Career Change? Consider Real Estate

Considering the uncertainty of the times, you may be concerned about your current position and wondering if there are other options. But real estate? With all the bad press our industry has received over the last year or so, you may be thinking I’ve gone ‘round the bend. Everyone knows real estate is in a tough spot. Isn’t it?

Actually, in our little corner of the world, it isn’t so bad. Our biggest problem right now is trying to convince people that western Pennsylvania is still in pretty great shape. In fact, the metropolitan Pittsburgh market was recently recognized as one of four major northeastern markets whose values have either turned positive or never had a problem in the first place. I submit to you that it was the latter.

In any event, as I have been saying ad nauseam, our values are stable, mortgage rates are insanely low, mortgage money is growing on trees, the government is stimulating the heck out of first-time buyers, the FHA has low down payment programs and we have a very adequate supply of homes for sale. All that makes it the perfect time to buy, to sell and ergo, to be in the real estate business.

There is no question that business has been slow. Due to the fear factor, many buyers have just stayed home, not about to do anything until the nightly news tells them that the coast is clear. As a result, many of the sales folks in our industry, who hadn’t been doing very well, made the decision that it was time to seek gainful employment. However, that doesn’t mean that there is anything wrong with the career; it simply means that THEY were wrong for the career.

That being said, let’s consider who would be right. If you think it sounds like a fun and easy job, you’re half right. It can be fun, but it is anything but easy. If it were easy, industry turnover wouldn’t be so high. National stats show us that half of those who get into the business this year will be gone by this time next year, and 85 percent will be gone in three years. Why? I believe it is because people get into this without adequate preparation.

Your first consideration should be money. This is a 100 percent commission position in most cases, so you won’t be paid until you have made a sale. As it takes between 30 and 45 days to close a sale, even if you made a sale your first day in the office, it will be nearly two months before a pay day. Good planning would suggest that you have a least six months income in the bank or a supportive spouse.

Next, my information indicates that those with a large sphere of influence get off to a quicker start. So the more people you know, the better. That’s why I have always thought this was a difficult business for folks who are new to the community. They don’t have that circle of friends and acquaintances that are so necessary to get the right send-off. It isn’t just that this group represents a larger pool of potential buyers; more important is their ability to refer those they know to you for your professional assistance. If you don’t have a large sphere of influence, that doesn’t spell immediate doom, but it does mean a rougher road. It will just take you longer to get going.

If I’ve heard it once, I’ve heard it a dozen times: “I wouldn’t be any good in the real estate business. I don’t have a sales personality.” This may come as a shock, but there are no sales techniques I can employ to convince you to buy a $300,000 house you don’t like. That’s not to say that some persuasive skills aren’t required to help buyers make up their minds once they have seen a home that is perfect for them, but for the most part, our job is more investigative. I have to listen hard to what you say you want, analyze that list to understand what you really mean, and then begin the process of finding that home. When I do, chances are very good that you’ll buy it, no tricks, no pressure.

I’ve discovered over the years that there is no personality type for success in this business. I’ve seen classic, slap-on-the-back sales types succeed AND fail, and I have seen very analytical personality types succeed, when you would think they didn’t seem aggressive enough. The determining factor appears to be in your heart. In your drive. Do you want to succeed? If the answer is yes, then you can.

The business isn’t that complicated—two months of course work and a state examination gets you ready to go. You simply need to be creative enough to recognize a lead and then follow it to a successful conclusion. It isn’t for everyone. There are lots of disappointments and frustrations, but then you’re dealing with people, so what else would you expect? On the flip side, there is nothing so satisfying as seeing the face of someone who you just helped fulfill the American dream. Think about it—you may just want to see that face!

Gary Straub is an independent real estate consultant who has been a real estate professional for 36 years.