For a real estate agent to have a successful career, it is important to take the RIGHT advice. Despite the fact that real estate agents are considered essential workers, most real estate agents quit their profession within the first five years (a whopping 87% according to a 2014 report done by NAR).
The professional real estate industry is incredibly competitive, here are 10 lies that all real estate agents should avoid if they want their career to last:
Let's dive into this further and discuss why these misconceptions are important to avoid.
Pricing a home above the market value is rarely a good idea. When a buyer looks for a house, they look for a house that is within their price range. If an agent lists a client’s home above the market price, the right buyer will likely never notice your house for sale.
What will likely happen to a client’s overpriced home is that it will be passed up by potential buyers who look at your client’s home and notice that it is not as nice as other houses within the same price range.
It is rare that anyone makes a lowball offer on a house, so the best choice is to price the house for its market value. There really aren’t many positives to selling a house for more than 3% higher than its market value.
Word-of-mouth is still incredibly important, but in order to reach full potential as a real estate agent, an online presence is key. Creating a website as well as at least one social media page such as Facebook will allow more clients to be able to access a real estate agent in whatever way they feel necessary. Having a social media presence is one of the most important marketing strategies for real estate agents.
Additionally, it is easy for a real estate agent to post available homes that they have for sale on their website and social media pages, thus making their available listings reach a much larger market.
While a phone call is the most professional way to get in touch with a client, it is important for a real estate agent to make sure they are available to all of your clients (no matter what type of communication they like to use).
Some people genuinely do not like talking on the phone, and successful real estate agents will try the best they can to communicate with their clients. With technology opening new doors in the world of communication, there will be clients who prefer texting and email.
I’m sure there are some real estate agents who aren’t very kind to their competitors and who will do anything to try and steal their competitor’s clients. Well this might work for a while, predatorial real estate agents eventually build a bad reputation and their name will more than likely be dragged in the mud (and their business will likely suffer).
Saying “yes” to everyone is a great way for an agent to be weighed down and their work will suffer (or perhaps another area of your life will).
I know that saying no as a real estate agent is counter-cultural. However...
A good real estate agent will say “no” to the overpriced listing that will waste time and effort.
A good real estate agent will say “no” and be honest about what is manageable.
Part of a real estate agent’s job is delivering bad news- such as not being capable of selling a home for their asking price or that they can’t meet to look at homes on a Sunday morning.
Unless a client needs their home sold quickly, an agent should not push their client to get their home on the market immediately.
A good real estate agent will create a positive experience with clients by allowing them to make the decision on when they want to put their house on the market.
By creating a positive experience with their clients, good real estate agents will be recommended to people and therefore will receive even more business.
It’s always a smart idea for real estate agents to have their current real estate clients as their #1 work priority, but previous real estate clients are also still important!
Just because an agent sold their former client a house, doesn’t mean that they will come back to them again.
A good real estate agent stays in touch with their old clients by sending them the occasional email as well as birthday cards in the mail and even current houses they have on the market.
Some clients may have put off important repairs on their homes because they know they will be putting it on the market soon. An agent may notice that these repairs need to be made when doing a walk-through. It is always important to tell clients that once they sell the property, all of the defects need to be disclosed to the buyer.
Since a client’s home repairs might be more expensive to fix later (and probably will come off of the final sale price of their home) it is wise to make the repairs before listing the home on the market. Furthermore, a home that needs major repairs may turn people away from purchasing it together.
Unfortunately, real estate agents can often become targets for lawsuits.
Some common lawsuits that a real estate agent can face:
The buyer files a disciplinary grievance
Buyer sues because the agent fails to disclose property defects
Agent breaches the contract
It’s important that a real estate agent never compromises their ethics to make a sale.
As more real estate agents are being victimized, making sure to follow the proper safety measures if you are a real estate professional is imperative. If you are an agent, make sure to prepare yourself and know what steps to take to protect yourself in case you are put in a dangerous situation.
According to Adam Contos, who is a former police officer and the current CEO of a Denver-based Remax:
Becoming a real estate agent can be a rewarding and successful career path. If you are thinking about becoming a real estate agent, or if you are struggling as an agent, follow the above tips to help you succeed in your career.