It was March 10th. We had just passed our licensing test, and we sat down in the Re/Max office ready to get our new venture as real estate agents started. Here are the ten things I personally wished I had known that day.
1) Lenders Mean Everything
It didn’t take long for us to realize that lenders make the real estate market go round. You have got to refer good lender and hope and pray that your clients choose to use them. If you have a deal with a bad lender, you’ll be screaming the entire way. From $9,000 in closing costs on a $180,000 loan to 3 days of delays between replies, bad lenders can and will drive you insane. Meanwhile, a great lender will help you get to closing and solve problems before you even have to ask. Get some great lenders and form relationships with them.
2) “Buyers Are Liars”
As you meet other Realtors, you’ll most likely hear them say this, and the reason they all say it is because it’s true. Buyers are definitely liars. There have been so many instances in which we show someone the exact house they said they wanted, and they don’t buy it. The really sad thing is we have had people say “I really should have bought that house. It was perfect.” The reason they didn’t is they were afraid to make a decision. The good news about this is the next time they find the ‘perfect’ house, they’ll buy it.
3) It’s Pay To Play
While this didn’t surprise myself or my business partner, it seems to surprise all of the new agents we’ve talked to, so I wanted to mention it. We have had a ton of success quickly. We joined Re/Max, and we were able to instantly start selling. The reason for this is we knew it was pay-to-play. We came in expecting to spend $1,000/month on marketing and lead generation, and that strategy has worked. Don’t become a real estate agent and expect for your business to come to you. You have to go out and market yourself to get the business and make the leads come to you.
4) You Have To Set Yourself Apart
There are currently 400 agents in our local Board of Realtors. Because of that, there is a lot of competition for business on both the buyer and seller sides. A key thing we’ve had to figure out is what sets us apart from the crowd. Is it work ethic? Is it our skills in online and video marketing? Is it both? This is something we had to figure out very quickly. We then had to figure out how to market it and get it out into the public. Once you’ve done that effectively, business starts coming to you.
5) It’s A Feast or Famine Business
One month, you’ll have 7 closings and be on top of the world. The next month, you won’t have any. The key is to live well below your means, budget your money, and let the leftovers from your feast carry you through the famine. This is something many people don’t understand when getting into the business. Consistency is hard to find so budgeting is important.
6) You’ve Got To Commit To Succeed
Many people think you can be a Realtor part time, and while you may be able to in some markets, in most, you can’t. Things move much too fast for you to serve your clients effectively and work another job. We’ve seen many agents come in and fail because they weren’t committed to real estate full time. You’ve got to show up at the office everyday, you’ve got to be marketing everyday, you've got to be showing property everyday, and overall, you’ve got to be working everyday. That is hard to do when you’ve got another job to go to.
7) You’re Not A True Salesman
From our experience, you don’t hard sell in real estate. There are some agents that do, but the reputation soon makes them irrelevant. Real estate is about finding the right house for the buyer, letting them in to look around, and then, letting them make the decision. If you try to push them, they will run from you. A house is the biggest purchase many people will make in their ENTIRE lives. Because of this, they want to think about it and really consider they’re options. They don’t want to be hard sold or pushed into it.
8) Find A Mentor You Can Trust
There is one thing that has been invaluable to us from the beginning — a good mentor. We found an experienced agent in our office that we loved talking to and communicating with, and we got to know her. Now, we can ask her any question in the world big or small, and she will answer it. This person is separate from our broker — who we can also ask any question to. The best thing about having another agent to talk with is you can get a different perspective. You can learn things a broker might tell you about fees, commissions, etc. It’s important to find a friend in the office who has experience and can help you along the way.
9) Never Count Commissions Before The Close
When you get your first contract, you’ll be all excited, “Woohoo! A payday is coming!” Because of this excitement, you’ll want to figure out exactly how much you’re going to make from this deal. That is your first mistake. There are still SO many areas that the deal can fall through. From inspections, to the loan, to the appraisal, to the seller actually having clear title. The deal could fall through in many different areas, and if you count your commission as soon as the offer is accepted, you’ll be out of luck and left feeling disheartened because you ‘lost this much money’. If, however, you don’t know the commission, you didn’t lose any money because you didn’t count it until the close!
10) Real Estate Can Be Extremely Fun!
While it can be stressful, this has been the most fun I’ve ever had running a business. Every minute of the day I enjoy. From solving a problem with an inspection to showing property to writing a contract to marketing for leads. Real estate has been a daily source of fun and enjoyment since we started. There truly hasn’t been a minute of the entire process I haven’t enjoyed, and because of that, I know it’s exactly what I need to be doing. Hopefully, it’ll be the same for.
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If you need real estate services anywhere in East Tennessee, contact us on FasslerKing.com!
