Life After Real Estate

I agree with so many of you. This is more of an extreme customer service position more than anything. I feel sales takes the backseat. This job takes empathy, patience, an ability to think outside of the box and to play well with others.

Good Post.  

First of all many new agents don't realize that being a Realtor is a business, not a job. I also believe why there is such a high turn over because very few new agents don't have 12 months or more reserves. They are often TARGETED by so called experts who has never sold a home or worked with a buyer telling them if they use their CREDIT CARDS and buy into their programs, they will become successful! When I was a new agent 15 years ago, no one explained how important Lead Generation was, nope just pull out your credit cards and buy for more crap sucker!   Lastly, many are so in debt by the end of their 1st year, their significant other or spouse is pressuring them to either sell something NOW or get a job.  Financial stress has killed many real estate careers. 

This is one reason I rarely fire clients.  I almost fired a guy once that I showed homes to for 2 years.  He eventually bought 3 and sent be great referals.  

While I disagree with the opening sentence "real estate can be a cut-throat business", I do agree that it is a difficult business.

Wayne Miller mentions that being a Realtor is a business not a job.  This is key.  As Realtors we are our own business.  In any entrepreneural endeavor, sales is involved.  One MUST sell themselves while selling the product or service.  Sales is not for everyone, nor is being in business for one's self.  To be successful at what one does, it takes a lot of long hours, rejection, patience, determination, and when the ball gets rolling - time management, balance, etc.

A comment early in this conversation indicated that as a listing side agent one is not in sales....which is not true at all.  One of the many reasons a lot of listings stay on the market (in good markets) is because the listing agent is not marketing correctly or enough.  I now have a team of buyers agents and can't tell you how many times a client is interested in a home but the listing agent does not return calls and I've had plenty be just difficult individuals... Sellers are learning that their listing agent needs to be a good communicator, easy to work with, etc - which is all part of - sales.

Being a Realtor is not for everyone.  Real Estate does have many avenues one can establish a career and even just have a "job" but being a Realtor is not a job.  It is practically your life.  If it is not something one is passionate about, its easy to get burned out.  I love what I do.  So much, I began building a team around me to do more and lead my team to be just as passionate and successful as I have been in helping people buy and sell homes.

"70% percent of real estate agents quit during their first year."

More for us.

Great post Harry, and I see new agents starting and not so new agents leaving the business every month, when one office closes another opens, so your message is so true, most people don't have the mettle to handle rejection or don't have the passion to be persistent so real estate is not for them.

If it is cut-throat then you are around a tough crowd. Yes there are always a few agents who don't follow the code of ethics however it is a small percentage and not many agencies would/should allow it.

Harry,

You tell it like it is.  Most people who get into real estate like other sales professions quit after the first year. This is the same quit percentage for most other sales professions.  Another observation is that a large percentage of agents have another full time job and do real estate on the side. 

Thanks for your post,:) Like Nancy mentioned, it sounds alot like a home staging business and many other businesses involving sales. Persistance and passion for what you do I think are the keys to success. I've heard that for many right when they are thinking of giving up, success happens soon after. So just hang in there and it will come!

Harry - this is a great post.  Sales is not for everyone and I would wonder if anyone leaving Real Estate because the can't handle rejection would venture into insurance.  Persistence and having a passion are highly important.

..but this can be said about ANYTHING!  Real Estate Sales (15 years for me now!), is NOTHING compared to playing professional polo with guys that don't want you out there.  Good grief..how lucky we are to be able to make our own hours, meet great people, LEARN something new with every deal, and make peoples' dreams come true!  It's a gift for me..but certainly not EASY, as is nothing worthwhile.  Thank you!

Getting started in the this business should be regarded the same as starting a franchise.  You are opening up the business of you selling real estate and it takes months to years to get rolling and even then you need to work harda nd spend a great deal of money to stay there on the top of everyone's mionds of who to call.

If you come into this and cannot spend the time or money to get going you should not start.

It will lead to a great deal of debt and frustration if you think a Broker will hand you business and closings will just add up

Yes it is a tough business, everyone is out for themselves. Turn your weaknesses into strengths and perservere. If you put the client first, in the end you will have success.

It is certainly true that doors of most Real Estate offices should be revolvers.  Its always been that way for the 16 years I've been licensed. I just figure this is how the Broker Owners  and local and National Associations must want it or they would do something to  put pressure on the State Licensing regulators to raise the entry level to the Profession.

You mentioned that real estate is a "highly lucrative business"  I think that is the biggest reason we have so many people start this business but soon after quit.  They have the misconception that they are going to walk into the profession and start listing a bunch of homes and working with a lot of buyers.  When I first started back in 2009, it took a while before I started selling homes.  A good six months.  I was surviving on leases before that, and leases kept me alive for the first two years...Today, I am finally starting to get referral to get referral clients.  It doesn't happen overnight, unless of course you already have your ace in the hole.  Which most of us don't have that luxury. 
In reality, according to the Bureau of Labor and Statistics, "real estate agents earned a median salary of $39,800 in 2013. The best-paid earned about $98,090, while the lowest-paid earned approximately $21,240. The highest earners worked in the metropolitan areas of Lake County, Illinois; New York City; and Ocean City, New Jersey."   http://money.usnews.com/careers/best-jobs/real-estate-agent
So Shows like Million Dollar Listing is not really the norm, it is more like the exception.  Yes there are Realtors who are doing that well, but the vast majority are not.  Just like in any profession.  There are Lawyers who are extremely successful, and those who get by.  Same with just about any sales and service oriented professions.  The competition can be fierce, and it is not a job for the person who gets their feelings hurt easily.  But if you stick to it long enough, provided it is something you enjoy doing...You will eventually persevere.

I am with #91. The first thing to do in this business is increase the barrier to entry. It is in my opinion NOT  a sales job but rather a service industry, based on knowdledge and experience of the indiviudal agent.  And yes, I am thinking about writing a book too. I would like to show it can be done better and differently.

If you want to make it you have to work hard everyday

What I really like about real estate is that I am facilitating the democratic process.  How so?  Homeowners become concerned neighbors (albeit to protect their property values), who in turn, pay attention to the police, schools and city politics because they want to make sure their property tax is put to good use and so it goes!  I'm quite proud to make a new homeowner out of someone!  No other industry can lay claim to this unique feature of creating homes out of houses for people.  

Great post!  To me, most industries / marketplaces are "cuthroat" and competitive.  Jumping fields looking for an easier answer, to me, is not always the best answer.   My career advice to Clients who ask me is to find a field / career that fascinates you, dig in, persist and become the BEST.  Have NO plan "B."  Elimate distractions and eventually you will become the one to beat.  And you can do this without cutting anyones throat.  Good luck!