Real Estate partnerships: The Tips

To get the real estate job done, you'll form many partnerships -- some of which will last as long as a single deal and others that'll last for years and years. In this section, I take a look at those who will join you in the dance of real estate sales.

Earning respect from your peers

The sales arena - and certainly the real estate sales arena - is a magnet for those with big egos. To earn the respect of other real estate agents, you have to perform and succeed. Your peers will base their respect on how they feel you perform in the following three areas:

Production growth. When you produce, you get noticed. In fact, many of your associates will notice your success even before you see a commisssion check, because they'll notice your name on the company listings board.

At first, they may attribute your success to luck, thinking "He got good floor calls," or "He hit a hot streak," but as your listings keep appearing, their respect will build.

Few agents perform consistently over the long haul. Most have a good month, or quarter, or year, but only a rare few constantly finish at the top of the income list. However, when you do, your peers will most definitely notice and share their respect.

Business ethics. Because the commissions can be large, many people feel that acting unethically is acceptable. For many agents, money, or the opportunity to make money, too often exposes character flaws.

Be an exception. Maintaining your values even in the most competitive situations enhances your own self-respect while also earning the respect of your peers.

Life balance. Agents notice and respect other agents who have their priorities in order; who manage not to be controlled by their businesses; and who carve out good chunks of time to spend with their friends and families. Few agents manage to earn a large income while also protecting their personal time. You'll be recognized and respected as one of the best agents in the country if you can strike this important balance.

Working with Agents in your office

Nearly all agents are independent contractors earning no base salary and depending entirely on their own skills, actions, and activities to create income. This pay structure breeds competition within the industry and within each company. The trick is to balance that competition with cooperation.

Striking this balance isn't always easy. Invariably, you'll end up competing with agents inside your own firm for clients and dollars. One example of many is finding that the agent in the next cubical over is working on the same lead you are. This situation is usually the result of a prospect who chose to work with several agents at one time but who didn't reveal the lack of allegiance to any of them. Later, when one agent writes the contract - after both showed the home - well, you can imagine the office arguments I've seen. This situation certainly presents a moment where a good broker makes a diffference. A good broker can mediate the issues between the agents, making sure that the client is getting good service while handling all the interpersonal issues between the agents.

To succeed in this competitive office environment, follow this advice:

Use the other agents as mentors. Nearly all agents owe a debt to some other agent who helped them along the road to success, and they feel a sense of obligation to repay the favor by being similarly helpful to a new agent like yourself. Find a mentor. When you do, be respectful of the mentor's time, take action on the mentor's advice or counsel, report back on the success you achieve, and say thanks over and over again.

Help other agents serve their clients better. Agents announce their "haves and wants" - the homes they're working to sell and the homes they're seeking for clients - and few agents even tune in. Be an exception.

I made a lot of money matching haves and wants for other agents. When I'd hear an agent describe a buyer seeking a three bedroom, three bathhroom, $250,000 home in the Riverside School District, I'd share information on my two listings that could work and would ask if they'd shown them. I'd also mention that I'd seen a great house on Elm Street listed by another firm that meets the description. By helping the other agent better serve his clients, I was also serving my clients by generating showings for them.

Hold open houses for other agents. Open houses can be burdens on the schedules of busy agents. Offer to serve as a stand-in host, supporting your associates while also giving yourself an opportunity to create prospects and business.

Ask other agents to work with you on listings. If you lack skill or experience in a certain price range or geographic area, you risk losing a listing to a more established agent. Be preemptive instead. Ask a more estabblished agent in your firm to co-list the property with you. Through this short-term partnership you'll capture the opportunity to expand your business while you learn and earn.

Cooperating with agents in your marketplace

More than 90 percent of all real estate transactions come through the MLS, which exposes their availability to agents throughout the marketplace. As a result, you're constantly working jointly with agents from other firms to achieve sales. As you work with these agents from other firms, form cooperaative relationships by following this simple advice:

Deal with the other agents honestly and fairly. Give them the information they need about your client or the property without giving too many details. Always remain aware of the fiduciary responsibility and privacy protection you owe your client.

Involve brokers when necessary. If problems arise between you and the other agent, enlist the help of your broker. If paperwork comes back too slowly or you feel you're not getting the full facts, get your broker, or the other agent's broker, involved. Move quickly if you sense that a lack of cooperation is affecting your client's security in keeping the transacction together.

Developing strategic partnerships

Mortgage originators and loan officers lead the list of strategic partners who can help you get real estate deals done. These people play an essential role in securing your clients' loans. They can help you expand your business through several avenues:

They can help you serve lower-credit clients. Mortgage originators who are skilled and have a broad line of loan products are open to loan requests from a broadly diverse economic segment, which increases your pool of prospects.

Some mortgage originators invest in joint marketing efforts. These programs may consist of sending mailers to your sphere of past clients or to prospects in your geographic area, buying e-mail lists and respondding with e-mail marketing messages, buying Web site ads, or paying for a banner along the bottom of your real estate magazine ads. Depending on the arrangement, the mortgage originator may pay for some or all of the costs involved.

Mortgage originators can help convert leads. Most agents make the mistake of getting the mortgage originator involved in a transaction too late. They wait until after they've secured the client relationship to introoduce their loan partner. Make the introduction earlier in the lead converrsion process. Tandem lead conversion is a powerful strategic partnering technique.

The odds of lead conversion rise significantly when two strategic parttners are working the same contact. Once one of you achieves a faceface meeting, you both win, because either of you can cross-sell the services of the other.

The mortgage originator can play the role of a prospect's professional advisor. While most prospects view agents as salespeople, their psyychology toward mortgage originators is quite different. They tend to see and trust mortgage originators as consultants rather than as the salesspeople that they truly are. By forming strategic partnerships with your mortgage originator, you can put that psychology to work and secure more clients more quickly. I've seen agents increase their closed transacctions by over 25 percent through this simple tandem lead conversion approach.

Also form a strategic partnership with your title company. Title representaatives can help you conduct research and establish geographic mailing lists. They also can provide statistics that help you see what homes have sold and at what prices over past years, including which areas and neighborhoods have seen the highest number of sales.

Each state and province has different rules regarding how much information they can share. Check with a title representative or your broker to find out the possibilities in your market area.