Real Estate Agent and Trainer, Robert Rico, explains the phrase “Time is of the Essence,” and discusses why time is so important in real estate. Do you want to see more video blogs? Subscribe here!
Timing is key in many aspects of life, but especially so in real estate. Since all real estate deals are done on a timeline, it’s very important that real estate agents are good at time management to ensure a smooth transaction process (or ANY transaction process!).
One prominent saying that definitely applies to real estate is “time is of the essence.” For example, people often go with the first agent that gets in touch with them (after they submit their name on a website, for example), so it’s important to contact your leads quickly.
As a buyer’s agent, you’ll have to be on top of your game when it comes to timing. It’s especially important in a hot market like today’s, where inventory is scarce and there is a lot of competition for each house on the market. Your buyers want to be the first to see the homes that go on the market, so they can have the first choice of house to buy.
Once your buyers have settled on a home to purchase, they of course have to make a purchase offer. In the real estate world of multiple offers and very few days listed on the market, time is definitely of the essence when submitting an offer!
Let’s say it’s the late afternoon, and you and your clients have just come from a home they really like. You sit down in your office and come up with the terms of the offer, including the price, days in escrow, and financing. They leave, telling you to submit the offer immediately so they will be first in line. (Usually, the highest and first offer gets accepted – so if your offer is the same dollar amount, but comes in before the second offer, you will usually get the home.)
However, what if your buddies then call you from the bar, or your friends want to go out to dinner with you? What do you do? Well, if you’re an efficient time management machine, like you should be, you will submit the offer right then and there like you promised your clients.
A lot of new agents fall into the trap of “oh, I’m my own boss, it’s okay.” Well, you are your own boss, but you are still working for your clients. If they find your work unsatisfactory, or you are lolligagging around, they will certainly not recommend you to their friends. They might even stop using you and go with a different agent, which would obviously lose you the commission and relationship. That’s why it’s so important to be an effective, reliable, and efficient agent!
Another area where timing comes into play is after the offer is accepted and the clients are in escrow. Escrow is usually a defined period of time, around 30 days, and both buyer and seller expect that the deal is completed in that time. Agents on both sides have to do their jobs in an efficient and timely manner so that the deal does not get delayed, or worse – fall through. Time is once again of the essence!
Once the sale is done and escrow is completed, time is still a driving factor. To gain referral business, it’s important to follow up with your clients in the right timeframe – usually a few months after they’ve settled into the new home – to make sure you’re still at the front of their mind. It’s important to never fall off their radar.
As was stated previously – time is of the essence! Keep this in mind when striving to become the most successful real estate agent possible. As always, check back soon for another great installment of our blog.