The Reasons Most REALTORS Struggle

You have heard the old phrase …”The definition of insanity is doing the same task over and over again expecting a different result”. The phrase has stood the test of time for a good reason…because it is exactly what a lot of people do…month after month, year after year! People want their lives to change, but they don’t want to change themselves…or more accurately…  they don’t want to endure the pain change can create.

A habit is like a friend…sometimes they can be bad for you, or sometimes they can be the best thing that ever happened to you. Successful REALTORS have one thing in common …Good Business Habits. Even though forming good sound business habits can be hard work, it pays dividends every time.

Along with good habits you also have to maintain a good attitude and keep your skill level in line with the market conditions which you work in. Below we have listed reasons why we feel some people struggle in real estate and how to cope with them.

·         The Real Estate “Roller Coaster” Ride:
In most real estate careers there is a rhythm of sorts… an ebb and flow of closings which makes predicting income nearly impossible…This ebb and flow can, and often does become a scary roller coaster ride for many. The “ride” is most often caused when an agent gets too busy and stops consistently looking for new business… this interruption of prospecting activity closes off the introduction of new prospects to your pipeline causing it to run dry creating a sudden reduction of income.

Think about this…what would happen if you forgot to brush your teeth for one day….not much other than offensive breath…what about two days, a week, a month, or a year? No doubt at a year there would be consequences…but not many people forget to brush their teeth because they have made it a habit....a GOOD habit! You must make prospecting for business a habit just like brushing your teeth or combing your hair.

·         Distracted by the small stuff:
It is Friday 11am and you have time blocked to look for new business when the phone rings and you see from caller ID it is an old fiend… so you answer and get into a long conversation regarding last nights hockey game…then decide to meet for lunch at the nearest taproom… (not entirely a bad thing because you can ask the friend who they know who is buying or selling!), The bad thing is that most likely you will blow off the prospecting time to have a few beers with your friend…(go back to the brushing teeth analogy in the last paragraph)…do you see where I am going with this? One missed day is OK…just don’t let it become a bad habit…Always make daily prospecting your priority!

·         Be the Starbucks not the corner gas station:
Everyone will agree that coffee is a commodity…and Starbucks probably pays less per pound for ground roast coffee than the local BP gas station does…but who charges more?...A LOT MORE!!!! The reason Starbucks can charge 4 times more for coffee than the BP station across the street is their differentiation. Millions of people make the conscious choice to pay more at Starbucks every day….Have you ever asked yourself why?

When a consumer meets with 2 agents to list their home…(both seem like nice capable people, but have just one difference…the commission they charge)…what does the consumer do? Unless you can quickly articulate the value you bring to the transaction over your competitor, you can’t expect the consumer to pay more. By adding value and sharing how you do business differently will show your competency and professional character....therefore adding validity to the commission you charge. 

You must be above average to succeed in real estate…your challenge is to be the best version of yourself this year!

·         Organization:
Most agents want to close more transactions… but some are too physically and emotionally disorganized to handle the added workload. Take little steps to get yourself more organized…just a 10% increase in organization can help ten-fold in other areas… 10% more prospecting may create 100% more income!

·         Unable to Manage Finances:
Because of the aforementioned roller coaster ride… it is sometime difficult to manage one’s finances…. We suggest you calculate what you need to live on every month and pay yourself a salary to cover that amount. The balance goes into a reserve fund for lean times, and then at the end of the year, you take a percentage of the reserves as your year-end “bonus”. Spend your business dollars wisely by not wasting money on the next “new thing” …study the market and know what works before you jump in financially.

If your 2012 wasn't productive...Will you continue to practice insanity and repeat history again in 2013? Or will you make positive changes in your life and rise to the top? It’s up to you.

Eddie Brown ©2013
www.ICU-Coaching.com