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Questions You Should Ask Before Becoming A Realtor

By
Real Estate Agent with GreatNorfolkHomes.com (757) 560-0881

I have a friend at my brokerage who will not learn new agents' names until they have been with the company for at least a year.  I thought this was a bit cold and asked him why and he told me that since 90% of them won't last, it was just not worth his time to learn their names.  I started to pay attention to how long the average agent lasted...and I think fruit flies might have greater longevity.  For those of you thinking about entering the real estate profession, ask yourself the following questions:



1.  Do I have enough liquid assets to support 6-12 months of living expenses as I get my business up off the ground?  It can take a painfully long time to build up your business in real estate.  You need to be prepared to draw on other sources to pay your bills.

2.  Do I really understand the fees and expenses associated with being a Realtor?  Many aspiring agents do not have a comprehensive understanding of all of the expenses associated with this profession. There are local, State and National board of Realtor fees, MLS fees, continuing education fees, brokerage fees,  etc.  These are the minimum fees required in order to stay in business.  They must be paid whether you make a sale or not.  Additionally, there are "discretionary" expenses...ones that you don't have to pay, but should think long and hard before you cut them out of your budget.  For example, advertising fees, website hosting fees, postage for mailers, purchasing signs and riders, etc.  

3.  Do I have an ongoing thirst for learning?  Real Estate is a complex industry and you will never run out of things to learn.  You must commit to actively pursuing this profession by building your knowledge base.

4.  Am I technologically "savvy"?  There are some agents who can get away without understanding social media, SEO and online marketing.  However, these are usually agents who have been in the business for decades and have a vast referral base.  If you are new to the industry, you must embrace technology in order to leverage it to your advantage.

5.  Do I have the personality that will be driven to work hard and drive my actions, even though no one is holding me accountable?  You are your own boss in real estate.   You need to be the type of person who will develop a plan of action, follow it or modify things that are not working, despite the fact that no one is checking to make sure you are working on your career.  In the early days, you may not have as many client responsibilities.  This is a golden opportunity to build the tools and develop the skills that will make you successful.

If more agents would ask these questions of themselves, perhaps we would have less attrition and my friend could start to learn their names when they first arrive at our office.

Posted by

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(c) Copyright 2012 Kathryn Maguire.  All rights reserved.

Kathryn Maguire, MBA, GRI, ABR, SFR, and e-Pro  

The Real Estate Group

Serving all of Hampton Roads, Virginia, including Chesapeake, Virginia Beach. Norfolk, Suffolk and Portsmouth

GreatChesapeakeHomes.com

GreatNorfolkHomes.com

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Kathryn@MyAgentKathryn.com

(757) 560-0881 (Cell)

(757) 410-8500 (Office)

(888) 696-2613 (Fax)

Comments (22)

Monica Nunchuck
Florida Homes Realty & Mtg - Saint Augustine, FL
St. Augustine Buyer's Agent

Am I a People Person Do I like helping people achieve their Dreams? Is another important factor!

Jul 31, 2010 02:06 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Well said.

I would add Do you think your broker will take a year to learn your name.

Jul 31, 2010 02:13 AM
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

It's unforturnate that there isn't a pre-school class that explains to the wanna be Realtors exactly what you've outlined.

The reason there isn't is because the vast majority of them would opt out of being a Realtor because they'll learn that it's going to cost them more money than they have, and that the big bucks from the fat commissions making them rich quick  is a myth.

The real estate schools would go out of business, and brokers relying on desk fees would have to change their business model.

Jul 31, 2010 02:19 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Monica:  I actually think that this is one trait that folks think will carry them through if they can't answer yes to my five questions.  Being a people person is great but it won't pay your bills.

Richard:  OK, it was not my broker who does not learn the names, just another agent!  But I had to laugh when I read your comment.  That would be a bad sign indeed!

Jul 31, 2010 02:19 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Bill:  I see these new agents and I feel for them.  They have no idea what they have gotten themselves into. And it can be financially devastating if they are not prepared.

Jul 31, 2010 02:21 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Kathryn....the problems reverts back to the hiring process....so many broker/managers hire agents as long as that agent is licensed....they throw it up against the wall and if it sticky it stick and if not, it falls.....this is neither fair to other productive agents within the office nor to themselves.....turnover in an office is a reflection of an unstable environment.....who would want to list with that door continually swinging....brokers need to be more selective and not hire those who have potential to be categorized at debris....this topic really hits a nerve with me....can you tell??

Jul 31, 2010 02:23 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Barbara:  I am not surprised at all that you would bristle at the thought.  Because it is obvious that you take mentoring VERY seriously and are very selective about who you bring in.  I think that your model of brokerage is quite commendable!

Jul 31, 2010 02:31 AM
Pat & Wayne Harriman
Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT
Broker/Owners, Wallingford CT Real Estate

This is a great companion piece to Jamie Prezzi's featured post about "Tips to New Agents: It's Not as Easy as it Looks". I also slapped the SUGGEST button on my way out!

Jul 31, 2010 02:43 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Pat and Wayne:  Thanks for the link!  I had missed the post from Jamie Prezzi.  They do go hand in hand.  And thanks for the suggest!  Make it a great day!

Jul 31, 2010 02:53 AM
Mary Kay Hopkins
Mary Kay Hopkins, LLC e-PRO, GRI, CRS, CRB - Lake Charles, LA
e-PRO,GRI,CRS

Kathryn, your post, as well as all the comments are on-target.  Prior to my selling the residential phase of my agency in 2001, I used standards similar to Barbara.  The value of my agency was greatly enhanced as a result.  Suggesting as well.

Jul 31, 2010 03:10 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Mary Kay:  Thanks for hitting the suggest button! I think that far too many people think "Oh how fun it must be to show houses!" and see the fat paycheck when a deal closes and have NO idea what it takes to get to that point.  Have a great day!

Jul 31, 2010 03:38 AM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Great points - too many people think if they like "looking at houses" that is all they need - so not true!

Jul 31, 2010 03:58 AM
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

This is excellent Kathryn, I have been working on an ebook entitled "So You Want to be a Realtor" I completely agree, I also think that budgeting is so important, I have been harping for years that pre-licensing should be targeting things like this instead of stupid stuff like how many square feet are in an acre....great job Kathryn I am suggesting for feature

Jul 31, 2010 07:29 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Carol:  If only it were as easy as just "looking at houses!"

Gerry:  I just had this conversation with someone today!  The divergence between what you are taught in your licensing class and what you really need to know to do the job is growing every year.  (And thanks for hitting "suggest"!)

Jul 31, 2010 07:35 AM
Scott Baker
www.eHomeReports.com Coldwell Banker Realty - Liberty Township, OH
Realtor Homes for Sale Cincinnati/Dayton Ohio

Kathryn, I don't hink No. 1 can be said enough times. You have to be prepared to go months without a paycheck. Can you do that? Thank you

Jul 31, 2010 07:43 AM
Shelley Rowton
Move To Realty - Austin, TX
ABR, RSPS - (512) 507-5779 MoveToRealty of Austin

Add to this that you need to keep that cushion throughout your real estate career.  I hate to see longtime agents who failed to save money when it was flowing get forced out of the business because they just had to have that boat or second home instead of ensuring that their business would be able to weather the hard times!

Jul 31, 2010 07:47 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Kathryn,  I have often told people "Hey, I can get a job any day....of course, no one pays me...I create the income for myself and them!".  All to often, management of commissioned people are all about quantity, not quality.  The turn stile approach to both lending and real estate is one of the reasons consumer's don't take the roles as seriously professional as, say, their hair dresser (okay, I am kidding....but, in most states the licensing requirements are stiffer for hair dressers!).

Above and beyond all the items you have mentioned, I really believe today's market is one of the most difficult I have seen in over twenty years (I know, I know...it is not the number of years, it is the experience!, but I have seen more than a couple "corrections").  If someone was asking me about getting into mortgages today, I would seriously recommend a therapist over the name of a broker/banker!!! (I WISH I was kidding....but, I am not!!)

Jul 31, 2010 07:51 AM
Jennifer Dulmaine
Keller Williams Realty - Spencer, MA
Seth Campbell Realty Group

Kathryn, Good Stuff here... I think that our profession is viewed in a few different lights and one of them is that its easy and you can make a TON of Money, which is true BUT you do need more than just LUCK...

Jul 31, 2010 03:29 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Great outline!  The technologically savvy agents are still far and few between here!  Believe it or not!

Aug 02, 2010 02:39 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Scott:  It is so true and I think that people are not educated about what it takes to get any business off the ground.

Shelley:  This is a tragic reality, isn't it?  I talk to so many agents who have real financial hardships right now because of this factor.

Deborah:  I just had this discussion with a local loan officer.  He told me that this business "just isn't any fun anymore."

Jennifer:  Absolutely!  Luck is nice but skills, knowledge and a lot of hard work go much further!

Renee:  It is amazing how few are using technology to their advantage.  I have so much to learn but I am surprisingly far ahead of the majority of agents in my area.

Aug 02, 2010 03:06 AM