Why Dentists and Real Estate Brokers Are Going Broke

In real estate circles, listings (homes, land, etc.) are created by ‘listing’ brokers, sell, or the are cancelled or expired. That’s pretty much all that can happen to them.

Recently, by complete and total accident, two real estate listings I am managing for a family member, expired. That is, they went from “ACTIVE” status on the MLS (multiple listing service), to “EXPIRED.”

I figured with all the hungry real estate brokers, I’d soon get a dozen or more solicitations offering to list my EXPIRED properties.

After all, the number of brokers has been halved and the turnover rate is one of the highest of any profession, where brokers average about $36k a year, and, to top it off, have to deal with an enormous amount of state and federal regulations, plus, the constant changes with the mortgage industry, etc. It’s similar to what we experience in dentistry, with increasing local, state and federal regulations at every turn.

But, dozens of offers never came. In fact, only two ever materialized.

And, honestly, they were so poorly done, the broker should have just saved their money and bought a cup of coffee.

So what does all this have to do with why real estate agents and dentists are going broke instead of prospering?

Two BIG things:

–       Most real estate brokers, like dentists, never give sufficient thought (1) AND effort (2) to secure future income. They live in the here, now and use a strategy our President seems to love: Hope. Frankly, it’s a terrible strategy. They are “hoping” a listing will drop in their lap, or, better still, a buyer. Dentists, well, they’re “hoping” a patient will call that needs $10,000 or more of work done and they’re willing, ready and able to pay.

–       There are dozens, no, hundreds of ways for a real estate broker to secure a listing or find a buyer that is actively seeking a home to purchase. There are hundreds, if not thousands of ways a dentist can attract a patient to his office. Yet, both professions will rest willingly, I might add, on their laurels and wait. Hope. Pray. Do a dance of some kind.

When business is down, when listings, buyers or patients are not dropping from the sky, you’ve got to do something. You’ve got to create a plan. And then, work the plan.

In fact, the more you do, the better. You won’t know what works until movement occurs.

You can mail postcards (they’re like $0.32 or something like that through click2mail.com), you can send referral requests to past clients, work expired listings (In dentistry, that’s offering free 2nd opinions or consultations – believe me, this works very, very well.) and more.

If all my wife did was work expired listings with a top-flight direct mail approach package (called the “shock-n-awe” box by direct mail marketers), she’d have more listings than she’d know what to do with.

For her though, she’s content with what she has; she’s not searching for more. But, when the time comes…

The big success secret in dentistry is never, ever having a “want” for new patients. If you have all the new patient flow you can handle, and, you’ve mastered the art of “re-care,” you’re left with becoming more efficient and developing office systems to handle folks.

If there’s one skill every dentist should master before being granted a loan to open a practice or buy one, it’s marketing. The stronger your background in marketing, the better you’ll do.

To learn more about turn-key advertising and marketing programs offered by Jerry Jones Direct and my ClearPath Society® Membership, visit here.

 

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