This topic here today is quite a natural one given the fact that this service will be most attractive to new real estate agents in Canada. The majority will have already chosen a real estate brokerage and the bulk of you will likely be very happy working out of there. Some will have yet to make that decision, though, and it’s in the interest of helping these fledgling professionals that we’re going to use this week’s blog to share some realities of being new to a real estate brokerage that you may not be aware of.
Here at Real Estate Leads, our online real estate lead generation system in Canada is an excellent way to increase the effectiveness of your client prospecting efforts and help you build your client base more quickly. Paired with the usually less-than-rosy realities of what it’s like to be new to the business and a brokerage you’re about to learn of here, the value of using technology to get your business gaining steam is probably going to be that much more attractive.
So let’s get right to it – 3 realities that most new realtors aren’t told during the brokerage interview.
The Curveball Pitch
Brokerage interviews are usually 30-minute sales pitches where the brokerage aims to impress on the new realtor why their brokerage is going to the best spot for them to branch onto. You’ll be making money for them, so they need you as much as you need them. Most brokerages will keep it all very upbeat and positive as a result, and avoid mentioning anything that could be perceived as a negative for them or the profession as a whole.
It’s not so much that they want to omit the information for its own sake. It’s more that they don’t want you thinking the bad stuff only happens at their brokerage.
Yes, all these pitfalls to extensive success early in a real estate career will apply to every new realtor and whichever brokerage they end up choosing to work with.
- Real Estate Business is Difficult, and You May Fail
To say directly – or even imply – that real estate is easy money is really doing a disservice to someone. Unfortunately, real estate is not as easy money as a lot of people make it out to be. It requires a great deal of hard work, patience and persistence. The fact of the matter is that real estate sales involve a lot of time doing a lot of work, and often for no money. There’s a lot of running around, researching, networking, following up, and showing and submitting of offers – all with people who could be ready to submit an offer or leave you entirely hanging after all you’ve done for them.
The success rate in real estate for newbies isn’t high can be pretty low and it’s possible that you may end up being one of the 1 in 6 realtors who leaves the profession within one year of becoming licensed – as is the statistic from the RERC (Real Estate Regulators of Canada).
- You Get What You Pay For
Brokerages make money by charging their fees. Charging agents to be a part of their brokerage is how real estate companies make money. That may be with a monthly desk fee, a commission split, an annual fee – or a combination of all three.
Just as it is in any business, the more you are able to charge equates to having more services, value and time you can provide. It’s simply not possible to provide quality real estate services to your clients if you’re charging discount rates. This applies to brokerages too, so choose wisely with this very important fact front and center in your decision process.
Unfortunately it’s fairly common for some agents to think they can pay the lowest possible brokerage fees and still get good service from it. That’s unlikely – be wary of brokerages that offer lower brokerage fees, as you truly do ‘get what you pay for’ here too.
- Prepare for An Extended ‘Cash-Strapped’ Period
A new real estate agent is always going to be in the process of building a real estate business. If you’ve ever spoken to any business owner, you’ll know that money is usually tight in the beginning. The biggest reason for that is there’s a lot of upfront costs that are being incurred ongoingly while you’re not creating income – or creating very little of it. Going for months like this in the beginning can make this business very intimidating.
Again, the reason brokerages won’t be telling you this very clearly is that they don’t want to think that’s a reflection on them. It’s the nature of the business, and so it really is smart to be prepared for a less-than-smooth start to your real estate career. Focus on the right things, provide real service and value, and be very proactive in learning the trade and you’ll be much better equipped to get through the lean period without second-guessing your career choice.
Sign up with Real Estate Leads here and receive a guaranteed monthly quota of buyer and / or seller leads that are yours exclusively. You have your own region of any city or town in Canada, and all of the leads generated by individuals in that region will be sent to only you. It’s a sure-fire way to supercharge your client prospecting efforts and ensure that your new real estate business becomes profitable sooner rather than later.