A friend asked me if she should consider becoming a RE Agent in Las Vegas at this time - I told her no, not at this time . What do you think?

Asked by Brett, Las Vegas, NV Thu Oct 8, 2009

I told my friend I think she would also be better off in another market (region) with more non-SS's and REO's since the Vegas market seems to be over 95% REO/SS homes at this time.

I'm sending her the link to this posting so she can read replies from local realtors first hand.

So, please share your honest opinions as one agent to another prospective agent.

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Answers

11
Shawn Gibson, Agent, Las Vegas, NV
Tue May 4, 2010
I've been a Realtor in Vegas for 2 years and have close over 20 transactions. I think that it's the right time. The right company you may ask? Keller Williams Las Vegas. Call me if you are interested. You'll love our profit share program.
Web Reference:  http://www.sgsellsvegas.com
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sun Oct 11, 2009
Brett, your observations are 100% correct. The field of real estate professionals should reduce by 60% of the number in business in 2007. Closer examination of those who are leaving or preparing to leave (part timers) will reveal they didn't adapt with the changing environment. These brokers and agents have a death grip on the tiller of their doomed 1990's business model and marketing system. As you can read in this thread, those who adapted are prospering, those who haven't are going part time. Those who haven't adapted are competing in a VHS world that no longer exists. California, Nevada and Florida have all been hugely effected by the reckless effects of 'Zero down, Zero interest' mortgages. But folks still need places to live.

New agents, unfortuneately, don't know what they don't know and can easily fall into a failed pattern of beliefs and actions that can easily sabotage the commitment they must make to their success. Their is plenty of room for success in real estate. However, one must be able to answer the following question without using one syllable of real estate jargon. "What value do you bring into a real estate transaction that justifies taking thousands of dollars of hard earned equity from a home owner?" Run your answer by a few consumers. Do they believe? If not, your 'increasing value' may not be as solid as it could be. Without understanding your consumer value (not to be confused with the garbage brokerages propagate) it is truly difficult to maintain a passion for the real estate business and avert the temptation to go into part-time oblivion.

Real estate in any capacity is not easy. It is not for those who lack vision or those who think 'showing houses' is the major qualifier. It is for those who want to create their business, manage their future, acquire a sustaining enterprise, touch the lives of others in deeply meaningful ways and emulate a model of success for others who seek the financial freedom real estate can provide. So, when would be the right time to start on such an exhilarating journey?
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Oct 10, 2009
With any profession you find your niche and make money Many believe real estate is just opening doors for either commercial or residential properties for sale HOWEVER there are many divisions for real estate matter of "tapping" those areas.

I would tell her go for it.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

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0 votes
Brett, Home Buyer, Las Vegas, NV
Sat Oct 10, 2009
I admire your positive attitude, Annette.

But I can't help wonder if being an agent is like selling sun tan lotion on the street corner when it's rain season.

I think there is a reason there are a lot of RE agents who are part time - very few can make a living wage (no matter how well educated or motivated) in today's market place.

This is why I always see brokers advertising for new agents (fresh blood) - people who have been in the business for a while either became brokers (if they have the contacts and money) or simply left due to lack fo income. So, new blood is always needed to keep that broker in some green. Once those new agents figure it out, they leave, and the broker continues this recruiting process....on and on.. Its sad.

There was a time when RE sales were good for new agents who got educated and worked hard. But these are VERY different market conditions. For all of you new agents out there, I wish you well - but be realistic. In Las Vegas, there are VERY FEW sellers you can list who are not badly underwater. That means, those you do list will be 'short sales' (which rarely ever close). Only a handful of agents are getting a significant number of new listings (these are REOs). That means there are fewer houses to list, and most of your income will come from selling REOs. A very very bad situation for sales agents when so many offers must be made to close a sale (even when you have the rare well qualitifed buyer READY TO GO).
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sat Oct 10, 2009
Brett, lots of good responses to your question. Where ever I look I discover there is no 'easy money' to be had. Where ever one is working, the anxiety of what looms in the future and the peril one's family may be facing is unrelenting. Real Estate is no different. However, homes are sill being bought and sold every day.

Few professions present the plethoria of ways to make money as real estate. Few professions provide unlimited portals from with to attract and grow individual business. Few professions provide unlimited specialties and niches as real estate. Few professions offer unlimited income such as real estate. Few professions allow the wide latitude of business models that are found in real estate.

Success or failure in real estate is not so much related to the economy as to the commitment of the indivual who is participating. The commitment to do what ever is necessary to educuate themselves, apply appropriate disciple to create and execute a real estate business plan, and to maintain unwavering focus on increasing the value they bring into a real estate transaction.

The changes observed in the past five years with the enconomy and the way citizens get information has recreated the real estate arena. In my humble opiinion, now is a good time to start a real estate business. A new real estae agent would not be encumbered with expensive legacy systems and will have incredible agility to exploit social media to build a business with very little cost. The real challenge in this business is band width. The real solution is deploying systems that exponentually expand that band width. It's a new world in real estate and I'm glad to be a part of it.
0 votes
Brett, Home Buyer, Las Vegas, NV
Sat Oct 10, 2009
I like the joke, Damon. There are a lot of agents here in LV, that is for sure. Where my friend works, several of her coworkers are also 'part time' agents'.

In this market, I think having at least 12 mos. of resverve cash to get buy is a minimum. An agent told me the other day that it is taking him twenty purchase offers to close a deal. That is what I figured in this market.

With more job layoffs (county/state/etc) and businesses failing left and right in Vegas, I dont see the RE market getting better (for sales agents, anyway) any time in the near future (years). Sales stats right now reflect a lot of investor purchases - not families moving into the area to live here.

Please correct me if I'm wrong but sales stats show that home sale prices are still in significant decline, esp. over the last six months. With sales agents having to write so many more offers to close each REO deal, this seems a prescription for disaster. I do really admire the tenacity of agents who keep plugging away but it seems a very tough road ahead with so many REOs and more to come soon as banks release more of thier inventory (according to mortgage industry news).

Now, a *broker* who is getting batches of REO's to sell, on the other hand, is going to do quite well. The fake low prices attracts buyers and an army of agents hungry to pay their own home loans goes to work to start the 'closed bidding war' getting buyers to even bid against themselves. This scenario of many offers per property only hurts the sales agents - and discourages buyers (since so few offers are accepted). I'm hearing stories of qualified buyers giving up (and that means agents lose a client that would otherwise buy, too).

The seminar promoters have benefitted, also, selling "short sale" and "REO" courses to agents, I see.
0 votes
Damon Bottic…, Agent, Las Vegas, NV
Thu Oct 8, 2009
A cop pulls over a lady for speeding on the 215 in Las Vegas.

He walks up to the drivers window and asks...

"Let me see your insurance card and Real Estate License."

The driver answers, "How did you know I have a real estate license? Don't you mean my drivers license?"

The cop answers, "Not everybody in this town has a drivers license!"


It's got to be about what you love to do and where you want to live. It will take passion for the business, motivation and an eagerness to learn to be successful in this business. If your friend wants to be successful, she can. It is a tough market to jump into, so she'll probably want to find a team or mentor or situation where she will be surrounded by knowledgeable people to learn from.

You mentioned that you told your friend, "she would also be better off in another market". I don't know if that is or isn't true, but whatever market you go into, you've got to like living there and have long term plans to stay. Plan on spending 1-2 years to get to know your market if you're starting out and have AT LEAST 6 months of reserves saved to cover your costs and living expenses.
0 votes
Brett, Home Buyer, Las Vegas, NV
Thu Oct 8, 2009
Isn't it very time consuming to make so many offers on REOs for buyers - and have such a small percentage of them actually close?

what I see is brokers with lots of REOs having 60 plus agents using their shoe leather running around on their time and gas to show these properties over and over in order to get them sold. Costs the broker very little compared to all the agents' time collectively. It must be nice having all those sales agents doing the legwork, etc..

That is why I suggested to her that she consider her options insofar as regions, if she wants to be an agent. Maybe I'm wrong, and I hope see gets a wider perspective from these answers.
0 votes
Penny O'Brien, Agent, Las Vegas, NV
Thu Oct 8, 2009
Hello Brett,

Honest opinion is what I'm all about. Depending on what your friend is looking for. If she is looking for a 8-5 job and no nights, weekends or holidays off then perhaps Real Estate won't be her cup of tea. Every single SUCCESSFUL agent works long and hard hours. It's the nature of the beast. When agents recieve a call if you don't take care of that call that possible client will move on to the next agent until someone answers and helps them.

I love selling RE and have been for over 10 years-- full-time. I'm not trying to sound like RE isn't for your friend. Frankly, in NV you don't have to be a rocket scientist to become a Realtor. Other states have stricker requirements. RE has it's days. It 's either feast or famine for most agents. It's a rewarding career for me. I truly love helping people with their RE needs. Some people get into the business because they see these big dollar signs. Yes, you can make a lot of money in RE or not. You can work really hard in this business and have a deal fall though.

If your friend has a day job I would advice her to keep it and start out slow. The most important advice i can give her is to get with a good company that will give her extensive training. If I didn't start out at the company I began with I would not have the knowledge I have today. It's absolutely necessary.

Hope my opinion was useful. Have a wonderful day. Penny O'Brien
0 votes
Andrea Packo, Agent, Las Vegas, NV
Thu Oct 8, 2009
Dear Brett

This is an excellent time to be an agent in Las Vegas. Our sales are up to well over the number we had in even 2005 at the height of the buying frenzy. Almost every REO listing receives lots of offers and Short Sales are beginning to be accepted as well. (Our office has several teams handling Short Sales. ) We are busy and the prices are starting to go back up with the multiple offer situations. Please feel free to have your friend contact me and I'll put them in touch with my broker who's willing to sit and speak with them at length.

Thanks
Andrea Packo
Keller Williams, the Marketplace 1
Las Vegas
702-279-7679
Web Reference:  http://www.andreapacko.com
0 votes
Anna Lee Tri…, , Houston, AK
Thu Oct 8, 2009
Real Estate is a unique opportunity. I believe that even if the market is slow in certain areas, (but not in my hometown of Houston!) I believe that this is still a good time to enter into the real estate market. This gives the new agent sufficient time to do research, get familiar with the whole aspect of real estate, follow top producers, do open houses, get training, etc. Even though real estate is expensive to maintain, dues, fees, training, if you can jump on it, there are still some sellers and buyers that are buying and selling so I would go for it! When I started in real estate, it was a very busy season and I did not learn enought because I was so busy, but I feel that this is the best time to get into real estate because overall, there are many new rules, there are many programs for first time buyers and seminars that can be attended by new agents so that once it starts getting busier, the new agents will be ready to roll! I say, go for it! Go to the office everyday, be consistent, learn all you can, pass out your business cards to all your friends and relatives, go on to Facebooks, Twitter, etc. and let everyone know you are a realtor and would love their referrals. Take a chance!
0 votes
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