What kind of relationships have you established with others in your industry? Does your realtor like working with you? Would your contractor go the extra mile for you in a pinch? These are just some of the questions you need to be constantly asking yourself in the real estate business. The strength of the people you surround yourself with will go a long way in determining the success of your business. How you treat these people will often determine how hard they work for you. The harder they work for you, the greater the direct impact will be on your bottom line. Establishing quality relationships with respective industry professionals is the key to real estate success.
Everyone wants to get the best deal possible, regardless of their particular filed. Sometimes though, you may be walking over the dollar to pick up the penny. Yes, it’s possible to get your realtor to cut their commission from 2.5 to 2% on a given deal. However, is this the best idea? On a purchase price of under $100,000, their commissions are not great to begin with. On top of that, you are asking them to take less. It is important to consider the needs of those you work with. They are already showing you a dozen properties at a reduced rate and now you want to take even more from them? They may agree, but you can believe that in the future they will not call you first when a new deal comes their way. If you place their needs ahead of yours, they are likely to reciprocate their appreciation in the future.
The same can be applied to your contractor. Always asking for favors places your priorities ahead of theirs, an unwise business move to say the least. They may agree because they want the work, but if you need a favor in a pinch, will they be so agreeable? There are certain times when you do really need to work tight to make a deal work, but that shouldn’t be all the time. The people that work with and for you are in the business to make money. If you are constantly taking money out of their pocket, they will start to look elsewhere. Even if they don’t look elsewhere, the quality of their work will suffer because they know they are getting the short end of the stick.
It is a cliché, but if you take care of people they will take care of you. By squeezing every last dollar out of the people around you, these people will not be there for you when you really need them. At that point, what have you really saved? Now you will be forced to look for new people to work with and develop a track record from scratch. Since you have no relationship, when you need a driveway plowed or a job done on the weekend you will spend more time and money trying to get it done.
If everyone around you feels and sees that they are benefiting from you closing deals, they will work harder for you and want you to be more successful. People in your local community talk, and if you gain a reputation of being difficult to work with or unfair, you can believe that you will have a tough time finding people for your team. Conversely, you will see that the people you work with now will appreciate you and know they are in a good situation. You can always find people to do work for you, but it is difficult to find loyal people you want on your team. If you already found them, take care of them and your business will be a whole lot smoother.