Much of the general public is oblivious to all the costs associated with being a real estate agent. They mistakenly believe we all drive Benz’s and are grossly overpaid. Nothing could be further from the truth. Carrying a real estate license comes with great expense, and we have to charge our clients accordingly to cover the costs of doing business.

According to Payscale.com, the median yearly salary for real estate agents is $44,488. Most agents don’t even sell five homes per year. With that in mind, there’s a myriad of monthly costs that must be covered, whether we sell a home that month or not.

To demonstrate that it’s not all fancy cars and mansions in the lives of agents, I’ve listed 10 things real estate agents blow their commission checks on which the public has no idea about.

1. Lockboxes:

These little guys, who hang on your door when your home is for sale, are not cheap. Think about it, these are boxes that are destruction proof and operate by satellite. Not to even mention the expensive supra key that you have to buy and have a subscription to, in order to unlock the boxes. Agents who have 10+ listings have thousands of dollars in lockboxes alone.

2. Signs:

An agent can’t sell a home without a sign. Signs aren’t free. Much like lockboxes, when an agent has dozens of signs, they have lots of money invested. The design and shipping alone is hundreds of dollars. Agents use yard signs, open house signs, location signs, sold signs, pending signs, and in the HOA controlled neighborhoods, designer signs. It adds up very quickly.

3. NAR Dues:

The National Association of REALTORS® (NAR) is America’s largest trade association, representing over 1 million members involved in residential and commercial real estate. Not all real estate agents opt to join NAR and become REALTORS®, but the vast majority do. And guess what—NAR wants its money every month. And they don’t take IOUs.

4. MLS Dues:

On top of belonging to NAR, you have to pay monthly to have access to the MLS. The MLS is the source that lists all the homes for sale. Trulia and Zillow don’t have near as much data as the MLS. The MLS charges a hefty monthly fee to list and sell the agents’ homes. It’s very much a necessary tool in the agent toolbox.

5. Marketing Materials:

The agent’s main job is to market. They market properties and themselves. Between websites, business cards, flyers, and belonging to sites like Zillow and Trulia, the average agent will spend almost $1,000/month on marketing materials. Some spend $10,000+ in marketing each month. It’s not cheap to spread the word about a multi hundred thousand dollar asset for sale.

6. Advertising:

Paid ads aren’t cheap. Whether it’s on Facebook, a billboard, or the baby seat in a shopping cart, ads cost a lot of money. They’re the lifeblood of a good agent. That’s how they sell your home—by advertising it.

7. Website Hosting:

If you’re going to sell real estate in this digital age, you need a website. You’ve got to have a place for your prospects and clients to come and search for homes. That website has to feed into the MLS (another fee to do that), and the website has to be responsive. The average custom website costs $5,000 and comes with a monthly charge of $200. You starting to see the pattern here?

8. Open Houses:

You may think that we just sit in your home using up your free wifi, but that’s not the case. Depending on the agent, there’s food involved as well as balloons, signs, ads, and staging—all designed to make the place look and feel like a million bucks. I’ve even paid to have someone mow the yard and trim the bushes before an open house. I didn’t have time to wait on the owner to take action.

9. Closing Gifts:

In most markets its customary (but not necessary) for agents to give a gift to the clients after doing business with them. What most don’t know is that they usually send one to the title company and the loan officer as well. When everyone puts in hard work, the agent wants to reward them so they continue to do so. You may view it as frivolous, but you can never be too nice to title companies and banks. When you need a favor, gifts go a long way.

10. Office Space (often included in an agent’s commission split—read more here)

Most people think that agents have a job with an office. They don’t realize that the broker charges for the office space and the furniture that occupies it. Just know this: Nothing is free in the real estate game. Not even a place to do your work. Agents are nickled and dimed to death. And as you know, commercial office space isn’t cheap.

So next time you’re thinking about hiring an agent, and you think their fees are a little high, think of this list (which is just a fraction of what’s really paid for). They’re all things to facilitate properties getting moved faster and for higher dollar amounts.

It’s not easy, cheap or always fun being a real estate agent, but the smile we see on our clients’ faces when they buy a new home or profit from selling their old one, makes it 100% worth it.

By Ryan Stewman. If you liked this post and sell real estate, check out his personal site which is a top 20,000 website in America and among the top ten sales blogs on the web.

The post These 10 Expenses Are Why Realtors Don’t Make The Kind Of Money You Think They Do appeared first on Lighter Side of Real Estate.

In my time in the mortgage world, I bet I attended 500 BOs. The reason I went to so many is that I was entertained by the usual suspects that showed up. You know, the agent who’s not sold a home all year, but shows up at the $1.2MM listing for the wine. Yeah that kinda stuff used to entertain me each week.

What’s even more entertaining to me, was the fact that the agents hosting the BO would get mad that these clowns showed up, yet they invited ‘em. Better not leave anyone out!

If you’ve only been to one broker open your entire career, you’ve seen all five of these types in the house at once. If you’ve never paid attention, I’m about to hip you to what’s going on, so the next BO you attend will be as entertaining to you, as they are to me.

#1 The Food Thief

Via NBC | reactiongifs.com

Jane the agent paid $250 for the cheese and wine at this spectacular home in Beverly Hills. There’s staged furniture and even professional flyers that cost her over $200 to design and print. Jane’s expecting some of the top agents in L.A. to attend, so she really goes the extra mile.

Ten minutes into the open, Jane spots the rookie, Mike, shoveling $5 cubes of cheese onto his plate like it’s the first time he’s seen cheese in his entire life. On top of that, he takes half the cracker roll and throws it on top. And a generous handful of Godiva chocolates, to boot. Then he commences to fill his glass of wine to the brim.

#2 The Habitual Irrelevant Question Asker

Via eonline.com

After dealing with Mike’s face-stuffin’ excursion, Jane gets sidetracked by Carl. Carl starts asking about the home. First off, Carl hasn’t sold a home since the Cold War. Second of all, Carl asks questions that are already on the flyer each agent gets as they walk in.

He asks about square footage, the year built, if they are paying closing costs, who the owners are, and a bunch of other time-wasting inquisitions. No matter what room Jane keeps walking to, Carl is right there, in her ear, asking questions that are common knowledge to everyone else holding the same BO flyer. There’s seemingly nothing Jane can do to escape. She’s got to avoid being seen by him next time.

#3 The Complainer

Via bonsai.tv

After 10 minutes of question after question, Jane makes her way back to the kitchen to see how much havoc Mike has wreaked on her spread of food. Right as she steps into the kitchen, Harry sees her from across the island and says, “You know, this cheese is ok, but if you had gotten the cheddar from Central Market with the blue label, it would be way better.” Jane already knows what’s next.

“You know this wine is ok but…” Ugh, will it ever end? “And while I’m at it, that wallpaper in the hall bathroom is atrocious. Are they going to replace it prior to selling?” At this point Jane is boiling inside. She’s not even had the chance to go speak with the brokers and agents who do stand a chance of selling this home.

# 4 The Dumper

Via My So Cal’d Life

Soon as Jane escapes Harry out the back exit of the kitchen, she enters the hallway and hears the bathroom fan. She immediately knows what’s up. Someone is (gasp!) “using” the bathroom… and not in the preferable way. “Who actually does that?!” Jane mutters under her breath, but she already knows who it is. It ain’t Mike; he’s all backed up with cheese!

Then Jane realizes it’s Pam. She did this last time too, somehow even managing to break the bidet. Does she not have a bathroom at her office? What exactly is her deal? There’s no candles and no spray in this staged home and now it smells like fresh compost and eggs. “I’m sure the other agents are gonna love this,” Jane sighs to herself.

#5 The Smoker

Via Celebrities Smoking

After dealing with all of this, making her way back to the living room where the power agents are hanging out, Jane sees Ally smoking a Pall Mall on the back porch. Just as Ally takes her last drag, Jane sees her flick the cigarette to the ground and then step on it, rubbing a huge ash mark in the concrete on the back porch.

Not two seconds later, Ally walks in smelling like she just left a Philip Morris smoking competition. The house is starting to stink up quick. This BO is about to have to really be open. Open windows, open doors, and open air flow. Jane is about to have a breakdown.

Just when Jane is about to scream “EVERYONE OUT” she runs into Sheila in the guest bedroom. Sheila has sold over $20 million in homes in the area in the last 7 months and she says, “I’ve got the perfect buyer for this. I’ll show them this home tomorrow and you can bet we’ll give you an offer the same day.” Jane melts.

This is why we do what we do as agents and brokers. The hell we put up with can quickly be replaced by the heavenly feeling of closing a sale, putting a smile on our clients’ faces, and earning a commission check. So please, for your sake, avoid inviting the wrong agents to your opens. At all costs!

The post 5 Types Of Agents We Dread Showing Up To Our Broker Opens appeared first on Lighter Side of Real Estate.

With every boom comes hard work. We have to make decisions on what to miss due to work. Most of us have survived a drought before and are looking to make the most of this current flood.

When you get caught in a flood though, you tend to lose track of everything but the flooding. What I’m saying here, is that you may need to take a break for a minute. Not too long of one though, like 3-7 days. Then it’s back to work!

I’ve put together a list of seven signs that you need seven days off. For each of these offenses, give yourself a day of vacation. If you nail all seven, take two weeks off!

#1 You grab your supra key when you get to your own house.

Ever pull up the the front of your house and look for the lock box to get in only to realize you’re home and there is no lock box?

Via Quizzical Llama

#2 When friends come over to your house you feel compelled to give them a tour.

Are you so used to showing properties that when friends show up you go into open house mode?

Via gifsoup.com

#3 You’ve got to move all your papers off the seat when someone wants to ride with you.

Have you turned the inside of your car into a recycling bin full of RE flyers and papers?

Via Roman Novian

#4 You answer every phone call with, “Hello, what property address are you calling in for?”

Are you so in the zone right now that you answer every call as if it’s a sign call?

Via gifstumblr.com

#5 Your car is full of open house signs and balloons.

Do your seats and trunk look like you have a side job doubling as a clown at kid parties?

#6 Your BFF is a title person.

Do you find yourself going to lunch with your title rep more than anyone else?

Via Rant Lifestyle

#7 If you talk to your loan officer more than you talk to your significant other.

Are you constantly on the phone with your LO about closing dates and inspections/appraisals?

Via The Campus Connect

Out of these 7 signs, add your score up and take days off accordingly. If you got a 7 you need a break for sure. Take a few days to enjoy the fruits of your labor, which is the reason we do this job.

Share this with the busiest, most stressed out agent you know… and then go on vacation together!

The post 7 Signs You’re Overworked And Need A Break From Real Estate appeared first on Lighter Side of Real Estate.

Via: Radass

I live in a dog-friendly high rise building. Every day I see people taking their canine companions down the elevator and to the park to for a potty break. Every day, the same dogs, at the same time, doing the same thing. It occurred to me that dogs are pretty consistent animals, and there’s a lot we in sales can learn from them.

Often times in sales, the key to making it lies in your ability to remain consistent. I’d say most salesmen I’ve seen fail, give up on following up right before the sale was made. The old saying “buy or follow up until they die” holds true today, more than ever before.

So what’s that have to do with agents and dogs?

Agents are ultimately salesmen, even though some refuse to act like it, and others refuse to admit it. In order for a salesperson to be successful, they have to convince other humans to pay them for their services.

Many agents believe you have to be some sort of NLP master, mind reader or psychology major in order to succeed at sales. That couldn’t be further from the truth. Matter of fact, the less formal education a salesman has, the better he will perform in many cases.

I watch these high rise dogs close more sales than I see some agents.

Each day, after the people take their dog out the front door, around the park, in the cold, rain, snow or heat, they come back in the front door and give the dog one of the treats. The treat buckets are ALWAYS FULL, even more than the filtered water jug in the gym.

Not only have these dogs convinced their owners to give them a milkbone every day, after they just forced them to pick up their droppings with a thin plastic glove, they’ve got their owners to convince the building managers to supply the goods.

If that ain’t a master sales move, I don’t know what is.

But dogs aren’t intelligent. I mean dogs are smart and all, they just aren’t human smart. Matter of fact they aren’t even dolphin smart, whatever that means. So if dogs aren’t super-human jedi mind masters, how are they able to get what they want, at will, for doing normal stuff?

The answer lies in consistency. Nothing more, nothing less.

Every single day, these dogs wake up, wake their owner up, get them out of bed, and persuade them to let them out. Because if not, the owner knows what will happen. Meanwhile they get snacks, occasional petting from others, and love from their owner the whole way there and back.

Some of them, the smaller ones, have their owners carry them. They don’t even walk to the park (they get carried). All without saying a word. All by offering nothing but unconditional love and consistency of asking.

Every day as they come in the front door and approach the desk, they stop right by the milkbone section and wait. They do it every day, every time, without fail. After a while the owner is conditioned to “buy in” to giving them a treat.

Think about how this applies to sales and specifically selling real estate.

If you’re asking for the business from every prospect, every day, you’re gonna get a lot of what you want. Sure some people will get annoyed with you or not like you, but hey, there’s people who don’t like dogs too. Crazy as it sounds, we’ve all got haters.

Meanwhile, if you’ll simply continue to ask the builders, investors, business owners and your sphere of influence for their business, eventually they will start to give you what you want. The most successful agents I know got where they are today by doing the same thing over and over — asking for business.

Ever meet a successful agent who’s not really that charismatic, bright or articulate and wonder how they got where they are? Chances are they just stayed consistent at asking for business from the right people, until it was the right time.

Take a sales lesson from our canine companions.

Never, ever, ever forget to ALWAYS ask for the business every time. At the end of a listing presentation it’s “sign here to get started, sir/ma’am.” When working with buyers it’s “do you want to make an offer on this house, right now?” Whatever it is, you ALWAYS ask it. That’s how most sales are closed.

Ryan Stewman is a no-nonsense sales and marketing expert who helps high net-worth performers make adjustments in their businesses that lead to greater profit.

The post The One Thing About Closing Sales Every Real Estate Agent Can Learn From Man’s Best Friend appeared first on Lighter Side of Real Estate.

A study was done a few years back where surveyors asked people if they’d ever considered working in the real estate field, and 98% of the people surveyed said “yes”. I guess everyone thinks our job is easy or something.

I can assure you, being an agent is not easy. Any job where you deal with the mass public is not easy. People are hard to please, especially when it comes to buying a huge asset like a home.

It’s not that people are mean (in most cases); rather, it’s that much like any other job, the general public has no idea what’s really going on behind the scenes. To the public, we agents stick a sign in the yard, enter some data into the MLS and then collect a $10,000+ check.

That couldn’t be further from the truth for those of us who treat this like a career. All CE, BS and MSA aside, we have a lot going on with each transaction. We deal with vendors, negotiations, repairs, marketing and vendors. Did I mention vendors? Because they aren’t always easy to deal with.

We agents live on commission. That means we must answer our phone, show homes and make offers in order to eventually collect a check. That said, we look at every phone call, every sign call and every website entry as someone we can use our skills to help get into the home of their dreams.

That’s not always the case for the person on the other end of the deal. Most consumers will hit 6 websites and enter their information. That means there is, on average, six of us chasing each lead. The consumer thinks we exist in abundance. So they take advantage of us (unknowingly, in most cases).

#1 “I didn’t want to bother my agent.”

It’s Saturday morning and the phone rings. You pick it up and there’s someone on the line that wants to look at one of your listings. You go through the normal song and dance to get their information. When you ask, “Do you have an agent you’re currently working with?”, they say “Yes but they’re busy, I don’t want to bother them.”

As crazy as it sounds, this happens a lot. It’s like consumers want you to work for free, so they can pay their sister-in-law (who just got her license 2 weeks ago, mind you) a commission to stop bothering them.

PSA to the public: It’s your right to ‘bother’ your agent. That’s exactly what you hired him/her for. And if he/she actually considers you a bother, you’ve hired the wrong one.

#2 “Yes I’m already working with someone, but…”

What’s even worse is when they try and convince you that you should still show them the house after they tell you they have an agent. They say clever phrases like, “If you show it to me, I might buy it!” Really? Tell me more….

Agents with the REALTOR® designation abide by a strict code of ethics, and there’s a fine line between stepping on another REALTOR’S® toes and violating the code. Many consumers have no idea how all of this works, but you can count on them to always dangle the proverbial, “I might buy it” carrot in front of you.

PSA to the public: Your enthusiasm is appreciated, but if you’re working with an agent, allow him/her to initiate contact for your showings.

#3 “Zillow says our home is worth waaaay more than that…”

Ahh, that moment you reveal the results of your CMA and they compare it to a Zestimate®. “But Zillow® said…” can be one of the most frustrating phrases to hear as an agent. You then have to validate yourself as a licensed expert who works in the area, against a website designed to capture leads. Go figure.

It’s not that we hate Zillow® (well, some do and some don’t — I personally think it’s a good tool for exposure), but man it causes a lot of confusion we have to clear up with our clients on a daily basis.

PSA to the public: Relying on Zillow® to determine your home’s value is, at best, a crapshoot. Zillow® itself even encourages buyers, sellers and homeowners to conduct other research such as “getting a comparative market analysis (CMA) from a real estate agent” and “getting an appraisal from a professional appraiser.”

#4 “I saw a website that said they sell properties for a flat fee.”

On paper, namely a HUD, it looks like we make a killing on each property we sell. The public has no idea how much MLS dues, lock boxes, Supra keys, CCS, Realtor Dues, CE and marketing dollars we spend on a monthly basis. Being a real estate agent is not cheap.

I didn’t even mention commission splits and desk fees. The list goes on forever and every day someone new is trying to sell us something. For a lot of us, the second we get our checks, it goes right back into our business. Selling millions of dollars in assets a year ain’t cheap.

PSA to the public: It’s not wise to shop for a real estate agent based on cost alone. And when evaluating candidates, make sure to compare apples to apples. Take into consideration such things as experience, track record of success, and client testimonials. Also, “newer agent” shouldn’t be an automatic red flag — they can sometimes be the most hungry and technologically savvy you’ll find.

#5 “It’s a ridiculously low offer but see if they will take it”

Don’t you hate insulting other agents by giving them a ridiculously low offer? It’s really a waste of time for all parties involved, but there’s always that one buyer who thinks they can roll the dice on getting a deal. They say, “You never know until you ask”. Trust me, we know.

I’m not talking a lowball offer a few thousand under list price; I’m talking a $100k offer on a $200k home because “it’s been on the market forever.” By sending a ridiculous offer to another agent, who by law, is supposed to protect the interest of their clients, is just insulting. We don’t like it when it’s done to us…

PSA to the public: As humans, we’re wired to love getting deals, and there’s nothing wrong with that. In some markets, deals can still be scooped up. However, be mindful that sellers can be insulted if the offer is too low, resulting in an unwillingness to take you seriously (read: colossal backfire). There’s no exact science to negotiating — just listen to the advice of your agent and you should be ok.

These five things may be the most dreaded phrases uttered by prospects but there are 100s of phrases we love to hear. Things like, “I love this house,” “Thank you for getting me my dream home,” “You sold our home for more than we expected,” and most importantly “Here’s a referral.”

Next time you get one of these phrases thrown at you, send them to this article for future reference. The more you know…

Ryan Stewman is a no-nonsense sales and marketing expert who helps high net-worth performers make adjustments in their businesses that lead to greater profit.

The post 5 Things Real Estate Agents Hate Hearing From Prospects and Clients appeared first on Lighter Side of Real Estate.

When we make appointments to show homes, homeowners forget. Like any other animal on the planet, we get in the mood and voila, we make magic happen.

Sometimes I get the feeling that homeowners are exhibitionists and enjoy being “caught”, but in most cases it’s blush city. On the flip side, if they are hot, your potential buyers may associate positive feelings with the home and bedroom lol.

When we’re faced with awkward situations we often panic, and say or do the wrong thing. These situations can scar us for life. So to do you a favor, I’ve compiled a list of 12 things you shouldn’t say when you walk in on someone having sex in a listed home. They’re listed in no particular order.

#11 “Can you please hurry up?”

#10 “I dig your technique.”

#9 “You know, if you’ll just put your leg over there it makes that move easier. Here let me help you.”

#8 “Is this your home?”

#7 “And this is how you too will enjoy this home’s bedroom.”

#6 “By the looks of it, this home’s AC works just fine.”

#5 “Oh god!!! My eyes!!!”

#4 “Looks like it’s not just the front yard that could use some landscaping.”

#3 “See, the carpet and curtains both match here.”

#2 “Let’s take a selfie.”

#1 “Mind if I watch?”

If you liked this one, you’ll love these:

• 12 Real Estate Problems Only Realtors Can Understand
• Awkward (But Real) Moments in Real Estate

The post 11 Things Agents Should Never Say If They Walk In On THIS During A Showing appeared first on Lighter Side of Real Estate.

As a consultant to high-level salespeople, I’m in the uniquely fortunate position to have met (and personally worked with) Katrina Campins, Fredrik Eklund, Josh Flagg, Christophe Choo, Herman Chan and Josh Altman. All in the last few months, too. These brokers have sold tens of billions of combined dollars in real estate.

As I’ve interacted with them, I’ve listened intently for the commonalities they share. Whereas most people look for magic bullets, I scope out proven methods that I can learn from and share with others. While some people in my shoes may use an agent’s time to sell themselves, I use it to learn what made them successful.

I’ve carefully observed each strategy, tactic and method these agents use. I’ve asked all the right questions and received answers whether they’re the ones I was looking for or not. I can tell you there are three distinct characteristics that separate a billion dollar producer from a million dollar producer.

Here they are:

1. They DO NOT miss phone calls

The first thing I’ve noticed among all of these power brokers is that they don’t miss calls. I’ve sat in business meetings with all of these agents in person. I can tell you they all stop what they’re doing for their clients. We could be in the middle of a fifty-thousand dollar commission negotiation, and if one of their clients calls, they stop and take the phone.

For example, when I was in Beverly Hills with Josh Flagg, we toured luxury homes with 14 or so agents from around the world. Despite being on a tour bus in the middle of LA, Josh still had us stop twice to help his client negotiate on a $14MM property.

When I met in Josh Altman’s office, he took three phone calls that were his investors looking to buy property. On another occasion, Christophe Choo and I were having a blast at Villa Blanca, but he left to go show at $65MM property. If he hadn’t answered the phone, he would have missed out. However, he puts business first and that’s why he sells as much as he does.

Let me ask you this: If you can’t answer the phone for 150k buyers, how can you possibly present yourself as “on top of it” to million dollar buyers?

2. They brand themselves in an unmistakable way

The second trait that they all have in common is their branding. You can’t catch a whale using the same bait you go fishing for minnows with. In other words, if you wear jeans and a t-shirt to appointments, you’re not going to attract the lawyer with a $100MM net worth. All of these big-time agents live out their brands. It’s not just a work brand, it’s a life brand.

When I met Katrina Campins inside some swanky recording studio with more platinum CD’s on the wall than I could count, she looked exactly like her Facebook and website photos. When Fredrik Eklund and I created his web pages for the mastermind, his biggest concern was what images and styles we used. He told us, “I’m a brand, and I will only put stuff out the public that lines up with my branding.”

Josh Flagg wears fancy slippers. Fredrik has funny socks. Herman’s brand is all about his personality. He knows that his wealthy, techy clients appreciate a good laugh and entertaining time. They all have something that serves as a sneak peek at who they really are, but their brand is what comes first.

Let me ask you this: If a wealthy hedge fund manager saw your ad somewhere, would they think you could handle their $10MM home? Or would your branding (or lack thereof) fail to win their confidence at first glance?

3. They take massive action

The third thing these closers all have in common is they take massive action. I’ve asked each and every one of these fine folks to tell me their story. They’re almost all identical. They had a dream, took action on it, and stuck with it until they got what they wanted. The relentlessness of their hustle is amazing.

While the average person is trying to put together a plan and then execute it, these top producers took action and made up the plan as things happened for them. Josh Flagg told me about how he knocked on all of his grandma’s neighbor’s doors to get business. Fredrik told me a story about how he called developers every day for four years before breaking into the market. Herman made hours of video before he caught on.

Whether it’s embracing new technology, knocking on doors or calling your ass off, they all took massive action over and over again until they got what they wanted. They never gave up because they knew their competition would give up and eventually they’d win. And they were all right!

Let me ask you this: Why write a business plan when you can live one? Sure, it’s ok to put a plan on paper, but only putting a plan into action will get you results.

Next time you wonder what it takes to move your career to the next level (whatever that may look like for your situation), look at these three traits and ask yourself if you’re doing what it takes. The facts never lie. They may not reveal what you want, but they won’t lie to you.

The post 3 Commonalities Among Top Real Estate Brokers I’ve Noticed By Working With Them appeared first on Lighter Side of Real Estate.

As someone who helps high-level salespeople reach greater levels of achievement, I hear quite a few people complain about real estate agents — from loan officers to title companies and beyond. However, most people don’t understand what it’s actually like to be an agent.

For example, did you know that real estate agents are one of the most sold-to niches out there? There are more people trying to extract money (and time) from agents than almost any other profession. Imagine being hounded like that from every angle.

Agents are grossly under-appreciated, too, in my opinion. You probably have no idea how much stress an agent has to weather and forge through on a daily basis. In today’s market of limited inventory and multiple offers, agents are having to work their tails off just to get a house secured for their clients.

Here’s my list of the top 5 misperceptions about real estate agents.

Misperception #1: They seem to have lots of free time

Your job probably consists of 9-5 Monday through Friday, or something similar. Agents work after hours and on weekends too. An agent’s job never ends. When the client gets off work they want to see homes, and Realtors have to be accommodating. Same thing goes for the weekends. While you’re barbecuing and all that fun stuff, agents are out hustling properties. Let’s have some respect for the hours they put in.

Misperception #2: They never seem find the right home

Inventory is scarce in many markets across the USA right now, and in some cases deals end up in multiple-bid situations. This can mean clients becoming impatient as well as vendors. Loan officers and title companies tend to blame the agent for delays, but agents are limited by the number of houses available on the the market. It took me 7 offers to finally get one accepted when I bought my my home. Trust me — patience is a virtue in real estate, especially when inventory is low.

Misperception #3: They always seem to avoid phone calls

I hear a lot of complaints about Realtors not answering the phone. Yes, there are some agents whose communication skills are subpar; however, a productive agent is constantly pursued by title companies, loan officers, credit repair people, sign people and everyone else you can think of. If they answered every call that came in (when it came in) they wouldn’t have time to sell any houses. So be patient with agents; they’ll call you back.

Tip: Many real estate actually prefer to communicate via text. Not all, but many I know do.

Misperception #4: They don’t negotiate hard enough

One of an agent’s primary jobs is to negotiate. However, negotiating is also the primary job for the agent on the other side of the transaction. So while you may get upset because you didn’t get everything you asked for, you need to understand there’s most likely an equally skilled agent on the other end fighting for his or her client as well. Good agents will fight to get what their clients want, but at the same time, they know how far to push the line while still preserving the deal.

Misperception #5: They’re not worth their fee

Many people think agents are all ballers, and that their commission is a rip-off. Not hardly. After marketing fees and dues, agents make about 1.5% per transaction on average. It’s expensive to be a real estate agent. They have to buy lockboxes, signs, websites, flyers, contact management systems, business cards, MLS dues and many other things just to stay in business. For all their hard work, it’s worth it. Plus we all know that you get what you pay for.

The Bottom Line

I’ve trained hundreds of high level salespeople (including agents), so I can fully appreciate the passion and dedication it requires to succeed in real estate. Agents have faced tough markets since 2008, and while business is picking up now, inventory is still limited. So the next time you hire one, be mindful of what stresses they’re under and how hard they work for their clients.

The post The Top 5 Misperceptions About Real Estate Agents appeared first on Lighter Side of Real Estate.

If you’ve been in the real estate world for over two years, you’ve probably seen a lot of high hopes come and go. Each year, every agent in your office has exuberant expectations about the commissions the new year will bring their way.

And then the work comes…

Many get into real estate because they think it’s an “easy” job with lots of “time freedom”. But when they realize what all it takes to earn a check, and how much work it really is, they give up on their dreams.

I’ve never met a single real estate agent who didn’t get into the industry to make high six figures a year plus. I’ve only met about 1,000 who are actually doing it. One thousand may seem like a lot, but in a world of over one million NAR members, 1,000 is a measly 1%.

That’s right, roughly 1% of all agents earn 6 figures or more. Why? Because they don’t show up to do the work. Nothing is ever as easy as it seems and real estate is no exception.

That’s why I’ve compiled a list of the top goals of 2015 and the excuses your competitors will use to NOT complete them this year. Meanwhile, if any of these are on your goal list, when you feel one of these excuses creeping up on you, you can be aware of it and avoid falling into the excuse trap.

1. I’m not driving buyers around this year

It’s every Realtor’s dream to ONLY work with listings. Buyers can take up your time after hours and on the weekends. They can burn your gas and put miles on that fancy benz you leased with your first commission check, which you’re 1,000 miles over and one payment behind on.

The thing no one considers, though, is the cost of listings. Buyers are free other than gas and time. Sellers, on the other hand, require lockboxes, signs, ad money, broker opens and more. If you keep any kind of listing inventory you’ll be forced to invest heavily in supplies to open and sell them.

When agents realize the cost, they immediately say, “Well, I can’t afford that right now, so I’ll just stick to what I know – buyers.”

2. I’m hiring an assistant

The commission check roller coaster of real estate can be frustrating. Once you get a deal working, your time goes towards completing that deal, and not towards marketing for new deals. You get caught up and by the time the deal is done, you realize you wasted all your time closing one deal instead of prospecting for more.

There comes a point in an agent’s life when they get close multiple deals in a month and they want to hire an assistant to help them get off the roller coaster. The problem is, when you hire someone you have to train them. While you are training them you have to pay them. While they are training they can’t make you any kind of real money.

When the work and money show up agents say, “I don’t have time to teach someone else.”

3. I’m going to spend more money on marketing

If you plan on listing homes, attracting buyers and closing transactions, you’re gonna need to invest heavily in marketing. After all, how can anyone even know you exist, or that your listing is on the market, if you’re not putting your brand in front of them?

Many real estate agents underestimate the time and cost it takes to market themselves properly. In this day and age a pro knows to invest in seo, sem, ppc, fb ads, group posts, videos and direct mail. You have to reach the audience on every platform possible. That’s how you create a brand.

When agents realize that branding takes a while and most marketing does not generate a commission check overnight, they say, “I work with referrals from my network.”

4. I’m going to quit selling trailer homes

You probably read this and laughed. You may have thought “nobody sells trailers”, but I use the word metaphorically. I consider any home $100k and under a trailer. Every agent dreams of the day they score a million dollar listing, while at the same time, taking every BS deal they can, trying to pay bills.

We all know you want to move up in property values and sell from the nicer neighborhood, yet for some reason you can’t seem to tap into the market. Know why? Because you’re not farming and branding yourself in the neighborhood.

Whether it’s creating Facebook groups or door knocking, when most agents see what work it takes to actually farm a luxury neighborhood effectively, they say, “There’s more homes for sale under $xxx than there are in the million dollar range. It’s just how the market works here.”

5. I’m going to move into the luxury market

Like I stated above, every real estate agent wants to move into the luxury market. The problem is luxury buyers and sellers have money — often times more money than the agent working for them.

This can be intimidating… not knowing the lifestyle, decor, terminology, etc. — the artsy stuff rich folk are into. Agents get comfortable selling from their income level to their income level. It costs a lot of money to market expensive property, too. Most times you have to find buyers from other parts of the country.

When the obstacles show up, the excuses will follow. Most agents will say, “I don’t like working with those rich, fancy, folks. I’d rather work with people who are down to earth.”

6. I’m going to be top producer in my office

It’s every agents dream. The reason you got in the business. It’s more than the money. It’s the recognition and respect it earns you. What is it? TOP PRODUCER status! Everyone wants to be like you.

However, it’s a problem when it’s February and you realize you’re already 10 homes down from the current producer (and you have no firm plan or budget to get you caught up). You see the producer working night and day, always on the phone and always distracted. You realize it takes more than just a goal to get where he/she is.

When agents realize “top producer” status is only earned by those who hustle, they say, “I just wanna earn a comfortable living and not have to work 24/7.”

7. I’m not working with builders anymore

Chances are, if you’ve been in the business for any amount of time, you’ve been ripped off or duped out of a check by a builder. You may have shown some clients without a buyers rep (your bad), and the builder called them behind your back. Bye bye commission check.

You swear you will never send another builder another client… ever! Until another agent hacks you off. Then, on top of that, you realize the builder is paying a $10,000 bonus plus 5% to agents on homes in that new development down the street.

When they dangle that big bonus incentive in front of them, agents say, “I needed the money. It’s a nice neighborhood. I love that builder.”

The bottom line…

I make jokes about these excuses, but chances are, you found while reading this that you’ve made some of these excuses before as well. When hard work shows up, it’s usually carrying coveralls and a shovel.

If you’re going to make this next year better than you last, you can’t expect the market to yield you better results simply because it’s improving. This will only mean more competition throwing their hats in the ring. If you want more, you’re going to have to do more. End of story.

More marketing. More overcoming excuses. More work.

The list could go on forever. This year, when you say you want to be “Top Producer”, make it happen. Spend your spare time learning from someone who can help you. Watch videos, take courses and most of all, implement the stuff you learn.

It’s up to you whether you have the best year of your career, or whether you use one of the above lame excuses for not getting the job done. Go get ’em Tiger, you got this!

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