Y’all Have Problems, I Have Solutions
Back in 200 BC, a playwright named Titus Maccius Plautus wrote, “You have to spend money to make money.” What he didn’t say—and probably should have—is that y’all have to spend money where it matters. Also, what were people even buying in ancient Rome? Wine and gladiator sandals?
Here’s the thing: almost nobody tells you how to spend your money to make your money. Believe you me, there are plenty of entities happy to take your check, but how many of them actually give you the return on investment you need? The question on how to get that ROI has plagued us real estate agents ever since we sold those first cave dwellings with the dirt floors. (And yes, the pictographs painted on the rock walls did convey.)
The good news is, I have answers on how to improve return on investments for buyers, sellers, and agents. So, let’s get into the business of all things ROI.
THE REALITY OF REAL ESTATE
Quote Me on This
Peter Drucker, management guru and all-around legend, once said, “If you can’t measure it, you can’t manage it.” That is why measuring your ROI is such an important part of your marketing efforts—otherwise, how do you manage it? Hope alone? No. No, ma’am. In the words of James Cameron, “Hope is not a strategy. Luck is not a factor. Fear is not an option.”
When you’re spending your hard-earned dollars on marketing to generate leads, inquiries, and (fingers-crossed!) sales, you need to be able to measure that ROI. This is why I’m so dang impressed with the company SignMore. One of their services is answering your calls anytime you need them to, 24/7. We all know good and well that people are not patient and if you don’t pick up the phone, they’re gonna make calls until someone will. A missed call is a missed opportunity.
SignMore has a team of property receptionists, so your callers will always reach a live person. Period. This is where measurement comes into play. Y’all will have an improved ROI, as you can directly measure the number of inquiries from your marketing efforts and can match back the number of qualified leads from your campaigns! Amazing! And even better? SignMore can give you a dedicated business phone number for your specific marketing material to make this process even more accurate. This way, you can figure out which of your marketing materials and campaigns have the biggest impact on your lead generation, which will help you grow.
So, I am pleased as a pig in a puddle to partner with SignMore, because they are all about your ROI. They know what you do and they have tools to make it easier and more effective! They offer a host of property-centered services–managing your calls, scheduling appointments on your behalf, qualifying your leads and more! Even better news? I have a SignMore promo to share with all of you! As a Glennda Gazette reader, get 30% off your first three months on SignMore’s Best Value Plan!
Just visit signmore.com/glennda
This post is sponsored by SignMore, but as always, the thoughts and opinions are all mine.
ONCE UPON A TIME WITH GLENNDA
I Am About to Get Mathy
Our job as agents is to explain to our buyers and sellers what they’re looking at when it comes to the return on investment of what’s likely gonna be the biggest financial transaction of their whole lives. That’s why we know it’s so important to not only get it right, but to explain it in the simplest possible terms.
The formula for figuring out the ROI when selling a house is calculated by dividing the profit the seller makes on the sale by the total investment they made in the property. It looks like this:
ROI = (Selling Price – Purchase Price – Costs) / Purchase Price
Selling Price: the final sale price of their home
Purchase Price: the original price they paid for their home
Costs: any costs associated with selling their home, such as your commission, the closing costs, and repairs
For example, if your seller buys a house for $200,000, spends $20,000 on repairs, and sells it for $250,000, their ROI would be 25%.
ROI = (250,000 – 200,000 – 20,000) / 200,000 = 25%
If your seller gets 25%, y’all are damn lucky because the average ROI for residential real estate in the US is about 10%. That said, your sellers’ mileage may vary and the ROI they can expect depends on a few factors, some within their control and some within yours:
The location of their home
The condition of their home
The current market conditions
Your marketing and sales strategy
If you want to maximize your sellers’ ROI, it’s imperative that you price the home competitively and market it to the right buyers. Y’all have got to be on those sellers to make sure the home is in good condition and staged well, highlighting the best features. And keep them patient, making sure they are willing to negotiate.
There are some other mathy bits that are important when it comes to maximizing your clients’ ROI as well. For example, there’s the time horizon of their investment. The longer they’ve owned the home, the more likely they are to see a positive ROI. The financing costs are also a factor, as are the tax implications and benefits.
Oh, my stars, that is enough math for one day. Let’s move on to getting y’all that ROI.
Now, when it comes to personal ROI in your business, I must encourage everyone to think outside of the box. When I made that first payment to my videographer Denver, I had no clue we were about to create lightning in a bottle. We filmed eight TikToks and four long-form videos in a three-hour session. I have to be honest, I went into all of this so blindly. I did no in-depth research on him, I just went with my gut feeling of having met him and seen his work. I just got the vibe that he would get me. (Spoiler alert: he did.)
Our first session wasn’t perfect, through no fault of Denver. Those four long-form videos? We had to toss them because they were not compelling. But those eight videos? We were able to work with those, and then build on them, and now… well, you know the rest of the story.
However, one of the most effective ways I’ve created ROI has nothing to do with the interwebs. Nope. Instead, it’s all about cake, which is on brand when you consider my last name is Baker. I got into the habit of sending custom cakes at closings. When I represent the buyer, the cake says “Welcome home.” Sellers get one that says “Sold.” And I don’t forget the loan officer, mortgage rep, or other agent. I am like Oprah Winfrey here, all, “You get a cake, and you get a cake, and you get a cake!”
What is so funny is that when people don’t use me in the initial transaction, when they buy or sell again, they often come to me because they remember the cakes. The return on investment is multi-fold. I mean, they help me acquire new business, build my brand, and make me memorable, and what could be better than that?
Wait, I know this answer!
What’s even better is they often tag me on their socials and suddenly I get hundreds (or thousands) of more eyes on me in the least cost-prohibitive way possible.
And that, friends, is the sweetest ROI of all.
A lot of people have asked me about the closing cakes… If you’ve ever wondered what the story was behind them, here it is! #G#GlenndaBaker… See more
I cannot even tell y’all how excited I am to introduce today’s guru! If Maya Vander looks and sounds familiar, it’s because you’ve seen her on Netflix’s Selling Sunset. She earned her spot on the show because she’s been so successful in bringing the right clients and properties together through her strategic marketing plans. (Obviously, Maya understands the importance of ROI.) Maya sets herself apart by being a trusted advisor and can be counted on to remain calm and focused no matter how complex the sale (or in the case of the show, the drama).
Maya grew up in Israel and came to Los Angeles in 2002. She switched coasts to open the Maya Vander Group, where she handles luxury condos and properties in all price ranges. So now she’s busy selling Miami.
Words of Wisdom
“Don’t be reactive to your fears and don’t be afraid to try something new.”