, and homes flying off the market. In order to keep up, many agents began to back off of consistent follow up with clients and prospects.
And now, in a complex market where mortgage rates are volatile and consumers are fearful, agents are faced with a new challenge: how to reengage with their sphere of influence and build lasting relationships.
In a recent BAM Interview, Byron Lazine sat down with “the most authentic CEO in the industry” Nick Bailey. As the CEO of RE/MAX, Nick shared his insights on everything from competition in the real estate industry, to his time on stage at the T3 Sixty Summit, to why agents are failing.
It’s clear from their conversation that Nick Bailey is not your average CEO. In this post, we’re diving into his advice for agents who want to last in the real estate industry. And it starts with what agents are looking for in today’s market: a transaction-ready buyer or seller.
Of course, you can’t wait around until technology is able to hand over transaction-ready leads. But with the right approach, you can proactively engage your sphere and build relationships that lead to long-term success.
Where are your leads coming from?
During the interview, Nick shared a story of a newly licensed agent who had a great first year in real estate with 12 sales in 2022. This agent was excited to build on that momentum and make 2023 even better.
But as of May, he has not sold a single home this year.
When Nick asked where his business was coming from in 2022, the agent replied with a vague answer: “Everywhere.”
In order to do more business, you have first to determine where your past leads came from and then hone in on strategies that attract leads in every market. When you analyze what top producers who have been in the business for 20 or 30 years are doing, the answer becomes clear.
There’s something fundamental we have to learn about this, which is: Look at top producers. The vast majority of their business comes from repeats, referrals, and their sphere.
Reconnect with Your Sphere
Spheres have largely been ignored for two years. Before the pandemic hit, agents were constantly engaging with their sphere through a variety of proven methods, including handwritten notes, pop-bys, calls, emails, and other tactics.
Over the past couple of years, those practices have fallen by the wayside.
Your sphere is lonely. They’ve already forgotten your first name.
To rekindle those relationships and rebuild trust, it’s critical to make a concerted effort to reconnect with your sphere of influence—and to keep at it through all the changes in the market.
Agents Who Stand the Test of Time Support Clients in Every Market
In the midst of market frenzy, it’s easy for agents to become distracted and overlook the importance of maintaining relationships with their sphere and database. But those who prioritize these connections are the ones who will thrive in any market.
In times of market shifts and uncertainty, clients are looking for a safe haven – an agent who can offer expertise, guidance, and support when it’s needed most.
As Nick Bailey notes, the most successful agents aren’t just there for their clients when things are booming, they are also there when things are challenging.
In short, you have to show up when things are hard. By being a consistent presence in your clients’ lives, you can build lasting relationships and secure your place as a trusted resource for years to come.
BAM Interview with RE/MAX CEO Nick Bailey
For the entire conversation between Nick Bailey and Byron Lazine, tune in to the BAM Interview, or click any of the timestamps below:
01:10 How much change do you think is coming at the top level of this industry?
03:20 One of the biggest challenges our industry has
04:08 An on-stage riff with Mark King of Keller Williams
07:23 Why agents and brokers are returning to brokerages with a long history
09:13 Spheres have been ignored for two years
10:40 The CEOs who are missing from this year’s T3 Sixty
15:20 Why agents fail
16:50 CoStar returning to the residential space
19:20 CoStar vs. Zillow
21:30 The importance of consumer experience
25:00 There are 250 million leads annually—agents want more transaction-ready consumers
26:20 The role of AI in the industry
31:25 The next five years for RE/MAX