The certificate arrives in
the mail and now you are an official Real Estate Agent. What exactly does that
mean? It means you are self-employed and now the real game begins. As a
beginner, you must be careful not to fall and make the same mistakes that
others before you have made. It is called, "How to avoid common pitfalls,"
and it is so easy to do.
Rule number 1
Do not show any homes or talk
to anyone until you know what you are doing. Too many agents want to rush out
and sell a home when they have not learned the basics. So learn about
financing, escrows, banks, how to close a deal and how to treat a client. Your
Broker should assign someone to guide you on your first steps.
How can you possibly close a
deal on a house when you do not know the current interest rates? How can you
show houses to anyone when you do not know how to open a lock box? How can you
sell a home if you know nothing about creative financing? Learn the ropes and
then talk to potential buyers and sellers.
A typical question from a
potential seller is, "How long have you been in the business." A new
recruit might say, "1 week." You are not going to list that home for
sure. A smart recruit would laugh and say, "It has been so long, I cannot
remember." Experience and thoughtful thinking brings rewards.
Rule number 2
Do not take anyone to lunch.
It is a trick of many potential buyers to suggest that they are hungry and they
want to eat at Red Lobster. Red Lobster can cost a fortune to feed a family.
Many Realtors so want to please the buyer and show them how important they are
and so they cave in. Only to find out the potential buyer has no intention of
buying a home at all or intends to write a very low ball figure.
The cost of Real Estate is
huge and it can bankrupt you if you are not careful. The board dues alone can
cost close to one thousand dollars. You must buy signs, cards, have a good car,
have very nice clothes and shoes and go to all the functions. Think before you
spend all your money on dinners for clients.
Any client serious about
maing an offer will come to your office and sign the paperwork there. A serious
buyer will not try to weasel a free dinner out of you.
Rule number 3
Be different from the rest of
the agents. Do not do what every "Tom, Dick and Harry" is doing. If
everyone is wearing a blue dress, then wear a white dress. Get information on
loans from everyone, but develop your own style. Research what sells and try it
out. Remember, honesty and kindness will close more deals. A sure fire way to
lose business, is to never keep your promise. A Realtor must at all times be
ethical.
Rule number 4
Do not wine and dine at
night. If you want to be a reputable Realtor, then be respectable at night. A
Realtor is watched at all times and no one wants to list their home with a
drunk.
Rule number 5
Be smart and don't give all
your free business cards away. You are trying to make money and if you give it
all away, you will be in a negative frame very quick. Make a flyer and copy one
business card on the flyer and give the flyer away.
Rule number 6
Go to many open homes and
socialize with the other Realtors. Become a friend and a confidant to many.
Learn about what homes are on the market and talk with the listing agent about
what the seller is willing to sell for. If a buyer walks into the office and
ask you to look at homes and you have no ideal what homes are on the market,
you are not going to look professional.
So have an inventory in your
pocket. Know many areas of the town and always remember the agents. Deals are
closed more often by having friends for listing agents. The listing agent will
remember you as a kind and easy going agent and the listing agent will want to
help.
Rule number 7
Do not require everyone to be
prequalified. When you first meet a buyer and he wants to get to know you, he
is often frightened by an agent who will not even show him the time of day,
unless he goes to her bank and signs papers. A buyer must first be your friend.
Show them five homes and if they don't like those homes, suggest nicely they
get prequalified. Suggest that you are only doing this to help them. Hand them
a list of homes for sale in the price they want and make an appointment for
them with a loan officer.
The nice and easy approach is
better than being harsh. Helping the buyer get to know you first is more
important than making sure he is qualified. For those five homes that are shown
to the buyer, can be used later to show other buyers. This increases your
inventory and makes the world love you more.
The world of the Realtor is
very "Cut Throat." and you better learn from the beginning how to
survive. You need to watch out for these pitfalls and many more, but if you
institute these 7 rules of engagement, you will be a success. Real Estate can
also be the best job in the world. It comes with many pleasures, satisfactions
and rewards. All Realtors should give a gift at closing. It shows how much you
appreciate their business and I guarantee you, that simple gift will bring you
return business.
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