by Stuart Neal
on Friday, October 30th, 2020 at 3:16pm.
Perhaps you have always dreamed about a career in real estate.
Perhaps you have already worked your way through the licensing program & you are looking for ways to enter the industry.
Unfortunately, most newly minted REALTORS® & almost everyone who are in the “this looks like a good career for me” stage of their research, have NO clue how to be successful ,or how to build a lasting career in the real estate industry
Most Brokers will let you believe what you want.
From the outside, our industry can seem exciting. Intoxicating even. Especially if you have watched any of the realty TV or Netflix shows like Selling New York or Selling Sunset. Most brokers here in the Edmonton area will talk about how much money you can make. How much freedom you will enjoy. How it’s a chance to ‘fire the boss” & build your own business etc.
Here are 7 things you should know BEFORE you commit to this industry.
1. The Odds Are Stacked Against You
According to staff at the REALTORS® Association of Edmonton, (RAE) 80% of new members give up their membership within the first 2 years. I also heard that only 30% of those folks that decide to explore the real estate licensing course actually start, (source unknown, but believed to be RECA).
2.It Will Take Longer Than You Think to Get Started
If you choose to go with a traditional real estate brokerage, you will be expected to go out into the market & find your own clients. For many people, this means talking to friends, family & generally asking anyone you know if they, or anyone they know has a need for your services. Its not unusual for new REALTORS® to work for 3 to 6 months before they get a client & perhaps 6 to 12 months before they receive their first pay cheque. Would you be willing to wait that long? Can you afford to wait that long? There are alternatives. Ask the writer for more information.
3. It Will Cost More Money Than You Think
Many new minted REALTORS® suffer sticker shock when they first enter the industry. Not only will you need to activate your license with RECA. You will also need to join the 3 organizations that make organized real estate function in Canada. In Edmonton, this means you will join RAE (REALTORS Association of Edmonton), AREA (Alberta Real Estate Association) & CREA (Canadian Real Estate Association). You will also need to purchase professional liability insurance. You may need to purchase marketing collateral, set up a website, manage a social media program, advertise for business & whilst you are doing all of this, you will need to service your clients. We may have some solutions for you. Ask the writer for details.
4. You Will Second Guess Yourself
When we start a new venture most of are excited & highly engaged. After a while, particularly if you are making mistakes, or perhaps if the outcomes you had hoped for don’t pan out, you will second guess yourself. You will start to wonder if you have done the right thing. This is normal, but you may need to some help to regain your perspective. Ask the writer for details.
5. You Will Work 7 Days a Week
In most cases no one will be looking over your shoulder. You will have the freedom to work or not. However, if you are going to be successful, you will need to overextend yourself. You may need to work with the most demanding clients, You may need to work every day, at least for the first year or two, until you get some experience & have people talk about you. This is normal for most businesses. Think of it this way. If you were an airplane pilot, would you get off the ground by applying a light throttle or full throttle? After the first few years, you will be able to take more time off, but not at first.
6. Clients Will Frustrate & Disappoint You
Working with people can be one of the most rewarding & sometimes hardest ways to make a living. To be successful, you will need to learn how to ‘read between the lines’. Clients will tell you one thing & then go & do another. They may think they know what they want, but they don’t really. To be really effective, you will need to use a combination of statistical information & anecdotal information to help clients see things as they really are, not how they think they are. To make decisions based on what they really need rather than what they think they need etc. You will need to challenge, to guide & to support. Not everyone can do this. Your skills will improve with experience & training. We can help you with this.
7. The Bigger the Brokerage the Harder it Could Be to Succeed
Many new REALTORS® fall into the franchise trap. Much like consumers, new inexperienced REALTORS® assume that if they join a franchise all of the support, training & tools they need will be waiting for them. This is not true. All franchises are independently owned & the only thing they share in common is a trademark. The quality of the brokerage will very depend upon the quality of the broker. The training programs if any, may be based on old school 1980’s selling techniques that have little currency in the world of sophisticated well informed consumers. And you WILL have to find your own clients. Traditional brokerages count on you to do this. Most traditional brokerages require only 2 things. First, that you have a real estate license. Second, your credit card works so that they can bill you.
So, What Next?
If you have read this far, you may be thinking why bother? You might be thinking that a career in real estate is not for you.
Or you could be thinking that despite the potential downsides, you will still want to work as a REALTOR®. If this is you how you feel, we want to hear from you.
Ambergate Realty Advisors offers real world solutions & provides access to tools intended to help you achieve early success & to set yourself up for a long & rewarding career in real estate.
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®. Stuart has practiced as a successful real estate agent & broker in Edmonton since 2001.