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Published by OREP, E&O Insurance Experts | Oct. 12, 2011 | Vol. 234

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"For appraisers, diversification is the key to survival and prosperity in the new real estate world."
 

Editor’s Note: Diversification is one of the keys to survival and prosperity in the new real estate world. Busy or not, right now is the best time to begin laying the groundwork for future success.   

Building Business: What's Next?
By Lore DeAstra, MBA, SRA, CDEI

Most appraisers have been on a roller coaster ride unlike any other. Now that the Home Valuation Code of Conduct has sunset and the April 1 implementation date for Dodd-Frank has come and gone with little changed, have you thought about your next steps? For appraisers, diversification is the key to survival and prosperity in the new real estate world.

This article gives you easy ways to set measurable goals that will increase business to diverse target markets. As a result, these quick tips will help you keep your eye on your goals– helping others while increasing income.  

 


 

Start where you are. The first question to ask is: how much more business do I want? Set a realistic goal that is measurable. For instance, “I want to increase our appraisal business 20 percent in the next 12 months.” The easiest way to accomplish a goal is to break down the task into believable steps.  

Current Appraisals per Month Average Fee Monthly Gross Income Annual Gross Income Increase Gross Income by 20% Monthly Gross Income Projected Appraisals per Month
10 $350 $3,500 $42,000 $50,400 $4,200 12


Using these numbers, you would need to complete two additional appraisals per month to increase your business by 20 percent. Breaking down the task into small increments makes a daunting task believable.

10 Minutes a Day
Are you willing to spend 10 minutes a day to increase your business? Start small so you can obtain effortless victories, such as one phone call a day. Earning new business has a 10 percent success rate, while referral business has a 65 percent success rate according to Tom Hopkins, the most successful sales trainer in the world. Who do you contact? Open up your database and contact everyone you know who fits your target market such as your attorney, banker, accountant, insurance agent, sales agent and friends and neighbors.

What do you talk about?  According to Hopkins (Selling for Dummies), one should never begin any selling cycle until you have taken a few moments to put yourself in the shoes of the other person. For instance, ask them how they are, and how you can help them per assignment or based on an hourly rate such as:

  • Attorney: appraise properties involved in estates, trusts and divorces;

  • Banker: appraise or review properties in their portfolio;

  • Accountant: appraisals for tax or trust purposes;

  • Insurance agent: appraise real estate via cost approach for their policies;

  • Sales agent: measure homes for their listings, complete a pre-listing appraisal, review their competitive market analysis or offer to answer questions at a sales meeting;

  • Neighbors: complete a market analysis of their home for tax and insurance purposes. If you are competent, offer to compile an energy audit for a small additional fee to help them save on utilities bills.

Bottom line: you will receive a better reception with less effort contacting people who are familiar with you and your work. If you are like me, rejection is de-motivating.  Are there any meetings that your target markets will attend? Search in your area for functions based on your target market. Functions might include conferences or luncheons attended by real estate sales agents, appraisers, attorneys, paralegals, bankers, accountants, government agencies, or mortgage companies.

What else can you do? Deliver candy attached to your business card to everyone in the office. Do you blog? Offer to mention them and their company. Send an eCard to those in your contact list. Use the social media sites (Facebookİ, LinkedInİ, MySpaceİ) to keep in touch or send them information that interests them. Ask them who they can refer that will benefit from your services. 

There are many books, classes, and seminars available nationwide. Many are online that will help you with various topics. You may learn a new skill and earn continuing education (CE) at the same time. As your confidence and script improve, so will your pocketbook. How do I know? While writing this article, I made three phone calls that took about half an hour. Within a few days, I received an appraisal assignment from a referral. Besides, it was easy and fun to reconnect.

Take a few minutes, NOW, to determine the type of clients you have, who you want to work with and how you can diversify while developing mutually beneficial target markets. Determine a believable amount of money you want to earn and let your fingers go crazy! Who knows, you might even enjoy catching up with folks you have not connected with for awhile.

Lastly, if you pass along your success stories to Lore@continental-appraisal.com, I will compile a follow-up article that is a win-win for everyone. Thanks!

About the Author
Lore DeAstra is author of FHA - The Future of Financing: eBook and Checklist available from Working RE/OREP. Please click to learn more.

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