Since entering the real estate business in 2004, we have been able to attract over 50 very talented people to the real estate business. That's been the easy part. But, preparing each of them to succeed in this business has not worked in every case. As a result, we've lost some nice folks along the way. They've moved onward and outward, seeking success elsewhere.
But that's not a slam on us and it is nothing unique to us. According to the one million-member National Association of Realtors, 86% of new real estate licensees leave the business within a year! And only 7% go on to their first license renewal three years later. Wow!
Obviously, the high turnover rate has negative consequences for consumers, as well as for Realtors who remain in the business. Limited experience and inadequate training contribute to frustration and anxiety for clients, as well as for the agents, themselves! This leads to negative stereotypes and a general sense that Realtors get paid more than they are worth.
In most states, it is relatively easy to obtain a real estate license. What other career can you think of that will award you a professional license after a 10-day class and a two hour exam? Doctor? Airline pilot? CPA? Lawyer? School teacher?
We select and invite new agents to join us because they have talent and bring their own unique business experience with them. Our agents have "people skills" and conduct themselves with a high degree of ethics. We provide regular, ongoing sales trainings to help develop expertise. Our new agents enroll in MLS classes and participate in Cheyenne Board of Realtor seminars. Our goal is to assemble, train, encourage and retain a team of the very best Realtors in the State of Wyoming!
Fact: There are about 350 licensed Realtors in Laramie County. The low barrier to entry attracts a number of people to real estate who simply do not possess the talent, ethical values, business acumen or the people skills to achieve long-term success.
From the outside, it looks so easy. After all, how hard can it be to host an open house? Unlock a door? Fill out a couple of forms? Folks, if that's all there was to it, there'd be 350 millionaires in Cheyenne right this minute! But the truth is, it takes years to learn and master the competencies of this highly technical and legal business.
Run-away bulldozer. With the majority of new licensees leaving the business quickly, there is a constant need to keep replenishing the supply of new Realtors. The real estate industry is like a run-away bulldozer with no one at the controls. It unleashes an army of inexperienced, untrained "newbies" on an unsuspecting public who can't figure out why it should be so difficult and confusing to buy or sell a home.
And these new, untrained licensees can't figure out why they aren't earning a living after the first three months! Which all leads me to the following observation: If you come to the real estate business and you do what everyone else is doing, you'll get the results they're getting. So, here's my advice:
- Approach it like a business, not a sales job. Write a simple business plan and follow it every day. Never waiver from the schedule. When in doubt, always do what you planned to do. Never forget that the goal is to create a referral business focused on building and maintaining an ongoing portfolio of property listings.
- You are paid for your knowledge and your time. Commit to life-long learning. Education is a process, not an event. Budget at least one hour everyday for training and education.
- Learn financing. Forget that baloney about the three most important things about real estate being location, location, location! The three most important things are, in fact, (1) leverage, (2) utility and (3) tax-free profits. Leverage is the most important of all. If you want to increase your income and have a better relationship with your clients, you must master financing.
- Understand the importance of personal growth and development. See the business as an arena in which to use your experience to build a better you. We are all works-in-progress. You are the heart of your business. As you improve, so will the quality of the people and opportunities you attract. And so will your commissions!
Keep your passion alive by sharing the joy of building your own business with those around you. Encourage one another. Rejoice in each other's success. Be nice to everyone you meet. Smile often. Recognize your own God-given talent for what it is: a gift. Become the very best you can be. Live and prosper as one of the top 7% Realtors in town. Give thanks to the Lord. Spend time with your family. But have fun. Most importantly, have fun.
Well, if I haven't scared you away, please click here. If you are still interested in a career in real estate, simply email me at era_group@juno.com and I'd be honored to reply personally to your questions or comments. Thanks and God bless!
Kim Andereck, J.D., Owner
Andereck Investment Properties, LLC
1623 Central Avenue, Cheyenne, WY 82009
Website: www.wyominghomecenter.com
Click here for Kim's background information.
