Most people seem to think that being a realtor is one of the greatest things you could possibly do to have a great lifestyle and lots of money. Well the truth is quite a bit different since every realtor out there is basically a salesman that gets paid only from commissions from the properties they sell.
This makes the industry ultra competitive because if you don’t sell any homes, you don’t eat. There is no base salary, and no one is sending you prequalified buyers and sellers. It is all up to you. That is what makes the real estate business such a dog eat dog industry. You have to be aggressive and work really hard to get the sales.
If you are trying to attract buyers, you need to get them to your website instead of one of your competitor’s websites. To do this you need to spend thousands of dollars in search engine optimization, facebook ads, and other types of online marketing. Once they decide to use your website to search for properties, it could be months before they are ready to pick up the phone and call you to arrange a showing of a property.
If you are trying to get listings, the process is a bit different. You need to pay hundreds or thousands of dollars every month for flyers, and bus benches in a particular area. This is called farming an area, so that people in that area become very familiar with your name and face. That way when they are ready to sell their home, hopefully you will be the first person they think of calling. That is of course if they don’t have a family member or friend that is a realtor. Even if you are lucky enough to get in the door to give a free market evaluation, you will likely be competing with at least 2 other agents for the listing. This is very stressful and sometimes causes realtors to do whatever it takes to get the listing.
If you have ever listed a property with a realtor, you may have allowed your realtor to host one or several open houses. Well usually these don’t result in your house selling. Mostly it is a way for your realtor to market themselves and possibly get more buyers that they can take out to view other properties if the buyer didn’t like your home.
It is incredibly important to use a hard working and ethical realtor whether you are buying or selling a home. Ask friends, family, and co workers for there recommendations and read online reviews. Do not rely on testimonials on the realtor’s website. These are easy to fake. However, reviews from Google and Yelp are pretty hard to fake and if they have at least 5 reviews, you can usually get a good indication of whether or not they are good and trustworthy.