When I became a full time Realtor in 2004 I believe there were 2000+ Realtors in Marin County. Currently there are somewhere between 1300-1400. During the pandemic we saw plenty of new Realtors enter the market as property values ballooned, but predictably the number of Realtors in Marin subsided. Now it’s the lowest I’ve been aware of in my 20 year career. 4 out of 5 Realtors are gone within the first two years of getting their license, and only 9 out of 10 make it five years. If you are going to make it in real estate sales, you’ve got to consistently nurture your business and work smart. Here are some of the ways Realtors make it in this high attrition profession:
1) Work part time – This is not the method I prefer, but if you aren’t selling houses you’ve got to create income somehow, or have a partner willing to carry the financial weight until you are up and running. If you are good at real estate sales, you’ll make a lot more money spending your time selling houses than you will in a part or full time job elsewhere.
2) Full time commitment – Working full time is a far better approach to becoming successful. What the full time commitment often requires in the beginning is some sort of financial backing because real estate sales is 100% commission based. It wasn’t realistic for me to immediately begin selling properties when I got my license, so I took a big risk and a tax hit and cashed in my 401K to launch my career. Now entering my 3rd decade in real estate sales, I can safely say things worked out but it was definitely a gamble at the time, and I was fully committed.
3) Thick skin – You are going to hear ‘no’ a lot. Melissa Bradley, my broker for 14 years, used to always say you have to learn to love to hear the word ‘no’. Each ‘no’ you hear gets you closer to a ‘yes’! Melissa was the top producing Realtor in Marin many years, so she knew what she was talking about. I look back on my career and I have to be honest with myself, I didn’t hear ‘no’ enough. If I heard it more, ironically that would mean I would have sold more homes. That being said, I’m encouraged when I hear the word ‘no’.
4) Adaptability – There’s no question if you are going to stay in the business you are going to need to change with the times. During the Great Recession I got into representing sellers in short sale listings. Then I transitioned to selling bank owned listings. When Covid hit, we all had to wear masks, wipe down properties and sign releases. Due to a recent court decision buyer’s agents are going to need to have their buyers sign broker agreement forms before showing properties. There will be more changes in the industry in the future, you can count on it.
5) Consistency – Whatever you do to generate business, you have to do it consistently. If what you are doing consistently isn’t generating business, it’s time to adapt and try something different. Once you hit on what works for you, keep at it and build on it! I write my blog and a newsletter. Which brings me to my final point.
6) Don’t be a secret agent! - Too many agents get their license and don’t promote themselves. You have to get out there and let people know what you do for a living. If people don’t know what you do, they will use someone else. Remember the Latin phrase, “Horror vacui” (nature abhors a vacuum)? Real estate abhors a vacuum too, and if you aren’t out in front of your potential clients you can bet someone else is. They are capturing the attention and business that would be yours if you weren’t a secret agent.