The Real Estate Career

You know, I am besieged with questions constantly about real estate as a career. Many are asking if it could be a career for them, others who are not meeting their own expectations ask what they are doing wrong, so it seemed another article on the subject was in order.

Let’s start with a few basic base line understandings. Not everyone with a real estate license is wealthy. Far from it, less than 20% of those involved are making a significant living. National statistics show that 50% of those who enter the industry this year will be gone next year and 80% of those who join us today will be gone in three years. That’s some pretty serious turn over, that I believe is caused primarily by misconceptions about the career and the skill set and commitment required to succeed.

There have been questions regarding personality characteristics for success, but in 36 years of recruiting, hiring and training real estate professionals, I have never been able to apply a single set of personality traits to succeed. I have seen the gregarious, “typical” sales type succeed and fail and at the other extreme I’ve seen quiet, analytical folks that I had serious doubts about, make it in a big way. The single common characteristic of the successful real estate professional, is that they want “it”, they are driven with the desire to make it and are willing to do what it takes.

All this being said, let’s talk about what I think makes a difference and what probably doesn’t matter. First consider the company you elect to work for, it’s far less important than you might think right now, unless you believe that your success is determined by the company you select. If that were the case there would ultimately be only one company, right? The fact is that there are successful real estate agents at nearly every company and there are many, many agencies available from which to choose. What does matter about “your” company is whether you find it an environment in which you feel you can thrive, do you feel compatible with the other associates and supported by management. It’s a cold cruel world out there, truly. There are about 5,000 licensees in our market area, so you need to feel nurtured and safe within your firm, because there are plenty of threats on the outside.

Next, it has to do with your commitment. Are you willing to do what it takes, because it takes a lot. People say they like the idea of real estate sales because the associates make their own hours. If you mean they get to choose when they work, you are correct, but if they choose not to work when the client needs them then the client will find someone who will. In the first three years you will need to work more than you probably planned, but it is an investment. Until you have paid your dues you will have to be able to drop everything and go to work on the client’s schedule. This, in itself, is often a rude awakening for the new associate, as your clients can only seriously house hunt at those times you would expect to be off, weekends and evenings.

A third key to your success is knowledge. The real estate business in more complex than ever, yet is still one of the simplest professions to enter. By simply spending a few hours in class and sitting for the exam you are licensed to participate in one of the most crucial transactions of your clients life. Since the State doesn’t require you to become adequately prepared for the journey upon which you are about to embark, it is up to you. Various types of agency relationships require your expert understanding, not to mention significant liability issues like mold, radon, home inspections, etc. Contracts, financing, community issues and settlement concerns all require your expertise, if you are going to properly councel your clients.

Finally, the paramount element in your success is your ability to network and uncover sources of business. As I said earlier, you can not rely solely upon the company for which you work to provide you with all your business leads. Certainly some of the work you do will be provided by your firm, but you must view these leads as gravy, the meat of your work will be self-generated. Joining groups, forming a network and involving yourself in your community, will lead to the larger portion of your business. Following every lead, making time to listen to your clients and then asking for referrals. I am always surprised by the number of “sales people” I encounter who seem embarrassed to tell people what they do and ask for their help to build their business. Self promotion and asking for referrals is critical. If you feel that you are in some way imposing or are above asking for help in your business, then this is definitely not the business for you. Success will require a large effort, bigger than you – the help of others will be necessary.