Your real estate brokerage is poised and ready for growth – you can just feel it in your bones that this is going to be your year!
But where is the smartest place to invest your hard-won dollars and limited energy?
New digital marketing strategies?
Grabbing as many new clients as you can?
Upgraded tech?
Actually, the #1 return on investment in growing your brokerage business comes from…
People.
I know, hiring can be expensive!
But building a strong team is also the critical puzzle piece that locks in your future growth.
Better yet, savvy staffing choices could launch your business right into the role of industry leader.
Quality People = Quality Service
While it can seem boring in its tried-and-true-ness, consistently good customer experience is still one of the most important things clients look for in a real estate brokerage.
Even in today’s land of higher interest rates and lower inventory, studies found that “85% of buyers and sellers who used an agent said that agent responsiveness was extremely or very important to their decision to use them.” (Zillow Consumer Housing Trends Report)
That’s a pretty impressive percentage of people who chose good service over bargain-basement commission rates.
And for real estate businesses that also include an in-house mortgage brokerage, that advantage could increase exponentially.
In a survey of over 1200 residential mortgage customers, most of them “reported that an “exceptional customer experience” was almost as critical to them as getting the “best rate.” In fact, first-time home buyers said that learning—either through online reviews or word of mouth—that a lender delivered an exceptional customer experience was the most important factor in their decision to choose a lender.” (McKinsey & Company)
If you offer amazing customer service to your customers, chances are higher that they will come back. And they may bring their friends.
According to the National Association of Realtors Profile of Home Buyers and Sellers, 65% of customers found their real estate professionals through referrals from a friend, neighbor, relative, or used a business they had worked with before.
That said… it’s not just about having the right people.
It’s also important to have enough of them to make sure each and every customer is treated to an exceptional customer service experience, no matter how busy you are.
And busy you most likely will be, as word of your careful attention to customers gets around.
Which is exactly the kind of “problem” that can turbo-charge your growth potential.
Diversity = Lasting Client Relationships
Shopping for a real estate professional isn’t like running into Target for a throw pillow.
Buying a home can be one of the biggest purchases people make.
While they don’t really care where they buy that throw pillow if the price is good, they do care about working with someone they trust when it comes to dealing with huge amounts of their hard-earned money.
They need to feel good about the people (and the business) they are working with.
But not everyone on your team will have the same experience, strengths, and skills.
This is a good thing.
A diverse team can mean that you have the perfect fit for each step of the process, or each flavor of customer.
Where one person is amazing at taking the time to walk nervous first-time buyers or sellers through the whole process…
Another may kill it with a seasoned real estate investor using his just-the-facts approach to delivering bottom-line info.
Diversity can also open up your business to new markets and growth opportunities.
At the same time, it can give you the flexibility to grow your current client base by catering to different needs, tailoring solutions to each customer, and delivering the personalized service that is crucial to building lasting client relationships.
Boom.
Let’s not forget too…. Landing a new client is expensive.
Way more than retaining an existing one.
So, while new clients are important to business growth, there’s a lot to be said for making an effort to retain the ones you already have.
And you can (literally) take that to the bank.
More Cooks = Faster and Better Soup
If you started your business as a one-man band (or even a two- or three-man band,) you know all too well that sometimes there are just not enough hours in the day to get everything done. Especially when you are tackling tasks that are sooo not in your wheelhouse.
Creative business-building ideas, innovation, and problem-solving – all hallmarks of a team environment.
They’re also great ingredients for stepping on your business growth gas pedal.
By delegating things like client communication, loan research, and paperwork to other team members, realtors can focus on what they do best – taking care of customers and buying or selling homes.
More homes.
Potentially a lot more homes.
One Stop Home Shopping = Your “Secret Sauce”
Another classic way to grow your business is to expand the services that you can offer your customers.
An amazing realtor, a fabulous team of support staff, AND a professional mortgage broker all under the same roof, all working together to provide customers with the best options and seamless service?
Sign me up!
But wait…
What if you can already feel your hair falling out at the mere thought of starting yet another new business from scratch? A franchise solution, like Motto Mortgage, might be the answer for you.
Not only do franchisors like Motto Mortgage give you everything you need to hit the ground running in their Mortgage Brokerage-in-a-Box℠, they also offer a range of tools to help you attract and hire some of the best talent in the business.
Tools like a suite of recruiting materials, proven email strategies, and nationally run recruiting ads.
To top things off, each Motto office has access to a recruiting liaison who can bring pre-screened and pre-vetted candidates right to your front door.
Just like that… an easy button for expansion and netting top talent.
Remember that team diversity we were talking about earlier? Once you integrate mortgage professionals into your team, that back-end support can make them even more effective and powerful.
According to a study by the Mortgage Bankers Association, brokerages with structured teams are able to process loans 28% faster than solo brokers.
That can be a 28% boost to your bottom line.
And the more loan originators your brokerage has, the more loan revenue each one can bring in.
What brings in more loan originators?
Offices that have killer tools and a network that can consistently offer super competitive rates. (Pssst! Like Motto Mortgage!)
More originators + industry-leading resources = bigger revenue and bigger growth potential.
Now that’s my kind of math!
Adaptability = Resilience
Volatile economic trends…
Fluctuating interest rates…
Shrinking inventory…
The real estate industry has had to embrace the art of the pivot long before the COVID pandemic made it a Thing.
Smaller brokerages are naturally more nimble than big real estate behemoths, but even smaller shops sometimes need to pivot with a little more grace. Adding to your team can help with that too.
An expanded team can bring together professionals with varied perspectives, backgrounds, and expertise.
According to McKinsey & Company research, this combo can be the “unique spice blend” that bumps your resilience during economic challenges up 35% more than folks who rely solely on their own experience.
If you’re seeing stormy market seas on the horizon, the collaboration and learning values that cross-functional teams often bring to the table can allow your business to jump on growth opportunities even when times are… challenging.
Seriously? Another interest rate hike?
No problem.
Professional Development = Happier Campers
Supporting your team’s continued personal and professional growth is a win for everyone.
Your team feels valued, encouraged, and empowered.
Your business gets a staff that is on top of the latest trends and best practices.
You get employees who are primed and ready to fuel the growth and success of your brokerage.
You also get a team that is much more likely to stick around for the long haul and much less likely to become checked-out clock-punchers.
When you create an environment that encourages success, your business succeeds too.
Growth for everyone!
Okay, growing your team is important to growing your brokerage business. Check.
So now what?
We have resources! Motto’s blog offers two great articles filled with tips to get your team-building efforts off to a solid start:
- How to Find the Right Team for Your New Franchise
- The Guide to Expert Recruiting That Will Help You Win LOs
Whether you are growing your current real estate business or adding mortgage brokerage services, there are lots of resources available to help you build a formidable team.
Full potential… unlocked!
Finally, in the sage words of Broker Engine:
“Hire wrong and you’re saddled with extra costs without increasing capacity.
But hire right…
And you unleash growth, profits, and lifestyle.”
So, we say to you… go forth and GROW!
Published on April 1, 2024
