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Old 09-23-2007, 11:58 AM
 
Location: NW Phoenix
477 posts, read 1,072,354 times
Reputation: 142

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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...
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Old 09-23-2007, 12:24 PM
 
3,632 posts, read 11,091,283 times
Reputation: 1185
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.
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Old 09-24-2007, 07:21 PM
 
Location: Gilbert, Az
69 posts, read 182,364 times
Reputation: 30
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.
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Old 09-24-2007, 07:27 PM
 
Location: Sunny Phoenix Arizona...wishing for a beach.
4,299 posts, read 10,284,833 times
Reputation: 757
Quote:
Originally Posted by sablebaby View Post
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.
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Old 09-24-2007, 07:30 PM
 
Location: Sunny Phoenix Arizona...wishing for a beach.
4,299 posts, read 10,284,833 times
Reputation: 757
Quote:
Originally Posted by IMoveU View Post
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.
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Old 09-25-2007, 11:13 AM
 
Location: Prescott Valley, AZ
1,354 posts, read 2,569,316 times
Reputation: 767
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.
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Old 09-25-2007, 02:57 PM
 
Location: Montana
2,203 posts, read 6,179,462 times
Reputation: 1033
Quote:
Originally Posted by BiggsHomes View Post
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.
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Old 03-05-2013, 11:20 PM
 
2 posts, read 5,757 times
Reputation: 11
Default Disagree

Quote:
Originally Posted by BriansPerspective View Post
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.
I must disagree with you on your comments above. I am a part time agent and closed 8 transactions in my first year in the business and have a full time job working as a CPA. I really think anyone can be successful in this business if you have discipline and time management skills. All of my clients have been highly satisfied with my service along with the financial advise I provide them.
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Old 03-06-2013, 09:02 AM
 
2,353 posts, read 2,933,553 times
Reputation: 2553
Back at the height of the boom I worked with a guy that helped agents do marketing. Somehow he got access to the list of closings and production from a buddy of his who worked at a title company. Even at the height of the boom what surprised us was that the old 80/20 rule did not apply to real estate. It was more of the 90/10 rule, about 10% of the agents and their crews were doing the bulk of the business around town. Plus the agents making money were spending a lot of money on farming, prospecting and staff.

Like other people have said, it's a tough job even when it's booming.
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Old 03-07-2013, 04:14 PM
 
3,288 posts, read 2,075,094 times
Reputation: 5022
I retired from the Real Estate Business after 30 years as a commercial real estate broker. I do understand the business. In 1971 when I entered the business I had almost 20 years sales experience in other fields, before going into the real estate business. That experience, helped me a lot.

Ninety Percent plus of new agents, will not last two years in the business. The one thing you should realize, is no matter how hot the real estate market, most people entering the business are going to fail and leave the business in less than 2 years without making even a minimum wage for their efforts after deducting their expenses. What you have to realize, is why so many people fail and look at ways to keep these problems from happening to you.

I think the following articles would be good for you to read to understand this problem..

Why new agents fail | Inman News

A new real estate agent asks why the industry drop-out rate is so high.

To be one of the less than 10% that succeed, you have to get proper training, and work harder than you have ever worked in your life to get started and be successful.

Find a niche and not try to do everything in real estate. Some agents only list property, and receive a portion of the commission on every one of their properties that get sold. A good Lister can often earn a lot more than a person that sells, especially if they pick one area of town, get their signs out there that they are the main agent for the area, and do a lot of farming (talking to home owners). This is one example. Another is specializing in selling, and working hard in an area. Too many agents, try to do everything and do nothing right and fail out of the business.

My niche was real estate investments. I took numerous courses at a university before I went into the business. I sold an apartment house my first day in the business to an old work associate. I sold the one next door, before the week was out. The owner of the first one, also owned a 16 unit apartment house, and I asked him why he wanted to sell. I found so he could buy an irrigated farm. I explained the advantage of a tax deferred exchange, and he agreed it would be to his advantage to exchange. Within a week, I was able to find an exchange for a farm, where the farmer wanted to retire and move to town.
That went through with closing 2 weeks later. Property then, is about 8 times more expensive than today in that area of the country to put things in perspective. But in those first 3 weeks of work, I had moved quite a bit over $1,000,000 in business which gave me a nice nest egg to get started. It would have been a lot more today at today's prices. I never moved less than a million dollars in any year in the business, and some times one transaction was over a million dollars even way back then.

Without getting specialized training before entering the business I would not have been a success. The problem with most agents, they think just getting a license makes them an expert. They fail to look to find a niche, and get proper training to be a success.

The more educated in the business you are, the more likely you are to succeed, no matter how good or how bad the market is at the time. I know, as it was not a hot market when I went into the real estate business. The market is what you make of it. You will succeed, only if you properly prepare, find a niche to work, and work hard at the job. This is the same, good markets, or bad markets. Also you will need some money behind you, so you can live even if you do not make a commission for the first 3 months to 6 months. Too many new agents expect to make an income from day one, but it takes time to get a listing and for it to sell, or to make a sale and get the sale to a closing. I was prepared, and made money from the first week, and had my first checks within a month. Everyone is not lucky as I was. Some of the best agents, take as long as 6 months before they get their first commission check, and have to keep fronting the expenses and living till that check comes in. It may take as long as a year, to get into the black, and showing a profit for your efforts.

I am pointing out the bad side of real estate, and the low rate of success. The top 10% make nearly all the money earned by agents. I have spent all my life in the business world, and this same thing holds true for all businesses. The best thrive, and the rest go out of business.

Problem #1. Insufficient money when going into the business, is what causes the downfall of most businesses, and most real estate agents. If you need to get a check right away to live, don't go into any business including real estate. You have to be prepared to carry yourself for a period of time, till you reach the point you are making a profit .

Problem #2. Never go into any business, until you understand the business well enough to be able to be successful. Don't think because you have a real estate license you can be a success if you scatter your talents, trying to be into every phase of real estate. In real estate, look for a niche where you fit in.
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