Ever get tired of endlessly riding in cars with buyers? Do you ever just feel like you need to be working smarter instead of working harder? Well maybe you can be. Consider opening your own relocation office. Really. If you do you can make a lot of money with a very small down-side.
But before we get into all that, let’s think about what a relocation company is at its very core. It is a company that attracts people who are relocating, engages those clients, and then places them with real estate professionals. Then it oversees the process to ensure the client is happy and that the agents pay them the agreed upon referral fee.
The largest relocation company today is Cartus Mobility (originally part of what is now Realogy, the parent company of Century 21, ERA, Coldwell Banker, Sotheby’s International, and Better Homes & Garden real estate brands). In all likelihood, the company in your market who handles their relocation is the busiest company in your market. Sounds good, right? It gets better.
The agents who work those relocation clients are accustomed to paying as much as 40% of the gross commission for each side of a transaction, and since it is a relocation, over half the time there are two agents for one client — one helping them buy and another helping them sell their existing home. But even if there are not two transactions, there is always one.
Now, imagine if you could identify those relocation clients early in the buying cycle, engage them, and then refer those clients to a referral agent you’ve pre-screened on the client’s behalf. You could make 40% of the gross commission on each end as a referral, and you could run the entire operation from the comfort of your home. Simple right?
All you would need is a system to attract relocation clients, and then client management that allowed you to oversee the progress your referral agents were making on your relocation business. That’s where we come in. Our LCM technology can supply the clients but you’ll need to oversee the relocation operation in your chosen market or markets. Let me walk you through an example:
Using our LCM technology, you would place online advertising and attract a new relocation client and seamlessly forward that lead to your client manager. It could be in your current market, or in any market anywhere in the world. For purposes of this example, let’s say the client has a $200,000 home to sell where they currently reside, and they need to buy a similar but more expensive home in your market, let’s say $250,000.
First, you refer the listing to an agent you’ve pre-interviewed and collect a referral fee of 40% of a $6,000 gross commission from the listing side. That’s an easy $2,400, and believe me, the listing agent is thrilled to get the easy listing and will be happy to pay your referral fee.
Then on the buyer side, there’s a 3% commission on the new purchase price of $250,000 (assuming no bonuses or higher commission offered by builders or agents). That is another 40% of $7,500 gross commission, or $3,000 for the buyer side. Not bad.
Now think about it: You’ve not burned a dime of gas. You’ve not wasted a week of your life riding around town showing houses. You’ve not wasted your weekends holding open houses or canvassing neighborhoods. You’ve not had to place advertising, yard signs, lock boxes, or any of the other hassles of doing traditional real estate business.
You have provided the valuable service of identifying, engaging, and referring your relocation client, and you’ve made $5,400 in referral fees. You have no legal requirement for record keeping, because you are not the agent or the broker, but rather simply collecting a referral fee. You also have no transactional liability and typically pay no franchise fees. You are not limited by geography, so if your market is struggling, find one that is booming and service it. You’re not practicing real estate so you don’t need a license in that other locale. Okay, so what’s the catch?
Remember, there are several steps in this process: Identify, engage, refer, and service. You would first identify relocation customers by placing free ads online. Don’t worry, our coaching staff will help you with the ads and supply you with proven templates. Next you would engage those new relocation leads and refer them to your relocation team, who would provide the brokerage services to the clients. Of course, depending on your transaction volume, you may recruit as many referral agents as you deem necessary to handle your volume of business.
And you would need to license our LCM technology so that you will have the tools to both capture the leads and manage the progress of your relocation team.
What if instead of going into the office to begin the traditional real estate grind, you tried something brand new? You decide to take the thirty-second commute to your home office. You update your ads and then you check your email and there are two brand new relocation leads that have come in overnight. You sit back in your chair, sip your coffee and begin to plan your day.
You pull together some stats for your relocation team training and accountability call in half an hour. Then you open your client manager and look through the 18 relocation leads that have come in over the last month. Of those, there are only 7 people you need to touch base with today and then you are done. After that, you need to call your three referral agents and check in to make sure no balls are being dropped. How easy is that?!
You should be able to make it to an early lunch at the club and then take the afternoon shopping for a new convertible. Hmm. Tennis anyone? Catch that afternoon matinee? Actually you can do whatever you want. No sales meetings. No caravan. No time wasted by other agents in the office. No everyday real estate grind.
Your new job is the very picture of simplicity. All you have to do every day is place free ads, call and engage your relocation buyers and then hand them to waiting referral agents. No endless showing appointments. No dinner time listing appointments. No dread of constantly having to drum up the next deal. Oh, and let’s not forget — no weekends. No nights. No grueling hours. No marathon closings. Just making friends and placing them with great agents. How cool is that?!
So let me ask you a question. What if you were to close only two transactions per month? You’d pocket an extra $5,400* with no expenses and no liability. What if you closed four? Or ten? Do the math. How many agents can you recruit and how much business can they do? That could be a lot of money with virtually no risk.
Does this sound like something you would enjoy? Are you willing to learn some very specific engagement strategies? Are you able to recruit at least two agents who can handle referral business professionally? It doesn’t even matter what company they are with as long as they are licensed and they are good with your customers.
*Projection based on the sample transaction in the example above. Your market may vary.