Although residential and commercial real estate differ in many ways, I have often found that residential brokers don’t adopt as many tactics from the commercial side as they could. As a result, they fail to take certain actions that could prove to be quite useful to them. Many of these actions are essential in commercial brokerage and while the same can’t necessarily be said for residential brokerage, the tactics are certainly useful in our business. Namely, specialization and cold calling are two ideas that residential brokers should take from their commercial counterparts.
A common mistake that residential brokers often make is spreading themselves too thin, either geographically by trying to do business in every neighborhood or when it comes to pricing by attempting to be an expert in sales at every price point. The brokers who survive year after year have found an area to specialize in, whether that’s a specific neighborhood, price point, or even just one particular block. This way, they really get to know the inventory with which they are working instead of trying to do everything and actually accomplishing very little. After brokers close a sale, they should start spending ample time in the area and try to get to know the neighborhood residents and what’s going on with nearby listings and sales. One would be surprised by how small of a geographic area that brokers can make a living off of, provided that they are successful at using such a specialized approach.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.