SpencerBarron.com

Being a real estate broker is not an easy job.  Real estate has the potential to make you a lot of money but the truth is it’s not easy money.
I would like to share a couple of things that I feel everyone, especially people thinking they should get into the business, should know. 
The National Association of Realtors (NAR) is your strongest ally and strongest opponent.
     The NAR has vast resources available for you to be successful.  In fact, I dare say it’s impossible to succeed in real estate without being a member or at least dealing with them.  They have gone to bat for you on every level of government to make sure its members can make a living for themselves.  They provide education and training to their members to better equip them for success. Their code of ethics have provided a guide for conduct that usually exceed what your state requires of a real estate agent.  The code also provides a way that the public can seek some retribution when the rules are broken.
    A drawback is that while you have the support of a large group of individuals, you also have the pressure to fit in.  Agents are encouraged to ‘protect their’ commissions. Agents at larger companies are told to sell people on their personality, their work ethic, and their brand.  “Put your picture on your cards and wear your Realtor pin”, is that really going to help you?…maybe but don’t believe all the hype.  Test the ideas to find out what works and what doesn’t.  There will be a lot of propaganda you will be confronted with.  Sift through it and figure out what works for you.
   I see competition on pricing as the most important issue facing the industry.  The job is easier than it was 10 years ago.  Home prices have grown faster than the cost of living.  The same percentage commission would go a lot farther today than it did in the past.  The public knows this so don’t feed them a load of crap if you expect them to respect you.  Find a business plan that works for you.  Check with your employing broker what flexibility you will have in negotiating your commission.  Compete on price to build your business.  Why else would someone hire an entry level Realtor?  Your skills?…  please.  And nobody wants to give thousands of dollars to you just because you have a pretty face either. (Well, I can’t speak for everyone.)  You price your services based off what you bring to the table.  There will be times when you’re going to be up against a monster agent, how will you compete? 
The competition will be fierce so prepare yourself now.
If you’re just getting started, remember these things.
TOP TEN things I wish I knew when I started.
1.         Find out what works.  There are likely just a few agents in the area that are actually successful.  Find out who they are, what they do, and how they do it.
2.         Compete on every level of service including price.  Don’t sell apples if they want oranges.  If they want a better deal, discuss it. 
3.         You’re most likely to start in the most difficult part of the job, helping buyers.  Learn to manage your time.  Pre-screen buyers and educate them so they know what to expect.  You’re the expert so tell them how to make the buying process easier on themselves.
4.         Focus on getting listings more than finding new buyers.  If you get listings, then finding buyers will be much easier.  If you don’t have a product to sell, how will you stay in business?
5.         Avoid the temptation to close the deal at any cost. Don’t pressure your clients.  Point out their options including the options that allow them to walk away.  Your clients will appreciate your honesty.
6.         Homes sell homes, people don’t.  Your opinions are the least important factor. Don’t open your mouth unless you’re asking a question.  If your clients don’t love it the moment they walk in, they don’t want it.
7.         Don’t cave in to commit Fraud.  Your clients and other agents will ask you to do illegal things every now and then.  Don’t risk your career on it.  Fraud of any type is not really in anyone’s best interest.   Remember that your client comes first. Then the deal.  Know what is legal and how to find legal alternatives to situations.

8.         If you have more time than money, spend it at open houses.  You may only turn 1 in 100 walk-ins into a client, but remember…
9.         Each client is worth $100,000.  Each person you meet has a sphere of influence.  You want your clients to brag about you to all their friends. Referrals are your cheapest form of marketing.

10.    The real estate business is not about land, it’s about people.  You can know all about the land, the law, and the improvements but if you don’t know how to give people what they want, don’t expect to make a living.

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