Dear Rookie Who Might Happen to Stumble Across this Post,
I remember my first year in the real estate business vividly. I had been co-owner of a small printing and marketing company, and most of our customers were Realtors. After doing that for awhile, I began to realize that the people making big money as agents (at least that was my perception) weren't necessarily all that spectacular, and I had a revelation that real estate was not rocket science. Why not just get licensed and sell houses?
"List to Last!", we were told.
"Buyers are liars." That one started to seem more accurate at the time.
Read this book. Check out this program. Visit this seminar. My head was spinning.
While I am certainly glad that I chose this path 11+ years later, I still look back on that first year and wonder how I made it through.
I made about $13,000 that year, although it would have been more if I had a better and clearer understanding of human behavior as it pertains to real estate. That being said, my partner and I lost far more clients than you could imagine, usually for reasons beyond our control.
One musician client was the tour drummer for a big-name act, and he was loyal and ready to purchase from us. Unfortunately, his manager stole his money and left the country.
We worked with an older couple in west Austin who chose the luxury home that would work best for them, then they were forced to divert their attention and funds away in order to help their son in a custody battle with his ex-wife.
There was the lady who spent a ridiculous amount of our initial months looking for the perfect place, only to decide to stay put.
I could go on with more examples, but I won't.
The point is, starting in real estate is tough, no matter what your background is. You are starting a business, and as such, there are a lot of variables involved. However, if you can plug away and manage to stick around for more than 2 or 3 years, you will likely begin to make some good money.
There is an intangible quality of stubbornness or persistence or hunger that you can almost feel with some new agents. These are the ones who will make it. I was that guy back in 1997 as a rookie. I even wore a business suit to look a bit older! However, my clients would often give me the business because they could tell that we were "hungry".
I am in the process of hiring for our company as we speak, and I am amazed at some of the resumes that I have seen and interviews that I have conducted lately. I am a great mentor/coach/teacher, and thankfully over the years I have developed a keen sense of what it takes to make it in this business.
I have built my business on my personal integrity, and I would advise you to do the same.
Our business is growing nicely, but it could definitely be better this year. When the national economic scene makes a turn for the better, we will be poised to do very well.
The same goes for you - if you can make it during these "lean times", you will come out the other side and wonder how it ever seemed so difficult. You are up for the challenge.
If you ever have questions, feel free to call me. I don't mind, and I am a nice guy. Just ask anyone who knows me. My cell phone number is 512-796-7653 and my email address is jason@austintexashomes.com.
Thanks for reading!
If you enjoyed this post, why not connect with me elsewhere or subscribe via email?
If you're looking for a home in the Austin area, you can also visit my primary Austin real estate website at www.austintexashomes.com. If you're interested in social media training, visit 210 Consulting. Thanks!
Good advice. I hope they appreciate your honesty as much as I do. It's not an easy job but I cannot imagine doing anything else.
Jason,
Your assertion, "Our business is growing nicely, but it could definitely be better this year. When the national economic scene makes a turn for the better, we will be poised to do very well."...sums it all up!!! Thanks, Fran
Jason, you are so right. Some days I don't even want to get out of bed, but all I have to hear is "I want to buy" and bells go off. It's not a matter of needing the money, so it's not like people that really need to close are better (in fact the desperation is bad), but there is a hunger for the deal and a competitiveness that can't be beat in real estate.
Of course I always joke that if you want to see something funny put me on a treadmill next to a 20 year old....
For $13K a year, it probably would have been a lot less stressful to get a job at the mall! Obviously you learned some hard lessons and learned them well - you're an example to the community.
Good Post, Jason. I can relate to your stories about clients who you spent a lot of time with looking for their perfect home and then they decide to stay put or have a reversal of fortune in their own lives and can no longer afford their dream home . . .or they were dreaming in the first place.
Regards,
Lloyd Nichols
So Jason, you think I could have an interview when I come out? I don't know if I have what it takes though...
Thanks for the encouragement!
Jason, Another good post from you. My first year in the business was pretty mcuh a carbon copy of yours. I had a couple that I showed every ranch style house in the area, the husband would stand at different places in the yard and pretend to be a tree so the wife could see if they could have privacy. They ended up staying where they were. A couple years later, they did buy and sell, but by that time I had lost contact with them (no one told me to stay in contact forever- or at least until they tell you to stop) We have learned so much since then.
The point is, starting in real estate is tough, no matter what your background is.
Hi Jason,
Thanks for the warning! :)
Well said! It is the advice from the old timers that keeps me moving foreward! You are also right, it isn't an easy business, but I feel it can be very rewarding.
This is good information. I like the way you put it when you said "you are starting a business." Many people don't realize that when they get into real estate.
Good post Jason. You descibed situations that all of us face working in real estate. Thanks for being honest about your experiences.
Good post as wel as being right on target as usual. Thank you for putting in writing what we are supposed to know but have a hard time remembering. I tend to move beyond remembering the ones that fly south and do well with the ones who decide to play the game.
Jason ~ Thanks for sharing your stories. Real estate is a tough business in general, but you are right that starting out is tough. I started over 5 years ago and I remember selling 2 properties in my first 2 months. I was so stoked until I spent the next 8 months with no sales :(
I understand losing clients due to "reasons beyond our control". I guess it happens to everybody. I'm glad that I hung in there... :)
Jason , You really have a wonderful way of being honest and forthright. I have really enjoyed your posts lately and can relate to the first year feeling of overwhelming information and learning curve. Tenacity and a little lot of reserves in your bank account is also something to consider in that first year.
Please keep these posts coming, it's great information and encouragement for all!
Jason,
Good post. I made $8,000 the first year. It was slow and I decided to take courses to educate me. I got my GRI the first year and then I started working on my CRS, got my ABR, and am now working on e-Pro. I don't think you can get too much education, and the time to get it is when you are slow! Great post.
I've been a broker for 30 years and have seen so many twists and turns in the market. The past few years have been the most remarkable. The reasons are many; Technology, Mortgage Meltdown, Short-Sales, Foreclosures.
Integrity & Honesty are paramount for cotinued success. Being stubbord and persistant- hungry lets people know that we want the business.
Just what the market prescribed a good positive attitude. Thanks Jason!
Honest and earnest post, Jason, it is hard for many people to convert themselves from having a job to owning their own business. I think that any agents who start this year and make a living will be in for life.
You're just a baby! I don't even want to remember those first couple of years, let alone the first one! It's alot tougher than people think. I remember those phrases (alot more too) about sellers & buyers that have still stuck in my head no matter what. List to last was the 1st one. The other was "you can't get a price reduction if you don't have a listing - what are you doing to get one?" Ahhh, the old days!
One other thing I thought I would add is to NOT take things personally in your business. With all of the changes that take place when dealing with the public, you have to be able to gather yourself to keep going. I am learning from each transaction not to wear my feelings on my sleeve as donkey said in Shrek. Great post and thank you.
Good post, Jason. Folks have to have the drive and desire to succeed even when times are rough. This is a hard business to break into sometimes but it's a great life.
Jason, How great that you are willing to share the ups and downs with newbies in RE or really in any business.... It's going to take some perseverance to grow a new biz.. Thanks so much!!
Dear Jason:
Veteran of over 30 years to veteran;
I wish I had the information we have gained over the real estate cyles when I first started too;
however that's what makes our industry so unique and exciting...ever changing and FUN!
Thank you, thank you, thank you!
I wish more people would encourage new agents than kick them down. It is a hard time to start in real estate. It may take much longer than it has in the past. No one should start and think, this is it. Every new person needs a plan and a back up plan.
Thanks for sharing your story with us.
Great information! My first year was a disaster! But year 2 was better and now that I am in year 3, I am still hanging in there. Let me add this though....there has to be something besides money to motivate you in this business. I love helping people, always have, and the possibility that I might help someone drives me to work every day! Money? Gotta have it but it can't be the only thing I go to work for.
Thanks so much Jason! I knew there were stories out there like this and I am glad to have stumbled upon yours! My husband and I are almost like rookies starting out (We have been "part-timing it" for years with few results, so we finally decided to dive right in and go full time. People are calling us crazy, but we know we're hungry so we WILL survive.) I like finding stories like yours... they really help us stay focused. So, thanks again!
Dianne :)
Jason, this is a great heartfelt post with some good down to Earth advice for rookie agents and others who've been in the business for a while but come upon slow times. Business has been slow for a while but the tide has turned recently. Meanwhile during the slow days, I've had the chance to obtain my broker's license and build up my business systems so that I'll be "poised to do very well." The current Makeover2Takeover contest has been a huge boost recently!
Thanks Jason.
Jason, It is very hard to get started in this business. I was fortunate that I got into the business as a property manager so had a steady income in the beginning. Then I came out of the box swinging and managed to have a 13 year run with at least one closing every month.....until this year. This year has been difficult. BUT......it's starting to pick up. I revamped my focus to short sales and investor business about 4 months ago and now the business is pouring in again. So I hope to have a huge finish to the year.
The key to success is to find a niche and then work it hard...every day! Never give up. If folks stay focused and go to work every day good things will happen. I agree that folks that make it through this market will be very good at what they do and will be positioned to really excel when the market changes. And it will change.
Well done Jason.
I really appreciate that you make no bones about the tough side, but give that light at the end of the tunnel to those with perseverence. You have to have a thick skin and a whole lot of stamina to get through those first few years. In my crowded market, I'm still working to push through.
Perseverence is the key, as evidenced by your success. You have come so far! Your new hires will be lucky to have you, J.
P.S. Jason is not kidding about helping out, people. Call him -- he is a nice guy.
Jason, great advice and great words of encouragement. I wish I had heard all of these words when I first got started in real estate. After about 6 months (and not a single sale!) someone told me that I could expect to wait about 12-18 months before I could expect a sale. Luckily, I beat that time frame, but it is important to know what we are getting into when we get in to it.
Great topic. I'm in my second year and while I am doing okay, I was really expecting to do fantastic. I hope I can hang in there until the market picks up. Lots of disappointments though, such as when a client decided to lease a condo for a year (and pay an exhorbitant monthly HOA fee) rather than purchase a home when interest rates were really low. I keep wondering if it was maybe something I said or did or didn't do... I keep plugging along and hope my efforts pay off. I have two listings that have been floundering on the market for a while even with several price reductions. It's downright embarassing! Any words of advise from anyone, besides the obvious price reductions??? Thanks for listening.
Jason:
Congratulations! I know how hard you have worked to get here and I really do appreciate the dedication and commitment. Keep on blogging you are the new Mc Blogger!
Great perspective Jason on growing in the business.
Jason,
Thank you! This is my first year in real estate and I can relate to your story! It has been a difficult year for me, but I am dedicated and am willing to work hard to build my business.
Hi Jason,
Thanks for the well written points on making it in the business. Far too many Realtors just don't follow through.
I got into real estate 3 years ago and I was very surprised at just how difficult it is to make it in the field. I've managed to overcome more than a few lost deals and indecisive clients to stay in the business. Follow through and treating my practice like the business that it is has been the difference for me.
A solid technology platform also helps. It can be very difficult to wade through tech products to find ones that work for you. When you do, they are worth their weight in gold.
I am enjoying my best year yet and look forward to the future.
Jason, as always, your post is one of the first I read each day. You have great insight and communicate your message well. It's refreshing to see veterans willing to share their knowledge and experiences rather than feel threatned by the new kid on the block.
There is nothing like Real Estate stories. What doesn't kill you makes you tough. And a happy ending is what keeps us going. Thanks for sharing.
Yes, You are a nice guy! :) I think this is a great blog and sage advice. Real estate is a very tough industry and persistance pays off. You have to want it :)
Cheers,
Cindy
Hi Jason,
Great post. Thanks for the encouragement. Persistance pays. This is an incredible career. It truly has its up and downs and challenges, but I don't think I have ever grown as much as a person as I have since going into Real Estate. I'm now in my 4th year and it hasn't been easy. Thank God for a very supportive and understanding family (esp. my wife). My intuition also tells me to hang in there, limit costs, innovate, ask for help (we don't have to do it alone) and remain flexible. Keep your eyes on the prize!
..my partner and I lost far more clients than you could imagine, usually for reasons beyond our control.
Jason- losing clients for reasons beyond our control is not limited to rookies. I think you made made the most relevant point - perserverance wins. Thanks for the encouraging post.
..my partner and I lost far more clients than you could imagine, usually for reasons beyond our control.
Jason- losing clients for reasons beyond our control is not limited to rookies. I think you made made the most relevant point - perserverance wins. Thanks for the encouraging post.
Sorry for the duplication - just realized I wasn't signed in
Well said Jason! This is business is not for everyone as many have discovered during the post boom crunch- unless you are financial able to weather the storm you must be in it to win it.
Good luck and Sell Well!
Good post....I was in the business and too dumb to know any different when I started. The mortgage rates went from 7.5% to 9.5% w/in 3 months. Everyone wanted to jump off cliffs, but I was out getting business steadily. Here it is 14 years later and I'm kicking it.
I've been in the business 10 years, and I had a little different experience when I started in the business - I had a great first year. It's been these last couple of years that have been tough. I've still managed to make a very good living, it just seems like a daily struggle to make that happen. I, too, have built my business on my integrity, and I think that's the only way to do it. When I mentor new agents, I let them know how important this is. I think it's all worth it. I feel the hard work I've put in over the last few years during this downturn will position me to gain a little market share when this economy finally sees some improvement. Good luck to you!
Hi Jason, thanks for the encouragement to those who are still in the beginning phases of real estate. I've been on the lending side of real estate for a year and a half now, and I know what you mean about all the seminars, books, and programs "that will improve your business". It is mind-boggling!! But, with each experience, we learn a little more about the business, ourselves and others. And as we learn, we begin to recognize when something is going to steal our time, and we get better at prioritizing. I still feel like I get pulled in a lot of directions, but I'm getting better at staying focused on the important things. Great post!! Thanks again for the reassurance!
I have hired new agents, and seasoned agents.
From my experience, I have learned to look at their eyes to see whether they will blossom or wilt.
Do they have the eye of the tiger?
Rocky, the movie character created by the magnificent Sylverster Stalone, lost the eye of the tiger in Rocky III, and got his tail kicked. Even Rocky lost his edge when he lost the eye of the tiger.
If an applicant has the eye of the tiger, they will blossom.
I was that young lad with the eye of the tiger in 1990, and sold $5million+ my first year.
Its nice to hear positive messages coming from people in this industry. To Jason and all the respondents - KUDOS - I think we can have a profound affect on what the public perceives as "the market" if we all stay positive! Good luck to all - its whats best for all relators!
SJ
Great blog! I've just finished my first year and it has been horrible. Thank goodness I've got a good retirement income or I certainly would have given up. I know this will eventually be a great second career. I'll continue to stay positive. Jason, thanks for the re-enforcement.
jgf
Geez Jason, I got my license October of '96...how closely our paths have parallel on so many levels! :)
Jason, do not let the State of the Economy effect your business at all. After all, Texas is a country to itself...there's no problem here~Later in the rain~Deb
I was informed that over 3,000 REALTORS in the Austin area made $0.00 last year. I bet they'd be jumping for joy over your 1st year salary of $13,000!
I too remember my first year and didn't even make a sale, but thanks to the advice of a veteran of 28 years I stuck it out and boy am I glad I did! It has been hard at times, but you are right at about year 4, I think I got to the point I could survive!
But, that first year was a bad one, was doing everything right, but like you things didn't click in to place! But, I had owned many businesses throughout my life and I knew it required work and capital and lucky for me I had both. But, had I not I would have been one of those poor agents that didn't make it in this tough business.
No matter what people continue to think, being a Realtor is not an easy career choice!
JASON - Being a rookie agent is usually a bit uncomfortable. Even if you are highly motivated and trained, there is only one way to get past being a rookie...experience. It's the one thing that cannot be fast-tracked. Good idea to share this with rookies that may be feeling overwhelmed.
I am so Thankful that I found Active Rain and the people here that give such good advice and share not only from their experience but from their hearts.
Jason, thanks for sharing the school of hard knocks. It does take time (like any business) to launch the business to success.
Jason,
Great post, some of those types of stories sound oh so familiar. Funny the things we remember about some of our first transactions. I am sure we all have our favorites. Thanks for sharing.
Jason,
I'm a newbie, divorced female, 59 years old who never really had to work. I'vebuying a dealth with many Real Estate agents over the years, buying and selling my own property, and like you thought Real Estate is not "rocket science", if they could do it, so could I.
IT'S NOT EASY!!
I'm so thankful for people like you who continue to encourage new agents to persevere, and also to continue their Real Estate education. Something I haven't done yet, but will pursue.
Thanks for the encouragement.
Ahhhh - the memories for that 1st year! Thanks for reminding me of how the hard work paid off!
Tina in Virginia
hi Jason, i am all the way down in wonderful australia, and have been led to this topic because i am currently putting together a book , revolving around intervies conducted with agents who have had huge success in their first 12-18mths within our real estate industry,
we do things alot differently down here but at the end of the day we all can relate to the long hours, rejection and exhiliration which comes with this most unique business. i love it and most of of i love the people, if you love people you will succeed, if you love money i dont think you will, the success and the monetary benfets will flow through just stick with it and never do the wrong thing by a client.
cheers and good luck for the future
Good post - sounds like I have a lot to look forward to.