The other day, a few members of our product and sales teams got to talking about stories they’d heard recently from brokers. There were plenty of tales about legacy CRM systems and other outdated technology, but there were even more stories about offices stacked with paper and desktops crowded with Excel documents.
But to me, this one takes the cake. It’s about the real cost of relying on those antiquated systems to prospect and build relationships. (Names and locations intentionally left out!)
“I have a broker friend from my days working at a real estate development, investment and management company. He had spent time building a relationship with a man who owned three buildings in a popular business center in his city. These buildings were worth $1.5 - 3 million each, totaling about $7.5 million.
Earlier in the year, this man asked my friend to give him a call at the end of the summer to talk about a listing strategy. Ka-ching! The broker wrote a reminder on a post-it note and put it in his book of business.
Guess what? That note got lost in the shuffle and he didn’t find it until late October, about two months after he had planned to check in. He called his contact right away, apologizing profusely for the delay. But he was too late—his contact went with another firm to represent all three buildings, which of course was a HUGE miss on potential commissions that could have produced around $450,000 for my friend.”
Ouch. That one hurts to hear. (And even if you’re feeling good about not using post-it notes yourself, I’ll also remind you that nearly 9 out of 10 Excel spreadsheets contain errors.)
To avoid a situation like this, you can start by using a CRM to organize and connect your information. But even that’s not enough any more. The most productive brokers have technology to help them prospect systematically and strategically—so no one falls between the cracks.
Just contrast that story with this one from a Marcus & Millichap broker using Prospect & Nurture.
“A little while ago I got a listing in a pretty small, niche neighborhood in San Francisco. I was able to create a call list for that neighborhood specifically based on zip code and property type and then churn through my list of contacts in about half the time it usually takes. I could scroll through everyone who fit my criteria, skip the people I knew I’d just talked to recently, and then move on. The process was smooth and simple.
Another time, I posted a listing and it took me two weeks to circle the wagons and then sit down and evaluate offers. About a third of the offers on this listing came through calls I made in Prospect & Nurture.”
We want you to be the broker who keeps in touch with their network and earns the commission, not the one who loses the post-it note. To do that, take a moment to look at a tool that can help.