Running a Real Estate Business!
I just finished reading an article about running a real estate business and what the new real estate professional needs to have and do to survive in our profession. Very interesting statistics I thought I would share.
Within the first year as a Realtor 90% of the newbees are out of the business. Within 4 years only 7% of the remaining 10% are still around. The average agent with 3-5 years experience earns an average income of $27,100. Why do 93% of new Realtors drop out of the industry?
Running a Real Estate Business is like any other sales business. The difference is we are THE business owner under the umbrella of a real estate company. Each Realtor must be a business owner in order for them to succeed. As a business owner we need to make decisions in the interest of THE business, even if it conflicts with what we want to do or be as an individual. Real estate can be much like a jealous partner.
Several years ago, I was fortunate enough to hear Peter Drucker speak at one of the many conventions I attend. For those not familiar with this gentleman Mr. Drucker was to business what the silver paper is to the Hershey's kiss. He spoke these words "There is only one valid definition of business purpose - to create a customer"! He taught me that profit is a by product of doing business well!
When you are hiring a Realtor, do you ask about real estate experience? Do you ask how many homes they have sold in your neighborhood or how many buyers purchased homes from them in the past 12 months. I suggest this not to make it difficult for a newly licensed Realtor but to help you be represented by experience and knowledgeable folks. Real estate is not a "hard" business but it is a challenging business. Individuals need to have the skills and desire to have a purpose for their doing business. Real estate is not about making the sale but building a lifetime relationship with that client. Real estate is not about the sale but about helping the client make the most important decision they will make at that time in their lives. A Realtor needs to show they care and are willing to go the extra mile for the best interest of their client.
Re/Max Homeward Bound