Value Add

Instead of always trying to sell someone something, give them value. Create a relationship by giving to them. In real estate, everyone wants to get the listing. List to live is the phrase. The thing is, most people are not that different. There is no real value add component to anyone's pitch. It is basically all the same shit with a different twist. Some people are more elegant, some are more buddy-buddy, and some just shoot from the hip when it comes to the presentation, but in the end, most people deliver the same thing...A listing with some photos, on the MLS.

A Value Add, is just that. It brings something of value to the person's life. Be it an idea, a thought, an approach, or a step by step process to getting better.

When it comes to your friends, kids, or partner, it could be as simple as lending an ear without giving an opinion or advice...just listening. When it comes to your business, it could be giving away information that will help people succeed, and giving that info away for free. The person who brings the most value time and time again is going to win.

In Real Estate I decided I was going to pitch builders, developers, and flippers with a value add approach instead of a give me approach. It went like this- I called them up and said, "hey, I am going to bring you deals, on and off market. Deals you would not get or deals that you looked past for one reason or another. I am going to bring you these deals, and for me bringing you these deals, all I ask is you list the homes you build or flip with me on the backside.

Never have I asked to be their exclusive agent because that would only bring value to me. Instead I said, I will make you money with these deals I find. You get to make a lot of money and I will take the commission on the sale. Still, some of these builders will do business with other REALTORs and I do not care. I only want to get paid for bringing the value.

Recently I closed a deal with a client because I went into full value add mode. This deal had been on the market and was being overlooked. I knew this, but I also had to show the client the angle. So I went to work running numbers and collecting stats.

I presented these numbers and stats to the buyer. I told him, "we will get this deal below 150K. Once that happens, you will split the 30 acres into one 25 acre parcel, one 2.5 acre parcel with the house on it, and one 2.5 acre vacant parcel. You will then sell the 25 acre lot to a buyer I already have . Then you will fix the house up and sell it for 160K, and more than likely the buyer for the house will want to add the extra 2.5 acres and your will be in and out of this deal in less than 3 months...depending on how fast your can fix the house.

The buyer made the purchase, then got to work. We recently closed on the 25 acre parcel with the buyer I told him would buy it. Then a month later a buyer came through and purchase the house and the extra 2.5 acres, just as I had predicted. This was not an accident, I did not get lucky. I did my research and presented the client with value. Yes, I got paid, but I only got paid after my client cashed out.

With this approach I have made my clients a lot of money. In turn I have transformed by business and put myself and my family in a position to have continued growth in the real estate world.

How can you add value in your field? Do you have the courage to swim upstream and try something different or risky for the sake of your clients and potential clients? It takes courage to add value, because you will do a lot of work that returns what feels like nothing, but trust me...the connections you are building are well worth the time.

#realtor #realestate #business #process #passion #goals #hustle #inspire #value

Recent Posts