Category Archives: Real Estate

Top 5 Reasons Why People Work in Real Estate

Working as a real estate agent has always been a very popular career choice. More and more individuals are joining the real estate industry and getting licensed. In many housing markets, there are more realtors than the number of real estate transactions taking place in a year.

Also, the profession that was once dominated by men is now spearheaded by women. It is seen as a lucrative career where anyone can join without any educational qualifications and hope to earn a decent income. Here are the top 5 reasons why people work in real estate.

Freedom from the boring 9 to 5 office job

This is a big attraction for those who hate going to a physical office every day and spending many hours sitting behind a desk. Thousands of men and women doing clerical jobs feel they are wasting their life, sitting in offices as they only get a nominal income that is insufficient to live a lifestyle they dream about.

A career in real estate allows them to realize their dreams without asking them to be confined to a physical office daily. They love the flexible schedule that they can enjoy after becoming a realtor. They know that without the restriction of an office, they spend more of their time with family and friends. They can work whenever they want rather than being in an office all day long.

In an office job, the employee has no choice but to come to the office every day, five days a week. You must spend time every morning to get ready and commute to the same workplace day after day… after day. This isn’t the case when you’re a real estate agent. Every day is an adventure. Every day will be different.

You are the boss

A vast majority of those who decide to switch careers to become a realtor are those who are fed up with being monitored continuously and reprimanded by their superiors. If you are doing an office job, you will have someone who works as your boss. Most people remain frustrated with not just the rules and regulations imposed upon them in the office but also with the attitude of their bosses. But they have no option as they must earn a livelihood. As the saying goes, “people don’t quit the company; they leave the manager.”

The profession of a realtor gives them the option to break free from the chains of their office and their bosses. They can hope to become their own bosses by working as a realtor. Many people begin as a hobby realtor and later give up their office jobs when they are reasonably sure of earning a decent income from this profession. Of course, there is a learning curve involved with this profession, but the good thing about being a realtor is that one can continue with his job during this phase.

For those who hate to work under a boss, a career in real estate is like a dream. There is no one to find fault with your style of working or your decisions, and you are free to call the shots.

Low barriers to entry

One of the biggest attractions for people considering a career in real estate is its relatively low barrier to entry. You need not have a particular degree to become a realtor. Even someone who is not a graduate can hope to become a realtor after obtaining the necessary license from his state authorities. It doesn’t matter whether if you have a degree in liberal arts or have a science background as the profession of a realtor does not demand knowledge in any subject.

Anyone irrespective of his age and gender can do a course required by his state government and then pass a state and national board exam to obtain the necessary license to work as a realtor. Of course, you need to work under a brokerage to get some experience, but there aren’t many other professions that give you the most bang for your buck in terms of qualifications. It is no wonder then to see large numbers of middle-aged adults, including housewives, choosing real estate as a career option for themselves.

Opportunity to earn an attractive income

Salary from an average office job is not enough to allow an individual to provide for a typical family. Realtors earn a fat commission on real estate transactions that is around 5-6% of the total value of the property being sold or purchased. Though this commission is equally divided among realtors of both parties, a realtor whether he is forming the side of the buyer or seller can hope to earn an attractive income from this career.

If you can conduct just one real estate transaction valued $250,000 in a month and assume a commission of 2.5% on every transaction, you can hope to earn nearly $75,000 per year. This is much higher than the income of any ordinary man or woman doing an office job. This is much less than the income levels of highly successful realtors who are earning annual incomes in 6 and even seven figures.

The sky is the limit as far as your income earning potential as a realtor is concerned. You can make as much as you want, provided you are willing to put in the hard work and effort that is required.

Meeting new people and challenges every day

Large numbers of men and women are attracted to the profession as a realtor because it gives them a chance to meet new people daily. This profession is very attractive for those who have an outgoing personality and those who love to meet and interact with other people. If you become bored and frustrated with seeing and interacting with the same set of people in your office daily, it is high time you switch careers and become a realtor.

This career also offers new challenges as every new real estate transaction has its own unique features and conditions. Many people who like to face new challenges at work place are attracted to real estate because of this aspect.

How Much Do Realtors Make?

A few weeks ago, while relaxing on a bench in a park, a group of young men and women were engaged in a heated debate on the career prospects of real estate. One of them said that real estate was lucrative and one can make money very quickly.

He continued, “You only need to make a few calls to prospective buyers. One in five calls that you make will definitely buy the property that you are selling. This is something I can do, and get rich all within a short time.”

This is not the first time I am hearing this. I have met so many people with a similar outlook. Some even go to the extent of saying that real estate and brokers get paid for absolutely doing nothing. They use other people’s wealth to make money.

I wish it were this easy. If I had more time, I would have talked some sense to this man, show him what effort real estate and brokers put into earning the commissions that they take home. However, I did not have time as I was heading for a meeting with a client in the next thirty minutes. I could not miss this meeting as we were about to close on a deal and the client was also to going to give me a check on the same day. 

This was my payday, how on earth could I miss it and listen to people who out of ignorance think that real estate agents earn money so quickly. I wish they knew what was involved: all the meetings that one has to attend, the haggling, research among other aspects in the process of selling.

One question that came out of that experience is: how much do realtors make to attract that kind of attention. Also, I was personally curious to find out what the public perceives realtors make.

In this article, I will attempt to answer these questions. I will do this with my own experience in mind. I would like the young man, who thought that we make easy money, to read my article, and get to understand what is truly involved in all this.

First, let’s be clear about what the agents earn. They are paid on commission. This is a percentage of the amount of the deal.

Normally, this commission is pegged at five to six percent of the sale price. The amount may look huge, especially when the property in question is pricey but when it is split between the agent and the broker, the amount goes down significantly.

For example, when selling a house worth $ 250,000, each takes home approximately $7,500. At times this amount is not just for one broker or agent, it may be shared among several of them. This means that the amount earned by prospective realtor reduces even more.

The amount earned by a given agent is the gross amount. It is subjected to several deductions. Taxes are also deducted from this amount among other levies. There are also expenses that a real estate agent incurred in the course of working on this deal. These expenses include professional fees, signs, advertising cost, rent, and other bills which are all needed to make this sales process successful.

So with these deductions, the amount that one takes home decreases. Another way of calculating the real estate earnings is when you take the whole amount and then get a figure for the entire year. This can be taken as the amount earned and then consider the deductions as regular expenses.

One problem with this method is that it may exaggerate the amount earned by the real estate agents, giving false hope to those who would like to join this career in the future.

Having said that, it is essential to know that amount earned by a given real estate agent will depend on several factors. The most obvious is the number of sales. The more sales one makes, the higher the earning.

Also, you have to consider the expenses that are incurred during the course of working on any given sale. The more costs you have, the lower your earnings.

 The number of agents involved in the sale of a property will also reduce the amount taken home. When the amount is to be split among parties, the take-home commission reduces significantly depending on the number of people involved.

The Bureau of Labor Statistics estimates that on average real estate agents take home approximately $45,990 per year, but they also agree that this amount can significantly vary given the factors mentioned above. Some statistics indicate that one-tenth of the agents took home an average of $ 23,000 while ten percent of these earned a figure of $ 110,000 and above.

When you look at these figures, there is a significant disparity between the low and high earning real estate agents. Also, given the amount of time that one puts into their profession and when you factor the amount earned per hour, it can be even lower. Some agents are known to put in more than sixty hours a week. Research has shown that there is a correlation between the number of hours put into your real estate career and the income earned.

To sum it up, it is relatively hard to put a figure on how much money a real estate agent earns. There are many factors at play, but at the end of the day, it is up to you. The harder you work, the more money you will make.

How To Choose The Right Broker To Work For

Anybody who has ventured into real estate business will tell you that finding the right broker to partner with is the most critical aspect of a fledgling career. It will also to a great extent determine whether you succeed or not. You are required to take this exercise seriously, take time to research, and meet with as many brokers as possible. If you have a strong beginning, courtesy of a supportive broker, you are assured of success in this business. So how do you find the right broker?

This should not be a difficult task. Here are some tips that can help with this.

Training

As somebody who is starting out in a new career, you need to learn the ropes. You require some skills that will help you navigate through it.

The right real estate broker will offer this, train you on how you are supposed to start out, and what is required to make it in this lucrative yet competitive business. The kind of training offered by the broker needs to be targeted in equipping you with the skills necessary to be an excellent real estate agent. You need training on how to come up with a list of prospective customers, how to approach them and convert them from leads to prospects and ultimately customers.

You need knowledge of how to handle meetings with clients. This can be one of the most challenging parts especially for those who are starting out. Nothing you have done before would have prepared for that, but the best thing about it is that this can be learned.

With training, you can avoid mistakes that a majority of people who are starting out make. You will definitely make mistakes, but they might not be grave as when you have not been trained.

Any broker who is not willing or has no time to orient you to this profession is a no-go zone. That is a harbinger of more things to come up in the future. You can avoid all this by selecting a broker, who is willing to take you through the starting out process.

You will not only equip yourself with the skills and knowledge that are required to make it in this business but will gain enough courage to overcome challenges that come your way.

Commission Split

As a real estate agent, you are most likely to be paid on commission. This means if you do not sell, there will be no income for you. What you make after completing a deal will be split between you and the broker.

You will learn that brokers have different commission structures. There are some who may opt to give you a salaried position. Various factors will play out when it comes to commissioning splits.  They include company resources, market share, reputation, and culture.

The trick here comes selecting a broker who will give you an amount that is enough to keep you going. A broker who is out to exploit you should be avoided from the word go. It may not be easier in knowing whether the broker will give you a good deal, but there are some indicators which can tell you the kind of person or company you are dealing with.

The bottom line is that the commission earned should be reasonable, commensurate with the efforts that you put in getting the business. A broker who pockets a large portion of the income while leaving you with an amount that cannot support you is a no-go zone.

You are in this business to earn a commission, and if a broker does not guarantee you that you will be compensated adequately for your effort, he or she may not be worth his or her name.

Company Culture

Before settling on a given broker, you need to ask yourself the type of real estate company that you want to work for.  You need to consider the amount of support you need from those you are working for and with.

A real estate brokerage is just like any other type of business. It will have its own working culture, you need to understand it and know whether you will fit in well. You do not want to get into a brokerage only to realize that your aspirations and interests are incompatible.

You would have wasted your precious time as well as a chance to grow as a real estate professional. Although there may be different ways through which you may use to find out about the company culture, talking with other agents, especially those who have worked or may have interacted with the firm, may shed some light towards this end.

Summary

The bottom line is that you should strive to know more about the brokerage that you intend to work for. While it may be difficult studying several firms, it is worth the time and effort. And to make it easier, narrow down a few on a shortlist that have the qualities that you are looking for. Those are the ones you should spend more time researching and ultimately, selecting from.  

Choose a broker wisely. Your choice will significantly determine how your real estate career turns out.

 

Should I Join The NAR To Become A Realtor?

It is a question that every real estate agent faces at some stage of the career that whether it is worth joining NAR and choosing realtor as a career or not. Maybe it sounds like a long shot for a real estate agent as you’ve just earned the real estate license so why would you need to become a realtor?

There are different pros and cons of becoming a realtor, and we would like to tell you all about them so that you’ve got an idea before making a career-changing decision.

What is a Realtor?

People often mix up the concept of a real estate agent and a realtor, thinking that both are the same. But if you are in the real estate industry, you would definitely know the difference. A real estate agent is a person who has a license to sell or buy real estate, and a realtor is a real estate agent who has joined the National Association of Realtors (NAR).

NAR was founded back in 1908, and since then, it has become one of the most significant trade associations in the United States of America, with more than 1 million members. NAR represents commercial and residential real estate agents, and you can join any chapter of the organization. You have to pay the association dues and fill out a form to become a member of this organization.

Pros

Networking

By becoming a realtor, you join an organization having more than 1 million members all across the country, so now you’ve got a networking connection in almost every part of the country. Building a strong relationship with the other real estate agents can help you create a successful career in a few years. You will be able to access the MLS listings that are only available to NAR members which will give you leverage over your competitors in the area. You can find out exclusive details which aren’t available online regarding a property with the help of NAR MLS listings.

Reputation

In real estate, your image is quite vital because most of the clients create a perception of an agent in the first meeting. When you introduce yourself as a realtor, you create a unique identity for yourself as you are part of one of the most prominent trade associations in America.

With this introduction, the clients become aware of the fact that you are different from the other real estate agents. You will have a higher standard of ethics because you need to adhere to the rules and regulations of NAR. With the NAR behind your back, you can create a better image for yourself in every meeting and gain the trust of the clients much easier as compared to a real estate agent.

Support

National Association of Realtors continuously works towards protecting the rights of the realtors, and you would get great support from the realtor community by spending a bit of money in the form of the association fee.

If you have an issue, you can quickly contact the representatives of NAR and get the legal experts on board along with hundreds of thousands of NAR members ready to help you in every way they can.

The support of the local and national chapters of NAR would mean a lot when you’ve got a tax issue.

Your business would also benefit from this network as even if you have to move from one state to the other, you will instantly get the support of the local chapter of the NAR to reestablish your business.

If you want to buy or sell a property in any other state, you can contact the NAR members in that particular area and close the deal much quickly as compared to other real estate agents.

Special Discounts

There are several other benefits involved with being a recognized realtor, which includes different kinds of discounts on various products like property and insurances. You will be able to reach out to the NAR credit union, which will help secure a loan for your business and car more easily. There is also a possibility to collect a special realtor credit card. Corporations like FedEx, etc. have special discounts going on for the NAR members all year long.

Cons

Education

One of the biggest cons of becoming a realtor is that you will have to take additional courses. You may have just finished the real estate pre-license course if you are a newbie, and now you will have to pay the NAR which could be an added pressure.

All realtors are required to complete at least 2.5 hours of ethics training every 2 years. The continuing education course must meet specific learning objectives and criteria approved by the NAR. 

In the end, you will be able to enjoy several benefits after you have joined the NAR, so you can take this pressure and convert it into something positive to kick-start a better career.

Cost

When you become a member of the National Association of Realtors, you need to spend some money as you have to pay association dues for the local and the international chapter. If you add up all the fees, you will have to spend hundreds of dollars in total. Not only do you have to pay for the initial registration fee, but you will have to keep paying on an annual basis to stay associated with the organization.

Bottom Line

Every real estate agent should strongly consider becoming a realtor. Although there is a substantial cost to join the NAR, you can think of it as an investment that you are making for getting connected to hundreds of thousands of realtors all across the country. You will have a reference in each part of the country, and you will have the support of an organization with more than 1 million members. You can quickly expand your business with such support, and you will have someone to trust if you have to face any kind of issue in the market or example tax issues. It is like having your own union in the market, and the only difference is that this union is much more powerful as compared to any other union. We think it is totally worth it to become a realtor.

5 Things To Consider Before Jumping Into A Real Estate Career

Many people in the world find that being a real estate agent is a rewarding career choice. You are in control of your own destiny and can make as much or as little as you want since you are typically paid on commission.

However, it’s not all roses and sunshine. The real estate industry can be cut-throat at times. As a new agent, you will have to get up to speed quickly because you will be going up against experienced ones that already have an established network of contacts.

So, if you are aspiring to start a new career in real estate, here are five things that you need to consider first.

What is Your Motivation?

You need to ask yourself this question. It is one of the most important things to think about since if you do not know what is driving you into this, you will have started it off on the wrong foot, and your chance of failure will be high.

If the drive is a lure for quick and easy money, stop! You are in the wrong place. A career in real estate will not be easy. It will take loads of hard work. The money will be there but only when you put some effort to get it. It is not a place where you will just sit there and wait for the check to come. This is a career where hard work determines what you take home.

If you are afraid of working hard, meeting different people and sometimes odd hours, this is not the career for you.

How Do You Feel About Change?

This is a career that is characterized by the high pace of change, and if you are not up to the game, you will just sink. It is a career that will require you to carry out an aggressive campaign, use modern tools to reach out to prospective customers and keep them engaged. If you cannot match up these demands, you will be in for a rude shock as others will be miles ahead of you.

Given that the competition is very stiff, I assure you that that’s the furthest you can ever go. Know what motivates you, be ready to embrace change, use modern technology, and you will be cut out for success.

Get a Glimpse of What Goes on in Real Estate First

If you want to do something or take a trip to a place for the first time, you need to gather some information. The same applies to a real estate career.

You may have heard stories about what has happened to some people in this career. Some of the information you may have heard may be true, and others may be false.

If you are getting into it, you do not have to wait for people to tell you. Research about it, get some factual information, collaborate it with credible experts. Have an idea on what to expect so that you can manage expectations.

Getting into this career without first understanding what is required of you, will lead to wrong choices. Some of which may cost you significantly.

You need to get a glimpse of what happens, the things that you will be required to do.

There should be very few surprises. In fact, you should have none if you are to make it. Talk to those who are already practicing, ask them what they do, how they started and what they have done to get there.

While doing this, make sure you talk to the right people. Some may withhold information in fear of competition. Others might mislead you so that you are not a threat to them, especially if you are targeting the same market or area.

With this information, you will be delving into this career knowing what to expect, this will help you moderate the expectation and increase your chances of success.

Get a List of Contacts

A career as a real estate agent will involve looking for customers, people who need selling or buying a property or those who require advice on real estate investment.

To start off, you will need a list of potential customers to contact and tell them what you do and how you can be of value to them. You need to build a list, start by people you know. These can be friends, people in the neighborhood. Get as many as possible, screen them and identify those who are likely to need your services.

At all times, keep on updating this list, adding more and also striking off those whom you think don’t fit your profile of customers.

Be Prepared for the Learning Curve

A real estate career does not promise a regular income. It depends on the deals that you make at a particular month. There will be times when there will be no income, especially when you are starting out. You need to have saved enough to take you through these months. Otherwise, you may experience some financial difficulties which may affect how you work.

Aspire to be the Best

In the course of your research, you may have found out that there are people who are successful in this business. Aspire to be like them. Learn from them. Follow their footsteps, and you will be successful too.

Learn these things before starting out, and you will be among the best real estate agents.

Top 5 Reasons I Love Being A Realtor

There are hundreds of professions in the world, but no other career ranks as high as real estate in terms of happiness and job satisfaction. If you thought working as a teacher in Kindergarten or as a manager in a bank are very satisfying jobs, you are mistaken.

According to the recent results of a survey, it determined that real estate agents are the happiest and in love with their jobs. If you are looking for a career with the highest job satisfaction, do not look any further than real estate.  Here are the top 5 things I love about working in the real estate industry as an agent.

1. I am my own boss.

Real estate is the answer for you if you hate doing a 9 to 5 office job. If you hate being monitored continuously by someone or asked to do this or that work whether you like it or not, become a real estate agent.

I realized the advantages of being my own boss after becoming a real estate agent. I decide my hours of work and the work schedule for the day. I can choose to take a day off and spend time with my friends or family members. I am also free to make decisions about my clients and projects according to my own free will. There is no interference from anyone, and I just love the freedom I enjoy as a real estate agent.

It is not that there are no responsibilities, but I am free to express my likes and dislikes as an individual. I love the fact that I cannot be forced to do a project or transaction for a client if I don’t like it. It is like running your own company with no one to give you orders.

2. My schedule is flexible.

Being a real estate agent confers to you the freedom to choose your hours of work. If you get up one morning and feel that you don’t want to work, it is up to you to take a holiday.

You decide when you can take a break and enjoy a vacation with your family or friends. You can choose to work 10 hours on one day and then decide to not work at all another day.

However, I know I must keep in mind the convenience and comfort of my clients and their schedule when making my own schedule. I also know that I may be asked to visit clients’ places at odd hours, but it is a part of being a real estate agent. But I also know that I don’t need to seek the permission of my boss to watch a movie during day time or go to the beach during the week.

3. I get to meet new people every day.

I am an extrovert and love to be among people. Real estate agent’s job gives me a chance to see, meet, and interact with new people regularly which is a vibrant and rewarding experience for me.

Whether I am attending seminars or conferences, I am happy to meet people in the same profession. It helps me to develop a strong network for myself, and I also learn a lot about real estate through the exchange of ideas and interactions. I don’t think there is any other profession or career where I can get to meet so many people at such a frequent basis.

There are colleagues, partners, affiliates, clients, vendors, contractors, lenders, brokers, and all sorts of people that I get a chance to meet as a real estate agent. What I love about this career is that even I don’t know who I will meet, talk to, or see as a real estate agent on the next day. Every day is a new day, and I am happy to meet new people.

4. I can earn as much as I want.

There is no fixed salary or monthly income for a real estate agent. Yet, successful real estate agents earn more money than a top executive in a multinational company. This shows the earning potential of a real estate agent. I know that my earnings as a realtor are dependent upon my networking, marketing, and my reputation. The more I work upon these three aspects of my profession, the more I can hope to earn in my career. I am yet to come across any other job or business where I can expect to earn as much as I do as a real estate agent. Also, I am in total control over my career, and I can advance it to the next higher level whenever I am ready and work hard for it.

Of course, I cannot take income for granted, and I must work hard to earn my commission. But the good thing is that there is no cap or limit to what I can make from this profession as a real estate agent.

5. I can work anywhere I want.

As a real estate agent, I am not restricted by geographical boundaries. My license and qualification allow me to represent my client anywhere in the state and I can help them with their real estate transaction. I have no office where I must report every morning, and I can arrange meetings anywhere I like. I can meet with people in restaurants, movie theatres, beaches, golf courses, and even resorts. There is no dress code, and I can walk in my jeans and a T-shirt if I so desire. I choose to dress up casually when showing clients properties. It helps in relaxing the clients, and they can talk to me freely.

There are many more aspects of my career as a real estate agent that I love a lot. However, the flexible work schedule, high earning potential, and the freedom I get from my job as a realtor are things that I value the most.

Top 7 Tips To Close More Real Estate Deals

The most crucial task for any real estate agent is closing the deal, but not many agents know the art of closing the deal. Many real estate agents are experts in the theoretical side of the business, but they are unable to convert the theoretical knowledge into practical implementation.

You cannot make any money in real estate without learning the art of sales. It cannot be learned in the classroom but can only be learned in the field. You need to know how to bargain. You need to know how to talk to clients and cater to their needs.

 It is crucial in sales to be your natural self in front of the clients, as opposed to giving the same cookie-cutter treatment to everyone. No matter if you are selling a residential apartment, trying to rent a commercial building for a year, or signing a lease, all of these instances involve sales.

We have talked with several real estate experts and created a list of the top 7 tips to close more deals. We would like to share this list with you so that you will be able to close more deals in less time.

1. Keeping It Real

Confidence is key in any kind of conversation, especially when you are selling something to a client. You need to be confident while keeping it real. There is no need for throwing a lot of facts and figures at your client. Just realize what your client needs are and cater to his or her needs by giving a proposal that they simply cannot refuse. 

Try to work step by step to create a deal which is acceptable for both parties involved. Give the clients a complete overview of the property and don’t digress and talk about the number of restaurants that are situated within a 5-mile radius of the property. Once your client is interested in the property, you can follow up with those types of details later.

2. Be a Good Listener

Try to listen to your clients instead of blasting them with all the details of the property you want to sell them in the first meeting. You need to clearly understand the needs of your clients first, and then you can give them a property that will cater to their needs. Ask as many questions as you can to clarify the requirements from your clients. When you deliver what they want, you will establish the fact that you are trustworthy and understanding enough to provide them with an attractive deal. The chances of getting a deal done increases when both the client and the real estate agent understand each other. It will also create a positive relationship with a client, and even if they don’t buy from you the first time, whenever they need a property in the future, they will definitely come back to you because of the positive experience they’ve had with you.

3. Be Reassuring

It is natural that your clients will have doubts and anxiety because they are putting a large amount of money at risk.  Listen to the issues of your clients, and face them head-on. If you are unable to solve the problems, you can present another property to your clients. There is no need in convincing your clients about a property they are no longer interested in. Be truthful in your dealings and show them something that fits their needs in a better way. If you feel they are getting cold feet, remind them about the things they said that they loved about the property in the first place and why they should buy it.

4. Create a Custom Script

Whenever you are dealing with a client, you need a proper script. You can learn from the other successful agents in the area, or you can find stuff online and take inspiration from it. Don’t cram someone else’s script because it will come off as insincere, and the client will feel that you are just reading out something that you’ve memorized. Your sales tactics need to be based on your natural self and remember each client is different, so you need to customize your script accordingly.

5. Keep the Suprise Factor Alive

Always have something extra to offer in a deal whenever the client seems to get away from the deal. You may have to ask other real estate agents for suggestions, but it is all about making the sale happen. You can ask other real estate agents for help in creating a package that is irresistible to them, and you can offer to give your fellow agent a small cut of your commission after it closes. Have a great working relationship with the other real estate agents in the area and find out the extra spice you can provide alongside the original deal.

6. Project Confidence

Whenever you are trying to make a deal happen, you should be really confident about it. Your confidence has to be expressed in your conversation as it will definitely affect your dealings. The client is relying on you to give him or her a great deal and if they think that you are holding back, they will definitely back off instead of moving forward to finalize the deal.

7. Always Be Prepared

You have to prepare yourself every day and be current on market trends to remain successful in the real estate market. Try to study new listings and programs that are available in your area each day, and get to know the details of the properties. Match the needs of your clients with the properties that are available for sale, and give a new perspective to your clients. When the client realizes that you know everything about the property you are selling or the rental you are offering, they will be more likely to consider it than if you didn’t have all the details. You must remain prepared regarding each deal, and you have to provide the best possible service to your clients.

Conclusion

It is a long process to be successful in the real estate business, but you can prepare yourself for the market and remain confident in your skills. If you can follow these 7 tips, you will definitely be successful. All you need to do is believe in yourself, and keep practicing your skills. They will naturally improve and get better with time.  Understand your clients, and treat them nicely to create a better relationship with them because succeeding in real estate has nothing to do with the property, it’s all about the people.

7 Qualities of a Top Real Estate Agent

When you have chosen real estate as a career, you need to be the best one in the market to beat your competition. Becoming an excellent real estate agent is a long process, and you can start by acquiring the qualities that are necessary for becoming one.

In the beginning, you may not produce results, but that’s okay as long as you’re consistent. Just like going to a gym doesn’t make a difference in the beginning, but if you are consistent, you will definitely attain great physical strength with time.

Although every real estate agent would claim that he or she is the expert and can make a great deal happen, it definitely isn’t always true. We have done our research and found the 7 qualities of an excellent real estate agent.

1. Determination

Real estate is learned in the field, and it isn’t possible to become an expert in this career after a few years. You need to be determined, and you must be willing to do things today others won’t do, to get the things tomorrow others won’t have. You need to close dozens of deals before you can claim that you know a lot about the market or that you are a great negotiator at the table.

2. Consistency

It is possible that you can have a great start in your real estate career, but down the road, you will have to face hardship and failure. You must be consistent to be successful. If your dream is to be a successful real estate agent, you need to keep working hard to achieve it. Doing high volume sales year after year is one way of doing it. Just stay connected with your customers and remain aware of the changing trends in the market. Analyze the number of sales an average agent is making in your area and make it your goal to stay ahead of the average every year.

3. Utilizing Technology

The market is changing rapidly, and the customers are more interested in searching for properties online instead of approaching an agent directly. It is necessary to make proper use of technology, so you need to be present online and on various apps related to your business. You need to respond to the messages and emails pretty quickly because if you don’t, your potential customers could get a reply from any other agent in his or her list and you would definitely lose the chance of closing a deal.

Create a list of your potential customers, and send regular alerts whenever an opportunity drops by. You can divide your customers into different lists according to their needs and send them the details of a property that would interest them. Try to do your own research instead of just posting the listings from any other website. Make your online presence felt in the area by doing online marketing and make sure your website or profile shows the best deals in the area ahead of everyone else.

4. Being Trustworthy

Honesty is still one of the traits that are valuable in real estate business like in the old days. You shouldn’t get your customers hyped and provide them with false expectations regarding a deal. Try to be honest with them and inform them about each and every detail about the property as they will find out these details eventually. Instead of thinking about just closing one deal, you should think about getting the trust of your clients for a lifetime. Word of mouth goes a long way, and your clients could bring you dozens of clients if you have provided them with a great deal. Informing your clients regarding pricing, timing, and market conditions would not only help them in making the right decision, but it will also build their trust in your abilities.

5. Building References

A good real estate agent must have a great track record, and that comes with references. Whenever you close a deal, try to get a testimonial written by your client. The new customers love reading the reviews about a real estate agent before approaching him or her as they need to know whether they can trust a person with a deal or not. It would be better if you can give potential customers a chance to talk to your previous clients. Try to design your online presence in a specific way so that the new visitors can see the testimonials instantly instead of putting the testimonials on the last page.

Real estate is all about building better connections not only with potential buyers but the realtors, the brokers, and the sellers in the area.

6. Stay Connected with Clients

A good real estate agent stays connected to his or her clients, even when they are busy. Follow up on your potential clients even if you are spending long hours in a lot of meetings. Take the help of an assistant, and if you cannot afford one, you can use a software system or an application to remind you of the clients that you need to follow up on. 

Client support enhances your chances of making a successful deal in much lesser time as compared to your competitors. Make sure you are present for your clients whenever they need you; otherwise, they will definitely find an agent who values them more than you.

7. Focus on the Relationship

Real estate is not just about doing business. It is about creating a relationship based on trust with your clients. Understand your clients and their needs before offering them anything. Develop chemistry which is neither forced nor fake. Make an effort to help your clients feel comfortable around you as they need to share their financial details with you. 

If you’ve created a trustworthy relationship with your clients your real estate career would definitely be successful in a couple of years. Make sure that they can share each and every little detail with you, which can impact the deal. Lastly, simply make sure that you are present for them whenever they need to discuss something with you.

Residential Real Estate Agent or Commercial Real Estate Agent?

As a realtor, you will most likely either choose to sell a commercial property or residential property. Some people may also opt to do both.

However, if you realize later on down the line that you were wrong, that is okay. You are not committed to staying in either sector forever. You can always change sides.

In this article, we will look at the similarities as well as the difference between the two types of properties to see which one is the best fit for you. This is something you will have to think hard about to see what works best with your style. That is a decision that we will leave you to make based on the information that we will provide.

What is the difference?

Somebody once said that comparing commercial and residential real estate is similar to making a comparison between apples and oranges. Both are fruits, and that is where the similarities end.

On a more serious note, commercial real estate focuses on business needs. These are properties which are leased, sold, rented out to achieve a business objective. One would call it an investment which is aimed at making a predetermined rate of return.

On the other hand, residential real estate focuses on the needs of a homeowner and his or her family. It includes properties which have been bought or built for family use. It is more so described as the provision of housing to the families.

Now that we have a basic understanding of what each entails, let’s dive deeper.

Education

Whether you want to become a commercial or residential estate agent, you will need a license. However, in terms of education for a residential estate agent, you do not need to have a college degree.

As a commercial real estate agent, you will be expected to have a college degree in business. This is to allow you to have a deeper understanding of the professional terminologies that are used in this sector. Terms such as capitalization rates, real estate analytics, internal rate of investment among others which are used in finance and investment will be the order of the day.

If you do not have a basic understanding of these terms, you may have a hard time working as a commercial real estate agent. Although it is not mandatory to have a degree, it comes as an added advantage. For those who do not have a degree in business or finance, but are knowledgeable in finance and investment terms, they can perform equally well in this field.

Training

Both commercial and real estate professionals need the training to be better agents. However, the level of training is different.

Commercial real estate agents will need more training, this more so if they do not have a background in business and finance. In the course of analyzing the real estate markets, they will come up with terms and ratios which require this knowledge. Without it, you will not make much of that information and may be a barrier when it comes to selling some properties.

If you have a weakness in this area, do not panic as there are people who can help you analyze the information, the catch is that you have to incur an extra cost in terms of the consultation fee.

Earnings

The amount you earn in any business will depend on several factors. Some people will make more than others. This is the same case with real estate.

Although there is a belief that those who venture into commercial real estate make more money, there are also some who are doing well in residential real estate. It will primarily depend on your strategy, and the type of real estate business you have ventured in will be secondary.

However, with all factors held constant, a commercial real estate agent is likely to make more money given that they are dealing with a large amount of money. In a business which is commission based, the more significant the amount of sale or purchase, the higher the agent earnings.

You can imagine of an agent who sells the property of $50,000,000 in one deal with a residential real estate who sells homes worth $5,000,000 over a period of one year. The difference will be huge, and the residential real estate agent will have to put in a lot more effort to make the same amount.

Earnings will differ due to the amount of money involved or the value of the property, but the effort which has been put towards making such an amount will vary hugely.

Ease of Selling

It has been mentioned before that it is relatively easier to sell a residential property than a commercial one. Some of the factors which have been given around include the amount of money involved. Also, the fact that we have more people looking for homes for the family than those who are in it for commercial reasons.

I think I will have to end the article with a disclaimer, these are not the only differences and similarities between these two sectors in real estate, we have just looked at a small part of it, but the information can be enough to help you make a decision on where to fall.

Why New Realtors Struggle (And Fail)

There are few other professions in the world than that as a real estate agent which attracts such large numbers of men and women to it every year.  Sadly, a very high percentage of these new realtors fail miserably and leave this profession by the end of one year. The success rate in this career as a realtor is less than 10%.

All new realtors start with high hopes and expectations, but these expectations are dashed when they find they must work very hard and compete with already established real estate agents. There are many reasons behind the failure of a vast majority of new realtors.

People prefer to hire agents with experience

If you are a new realtor with little experience behind you, you will find it challenging to catch the attention of buyers and sellers. The reason is simple and very natural. Buying or selling is a big financial decision, and no one wants to take a chance with someone who is a rookie. Even your relatives and friends will probably not want to give you their deals as they want some experienced agent to handle their listings.

Also, it becomes difficult to earn the trust of others when you are new to a town or city. Many realtors cannot handle this pressure and break down quickly. They find it hard to survive without any clients, and they are not prepared to invest their time and effort without getting any results. Do not push yourself down the throat of your friends and relatives. It is better to refer them to a seasoned pro that you know, and you can still get up to 25% of the commission from the referral.

Remember, you must spend time with social causes in your local community and interact with potential clients on social media to establish a positive image for yourself. You will reap the rewards for this marketing later. All the networking you do in the initial period as a realtor with other realtors and other professionals come handy after some time.

Being young can work against you

If you are in your twenties, people do not take you seriously. They believe you are not mature and will not be able to handle their real estate transaction with sincerity.

You will find that the most successful and respected realtors in your area are over the age of 50. They do not only command respect but also gobble most of the real state transactions taking place in your area. People will ask questions about your age, your experience, how many homes you have sold and so on. You must remain confident, self-assured, and face doubters with a smiling face.

Your energy, hard-working attitude, and passion for real estate will slowly but surely win over the hearts and minds of your leads. Working under a favorite broker and gaining experience is one way of silencing your critics doubting your abilities.

Avoid common mistakes made by new realtors

No matter how much you study about real estate, you are still prone to make mistakes and make the wrong decisions. There is no substitute to experience and hard work in real estate.

You cannot learn everything about real estate transactions in your first deal. It is therefore prudent to learn from the mistakes committed by others to iron out wrinkles from your path as a real estate agent.

Listen to podcasts of successful realtors, attend conferences and seminars, and read as much about real estate as you can to avoid common mistakes committed by rookie realtors. You will not have answers to all the questions from your clients, but if you keep your eyes and ears open, you will quickly learn the loopholes and tricks in real estate.

Giving up too easily when faced with rejection

A vast majority of new real estate agents join this profession with high hopes but give up when they find they must struggle to get their first client. Be prepared to hear “no” a hundred times before you get a “yes” from a client. Prospecting is the key to success as a real estate agent. You will not get clients sitting at home. You will have to work hard on the leads you get through your research, phone calls, and through networking with other realtors.

Do not let your head drop in the face of negative answers from your prospects. A single “yes” after a hundred rejections can bring in a lot of money for you in the form of commission.  You should keep motivating yourself as closing a single deal a month is enough for you to survive in this career as an agent.

Failing to follow up on your leads

One of the biggest mistakes committed by new realtors is their inability to follow up with their prospects. Remember, it is you who must engage with the prospect rather than the other way around.

If you say you will call, make it a point to call the prospect and inquire about the status of their listing at the right time. If you fail to do so, someone else will call your prospect and try to lure them with enticing incentives. If you fail to show up or call a lead after a promising appointment, you will never succeed in this profession. People admire real estate agents who keep their promises. If you feel you will forget to call a prospect, make use of technology to set up a reminder to help you.

Allowing one bad experience to get you down

Real estate can be a very challenging field for a newbie realtor. You are bound to meet and interact with all sorts of individuals in this career. Some of them might try to dupe you or hurt you but do not use them as an excuse to leave this profession. Use your bad experience as a learning tool and vow to yourself that you will not repeat your mistakes.

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