Posted by: realestatewebtrainer | April 3, 2011

Why so many fail in a Real Estate Career?

A Real Estate Career is NOT for everyone; it is not for even less than 1/10 of 1% of the population – why is that? Why do so many fail at a career as a Real Estate Professional? In fact less than 150,000 agents in a country of over 300 millions inhabitants can call themselves Full-Time Real Estate Professionals. I am sure you have heard that nearly two Million people hold a Real Estate License in the country but that does not mean they are making a living at Real Estate.

Pondering a Real Estate Career - Think hard! So what is it that makes so many fail at this career when the barriers to entry seem so low? I say “Seem” because once one realizes the reality one comes to appreciate the hard work many of them must put themselves through in order to succeed.

I will share with you the Number 1 reason last – but let us look at a few reasons for failure in a Real Estate Career.

1. Unrealistic Expectations – Everyone looks at the high producing agents who always clear more than six figures in Real Estate but forget that the Median Income of the Real Estate Industry is in the low $30K – there are lots of Real Estate Agents who end a year with less than 5 Closings. A large number must hold a second job as they ramp up their business and I admire that – we must let those who wish to enter the industry know the reality and what to expect.

2. New Real Estate Entries don’t know or don’t embrace the idea that They MUST Pay for all their Marketing Materials; from the much needed Business Card with a Professional Photo, to all the Signs in the yards, and all the advertising they must purchase to promote listings or work with Buyers. In Real Estate you pay for everything upfront. The average agent spends no less than $12,000 a year in aggregate marketing and he or she are not assured of success. Sure you can start with just a Business Card and start chasing those you know to help them Buy or Sell – but the reality is much tougher than that.

3. Real Estate is a People Business NOT a Housing Business – more importantly a psychology business in the sense that you MUST understand the motivation of a variety of people and their needs to Buy, Sell, or Invest. You hear some talk about those who have a Knack at Closing Sales – they mean that their People Skills are highly tuned and know how to close their clients.

4. The Real Estate Business is becoming more competitive due to the Internet; consumers can now hide behind the veil of anonymity and do take their time shopping using the Web; This means that consumers are forcing the Real Estate Industry to embrace concepts like Blogging, SEO, Internet Marketing, Websites, Chat, Social Media, etc… This is also forcing Agents to become more Tech Savvy and many of them are woefully behind.

5. Business Planning and Methodical Implementations of Day to Day Tasks is also a big challenge; you hear agents say it this way: “I am not well organized!” Due to the nature of competitiveness you cannot afford to waste your time; Prospecting must be planned; Meeting with clients must be a priority; reviewing contracts; etc… The cream that rises to the top of success in the Real Estate Business succeed by hiring organized Administrators who run their transactions methodically. They remove the guess work, and everyday, every week, every month, and every year is planned.

But the number One Reason many fail at a Real Estate Career is:

You Must Generate your own Business before you get a chance to Close it. let me say it another way: “No one gives you Leads you must get them; buy them; prospect them; and/or earn them!” Many come to the industry and think of themselves as “Order Takers” – they imagine showing up at the office; getting calls from people who need them ; driving them around; and collecting a Fat Commission at the end. The awakening occurs when they realize that they need to hit the road, the phone, the internet, etc… to generate their own leads, nurture those leads for an extended period of time; offer excellent Real Estate Advice and Service; and then hope that a closing occurs. This is the biggest challenge a Real Estate Professional faces and this is why only a few truly make it.

The Real Estate Business is a wonderful place for a lot of Professionals and many of them earn a strong reputation and build a tremendous book of business; but they had to earn it through blood and sweat and that – must come from within you!

Happy Blogging 🙂 – Key Yessaad, Real Estate Trainer

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