Why some realtors make it and why some don't?

Asked by gabriel palotas, Pompano Beach, FL Thu Sep 29, 2011

I am more interested to hear from ones that failed but know why. So fess up and mess up.

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Answers

44
Dorene Slavi…, Agent, Torrance, CA
Fri Sep 30, 2011
BEST ANSWER
Dear Gabriel,

In my opinion not everyone is prepared for the expense, frustration,competition,discouragement, and just all around hard work that is involved in starting your own business. This aspect could be called a failure to properly educate the prospective agent about what to expect.

Some offices offer little in the way of support to new agents, and this can be very discouraging as well. Quite a bit of this business is hands-on so a new agent will need an experienced helpful mentor in order to succeed. This is a failure to support and encourage.
1 vote
Mack McCoy, Agent, Seattle, WA
Sat Oct 1, 2011
Sales are down by half, values are down by 30%, there's basically been a 2/3ds drop in commissions over the past few years.

Given that some agents weren't making it during the good times, it's no surprise that many aren't making it today.

So the first and most important reason is that there's not enough business to go around.

The second reason is that most agents aren't all that good at sales and prospecting to begin with. Many of the best and most successful agents see themselves as "service providers," rather than sales people, and this is a side of real estate brokerage that I think ultimately benefits the public.

However - like it or not, we are in the Sales Profession. Our license says "Salesperson" or "Broker," it doesn't say, "Consultant" or "Friend In The Business" or "Marketing Specialist."

And if you deny the sales aspect, you also tend to deny the necessity to Prospect, which is the competitive nature of any sales profession. It's the part of the work day when you are out hustling for business, especially when it is not coming to you.

Yes, for some of us, real estate is like having a retail store - people come to us. Our phones ring, we stay in business, we're successful.

The rest of us, we have to go out and make it happen. And many of us don't like it, and won't do what it takes to go out and drum business up.

We won't go out and visit FSBOs, or call expireds, or door-knock, and we have good reasons for not wanting to do so, but at the end of the day, agents who do that keep their chances of staying in real estate alive, and those who don't . . .

It's not just real estate. It's people who get into insurance, stock brokerage, web design - there are a lot of fields that people get into because they like the product, believe in the product or service, and want to provide it to the public, but they just won't do what it takes to make the business prosper, which is, to prospect.

Of course, there's not enough business for everyone who has washed out. But to any ONE person who washed out, I bet there was enough business for YOU if you were willing to go out and get it.
4 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Mon Oct 3, 2011
I would agree that age has little to do with success, however the ability to adapt does. The younger generation is more likely to have the ability to adapt because that's what they have learned to know.

The younger generation will listen for what to do, and do just that. This is why I made the statement that we receive opposition from those who wonder what the younger generation is doing.

Quality vs. Speed is no longer a debate because many of us are able to provide both. Just because I meet someone and am sitting with them at a closing table less than 15 days later doesn't mean I provided them any less of a service. I would bet that I know most of my clients that I have known less than 3 years better than most Realtors know clients they have had for 3 years.

I would argue that consumer demand has changed. If you can't show me all 20 homes I've found to make my own list in the next 48 hours, I'll find someone who will. That's where you need to be savvy to not only agree to what they want, but add other homes as you go along, finding out what they really like. Before they know it, home number 9 is one you suggested and they decide not to look at any more.

You want a prequal? I'll email the next Realtor. You don't have time today? I'll email the next Realtor. This is a sales job, whether a Realtor realizes it or not. You have to be quick on your feet, and be able to adapt. In the end most people want the same thing, which makes this job easy.

If a Realtor says no to email or fax, I relay that to the client and let them decide on what to do. Most decide to move on because there is a lot to choose from and they are not as patient... not because of anyone's fault but because of the luxury that today's technology has given us.

I'm ending with this: Garbage in is no longer garbage out. Today we recycle and a salesperson needs to understand that.
2 votes
Joan Braunsc…, , Morris County, NJ
Sun Oct 2, 2011
Gabe, I know you and Mack have frequently butted heads, especially over so-called political stuff on the never-ending Obama thread, but please try to keep it civil.

I don't always agree with Mack but sometimes he has a point (or 2) and there is no reason to start hurling insults or bring your politial differences over here.

Just sayin'
2 votes
Mack McCoy, Agent, Seattle, WA
Sat Oct 1, 2011
- Lame excuse Mack

Oh. Sorry. I thought you were interested in actual facts. Silly me.
2 votes
Joan Braunsc…, , Morris County, NJ
Fri Sep 30, 2011
Ahhhh....if only I could be near beaches and palm trees and no more snow. In another life I am coming back as a beach bum. Maybe sell beach huts to make a living. Unfortunately I am currently stuck here in NJ.

I work the rental market and any other market I can. My office is doing great but most of them have far more experience than I do and have built up their referrals. Right now I really just need a dependable paycheck, dependable hours and a job that I don't have to take home with me.

I honestly feel that RE will always be in my blood though so I will consider this a temporary hiatus, even if it is just to make myself feel better about the reality of what I have to do.
2 votes
Auctionking, Both Buyer And Seller, Florida
Mon Oct 3, 2011
Good points Annette,

Gabe is using a bit of humor to emphasize one important point retention. If brokers are loosing agents left and right they need to do more than depend on lady luck to turn the business around.
The broker like a captain of a ship sets not only direction but safe course and ideas that not only protect his intersts alone but of his agency. When a broker is lacking creativity, finacial strength to survive trubled waters he goes down with a sinking ship taking with him his crew.
The lesson of survival of the fittest does not promote an industry where the weakest link is the agent.
Some took comfort in the beginning when only a few homes were lost to foreclosures. but look where we are now. Loosing some agents and closing down offices gives comfort for those that are still praticing their craft.
Unfortunately unless you understand that will not protect yours in the future if you dont do something about it today. The biggest reason those agents and offices failed because they could not beleive that it could happen to them. This forum is probably more useful for those that are in business not as a relief but as a warning.
This market is not a quick fix. In my oppinion it may take another five years before we see some real recovery.
For many realtors as owners real estate will never ever be the same. Unless you accept that fact and continue doing business as usual. Good luck. As far as I am concerned I do whatever I need to survive. The first rule is adapt to change before the whole industry goes under as we new it..
1 vote
Annette Law…, Agent, Palm Harbor, FL
Mon Oct 3, 2011
Gabriel, in your 9:40 post you hit upon the most exciting aspect of where we find ourselves today. Old timers will need to develop new tools, newbies will see the opportunities differently. All of us together, working with a plethora of investors, will prove to be America's most vital workforce. It is those in the real estate profession who will connect the resources and tools together to get real estate sold, jobs created and recovery back on tract. There is no other beacon of hope visible on the horizon that I see.

Those who struggle today only need to step back and review the questions citizens are posting to understand where the low-hanging fruit is. Agents without a plan that is producing results need only consider these two needs that appear time after time right here on Trulia. They are:
1. I'm cash rich, credit poor. "How can I buy a home?"
2. How can you help me buy and stay in a home?

The solutions to these problems will play anywhere, however, the professional needs to develop the resources and plug them into the situation. Overwhelmingly, agents say, "I Don't Wanna Do That' and as each decision stacks upon the previous, the sun sets on their career.

This is an incredibly exciting time to be in real estate. What you see as chaos is simply an overdue thinning of the flock. Flock members able to change will survive. Those who don't survive make room for the visionaries who are not encumbered with relic thinking that no longer applies today.

A very appropriate commercial was on TV last eve, titled accidental investing. It symbolizes appropriately many real estate agents business plan... accidental real estate....or as Mack says. "Rain."

Luck is always an invited guest but unfortunately she is very unpredictable.
1 vote
Scott Hulen, , 64068
Sun Oct 2, 2011
I can’t leave this one alone; ok top 6 reasons agents in my market are doing well:
1) Great long term business model, they has focused on past clients kept in touch, asked for referrals ( this agent has been in the game 10+ years, still seeing a downturn but is active and in the game)
2) REO agents, they saw the down turn coming and were prepared with this type of business model (kicking butt and taking names)
3) Agents with the inside track, have their own subdivision to market since the family member is the builder in the subdivision (spoon feeding is always good)
4) Agents with a key relationship with a relocation firm
5) Agents who have a key relationship with a large mortgage broker such as a Wells Fargo or Bank of America and are feeding them leads (this is a back and forth you refer, I refer)
6) Agents who have a relationship with an investor who contributes 5+ transactions per year
Things brokers tell us to do but are they really effective?
1) Board duty
2) Floor duty
3) Open houses
My point is this; unless you have been in the game a long time (see#1) you need a relationship with someone who can give you the leads you need to be successful. It’s not raining clients like it has in the past where anyone could have some success at being an agent. Again I state there are way too many agents. My suggestion to “fix it” add a 2500.00 licensing fee that has to be paid by the agent each year to the state or states in which they are licensed, this will dramatically thin the herd and make the industry healthier in the long run.
1 vote
Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
JOAN! HE STARTED IT! (Thank you!)

Joan, there's room for all sorts of business models, but they have to be profitable enough to pursue. I know that I can't convince an agent who thinks they can earn $100,000 a year doing things the traditional way to come work for me at $75,000 guaranteed, and I wouldn't want to hire somebody who can only do $50,000 a year and pay them $75,000.

There are companies that hire agents at a flat salary and a "performance-based" bonus, we have a large one here in Seattle, and, frankly, I'm not a fan. You know that phrase, "you don't know what you don't know?" In spades.

Real estate is a funny business. On the one hand, the FTC is worried that we're some sort of cartel; on the other hand, we are really an assemblage of around one million independent contractors independently competing for business in our local markets. I'd hate to see real estate become Wal-Mart-ized, where we're all working For The Man.

In more prosperous times, agents that can do "good business" without the unpleasantries of "prospecting" will return to the marketplace, and that will be a benefit to consumers. But when times are tough, only the tough (or the well-connected) are going to get the clients to put transactions together. And some of those clients will not be as well-served as they would have been with gentler agents representing them.
1 vote
Joan Braunsc…, , Morris County, NJ
Sun Oct 2, 2011
Nobody is fired from their real estate business. Hmmm....I'd say that part of the issue right there because there isn't one of us who doesn't know or at least heard of an agent who deserves to be. But mediocrity is tolerated in this business. I'd say that this is the brokers' responsibility because if brokers don't allow for mediocrity and some of the other nonsense that some agents seem to think is acceptable in order to get money in their pocket, this profession wouldn't have some of the public perception issues that it does.

I know that some of you seem to think that there isn't a public perception problem, that it is somehow all created by lil ol' me as has been pointed out by some (in a not particularly nice way) on my blog on the negative perceptions regarding this industry but you're just burying your heads in the sand.

We all know that the most successful agents aren't necessarily the best ones, and visa versa.

That being said, I'm not making excuses. Part of my inability to make a decent living in this business has to do with discomfort in selling myself, knocking on doors and cold calling. As I stated, I consider myself good at the service part of the industry but truly suck at selling myself. I am tenacious when it comes to my clients and customers and will absolutely put their interests ahead of my own, when it comes down to it. Not in a ridiculous way, just in a common sense, these people need to trust with utter confidence that I am looking out for their best interests, way. Unfortunately for me, it hasn't been enough.
1 vote
Scott Hulen, , 64068
Sun Oct 2, 2011
Ok here’s a different take, I see many brokers have chimed in on this issue and I’m going to speak to my market because that is what I am most familiar with. If I was going to open my own business let’s say a new car plant I would have a business plan which includes the number of people I would need to hire in order to build the new car. I hire 10000 “skilled” employees but the business plan I wrote says I only need 2500 why did I do this? (No not another Obama stimulus program) This business is designed for Failure from the start! Part of the problem is brokers / owners have a different business model than agents, they see revenue from office/desk fees, coffee fees, broker administrative fees and any other fees they can dream up. They do care that their agents do well but that is generally not their first priority none of them can walk away from 12k in yearly fees ITS THEIR BUSINESS MODEL! Basically what I’m saying is, this area of the economy suffers from over employment and it is self-correcting if left uninfluenced by other factors such as the dream of riches and glory to own your own business as spouted by brokers near and far. I know not every area of the country is this way, but in my market we have a brokerage (largest in the city thousands of agents) which specializes in 2-3 transaction per year agents on a low split, no fee system which continues to crank out agents like a puppy mill and is owned by one of the wealthiest and most influential Americans, Warren Buffet.
1 vote
Christopher…, Agent, Methuen, MA
Sun Oct 2, 2011
I think it is the same reason that any businesses fails. You need to treat real estate as a business. You need a business plan. Many agents don't have a business plan though.

Everyone knows the old cliche' "if you fail to plan, you plan to fail," but not a lot of people follow it.

Scott has a good point about many agents starting out fail because they don't have enough start up capital. Same is true for any other business. A business has operating costs. If there isn't enough capital to operate the business fails. In this day and age if your expenses are too high that is another issue.

There are many different ways to make money in real estate. Which ways are you focused on? I have a plan and I am working hard to execute my plan. Having a business plan is only the first step. Following it is the second step.

Real estate is a very competitive business. If you are exactly like everyone else especially as a newer agent, your chances of competing against agents that have been in the business for 25 years will be very low.

I could go on and on...

Summary:

1) Have a business plan
2) Follow your business plan
3) Adjust your plan when necessary for things that are not working and capitalize on things that are working
4) Be different than everyone else. Find a niche.
5) Track your progress (sales, profitability)
6) Be consistent. It is really easy if you work from home or in your own office to goof off. After all, you are the boss. You and your family are the only ones that will be disappointed if you fail.
Web Reference:  http://teamlefebvre.net
1 vote
Annette Law…, Agent, Palm Harbor, FL
Sun Oct 2, 2011
Mack correctly observed and stated:
"We won't go out and visit FSBOs, or call expireds, or door-knock, and we have good reasons for not wanting to do so, but at the end of the day, agents who do that keep their chances of staying in real estate alive, and those who don't . . "

Gabriel, clearly, by your responses to some comments, you are only seeking responses from your choir. What a shame.

Just to make a point, NOBODY IS FIRED FROM THEIR REAL ESTATE BUSINESS!
Those who leave, self-eliminate. They eliminate themselves from being active or influential in their local real estate market, 'One decision at a time."

I refer to this as the "I Don't Wanna Do That" syndrome. One decision at a time real estate professionals fail to stay in touch with what today's home buyers and sellers are needing. One decision at a time real estate professionals make decisions to avoid being where they will encounter buyers and sellers.

Our increasing reliance on our very comprehensive technologies make us prone to a fatal disease I like to call, "Loss of Memory of Skin." One decision at a time we convince ourselves we do not need to know how to interact with real people, you know what those are,,,,the one's with skin. Interaction is less important because we can always go chat on Trulia. One decision at a time IDWDT will change the trajectory of your business until there is no business. The longer your IDWDT list; the more spectacular the final scene.

Commandment #1 - There is no one to blame. Your world, your relationships, your community, your business, your universe is all about you! We need to understand there is no "outside" or 'other influences." Our world, with its success or lack of it, is exactly how we made it. There is no one to blame.
1 vote
Scott Godzyk, Agent, Manchester, NH
Sat Oct 1, 2011
The agents i see that have failed were that they did not have the resources to start out properly. The first 60-90 days for most theer is no income. You need to have the money to be able to join the Realtors, Join MLS, get a computer, supplies, ads and marketing material.

For seasoned agents this is a full time business. if you are not available full time than the odds are you may not make it.

To suceed you need to be better than everyone else, work harder and smarter. You cant sit back and woat for business to come to you, you have to go and get it.
Web Reference:  http://www.ScottSellsNH.com
1 vote
allan erps,A…, Agent, Pearl River, NY
Fri Sep 30, 2011
Guess that is me, cheap and free. Get the point Gabriel but the only way your theory could see the light is probably unionization and doubt that is about to happen. Minimum wage, draw against commission(car salesman) maybe.
1 vote
allan erps,A…, Agent, Pearl River, NY
Fri Sep 30, 2011
Speaking from my own observations. The so called failed Realtors® are generally working this as part timers ,do not give the business enough time to grow or think sales will just come to them. Building a business based on referrals(doing a full service job) is important. Just to be honest I worked two jobs(Real Estate was considered the Part Time one) for about 10 years. The truth is I was always willing to take people out on weekends and nights(even in the winter). My thoughts were to work harder than the other Agents and was always in the top 5-10 Agents in my office of 60-75. Never short change your clients, grab a partner if you cannot handle the workload and do not wait around for the phone to ring!
1 vote
Joan Braunsc…, , Morris County, NJ
Thu Sep 29, 2011
Okay Gabe, I'll bite. Since personal circumstances have led to the necessity for a paycheck that I know will be there on a regular basis, my attempt to make RE a full time job is coming to an end. I will most likely be going into referral sometime in the next month or two, unless something miraculous happens. I would love to be able to do this part time but I really don't consider it a part time business.

I've only been in this business for about 2 1/2 years but since starting the business I had a whole bunch of stuff thrown at me in my personal life and I just couldn't gain traction. As any decent RE knows, this business takes a lot of focus, a lot of energy (both emotional and physical) and time. I had so much other stuff to deal with (and am still dealing with) that my focus was totally scattered.

I love this business and would like to try it again sometime perhaps when things are a bit more stable in my life and I can give the time and energy to it that buyers and sellers deserve. I feel confident about my ability to do a great job for the people who hire me but I frankly suck at marketing myself. I don't have one "bs"ing bone in my body, abhor the stereotypical salesperson type of personality that is often associated with this business and have a hard time with the idea of bringing up the fact that I am an REA with everyone I meet- I don't like the idea that people may think that my only interest in them is to get their business. I have seen too many agents who are shameless about this and it repulses me.

Anyway, there you go. I pretty much just laid it all on the line for anyone who cares to read this. I get emotional about the idea of leaving RE and getting a "regular" job but I have to admit there will be tremendous comfort if I can actually find a job where I get a regular paycheck and have regular hours.
1 vote
gabriel palo…, Agent, Pompano Beach, FL
Tue Oct 4, 2011
Welcome Timothy real estate could be the a difficult business more so than many suspect or expect.But the greatest difficulty of the trade is the unpredictability and longevity of a work force that is not recognized as such. With little or no protection or safety building a future on financial stability structured within the system.
Naturally some are more fortunate and think in those directions when they are fortunate enough to make money in good times and invest it well.
As someone that has been fortunate in that area I am urging and hoping that we should deal with that question and make this industry as difficult as it is safer and more protective of it’s members/ Awareness and education is a good start but do you think t we could do more. Failure is only a result of a bigger picture that we ignore to take notice of when the no time is better than now. How could we bring that about? any ideas
0 votes
Timothy Garr…, Agent, Philadelphia, PA
Tue Oct 4, 2011
Honestly, I think it has to do with motivation and strategy.

If you think the leads will just come to you (especially in this market), think again. It takes hard work and planning to get people to contact you for real estate services.

Also, it's good to have a business plan in place. How much business do you want to close this year? How much money would you like to make? Where will your focus be (buyers, sellers, etc.)? Where would you like your business to be in 5 years?

Real estate is one of the hardest businesses to make it in over the long term. In order to make it your career, you have to plan for it.

TG
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Tue Oct 4, 2011
I have been a member of a regional board in good standing for over 25 years. Many agents to save money decide not to . What is your take is that a mistake or am I a fool that I keep paying those ever increasing dues?
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Tue Oct 4, 2011
One specific aspect or component of failure with many associates is the instant taste of success that comes with the ease of a some deals and the big commission checks it delivers. Warning you have just entered the feast and famine zone. Getting up at six in the morning seems such a bore. Skipping work and relaxing for a few weeks seem normal and so rewarding. Until the money runs out and getting back to work is an uphill battle.
I’ve been there. Before you start believing your own promotions and read giant billboards telling the world that you are a multi million dollar producer check if you have enough money to spend on putting gas into your big Lexus. Just another failure that can be avoided going bust between deals. Save save save and oh yes since you are a realtor what better way than to invest into some income producing properties. In time when most have only their fancy cars to remind them of the good old days. Those little investments go a long way. What do you think?
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Tue Oct 4, 2011
Excellent points Kevin. There is unmeasured talent in the young in every aspect and in every industry.Their innovations and technical skills have revolutionized and changed how we do business in real estate.
There is an argument that the longer one is in any field provides them an edge in experience. I have never been a supporter of that theory. I believe it is the hunger and ambition in our business like in most that makes the difference. I have often said the harder one works the luckier they get. Most people that join into our industry bring with them experiences and knowledge from unrelated trades but can be applied to real estate. One of them is organizational and communicative skills. The question I often ask is do we spend too much time with our innovations and our gadgets than the pursuit of just performing our business? I have spent countless hours over directions and programs that when they go on the glitch my whole world turns upside down. How much time should we devote to seminars, and to new gadgets than just concentrating on a daily schedules that need to be performed? Oh yes just one more thing I have noticed that with all the gadgets agents that show up late for appointments seem to forget that a text message or a phone call does not take innovation but just an effort or curtesy. Do you all think that is a probable cause for failure? I do.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Mon Oct 3, 2011
Kevin,

We're a bit younger, and yet when we are asked what we do differently?



“A broker looks at an agent as a cost and wants the worker agent to generate a value that exceeds that cost,"
Age has little to do with success but performance does. We older folks make frequent pit stops and are allergic to computers but we are catching up and learned that garbage in is garbage out.

Lack of patience more than with any other generation, t describes the now generation. They are accustomed to instant results and if it does not happen for them right now they give up and ready to walk away to start something new .it is important to have reasonable expectations of how long a project or task will take. i get them pretty riled up when it is my turn in the John.
"It's more of a quality versus speed argument. A job worth doing, is worth doing well.”

How do young people view us old fogies a curse, a threat or just one sandwich short of a picnic basket?
I remember better days when a contract was presented by buyer’s rep sitting around the kitchen table that human touch those bursts of emotions were priceless. I was threatened multiple times and came near of being thrown out by my ears . You had to really know how to negotiate and end the night on good note. We all signed and became blood brothers.
I still push the envelop today when the listing agent wants me to fax or e mail the contract. I protest and throw a sissy fit so that I can present it in person.
I think lot of deals fell to the side just because of the insensitivity of how blandly it is presented. Do you agree or disagree?
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Mon Oct 3, 2011
As a fan of the movies early in my career I learned that realtors were associated to snakes and low lives. I have for that reason moved into high floor condo to live with the birds. Now when the elevator goes out I think of my ancestors and understand their wisdom of location location location.

Reeltors?
Movies about real estate brokerage have always been popular. Glengarry Glen Ross is an obvious example. A great film, despite typical Mamet language (leave the kids at home) and an overly bleak view of the profession. My personal fav- orite real estate brokerage movie is The Stepfather. Jerry Blake (played by Terry O’Quinn) is a homicidal maniac who also happens to sell real estate. When- ever his family of the moment deviates from his idea of perfection, Jerry goes
a little berserk. I watch this one every Christmas – its good for instilling family discipline.
In the Marx Brothers’ The Coconuts, Groucho demonstrates the art of real estate brokerage in Florida, with Chico
as his shill in running the only auction in history more hilarious than those run by the Resolution Trust Corporation. Another Marx Brothers movie with a real estate theme is A Day at the Races. If Maureen O’Hara does not pay her property taxes on time, she will lose her family’s sanitarium. Enter Dr. Hugo Quackenbush (Groucho) and friends to save the day, after a fashion. See also It’s A Gift, with W. C. Fields discovering the pitfalls of buying a California orange grove through the mail.
Not to whine, but why are real estate professionals so often the “heavies” on screen, even giving Father Bing a hard time in Bells of St. Mary’s and Going My Way (even lawyers are sometimes portrayed sympathetically)? Let’s face it, real estate people, especially brokers – like college professors – rarely get their due in the movies. Any real estate broker not portrayed as a heavy is shown doing something really stupid. Consider Joan Collins’s real estate agent character,
who takes potential buyers to an island about to be the site of a nuclear test. The subsequent atomic mutations turn the island into the Empire of the Ants.
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Mon Oct 3, 2011
Why a few Realtors make it and most don't.

We're a bit younger, and yet when we are asked what we do differently to close deals we find opposition.

I won't do that, I never did that before, that's not a Realtor's job... etc.

"I won't" "I never" "That's not"... those words never lead to success.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Mon Oct 3, 2011
Auction king where did you get the idea that Gabe is using a bit of humor. More like satire: a literary term used to ridicule or make fun of human vice or weakness, often with the intent of correcting, or changing, the subject of the satiric attack.

Stocks may rise and fall. Utilities and transportation systems may collapse. People are no damn good. But they will always need land, and they will pay through the nose to get it.”
– Developer and evil genius Lex Luthor
0 votes
Mack McCoy, Agent, Seattle, WA
Mon Oct 3, 2011
- Overwhelmingly, agents say, "I Don't Wanna Do That' and as each decision stacks upon the previous, the sun sets on their career.

It's true in any fun business, by the way. Theatre, performing arts, same thing. "I'd love to be on the stage, but I don't want to play a gangster, I don't want to have to beg for tryouts, I don't want to have to play -that kind- of music, I don't want to have to sell tickets . . . " OK, fine - there's always somebody else that will.

That's what we're seeing in real estate today. But I can't emphasize strongly enough how this is not good for the consumer. Many consumers benefit from and need agents that are not aggressive on their own behalf, but can be aggressive for others. I've met many of these agents, and they do add value to the transaction. Some people need a cause to fight for, I suppose.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
http://www.moneysmartsblog.com/why-you-cant-trust-real-estat…


The reason most agent don’t make it is that they think that what they learned in school works in real life.
So the first lesson grow a thicker skin.
Appreciate insults , you have made an impression.
Learn to say thank you and I work for a living in 29 languages.
Never say that you are experienced that could work against you,
Learn to drive slowly except when you come drive by a FISBO sign
Always carry one business card and say I have one left just for you had a busy morning.
Never Never say this is my favorite house. They will ask why you have not bought it.
Never drive an expensive car the more banged up the better. You don’t want to embarrass your clients the cars they drive. Let them feel sorry for you.
Dress neatly make sure your suit is well pressed the shinier the better double breasted dated suits are preferred. A great colorful tie is necessary to be identified the first time you meet your clients. Shoes should have a slight squeak to give clients an early warning when you are around so they could stop talking behind your back.
Avoid eating for a couple of days before showing property it will assure a gurgling stomach and guaranteed free lunch. Be sure to take big bites and chew slowly great way to let them know you enjoy to eat and celebrate the occasion.
Never fall for trick question like do you have a favorite restaurant? Say yes I celebrated my anniversary at our favorite restaurant Burger King.
I am working on a few more gems that will be helpful for you nubees to be superstars.


Conclusion
Why You Can’t Trust Real Estate Agents When Buying A House

The more you educate yourself about the real estate market you are looking in and how real estate agents operate, the better off you will be when buying a house. Real estate agents are quite useful because they can get you access to houses for sale and will often drive you around to look at them plus they have access to the sale price of other houses. Whatever you do, never forget that they get paid when the deal gets done and only then. They don’t get paid for showing you more houses or walking away from close deals.

Web Reference: http://www.moneysmartsblog.com/why-you-cant-trust-real-...
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
Mack
if it looks comprehensive to you than I must object.


Just kidding Joan it was Scott we agreed with not with each other. We get big bucks from Trulia to be nasty to each other, easiest assignment I ever had But I stick to the topic I fess up when I mess up. I love real estate on rainy days we will be visiting you on your next open house and taking notes.
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Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
Scott, I think that is a comprehensive list!
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gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
Ok Joan,

I promise not to blame Obama but it feels so good to butt heads with Mack. We abuse each other wherever we can on any and all topics for your amusement and pleasure so you can agree with one or with the other. If it was any different it would be a one sided blog. We like to stir it up and get you involved.
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Joan Braunsc…, , Morris County, NJ
Sun Oct 2, 2011
To you brokers out there, what do you think of this rough sketch business model:

Brokers pay their carefully handpicked agents a minimum regular salary. Then agents get a flat fee commission for every transaction. I like this idea because success is still tied to production and sellers (and the buyers who hand over the proceeds for the sale) would benefit from perhaps not paying some of the exorbitant (at least in this terrible market) commissions that some are paying, especially on the higher end propeties.
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gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
The world is not flat Mack. Nor is our industry a lake. That is jus another limitation and observation of your narrow minded approach to defend your argument and accept what s. We often butt heads on issues where you claim you are as you describe yourself as Liberal or Progressive . No, I consider you to be nothing of the sort you are an obstructionist for progress.
As one that got to know you over the years you profess to side with the working man and hate the wealthy and their success. But we both know the truth. You want this chaos to continue because you profit from it . Why would I be surprised that the very government that you support thinks exactly like you do. Do nothing. Yet raising the taxes on the middle class and on the rich is you're only solution. When it comes to creating jobs that pay for it that t becomes an other matter, A do nothing system where foreclosures and the growing number of the jobless is "your lake”as the supply for limitation for those that need to survive.
Yes there are people with answers how to stop foreclosures, yes there are people with answers to create jobs.
Yes there are people that can take failed businesses and turn them around.
But for people like you Mack it is better to be a reactionary counterproductive and divisive because it promotes you need of socialism and total dependency on government.
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
- Just to make a point, NOBODY IS FIRED FROM THEIR REAL ESTATE BUSINESS!
Those who leave, self-eliminate. They eliminate themselves from being active or influential in their local real estate market, 'One decision at a time."

Thanks, Annette!

Real estate sales has been an easy sideline for a lot of people over the years. People could simply attend neighborhood social functions and pick up enough transactions to keep them going. New agents could pick up enough business from floor and open houses to keep going.

A LOT of agents have decided that, if business won't come to them, they'll go out of business, and that's their right. Some agents have adapted, and some are doing just fine doing what they've always done.

- I think differently eighty percent of the industry does not need to go hungry if they knew only knew how the other 20 % succeeded.

Well, you think wrong.

Regardless of what anyone wants to believe, there's not enough business for everybody who wants to be in real estate. But there is enough business for any agent that wants to go out and get it.

That's a profound difference. Real estate agents used to stay in business because transactions essentially rained down upon them. That's not happening so much now. Those whose business model depended on rain are pretty much out of business. Those who are willing to go down to the lake and get their own water can succeed, but if everybody got smart and went down to the lake, it would soon run dry, too.

All the best,
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gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
Different take is always good. The ability to change and how to improve our industry is what i am trying to accomplish with your help.
I vision our industry to do better not only for only a limited number of the select few but for far beyond past membership and I welcome as many to come aboard for there is room to grow. Our real Estate Industry needs to be more than a hit or miss numbers game.
Within the vital human needs for air, water,food is shelter as there is a vital need for jobs. Our industry is one of those that offer to that vital need I see our industry not as a "membership only club",or a career for millionaires only . I see it as a reliable steady job opportunity for millions of Americans. I see it in a different light where the need benefits offered to other steady jobs are also included in the process to provide balance in good and bad times. Planning retirement not from one deal to the next but in a course of a reliable income source.
From a change to tax perspective and job description being labeled and categorized as independent contractors. We are a part of a work force that need to be recognized , reorganized better represented than we are today. If this does rub you the wrong way sorry someone needs to say it an I just have. This all can be done without unions, or useless board memberships in a capitalist system where the freedom to compete creates the difference in income to those that apply the same principles to their work as in any other field being creative or industrious. The results of the success of a few free thinkers could be the success for many.
No one is asking to reinvent the wheel but how about improving it.
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gabriel palo…, Agent, Pompano Beach, FL
Sun Oct 2, 2011
Annette,
Chaos is not an excuse it is an opportunity. Sorry my question is not looking for excuses. For many people across the nation Hurricanes, Forrest Fires, Floods, Tornadoes are job opportunities.
I understand that it is a horrific and devastating human catastrophe and the best preparation is not enough.
I agree in Chris’s analysis that every business needs a plan.However realtors fail not because of the lack of it.
Our business is more structured and regimented than most. In times like today when the table tuns upside down you see the result. Some realtors do prevail and do better in times like today than under normal circumstances.
It is called thinking on your feet and finding opportunities where others do not. Yes you are right my question deals with people that make it. That is positive. You just go ahead taking comfort in people that fail and point out that there is less commissions to be made because values are down by 30 % for that is an easier excuse than for finding the reason how to succeed. When i go to the cemetery people ask how many people are dead here. I know the proper answer everyone. I make a correction I am not one of them. I understand the eighty twenty rule that has made many franchise real estate businesses concentrate only on the twenty percent of the industry for they are considered the cream of the crop. I think differently eighty percent of the industry does not need to go hungry if they knew only knew how the other 20 % succeeded. Industry leaders brokers are supposed to be educators.
In business you want to increase productivity you do that by multiplying success rather than separating it not just just skim the top and throw out the rest. I see value in failure. It is the greatest motivator for success.
I see it as a natural instinct like hunger. Feeding it with positive ideas rather than taking comfort and accepting what is wrong and doing nothing about it. All the statistics aside which we are inundated with and showing the malaise in our industry . Instead look at the number of agents that get up every morning and still make a living with it. Some will look at and talk about how much less they are making and why . I focus on those that are making a living and why.That is more inspiring and improves our industry not blames it.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sun Oct 2, 2011
LOOK FOR EXCUSES!
If you read my earlier response you should realize all excuses have been removed!
Success or failure is solely dependent on the individual.. the decisions they make.

Wind, rain or gloom of night never appeared in my commentary in any way, nor will you find any excuses. What you will read is accountability. There's no one to blame.

Gabriel, you write in your response below, "You just go ahead taking comfort in people that fail for that is an easier excuse than for finding the reason to succeed." Where, oh where, do you see this in anything written before?

What you will find is commentary saying agents limit their ability to adapt to the new reality due to limitations they inadvertently place on themselves and their business. Those who succeed realize they have to do business differently. Those things on the IDWDT list have been exposed and eliminated. They realize the world has changed and if they don't want to self-eliminate, they need to change their business accordingly.

How one succeeds is as diversified as the stars in the sky. That's why real estate is so attractive, there are many, many choices. Agents thrive when they go to the well of wisdom and pull up more fresh water than dry bones. Brokers can play a significant role if they choose, but they too often have a completely different set of goals that may not align with the success of agents.

Somewhere along the line someone needs to reveal, (again, no excuses but total accountability) success is, and has always been, the outcome of ones commitment and passion for what they do. Everything else are cup-holders in the vessel in which they journey. There is no one to blame. No excuses. Total accountability.
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gabriel palo…, Agent, Pompano Beach, FL
Sat Oct 1, 2011
Scott,

I always admire with your sharp analysis and answers to most of the questions asked on trulia. Your answers are crisp and straight to the point.
Let me ask you one question that may answer some of those agents that have failed why you have survived?

Are you doing business today as you did ten years ago? Or have you adapted yourself to this market and changed ? Was it difficult?
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Sat Oct 1, 2011
Sales are down by half, values are down by 30%, there's basically been a 2/3ds drop in commissions over the past few years.
Lame excuse Mack


The name of the game is stay in business no matter what. From many successful agents chaos of todays market is making them wealthier than any time before. While many are wondering how ? They just roll with the punches and the objections and play on the right side of the market that pays and flourishes.

My question is for those that have failed and still don’t know why. What Mack just pointed to is not an answer but only an excuse and a reason many agents fail. They believe him or they identify with him. So let’s argue the point. In a booming market listings were hard to get especially when you were new in the business.
With over 4 million agents competing for listings the field was pretty tight.
Today half of the licensed realtors are out of business making it half as much difficult to make it for those that are in it. So the fact that 50% of the realtors quit and did not make it answers half of my question.
So why could the rest survive ? They are doing something that the others could not, survive.
So did they mess up or the system messed them up?
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Fri Sep 30, 2011
Alan,
Please don’t take it the wrong way. This is not a criticism of the agents it is criticism of the system.
I believe in the capitalist system so when you mention unions than you give me chills.
The change needs to be done on total different level.
A referral companies that I spoke of earlier do exist. Most of them have nothing to offer but get you hocked in believing that they will be providing you viable leads for relatively a small amount of money. Many agents are attracted to the concept until they come to the conclusion that it is worthless. Most of the leads are nothing more than names out of the phone book.
But imagine if they were genuine leads. Leads that were , screened, filtered and assigned to agents across the country . Not only would they get leads but they get partial payments for the services they were required to perform. BPO’S function more or less in the same fashion.
This business model could provide a new dimension to earning a living to realtors that are either starting out, or are not in the standardized top 20% of an agency. I believe that when a business is structured there is less errors caused by little or no supervision. When a brokerage house provides job security and benefits to their associates what better way to solve retention and growth.?

Alan I have no intention to change your way of doing business nor am I suggesting that I have the perfect solution. But it could be an answer for many that would love to stay in a business they love t but can’t afford to make a living with it.
My personal opinion we have way too many licensed people who do little or no transactions in a year.
I don’t consider them realtors, real estate is their hobby not their livelihood.
At the same time there are way too many brokers who should not be in business, for they offer nothing to their associates beyond promising them the moon and let their associates stumble and finally drop out.

When you look at the auto industry it is structured with dealers awarded locations of a certain radius to provide them with a strong share of the market. Some real estate franchises attempt to copy that model but there are streets in my neighborhood where there are twenty agencies in one city block. Is there something wrong with that picture? Look I don’t have all the answers how to improve our industry but at least i made an effort in suggesting some ideas . Look Taxi drivers work hard hours but they have their meter running the moment you get into their car. They pay a pretty penny to buy their license and they can afford to give away their services. We don;t expect them either. Maybe making a real estate license more pricy could reduce the number of agents from having it. Is that a solution? Maybe if we increase the hours and difficulties of the course it would accomplish the same thing.
There was a time when our business was anything but a monopoly. Look at it today. The banks control every aspects of it. Don’t you think that realtors could assist more efficiently clearing up this mess we are stuck with if banks actually included our industry and paid for our assistance. They could be that referral company, the ones that not only advertise to buyers but offer services and financing in a competitive market with other institutions. It is all about the service. Real Estate Agents who is better in the process of showcasing their properties and offering their skills and licenses in the professional selection process for their referred qualified buyers or customers.. Dorene we are on the same page we need to consider improving our industry we have the tools that are so incredible but one thing for sure as many buyers start out on the internet they end up with an agent in the end. The human personal touch or professional advice will never ever be replaced. It is not so easy to find many good agents why? They need to find other jobs to survive.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Fri Sep 30, 2011
I think the real question Allan is why they fail. For as long as I have been associated with real estate it was always a number’s game. Failure was the part of the system. We are trained to deal with failure and with objections from the day we start the day till we finish. The numbers of calling a hundred FISBOS to get a lead to one listing has been a system that needed not only patience and perseverance but financial stability on the side of the agent. I recall that the first question the broker asked me when I started in this business was how long can I afford not to make a dime? At that time when interest rates were over 18% you needed more than 8 months of reserves to get started. Yet here we are with the lowest of interest rates in a century and good people like Joan are forced out of our industry.
It does not take a mental giant to figure out that there is something awfully wrong with our business.
It is not that complicated to fix if the expectations were more fundamental and the utilization of time was practiced professionally. No serious person can be asked to gamble their time and join a real estate company that gives them no more than the advice most of us got. It should not be a numbers game. It should not be a game at all. It should be a responsible service where the guesswork boils down to one question. Is it door number one or door number two. Sign here please. All these futile questions of working with people that have nothing o do better than take out a realtor in a rainy day or going to a mall because they are boared
Bathrooms in New York charge more for that pleasure. Time to reassess why one wants to become a realtor?
If we only train for dealing with objections and being prepared to play russian rulet with countless of useless buyers it is time to filter the process where it is real and where it is not. Talk to a doctor cost you money. Talk to a plumber cost you money. Talk to an attorney cost you money. Talk to a tax consultant cost you money. Talk on the phone cost you money. Talk to a realtor is not only cheap but free.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Fri Sep 30, 2011
What we need is a genuine referral company. Reversed concept whereTHEY pay to get the job done. Something in practice where mortgage companies ask realtors to do a value analysis.
A relatively simple concept a real buyers signing up for a fee and is referred out to agents across the nation.
They come pre qualified, with letters of credit, or pre approvals held in confidence by the agency.
They sign up for a period of 30 days at a minimal fee. This fee is paid to selected agent. Buyer performs everyone is happy. Every time an agent delivers and sells they are graded by the buyer. They collect points. The buyer can choose an agent with the highest score of performance in a selected geographic area..
Buyers have everything to gain if they are as genuine as they claim to be. The fact that they provide a minimal fee for service provides all participating agents a real reason to b e committed to their professions and NOT go unpaid for weeks or months of work. Agents may need to give up on standardized commissions or choose between dropping out of the field and unemployed.Time has come to utilize the internet the way it was meant to be. A true employment service. Value for value. This service would be a mecca for sellers that would have an opportunity to add their names to a list of properties to be delegated to agents that are hired to do a professional job of showing, negotiating and closing a deal. Saving agents time, money, and nickel and dimming them for services that only drain their abilities to stay in business. One source that promotes professionals and the public in a media where the demand is a two way street.
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Fri Sep 30, 2011
Move to Florida I will hire you in one New Jersey second.
Have you worked the rental market?
0 votes
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