With Australia’s thriving market, the real estate industry is becoming hugely popular place to work. Statistics show that as of January 2016 224,000 people worked in real estate, a jump of nearly 5% from the year before. A recent article in the Guardian also reports there has also been a massive increase in people working in real estate as a second job.
But wanting to become a real estate agent and being capable of staying afloat are two different things. Many new real estate agents don’t make it past the first 100 days. You need to be prepared for hard work, long hours and put strategies in place to handle the financial ups and downs. We look at some ways you can maximise your success.
How To Stay Afloat As A New Real Estate Agent
Start with rentals
Starting out in rentals is a quick way to get the cash flowing because transactions happen quickly, often within a week. Give your landlords excellent service and they’ll return year after year, and if they want to sell you’ll be top of mind. They may also know someone who’s looking to buy and refer you.
Create financial cushion
In real estate you have no fixed income, which is incredibly difficult for an agent starting out. So you need to protect yourself financially for those rainy days. In realtor terms, a rainy day = no listings, no buyers or sellers, no referrals and no successful leads. Not surprisingly this can send new real estate agents into a panic!
One way of easing the stress is to start an emergency fund to cushion you financially and psychologically when you’re having rainy days. Don’t live it up large when you do get a big commission either. Even experienced agents are careful about what they spend their money on, and keep track of expenditure.
Take on modest clients
Everyone wants that $1 million listing but realistically to stay afloat you need to take on bread and butter clients. You may earn less on a deal but small commissions add up allowing you to pay your expenses, and save for those rainy days.
Invest in ongoing marketing
According to top agents keeping on top of lead generation marketing is imperative. This applies when the pickings are slim, and even when you have listings. Think of marketing like car maintenance. You service your car so the engine keeps running. Do nothing and it’s more likely to conk out in the long run.
You need to build and nurture your network with daily calls, email marketing and social media. Top agents also use online lead capture tools to grow their listings. By continually checking in with people you become front of mind. Even if they’re not planning on selling right now, they may in the future or know someone who is.
Don't get discouraged
Expect a lot of trial and error when you’re first starting out in real estate. But it’s vital you don’t get discouraged by short term failure and focus on the big picture. Recognise each passing month and year will give you more and more knowledge. If you have the energy and desire to succeed you’ll get the results you want. Be confident in your abilities!
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