It's a paradox when you're a new agent; How can you get experience, if nobody will work with you because you don't have any experience!"

What got me thinking about this was a post by LaNita Cates titled, "But Weren't You A New Agent Once Too?" where she broached the subject of agents telling the public that they should only consider agents who have done XX number of transaction.  In her post she points out that it's probably only agents who have at least that number of transactions who are marketing this way. I'm sure that she's right on that one! 

Regarding her statement that, "An agent that has had 5 transactions can be just as good as an agent that has had 100 under their belt.", I don't know that I agree with her totally on that one.  I honestly don't know how many transactions that I've been involved with over the years, but if you count the ones that I got personally involved with as a manager, it would have to be in the thousands and as they say, "There's no substitute for experience".  That said, I do think that a new agent can over-come lack of experience and can actually have a competitive advantage over a more experienced agent, if they play their cards right.

It's a fact that in most real estate schools don't teach you how to be a real estate agent, they teach you to pass the test.  Once you've passed the test, it's up to you to figure out how to make a go of this crazy business.  In the beginning it becomes obvious that no two transactions are ever the same and that there is probably not very many other businesses where so many other people have their fingers in YOUR pie!

It can be very frustrating because you're always being surprised.  No sooner do you learn something than they go ahead and change it!  Or something comes in from out of left field that messes up your transaction.  As a new agent you're sometimes left wondering how it is that anybody can ever have a smooth transaction!

Well, I can tell you that part never changes!  It doesn't matter if you're new to the business or if you've been around for 20 years, real estate and the auxiliary businesses are in a constant state of flux.  More so than ever things can change on you and as always, the people who are involved....all of them from the buyer to the buyer's agent to the buyer's loan officer to the buyer's loan officer's processor...to the seller's agent to the seller to the people at city hall who record the closing documents are still people.  Things are going to happen, people are going to get sick or drop the ball or somehow manage to upset your carrot cart. 

If you end up doing enough transactions eventually one is going to blow up on you!  The secret is not in having a transaction never blow up on you, though that would be nice.  The secret is in learning how to manage the process and to learn to be able to adapt and keep your transactions moving forward.

The only way that I know to learn this is by experience.  Hence the paradox!

So, What Can A New Agent Do?

What I suggest is that you team up with a more experienced agent who is doing some transactions.  Offer to co-agent their deals.  If you can get them to pay you for your time, then great!  If not, the experience and the track record that you will gain can be more than worth your time and effort. 

Get involved in the transactions.  Take note of each party involved in the transaction's role.  Examine how they are doing their job and how people are reacting to them.  Remember you can learn as much by learning what NOT to do as learning what TO do.  Take note of who does a good job and who didn't.....and why you felt this way.  Was it irritating when that seller's agent didn't return your calls?  Well, now you know why it's important to always return your calls! 

By participating in these transactions, you'll be building your knowledge base, as well as creating your own war stories to tell.  You'll also be learning how to manage the process.

Invite An Experienced Agent To Join YOUR Team!

Knowledge and experience are two of the most important things that an agent can bring to the table, but they're not the only qualities.  As I wrote about in my post, "Too Stupid To Know Better" where I wrote about my experiences when I got into the business back in 1984, sometimes a new agent can bring with them the ability to look at things from a new perspective.  A new agent can also bring to the table a certain amount of zest that most agents lose over time.

This zest can put you out in front of people and in a position to do some deals.  These folks are still going to be concerned about your level of experience and this is where having that experienced agent on your team can benefit you. 

"I understand and appreciate your concern about the fact that I've never done a real estate transaction and that's how come I've brought Joan BigTime onto my team.  She's been an agent for 20 years and has closed thousands of transactions.  If something comes up where I need her help, she's just a phone call away!"

Your arrangement with Joan BigTime can be whatever you decide it will be.  Maybe you pay her a small percentage on each deal that you close during your first year or maybe you simply buy her a dozen roses when she least expects it, but no matter what arrangement you end up making, having an experienced agent on your team can add a certain amount of legitimacy and can help you over-come the "experience" objection.

And don't be afraid that these types of arrangements are a one way street!  The more experienced agent benefits in numerous ways...most of them having nothing to do with monetary gains.  To me, watching an agent grow, become a craftsmen and hopefully succeed in this business has always been my biggest reward. 

Pay It Forward

Eventually the torch will be passed and it will be you that will be the experienced agent.  When this time comes, don't forget that "You Were Once A New Agent Too!"

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc.

Bob Mitchell is president of ValueList Real Estate Services,  St. Louis' largest discount/full-service real estate and mortgage company.  If you would like to find out more about Bob, ValueList or our flat-fee listing program, please feel free to visit our web site at valuelistre.com