Hang out in any online forum for real estate agents and it doesn’t take long to feel their disdain for certain other agents.
These include the part-time agent, the clueless agent and those among their ranks who cut corners, are lazy, dishonest and generally tarnish the industry’s image.
The truth is, the real estate industry is one in which anyone has a crack at making big money and it doesn’t require a college degree for entry.
It’s exactly the situation that those who cut corners and abhor hard work seek out – and it leads to an influx of doomed new real estate agents.
“In 2014, NAR reported 87% of all new real estate agents fail after five years in the industry and only 13% make it,” according to Tom Ferry. It’s safe to say that many of those who join the churn gang each year are the disillusioned corner-cutters and get-rich-quick-with-no-effort agents.
We don’t want you to be among these unfortunate new real estate agents, to avoid that, we give you some hard truths that you may not want to hear, but must.
Money’s Tight For New Real Estate Agents
We think it’s safe to say that most new real estate agents enter the business absolutely clueless about when and how they will get their first deal.
One real estate trainer says that it takes six months to one year to hit that milestone.
The truth is, the majority of freshly-licensed real estate agents have unrealistic expectations about their new careers.
You are now a business owner. Although your license is hung with a broker, don’t expect him or her to hand off leads to you. It’s entirely up to you whether you sink or swim.
Hopefully, you have a financial cushion to depend on until you receive your first commission check. If not, be realistic enough to understand that you will be poor for a while.
Set a budget and live by it. Spend your time putting together a sphere of influence and reach out, consistently, to everyone in it.
Glue yourself to an experience agent who is amenable to mentoring you. Shadow him or her on listing presentations, during buyer consultations, door knocking and while preparing contracts and CMAs.
It’s easy to waste time as a new real estate agent, when you are self-employed and nobody is monitoring your productivity. Vow to use each spare moment to get you at least one step closer to earning a commission.
New Real Estate Agents: You’re not a celebrity
There are a handful of real estate agents who legitimately wear the “celeb” label. Maybe someday you will as well. But not now; not as a rookie.
This means that real estate consumers really aren’t intrigued by your life story. In fact, they don’t care about you as a person and they aren’t calling you because they want to be your friend.
They want someone to help them buy or sell real estate. Period.
Last year, the number-crunchers at discount broker Clever Real Estate released the results of a buyer/seller survey. One of the questions they asked consumers was “What’s the most important attribute in a real estate agent?”
Believe it or not, the personal attributes of agents didn’t make the list. Real estate buyers and sellers value knowledge and negotiation skills equally. Coming in behind those characteristics is that the agent is “well-connected” and available.
Although you may hear and read that real estate is a “relationship business,” new agents should concentrate more on the mechanics of helping consumers meet their goals.
Save the details of your personal life for your bio and focus first on closing the deal, while providing the best customer service possible.
Copycat New Real Estate Agents make everyone look lame
Consumers view agents as largely interchangeable. NAR proves this every year in their surveys; most real estate consumers hire the first agent they make contact with.
This is due to convenience, not because they’re blown away by the agent.
The common lament among the general public, in fact, is that “all real estate agents are alike.” And, although that’s an exaggeration, many agents do seem identical. Because they’re copycats.
Take an hour to cruise the net, looking at agent websites. Find each agent’s “Seller Services” section, for instance.
Notice that most offer the same “services:”
- CMA
- “Suggestions on how to prepare your home for sale”
- MLS Listing
- For Sale sign
- Fliers
- Open houses and broker tours
One site that we visited even promised sellers that the agent would “Assist with obtaining offers.”
Sure, you are new to the business, but you most likely know that every item on the list is standard listing agent “stuff.” There are really no true services on offer.
Any agent who doesn’t understand that consumers eyes will start crossing when they come to the third or fourth website with the same “offerings” isn’t paying attention.
How many times does the public need to see that stereotypical photo of an agent with his or her arms crossed, read the same, canned content on real estate websites and witness agents using identical, lame slogans before they consider the entire industry to be one big flock of parrots?
You are the industry’s new blood. Don’t be afraid to innovate, to stand out from other agents in town and to be truly different.
Consumers don’t care about designations
Some years back, a company interviewed homebuyers and one of the questions asked was “What does CRS stand for?”
None of them knew and most, when they found out, said that the designation didn’t impress them.
In fact, one homebuyer said that unless the letters behind an agent’s name are “MBA or PhD, I don’t really care.”
As a new agent, especially, this should be enough to discourage you from spending what little money you have on other tasks.
Consumers not only don’t know what those letters mean, but they don’t care either.
If you list market, you last
That old saying about listing agents, while true, puts the cart before the horse. To get listings requires leads and, to get leads, you need to market, both yourself and your business.
Becoming a listing agent demands that you understand more than just marketing fundamentals.
Unfortunately, real estate schools don’t turn out Elmer-don’t-sell-the-steak-sell-the-sizzle-Wheelers. Like Mr. Wheeler, however, you’ll need to teach yourself.
This is your chance to distinguish yourself as truly unique. By studying marketing techniques, you will eschew the lazy agent methods of promoting themselves and their businesses—the shopping cart and park bench ads that are the butt of jokes and the lame silly slogans attached to their brands.
Like eating an elephant, take this project one bite at a time. Choose a marketing method that you’re interested in and learn all you can about it.
LeadSites can help with this – Real estate websites that are designed with lead gen in mind, and made for agents of any skill level. To learn more or schedule a demo, click here.
For instance, if you are intrigued with social media marketing, you’ll find a wealth of information online to teach you the fundamentals. Then, move on to more advanced techniques.
You’ll find lists of free marketing information and lessons online at:
Many real estate-related services websites, such as this one, offer blog posts for agents on marketing topics.
- Learn about Real Estate Marketing on a Shoestring right here on Easy Agent Pro.
- Beginners Guide to Real Estate Marketing at Real Estate Express.
- 29 Easy Real Estate Marketing Ideas & Strategies for Success at Fit Small Business.
- 30 Real Estate Marketing Tips at Small Business Trends.
It’s a relationship business so treat it like one
We don’t remember when it started, but for years now, agents claim that “real estate is all about relationships.”
Real estate agents aren’t sales people they say.
Many aren’t “relationship” people, either, if we believe the statistics gathered by the NAR.
Seventy-six percent of buyers claimed that they would “definitely” use or refer their agent to others. Only 34% actually did.
That more than three-quarters of those surveyed were so happy with their agent that they would use or refer their agent proves that the relationship was created.
That only 34% actually did what they said they would, shows us that the relationship didn’t last.
“Relationships aren’t static—they are living, dynamic aspects of our lives that require attention and care,” according to Karen Lawson, MD, with the University of Minnesota.
Like any relationship, the ones you will create with clients, require nurturing. And, just as you periodically check in with family and friends, so you should do with those in your sphere of influence and leads.
The veterans in the industry have a wealth of knowledge you can tap into and most that we’ve met enjoy sharing that knowledge.
If you take away little from the veterans you work with, promise yourself to live by this one:
The fortune is in the follow-up