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Realities of Real Estate: New Agent Survival

by Jim Crawford

Real Estate may be one of the most interesting rewarding, and lucrative careers available, but not necessarily the easiest to survive and be successful. If it were easy, perhaps we would not see a large turnover of agents every few years. For most that leave our industry, it isn’t better opportunities that draw them away… most just leave disillusioned and broke. They couldn’t make a go of it. They either had no plans or strategies in place to ensure success, or they could not earn enough to sustain their needs and expectations. Perhaps because they were unrealistic and unprepared for what lay ahead, and did not budget their finances accordingly. So how does a newer agent survive?

How often have we seen the new real estate agent come into the office full of enthusiasm and promising deals on the books, and within a short time leave the business? If you ask around, no one even knows if they are still in business! I think we all could agree that this happens more often than not. Perhaps as agents or brokers we should temper unbridled enthusiasm of the new agent with a reality check. Since the real estate industry has a tremendous turn over of agents every few years, wouldn’t it make sense to retain capable agents? Would a dose of reality ensure survival? I think so.

First, let’s acknowledge that the skills needed to pass the state’s requirements for licensing really have nothing to do with one’s selling abilities or marketing skills. Those skills are important, because they ensure survival of the agent. So the knowledge needed to pass a state exam has nothing to do with the mix of skills needed to keep an agent productive for the long haul. Let’s keep in mind this is state license law we are talking about. We aren’t talking about a college degree. I’m sure that most agents joining the real estate business would like to know up-front, what does it really take to survive in real estate, and make a good living at it? They need to know what to do, what should they buy, and what would be a smart purchase once they have established themselves. In short, they need some simple survival strategies.

The survivors and veterans in our business know what will not ensure success. Yes, we are always learning some new techniques and marketing, and scripts to close a deal, but it is not at the expense of buying every new piece of technology, software or gadget that is pitched at us. We know all too well there are no magic bullets or programs that guarantee success. That’s just wishful thinking! That is why most of us won’t attend every seminar, convention or sales retreat. We may just attend the ones we deem important. If we need information or new strategies, we know some of the information may be obtained freely. Perhaps we’ll get advice from a mentor, borrow some sales tapes from a broker, or have a person that we confide in for advice. We fully understand that a key to success is knowledge, and that may be free to obtain. It does not have to be purchased. Success in our business is not achieved by purchasing fancy clothes or a luxury car to enhance our image. It is more than that. It is a comfort and a skill level from within, and built upon our experience. Solutions are not purchased.

Success and longevity does not come from the latest gadgets, software or images we purchase like lemmings! Much of it comes from acquiring skills that assist us in selling, and building a successful dialogue so that we can be relatively successful and comfortable in handling objections. Even if we generate more leads than anyone else in the business, we still need the skills to close them. Those skills cannot be bought! They must be acquired through experience, learning and research.

I am often approached by new agents asking advice on what to buy. They believe if they have the right presentation, the right contact manager, a flashy website, the newest computer or laptop, or the latest tech toys and gadgets… that they will be a success. I totally disagree. More often than not, most agents just acquire the same new presentation software or marketing materials that everyone else in their office or local MLS has just purchased also. If you are laughing, you know what I am saying is true! This is an everyday reality in our real estate business. Here’s an example from our own experience:

Several years ago when on a listing presentation the owner gave us the listing rather quickly one evening. It was so quick and easy, we decided to ask him why? He shared that he became frustrated and fed up with every agent coming in for a listing appointment arrived with the same marketing materials! They all used the same presentation! He hired us immediately when he saw we had our own marketing materials, and unique approach.

Success and survival often dictates we take a common sense approach. For brokers that wanting to retain agents more than six months after they get a license, this is a prime opportunity to tackle these issues! Think of the recruiting dollars saved if we could retain highly productive experienced agents! What a concept! New agents need to anticipate what it is like to live on a commission basis, and budget their funds carefully. They should realize there are many expenses incurred before we earn our first dollar. Marketing our image and services, is not cheap by any standards! Marketing dollars we spend are expensive, and may not produce a return. Once we are established in our business, prudent planning, and research is a wise strategy to implement before purchasing marketing items! But in the meantime, what do we do?

First, it is a wise thing to understand selling, and the nature of sales. We need to take a reality check. We know it is not a magic show, and there are no quick fixes! It really is all about acquiring sales skills that work! So we must be careful where we spend our money, and make purchases only after careful research. It is wise not to impulse buy a fantasy of success. So here are a few thoughts worth sharing from my observations in the business:

Examples if Fatal Mistakes or Lapses in Judgment in Real Estate:

• Impulse buying – purchase now…regret later
• Thinking… “My next sale will pay for this!” - software
• Just one sale it’s worth it. – purchase a new laptop / pc / luxury car
• Buying the same neat software at a seminar that everyone else is buying-wow!
• Buying the same marketing materials everyone else is using at your office
• Is this neat or what? - Wireless gadgets, and Electronic devices
• “Once I figure out how to use it…It’ll be great!” – software, gadgets…

Recommendations: (Focus topics for groups and meetings within office or brokerage)

• Discuss the importance of dialogue scripts
• All purchases must fulfill specific needs
• Identify potential areas in our daily lives that may generate real business
• Learn how to budget our expenses and expenditures
• How to handle objections of buyers and sellers
• Tips on closing a deal
• Discuss how to build a business that generates leads and repeat business
• Mentor programs
• Continuing Education take courses you can use today
• Form a mastermind group
• The Importance of Niche marketing
• Borrow education materials from office library, REALTOR Board or MLS
• Discuss openly what works, and what will not work

We must remember that selling to real estate agents and brokerages is another full time business and industry. There is often more money made from selling to agents…than from the homes we buy and sell. These products are pitched to us as great tools or services for our clients, but it may be smarter to ask questions first before buying such as: “Does it work? Is it cost effective? Who else is using this? How many deals can I expect to earn from this? How long will it take to make a profit? Also, ask for references with phone numbers! Contact the references before you buy! Remember if it doesn’t work, expensive technologies, cars, software, and laptops makes poor paper weights! Oh, and one more thing… “Ask is satisfaction guaranteed, and can you get your money back if not fully satisfied?”

You’ll be glad you did!

Published: March 20, 2003