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What Do Real Estate Agents Do To Sell A House – Real estate professionals face a different set of challenges from most careers. In the real estate industry, you need to know about many different areas such as
Like most things in life, the reality of the career and the impression given can be wildly different.
What Do Real Estate Agents Do To Sell A House
Think of a head chef in a gourmet restaurant in your town. The career seems fun! Come up with new recipes and try different foods. What you don’t see are challenging customers, people management, reputation management, marketing, health codes and paperwork.
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When you think about the challenges of being a broker, your mind may automatically go to the difficulties you see
Where the agent struggles to find common ground on pricing with another party. Emotions are high and they show the stress behind the negotiation. This is part of the job, but the real challenges are not the ones you see on TV.
The truth of being a real estate agent is that there are a number of moving parts in your career and the challenges can be difficult to overcome.
In this article, you will learn the 7 challenges of being a real estate agent and why the failure rate in this industry is so high. Plus you’ll get actionable real estate tips to avoid these pitfalls and what to do if you’re comfortable with them.
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Ask most consumers if they think real estate is a hard job and you’ll get mixed answers. A large part of the population will think that real estate is about opening doors and negotiating deals. This is not the case.
People form opinions based on what they can see. However, there is so much more to a career than meets the eye. If youare in real estate, you will quickly find that opening doors and negotiating contracts takes up hardly any of your time. The real job goes much deeper than this and you have to learn skills you didn’t think of to succeed in real estate.
Before you look through the challenges, know that all these challenges can be overcome. Real estate has a high failure rate, but you can be very successful if you are willing to work.
For a quick boost, take a look at the 6 Ways REALTORS® can get what they want below
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One of the most common reasons new real estate agents enter the industry is the promise of creating your own schedule. There is a false image that as a real estate agent you wake up all day and walk around until you show in the evening.
If you are in the industry, you will know that if you want a lot of free time, you can have it, but you better have another job, because you will make little to no income.
The most successful real estate agents work hours that would drive most people up the wall. You can work on real estate marketing in the morning, contracts in the afternoon and showing properties all evening.
“Don’t worry”, you say, there’s always the weekend. If youare a new realtor and you take weekends off, you can soon start looking for another job. You’ll be grinding long hours for very little pay in the beginning.
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If youareintorealestateornewtorealstate, prepare for long days of hard work. Even working long hours does not guarantee that you will be successful, you have to do the right things with the time you have.
Create a schedule focused on prospecting and business building. Give up the need for leisure early in your career.
Challenge 2: Most people expect to make a lot of money when they get into real estate
Thanks to TV shows and movies that portray real estate agents as ultra-ballers, many REALTORS® think they’ll be making Benjamins before they know it. They think about their last real estate agent and how she/he drove a BMW and always wore a nice watch.
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What they didn’t see was that the car was leased and buying the watch meant cutting back on other areas just to maintain appearances. Now, don’t get me wrong, there can be great tax benefits to leasing and there is an element of performance that is important in real estate, however, not every real estate agent makes the money that would mirror another person. with a new BMW and an expensive watch.
You don’t make money if you don’t sell houses and most real estate agents sell a few houses each year. Some reports suggest that the average REALTOR® sells less than 6 homes per year.
If you’re thinking, “well, that’s not too bad” don’t agents make $10,000 per home sale? See challenge 3.
You need to set proper expectations about how you will grow your real estate business. If you go in thinking you’ll be a millionaire overnight, you’re setting yourself up for a rude awakening. Budget your finances and keep working hard even if you are not producing. Real estate is a long term game and the money will follow years of hard work and dedication.
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As noted in Challenge 2, many people are under the impression that the commissions go entirely into the agent’s bank account. The challenge here is that you have a business. When you buy groceries, the store manager doesn’t open the cash registers every night and fill his pockets with the proceeds.
In real estate, you run a business and like any other business, revenue and net income are very different figures.
These are just some main categories. The list can go on and on. The big thing to note here is if an agent is making $100,000/year, they will probably keep about 30% of this.
When you discuss commissions with a consumer, they can get $10,000 going directly into the real estate agent’s pocket, and if it was, then agents would be overpaid.
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Only a fraction of this makes it into their bank account and they have endless expenses to sustain themselves.
Create a business plan and keep in mind that you have a business just like any other business out there. Drop the mindset that you will keep all of your commissions, because if you try to keep the majority of what you make, you will run yourself out of business when the consumer selects an agent who provides much more service.
On the other side of the coin, keep expenses at bay. Do not spend frivolously and look at the return on investment for your purchases.
As a new realtor, you might think that once you’ve got a website and social media, leads will start pouring in and you’ll be moving and shaking before you know it. Unfortunately this is not the case. You will work long hours prospecting for new business. Calling for sale by owners, knocking on doors, sitting open houses, talking to people you know, calling has expired, before you see a business.
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This challenge is also a big positive. The fact that people will not always call you easily means that for those who are willing to work hard, there is more business for you. If youdedicate your time to prospecting and driving, there will be more business for you because most agents are sitting on their heels hoping for business to come to them.
In real estate you will be told “no” many times and you have to keep pushing. Look, of course we don’t like rejection. As humans, it is in our genes to desire to be accepted.
In real estate, rejection will happen every day. If it doesn’t happen every day, then you probably aren’t prospecting enough. You have to get used to the word “no” and “I’m not interested”. We teach our students not to bully people, but following through is crucial. Most real estate agents run the risk of not following up enough versus pestering people too much. You will either get thick skin or this company will run over you.
As with Challenge 4, this can be an advantage as most agents are not willing to push through the long days of rejection. Develop a mindset that applauds the effort you put in and not the result you get. If you focus on the result (sales) only, the rejection is enough to break a REALTOR®, but if your goals include efforts,
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Then no amount of rejection can affect you because you are only focused on continuing effort.
As a real estate agent, you now run a business focused on people and not just people going through their normal day; you are dealing with people in high-stress situations and people on emotional roller coasters.
Even if you think you have great people skills, you will need to learn more. In real estate you are dealing with delicate situations.
You must be firm but gentle. Direct but kind. Persuasive yet caring. Fast but slow.
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