Here I go, putting my neck in the noose again—but I say it’s time.
And I am speaking directly to the ladies and gentlemen who once thought about getting a license and going into real estate, or those who were licensed but got out of the real estate business because they couldn’t make a living and so found themselves a real job somewhere when the market tanked, I say (with a drum roll please) it’s time to reconsider.
Maybe you remember the old “8 Ball” which was a parlor toy shaped like a pool ball of the same denomination, to which when you asked a question that could be answered by a yes or no—and then turned it upside-down, in a small window on the bottom of the 8 Ball--the answer would appear. Well fans, today when you ask the 8 Ball about getting back into real estate, the 8 Ball says, “All signs point to yes…”
And those signs are: (1.) growth in the volume of homes sold, (2.) growth in the sale prices of homes being sold, (3.) amazingly low interest rates, and (4.) a general pick up in the retail and business sector. All this coupled with (5.) a perceived shortage of agents means that newly minted agents will have a real opportunity to succeed, and formerly successful agents should become stars.
Even if you’ve never considered selling real estate before, it’s still a good time to consider this as a profession. I have been a broker for something over 25 years and I can tell you that if you are smart, motivated and willing to work long hours, you will make a good living. Even people who are only average—but willing to work full time--will sell 8-10 houses a year. And that can provide a tidy income.
Let’s think for a minute how Realtors get paid. Suppose you become a Realtor, and you have a client who wants to buy a house costing $200,000. After showing the client a number of homes, one is chosen, and you write up the offer—for the sake of simplicity, let’s say the offer is accepted at full price and so it’s $200,000. You note from the multiple listing services that the other agent (the listing agent—in this example you are the selling agent) is offering 3% to the selling agency, the one that brings the buyer. That’s $6,000. Of course you still have to split that with your agency, and for the sake of math, I am assuming you are splitting the commission evenly--but at $3,000 per sale, times say, ten sales during the year, is and annual income of $30,000.
OK you need to consider that not all transactions are for $200K, and there are deductions: taxes, license fees, expenses of all kinds (auto, phone, insurance and etc.). My message is you won’t get rich being average. But if getting rich is not your goal, many agents make a nice additional income for their families. If getting rich is your goal, in real estate, much is possible.
There are systems, there are coaches, there are Internet lead generators, there are tapes and DVD’s which all claim to grow your business. In fact there are so many “methods” and goodies to grow your business that you can go broke buying and trying them. But if you’re willing to pick up the phone or just knock on doors and introduce yourself, you will find business where you never expected it to be.
Real Estate is a business of knowledge and personal relationships. I won’t say those patent systems, which promise immediate wealth and fame, are bogus, most have some merit. But when a Realtor has confidence, buyers—and sellers—can sense that confidence, and that’s the basis of a sale. Once you make a sale, you just do that again and again.
Real Estate has been down so long it’s hard to get excited about the immediate future of the business, but now’s going to be a great time to get started.