Real Insights: The No-Nonsense Guide to Success as a Real Estate Agent

By John Graff

A no-nonsense guide to finding success-and avoiding failure-in your first years in real estate.

Let's not sugarcoat it-real estate is a cut-throat industry. Nearly 87-percent of new agents succumb to failure within the first five years. What if instead of failing, you could join the 7-figure club instead?

In this com

• Language: English
• Publisher: Ellimat Books
• Release date: Nov 23, 2021
• ISBN: 9798985275018

John Graff

John Graff is an author and the CEO of Graff Real Estate, owner of brands such as Ashby & Graff and LicensePark. He has appeared in media as varied as the New York Times, CNBC, Washington Post, NPR, and the Atlanta Journal-Constitution and has received awards and accolades from groups such as the U.S. Department of Housing and Urban Development, the National Association of Gay & Lesbian Real Estate Professionals, RIS Media, and Inc Magazine.

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Real Insights

By John Graff

Copyright © 2021 by Ellimat Books

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher at the e-mail address below.

ISBN: 979-8-9852750-0-1 (paperback)

Although the advice and information in this book are believed to be accurate and true as of the time of publication, neither the authors nor the publisher can accept any legal responsibility or liability for any inaccuracies or any loss, harm, or injury that comes about from following instructions or advice in the book.

First Edition published by Ellimat Books 2021

Please contact the author at:

[e-mail]

For Matthew, Elliott, and Cuthbert—my boys.

Introduction

As you prepare to launch your real estate career, you understandably have high hopes for the future. You may know of real estate agents in your area who have a great work-life balance and who maintain an enviable lifestyle. In fact, those successful real estate agents may have inspired you to start your career in this industry.

Depending on which state you are based out of, you may be eyeing an average income of between $40,000 to $65,000. Of course, successful real estate agents can achieve an income that far surpasses the six-figure threshold. This income, combined with the ability to set your own work hours, can seem amazing to someone who is coming off a 9-to-5 grind. That is understandably where your focus is centered. That is what may have pushed you to persevere through your real estate courses.

However, dreaming will not get you where you want to be. The difference between a dream and a goal is a plan. What is your plan after you get licensed?

No real estate agent starts out expecting to fail, but the unfortunate reality is that 87 percent of real estate agents will move on to new career opportunities within their first five years on the job.

There is not a single reason why many new real estate agents throw in the towel, although most of them likely stem from that gray area between dreams and goals. Everything from rapidly changing market conditions to unrealistic expectations about the job and dozens of other reasons could be to blame. Do you have a plan to get through these obstacles, or will you simply continue dreaming about turning over big commission checks?

After you spend months studying to pass the licensing exam and lining up a great broker to work with, you may think that you are positioned for success. But remember, your license is a basic requirement that every new real estate agent must have—it is not a golden ticket. The majority of people who cover the basics by getting licensed will fail in this line of work.

What can you do to set yourself apart from other agents and be part of that 13 percent of real estate agents who have a long and successful career?

A Long, Winding Road Ahead

The reality is that the real estate industry is in a constant state of flux. In fact, it has historically had a fairly reliable cycle with both recessionary dips and profitable peaks. The industry is also intricately linked to a variety of other factors. These include the Fed’s monetary policy, the mortgage industry, the cost of building supplies, the labor market, and more. It is simply not reasonable to expect your career to be insulated from the ups and downs related to real estate cycles.

Of course, there are a variety of other challenges that you must contend with while navigating through the cyclical ups and downs. For example, you must be able to successfully find potential new clients who are ready to buy or sell soon. Then, you must win over those leads by converting them into clients. This is often easier said than done. After all, other real estate agents will be competing for their business as well.

Once you have sold yourself successfully to a client, you must rely on your knowledge of the local real estate market, harness your negotiation skills, and navigate through a series of pitfalls on each transaction you complete. Rest assured that no two transactions will be the same, and each one will present you with learning opportunities and a few headaches.

There are other challenges to contend with on a more personal level. For example, many people who have been salaried employees underestimate how challenging it can be to stay motivated to put in full-time hours when they do not have regular oversight from a manager. Others may grow frustrated with the fact that they are working so hard now and may not have any financial gains to show for it for a few months down the road. Then there are challenges related to time management, organization, communication, work-life balance, technological expertise, and more.

Education Is the Key to Success

Do you feel discouraged? Before you start to second-guess your new career path, take a deep breath. You are not confronting all of these challenges at once.

You are also not recreating the wheel. While each day as a real estate agent will be filled with experiences that are new to you, they are not necessarily new to the many other real estate agents who came before you. The reality is that you do not have to personally endure all of the stressors associated with launching a new real estate career. Instead, you can focus on education. The more you can learn now, the smoother your path ahead may be.

The most successful real estate agents do not have a know-it-all mentality; they embrace the fact that they still have a lot to learn despite their many years in the business. They also accept the fact that the industry is constantly changing, technologies are evolving, and relationships are growing.

Real estate is not a career where you will ultimately have all of the answers at all times. Instead, it is a career where you will always have the opportunity to grow by expanding your knowledge base and fine-tuning your skills. Your success as a real estate agent is directly linked to education. While you could wait for learning opportunities to hit you in the face, a better idea is to be proactive and seek educational opportunities.

The good news is that you do not have to learn all of the lessons through hard knocks. Instead, you can rely on this guide to navigate some of the more common challenges that new real estate agents face. Each chapter in this guide is filled with insights covering everything from marketing and developing relationships with clients to refining your pricing strategies and more.

By learning more about the challenges that lie in front of you in the months and years to come, you can better prepare yourself for navigating around obstacles that you will inevitably be faced with. After all, you do not necessarily need to endure stress and lose sleep in order to learn the ropes as a real estate agent.

Your Journey Starts Here

As you start your career in real estate, you can and should celebrate the fact that you have aced your courses and passed the licensing exam. In fact, you should celebrate each accomplishment regardless of how seemingly small it is.

You may be inclined to use your commission checks as a yardstick to gauge success. While this is one metric that you can use, understand that there are others. Real estate is a relationship business. Your ability to establish and cultivate relationships is key to your success. With this in mind, another metric to gauge success on is the number of leads you convert into customers. You can also use your referral stats, the deviation between list and sales prices, and a variety of other factors to gauge success in your new career.

At the same time, you should not use failure as a label. Your broad professional goals will likely not deviate. Those goals include converting leads, winning clients, and closing deals. While these are desired outcomes, an alternative outcome is not necessarily a failure. For example, you may have not earned business from the last client you met with, but did you learn how to overcome a new sales objection or how to improve your pricing strategy in a competitive market analysis?

It was not a failure if you learned something from it. Learning opportunities give you the chance to become a better real estate agent.

With this in mind, you can see that passing your licensing exam does not open the door to a leisurely lifestyle and tons of high-dollar commission checks. It is not a threshold where learning stops and earning starts. Instead, it can be viewed as the first step in a long journey. That journey continues as you use the resources in this guide to improve your knowledge base and to grow as a real estate agent.

1

How to Get Your Real Estate License

If you are already licensed, you can skip ahead to Chapter 2, but if you have yet to receive your real estate license, this chapter is definitely for you. Each state regulates its own licensing processes with rules that differ from state to state. Above all, there are a few general requirements that remain consistent:

You must be over 18 years of age to practice as a real estate agent.

You must hold a valid United States residency.

You must complete the required pre-licensed education.

You must pass your state’s real estate license exam.

The specifics tend to vary from one state to the next, but generally, there are seven steps to becoming a licensed real estate agent.


Step 1: Meet Your State’s Licensing Requirements

Visit your state’s real estate commission website. This official website will list all pre-licensing requirements. In most states, 60-90 hours of college-level education in real estate basics is required to qualify for a license. You can find these courses through a simple internet search, and there are options for you to take the classes in person, live online, or on demand. Keep in mind that the licensing school you choose to study with must be accredited and acknowledged by your state.

Step 2: Complete a Pre-Licensing Course

While the cost of pre-licensing courses differs, bear in mind that becoming a real estate agent requires both time and investment—just like any other business venture.

Some pre-licensing courses are set over a number of weeks, while others allow you to finish in your own time and move at your own pace. It really just depends on which course provider you choose and the type of class you select. You’ll need to choose the best course to fit your lifestyle and the amount of study you can manage in a designated timeframe. You can expect to pay between $200-$1,000 for your courses, depending on your state and the school you choose to study with.

Step 3: Submit Your Application for the Real Estate Exam

You must be sure to follow the application process carefully. This way, you’ll be able to sit for your real estate exam soon after you’ve completed your studies. The process is specific to your state and the fees will vary, but most states will require fingerprints and a background check before scheduling an exam date. These details can take several weeks to process, so make sure this part of your application is completed as early as possible.

Step 4: Sit for Your Real Estate Exam and Pass!

It’s important to know that not everyone passes the real estate exam the first time, and that’s okay. That’s why preparation and adequate study is so important.

It’s recommended that you enroll in the exam preparation class, especially if it’s been a good few years since you last studied or took an exam. These classes allow you to take practice exams and work on your strengths, weaknesses, and build up your comprehension of certain subjects. By putting in a little bit of additional work, you can be assured of passing the first time and be well on your way to kick-starting your career.

Tips to Pass Your Real Estate Exam:

Stop reading stories on the internet where people talk about failing one or more times. This does nothing for your mind and confidence. Quite honestly, it’s a waste of time.

Use a few resources. Too many resources will overwhelm you and prevent you from focusing. We strongly recommend Real Estate Express for real estate exam prep.

Obtain an outline of the