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3 Big Advantages Of Being A Residential Real Estate Agent
While the big money tends to be with commercial real estate transactions, the big volume comes from the residential side of the equation. It really is a personal preference or personal suitability thing. Some people love the concept of serving a small number of big ticket clients. While others prefer to serve a high number of clients that are easier to deal with. I prefer going for volume as I see putting your eggs in one basket is a pretty risky way to run a business. It is better to spread out your exposure so that any one deal that fall through has minimal impact on your income. Here are more pros of going for the residential sector that will surely sway you.
Low cost business
Yes you are now in business. You are no longer an employee who is just trading hours for a salary. Your income will now totally depend on what you achieve for yourself. So it will serve you well to start harnessing the self-employment mindset. A hugely successful realtor can easily earn more than a top surgeon at the hospital. And you don’t need a degree with 5 years in medical school plus 8 years of on-the-job-training to reach that income achievement. All you need is yourself. This could be a driving force to use for motivation.
While other people need money for starting their business to buy inventory, rent an office, hire staff, all you really need to conduct your business is a computer and a car. Your computer will of course, have to be able to plug into the agency’s system to access research and database software. And while business owners take on huge risks associated with failing in their ventures, the only really valuable thing your will risk losing is your precious time.
Think that marketing yourself can pose a huge challenge to success? Worry not. Because this career is so evolved that there are already proven marketing systems you can adopt that integrates that use of high technology to manage. You will learn about them anyway with the training that your agency will provide. The point is that there is a roadmap you can follow. Whether or not you will see it through is another matter. Also take note that these marketing systems and roadmaps can give you success. But to achieve huge success, you need to use your own bold creativity.
It also helps that homes are evergreen products that people buy and rent. When things are booming, there will be a lot of buyers. When things are going south, there will be a lot of sellers. No matter how badly an economy is doing, there will always be a residential market for you to serve.
Many revenue streams
Earning a commission from a buyer or seller you serve is not the only way to generate an income in this career. The first most obvious way is to be an investor yourself. Being in the field with first-hand information of listings and opportunities, you are in a very good position to move fast to secure good investments yourself before they even get on the open market. Many investors will love to have access to such information in a timely manner. But they can’t as they are not agents like you.
Another easy way is to co-broke. This is when another agent serving a client agrees to split their commissions with you if you can find someone to match the deal on the other end. For example, an agent have already secured an exclusive representation for a seller, and is now looking for buyers. If they are agreeable to co-broke with you, all you need to do now is find a willing buying to close the deal. You can then blast out flyers or online listings to prospect for potential buyers. This can sound easier said than done. But if you have been in this line long enough, you will know this is easy money at times.
Then take a bigger bite at your commission share. A portion of the commissions you make have to be shared with your agency. They do need money to keep the company operations up and running. There are bills to pay. Optic-fibre, office rental, and computer software don’t come for free. So you obviously cannot even ponder about not paying your agency at all. But as you get more independently seasoned and bring in deals in higher volume, you will be in a position to negotiate for a bigger share of the split. You can always move on to another agency if you feel being exploited. Competitors love to hire big players from their competition.
You can also build and sell your business. If you are someone with a taste for management, consider setting up your own realty. Established property agencies with huge client bases can sell for millions of dollars. But to go this route, it is best to have capable people around you who share the same passion as you. It will also be a competitive edge if some of them are experts in other areas of the business as well. For example, IT systems, internet marketing, graphic design, etc.
Everyone is a prospect
If the daunting task of seeking commercial clients discouraged you to go that route, then the masses of residential clients must be a huge attractive factor to serve residents instead. And these clients will have a lower expectation of your expertise and up-to-date information compare to commercial clients.
Since potential customers are everywhere and you and look forward to a flurry of competition, you must make the effort to hone your marketing skills to outwit the competitors. Embrace the concept of continuous learning. Skills you would want to pick up include those concerning negotiation, sales, marketing, listening, grooming, speaking, etc.