So, You Wanna Be a Real Estate Agent… How Much Money Will I Make?

So, You Wanna Be a Real Estate Agent… How Much Money Will I Make?

Guest Post by Jennifer Allan-Hagedorn

Jennifer Allan-Hagedorn

As promised, we’re going to help you determine if a career in real estate is right for you and if so, is NOW the right time to jump in?

So… let’s get started! Let’s (try to) answer that burning question every aspiring real estate agent asks… ‘How much money can I expect to make?’

Do you want the good news or the bad news first?

I’ll start with the good.  A career in real estate can make you rich beyond your wildest dreams.  Well, maybe that’s overstating it a bit, but yes, it is perfectly possible to make a whole bunch of money as a real estate agent.  Personally, I made around $70,000 gross ($40,000 net) my first full year and doubled my income every year after until I was over $300,000.  Okay, so that’s not filthy, stinking rich, but I was happy with it.  I imagine you would be, too.

My “worst” year (once I was up and running) was $179,000, and that was the year I stopped working in August because I was a little burned out.

Of course, there are caveats to those numbers; I worked in a market where home prices were above average, the market was strong, at times even booming, and my net income was somewhat (about 40%) less than those gross figures.  Oh, and just FYI – I was selling between 40 and 70 houses a year to produce those numbers.

So, yes, you can do the math and figure out the potential upside to a career in real estate.

Now for the bad news.

According to the National Association of REALTORS, the median gross income of new real estate agents in their first two years of licensure is (brace yourself) $9,100.

The median gross income of all real estate agents was $45,800, while agents with more than 16 years of experience earned a median income of just under $69,000.

Yowsa.

So there you have it.  Your average real estate agent makes around $22/hour (assuming a 40-hour work week) and there’s no benefits package or vacation time included.  A very small percentage makes over $100,000/year.

Will you?  Maybe… maybe not.  The good news is that your income, to a large degree, depends on YOU.  If this is a career you’re well-suited for, if you’re prepared to work hard and smart and with a little bit of luck, you can, indeed, be in that small percentage making a good living as a real estate agent.

Next up?  How much does it cost to go into real estate?

(look for future posts from Jennifer on this subject)

Sell With Soul

Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website www.SellwithSoul.com

Other Popular Posts:

New Real Estate Agent Physical

Protect Your Biggest Asset as a Realtor

The Kitchen Table “Talk” for Realtors

Your First Day as a Real Estate Agent Training Program

Share This:

17 Tips Guaranteed for First Year Success as a Realtor

Trees

17 Tips Guaranteed for First Year Success as a Realtor

I have been studying intensely why some Real Estate Agents fail and others succeed.  I am here to help you succeed in your career. Here are some quick hitting tips I want you to focus on to help you succeed.  I talk more in detail about these tips in my book, my podcast and my video training program.

  1. Six months savings in the bank to cover you at a minimum.  Twelve months would be ideal.
  2. Choose the right office to work for—most important criteria is make sure they have a good training and mentoring program for new Agents.  This is absolutely critical and one of the most important requirements for your success in your first two years.
  3. Start working right away.  Don’t be afraid.  Conquer your fear.  Call reluctance has killed many careers.  Don’t keep making excuses for not calling or getting in touch with your sphere, working floor or hosting Open Houses.
  4. Preview–Preview–Preview:  Learn your inventory.  Local market expertise is a learned skill.
  5. Role play with your Managing Broker, Trainer or Colleagues to practice.  The only way you’re going to build confidence is by practicing.  You can learn from your mistakes with your colleagues so you’re ready once you’re face to face with new Clients.
  6. Identify your Competitive Advantage as a Realtor.  What sets you apart from the competition.
  7. Start hosting Open Houses right away.
  8. Commit to your career as a Realtor.  You are a professional.
  9. Go to work at your office.  Don’t work from home.  Dress professionally at the office, look the part.
  10. Start building your internet presence immediately with your blog/website.  Content marketing is a powerful tool to connect with new customers.
  11. Handwrite personal cards to friends and family letting them know about your new job as a Realtor.  Include at least five business cards in each note you send.
  12. Always remember to listen more than you talk when you meet new clients.  The art of listening will help you immensely.
  13. Start building your database right away–Direct Mail List of your sphere and farm.  Email list (Mail Chimp free when you have less than 2,000 contacts).  Database of your key contacts and champions with phone numbers so you can call.
  14. For your personal life make sure you prepare your spouse, boyfriend, girlfriend, close family that succeeding in real estate is going to take time.  It’s going to take you one to two years to build up your business–set the expectation up front before you start.  One of the biggest stresses for a new Agent could be dealing with those closest to you and if they are not supportive or patient this could end your career before it starts.
  15. In your first year start farming a neighborhood or geographic area.
  16. In your first year start building your content marketing engine on your website/blog.
  17. Don’t Give Up!!  Never give up!  Day always follows night.  The sun always comes up.  Business always turns as long as you stick with it.

 

Share This:

So, You Wanna Be a Real Estate Agent?

 

So, You Wanna Be a Real Estate Agent?

Guest Post by Jennifer Allan-Hagedorn

Jennifer Allan-Hagedorn

Thinking about taking the plunge into a real estate career, huh?  Excellent!

Helping people buy and sell real estate is a wonderful career – one that can lead to tremendous satisfaction and prosperity, or… sadly become an unfortunate blip on the radar screen of your professional life.

Whether or not you experience the success you dream of will depend on a variety of factors, most of which are 100% within your control.  That’s the good news!  The bad news is that many, many, many real estate agent wanna-be’s disregard these factors when signing up for real estate school.  And the really bad news is that the vast majority of these agents, um, fail… and fail miserably.  Even the ones who were positive they wouldn’t.

Let’s not let that happen to you!

Just the fact that you are surfing online for real information about a real estate career tells me that you have more ambition and brainpower than your average real estate agent wanna-be.  So, no doom & gloom here – let’s take a little journey together.

Watch this space over the next several weeks for tips to help you determine if a career in real estate is right for you and if so, if NOW is the right time to make the leap!

Stand by!

(look for future posts from Jennifer on this subject)

Sell With Soul

Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website www.SellwithSoul.com

Share This:

Are You Afraid to Give Your Clients Bad News?

 

When the Truth Hurts: 3 Strategies for Tough Conversations with Real Estate Clients

Guest Post by Karri Flatla

 Park Bench Image

 

Most of us are not very rational when it comes to big decisions in life.  We are imperfect beings with messy emotions and maybe even messier lives.  No one has it all together all of the time.  So why do we expect our real estate clients to be any less human than we are?  Buying or selling a house is a life-altering event.  Our clients deserve some leeway!

No matter how streamlined your systems, no matter how skilled you are at negotiating, every real estate transaction will present a disappointment or two.  This is not a problem.  It is a grand opportunity to shine.

So, how to be a real estate rock (star) when you’re the bearer of bad news?

The first step in being a courageous, eloquent truth teller is to let go.  You can only control your own actions.  You cannot control the other agent, the other buyer or seller, the market, and not even your client.  By letting go of your need to control the entire deal every time, you can simply focus on communicating effectively and with integrity.  This shows respect for your client and in turn, your client will respect YOU.

From this foundation, you can practice and leverage the following 3 strategies for having tough conversations with clients:

  • Manage expectations.  Often we are so excited about working with a new client, we overlook a critical window of opportunity to set expectations.  During the initial consultation, explain scenarios that might unfold and that such situations are normal and expected in real estate.  Also explain that reaching their goal will require some challenging decisions along the way.  Your job is not to predict the future.  Rather you will provide expert guidance at each juncture.
  • Give permission.  Your clients are grown adults who can make their own decisions, but they are naturally afraid of making the wrong decision with their real estate.  You ‘do real estate’ every day.  They do not.  Feelings of fear and vulnerability are paralyzing and will keep your clients stuck.  Be the objective voice of reason.  Validate decisions—and compromises—that will move them toward their goals.
  • Create choice.  When people perceive that they have no choice, they feel cornered and victimized.  Their fight-or-flight response kicks in, and at that point, it’s very tough to ‘find the win.’  If you offer one or two helpful alternatives—or simply a fresh perspective on a seemingly bad situation—your client will feel empowered to make a decision and move forward.  Of course, if the best way forward is to collapse the deal, that’s fine too.  Be upfront about that.  But even then, show your client that by closing one door, another will open, and you will be there to facilitate!

Too many real estate agents operate from a paradigm of fear… fear that their clients will fire them, fear of the deal falling apart, fear of never seeing another commission check, and on and on.  By operating from this fearful place, agents create chaos instead of solutions.

Successful agents are in the solution business.  Real estate clients don’t need any more fair-weather friends.  They need honest agents who will confidently and calmly guide them through the good and the bad.  If you can do this, you will be in your clients’ ‘good books’ for life.

Karri Flatla 2

Karri Flatla has been pioneering her way through the real estate industry since 2012.  Armed with extensive business and marketing chops—and fueled by a passion for excellence—Karri is setting new standards for client care and education.  Determined to ditch the pitch, Karri eschews traditional sales for a more consultative approach.  The result?  Today’s consumer can make smarter decisions about their real estate in a no-pressure, comfortable environment.

Karri is a full-time residential real estate agent with RE/MAX Real Estate – Lethbridge in Alberta, Canada.  You can learn more about her services at www.karriflatla.com.   Thinking of buying or selling in Karri’s hometown? Order a copy of her Real Estate Playbook:  Click Here

“Your First Day as a Real Estate Agent” Online Course Available Now for $39.00

 

Share This:

Protect Your Biggest Asset as a Realtor

light bulb

What’s in a Reputation?

Guest Post by Phil Shell

 

When we first get into the Real Estate Business we are “Bright Eyed, and Bushy Tailed” as my old man used to say to me.  We are so excited, we don’t know where to start!  And then we realize – OMG!  I don’t know where to start!

But then we start to get busy.  We get a little experience and knowledge.  We move through our industry with more and more confidence.  The more transactions we do, the better we become.  We get involved with other brokers from other companies.  Some good.  Some not so good.  Sometimes we get into “Pinch Points” with those brokers.  We “size them up.”  We say to ourselves, “You’re a good agent,” or “I love working with that one,” or “not the greatest, but tolerable” or then “What a Jerk” …or worse.  You know what I am talking about here.  You know…

But we forget.  We forget that they are watching and sizing us up too.  When we are greeted with not so kind behavior, our natural instinct is to push back.  So many times, our initial reaction to a situation is counter-intuitive to the proper action.  Our ego is not our friend.

We don’t have to be right.  We need to learn to be effective.  And to be effective, we must hold our ego at bay.

When we can be effective, and loose the “Right to be Right,” we can begin to build a trusting relationship.  We begin to build a great reputation.  Our reputation in this industry is all that we have.

It is all of our desire to have a long and successful career.  We are going to be around “us” much longer that we will be with any one Buyer or Seller.  We need to protect our reputation with strong vigor.  That is not to say that we are not giving great service and great advice to our clients.  It just means we need to learn to be effective.

If my client is getting upset with the other side of the transaction, I have to ask myself ”What am I doing to contribute to or cause this?”  How am I portraying the communication?

It’s the little things in this business.  In the words of my good friend Mary Gedack, “No matter what is going on in the transaction, there is never a time to be unkind.”  We must mind our reputation at all times.  Without that, we have nothing, and a long prosperous career is very much in doubt.

There are many parts to all of this, the least of which is to find a place of non-attachment.  But more on that in a future post.

For now, remember – Right/Wrong, Good/Bad are irrelevant.  Be Effective and mind your reputation!

  • Phil Shell
  • RE/MAX Alliance
  • Website
  • Phil is the Managing Broker of the RE/MAX Alliance Arvada Office.  He’s had a long and productive career in real estate.  One of his passions now is helping Agents with his “Core Values” workshops.

Phil Shell

Share This:

Top 5 Characteristics of Successful Realtors

Pretty woman business

 

Top 5 Characteristics and Traits of Top Producing Realtors

 

1. “Have-To” “Burning Desire” “Failure is Not an Option” These are clichés, I understand. But it’s very simple, the highly successful Realtors expect to succeed. The positive expectation of being successful pulls them forward to their desired results of closing deals and earning well.

2. They start working right away. They don’t make excuses about waiting: I don’t want to host open houses yet because I need to know the inventory better. I don’t want to get in touch with my sphere because I haven’t closed a deal yet. I don’t want to do floor duty for the office until I know my contracts better. All excuses! Top Agents start working right away.

3. Confident. This is one of the most important mindsets you need for success as a Realtor. Your potential clients want to work with a Realtor who is confident in their abilities. You need to have thick skin and a high level of self-esteem to win the daily battles and struggles of real estate. And if you are not ready then do what all new salespeople do—”Fake it until you make it.”

4. Good listener. When you’re new you get anxious and what do you do to compensate? You end up talking all the time. Just shut up when you’re with your clients, especially in the first meeting. Listen. Highly successful Agents listen, they ask good questions, and they let their clients talk and tell their story without interruptions.

5. Constant learning. Top Agents study, they read, they have mentors, they have coaches and they are willing to take direction. Top Agents learn new skills and strategies and then they apply in the field. They don’t just keep learning. They get out there and apply what they have learned in helping their Buyers and Sellers. Don’t just repeat your first year ten times. Get better each year.

Share This:

New Real Estate Agent Physical

Blog Pic Matt Parker

New Agent Physical

Guest Post by Matt Parker

Yay!

It’s about that time!

About the time you, as a new agent, or a younger agent, or both, get a physical! 

The Real Estate Doctor is going to run you through a battery of tests.  At the end of the test, the doctor will tell you if your symptoms are analogous to the one other top agents had when they started, or, restarted, selling real estate.  Basically, the real estate agent doctor will tell you if what you are experiencing is normal or not!

Ready?  If you thought physical’s weren’t fun, wait until you are done with this one!

CONFUSED LOOK FACIAL ANALYIS – Do you constantly feel confused?  Are you, generally speaking, overwhelmed with new information?  Are you wondering which information is good, and which is bad?  Which applies to you, and, which doesn’t?  Do you feel like a freshman at college?

If so, you are feeling exactly what top agents did when they started.

OLD LIFE MOURNING SYNDROME – Do you miss your old paychecks?  Your old routine?  Do you wonder if you will ever have a routine income again?  Do you miss your old lunch spot and old friends, perhaps even an old sense of confidence and comfort?

If so, you are feeling exactly what top agents did when they started.

INFERIORITY COMPLEX CHEMICAL SCAN – Is your head rushing with thought that you won’t reach the pinnacles other agents have?  Are you wondering what other agents have, genetically, that you don’t?  Do you find yourself staring at a screen and wondering how other people make all those sales?

If so, you are feeling exactly what top agents did when they started.

YOU GET THE POINT HERE!

We all felt like this at one time or another!  These feelings are part of the process of success.  If you have established goals, and are dutifully working to achieve them, in real estate sales, results will follow.  IT TAKES TIME, it also takes failure.  DO NOT let one day, one month, or even 6 months of failure get you down.  Keep going.

If you signed up to climb Mt. Rainier, would you expect pain?  Nausea?  Near-hypothermic cold?  Hurricane worthy wind?

You should have!  These are all a part of climbing a worthy mountain.  The things you are feeling about real estate are all part of this climb, this adventure, this opportunity, that you wanted, and you are invested in.  Don’t quit!  We need you, the one with spirit, triumph, passion and perseverance.  WE ALL FELT LIKE YOU DO.  So keep going.

I will persist until I succeed. In the Orient, young bulls are tested for the fight arena in a certain manner. Each is brought to the ring and allowed to attack a picador who pricks them with a lance. The bravery of each bull is then rated with care according to the number of times he demonstrates a willingness to charge in spite of the sting of the blade. Henceforth, I realize that each day I am tested by life in a like manner. If I persist, if I continue to try, if I continue to charge forward, I will succeed.”         Og Mandino, The Greatest Salesman in the World

 

  • Matt Parker
  • Keller Williams
  • Website
  • Matt Parker is a decorated Seattle-based Real Estate Broker having been voted by customers and peers to be a top agent year after year.  He is a 4-time Five Star Professional, a multiple time national top 10% realtor and has been used for national and local television and print media on NBC, KOMO and the Seattle Times.
  • Matt is the Author of the New Book “The Real Estate Sales Secret”

Matt Parker

Share This:

What is the Best Daily Habit to Guarantee Success?

Sedona Feb 2013 018

 

This is very simple.  Read 30 minutes in the morning everyday before you start your day.  Read a book!  Yes, read a book.

Learn.  Get motivated.  Be inspired.  Read a book which makes you a better person.

A classic Jim Rohn quote:  “Work harder on yourself then you do your job.”

 

Share This:

Be Prepared as a Podcast Guest

Podcast Microphone

 

Here are some tips you will find helpful when you are a guest on a podcast.

1.  Test out your Skype program a few days before the interview.  Don’t log on to Skype five minutes before the interview if you haven’t used Skype in a long time.  A lot of you use Skye frequently so this should not be an issue.

2.  Test out your microphone before the interview.  Don’t use the speaker microphone from your lap top.   It will give you an echoey sound and you won’t come across well.  If you don’t have a good microphone then I recommend this one:  Plantronics USB Headset   It’s money well spent because if you’re going to be on one podcast there’s a good chance you will be on more in the future.

3.  Make sure to show up on time for the interview.

4.  Try to be in a quiet location in a closed room.

5.  Have a glass of water next to you for the interview.

6.  Warm up your voice a little bit before the interview.  Humm.  Practice your Darth Vader voice–“Luke, I am your father.”  Breathe from your diaphragm and feel your voice in your chest when warming up.

7.  Remember to breathe during interview.  Try to be in a sitting upright position.  Don’t sit and lean over your computer, this will not allow you to breathe smoothly.

8.  Let the host lead you through the interview.  What happens is you get excited and anxious with the first question and a lot of people have a tendency to over-talk and give a ten minute answer to the first question when a three to four minute answer is better.  Remember the host is there to help you and they will guide you through the interview with their questions.  A good host will make you shine since you are the star of the interview.

9.  Tell stories whenever you can–this is what the audience wants and what they will remember.

10.  Share your struggles and challenges and explain how you overcame them.  The host wants to take you on the “Hero’s Journey” and show you overcame the obstacles in your career and life.  The audience connects so much more with your struggles and challenges than you just only talking about your successes without giving the story of how you reached your goal.  This is such an important point to get.  A great resource here is Joseph Campbell’s book “The Power of Myth” which George Lucas used as a roadmap for the first “Star Wars” movie.

11.  If you have a product or service you want to promote in the interview wait until you’re at least 3/4 of the way through the interview.  Don’t lead and go into promotion mode too early.   Build the relationship with the audience, let them get to know you and respect you then you can share your product or service and explain clearly the value they offer to the audience.

12.  Remember who your audience is on the podcast.  A good host will tell you this up front so you can add value to the audience based on your expertise.

13.  Listen to at least two other interviews of the podcast to get a sense of the host’s style and the mood of the podcast.

14.  This is a simple tip for speaking–try to incorporate the three E’s whenever you can–Educate, Entertain and Empower.  This will help you in all of your public speaking.

15.  If you are used to using profanity and cuss words and you want to do so in the interview make sure to let the host know this up front.

Share This: