Common Misconceptions
- Real estate is a Get–Rich–Quick industry. Most think this is a get-rich-quick profession, and they are disappointed when they discover that is not the case. Being a real estate agent means you are putting the needs of your clients ahead of your own needs, and this means your income needs as well. And sometimes this is challenging, if you enter the profession undercapitalized. The average income of a real estate salesperson in Australia is $71,724 (ABS 2016 Census). When you think about it, this takes into consideration the newest agents and the most experienced, the average and the highly successful. It shows just how low the new to industry and average salesperson income must be.
- Real Estate is about houses. Real estate is more about people than it is about houses. If you are not a people person then this industry may not be for you. The first sale an agent makes is selling his or her ability to be the best agent to the seller and the second sale is to the buyer about the life they can live in the property or what the property can do for them investment wise. Whilst it may seem to the outsider that houses or properties is what we sell, this couldn’t be further from the truth.
- I know a lot of people so I will have listings right away. Having a steady stream of clients will be the most difficult part of job. An agent’s real job is actually not just selling homes, but marketing themselves and answering the question, “Why should someone choose YOU out of all other agents in town?” Only when you have a clear answer to that question and you are able to communicate it in your marketing and start to build profile. Many agents are disheartened when neighbours, friends and even family choose to list with another agent. There are many reasons why this may happen but often it is simply people prefer to deal with someone at arms length, along with the fact they know you as who you were not yet as a real estate professional.
- Real estate is easy and anyone can do it. This industry is so widely misunderstood by the general public, granted this may be because of the way we present ourselves as well dressed driving fancy cars. There is a reason for that, to be able to win the business we need to look and behave in a way that people perceive we are successful. If we are not able to present ourselves then how would we be able to present a property for sale. The turn over rate in the first 12 months in the industry shows that real estate isn’t for everyone. To have a chance you need to be a people person, have self-discipline and drive, be ready to learn and take on feedback, handle rejection, have the dedication to work long hours, enjoy the chase and the thrill of the kill and that’s only the bare minimum.
- Real estate is all about driving fancy cars, standing at an open home and collecting the commission. As a new to industry starter it is likely that 80% of your time will involve prospecting, that is searching for possible new listings. We cover the ‘how’ of this in a later module but the easiest way to explain it is lots of cold calling, calling very old data from the office (if you are lucky), good old fashioned door knocking and continually follow up that could go on for years. There is a lot of hard yards to put in before you get to the fun part of being a real estate agent. The smart ones choose to master the mundane and choose to enjoy it, they can see this is an investment in their future. It takes a lot of hard work and continual follow up to build a profile in our industry.