Ten Tips for New and Inexperienced Realtors

July 26, 2013 at 9:36 am Leave a comment

by: Maria Hass

The Valley’s real estate market is looking good! Sales are up, prices are up and demand is high. Along with this great news, real estate applications for new Realtor licenses and reactivated licenses are up significantly, according to Judy Lowe, Commissioner for the Arizona Department of Real Estate.

“In all of fiscal 2012, we only saw 255 new licensees a month coming in for new licenses,” Lowe said. So far in the current fiscal year, she said an average of 322 people are granted real estate licenses each month.

The total number of real estate licensees in the state – including active, inactive and those in the one-year grace period before licenses expire – stands at slightly more than 85,000.

So many people are thinking of becoming a Realtor to manage their private portfolio better or to earn a living. But before you venture into this exciting, resurgent industry, there are several points to consider — these are just a few:

1. The real estate field is highly competitive. At one point, there were around 100,000 Realtors in the State of Arizona. That means there’s not a lot of business for everyone. Find a way to stand out!

2. Successful Realtors are made, not born. It takes time to build a business and generate a sufficient pipeline of clients and referrals to sustain the business.

3. Know how to sell yourself better than others, and find out what marketing strategy works best for you. You will make mistakes. The sooner you learn from them, the sooner you can get to the next level.

4. There are costs involved in keeping your license. Here are some Realtor costs for Arizona licensees: National, state & local Board Membership fees; Broker fees; Website fees; Advertising and marketing fees (newspaper, online, etc.); Contact Management fees; DocuSign fee; Real estate publication fees; Education Fees; Gasoline and vehicle maintenance; Lockbox fees; Client gifts and other miscellaneous expenses.

5. Do NOT expect a steady, monthly paycheck. A Realtor’s income is unpredictable and depends on when and if transactions close. Realtors are paid upon closing a sale.

6. Realtors are salespeople. A “people person” usually is most successful in this type of business.

7. Don’t forget, Uncle Sam will take a good portion of your income, so your take home pay is significantly less than what you started with.

8. Not all transactions will close. You can show 40 homes to a buyer and work with him or her for three months just to find out that they’re really not ready to buy a house. Meanwhile, you’ve worked for FREE, spent money on gas and other expenses and used your valuable time, only to see your client walk away with nothing.

9. Some people do not value your time. It is good to establish the rules before you drive your client to see their first house.

10. Welcome to the life of Prospecting. Every person you meet is a prospect and they don’t want to be sold to. Learn the art of prospecting without losing your friends and family. This process takes time and is the core of a salesperson’s life.

There are many more things to consider before taking the plunge and become a professional Realtor. So, If you’re thinking about a career as a Realtor, welcome — just be careful to look at all these aspects and your own personal level of commitment before making the plunge.

For everyone else, if you ever seek out a Realtor to buy or sell a home, please review their years of experience, referrals and ratings. Get a sense of their commitment to you as a client when deciding on who’ll be the best person to serve your needs.

If you have any questions about this or other posts on my blog, feel free to reach out to me via email, Twitter or Facebook, or simply give me a call at 480-650-0075.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , .

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