Today, I want to further explain this metaphor "Plant in the Spring. Harvest in the Fall" in a way you've never heard me explain it. Within this explanation, I will give you techniques to pivot to the new normal in real estate brokerage. That new normal is "low inventory" and because of this new normal, I want to make sure you are "planting the right seeds?"
I've used the metaphor "Plant in the Spring. Harvest in the Fall" to explain the Law of Gestation for your business. Gestation is defined as a set time, incubation or gestation, for every seed (physical or spiritual) - a specific span of time it needs to follow to come into a physical form. The Law of Gestation is needed to explain the importance of patience, which is a mindset that we as brokers/entrepreneurs struggle with consistently. We want things NOW especially in this instant gratification world we live in. Today, I am going take you through this metaphor in great detail in hopes that you have some major take aways from it.
Let's make a couple of assumptions before we jump into my explanation of this metaphor:
- Let's assume that you've decided that you want to "plant a garden" in your backyard (your business). Many of you live in the city and might not have a back yard but go with me on this.
- Let's also assume that you've tried to plant a garden before in the past but it just never fully took off for whatever reason and you know that you have to do something different during this planting season. (Business with stagnant growth).
- Or, you're going to plant a garden for the first time and not sure where to start. (new business)
- Or, you've had a consistent thriving garden in the past but not quite sure what to plant this year. You want to be more efficient and plant just what you need and or may want. (Evolving business)
Here are the steps you go through:
- Make the decision of what type of garden you want or need (vision).
- Prep the land, pull dead plants and weeds and till (elimination).
- Make final decisions on what to plant (take inventory)
- Do your research, plan and plant (processes and systems)
- Weed (set boundaries) water (nurture/provide value) and wait (patience). This is the gestation period.
- Harvest
- Learn, review and journal (repeat)
So that's the process. You can't rush it. You have to be consistent and tend to your garden every day but a professional gardener knows what to plant based on current growing conditions. This is where I want to get into a real teaching moment based on the growing conditions (real estate market) that we are in right now. Get ready to take some notes.
You need to categorize your clients (seeds) into 3 categories the "initial consultation" or "listing presentation". This is important specifically with buyers so you don't waste the clients' time or yours. "Time" is everything if you want your garden (business) to survive. Here are the 3 buckets that you need to identify:
- "Buy/List Right Now" (hot list) - For the buyers, the funds and approvals are ready and there is a defined need for change in housing situation. They know what they want, what they can afford and know the location. The seller is ready to list. They have an asset they need to move for whatever reason.
- "Wants to list/buy but timing is in question". (warm list- 3-6 months)
- "Early in the process" - not sure about if, when , where and how. - (warm list - 6-12 months or never). (This might just be a chance meeting or a phone call instead of a meeting.)
During your initial buyer consultation/listing presentation (yes! you need to meet with your clients), you'll be able to categorize on the spot and set expectations for this market. Let them know your process. A professional broker manages the process. The process doesn't manage them. Let them know how you operate.
Let's shift our focus to buyers right now. Let them know that there is no reason to look at homes until they are in Bucket #1. With the changing pricing environment and inventory, by the time they want to buy, their options will be different. In the immediate, you need to spend most of your time with the clients in Category #1 but you as the broker, need to put more focus and love into your warm lists especially Category #2. The biggest mistake I see brokers make in their prospecting is not putting enough time into the "water, weed and wait" clients (warm list). When I was selling, I found that about 20% of my "warm list" became part of my "hot list" each month while 10% would fall off completely (relocate or not use me). Also, don't pull the seed out of the ground to check if it is "growing." The seed will let you know by "sprouting." Just keep providing value to keep that lead warm.
The one factor that most brokers do not realize until later in their career is that the act of simply nurturing your "warm list" (prospecting) will produce significant returns over time. These are the seeds most agents forget to plant. People in your warm list know people wanting to purchase right now (hot list). If you are good at "weeding, watering and waiting," your garden will thrive. We all love to plant and harvest but it's the professional gardeners (brokers) that consistently weed (boundaries), water (nurture) and wait (patience) that harvest the best produce (production). I want you to come out of this call being more strategic with your time and better understand the law of gestation that creates the ideal produce in your garden. Being consistent in your "weeding, watering and waiting" strategies and processes will take out the peaks and valleys in your business.
