Welcome to the second part of a 2 part series regarding "10 Things Your Broker Should Have Told You". If you missed the first part you can access is here - 10 Things Your Broker Should Have Told You - Part 1.
New agents often don't know what they don't know. Choosing the right brokerage firm will make or break an agent in the first two years. Here are a few more secrets that your broker should have told you:
6. You Can't Ever Know Everything - Only a tiny part of what people learn in licensing school has any bearing on what real estate agents actually do. The bottom line is that brokers need to teach concrete skills - how to prospect to find clients, what to say once the clients are found, how to conduct buyer and seller presentations, how to overcome objections, and prepare for closings. There is a large learning curve in this industry and new agents need to attend structured training offered by the brokers, local board, and affiliates. While many consumers do not choose a Realtor because they hold a designation, the concepts in the designation classes can help an agent earn more. NAR figures show the agents with a designation earn an average of $73,100 compared to $38,700 without. Your broker should provide the necessary training to help mimimize the learning curve and set you up for success.
7. Your Friends And Family May Not Hire You - Face it, your new. In this business, experience matters. Don't be offended when Uncle Joe goes with "their guy". Your broker should give you dialogues to get around this but you will not get every listing. Think of your friends and family as a referral source but quickly help them refer business by using a newsletter and showing them you are a real estate professional.
8. Some Deals Will Fall Apart - There are many red flags that you should look out for when working with clients. If they are hesitant to get pre-approved or sign a Buyer Broker agreement, it could be a cause for concern. Even if they are in contract, you should not "Count Your Chickens Before They Hatch". The inspection can go awry, the home may not appraise, the buyer's financial situation can change, and many other things. As a new agent you should always wait until after closing to celebrate. Your broker should tell you how to minimize the deals that are likely to fall apart.
9. Without A Business Plan, It Will Consume Your Life - Getting through the first two years is tough, but you have about eight more years until your next phase may make you thinkg twice about what you do. It is called the "burnout phase". You will say yes to almost any opportunity that comes your way. It is important to put a plan in place and set boundaries with your clients. If you don't plan for this burnout phase, it will undoubtedly happen. Talk about the hours with your spouse and kids to develop expectations. Your broker should help you develop a written business plan that includes goals and time management.
10. You Don't Have To Give 1/3 to 1/2 Of Your Commission To A Broker - Many brokers will not tell you that less expensive options exist. With over 70% of agents not renewing their license after the first two years, there is a fundamental problem. I feel it is for two reasons - lack of training and the brokers take too much money. Key Realty offers a 100% commission plan minus only $3,900 annually. There are no monthly fees, no per transaction fees, no franchise fees, and no surprises. We have at least 8 training events every month that helps our agents succeed.
Still want to be an agent? Of course you do! This is a very rewarding career both financially and emotionally. Although these are ten things nobody told me before I got into the business, there are about 100 other things I have learned that will keep me in the business forever. Plug into a quality training program and I look forward to seeing you in the field!
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