"There's Gold in Calling Cold" writes Bernice Ross, Real Estate Coach and author. "Only a small number of agents earn $250,000 per year. A common path to success that has worked for years is cold calling."

How much do you earn per hour?  Let's say you made $100,000 last year.  You worked 40 hours a week and 50 weeks during the year.... That calculates out to $50 an hour.  Not bad.

What can you do to raise that hourly wage?  "Would you be willing to repeat the same monotonous task for 15 hours per week in order to earn (more)?" asks Ross. "What if the task was a simple as picking up the phone and repeating the same script over and over?"

The question is, does cold calling still work in today's web-based world?  A new study from Baylor University researched this issue using real estate agents across the country:

"134 agents from 10 different geographic areas were divided into two groups. Each group was asked to set aside a different hour each day, for seven days to make cold calls. They used the same script and were asked to record the results of their calls in an online form so that the data could be collected in real time. For this study, cold calling was defined as dialing random numbers, from a certain farm area not previously marketed to by the agent. The result was 14 hours of lead generation over 14 days."

The results were that 28 percent of the calls connected with a live person and of those, 14 percent were not interested but 2 percent asked the agent to call back.  (71 percent of the calls either were non-working phone numbers or no one was home.)

All in all, the agents set up 19 appointments and received 11 referrals. To sum it up, "for every 60 people the agent actually reached, the agent would either receive a referral or schedule an appointment." says Ross.

No one said it was easy.... Ross figures that if an agent can make 50 calls per hour, one appointment will take 6 hours of cold calling. For every 2 appointments, you usually get 1 listing. "That means for every 12 hours of calls, an agent can expect to achieve 1 listing; and if an agent's commission averages $4,641 that equates to a return of $386.75 per hour."

So, how did the agents in the survey feel when they were done?  Fatigue set in.  "By the time the agents had spent 11 hours cold calling, all 134 had quit calling." says Ross.  "Yet the data showed that it takes 12 hours of cold calling to generate a closed deal. In other words, the agents quit one hour short of reaching the 12-hour goal."

How can you utilize this in your Business?  One point to come from the survey is, the best time of day to call.  "If you are cold calling, the data suggests that you will achieve the best results if you call between 10:00 a.m. and 2:00 p.m." writes Ross. "The least effective time to call is after 5:00 p.m."

"Readjust Your Mindset." says Ross.  Most consumers dislike cold calls but this survey proves that 12 hours of cold calling gets results.  The Baylor study concludes with this important point: "Spending 3 hours a day, cold calling, Monday through Friday can potentially yield $290,063 in total commissions in a year."

Adding good old-fashioned cold calling to your lead generation goals could be just the boost your business needs this year.   

Not everyone will see this article and think, "Oh! I'm starting this tomorrow!" But, says Ross, "For those who have the persistence and the discipline to make those calls, the win for their business can be substantial."   

Read more great articles from The Real Estate Coach.

Posted in Technology And YOU

The Colorado Springs metro area average rent rose year over year for the ninth quarter in a row during the first quarter of 2012, according to a Colorado Division of Housing report.  The average rent climbed 2.4 percent to $754, up from $737 during the first quarter of 2011.

"The apartment vacancy rate in the Colorado Springs metro area rose year over year to 6.4 percent during the first quarter of 2012," reported CDOH, "rising from 2011's first-quarter vacancy rate of 5.8 percent, which was a ten-year low. The first-quarter rate fell from last year's fourth-quarter rate of 6.7 percent."

As rents rise metro wide, there is a movement of tenants into the lower rent areas, such as the Security-Widefield area where vacancy rates plummeted in the first quarter of the year from 16.2 percent to 5.3 percent.

Read the full story at Colorado Division of Housing

Posted in Headlines

An Open House is a lot of work for both the seller and the REALTOR®.  Sometimes do you wonder if all the fuss is worth it?  According to the National Association of REALTORS®, 45 percent of all buyers used Open Houses as a source in their home search; proving that an Open House is a valuable tool in the home selling process.

Though the exposure for the home is great, it exposes you, the agent, to potential risks.  The NAR offers these tips to make your next Open House a safe one for all involved.

1.    Work with a partner if possible.  Try never to be alone.

2.    Make sure your office and family know where you are and call in often to let them know everything is alright.

3.    Make sure your cell phone works at the home and preprogram emergency numbers on speed dial.

4.    Have a sign-in book.  Ask for full name, address, phone number and email.

5.    When showing the house, walk behind the prospect and avoid getting trapped in small rooms. Direct them, don't lead them. Stay between the prospect and the exit.

6.    Inform a neighbor, next to the home that you will be having an Open House, a kind courtesy for them to let them know of increased traffic, but also ask them to keep an extra eye out for anything unusual.

7.    Be familiar with the floor plan of the house, including other exits and escape plans. Check all rooms to make sure everything is as it should be.

8.    Don't assume that everyone has left at the end of the Open House.  Check all the rooms and the backyard prior to locking up the house.

9.    Be prepared to defend yourself if necessary.

A real estate professional faces many risky situations every day; Open Houses are just one of the potential risks of the job.  The NAR offers a free safety webinar to help you stay safe on the job: Every Agent's Five-Step Plan for Open Houses.

Read more about Open Houses and Safety at NAR

Posted in Traditional Marketing, Real Estate Industry Trends

Denver area apartment rents rose 4.5 percent in the first quarter from a year earlier.  "This is the biggest year-over-year increase in a decade." reports Dennis Huspeni of the Denver Business Journal.

Vacancy rates are continuing to drop, so this wasn't surprising news.  "Average rent for the seven counties portion of metro Denver area stood at $952 in the first quarter, up from $911 in the first quarter of 2011." said Huspeni.

Rents rose higher in Boulder county, as well, and Douglas County posted the highest rent at an average of $1,109.

"Vacancies are falling both metro-wide and in most neighborhoods we survey," said Ryan McMaken from the Colorado Division of Housing.  Vacancy rates fell below 5 percent for the first time since 2001.

"There will be 3,000 apartment from new construction added this year, and an estimated 5,000 in 2013." reports Huspeni.   Most will be high end units, though, so even those numbers won't provide enough housing for the demand.

Read the full story at The Denver Business Journal.

photo credit: yiduiqie

Posted in Real Estate Market Conditions, Real Estate Industry

More good news in the metro Denver housing market, reports Dennis Huspeni of the Denver Business Journal.

"Metrolist Inc. released its April data Thursday - and every category showed year-over year improvement." writes Huspeni.   "Inventory was down, sales were up, average sales price was up and the number of pending contracts increased in double digits."

Pending Contracts are up 3 percent from March and 25 percent year over year.  There were 5,681 homes put under contract in April 2012 which is a rise of 20 percent from last April and up 7 percent from March of this year.

Inventory of homes and condos for sale declined 37 percent from last year.

Average Days on the Market fell to 90 days in April down 13 percent from March and 20 percent from last year.

Average Sales Price is up 6 percent from March to $275,241, compared to $259,422 last April.

Sales volume increased 12 percent in March and 14 percent in April, year over year.  Denver has become a hot market.  Demand for lower priced homes (below $250,000) has forced their prices up at least 10 percent, year over year, and buyers are making multiple offers and offering more than the list price in some cases.

"However, many buyers are getting burned out." writes Huspeni. "(They) don't want to participate in a bidding war." Some are choosing to just drop out because they can't find what they are looking for and they don't like the pressure.

Cash offers are up, reports Huspeni, but the "move-up" market is not really big right now.  The majority of buyers are relocating to Denver or are first time buyers looking to get in on the market. 

Read the full story at Denver Business Journal.

Posted in Headlines, Denver Colorado Real Estate, Real Estate Investing