In a host of different ways, real estate is a truly great business to get into. Not only does it bring with it the potential to make a significant amount of money, but it also offers flexibility and the Read more...
In a host of different ways, real estate is a truly great business to get into. Not only does it bring with it the potential to make a significant amount of money, but it also offers flexibility and the power to be your own boss. But before you decide to get started with your own career in the industry, try taking this quiz, "Should I become a real estate agent?" Do your research and know that there are a few important things to keep in mind.
The Ins and Outs of Being a Real Estate Agent: Your Guide
By far, the most important thing you need to understand about being a real estate agent is that it takes a tremendous amount of time to be successful.
Building your business takes time and consistency. It takes time to build your clientele. Direct mail marketing is a good way to market your business by mailing out direct mail marketing materials to let people know what is going on the local market and that now might be a good time to sell. Let people know who you are, what your focus is and how you can help them. Consistently build your outreach efforts to get your name in front of as many people as possible. By being consistent with this method, you will eventually find a buyer or seller who will become your client!
Likewise, you need to be aware that you can't just wake up one morning and declare yourself a realtor - before you get started you are required to take a wide range of different courses and you'll have to take the state exam. But beyond that, understand that all of those governing laws change on a regular basis - which is why it takes continuing education courses to actually keep your license.
In a general sense, one of the most critical things to understand about a career in real estate is that real estate agents do not get regular paychecks. You would think that people would know that by now, but you'd be surprised by how many people are shocked to hear this.
Real estate is a commission-based enterprise, meaning that the more you work, the more you make. You make more money on more expensive homes, and so on and so forth. But the reverse is also true - if you have a particularly slow period where you're not selling (or helping to buy) any homes at all, you're not generating income during that time.
This can be a difficult thing for people to wrap their heads around, which is why you need to make a business plan and stick with it. Based on your personal financial goals and business expenses, sit down, and calculate exactly how much money you need to make during a given period. With that, you can reverse engineer the total number of transactions that you need to be involved in to meet that goal. That will tell you how many new leads you need to generate on a monthly basis, which in turn will give you a good indication of what you need to be doing every day.
Yes, it's true that there is the potential to make seven figures in real estate. People do it all the time. But it's hardly a passive form of income - meaning that if you want to get to that level, you're going to have to work for it.
Finally, understand that real estate agents work long hours and irregular days - meaning that if you're coming into the business looking for something like a more traditional "9 to 5" experience, you'll likely want to look elsewhere. Oftentimes you'll need to show homes on nights and weekends. You might put in 12 hours or more one day trying to get a home ready for showing. But as stated, the earning potential is incredibly so if you're able to be successful, the effort will be more than worth it.
In the end, there will always be a need to buy and sell real estate - meaning that there will always be a need for real estate agents. The market goes up and down and some periods will be more fertile than others, but if you truly understand trends and "get" how the local market works, you can find a tremendous amount of success in the field.
If you approach your real estate career by having realistic expectations and a good understanding of what you need to accomplish your goals, there is truly no limit to what you can accomplish.
If you want to become a real estate agent, see these motivational success stories from top realtors
Love,
Kartik
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Great Ideas to Help You Maintain Client Relationships in Real Estate
Almost more than in any other industry, people tend to come into the world of real estate with many pre-conceived notions about what Read more...
Great Ideas to Help You Maintain Client Relationships in Real Estate
Almost more than in any other industry, people tend to come into the world of real estate with many pre-conceived notions about what their day-to-day jobs will be like - and which factors are truly important.
Yes, you're helping someone navigate a massive financial purchase - certainly one of the biggest they're likely to make in their entire lives. If you're helping someone sell a home, you're going a long way towards assisting them when it comes to securing their financial future. If you're helping them buy a home, you're potentially allowing them to start a family in a wonderful new place, or to finally begin to build that life they've always seen for themselves. All of this is true.
But a career as a realtor is also about so much more than that. If nothing else, real estate is a business of working with people.
Therefore, more than even an individual sale or a particularly successful quarter, success in terms of real estate will depend on your ability to build relationships. It's crucial to know how to set up and maintain a good foundation with your clients, as the more you do this the more likely it is that you'll have a steady stream of new people coming right to your door.
Building Relationships in Real Estate: Your Overview
By far, one of the best ways to build stronger, longer lasting relationships with your customers involves understanding that listening is a fundamental part of creating a good working client experience.
If you come into a situation and try to cram someone into a "one size fits all" box when it comes to looking for a new home, they're going to start to see you as cold and cynical - because that's exactly what you'll be. People will quickly pick up on the fact that you're not really trying to help them accomplish their goals because you're unconcerned with their wants and needs to begin with.
Instead, you need to ask the right questions and, above all else, listen to the answers. Why is someone looking for a home? What features are important to them and why? Where do they see themselves in five years? Ten years? Are they planning on starting a family at some point in the future?
Along the same lines, open communication is key when it comes to working with clients. If you take someone to a home and they decide they don't like it, don't just rush them along to the next one. Have a conversation with them and figure out what they didn't like and, more importantly, why. Talk about their goals and create an environment where they feel comfortable coming to you with questions, concerns, and advice.
Again - talk with your clients about more personal areas of their lives, such as their family and hobbies, to create a rapport and connection. Let them know that you see them as more than just another client.Never forget that people come to real estate agents because they need legitimate help and guidance. They're often feeling overwhelmed and have more questions than they know how to answer. By taking the time to talk with them and establish that connection, you'll build a tremendous amount of trust and loyalty as a result.
Finally, consider the fact that a meaningful way to express your appreciation and leave a lasting impression is with gift giving. This is especially true of clients that you've already worked with, as you always want to remain at the forefront of their mind.
When Thanksgiving rolls around this year, you could have a promotion where all your past and current clients can stop by the office to pick up a free pumpkin pie. If you know that one of your older clients is having a birthday, feel free to pop a card in the mail. Things like this are small gestures, but they do go an incredibly long way towards making people feel appreciated - which is how relationships are grown and maintained.
In the end, understand that the quality of your business is directly tied to the quality of the relationships that you're able to build with those around you. This is another one of those reasons why most experts recommend picking out a niche and sticking with it. If you choose to "farm" a particular geographic area - particularly one that you're already familiar with - you put yourself in a much better position to bring as much value to people's lives as possible.
Then, with each successful transaction, something magical happens. People see that you're every bit as invested in their success as you are. They see that you're willing to go above and beyond to help them accomplish their goals. They see you as a true partner in every sense of the term - which truly is the target you should be trying to hit, day in and day out.
An important part of maintaining relationships in real estate is reminding people that you're out there, to learn about the types of email campaigns to send to past and present clients click here
Love,
Kartik
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One of the most important things to understand about being a realtor is that you're never "just selling a house." Sure, on the surface, that's literally what you're doing. But you're also pitching something Read more...
One of the most important things to understand about being a realtor is that you're never "just selling a house." Sure, on the surface, that's literally what you're doing. But you're also pitching something so much more important:
Your personal brand.
People aren't going to come to you to buy or sell a home out of the kindness of their heart. They're going to do so because they trust you. Because they consider you an authority. Because they believe you have the skills, the knowledge and the expertise necessary to get them whatever outcome they see for themselves.
To put it mildly, you're not going to be able to get to this point overnight. As the old saying goes,"Rome wasn't built in a day."
That, in essence, is why open house marketing is so important. Over the short-term, it's a great way to help move whatever piece of property you're working with at the moment. In the long run, however, it's also an invaluable way to help show as many people as possible that you have what it takes to succeed - especially during your first year on the job.
The Importance of Open House Marketing in Real Estate: Your Overview
By far, one of the biggest reasons why open house marketing is so essential to new agents in particular is because it gives them a powerful opportunity to learn as they go.
When you walk into your first open house, you're probably going to be a little bit nervous. You're going to be interacting with members of the public and giving people personalized tours of a space. The chances are incredibly high that you're going to make mistakes with your presentation - and open house marketing gives you a chance to make them over and over again.
Now, that may sound scary - but it really isn't. Every mistake that you make is a learning opportunity, and the more you realize how to personalize the experience for the people standing in front of you, the better you get at it over time. Over the course of a day or two you'll probably walk dozens of people through that house and you'll get an invaluable opportunity to refine your process every time. You'll start to get a better sense of what they like and what they don't, and how to play to those strengths in an effective way.
Simply put, you'll get better at the gig the more you do it - and open house marketing allows you to do so as quickly as possible.
From an actual marketing perspective, open houses also allow you to build a brand that lasts. The more people see your name, the more likely they are to remember it. You'll begin to take marketing more seriously than ever, which is a big part of how real estate agents carve out a niche for themselves in a particular demographic area.
As you start to see the return on your investment - meaning as you start to see more people responding to your marketing collateral and walking through those doors - you'll be in a better position to take marketing seriously. That in and of itself may be the most important benefit of all.
The Investments of Marketing
In an effort to get as many people to that next open house as possible, there are a few key techniques that you should definitely lean into.
For starters, there are apps that are available to help with open house marketing right now in both the iTunes and Android app stores. Especially in a market as "hot" as the current one, people are always looking for great new homes in their area and if they're ready to buy, they typically want to move fast.
Therefore, by posting your listings and contact information on these apps, you're more likely to attract the right kind of attention as quickly as humanly possible.
Beyond that, you should absolutely use social media to spread the word about your next open house far and wide. Take to Facebook and Twitter and pay attention to the types of hashtags that are being used in the real estate industry. Make a post letting people know where the open house is, when it's taking place and other relevant information. Continue to post in the days leading up to the event.
Likewise, if you see someone post on social media that they're looking for a new home in a particular area, don't be afraid to send them a message and let them know what you have coming up. They may not necessarily be interested, but they'll immediately become aware - and all of their other followers will, too.
In the end, gaining clients with these open house marketing tactics is a fine line to walk - but it's very much possible. Resist the urge to include every last detail about the property - that's what the open house is for. You don't want to offer too many photos or too much information to the point where someone thinks "no, that's not for me." You want them to be enticed to the point where even if they're not sure, they still want to stop by the place and take a look around.
If you're able to get to that point, you'll have a steady stream of new leads walking right through the door - which in and of itself is the point.
Love,
Kartik
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One of the most crucial things to understand about lead generation in the real estate industry is that it's both slightly easier and slightly more difficult than you think.
For those unfamiliar, lead Read more...
One of the most crucial things to understand about lead generation in the real estate industry is that it's both slightly easier and slightly more difficult than you think.
For those unfamiliar, lead generation is a term used to describe how you not only attract the attention of potential buyers and sellers - but how you also convert them into actual, legitimate clients. In other words, you're trying to reach out to people who are interested in buying or selling a home to let them know that you're out there and that you can help.
The reason why this process is slightly easier than you likely think it is has to do with the fact that there are many, many opportunities to generate leads - especially in a market like this one. The reason why it's also slightly harder is because it takes a great deal of effort to actually do this properly
You need to be willing to put the time in and execute your lead generation strategy in a consistent way. You need to understand what goals you're working towards and how many leads you need to get there. You need to know where your ideal clients are spending their time, along with what they need to hear and how they need to hear it.
Getting to this point is entirely possible, even as a new realtor in your first year. It does, however, require you to keep a few key things in mind along the way.
What You Need to Know About Real Estate Lead Generation
By far, the most important thing to be aware of when it comes to real estate lead generation is that you need to be as specific with your own personal goals as possible.
If you became a realtor for the express reason of "I want to become the most famous and most successful agent around"... well, you're going to need to be a bit more detailed than that.
Think about the financial goals that you have for your own business, especially within the context of the next year. How much do you want to be able to grow? How much money do you want to make? How much money do you actually need to handle things like marketing and potentially even renting a space of your own (if that applies to your situation)?
The answers to questions like these need to inform absolutely everything you're doing, because you can use them to work your way backwards to the exact number of leads you need to be able to generate.
Once you know that number, you can track your progress throughout the year to make sure that you're still on schedule. You'll be better informed as to whether or not your marketing efforts are actually working, and you can ramp up or ramp down as needed. But you can't get to this point without knowing what your financial goals are in the first place, which is why you need to decide on them (or let fate decide on them for you) as soon as possible
There are many tools online that you can use to make this part of the process easier - with income and lead calculators being chief among them. They're often free, simple tools that allow you to specify how much money you want to make over the next year, at which point they'll tell you exactly how many leads you need to score.
You can input how much you want to make in commissions, the current number of leads you're generating per month, and even the average price of a home in your particular area. Some even factor in additional elements like the average percent of the commissions you're making, along with your own personal average close rate.
After including all of that information, the tool will spit out everything you need to know including the number of homes you actually have to sell, the total number of leads you'll need to generate to get to that point, and the average number of leads in a month you should be getting. It's a great way to contextualize your larger goals against all of the hard work you're doing.
Beyond that, a critical part of the process also involves knowing where you'll generate those leads from - something that will vary depending on your situation. For a new agent who has only just gotten your foot through the door in the local area, you'll probably want to use a service like Vulcan7. It bills itself as the "most accurate and effective real estate seller leads resource" that is available to prospect expired, FSBO and FRBO leads in your area.
You'll also want to immediately begin forming relationships with a lot of the other people who will be involved in real estate transactions that you're likely to be a part of in the future. Don't be afraid to make friends with people at local title companies, for example.
You should also begin a social media presence and scour sites like Facebook and Twitter for potential clients. Also, send out direct mail collateral to people in your area to let them know who you are, what you do and why they should be paying attention.
In the end, real estate lead generation isn't something you "do once and forget about." It's something that will require consistent effort over time. Soon, though, your effort will begin to generate its own momentum - and that is a very exciting position for any agent to be in.
Love,
Kartik
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By far, one of the most common misconceptions that new agents make when entering the real estate industry has to do with the assumption that they need to be targeting the widest possible audience of Read more...
By far, one of the most common misconceptions that new agents make when entering the real estate industry has to do with the assumption that they need to be targeting the widest possible audience of potential buyers and sellers at all times.
There may have been a time when this was true - but it has long since ended.
Instead, success involves targeting the right audience with the right message at exactly the right time - which is what building a niche in real estate is all about.
Rather than assuming that you're speaking to "anyone and everyone," you need to develop a niche - meaning a specialty in your business - and use it to gain leads. Once you've decided on this niche, it should inform a large part of most of your daily activities.
Thankfully, getting to this point is a lot more straightforward than most people assume it to be. It simply requires you to keep a number of key things in mind along the way.
Developing a Niche in Real Estate: Your Guide
For most new agents in particular, one of the best ways to develop a niche in real estate and gain leads involves specializing in a certain neighborhood.
This could be an area that you're already familiar with, or one that doesn't have too much competition from other agents. Regardless, you need to pick a location and become a subject matter expert in it as soon as you're able to.
Research absolutely everything you can about this particular area. Off the top of your head you should be able to quote the prices that recent homes have sold for. You should know what types of homes are in the area and what their distinctive features are. You should be able to talk about local features and points of attractions, like the quality of the schools and the distance to interesting entertainment venues.
In other words, you need to know this area as well as you possibly can - all so that you can establish yourself as a legitimate authority and build as much trust as possible at the exact same time.
Obviously, getting to this level of knowledge isn't something that is going to happen overnight. It's going to take a significant amount of hard work and dedication. But when you consider that you'll quickly start to build a reputation for yourself as a real estate agent worth paying attention to, all of that effort will be more than worth it.
Once you've honed your specialization in a certain neighborhood, you can focus on the next most important part of building a niche in real estate: marketing.
Again, you should focus your marketing efforts on a specific group - meaning people who are A) already looking to buy or sell, or who B) may be open to the idea within the next year or so.
At a bare minimum, you should send out marketing collateral introducing yourself and letting people know a little bit about who you are and what you do. This doesn't necessarily have to mean that you're "selling anything" - really, you want people to know your name and you want to pop up on their radar.
Over time, you can expand your offers in a variety of strategic ways to continue to stay at the top of their minds. Whenever a home sells in the area, use it as an opportunity to send an email (or consider using direct mail) letting people know about it. If there are any interesting market trends that you feel people need to be aware of, send them information about it and provide your own unique perspective. Even holidays can be a great opportunity to just send out mailers, wish people a wonderful season, and remind them that you're out there.
The more often you're able to do this, the more likely it is that you'll begin to develop your reputation as the go-to realtor in the area. If someone decides that they want to sell their home, the chances are high that the first person they call is you. Even if people aren't ready to buy or sell today, they'll remember you so that when that day does come, they pick up the phone and give you a call. They'll likely also recommend you to friends and family members who they know are interested in beginning this process.
Beyond that, you'll always want to develop your specialty as much as possible. There's more than enough room in the real estate industry for everyone - you just have to find your own special corner and capitalize on it at your earliest opportunity. Some people choose to build their niche around the purchase of historic properties, for example - something that there are certainly a lot of in California. Others choose to focus on luxury properties, or condos.
Others still choose to focus on distressed properties that can be quickly sold to development companies. Vacation properties, senior homes, it doesn't matter what you choose so long as you make a selection and commit to it.
In the end, building a niche in real estate isn't just a great way to get your career started. It's also a way to gain leads and develop a steady, reliable stream of business for yourself - which in and of itself may be the most important benefit of all.
Love,
Kartik
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According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the Read more...
According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the market over the last two years.
In Southern California in particular, prices hit an all-time high of $655,000. Not only is that an enormous 20.2% increase over 2020, but it's also approximately $25,000 higher than the price record that was set just one month prior, in March.
The Factors That Impact Home Price Appreciation: An Overview
But the strength of the market isn't the only thing having a significant impact on home price appreciation - far from it. Equally important is the growing net worth of the homeowners themselves.
"Net worth" is a term used to describe the total value of all of a person's assets, minus the value of all of their debts and various financial liabilities. It's an important number to know, as it's a quick way to truly understand someone's larger financial health.
It's also important to understand within the context of real estate, because the average net worth of homeowners tends to be dramatically higher than people who are renting. According to one recent study in 2019 the average net worth of people who owned homes was literally 40 times higher than those of renters. Those who fell into the former category had a median net worth of $255,000, while those who fell into the latter had a median net worth of only $6,300. As expected, this is a financial gap that has only been getting more significant since the onset of the Great Recession more than a decade ago.
But if you understand how real estate works, this actually makes a great deal of sense. Someone's home tends to be their primary source of wealth. As average home values skyrocket and houses continue to appreciate, their wealth goes up. You don't get to enjoy the same benefits if you're living in someplace like an apartment, for example.
Another important idea to understand has to do with the fact that home price appreciation and home equity are directly linked. Home equity is described as the total value of someone's interest in their current home. One of the fastest ways to build equity is to make the largest down payment that you can. If you make a down payment of over 20% (assuming you're financially able to do so), it will instantly offer more equity than it would if you had made a smaller payment.
The vast majority of all people don't purchase homes in cash - they get the necessary funds via a mortgage loan. When that loan originally begins, the financial institution who gave it to you has a much larger interest in your home than you do. But as you continue to make payments, your interest goes up while the bank's goes down until the loan has been paid off. Therefore, another way to look at home equity would be to say that it's the part of your home that you actually own - meaning a financial representation of what you've already paid off on the original loan.
Additional Considerations About Home Value Appreciation
Of course, real estate is a complicated topic - and home value appreciation is no exception. While the factors outlined above are certainly important, there are a number of others that will directly impact a home's price appreciation, too.
One of these are the neighborhood comps - something that a lot of homeowners in California are benefiting from right now. When similar homes in a neighborhood sell - meaning ones with similar floor plans, features or other qualities - that can absolutely cause a home to appreciate much faster. Because the real estate market across the country is so hot right now, a lot of people are finding that their homes are growing in value much faster than they otherwise would have had things been more stagnant.
Location is also another factor that impacts home price appreciation. The quality of the local school district, the total number of desirable employment opportunities, and even the distance to points of attraction like shopping or entertainment venues can all make a home's value increase.
Finally, any upgrades or updates that have been made to a home can also cause the value to appreciate. This is especially true in older homes that may have already had outdated features.
If you own a home in Los Angeles with a current estimated value of between $150,000 and $250,000, for example, choosing to remodel your kitchen could add between $19,000 and $23,000 to the value of your home immediately after the project is completed. Adding a bedroom could add between $8,000 and $10,000, and even adding just a full bathroom could add between $1,900 and $2,300. Obviously, how much value certain upgrades will add depends largely on the area of the country where you live.
In the end, understand that home price appreciation is still somewhat at the mercy of the local market. If someone is buying in a buyer's market, they'll be able to negotiate on the price of a home far easier than they would if it were a seller's market for obvious reasons. But the good news is that in California in particular, home prices are expected to continue appreciating for the foreseeable future - a trend that shows absolutely no signs of slowing down anytime soon.
Love,
Kartik
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The real estate business is not only competitive for buyers and sellers, but also for real estate agents. Your business thrives on constantly bringing in new clients to fulfill their home dreams. Yet Read more...
The real estate business is not only competitive for buyers and sellers, but also for real estate agents. Your business thrives on constantly bringing in new clients to fulfill their home dreams. Yet what you wear can have a significant impact on whether the client wants to work with you or if they move on to the next firm.
One of the interesting things about the real estate business is that many agents believe anything goes when it comes to dress attire because this is their chosen career. Since they may work for themselves instead of with a brokerage that has a dress code, they believe that their dress decisions should only matter to them. This factor may often lead to them wearing things that may turn off buyers or sellers, such as see-through clothing, over-gaudy jewelry, or even tacky shorts.
However, your dress attire will be the first impression that buyers and sellers get about how knowledgeable and professional you will be with your services. Clients know that they could be working with you for several months. They do not want to have the impression that you do not want to take the job seriously, or that you may be so new to the real estate industry that you won't quite know how to handle negotiations or closings. Find out what the appropriate dress is that you may want to stick to when working as a real estate agent.
One Size Does Not Fit All
The good thing is that you do not have to stick to the strict cookie-cutter business suits and dresses, unless that is what you desire. There is no one-size-fits-all when it comes to what to wear in this profession because buying and selling buildings are not restricted to corporate developers or big city Realtors. No client would expect their real estate agent to show up to the beach wearing a three-piece suit or selling a ranch while wearing oxfords as you step around the livestock.
Think About the Region
Certain regions have a particular type of clothing trend that is popular to that area. Straying from this trend can often make real estate agents stick out in a negative fashion, as if they are someone new who is just muscling into the real estate game in that location. For metropolitan areas, a more formal business attire would be expected when working with clients interested in hi-rise apartments or commercial spaces. In more rural towns where everyone basically knows just about every neighbor by their first name, a more casual attire would be expected.
Think About Your Clientele
Based on the types of real estate that you work with, you may have clients of a specific demographic, such as families, retirees, empty nesters, and young couples. Some demographics may be a bit more lenient when it comes to the attire you pick. Others, such as older clients, can expect a more formal business attire. For families, they may look toward semi-formal to business casual. Consider the clientele so you can make the best first impression possible while developing a loyal customer base.
Clothing to Avoid
While you should dress in such a way as how you want to portray yourself as a real estate agent, there are usually a few pieces of clothing that should strictly only be worn during personal hours. Some clothing not to wear as a real estate agent includes:
• see-through clothing
• ripped jeans
• workout clothes
• graphic t-shirts
• short shirts that show the midriff
• tube tops
• shorts
• tight-fitting clothing
• miniskirts
• hats
It can be left to debate on whether some of these items can be worn for real estate work, such as wearing a graphic t-shirt with the name of the real estate firm on it. While this may be acceptable in certain circumstances, always remember that you do not want to cause any friction with a client who may not want to see certain graphics. For example, you may want to show team spirit by wearing a t-shirt of your favorite sports team. But if the client roots for an opposing team, this can sometimes create bad vibes at the first meeting.
Dress to Impress
You cannot go wrong with dressing to impress your clients. If you are working at a firm, ask the managers and coworkers about the best attire to wear when meeting clients inside and outside the office. Then consider the location, regional dress trends, customer demographic and your personal branding as factors when choosing the appropriate attire. You are sure to come up with your go-to real estate clothes that will help you find the perfect clients and professionally close deals while you become the top real estate agent in the country. To read real estate success stories from some of the top real estate agents click here If you are inspired to become a real estate agent visit our website or give us a call!
Love,
Kartik subramaniam
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So you finished real estate classes, you’ve chosen a broker to work with, you’re sitting at your desk and thinking: Now what? to buy a home right now. Sure, they know that they want to and that Read more...
So you finished real estate classes, you’ve chosen a broker to work with, you’re sitting at your desk and thinking: Now what? to buy a home right now. Sure, they know that they want to and that special day may very well be on the horizon. But they could also be waiting for a job transfer to come through, or for more savings to hit their account. They could even be trying to improve their credit - a process that certainly isn't going to happen overnight.
For most of the students that go through our real estate school, the potential for unlimited income played a large role in the decision to get licensed. Truly, there is no limit to how much you can earn thanks to the commission-based structure that the real estate industry provides. This, coupled with the fact that real estate agents can set their own schedules and the added satisfaction that comes with helping people achieve their dreams of homeownership, creates something of a perfect storm in the best possible way.
But at the same time, the chasm between becoming a Realtor and becoming a successful Realtor is a deep one, indeed. Rising to the status of the latter is something that takes an incredible amount of hard work and perseverance - often more than people are expecting when they begin their first day on the job in real estate.
In fact, the first 30 days as a real estate agent are critical for setting the tone for everything that transpires afterwards. Because of that, making sure that your career launches properly is mission critical to your long-term success in our business.
TL/DR - What you should expect in your first 30 days:
1. Join the Association of Realtors
2. Get MLS access
3. Get your eKey
4. Tell your friends and family that you’re in the business
5. Update all your social media
6. Preview at least 5 properties a day for at least the first 30 days
Getting the logistical stuff squared away
Standing up the logistical tools needed to get your real estate career started might seem obvious but they are worth mentioning. Simple items like ordering your business cards, getting your Board dues paid, making sure you have MLS access and Zipforms should be done in the first week at most.
Some companies may hold your hand through this process of onboarding but many real estate companies have so many new hires that these items could slip through the cracks. Take things into your own hands if needed and get them done quickly.
You also will want to write a professional bio, get your headshot done, as well as update all your social media profiles. Registering and creating profiles on sites like Zillow, Yelp, LinkedIn and Facebook won’t take long but they need to be done. If someone should Google your name, you want the first thing to come up to be a professional bio (complete with that previously mentioned headshot) to instantly give off the impression that you mean business and have social proof that you’re in the game.
I’d also recommend gathering the names, addresses, emails and other bits of contact information of everyone you know - this will act as the new sphere of influence that you will slowly build from over time.
Once that database is complete, you'll want to create a short letter or email to send out to every last name on it. The goal is simple: you want to let as many people know that you're now in the real estate profession and it isn’t just a hobby. Unless you hit this list, you’ll never know whether they're looking for a house right now or whether they're considering selling at some point in the future. The worst feeling is seeing one of your friends post on social media that they are selling or buying and would have done the deal with you had they known you were an agent.
This is also the period when you'll want to make an effort to truly understand your market. There are a lot of real estate agents who know how to help someone buy or sell a home. The key to your competitive advantage will be your ability to do so better than anyone else and become the local real estate expert in your community - which is why you need to do research, and lots of it.
Venture out into the area and show yourself around a few homes on the market. Test out that eKey, get comfortable with the process. Drive by homes that are for sale in your MLS. Not only will this help you get more familiar with the area you'll be operating in, but it'll also help you get more comfortable with the very process itself.
Speaking of the MLS, use the first 30 days as an opportunity to run real estate market reports to make sure you're aware of all current market conditions. At any given moment you should know how fast homes are selling, the average prices they're going for, the list-to-sales price ratios and more. You could also consider offering free home valuation reports to all of your friends, to both get comfortable with the process and to show as many people as possible how serious you are about your new career.
Networking and Beyond
Your first month as a Realtor will also be one where networking with other agents is critically important. Plan on attending every open house that you can and preview plenty of properties listed by other agents. Ask to shadow a seasoned veteran for a day. It doesn't matter - connect with as many people as possible, because you never know who will be able to help.
You should also draft a business plan to set some straightforward goals (not to mention a budget) for your first 90 days and beyond. Make an effort to set realistic goals for each week over the next few months, both to make sure that you're always moving in the right direction and so that you avoid feeling too overwhelmed.
Finally, you need to understand that even beyond your first 30 days, you need to take advantage of every opportunity to learn and grow as a real estate professional. Take classes with your local Association of Realtors. Determine and understand what your unique selling proposition is and be able to communicate why someone should care about it. Attend any new agent orientations you can find. Review as many real estate contracts as you can get your hands on and write some of your own. I remember when I was just starting in the industry, I would draft purchase contracts on random houses at night just so that I could learn the contract.
If you're able to find time for all of the above, you'll have done more than just make excellent use of your first 30 days. You'll have created a rock-solid foundation that the rest of your career will be built upon.
For more resources to help in your first 30 days see blog
Good luck!
Love,
Kartik
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As a real estate agent, you will inevitably encounter clients needing more time to buy a home. These long-term buyers may be waiting for a job transfer, building their savings, or improving their credit. Read more...
As a real estate agent, you will inevitably encounter clients needing more time to buy a home. These long-term buyers may be waiting for a job transfer, building their savings, or improving their credit. Regardless, your role as their real estate advisor remains essential. Here are some tips to help you guide long-term buyers and ensure their future success in purchasing a home. Additionally, consider enhancing your skills and knowledge through a real estate school, online real estate classes, and real estate exam prep to serve your clients better.
Caution Against Large Purchases
Buyers must exercise financial prudence when buying a home, and realtors play a vital role in guiding them through this process. One essential piece of advice that realtors should offer long-term buyers is to postpone any significant purchases that could negatively impact their credit.
Encouraging clients to prioritize their home purchase over buying a new car or financing expensive furniture can make a considerable difference in their home-buying journey.
Large purchases can increase a buyer's debt-to-income ratio, lower their credit score, and affect their mortgage approval chances. Additionally, these financial decisions might signal to mortgage lenders a need for more financial discipline, raising concerns about the buyer's ability to handle mortgage payments.
Warren Buffet's concept of delayed gratification offers valuable insight into why buyers should delay these expensive purchases. Delayed gratification is the ability to resist the temptation of an immediate pleasure in the hope of obtaining a more valuable and long-lasting reward in the long term. By practicing delayed gratification, buyers can prioritize their long-term goal of homeownership over short-term desires for material possessions.
The ability to delay gratification is linked to many positive outcomes, including academic success, physical health, psychological health, and social competence. This skill is closely related to patience, impulse control, self-control, and willpower, all of which are crucial in home-buying.
By advising clients to embrace the concept of delayed gratification, realtors can help them focus on the long-term benefits of homeownership. As they resist the temptation of immediate rewards, buyers can work towards securing their dream home, ultimately reaping the rewards of their patience and financial discipline. By incorporating this perspective into the home-buying process, realtors can better guide their clients toward a successful and rewarding home purchase.
Promote Timely Bill Payments
Stress the importance of paying bills on time, as missed payments can harm their credit and delay home-buying. If they're at risk of missing a payment, suggest they contact their creditors to work out a solution.
TLDR - Pay bills on time or early.
Discourage Large Bank Transactions
Remind your clients to avoid large withdrawals or unsourced deposits to their bank accounts, as mortgage lenders scrutinize financial history thoroughly. Unusual transactions can lead to mortgage application denial.
When purchasing a home, buyers must be mindful of their financial transactions, as mortgage lenders pay close attention to their financial history. Large withdrawals or unsourced deposits can raise questions and potentially jeopardize the approval of a mortgage application. Understanding the impact of such transactions and why avoiding them is vital during the home-buying process is essential.
Mortgage lenders evaluate an applicant's financial stability and ability to repay the loan by analyzing their income, expenses, credit history, and existing debts. Unusual transactions, such as significant withdrawals or unsourced deposits, can raise red flags and suggest potential financial issues or undisclosed liabilities. Lenders may perceive these transactions as signs of financial mismanagement or an attempt to conceal relevant financial information, leading to doubts about the applicant's creditworthiness.
Moreover, mortgage underwriters must verify the source of funds used for the down payment, closing costs, and reserves. Unexplained or unsourced deposits can complicate this process, as they need clarity regarding the origin of the funds. This lack of transparency may lead lenders to question the legality or legitimacy of the funds, which can ultimately result in a mortgage application denial.
Maintaining transparency and consistency in financial transactions is crucial when applying for a mortgage. Buyers should avoid large withdrawals or unsourced deposits to their bank accounts during the home-buying process, as these unusual transactions can raise concerns for mortgage lenders and jeopardize the approval of their mortgage application. By keeping their financial activities clear and well-documented, buyers can increase their chances of securing a mortgage and successfully purchasing their dream home.
Warn Against New Credit Applications
Instruct your clients not to apply for new credit, including credit cards and financing large purchases. Also, ask about recurring payment plans, such as the iPhone Upgrade Program, which may perform "soft pull" credit checks that could negatively impact their credit score. New credit applications can impact your credit score for several reasons, and it's crucial for people in the process of buying a home to avoid applying for new credit during this time. Here's why:
Hard Inquiries: When you apply for new credit, lenders perform a "hard inquiry" on your credit report to assess your creditworthiness. Each hard inquiry can lower your credit score by a few points, and multiple inquiries within a short period can have a more significant impact. A lower credit score may result in less favorable loan terms or even denial of your mortgage application.
Debt-to-Income Ratio: Applying for new credit can increase your overall debt and raise your debt-to-income (DTI) ratio. Mortgage lenders consider your DTI ratio when determining your loan repayment ability. A high DTI ratio may lead to higher interest rates or disqualification from certain mortgage programs, making it more challenging to secure a mortgage for your desired home.
New Credit Accounts: Opening new credit accounts, such as credit cards or personal loans, can affect your credit score in several ways. Firstly, it reduces your average account age, which can lower your credit score. Secondly, it can impact your credit utilization ratio – the percentage of available credit you're using – another factor lenders consider when evaluating your mortgage application.
Financial Instability: Mortgage lenders prefer financially stable applicants with responsible credit behavior. Applying for new credit during the home-buying process can signal financial instability or the inability to manage existing debts, which may raise red flags for lenders.
To ensure a smoother home-buying process and increase the chances of securing a mortgage with favorable terms, it's essential to avoid applying for new credit during this time. Instead, focus on maintaining a healthy credit score, paying bills on time, and keeping your debt-to-income ratio low.
Maintain Regular Communication
As a real estate agent working with long-term buyers, maintaining regular communication throughout their home-buying journey is critical to your professional success. By keeping in touch with your clients, you demonstrate your commitment to their needs and ensure that you remain their go-to expert when they're finally ready to make a purchase.
Regular communication helps build trust and rapport with your clients, which is essential for fostering a strong, lasting professional relationship. By staying in touch and providing valuable information, you show your clients that you are genuinely invested in their long-term goals and ready to support them at every step. This proactive approach to client communication allows you to anticipate their needs and provide guidance on any potential challenges they might face during the home-buying process, ultimately making their experience smoother and more enjoyable.
Additionally, consistent communication keeps your clients informed about the latest market trends, new listings, and potential opportunities that align with their preferences and budget. By providing regular updates, you ensure that your clients remain well-informed and prepared to make educated decisions when the right opportunity presents itself. This level of attentiveness can set you apart from other agents, who may not prioritize long-term clients similarly.
In conclusion, maintaining regular communication with your long-term buyers is essential for securing your position as their trusted real estate advisor. By staying in touch and providing valuable guidance throughout their waiting period, you demonstrate your dedication to their success and ensure that you remain top of mind when they're ready to buy. In a competitive industry, this level of client care can make all the difference in securing future business and building a reputation for exceptional service.
Remember, not all clients will be ready to purchase a home immediately. By following these tips and investing in your education through a real estate school, online real estate classes, and learning how to get a real estate license, you can better serve long-term buyers and improve your chances of converting them into successful homeowners in the future.
Love,
Kartik
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As a new real estate agent, making the right first impression is critical . Details matter. That includes the way you look, your approach, and your personality. It also relates back to the type of Read more...
As a new real estate agent, making the right first impression is critical . Details matter. That includes the way you look, your approach, and your personality. It also relates back to the type of image you portray with your vehicle.
Why Your Vehicle Matters
First impressions matter to home buyers and sellers. They want to know that the person they are working with is successful, even if they are brand new. Having a car that is both functional and impressive enough is a key part of the process. Since most real estate agents will help buyers see a variety of homes often by driving them around, this can be an important decision to make. To be clear, packing everyone into the same car while COVID rages probably isn’t the wisest decision, however, COVID will be behind us and it will be back to business as usual.
Most agents aim to find some balance between their image and the relatability of the vehicle. That is, while you want to have a nice and comfortable vehicle, you do not want something that’s too flashy that could scare away some of your most likely buyers. How do you do that?
What Every Real Estate Agent’s Car Should Have
One of the first things to start with is the basics. There are some features that are critical that every vehicle has. These make a difference in the type of experience the buyer and seller may have. Some key starting points include the following:
Air Conditioning: Comfort matters. You want to be sure that anyone that is in your vehicle is comfortable. A nice feature to have is adjustable cooling for the backseat. That helps your buyers to be able to control their heating and cooling to find the right temperature of comfort. It helps keep them happy on a hot day.
Radio: It’s a good idea to have a reliable radio. You may not need surround sound and top-of-the-line speakers, though. It is a good idea to have some music playing in the background when you pick up your buyers. When it is silent in the car, people feel uncomfortable. A big part of what you are doing now is keeping everyone enjoying the experience. You may even want to create a playlist for your car that is upbeat, positive music.
4 Doors: There’s no situation in which your buyers want to try to climb out of the backseat of a car. More so, it should be a roomy enough backseat that they are able to sit comfortably even if they are a bit taller or need more room. Be sure to choose a four-door vehicle that’s designed to accommodate your needs outside of work, too.
Clean: Perhaps the most important part of your vehicle is how clean it is. People who are stepping into your vehicle expect it to be comfortable and sanitary. This is very important, especially in a pandemic world. If you are buying a car then, be sure to look for features that make it easy to keep clean. That may include leather or leather-like material. If you can choose a vehicle that has easy-to-remove or clean carpeting, that can help as well. Keep it litter free as well.
What Kind of Car Should I Drive?
New real estate agents are often overwhelmed by this decision. It does not
have to be a complex process, though. You want to provide a positive
experience for your buyers. They do not expect a top of the line vehicle, but
they want something reliable.
There is no benefit to you, especially as you are just starting, to have a too expensive car. If it has features that make a difference to you, such as a navigation system, that’s great. If not, you still have your smartphone you can use to help with getting around. What’s most important is not to overspend at the beginning of your career and to choose a car that fits into your budget as a new real estate agent . Over time, you can upgrade as you see fit.
Choose a car that is not going to break the bank. It’s okay to buy a car that fits your personal needs, too, especially since most agents will use their car for this as well. Take the time to find a car that fits your personality and your client’s most likely needs. Then, be sure to take care of it to keep it looking sharp.
Love,
Kartik
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