Chances are you are addicted to some of the HGTV and Bravo real estate reality series. Shows like “Million Dollar Listing” and “Love it or List It” are just some of the popular things to watch these days. And as entertaining as they might be, they also showcase the three biggest challenges faced by real estate professionals in every market, across the United States. Want to know what those are? Read on, friend.
1. Unreasonable expectations
All too often, buyers and sellers enter into the real estate game with unrealistic goals and expectations, and it is the real estate agent’s job to bring those lofty expectations down to earth. Funny thing is, this happens in every market and every price point. Sellers often believing that their price is justifiable (when it is far too high) and buyers not wanting to pay what a property is worth. Great professionals are able to successfully manage these expectations from day one, to help avoid conflict down the line.
2. High cost, low return
Real estate can be a high cost, low return business if the professional doesn’t manage it properly. The hours spent negotiating offers, gas money invested in showing property and time to research and provide clients with the best information can lead to wasted hours when a client makes a snap decision to change their mind about buying or selling a home. Real estate professionals work on a 100 percent commission basis, they are not salaried employees (in most cases). This means that your selected agent does not earn a paycheck unless you close on a property. Because of all of the things that can go awry in a real estate transaction, it makes it a high cost, low return business for most of the professionals you know, one reason that the average agent won’t clear $40,000 a year.
3. Getting business
Real estate professionals today also have to be master marketers – or have the funds to hire one. Just like any other small business, a real estate agent has to have time and money to perform lead generation activities. In most markets, there is a solid real estate agent presence, making earning business for newbies quite a challenge. However, one reason that real estate agents get a bad rap, by and large, is largely due to the fact that because of the sheer number of those holding a license, there are plenty of bad, inept and inefficient agents out there. Consumers need to spend time getting agent referrals, then Googling and evaluating agent’s online personas before pulling the trigger to hire them.
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