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Beatty: [00:00:02.31] Well. Hello, everyone. This is Beatty Carmichael again with Get Sellers Calling You. And we’re back with my good friend Stuart Sutton. If you happen to be watching the videos, you’ll recognize that Stuart. Neither Stuart nor I have changed clothes in the last six weeks are three weeks or four weeks since we did the last one. What actually happened is we got to the end of the last podcast and said, Oh, we didn’t talk about micro lists and this is really important. So we’re doing another podcast because this is really, really cool and and I think you’ll get a lot of value out of it for those of you who are marketing to a list for your real estate business. So with that as a kind of a longer introduction. Welcome back, Stuart. It’s good to see you. It’s been a while.
Stuart: [00:00:49.89] Well, thank you. And I think I’d be interested to see how many people actually notice that if you haven’t said anything, I.
Beatty: [00:00:55.05] Know they probably wouldn’t know they’re going to go back and watch them. And just as say so, you know, it’s interesting, I’ve done some testing. Testing is probably the wrong word. I’ve done some observation. And the vast majority of our listener base is obviously audio. And even when we have a really special podcast where we present things that you want to see visually, yeah, only about 10% maybe do it. So. So most people will never know that we’re wearing the same clothes.
Stuart: [00:01:28.29] That is interesting.
Beatty: [00:01:29.22] Yeah, it is. So, so we wanted to kind of pick up from the last podcast that you and I just finished a few minutes ago. We were talking about niche marketing to a degree, but mostly managing on market shifts and really managing on market shifts is nothing more than if you have your best business practices in place. You just keep adapting and there’s nothing special but you and I on our previous call. Prior to that, we talked about niche marketing. We started to talk a little bit on micro lists within a niche or with or taking a niche out of any list. You and I have had some ad hoc conversations together as I was asking you, like, well, so like what’s your sphere of influence and past clients list? Have you broken out into these different categories? And I remember you saying, No, I hadn’t even thought about that. And so let’s let’s open the kimono, so to speak, on what micro lists are and how they can be effective and what people can do to maximize even more return out of their marketing with the use of a micro list.
Stuart: [00:02:39.78] All right. Very good. So if you’re working a niche or if you’re working a farm or any other type of business like basis, he’s actually the one who coined the term micro list, which I think is extremely accurate.
Beatty: [00:02:56.10] I’ve trademarked it, don’t use it, and I’m teasing.
Stuart: [00:02:59.70] It is extraordinarily effective. As a matter of fact, beginning. I have had this conversation before that there’s an old myth. There’s actually a lot of myths in real estate, and if you’re willing to abide by those myths, you will actually limit what you can do with your business. And one of those myths is that, well, if you start farming, you’ve got to put in a year or two in order to actually start making headway, in order to start getting listings and start getting your name now. And that’s just not the case. Doesn’t have to be the case by any means. The farms that we started, the niches that we started, that baby has helped me start and that I’ve helped others start. We’d literally start seeing results in a very short amount of time in the secret sauce behind that is about what we’re about to talk about, and that is the micro lists. So let’s start with very simply a niche, a farm. You’re a specialist, you’re an expert, you know, a particular type of real estate or an area of real estate better than anybody else. That in itself is an extraordinary position to be in, and we’ll get you a higher response rate than a typical database. There’s just absolutely no doubt about it, because when you’re perceived to be an expert social and psychological impact of that, as we talked about in the last one, is going to get you better response. But we’re going to talk about now is how to increase that even more. So you had mentioned, baby, that we had talked about. How much more response do you typically get? Well, if you’re an expert in perceived an as expert brand that as an expert, your response will be at least three times as high as normal real estate marketing. Wow. Now micro lists I have actually done stats on those can reach as high as ten. James, the.
Beatty: [00:05:01.81] Response? Well, let me let me pause and clarify ten times the response that you’re getting with so you have a niche list. And that niche is Mark is producing three times more than a generic list. When you say ten times more within the micro list, is it ten times more of that. Three times.
Stuart: [00:05:22.48] So that ten times more of the generic. Yeah.
Beatty: [00:05:24.55] Okay. Ten times more than generic.
Stuart: [00:05:26.11] So let’s just say let’s say.
Beatty: [00:05:27.52] Three times more within the list, within your.
Stuart: [00:05:29.95] Main list and then three. Exactly. Okay. So it’s your your. Basically exponentially going.
Beatty: [00:05:38.43] Up. Yes.
Stuart: [00:05:40.11] So and I’ll give you an example, and I use this example with with the groups that we teach in, and I show heart examples. These aren’t theories. These are actual hard examples. Group of 979 I’m going my memory might be a couple numbers off. 979 people in a farm area. All right. So we basically take that farm area and we identify within the farm what are some better, more high producing sectors of that farm? Now, we do the same thing with niches and it’s kind of a more grand scale, and I’ll cover that in just a second. But let’s take a farm. Most people say, Well, I need to farm 500 to 1000, and that’s absolutely fine. I personally would recommend 1000 because the opportunities are greater. But here’s the thing. If you look at that area, that geographic area, and I’m just going to use a real simple one, what’s the turnover in that area? The turnover is how many homes are there, how many were listed last year. So let’s just for argument’s sake, make it real easy. 1000 homes are there 100 people listed their home for sale last year. What’s the turnover ratio? It’s 10% correct. Right. So if people move an average of every ten years, how effective will your marketing be to someone who’s lived there a year?
Beatty: [00:07:16.55] Not much.
Stuart: [00:07:18.17] Excuse me. Help you edit that out. So one of the ways you can narrow and increase the effectiveness is to take out, for example, people who’ve lived in that area a year or two, maybe even three. But I really stop at about two years and you’re decreasing your mailing costs, your marketing cost to those people because you’re taking the group of people from that farm who are more likely to sell. There’s no guarantee that someone who’s lived there 18 months will sell, but the likelihood of them selling is far less than the people who’ve been there longer. That’s the simplest approach to it. But we can keep going deeper. And my favorite one, and the one I’ve just proven over and over and over is the expired within that farmer or within your niche. So here’s the real example. 979 homes over the last. Five years, 74 homes had withdrawn or expired. And we can do the math on that. That’s what all 12 a year, 13 a year out of the 100 that go on the market. So. Those people, those 74 people. We take them and set them aside in their own database. Now we don’t take them out of the big database.
Beatty: [00:08:50.29] You’re just going to send them a different container picture. You’re just going to send them different content or additional damage.
Stuart: [00:08:58.27] Yeah. I’m going to I’m going to try to additional content. Okay. So the general database includes all nine, 70, nine, 79. Then you’ve got the past expired database, which includes 74 people. So those 74 people now get a mailing. When 979 get theirs, but they get an additional one. And let’s face it, it’s not very expensive to mail with 74 people.
Beatty: [00:09:22.55] No, it’s not.
Stuart: [00:09:23.71] Okay. So here’s the stat that I’m getting at. I got the same number of listings from the 74. Is I did the other 905.
Beatty: [00:09:37.73] Well, hold on.
Stuart: [00:09:38.30] That’s pretty that’s pretty high.
Beatty: [00:09:40.04] So you’re telling me you’re marketing to the 975 and if you. And you got the same number of listings from that group of 74 that you got from the remainder of the 975.
Stuart: [00:09:55.48] That’s correct. Wow. That’s how powerful that micro list is.
Beatty: [00:10:00.43] And that was an expired and withdrawn.
Stuart: [00:10:03.82] Correct.
Beatty: [00:10:04.54] Okay.
Stuart: [00:10:05.38] Okay. And here’s why. I want you to think about this for a second. So a lot of it has to comes from what we call multi source touches. Okay. So I’m sending marketing into the farm area and they say this person seems to really know our area. Now, they still choose their longtime friend or the person who sold them a house to list their house with. They misplace it because there are a lot of factors in that neighborhood regarding Price House that if you’re not familiar with, you won’t grasp. So they mispriced the house. It doesn’t sell, it comes off the market. But what happened while it was on the market? I is the expert in the neighborhood went and previewed it. I went to the house. They might have been there. Maybe not. They were there. I met them, but I left a tint card giving them feedback. My feedback on the house so they get my mailings. They saw my card in the house when it was on the market. And my card is different than everybody else because everyone else leaves a business card. Now their home expired. They get a package that explains. What we do, why we do it and how we do it. And then they get a few postcards. Does design for someone whose house came off the market? Then they go into that, they get added to that group of 74. So let’s just say they’re the 75th person. All right. Now they get the general mailings. And they get between the general mailing. Let’s just say the general mailing goes out every six weeks. Three weeks into it, they get a mailing specifically for someone who house used to be on the market and didn’t sell. Now we don’t do that every time in between. That expired past database gets four extra mailings a year.
Beatty: [00:12:08.75] So what you’re doing? Let me see if I understand. So you’re taking the full database. Let’s let’s just call this a neighborhood, a niche neighborhood or whatever the list is, right? Yeah. Okay. And I’m mailing it once a month to the whole list. Correct. But then you take that micro list of expired and you’re mailing it every three months in addition to.
Stuart: [00:12:31.37] Correct an extra four times a year, it can be six. I start with six and then I’ll slow it down.
Beatty: [00:12:35.93] Okay. And then the content, how does that how does the content on that differ from the main content that’s going to the entire list?
Stuart: [00:12:45.29] It it’s a different message and it speaks to someone whose home used to be on the market. It speaks to issues that keep homes for selling. It speaks to issues that increase the chances of getting your home to sell, etc., etc.. So it’s more pertinent to someone who’s had a home in the market that did not sell. And when they get the general mailing, they saw my card, they got the information after home expired. Now they’re getting these mailings when they decide to sell a couple of three years down the line, I’ve just dramatically increased their awareness of what I can do for them because, see, they’re getting mailings that say Stewart sold this home in this amount of time for this amount of money. Stewart sold this home which had been on the market for six months. He sold it in 17 days. Here’s this home that had been in the market for nine months with two different agents. Stewart listed it and sold it in 23 days. So they’re getting that’s the kind of message they’re getting. Does that make.
Beatty: [00:13:50.66] Sense? That makes a lot of sense. We are when we do niche marketing. One of the things that hit me and this is exactly what you’re talking about is it seems like when we look at the cards that we do for our niche clients. Majority of the content is the same content you would normally put out anyway, but only part of it is tweaked to hit that niche with their specific needs. And I thought, Well, this is easy. You know, it’s just you’re just taking your modifying what the message is for the niche, not creating a whole new set of content.
Stuart: [00:14:28.18] You got it.
Beatty: [00:14:29.67] And that’s what you’re doing here. You’ve got your general marketing that goes out. And then for that particular micro list, you’ve got something that speaks specific to that need.
Stuart: [00:14:40.53] Correct? Exactly right. Let me go ahead.
Beatty: [00:14:44.88] I want to share. So when you after you and I had that niche podcast call, I started to apply this and saying, how can we help our clients do this? Because, you know, we’re doing like geo farming. So one of the things we started looking at is take the last 15 sales and just research. How long did that seller live in their home? Until they sold it. You’ll start to get a trend. And I remember this one client, we were sort of surprised me because normally, you know, everyone says, well, the average person sells between year seven and 12. Well, one third of the sales in this farm were 20 plus year duration owners. So then we went back and I had a freelancer pull up actually. We put we acquired the list. And so we already had the length of residence and 10%. The list was 20%, 20 years or older in terms of length of residence. So now you have a third of the sales coming from 10% of the list.
Stuart: [00:15:54.48] There you go. It’s amazing.
Beatty: [00:15:56.94] Yeah, I love that. So that metric of three times more starts to speak.
Stuart: [00:16:03.68] To you’re spending less money to make more money?
Beatty: [00:16:06.60] Yes.
Stuart: [00:16:07.65] It’s it’s I mean, and, you know, the thing about it is most real estate agents aren’t trained in this way. They’re trained to go do a farm and put the pumpkins out at Halloween and the flags out at July the fourth and send a mailing. And that’s what they term farming.
Beatty: [00:16:26.10] You know, I want to share on this something that is hitting me with this. So as we started to move into farming, we started to do a lot of research. And there are some mega farming agents that we looked into what they did and read their interviews and things. And the consistent message was most of them would recommend 18 mailings a year. Some of them would do 24 mailings a year because you’re trying to get enough to get those people who are selling. But you can actually reduce your mailings, you know, once a month, which is 12 a year, and then take those micro lists and what you’re doing and just add more mailings into that. So you’re mailing fewer and getting more results because you are focused on those. And here’s the analytics term most likely to sell. But rather than using some sort of a data analytics company, you’re committed to a year contract or something. You can just look at your list and start making a couple of analysis and say, I’m going to do a micro list with this group, this group and this group. And you got it.
Stuart: [00:17:37.35] There you go. And it’s. Again, it’s manageable. And once you have it in place, it’s manageable. I change my list. I update them every six months. Could I do it every quarter? Sure. But I’m just habitually I do it every six months.
Beatty: [00:17:52.78] So you update your micro list. So we talked about expired and withdrawn. Says one micro list. What’s what are other things that you’re seeing?
Stuart: [00:18:01.27] That’s a good question. As a matter of fact, I had a brainstorming session with my current group about what else could be micro lists, and I’ve got some proven ones, but there’s also some that when you do a little bit of, when you’re experienced in really paying attention and watching, you’ll you’ll come up with some ideas like the one you did for the over 20 years that that is a really good one. But another one that’s fairly obvious in many niches is out of town owners. There are certain number of rentals in most neighborhoods. So very specifically you can market to the group of people who own a rental home in the neighborhood that you’re working or the niche that you’re working. And that’s a very different message as well. They have different needs, different concerns and different problems. So you can market solutions to their problems. So what they’re perceiving is not only are you an expert in that niche, but you really have a handle on people like them who own rentals in that niche. So you’re increasing the impact of your expertize.
Beatty: [00:19:09.22] So you have now I’ve spoken on experts and the main thing is the issues there is just in sell when you’re dealing with an out of town owner. That’s a simplistic issue on experts, but when you’re dealing with out-of-town owners, what’s the message? What are the issues that they work with? So I’ve got a client. They’re starting to do geo farming. They’ve never done this before. We get a list of out of town owners. What special message is going to them?
Stuart: [00:19:38.53] Good question. The out of town owner has some issues when it comes to selling their property. Most of them want or do not want to lose rent, but their house price will be maximized if they get their tenant out. So what are the solutions that we can provide to help them manage that? Either keep the tenant in and sell it and sell it to another investor, or get the tenant out and in and maximize the price, improve the property, maximize the price, and show them that they’re going to make far more than the rent that they lose. And we have one little checklist. For example, if they don’t live nearby, we have a checklist that we’ll send them to a Web page or a landing page, a short video that shows them that we go by and we check their home. We make sure the lights. Light bulbs all work. The windows are locked. The thermostat set properly. Whether it needs to be cleaned, the lawn is being maintained if it needs to be, etc.. So we have this whole checklist. So if you’re an out-of-town owner. You’re not really sure what’s going on with your house, but from us you’re going to get a checklist on a continuing basis to show that it was checked and all the things that you’re concerned about are being monitored.
Beatty: [00:21:00.03] That is brilliant and it’s so simple.
Stuart: [00:21:03.32] It’s just simple. It’s what are their concerns and how do we know their concerns? We ask them.
Beatty: [00:21:11.76] That is really simple. And that’s the thing I think I’m pulling out of the micro list is it’s not crazy stuff that sets you apart. It’s just the simple things.
Stuart: [00:21:23.63] You know, what it’s interesting is. The the things that we that we take for granted are processes that we take for granted. I mean, do you really think that somebody who lives in Eugene, Oregon, who moved there because they had a job and it had to be quick and it was a dream job, and so they didn’t sell their house. Instead they rented it. Do you think they really understand what a real estate agent does for them in Round Rock, Texas, or. Do they assume that the agent goes by and checks the house and checks the light bulbs and make sure the windows are locked? They don’t know all that. So we explain our process to them. Now, maybe the agent and the office across the street does the same thing, but they don’t put out tangible information showing this is how we help you and we do. And it goes all the way back to Claude Hopkins. And I know you know who Claude Hopkins is right now. He launched he was known for launching so many products in his time is he would explain the process in the benefit to the consumer about why this was done, in the effort, in the sacrifice and in the determination to make it the best for the customer. Well, guess what? The product, the competing product did the same thing. They just didn’t explain to the consumer what they did. So that’s kind of the approach we take with that with with micro lists like that.
Beatty: [00:22:51.71] Very brilliant. What other list are so you got expired out of town owners?
Stuart: [00:22:57.53] Well, it depends on your niche. So, for example, my niche, a very good one for me. Is people with senior tax exemptions. Because someone with a senior tax exemption is very likely to sell their property because I work in small acreage. Guess what? Kids are grown. They don’t need to have a pony for the for the kids anymore. I don’t want to take care of 2.3 acres. They’re ready to move back into a subdivision. So I have a separate list of people over 65 in my niche. Now, that might not be the same with condos, right.
Beatty: [00:23:39.80] Let me ask you a question. Do you ever have any of those in your niche that are what I’ll call them the fate first sellers? I’ll leave fate first. You know, I’m going to live here until I die. And so either it moves into that direction or maybe the kids finally say, Dad, you can’t live there anymore. You need to go to a home. Do you have many of those?
Stuart: [00:24:00.44] Oh, I sure do. As a matter of fact, I sold a house for just a fascinating gentleman, 95 years old, mowed his two acres himself every Saturday. Wow. And his son is my attorney. And he said, you know what? I finally talked my dad into moving and he wants you to come over and take care of it. But yeah, there’s so those people who finally they’re going to move into whatever whatever situation is, whether they’re moving in with the kids or moving into assisted living or whatever the case is. So, so yeah, that’s actually in my area. A fairly big part of my business is people who are, hey, I’m leaving the acreage and where I’m going is it that’s the last place.
Beatty: [00:24:51.83] Let me suggest that this is another one of our clients. She was in an area where these people live there all their life. They’re getting older and they either die in that home or they move to a nursing home. And so is that type of scenario. I said, Well, why don’t you just take a list? You can look up on these databases like white pages dot com and been verified. And for those people who are like 70 plus and maybe starting to get to that point of losing their cognitive abilities and their kids are taking not that 70 does that but you know at some mark and append the adult children to your list has a micro list and now you can mail to the adult children of that list and also have your micro list specific to them. Have you ever. Well, something like that work.
Stuart: [00:25:47.57] Absolutely it would, no doubt about it. And another thing that you that a few people have done, I haven’t, but I know some agents have done it very successfully. Is they basically work with probate attorneys. And so the probate attorney will call them when it’s time to list a house that someone did say, I’m never leaving here and they didn’t. So now the probate attorney is taking care of it.
Beatty: [00:26:15.43] So what are some other micro lists that that either you use or that you’ve thought about that might be applicable for someone else?
Stuart: [00:26:26.17] Well, again, it’s going to depend on the niche. So let’s think about some different niches. If you work golf course homes, it might be homes that are actually on the golf course and not just in the golf course community. One of the things that we did with with one of my agents was we went and identified the best selling homes within her niche. And it turned out there was a certain price range in a certain size home. One story, the sell better than all the other configurations and etc., etc. So we pulled a macro list from her niche and set that aside and started marketing to that. And it worked very, very well. So it could simply be a type of property within the type of property.
Beatty: [00:27:16.36] But hold on. That takes work. Unfortunately.
Stuart: [00:27:21.29] You’ve got to.
Beatty: [00:27:21.59] Actually put work into this.
Stuart: [00:27:23.66] Unfortunately, yes.
Beatty: [00:27:25.85] But what a brilliant thing. So give me some just a broad idea out of all the homes in that list. What percent were that one style? And how many homes were of that style? Can you does that make sense? What I’m asking?
Stuart: [00:27:43.69] Yeah, I actually do remember those numbers. It was about 11% for that style. And those 11%, those homes when they won the market, sold faster than any other home, any other type of home, and they sold closer to asking than any other type of home. Now, there were lots of different types of homes, but this particular size and configuration and price range was really kind of the bread and butter in what people really liked within that neighborhood.
Beatty: [00:28:17.73] Interesting.
Stuart: [00:28:18.32] So it just it really worked worked very well.
Beatty: [00:28:21.45] That was 11% of the list that Homestyle.
Stuart: [00:28:26.04] That’s correct.
Beatty: [00:28:26.76] And do you know what percent of the sales it was producing?
Stuart: [00:28:31.66] Yes, it was. It was still about 11% because there weren’t any more of them selling. In other words, more of those people didn’t sell, but those homes.
Beatty: [00:28:41.56] Saw better sales.
Stuart: [00:28:43.75] Yes. So you had you had a better quality listing when you got one of those homes.
Beatty: [00:28:48.70] Okay. That makes perfect sense. We were talking about your past clients sphere of influence, your personal list, and some things you can do to create a micro list out of that. Because just this kind of FYI for everyone, there are some studies that are done statistically, and I know this to you, probably your data supports, maybe not these numbers, but fairly close that your past client’s sphere of influence by far, you know eight, ten times maybe more results than just a generic list. Most people have past clients in sphere of influence, and if you’re not marketing to them, you’re losing a lot. In fact, if you you’ve read the book The Millionaire Real Estate Agent. Right, Stuart? As I catch you, just as you drink some water. They found this was in Troy.
Stuart: [00:29:45.46] Yes, yes, yes.
Beatty: [00:29:46.56] No, no problem. Sorry about that. They found that when they did the study, those people who were successfully engaged with their list keeping a relationship warm and also keeping touches warm, that they were averaging 17 cells a year, 17 sides out of every 100 people on that list. By the time you get referrals and repeat cells and things of that sort, so that past clients sphere of influence list is just really hot. Here’s, by the way, maybe a micro list in our study is that the average seller attempts to refer their agent twice in the first 12 months.
Stuart: [00:30:31.84] Interesting.
Beatty: [00:30:32.62] Yeah. And the average buyer, 92% attempt to refer once in 12 months. So your past clients, your recent past clients can be a micro list out of your.
Stuart: [00:30:43.15] Oh, that is that is absolutely brilliant.
Beatty: [00:30:45.85] Yeah. And what the focus of you if you need to focus on the seller side.
Stuart: [00:30:50.95] Absolutely. Yes. Yeah. You know what? That makes a lot of sense. And it’s a macro list. If you’re reaching out to those people in the first year a little more than you do the second year. It’s money well spent.
Beatty: [00:31:05.19] Yeah. You know, when we bought our home and sold, it dawned on me why the conversation with our friends was always, Hey, how do you like your new home? How did your selling experience go? And so the fact that we had transacted real estate transactions recently, those friends who had interest in that topic were always asking us because they were the ones thinking about selling, right? But we don’t really engage with people that are thinking about selling and they’re talking to us about our experience. So this is why that most recent transaction client is likely producing more referrals.
Stuart: [00:31:42.44] It makes sense because after you’ve moved three years, people don’t go, Well, how’d you like your experience? Three years ago?
Beatty: [00:31:47.93] Right. So anything else that we can talk about with Michael is that either you’re you’re doing you’re saying you’re experiencing.
Stuart: [00:31:58.83] Yeah, you can actually go farther into property types within a property type. I’ll give you an example on acreage, I have a micro list of homes above a certain acreage. There are a lot of homes at certain acreage levels there get harder to find and in more demand at a certain level. So we do a micro list of those. So that’s a property type within the property type. And that’s kind of the same as the farm area I mentioned were that that type of home sold better. But there’s there’s a level of acreage that’s not as easy to find. That seems to be I call it the Goldilocks sometimes small acreage, it’s just too big. We don’t want to manage that. Sometimes it’s just too normal. In other words, it’s in a neighborhood, there’s restrictions, etc. That in between is really hard to find. So that’s what we keep a macro list of and market to. And whatever your niche is, it’s probably going to exist. Let’s just say you specialize in condos or micro lists, might be condos in gated communities for secure entrances. So you’ve got to actually take it on yourself to be purposeful and look for where those macro lists might exist within your niche or your farm.
Beatty: [00:33:21.00] So explain then to me how you go about identifying a micro list.
Stuart: [00:33:28.16] Well, a lot of it is understanding your market. In other words, I didn’t just happen on the the the acreage that I call the Goldilocks size. It just I just kept getting hey, when you find something like that, let us know. When you find something like that, let us know. And so we started that macro list. And every time we listed something like that, it was off the market in no time. So it just made mean the return when you got a listing like that was was nearly immediate versus a regular listing within my niche, an average time in the market. And of course we sell them a little faster than average, but. That particular type of property would sell so quickly. And that was just basically, from what you said earlier, observation. So in paying attention to that, so.
Beatty: [00:34:19.64] You were you developed that micro knit list based on buyers looking to want to buy. Not based on actual sales. You know, you weren’t analyzing the sales and saying, where did the sales come from? These were buyers saying, I want this property. So you went out and found that niche, that micro list, and then you did additional special marketing to that group themselves.
Stuart: [00:34:44.39] Exactly. Exactly right. And that’s I was kind of trying to create an analogy similar to that with the condos like, hey, there might be you might be a really highly specialized condo agent, but you may realize that, hey, if it’s in a gated community, it’s going to sell faster. And I don’t know that to be the case. I’m just using it as an example. So wherever you are, whatever your niche is, let’s just say your niche is homes with views. Okay. You may find out that, hey, if I have a home with a view and it’s priced under $1,000,000, I’m going to sell it like that. So you might identify the smaller homes or the less expensive homes, even though maybe homes refuse in your area, or all expensive, but everyone thinks, well, you can’t get into that for under a million. Well, yeah, you can. Here are some of them. So if you understand your market and you can create a macro list so that when you get a listing like that, it flies off the market. Now you’re making your job a little bit easier. So whatever your niche is, there are macro lists that you and I aren’t going to sit here and identify. You have to identify that by being part of that market.
Beatty: [00:35:59.62] Okay. So that’s one way to identify and that’s going to be getting a good listing. A micro list that are good listings. Sell fast, sell for good price. How about a micro list to identify those properties that are actually going to be selling? Okay. So if we go back to your experts, you knew that those people intended to have sold. They didn’t sell, so they will likely sell again. So that becomes a list focused on most likely to sell.
Stuart: [00:36:30.51] You go in. That’s the same with the senior exemption list. More likely to sell.
Beatty: [00:36:34.74] So how do you find the more likely to sell? So I’ve got a I’ve got a list of some sort of niche that I’m focused on. How do I go through and identify a micro list of most likely to sell so I can focus special effort on them?
Stuart: [00:36:52.99] Well, that’s a good question. I’m not sure there’s an actual formula for that. A lot of that is is being involved in the niche and understanding that these homes are the ones that have sold. What’s the common denominator? And that’s how we found the acreage thing. That’s how we found the senior exemption thing. That’s how we found the floorplan and price range thing. We look at the sales and we start trying to identify the common denominators with the homes or the sellers. So it’s a combination of those. And if we’re finding out that, hey, more homes are coming on the market that are owned by this type of seller or that have this type of characteristic, it’s just really identifying from that list.
Beatty: [00:37:39.10] Okay, that makes sense. So let me repeat, make sure I’ve got it because this is what I was thinking on myself is so you take the last group of sales 15, 20, last 12 months, whatever your time. Yeah.
Stuart: [00:37:52.45] Typically I’ll go, I’ll do the last 12 to 24 months. Yeah.
Beatty: [00:37:56.35] Okay perfect. So last 12 to 24 months of sales. And then the way I envision this is almost a spreadsheet where you would put, you know, how long did they live there, what age were they, what floor plan, how many beds, how many baths? Any characteristics within that neighborhood, you know, on the water, on the golf course with a view, you know, by the dumpster, dumpster, whatever it is. And you’re looking for anything that stands out trending wise. Is that really.
Stuart: [00:38:30.43] You got it. You got it. We found that there aren’t many of these, but we found that houses with outdoor kitchens in particular areas of our market really, really sold fast.
Beatty: [00:38:43.06] So so actually then when you do this analysis, you’re actually looking for two things which are the better listings to have?
Stuart: [00:38:50.29] You got it.
Beatty: [00:38:50.92] And which are those the home types that are selling the most of or what are they? Were the characteristics that sell the most versus which are the better listings.
Stuart: [00:39:00.88] Yeah you got. So what is what. And you phrased it two ways. Who’s more likely to sell.
Beatty: [00:39:09.96] Right.
Stuart: [00:39:10.65] That’s the best list. More opportunities. And so an example of that is my senior exemption micro list. They’re more likely to sell than other sellers. And then what listings are best when you get them? You can’t say, Hey, a senior is a better listing because they’re easier. I mean, you can’t go down that path. But the a better listing to get is a listing in that acreage range that I described earlier or in that price range and that neighborhood that ascribe those are the best listings. So I think both of those make good macro lists. Someone whose home expired and they haven’t re listed more likely to sell. Somebody who owns a one storey home between 24 and 2800 square feet, priced from 500 to 600 more likely to sell fast.
Beatty: [00:40:03.21] I love it. So most likely to sell and better listing to get. Those are the two categories you’re looking for when you analyze that. And for now, most agents that I’ve worked with are not very analytically minded. So if you’re listening to this and you’re feeling like you’re about to cave in because this isn’t your skill set, find someone who’s a computer nerd, someone who doesn’t like to deal with the public. They like to close their doors and work on their computer. Those are the because that’s who I am and those are the people you say, Hey, I got a project I want to hire out to you and let them look at that data and analyze it because you’ll find that that’s what they love to do.
Stuart: [00:40:45.84] And I’ve got an agent who is I mean, she just loves spreadsheets. She can manipulate, do all the data. And I’m kind of I’m kind of that way, too. I’ll take that spreadsheet of homes and I’ll do all kinds of sorting of the data, you know, the size of the houses, the the deed. When was it recorded? How long have they been there? You know, I mean, just all that data and we’ll start to see the patterns the most again, the most likely to sell and the best listings to sell.
Beatty: [00:41:18.99] That is really cool. And it sounds like too. Then on a lot of this, while you see where most of the sales are occurring, the patterns, you also almost need to map it up against the full list of that niche to compare what you know, if 20 or 30% of the sales are this one category, but that’s also 30% of the list then that you’re not getting. Yeah, I guess I guess you do get a sell a lift on that if that, if you focus.
Stuart: [00:41:49.08] Such a better listing.
Beatty: [00:41:50.19] Yeah. It’s a better listing. Exactly.
Stuart: [00:41:52.31] Yeah. But you’re not so so you can’t, you can’t take one niche and go into so many macro lists that they’re getting seven mailings a month that that drives people crazy. But I think you can take a niche and legitimately go into two very effective micro lists, maybe three, but I have two micro lists within each of my niches.
Beatty: [00:42:15.75] Okay. Well, this is fascinating. And I love the concept when you and I spoke about this the last time, and I think it’s revolutionary simply because now you can target you’ve already got your main marketing going out there and with just a little bit extra effort, man, the lift in new listings or better listings is huge. Yeah. So you’ve seen this increase. So I know that one farm where you focus on expired, I think at the expires, produce three times more sales than the farm at large. That’s correct. What other are you seeing that pretty much across the board that your micro lists are producing about on the.
Stuart: [00:43:03.48] Macro list outperform the the overall list? Yes. And if they don’t, there’s no reason to do them.
Beatty: [00:43:09.00] Yeah. Yeah. Well, man, that seems like it’s worth the effort to go through and find that micro list.
Stuart: [00:43:16.55] It’s very affordable. I had an agent the other day said, Well, why don’t I just meld with the 74? Well, if all you did was go to all the major neighborhoods in your market and find the plastics buyers and mail to them, you’d have a pretty lucrative business.
Beatty: [00:43:34.25] Yeah. Vertical past client sphere of influence. We talked about that. If you were to guess what, how would you divide that in micro list? Because everyone has that. That’s a niche for them because it’s a niche of people that know them and hopefully already trust them. Right.
Stuart: [00:43:52.32] Well, you’ve got I mean, basically the macro lists that come from there are pretty well defined by your. History. In other words, in there, most of the coaches that teach the past client processes and things like that. So mine is divided into groups just like know a lot of agents are. But I have a small core group that between them they probably send me more referrals than the rest of everyone together. Okay. But I just I really cherish and appreciate the, the person who I hadn’t heard from in three years and all sudden I get a referral from them. That actually happened to me. I’ve got a house under contract today that I’ve stayed in touch with them, but they’re not the type of people that we’re going to go chit chat or anything like that. And all of a sudden I got a great referral for a very wonderful client and great listening from someone that I literally have not spoken with in nearly five years. So it’s broken up into. I have it into three categories and I know that a lot of agents will do four or five or whatever, but basically I market to those people that send me the most referrals, I market to them the most. And then I’ve got my second and my third groups in a market to them a little bit differently.
Beatty: [00:45:16.27] So do you send us scroll lists?
Stuart: [00:45:20.14] Really, what.
Beatty: [00:45:22.72] Do you send? So if you look at because this may also simplify micro lists with your three groups combined, do any of them get a common marketing piece?
Stuart: [00:45:33.97] Yes, they all get a common marketing piece, yes.
Beatty: [00:45:36.16] And then you’re just taking those three groups and adding more and modifying it to. That’s correct. Okay. Okay.
Stuart: [00:45:43.99] So for example, if someone sent me a referral any time in the year 21, they got a really nice gift at Christmas. And if they didn’t send me a one in 21, but they sent me two and 20, you know, they still got the gift. They have to go several years before they quit getting the gift.
Beatty: [00:46:02.37] Right. Very good. Well, this is fantastic. Before we wrap up, anything else that comes to mind that you would love to share with our listeners?
Stuart: [00:46:14.23] No. I guess it’s just a matter of. And I think you said this on the other podcast. It’s it doesn’t sound exciting, but consistency is everything. If you implement this process and are consistent with it and it’s it’s probably surprising to you because you came into the real estate business from being very successful in another arena. I’ve always been in the real estate business, but it’s surprising to me how many agents and I’ve seen it as recently as this month had great success doing something and then quit doing it.
Beatty: [00:46:52.33] Really.
Stuart: [00:46:53.47] So consistency with that process is, is everything. Just be consistent with that niche, with that farm, with the micro list. If you if you aren’t consistent with the macro list, it’s not going to be beneficial to you. But the micro list is so powerful. I mean, and there’s some very obvious ones for self owners, for example, it’s another macro list. There are some very obvious ones that it’s really the secret sauce toward getting a farm started quickly. And we’ll go back to the old myth that it takes a long time. It does not have to. If you really pay attention and focus on those macro lists within your niche.
Beatty: [00:47:38.44] You know the consistency. I remember one of our early clients, she got a listing and she was a brand new agent, so she had no sales to show off. And she got this listing about three or four months into our marketing and the homeowner said, you were consistent. So I called you and I thought, Wow, in that brilliant.
Stuart: [00:48:02.25] So it’s nuts when your advice actually comes back, then.
Beatty: [00:48:07.09] It really is. So for those of you listening, stay consistent with your marketing. If you’re not doing marketing, you really need to start with your personal list, then move to not met list a niche if you can give it time to work and perform. And that is really I love what you said earlier. I think it was on this call. Yeah. The thousand homes is best to start a farm if you can, because the numbers work. And one of the things that was really interesting in almost all of our clients who earned at least 100,000 and GCI with us in their first year, in almost all cases, they were targeting about 1000 homes or more.
Stuart: [00:48:54.16] There you go. There you go.
Beatty: [00:48:55.87] You can cash flow quickly with a sale if you have the cash flow to do a larger farm.
Stuart: [00:49:01.75] Proofs in the pudding.
Beatty: [00:49:02.98] Yeah. Thank you so much, Stuart. Let me for those who haven’t heard. Stuart has a book out. It’s called Niche Marketing Blueprint. You can go to niche marketing blueprint dot com to purchase it. He is a master of niches. That’s how this whole caller got started talking about niches and then these little micro lists. So please check him out and love for you guys to let us serve you if you want. Over at agent dominator dot com. And Stuart thanks again. And you have another very blessed 15 minutes before we start our next call.
Stuart: [00:49:40.33] Thank you so much for having me.
Beatty: [00:49:41.77] All right. I’ll get you guys. Be blessed.
Stuart: [00:49:44.83] All righty. Bye bye.
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