Can new agents make money in this market?? (lawyer, loans)

[sassieb75]

I was thinking about getting my real estate license several years ago but ended up having another baby so I didn't do it. Im considering it again but wonder if I'm just wasting my time in this market? Any thoughts, advice...

[sablebaby]

New agents have a hard time making money in a GOOD market.

I would not recommend getting your license if you are wanting to make money in this market. If you want to get it just for knowledge and for doing your own deals, that's another thing. I think it's a great thing to have. I had mine for a few years before I allowed it to expire earlier this year. I didn't have time to do the renewal hours so I just let it go. I'll go back and take the renewal hours soon and get my license back before the cut off in March.

RE is tough if you don't have any contacts, even in a good market. The "big dogs" are able to stick through the bad markets, the small guys not so much. There are something like 45,000 agents (or people with RE licenses in AZ).

If you REALLY want to go into it anyway, I'd suggest doing some hardcore relocation services since we have SO many people moving here. It works great if you have a wonderful grasp of the valley. Also, helping people get out of apartments (though I think that was more feasible when the market and easy loans were good).

But, if you just want to do this for fun and already have extra cash in the bank (meaning you don't NEED to make money)- go for it! It can be fun, especially if you really love real estate.

[IMoveU]

The market is what you make of it. The business of real estate is basically 3 things...1) lead generation, 2) lead generation and most importantly, 3) lead generation. Our company recently surveyed it's top 500 performers nationwide and here is what we found.

300 have seen their business go back and 200 have seen their business go forward. Of the 200 around 30% are in markets that haven't really gone backwards very much. so 140 or so agents out of 500 are in tough markets and doing better. We then started interviewing these agents to see what they were doing and here is what we discovered. The ones who are doing better:



1. responded quickly, swiftly and without hesitation. they got what was going on and acted. NO HESITATION.

2. they cut expenses and dead weight as far as they could. anything not bolted down got cut(except education) and anyone not ready to work got cut.

3. they focused on direct contact lead generation activities - calling people, going to see them, open house, etc..... they went and found people to talk to.
4. they saw each lead as precious and made sure they were capturing the calls/leads and setting appointments. they quit delegating this in many cases.

5. they focused on price reductions (either at the listing table up front or weekly/monthly after that or both). they had to get the prices right.

6. they focused on staging and presenting the houses they had listed better than the competition. they realized there is still competition for houses in certain price ranges and certain markets and they took their battle to those areas.

7. they created clear feedback loops to their sellers and buyers so they know what is going on at all times.

8. they prepared their staffs for the long haul ahead - better attitude, better skills and better scripts. they got deep into educating themselves and team.



in the short-term, until the market weeds out more people you will have a very very tough time. but not an impossible one. someone will make money in the market - it just has to be you and your people.

[sheena]

Originally Posted by sablebaby

New agents have a hard time making money in a GOOD market.

I would not recommend getting your license if you are wanting to make money in this market. If you want to get it just for knowledge and for doing your own deals, that's another thing. I think it's a great thing to have. I had mine for a few years before I allowed it to expire earlier this year. I didn't have time to do the renewal hours so I just let it go. I'll go back and take the renewal hours soon and get my license back before the cut off in March.

RE is tough if you don't have any contacts, even in a good market. The "big dogs" are able to stick through the bad markets, the small guys not so much. There are something like 45,000 agents (or people with RE licenses in AZ).

If you REALLY want to go into it anyway, I'd suggest doing some hardcore relocation services since we have SO many people moving here. It works great if you have a wonderful grasp of the valley. Also, helping people get out of apartments (though I think that was more feasible when the market and easy loans were good).

But, if you just want to do this for fun and already have extra cash in the bank (meaning you don't NEED to make money)- go for it! It can be fun, especially if you really love real estate.

Very good advice Sablebaby. It's also not cheap.

[sheena]

Originally Posted by IMoveU

The market is what you make of it. The business of real estate is basically 3 things...1) lead generation, 2) lead generation and most importantly, 3) lead generation. Our company recently surveyed it's top 500 performers nationwide and here is what we found.

300 have seen their business go back and 200 have seen their business go forward. Of the 200 around 30% are in markets that haven't really gone backwards very much. so 140 or so agents out of 500 are in tough markets and doing better. We then started interviewing these agents to see what they were doing and here is what we discovered. The ones who are doing better:



1. responded quickly, swiftly and without hesitation. they got what was going on and acted. NO HESITATION.

2. they cut expenses and dead weight as far as they could. anything not bolted down got cut(except education) and anyone not ready to work got cut.

3. they focused on direct contact lead generation activities - calling people, going to see them, open house, etc..... they went and found people to talk to.
4. they saw each lead as precious and made sure they were capturing the calls/leads and setting appointments. they quit delegating this in many cases.

5. they focused on price reductions (either at the listing table up front or weekly/monthly after that or both). they had to get the prices right.

6. they focused on staging and presenting the houses they had listed better than the competition. they realized there is still competition for houses in certain price ranges and certain markets and they took their battle to those areas.

7. they created clear feedback loops to their sellers and buyers so they know what is going on at all times.

8. they prepared their staffs for the long haul ahead - better attitude, better skills and better scripts. they got deep into educating themselves and team.



in the short-term, until the market weeds out more people you will have a very very tough time. but not an impossible one. someone will make money in the market - it just has to be you and your people.

Yep it's a sales job and nothing else. It's about being pushy and working many long hard hours.

[BiggsHomes]

You can make it as a new agent if you are dedicated and start with a mentor. However, you MUST be a fulltime agent with no other career. Otherwise, you are doing a disservice to your clients in my humble opinion. If raising children is your fulltime job, then do not plan to be successful as a real estate agent. Remember, this is a fulltime, professional occupation. Treat it in the same manner as a fulltime accountant, lawyer, or phsychiatrist and you will be on the right track. You will need to have several thousand dollars to get your advertising going and to sustain yourself until you start making money. If you are thinking about becomming an agent to make some side money on a parttime basis, then don't waste your time and money.

[Gretchen B]

Originally Posted by BiggsHomes

You can make it as a new agent if you are dedicated and start with a mentor. However, you MUST be a fulltime agent with no other career. Otherwise, you are doing a disservice to your clients in my humble opinion. If raising children is your fulltime job, then do not plan to be successful as a real estate agent. Remember, this is a fulltime, professional occupation. Treat it in the same manner as a fulltime accountant, lawyer, or phsychiatrist and you will be on the right track. You will need to have several thousand dollars to get your advertising going and to sustain yourself until you start making money. If you are thinking about becomming an agent to make some side money on a parttime basis, then don't waste your time and money.

Great advice. Unfortunately, alot of folks get into real estate thinking it's going to be fairly easy money and flexible hours. The flexible hours are that you have to be flexible for your clients. You'll often get calls from clients who are coming to town for the weekend and want to look at property, or someone who wants to look at a couple of houses after they get off work. I find that to be probably one of the most difficult aspects of the job - it's hard to make definite personal plans with your family because oftentimes you're basically "on call" over the weekend.

Also, be really prepared that it takes alot of money to get started in real estate and also to weather the down times. There are numerous fees for joining the local MLS, getting your lockbox key, office fees, desk fees, copy fees, training fees, plus you'll need some basic equipment like a laptop, cell phone, and digital camera. Then there's also your marketing expenses. I know I was really surprised at the initial monetary committment.

One of the best things you could do would be to talk to some newer agents (ones that have been in the business less than 2 years) and find out what successes and challenges they've had as a new agent.