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Here is how you double your business with a showing partner in 2024
Hint…You don’t need to hire real estate agents on a 50/50 split.
Daily with Steve is now Real Estate Operator
You can read about the brand change here
There are three main time drains in real estate that are essentially unavoidable.
Property showings
Prospect and client followup
Closing processes / paperwork
These aren’t time drains because they are a bad use of your time. They are time drains because they have a direst impact on your ability to get more business.
Let’s break down the showing process.
Prospect starts a conversation with you
A meeting (zoom or in-person)
Research is done
Showings are scheduled
Showings are held
More research (comps etc)
Offer is written
Offer is negotiated
That is the lifecycle of most buyer clients.
Now let’s talk about what the highest value activities are that you bring to your clients.
It is not showings…
Here is what your clients really rely on:
Market knowledge
Negotiations
Process
Here is what 99% of all clients want from you
Seamless process
Good, easy, and fast communication
Their financial goals met with finding the right home
An advisory partner to guide them to the finish line
They don’t place value on your “24/7” availability, your ranking, your brokerage, or your niche.
Remember, people build trust, not resumes.
I believe you can get to 3-5 buyer transactions per month before you hit your limit. (If you are doing it all on your own.)
A showing partner can easily double that.
Here is how we set that up.
For starters, let’s make pay really simple.
15% of the gross commission
You can do a per door and then a fee at closing, but there is more management in that.
When we launched this in the Phoenix business, I paid 15% for buyer side and 10% for the listing side. Our average sales price was crazy low.
So let’s say your average sales price is $475,000. You earn a 2.5% commission (yes I know this is going to change). The total gross commission amount is $11,875
You pay the showing partner 15% to handle all the in-person stuff. That is $1,781.25
What in person stuff?
Showings
Inspections
Property visits
Sign installs (if you do it)
Lockbox
Meeting appraisers
All of it
What about when the client wants to write an offer? Yes, you need to go see the home on your own.
Some clients will be one showing / one offer. Yes, pay the 15%. Some will also be 41 showings then one offer. Pay the 15%.
Here is the secret.
This works best with an all or none agreement. If you cherry pick the easy deals and just give the harder ones to the showing partner, you will have turnover.
If you don’t vet and sign agreements with the buyers you give to the showing partner(s), you will have turn over.
This is a partnership. You need to treat it that way.
I believe one showing partner can handle about 6-8 closings per month. Don’t hire one if you are only doing 1 deal per month. They won’t stay.
You have a showing partner, now who does what?
Jobs of the lead agent:
Selection process on what homes to see
Final viewing of home
Negotiation of the contract
Coordination of inspections (your closer should be doing this)
Negotiations of the repairs / contingencies
Final walk through
Responsibilities of the showing partner
Scheduling of the showings
Showing the properties
Getting feedback for all showings
Showing up for inspections
Property visits for any one off reasons
The showing parter does not negotiate and they don’t run comps. They are there to be the best experience for the client during the selection process.
If you do this right, you can have a showing agent work Wednesday through Saturday 1-7pm. This is the availability window not working hours.
Closing 7 deals per month working almost part time could end up being around $128,232 per year.
Who is a good fit for this?
This is NOT a step up position (meaning you have someone do this before they become an agent on your team)
This is a permanent role.
This is a high I role (DISC Profile wise)
They need to be social
They should live in the area you serve (this is super important)
You can easily do 200 deals per year with the following team:
Showing partner (2)
Listing manager
Runner
Virtual ISA (2)
Closer
Marketing and Ads VA
Notice I didn’t mention any buyer or listing agents.
In future posts, I will break down every role mentioned above and how you pay them.
Scale doesn’t need to be hard. It needs to be on purpose.