The Real Estate Double Play: One Client, Two Commissions

Stop leaving money on the table with single-transaction clients. In this episode of the Unstoppable Real Estate Agent Podcast, we break down "The Double Play" a strategy that allows you to secure a listing and a purchase from the same client. If you want more inventory and less "buyer fatigue," this is the roadmap you need.

What You’ll Learn:

• The Move-Up Trigger: How to spot homeowners ready for an upgrade.
• Neighborhood Farming: Identifying the 3-5 year "sweet spot" to find listings.
• The Simultaneous Close: How to manage contingencies and move clients with ease.
• Marketing for Inventory: Postcard and social strategies that actually convert.

The Goal: Build a referral-based business where your listings generate your buyers.

Resources & Links:
Buyer Postcards: https://www.kimhughes.com/buyer-postcard-campaign/

Seller Postcards: https://www.kimhughes.com/seller-postcard-campaign/

Real Estate Systems Snapshot https://www.kimhughes.com/systems-snapshot/

Read the Blog: https://www.kimhughes.com/wheres-your-next-lead-coming-from/

Watch the Video: https://youtu.be/BlcOY_beXC4

Stop Running Your Business in Chaos Build the Systems That Keep It Running Smoothly

Join Real Estate OS Accelerator | Building the Operating System Behind Your Success.  The hands-on coaching program that gives you the structure, systems, and accountability to finally run your business like a pro.

Real Estate OS Accelerator - Kim Hughes

Additional Resources:

📩 FREE RESOURCE: Download my Complete Checklist – 72 To-Do’s to Dominate Success in Real Estate to supercharge your strategy! https://www.kimhughes.com/72-to-dos/

Visit my website for FREE Templates: https://www.kimhughes.com/resources/free-downloads/

Power Strategy Call – Best 30 minutes you will ever spend discussing the struggles in your business as we create solutions that will set you up for unbelievable success! Go to http://www.TalkwithKimHughes.com

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Transcript

SPEAKER_00 0:00

Hi everyone. In today's podcast, we are going to be talking about how you can create another stream of income with your real estate business. So, what we're going to talk about today is focusing on lower price homes and then looking at those homeowners to see if they are ready to transition to a bigger home, a better neighborhood, a better school district, whatever that case may be. So stick around, we're going to talk about that and we're going to give you some great tips of how to do this. Welcome to the Unstoppable Real Estate Agents Podcast. I'm your host and real estate productivity expert, Kim Hughes. Join me as we focus on real strategies and implement real solutions designed for you to achieve major success in your business and life while getting you organized. So, as we all know, every agent's main goal is to build their listing inventory. They want to perfect their craft and build a referral network. That is the key to having a real estate business that is thriving. Now, I'm not saying you don't want to work with buyers, but buyers do require a lot of time. And being a listing agent allows you to have more time to focus on creating a strong listing inventory as well as work in other areas of your business. I have worked with agents in helping them create a stream of income in various areas of their business, such as expired listings. We have helped agents build an impressive stream of income just by having maybe two or three listings a year, which in the return gives them referrals. So this stream of income that we're going to talk about today is one that you should be looking to add to your income portfolio. Now, another area I work with agents is helping them create the marketing strategy that's going to attract move up buyers. Now, let's clarify what a move up buyer is. This is a homeowner who is looking to sell their home or their current home and purchase a new or typically more expensive property. Maybe they are individuals that have grown their family. They have increased their income and are ready to find their dream home. They also may move up to a different neighborhood for with better amenities to a better school district. Or maybe they're at a point in their life where they may need to move their parents in with them or look for multi-generational home. So here's an area that you know could have so many reasons. So what we want to look at is a three to five year buyer, or I'm sorry, a three to five year homeowner. So when we do this, um, we want to look into that specific neighborhood. We want to target and do the research on which homes have had at least three to five years in the home. If they've been in the home longer, that even is better to qualify them. Because move up buyers often have, you know, the equity built up in their home, which they can use as a down payment for the new property. They may also rely on the proceeds from selling their current home to fund the purchase of a new one. So move up buyers are generally looking for an upgrade in terms of size, amenities, location, or overall quality of the property. So how do you find these buyers? Well, we're gonna start looking at neighborhoods where homeowners have lived in the home five years or three to five years, as I mentioned earlier. Um, why are we recommending that you look at for these buyers fitting this type of criteria? We're gonna map that out. So by targeting the move up buyers and assisting them in pursuing their goal of upgrading their homes, you're not only helping them achieve their goals, but you're also increasing your listing inventory by listing their current home. So what you want to do is create some major momentum because the lower price home will sell much faster than the higher priced home. So the beauty of all of this is that you can start your listing strategy on the current home, generating buyer interest while you help them find the home that fits their needs. Now, the goal is to have their home under contract at the same time they find their dream home. But just remember, it is it does not happen simultaneously. So when you make sure that you add that contingency on both the um you know, in both the contracts stating upon the sale of or the purchase of a home. So that's really important. So you want to talk to that home buyer that you're working with so that if they do get an offer rather quickly, they need to stipulate that, or maybe do a lease back or something like that until they do find their perfect home. Okay, there's a lot of different ways you can do that, but these are just some tips, okay? So um just kind of get creative in how you're going to do that. So this is a great way to build your brand in a specific neighborhood, it helps you develop relationships, it will also create a huge referral business for you. So what we want to do here is break down all the obtainable steps. So the first thing you're gonna do is choose the neighborhood you want to farm to to find that lower price home buyer, and then you want to do the research on how long they've been in that home. So, you know, one to two years they may not be ready, but three to five, you know, that's where I'm thinking your sweet spot is, is as far as finding those that are interested in moving up. And regardless of what the interest rates are, so you know, the biggest thing with a buyer is well, it's the interest rates, we're gonna wait till they go down. Well, as we all know in this industry, interest rates fluctuate. So, what you want to do is tell them if you are worried about the interest rate right now, and you're thinking you're gonna wait until it drops, then now is the time to buy because the interest rates could go up. And this is a great time to get locked in. Um, once they've been in the home for a few years, they can always refinance. Most buyers don't think about that when they're looking for a new home. So, this is a conversation that I highly recommend that you sit down and have with them on all the benefits of buying a new home. Okay, you know, they're gonna make the money from the sale of their current home to use as a down payment, they're gonna be able to do so much more, and maybe, you know, now that the market is kind of leveraged in some markets, um, they may find a really good deal because there's really, you know, the markets are kind of leveraging out so that there may not be a lot of homes, but that gives them more choices, okay? So you always have to look at the market. Is it a seller's market or is it a buyer's market? And kind of build it from there. Because right now everybody is in a different type of market, some are doing great, some have slowed down, you know. So you got to kind of take this information and apply it to the way your market is working today. So, what I want you to do is look once you've looked at these neighborhoods, pick the neighborhood, do a market analysis, and then create your postcards and start connecting with them on social media. So these are three things that I'm already telling you to do. So create your market analysis so that you're ready to show it to them of what they could sell their home for today. You know, so if they've been in the home for three years, you know, they may have really gotten a good price on it to where now, if they sell, they may make a bunch of money, you know, because the prices have gone up so much. So keep that in mind. And then I want you to create your postcard campaign and farm to that neighborhood. Now, my rule of thumb is eight to ten postcards, one per week or one every other week. And you're targeting to the home seller, but you're also talking to them as a buyer. So you kind of have to be, you know, twit kind of going through their brain thinking you're ready to move up, you've had three kids, or your in-laws have moved in with you, you're cramped. Um, you know, I got a new job, I can afford now to buy a new home or a bigger home. So kind of talk to them in that way. Okay, so we have a seller postcard campaign. If you're interested in it, I'll leave the link below. And this is a really good postcard campaign that can get you in the door. You know, that's the key, is just to get you through the door to sit down with them and explain to them how you can work this for them and then kind of build it from there. And then I want you to create a strategy that you're gonna present to them to get their first home on the market so they understand that okay, I'm ready to buy, but I now got to sell. Okay, so you kind of have to go in there prepared both ways. So I want you to have your pre-listing presentation, I want you to have your listing presentation and your buyer presentation. Okay, so these are three things that you need to be ready to talk about immediately when you're sitting down with them. But I want you to focus on getting them to buy, okay, because you know if they're gonna buy, they're gonna sell. So don't talk about trying to sell their home first. Let's talk to them about are you ready to move up? That's a really important little piece right there that makes this program so successful. Um, then I want you to see if you can find them on social media and connect, you know, Facebook, Instagram, LinkedIn, Pinterest. These are great ways that you can connect with people in that neighborhood. Okay. So here's some other things that I want you to consider is have a lender ready, you know, so that if you go into that home and that homeowner is saying, Yeah, I'm ready to buy, but then let me introduce you to my lender. Um, discuss the importance of evaluating the current financial situation that they're in to make sure that it's a good time for them to sell and buy. Because you don't want to go in there just trying to get them to be buy, buy, buy when their financial situation may tell you otherwise. So the goal here is to walk into that appointment, sit down and have a real conversation with them. And if their financial situation is not where it could be, then maybe start working with them on what they need to do to better that financial situation. Maybe they need to pay off credit card debt. Be there to help them figure that out, and your lender will help them figure that out, but you as the agent should be a little bit more hands-on because this will be a potential buyer/slash seller in the future. They may not do it the minute you walk in the door, but they say three months, six months down the road, if you nurture them in the right way, then they're gonna come back to you and say, Yeah, you know what, you helped me so much with this, I'm ready to go. You know, so keep that in mind as you're talking to them. Um, you may not get an immediate listing, you may not get an immediate buyer, but looking at their financial situation, that's gonna tell you a whole lot about what's going on there. And then I want you to explore the factors to consider when determining if it's the right time for them to move up, which I just said, you know, let's talk about the financial situation, what's going on with the family is, you know, it could be a situation where maybe uh the wife is pregnant and they don't want to move until that baby's born, or maybe they want to hurry up and move before the baby's born. So you can have all these scenarios going on. And just let me throw this in, it just kind of popped into my head. If there's a way for you to find out who's having babies, that's a great market. Um, to go into, you know, first time, you know, parents, second time, you know, if you could tap into a way to find out who's having babies in the neighborhood, then those may also be people that can help you that will also be ready to sell to in order to buy because they're ready to move up. So that's just kind of a side note. I'm not real sure how you would get that information, but you know, if you think about it, you might know somebody that could help you get that information and then kind of build a campaign on that. Then um, you know, of course, like I said, go into social media, see what's going on in their lives, you know, connect with them, make comments, and then when they see you commenting on, oh, we just had a baby, oh, you know, um our mother-in-law just moved in with us, things like that will help you understand where these buyers are sitting and what their goal is just by having conversations on social media. And you know, one thing I will say about social media is, you know, it has its pluses and its minuses, but the plus is that, like with me, I have family all over the country, so I'm real active on my personal account so that I can keep my family members updated on what's going on in our lives, our children's lives, what's going on with the grandkids. So you could learn a whole lot about me by just seeing what I'm posting about my family, and that could tell you a whole lot right there about who I am and where I am in my stage of life if I'm ready to you know buy and sell. So that's just something to keep in your mind. So if you have a social media manager that's running this for you, this I don't recommend having them do. This is something that I recommend that you kind of sit down and look at it yourself and see what's going on because you're going to be, you know, right there in the moment of what you can do, okay, to help them. Okay, then um let's provide the tips of assessing the existing property value and the equity. Because, again, as I mentioned before, they may say, you know, I'd love to buy a home, but I just don't have the down payment. Well, if you can sell this home, this home will give you the equity to go buy a new home. So that is something that is really important to discuss with these buyers because, again, they don't think like that. You know, they don't think that they have, you know, $20,000 in a savings account to go buy a new house, but they may have $20,000 in equity in their home when they sell it. So it's it's showing them the different ways that they can get that down payment, okay. Um, also, you want to discuss the potential maybe potential uh financial implications of upgrading to a higher price home. You know, so you know, always kind of go into that appointment with okay, we're going to look for a new home and a new price range. So let's look at everything that goes with it the property taxes, the school taxes, you know, all the things that go with it to make sure that that buyer can legitimately move up to a higher price home. And again, by selling their home, is that going to benefit them in the purchase of their new home? You know, this to me is really, really important. Um, and I'll just share this real quick. Back when my husband and I got married, um, we got married in 83, we had our first son in 87. At that time, we lived in an apartment, we were ready to buy a home. So when we went and talked to the lender, the lender said, you know, now keep in mind this is 1987. The lender was telling us, oh, y'all qualify for 150 to 200,000. Well, back then, that those type of homes probably would be six to seven, eight hundred thousand now. So we looked at him and said, you know, that's great. We we love that we're we qualify for that much, but our bank account tells us what we can afford. You know, we know what we can afford. And we did not want to go over eighty thousand dollars, and so we moved into a starter home community. So you have to be realistic on you know what they qualify for and what they and then have that conversation, you know. Yeah, you qualify for this, but in your mind and in your bank account, what do you feel like you can afford? And then work with them on that because you never want to get somebody into a home that they can't afford, and then in you know, a couple of years they're being foreclosed on. That's not good. It's not good for you, it's not good for your reputation, your brand, it's not good for them. Um, it's just not a good way to go into it. So always have the conversation, and you know, it can be a sticky conversation because people don't like to talk about their finances. But if you go in with a genuine interest in helping them, they will share that information with you. And confidentiality, you know, I always say with you know, attorneys is confidentiality. Same thing with real estate agents, you know, share your your personal information with a real estate agent, a good agent is going to keep that confidential. Why would you share that information with anybody? So just keep that in mind as you're making these appointments to go in and talk to them. And so, with everybody wanting, you know, more listings and they're really trying to what I call hustle for listing listings, um, this is a great way to do it. You really just have to kind of sit down and analyze your market to see what's going to be the best neighborhood for you to farm to, and then maybe even look at the neighborhoods that you would recommend, or maybe you see, okay, well, people that live in this neighborhood when they sell, they're usually moving over here. So maybe do some research on that higher end market and have that information when you go in, you know, so that you can answer the questions as they come up, all right, and and be prepared. It's always it's always about being prepared. And then I want you to, you know, create a detailed plan for achieving their goals. So now that they've shared everything with you, what's that plan? What's the plan on getting them into that bigger home and selling their other home, the home they're in now? And then discuss a timeline and then go over the steps that are involved with the transition process. Okay. Now, when we we as we were talking about the financing and the budget strategies, you know, you want to make sure that they meet with a lender, get pre-approved, and all of that. And then after you've had that conversation, then you can look at the various financing options that are available for moving up to a higher price home. Um, explain the concept of a loan pre-approval and the benefits because a lot of agents, for whatever reason, they don't work with buyers that are pre-approved, or they may not even get a buyer representation agreement. So that kind of goes blows my mind because I could tell you story after story of things that have happened to agents that did not get a buyer representation agreement, or they didn't get that pre-approval letter to go in and make an offer because a seller is going to want to know that that buyer is pre-approved. So just make sure you do your due diligence, get everything taken care of, get it all nice and tight, and be ready to go. And then offer the tips on how they need to budget and manage their finances during the transition. Meaning, don't go buy a new car, don't go buy new furniture, don't go um, you know, on a vacation, don't do anything. Be very, you know, live under your means so that you can get into that house. You may be, you know, it's kind of like I always would say, you may be excited about getting the house and oh, I've got to have this and I've got to have that, and you go buy it, don't do it. Tell them not to use the credit card, tell them not to go do crazy things like that. If they don't know, then they probably will do it. So you have to sit down and have that conversation. Um, you also want to explore the challenges that they may run up against and give them solutions that um are related to obtaining that higher price mortgage. Now, when it comes to selling the property, you know, their current property, um, you want to provide them with insight on preparing and staging that current home. Okay, so you want to make sure that that home is top notch, ready to go. Everything about it is showcase HGTV ready to go. Um, you want to also discuss the effective marketing strategies to attract the potential buyer to their current home, and then discuss the challenges and how to overcome them when selling the property. You're not saying that there will be. Just be prepared to go over that with them should you need to. Now, when it comes to finding their dream home, you want to share the tips of conducting effective property searches at the higher price point. So, you know, you got to hear what they want and then help them find it. And, you know, I always say, you know, try to look at what they're wanting at that price level because a buyer is going to think that they can they want more than what they can really afford. So you got to kind of bring them back down and say, you know what, you know, I know you want that million dollar home, but you know, let's look at a $600,000 home. You know, the the million-dollar home may come in five years or 10 years, but let's look and let's be realistic here. And then offer the insights on um how to discuss the importance of the due diligence and the property inspections and everything that goes on. So when you when you are helping the buyer, you've got to remember all that. But then you also have to make sure that everything in the current home is going to pass inspection, it's going to have everything that it needs to be done. And I would even throw this out there that if you can talk to your title companies and try to see if there's any liens on that property before you can take care of those liens before you list it. I have heard agents tell me that you know they ran into nightmares at closings, and you may have as well. Um, you know, I know that when we were getting ready to uh sell our property, we went to the title company and said we want that pulled because we wanted to make sure that there's no liens because we inherited the property. It was generational, and so we wanted to make sure there were no liens on that property. Um, and we cleared, you know, so that when we went to the closing table, we didn't have a problem. So we ended up not selling it, we ended up staying there, and so glad we did. But um, you know, that was just something we, you know, in the in the business I'm in, I knew to go do that. And then um, so just kind of keep that in mind, you know, these are all tips. I'm not saying you have to do them, they're just tips, and you may not be able to do this in your state, and that's okay, but it's giving you the information so that once you go under contract or once you list that property, you know, here's what we need to do, and you can explain that to the buyer and educate them and walk them through this process to make it so simple, so enjoyable that when they close, they're gonna refer you and they're gonna come back to you to buy their next property. Um, and I'll even throw this in there. I have had, I have worked the system with my some of my past clients, and we are just amazed at the response that they get. I mean, I have one agent, and she she came to me about maybe seven years ago and was looking for another way because she said we have so much competition. I'm trying to figure out a way that I can be ahead of the competition. And so um we came up with this strategy and it was working, and we were like, wow, this is cool, this is great, you know. So this strategy that I'm sharing with you, it's tried and true. You know, it's it's a it's a proven system. You just have to look at it for your market to see what it is that's going to work for you, and you have to create your own strategy, your own checklist, and everything that goes with it, and do your due diligence so that you are prepared to walk in representing a buyer, but knowing that you're going to also get a listing. Okay. Um, let's see what else can we talk about? Okay, so when when the move is ready, discuss the logistics of moving to the higher price home. You know, what's involved? You know, what do we need to do here? Um, a lot of buyers don't know what to do, and they will not do anything until it's almost closing, and then they're gonna be running around trying to get everything done. So kind of guide them through that because you have to remember they're not only trying to keep the house nice and and clean and neat for showings, but they also have to start packing and getting ready to sell. I mean, to to move into their new home. So they're doing double duty here. So this is where you could really shine and helping them kind of maneuver through that whole sequence, okay? Um, give them tips on coordinating the move and hiring professional people. So, you know, professional people meaning if they need to paint a room, hire somebody. If you can afford it, hire somebody. Um, take a weekend, maybe you go over and help them do something, you know, maybe go help them paint a bedroom, maybe um they need, you know, the windows cleaned, carpet cleaned, whatever that may be. You may not physically be able to do it, but you know people, or you should know people. You should have a whole list of vendors that you can tap into that can go at a at you know within a 24-48-hour notice to help you out. And that relationship should be good, but that's another podcast. So, um, and then also discuss how they want their new home to feel and maybe start planning that by creating a board on Pinterest. You know, what is what are the things that you're looking forward to to keep them excited about buying and have them create a vision board of what their new home looks like. Okay, so just make sure that you know um you do your due diligence, you know. That's my biggest thing is is you really want to sit down with them, listen to what they're saying, hear what they're telling you, and then move from there on how you build that relationship. And then the other thing is, is once you have this database of you know the farm area and you have made contact with them, now they are a lead. And then you decide are they warm, cold, hot, what are they? And then put them in your CRM system, put them on your newsletter. I've already said connect with them on social media, but then you might also put them on a on an email sequence or a funnel drip campaign, whatever you want to call it, based on their scenario. So if you're a hot, warm or cold lead, they should each have their own sequence of how you communicate with them, how you stay in touch with them, and what information you're delivering to them that they need. Because a hot buyer or a seller and a cold buyer or seller are going to be totally two different email sequences, but you can always put them on your newsletter. And if you don't have a customized newsletter, you should have one. Okay, so we have gone over quite a bit. So here's the the the recap of what we're doing. We want to start looking at a farm area that maybe has lower priced homes. Um, you know, this it depends on your market. Your market could be a low price home, could be 200,000. Um, it could be 500,000. So you have to just know what your market lower price home is and look at that neighborhood and decide which neighborhood you want to target, build your campaign, follow them on social media, interact with them on social media, and then try to get to into that door. And then once you're going in the door, you better make sure that you have your pre-listing, your listing, and your buyer presentation. And that way when you walk in, you have everything you need. You can answer every question, hopefully, that they ask. And if you don't, just say, you know what, let me get that for you, and I'll call you when I get home, or I'll call you tomorrow. You know, that kind of thing. Never say I don't know. I uh it it makes me laugh when I hear people say, I don't know. Well, you shouldn't say that because you need to go find it out and then tell me what it is that you didn't know, but say, you know what, let me get back to you on that. That makes you sound more interested in helping them get what they need. And then um, so you're gonna create your postcard campaign, social media, um, you're gonna put them in your CRM system, you're going to put them on your newsletter, you're gonna have your listing, uh, your pre-listing, your listing, and your buyer presentation. So I want you to also think about, you know, yes, you are targeting a lower price community, but you could also create a postcard campaign to a higher price community and say, I have buyers, and then you know, put a sequence in place to mail those postcards out about how you can help them sell their home if they're ready to move. So, you know, this could just go on and on and on. So, right now, what I want you to focus on is the lower priced farm area and then get that all taken care of, and then focus on the higher priced neighborhood to let them know that you have buyers if they're sitting on the fence, whether they on whether they want to sell or not. So that's what we have for you today. I would love to hear what you think about this. If it's a little confusing, you know, just reach out, we'll be happy to explain it to you. Um, some of the things that I've talked about today, like the pre-listing, the listing, the buyer, the postcards, we have those available and we know that these work. We use them with our clients, they work great. It gets you recognition, it gets your branding into the neighborhood, it gets people picking up the phone and calling you. So if that's something that you're interested in, I'll put the links below. You're welcome to click on them to see if it's something that you're interested in. If you would like to schedule a call to discuss this strategy a little further. Um, all you have to do is just let me know. We'll get you on the phone and we'll talk about it. Well, thanks so much for joining me. I hope you're having a great week and we'll talk to you next week. Bye.