7 years in the real estate business selling real estate at a high level, mostly on the buying side of the business and I feel like sharing with you a few of my trade secrets and advice for newer real estate agents.
Most real estate agents that I’ve come into contact with as a real estate coach or simply as another real estate agent, usually have an expectation to make a six figure income if not more. The sad reality is that the average real estate agent closes less than 6 transactions a year (according to National Association of Realtors – NAR). So why is that? Why is it that so many real estate agents fail to make their ideal income and in many cases do not survive after their first year in the real estate sales business?
It Boils Down to These Three Things.
Newer real estate agents never fully understand the value of mastering different roles and systems within their business.
Allow me to take you back to 1995. I was 15 years old then, with thick eyebrows, a spunky type of attitude and on my 3rd job ever as an IHOP host/server, which I worked at the restaurant on weekends and some evenings after school. “My IHOP” was a new location for the company. IHOP is obviously a franchise and all new business owners of any franchise have to go through a series of training modules like cooking, serving, hosting, book-keeping, pay-roll, clean-up, washing dishes, security, ordering food, hiring employees, promotions, conflict resolution, etc. Every new business owner has to learn the ins and outs of the business. So, at 15 years old, I watched my manager, the owner, complete his training modules. Representatives from the IHOP corporate office were monitoring his progress and often came on-site to assist in his business development. This training and evaluations went on for several years. Where new real estate agents fail is they don’t recognize that where they first hang their license is equivalent to buying into an IHOP franchise with systems and procedures that already work. So, my advice to new agents: don’t reinvented the wheel until you’ve mastered the business. I know this is easier said than done since most real estate agents are entrepreneurs at their core, but you have to resist the urge to change the real estate world until you’ve mastered a successful business model, one of which your broker celebrates and implements.
I am a huge basketball fan. I can watch basketball games all day long and twice on Sunday during football season. Not having played basketball a day in my life in an organized fashion, I imagine that a team with two centers, two point guards might be dysfunctional to say the least. When you are starting out as a new agent, you could find some quick success being a role player for a top producer or team leader as I did when I first started out. In fact, I naturally gravitated to buyer’s agency when I first started the business. Top real estate agents had the listings and therefore these were the agents swimming in buyer’s leads, which they were more than happy to hand off these names, phone numbers and emails address to me for a referral. I was happy to be the recipient of these easy “assists” since I needed the push and did not have a book of business. Once I got my feet wet and the buyer leads where thrown my way, I knew I could score and make my own shot if I followed a system. So, my advice. Embrace being a role player for someone else for a while. It will provide you with the experience and confidence you need to make your own shot in the future.
My boss at the IHOP actually loved to cook. He was the kind of guy that would get behind the grill and make the pancakes of which he feed me all through high school and part of college. But, he recognized that he also ran a business and if he didn’t hire talent or leverage his time, the other areas of the business that needed him would suffer greatly. The business would one day be in serious trouble if he didn’t leverage. So, he hired managers, took on a partner so that he could have a life, even if it meant that he had to share his profits.
So there you have it. My 3 secrets or more like lessons I have learned over the years. What secrets have you learned?
I am an exceptional buyer’s agent and if you like for me to fill a role in your organization, you can send your NJ buyer and seller referrals my way. My goal is to close 3 more buyer leads by the end of the year. If you have that hot lead or even that person who’s thinking about moving now or in the near future, do refer.