Being relatively new to the real estate industry (coming from a military background, followed by some time in the NYC finance sector), I came into it wide-eyed, green and full of expectations, realistic or not. I believed that in real estate, like most facets of life, you could succeed through hard work, perseverance and a healthy dose of common sense. Now I’m beginning to question if I had any of that right.
Intelligence. An asset that will guarantee your success regardless of what you do. But is that applicable in real estate? I’m not saying I’m the smartest person in the room (even when I’m alone), but I have met some real estate ‘professionals’ who really push this issue to the brink. And I’m talking about top-producing agents! Just a few days ago, I overheard a conversation where an agent, who just got a listing for over $2.4M, asked another if he knew what ‘TMK’ meant. Really, I am not making it up.
Hard work. Sure, most successful agents are hardworking. But in it of itself, hard work does not guarantee even the slightest bit of measurable success in this industry. Sure, having systems in place to ensure efficiency should make the work load a bit easier to handle, but I’m finding more and more than even when you do all the things that the experts say you should be doing, success is not necessarily within reach (at times it seems to be the opposite, actually).
Professional appearance. Well, this one may be more touchy to me since I live in a tropical area where casual attire is the rule of the day. But really, how is it that people look like they just rolled out bed, slapped on whatever dirty clothes were on the floor, slipped some beach flip flops and land multi-million dollar deals? Sure, I get it, ‘Aloha Friday’, but that could mean a number of things (i.e. nice shorts with a tommy bahama shirt) besides just being plain sloppy.
Knowledge of the market. I can’t wrap my head around this one as I thought for sure this would be one area where a successful agent MUST be proficient. Recently I had a conversation with a top producer who didn’t know the area very well (really, after 10+ years in the area) and claims he never reads the market statistics, national or local. Sure, I could understand if this was a new agent or someone who recently moved to the area. But a top producing professional?
Is there one trait or a combination thereof that makes a successful agent? Genuine charisma? Experience? Good looks? What is it?
Could Horatio Alger given us a real estate agent? I’m starting to doubt it.
Brian Brady says:
You’re kicking off a good discussion, Alex. Russell Shaw would tell you that the number one reason agents fail is the inability to generate and convert leads. The poorest dressed, laziest, moron could do well if he/she had plenty of leads and was talented at converting them.
I would agree with him. I have found that all of my problems are solved when I spend my time seeking and doing pre-approvals. If I do enough of those, the other problems work out and I get paid regularly.
May 21, 2010 — 7:00 am
Jeff Brown says:
Alex — This is a no-brainer. When I was 67 days past my 18th birthday, I arrived at the office, a Saturday morning, around 8:30. At about 2:45 I was driving back to the office with a signed listing. How is that possible?
I’d spent from 9 AM to noon, then from 1 PM on doing nothing but calling FSBOs. I got three appointments, one for that afternoon, the others for the next day.
Alex, I was literally four months past high school graduation. My experience ‘clock’ started 8:30 that morning. I got that listing cuz I was there. Cuz I called them and asked for an appointment. Brian hit it on the head — top producers lead the pack cuz they don’t spend 8-12 hours daily workin’ their asses off avoiding prospecting. A moron will make good money in this business when they stop cowering behind their desk and call folks who might tell them to go to hell. (I don’t mean you’re cowering.)
Babe Ruth didn’t hit 714 homers by sittin’ on the bench, or being afraid to strike out. His manager penciled his name into the lineup day in and day out. He got up 4-6 times a game. He failed almost 2/3 of the time. In fact, for every homer he hit, he struck out almost twice. His daily at-bats are a perfect analogy to your situation. Ask yourself: Is Ruth remembered for failing 2/3 of the time, or striking out over 1,300 times? Or is he remembered for his .342 lifetime average and 714 homers?
How many times a day are you walkin’ up to the plate, bat in hand, with an attitude? You can’t list/sell properties ’till you’ve walked up to the plate with a bat.
Pick your method Alex, but be talkin’ to as many folks a day who just might tell you to shove it where the sun don’t shine. That’s the common denominator shared by the alpha dogs in this business. It’s been forever so.
May 21, 2010 — 7:58 am
Alex Cortez says:
Thanks for the responses. First, I must apologize for the poorly written article (it was almost 1am after a particularly long day and I needed to vent). My point was that I find it interesting (and equally frustrating at times) that qualities/attributes that would make a successful professional in other fields does not necessarily translate into real estate. Hence, I look for interaction with other real estate professionals through other means such as this blog, where obviously the level of expertise is far above the norm. Thanks to Jeff and Brian for responding and to the rest of the BH family for providing such an outlet.
May 21, 2010 — 12:05 pm
sara hamilton says:
wow alex, this is something i struggle with daily!! I am constantly looking at the professionals i interact with here in Toronto Canada and think to myself… “how are you staying alive in this business?” Perhaps if I let myself become slovenly, didn’t pay attention to what was happening in my area and became a general dunce, but walked aroudn with the confidence of the king of siam, i might actually do more business. Am i just torturing myself by believing that a good work ethic, experience and proven results is what makes me successful? perhaps i was just having a bad hair day when they signed that listing instead…
May 21, 2010 — 5:33 pm
Dan Connolly says:
In my opinion the most important quality a successful agent can have is to be trustworthy. That is paramount and most of the agents who make it over the long term have won the trust of their clients. If your clients really believe you are looking out for their best interests over your own, they will stick with you and send you referrals for the rest of your life.
Everything everyone says about lead generation is true. The trick in making it is having so many leads you can pick and choose and only work with those that are realistic and motivated. You can’t help everyone. Don’t try.
But the other side of the coin is that when you get a lead, how you convert them to being a client for life, is by actually working hard to get them what THEY want, while at the same time protecting them from making a mistake. This holds true for buyers or sellers.
For the buyers, pointing out flaws and talking them out of something they want, builds that trust. I spend a lot of time pointing out cracks in the foundation and old roofs. I don’t want them wasting any money on failed inspections. When they find a house they like we look at it very carefully. Then we look for comps in the neighborhood to figure the value. I don’t want them paying for failed appraisals either. They like that! Some of my buyer clients look at 60-100 houses before they buy one. By the time we are done, if I tell them it’s a good buy they believe me. If that is what it takes, that’s okay!
When you think about it, market statistics don’t make any difference to the average homebuyer. What they want to know is how much does it cost them a month and is it a good house. They don’t care if the average price of the houses in this city are going up or down, but is this house a good deal compared to the other houses in the subdivision.
The statistics are more interesting to the sellers, but since they all think their houses are unique and better than the rest, the statistics are only slightly interesting to them. What they really want to know is how are you going to sell it.
As far as the dress code, there is obviously a minimum standard but I think most people are much more concerned by what you know, and what you say, than how you look.
May 21, 2010 — 8:03 pm
Tim Shepard says:
Even a blind squirrel finds a nut every once in a while. For example, a relative or close friend with a $2.5M house to sell, a random floor call, or a referral.
Don’t be envious of these agents, be happy for them. They aren’t top producers and will constantly struggle in their efforts to get the next big deal. Like the Divinyls, they are one hit wonders.
Real top producers demonstrate their skill and expertise over a long time frame. When the market was booming, everyone was a top producer. For the past 4 years, real estate has sucked. The top performers during this time are likely excellent agents. The weak cannot survive these trying times.
10 years ago, I thought as you did. However, since then, I have gotten to know a lot of top producers in my local area. Guess what….without exception, they are all excellent. My observations of what it takes to be a top producer:
Smarts – high combination of savvy, IQ, and street smarts. You can be stronger in one and weaker in others but you must possess all three in some quanity.
Know Your Product – You have to know the inventory stone cold. I’m not talking just prices, but details of actual homes so you are prepared to describe, in detail to a prospect, about
Sales Skills – Active or passive. Doesn’t matter which, but you must have a style. If you aren’t trying to close the deal, you won’t close it.
Trust – This is probably the most important. Your conversion will increase 10 fold if your clients trust you. This sounds easy but many agents fail. Why? Because they try to spin things instead of being direct and honest.
Like you, I came from another profession before selling real estate. It took me 2 years to get into the top 5% in my area and I’ve been there ever since. I changed because I hated the structure and organization of a corporation. I craved an environment that thrived on impromptu conversation and entrepreneurial spirit. That’s what selling real estate is all about. You have to adapt to every personality, every house, and every situation, with out preparation and do it effectively.
All top agents have superior lead generation systems. The best are strong referral systems but that takes time to build and is the most difficult.
Fortunately, for you, many of your buyers most likely come from out of state or from another country. NAR sent me an email last week that said that 84% of buyers start their search on the internet. Everyone, including my 10 year old son already knew this, but the point is clear.
If you want to be a top producer, you must embrace the internet. I did a quick search on google for, Maui Real Estate, Maui Homes for Sale, and Maui Condos for Sale and I didn’t see any page 1 or 2 positions for your website. I’d strongly recommend you put an emphasis on increasing your web presence.
From my own experience, I really don’t think the average realtor understands how many contacts the top realtors make each month. Personally, I try to close 4 or 5 deals a month. Since buyers are still nervous, I’m showing property to 12-15 different buyers each month. I talk to 40 or more to get the 15 in my truck. You can only imagine how many internet leads is necessary to actually talk to 40 or more new buyers in a months time.
You provide several observations of what other top producers are doing. However, if YOU want to join the club, I’d recommend doing an honest evaluation of your own business.
I sell homes and condos in a resort market and would be happy to give you some ideas. Please feel free to give me a call.
May 21, 2010 — 8:49 pm
Alex Cortez says:
Thanks for the comments. First, let me clarify something so there is no misunderstanding. I am not envious of other successful agents, not by any means of the imagination. I have succeeded in my previous endeavors and I am sure that I will find success in my real estate career as well (I don’t have a shadow of a doubt on this). However, the point of my post was that I am baffled (utterly so at times) by the lack of professionalism by some top producers, obviously not all but enough that it has made a lasting impression on me.
Dan, I see your point of how having the ability to build trust with clients is a key element. And well, that’s one which will surely pay dividends long term (a happy client is one who will gladly refer you to other people).
Tim, my site is about 2 months old and is ranking for for over a dozen relevant long-tail keywords. Granted, it’s not ranking for the ones you mentioned (the most competitive ones), but that will come in time as I am making a big effort on SEO (both on site and off site). I will take you up on your offer and give you a call, I’d love to pick your brain as to how you have been successful.
Again, thanks for the comments.
May 21, 2010 — 9:02 pm
Alex Cortez says:
By the way, nice website, Tim. I see you are a fan of REW. I’m actually one of the moderators on that forum.
May 21, 2010 — 9:05 pm
Tom Matthews says:
Even though I am an ogininator, not a RE agent, I really like this blog. And this post really goes to today’s new rules. I think the take away is there is no one thing that will make us successful. That Jeff was able to go out and get a FSBO listing on day one tells me he has many of the attributes to be successful. Otherwise he would not have gotten the listing. And, franlky, he would not be reading this blog.
Loan origination is fun. Marketing is great. And my marketing efforts have to go to selling real estate as the mortgage is somewhat of an “oh yeah, I need a mortgage.”
Here is Middle Tennessee the best realtors are the ones that have many of the previously described skills and talents. None has only one thing. We, the successful sales people are a package. Most of us have passion, we all have drive, some of us are smart some not. Some of us are well dressed, some not. But the sum total of our package is unique and has opened our door to success.
May 22, 2010 — 6:46 am
Marc Knight says:
Great post! I have to agree that in addition to all the qualities you listed, your attitude will have a big impact on your success.
May 28, 2010 — 8:10 am