Running A Real Estate Business

Real Estate Agent with Keller Williams Greater Cleveland West

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.    

Carol Murphy

Re/Max Homeward Bound

Avon Lake Real Estate





This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Ohio Cuyahoga County
RE/MAX Active Rain Bloggers
Ohio Active Rainers
Cuyahoga County Ohio Real Estate
CRS Realtors in ActiveRain
buying a home
selling a home
experienced agent
ohio real estate
running a real estate business
avon lake real estate
use an expert

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

I have been preaching this for years.  The problem recently is that more of the newbees are hanging in there for the time being.

Jul 17, 2009 01:20 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Carol Murphy

Realtor - Greater Cleveland, OH
Ask me a question
Spam prevention

Additional Information