Is it time to quit?

When you decided to take the leap of faith to become a Real Estate Agent or Broker, did you ask the right questions of yourself or others? Its true that the life of a real estate sales professional is probably one of the hardest lives around, but, did you ever stop to think about why?

The day in the life of a real estate sales professional, and that of a supervising/managing broker are very different, and yet very similar. For those out there that don't know the back end of this industry, let me shed some light on the secret life of a real estate professional.

As a lay person, the life of an agent might seem glamorous, but that's what many of us just want you to believe. Whether that's to advertise our success, or if its just personal, I'll never know. What I can tell you is what is expected of a potential agent from decision to start the pre-licensing classes to finally getting their broker's license.

I live in the great state of Texas. Where people from all over the world may think that Texas Landowners reign supreme, and oil flows like water. Unfortunately, these stereotypes are long gone. Texas is indeed a large state, and our homeowners, while there are a great many that do own large swathes of land, most don't. Most Texas residents live in suburbs, or even large to moderate sized cities. We have a thriving rental (apartment and condo) leasing industry here. One thing though is correct. When someone purchases a home here, they expect certain rights and privileges as a homeowner/landowner.

In Texas, like almost every other state, there are 5 essential rights that every homeowner/landowner get when they purchase. They are known as the Bundle of Rights, and they are:

Right of Possession:

This is the right to possess, or to own property. This is also a right that can be leased out in the form of a Leasehold Estate, but that's more for a Principal's of Real Estate class. Let's just say that people can purchase this right separately if they so choose.

Right of control:

This provides the homeowner/landowner the right to control the use of their property within the bounds of federal and local laws, and restrictive covenants placed upon the land prior to their purchase.

Right of enjoyment:

This right permits the owner to enjoy their property peacefully, and without interference. If there is a nuisance, this also gives the homeowner/landowner the right to seek legal remedies to stop the nuisance.

Right of exclusion:

Homeowners/landowners have the ability to say who and who can't enter their property, for what reason they are allowed to enter, and for how long they are allowed to be on the property. At any time the homeowner/landowner can ask someone who they don't want there anymore to leave, and at that moment, that guest is not a trespasser.

Right of disposition:

The homeowner/landowner gets to also dispose of their property the way they want. This means they can sell it, will it to a friend or family member, gift it to whomever they wish, or lease it out temporarily. They can also abandon the property if they wish, but we rarely see this as real estate sales persons.

These rights are paramount to all persons who own real property in Texas, as well as almost every state in the country. However, Texas, as a state, has a very high expectation of what is or isn't considered part of these rights. So much so that anyone who wants to be an agent, and you do start at the agent level, you must take 180 clock hours of education before you are can be considered able to sit for your license exam. The other expectations are that the person is responsible enough to assist a consumer in disposing or assuming a property. That means that the prospective agent must complete a credit and criminal background check to ensure that they will handle matters concerning other people's finances with respect and dignity. They also have a criminal background check because as a real estate licensee, they will be responsible for showing properties that may or may not be supervised.

Once the prospective agent is approved and they take their licensing exam, they are required to pass the exam within three attempts for each section of the exam, or they will be required to take additional courses to ensure they know the material, and will then be given an additional three attempts. Say the agent passed their exam with flying colors the first time around. Now what?

Once the agent has passed his/her exam, and has been issued their license, they actually can't sell real estate right away. See, as a sales agent, their license isn't actually granted to them. They have to be supervised by a broker of real estate. Now, anyone who holds a broker's license can sponsor any agent, but that doesn't mean that just any broker will do. Oh, no! You see, supervising a brand new agent comes with liabilities that not all individual brokers are either equipped to or wish to assume. So these new agents run along to find a brokerage to join. Many of them are fine, upstanding institutions, and others... They get the job done. Don't think for one minute that statement is in any way disparaging! Quite the contrary! Remember when I said that the owner can dispose of a property in any way they want? These brokerages help owners dispose of properties in ways that are not always "mainstream." In many ways these offices serve the needs of a very specific community, or group of people, and when I say they "get the job done," that's exactly what I mean. They assist buyers and seller navigate the journey of purchasing and selling real estate in the manner which makes sense for them, so they get the job done.

See, the thing is, at this point the agent has been lost in the whole thing. See, at this point, many people forget about the agent, and begin to think about the total production. What they don't know, and what every new agent and all seasoned agents and brokers knows is that once you've got your license, your training isn't complete yet. Oh, no! Now you have an additional 90 clock hours of classes you have to take, plus an additional 8 hours of legal updates, and if you're a member of trade associations, you've got law and ethics trainings for them, orientations, and technology classes that you've got to take. On top of that, you now have to "find" your own clients.

I'm a seasoned broker. Which means, that on top of those 98 hours, I have years of experience, and continuing education classes I've taken, and when I got my license the total number of hours I had to have was no less than 900, plus I had to have completed a certain number of real estate transactions, and been active in the industry for a minimum of 4 years prior to applying for my broker's license, which is in itself a year long program. Now, I have well over 900 hours, and years of experience in this industry, does that make me a "Top Producer?"

Short answer is no. You see, even I see people who call themselves "friends" list their homes with other people, and use other agents far less skilled in the purchase and lease of properties every day. Could they have called me? Absolutely, but they didn't. Why? I'll never know, but what I do know is that regardless whether they used my services or someone else's, they are people who have the right to dispose of their properties as they see fit, and while sometimes it can hurt, its their right, and they don't have to make excuses for exercising that right.

This is a hard thing for a new agent. They hear "You're too new." "I want to work with a broker." "What can you do that so and so couldn't?" When they finally get someone they can call their client, often times its a buyer, or a tenant. The agent may not necessarily know what to do, what paperwork to complete, or even how to create a property search, or what to show their new client. You see, what they need is training, and in many cases, their brokerage doesn't have the resources to properly train these new agents.

We call it "Lead Generation" in the industry. What it is, is the generation of names, phone numbers, email addresses of people who are more likely to use our services for us to begin advertising to. What the brokerage may lack is fair game for third party companies. I assure you, your average "new agent" have more third party companies calling them to sell them "leads" that may or may not exist. These companies guarantee they'll send them names and contact information for a monthly subscription, or contract fee, but that's all they guarantee. By the end of the agent's first year, they may have not earned a single client, but spent tens of thousands of dollars.

The beginning of their second year, ha! I laugh, but they now have learned the value of a business plan, marketing plan, and by golly they're going to get their first closing. Now, its 6 months into their second year. Guess what? They've only got 6 months to renew their license for the first time. Remember when I said they've got 98 hours of education they need before their first license renewal? You got it! They've postponed that because they were spinning their wheels to get a client, and a closing to pay for all this.

The majority of agents will get their renewals squared away, but far more than I'd like to count won't. They'll be playing the game to get that next client, until they find one day their license has been suspended, and they'll pay a deferral fee to renew and defer their education for a month or so. Then they'll get to work on their classes, get renewed and hit the ground running again.

This is an endless circle every two years, an agent is struggling to get someone to show a property to, or list a property for other agents to show to house hungry home buyers, and get that education so they can renew their license, just to do it all again.

Now, if I were reading this article, I'd be thinking, "Yup, this dude is jaded beyond belief." You're probably right, but what I will tell you is that there is a silver lining to this story. Most people will never say anything good about a business, real estate professional. If they do, more often than not a consumer will skim over the positive comments to find that one negative thing, and latch onto that one detail and swear they'll never work with that person. You know what? Its that one person who put their trust in that agent to do what others couldn't. That one person who put their faith in that one agent, that saw their real estate dreams come true. They were too shy to leave a review, but that one transaction changed their life.

You see, in this industry I see people who are completely and totally ungrateful. The come with expectations of purchasing a home that has far higher expectations than they can afford. I have phone calls from sellers who have out of this world expectations. From listing their home for close to free, but want to be on the cover of the best magazines without paying the fees that allow me to market their properties in those magazines. Most of these people are turned away to find agents and brokers who will better provide the services they want, or they just end up selling the house themselves and are too proud to reach back out for help, thinking I'm not flexible.

Is now the time to leave Real Estate? For me? No! Even though I wake up, and check my email to another 300-400 new emails from marketing companies promising the world and delivering nothing. Phone calls and other requests for information they never intend to act on. No, that's not the reason I stay in this business. The reason I stay, I care, and I love what I do, is because there is a person out there that needs me, and the services I provide.

From the information I've given you, I want you to remember that investing in yourself is by far the best financial investment you will ever make. Whether that's a home, your education, or your own personal enrichment. Your investment into yourself will be what sets you apart from the countless others who gave up.

The top three reasons I've found that agents and brokers leave this industry are pretty similar to all industries, 1. Low or No pay, 2. Low or No support, and 3. Lack of communication to and from their clients. In this industry, if you lack one, you lack all three. Its all or nothing here in real estate.

My fees have always been reasonable and negotiable, regardless of the market conditions. My fees have always been a percentage of the sales price. That percentage has always been negotiable, and the lower the sale the lower the expense. The higher the price, the harder it is to market to increasingly more discerning eyes, which drives up the cost of marketing. However, my fees have always been flexible and negotiable.

As far as low or no support. I've always been a self starter. I've always been a leader, and team builder. Often times, you don't get the support you want, but I don't look for validation in business, I look for business to validate my actions. When I have business, the client matters, when I don't have business, I'm investing in myself, whether its education, or person/professional development. I get support when I support others in their own growth.

That brings me to lack of communication. My clients get a weekly update on the current market conditions at the start of the week, and an update regularly on what I've done, and how I'm progressing through the marketing plan. Every two weeks they get an update on my marketing advice and what needs to change based upon the current market conditions. My past clients reach out to me when they have questions, and all my clients, past and current know I'm just a phone call or text message away. If they have a question that requires a detailed answer, they'll get a detailed email for them to review on their schedule.

How long do I work with people? Currently, I don't have a cut off time. I'll work with someone to purchase their first home until they're ready. As far as a seller, I've worked with people for three or four years before they were ready to sell, and others, a matter of days. For me, time isn't the issue, my clients' needs are the issue, and I'm never going to force anyone to do anything they're not ready to do.

Final thoughts

As a professional, I don't see that now is time for me to leave this industry. Market conditions are currently slow, I agree. While times may be tough for me, I will never be a "Yes man!" Above everything I've ever offered, the one thing that everyone that has ever used my services has asked is my advice. However, my advice is the one thing that I don't negotiate on. The experience I've gained has taught me that someone's opinion is worth more than their weight in gold. If you don't believe me? Look at social media to be an example. People are the most vocal when they feel as though they've been taken advantage of, and social media is just a bull horn for it. I hope that you will take one thing from this article, and that's that there is someone out there who listens to you, will work with you to achieve your goals.

I'm a broker, but I'm more than that. I'm a teacher, mentor, and real estate coach. I've helped agents and brokers succeed in this industry. I've helped my clients achieve real successes in their lives, and I'm not throwing in the towel just yet.