Why do experienced top agents sell more in shifting markets? We will cover the various reasons, and why it matters when selecting an agent in a shifted market.
87% of agents fail within 3 years. Some start out as part-time and many end up as part-time before ending their career. People are attracted to the real estate industry because of the lure of big commissions and schedule flexibility. They quickly realize real estate sales is harder than they thought, requires more work, more money, and more time. At the end of the transaction, after expenses, broker splits, and fees agents are disappointed with how little they keep. People are also disillusioned with the emotional toll a transaction takes. Learning the skills and knowledge to guide people through a transaction and remain calm is a mindset few are prepared for.
Experienced Top Agents Sell More
If agents are going to survive in real estate they must develop better skillsets. The ability to talk to people doesn’t cut it. Understanding people’s needs, fears, finances, and motivation can lead to better solutions for the client. Agents must possess knowledge and solutions after they thoroughly understand the client’s situation. Talking accomplishes none of those things, but listening and understanding does, assuming the agent has the experience and knowledge to offer solutions.
Top agents also invest back in their business. Not only do they invest in themselves with education, they also invest marketing dollars to promote their listings. Gone are the days of relying on the broker to spend money to advertise a listing. Listing a home on Zillow or Realtor.com is not marketing. Almost every listing is there, so if everyone is there, what does that do to make a home standout?
Advertising
Paid advertising creates leads. In lieu of paying advertising, some agents will sign up for referral networks where they pay a referral fee for leads. The problem with this is the company can change the policy at any time, change the fee, or cancel you altogether. Many agents using Zillow have found out this lesson the hard way.
Experienced agents know that clients expect advertising. Advertising helps build a database of buyers and sellers. Without this database, agents are relegated to a pay as you go model. If an agent has a slow month or two, many cannot afford to keep paying. I’ve seen some agents paying $15,000/month for leads and only bringing in $10,000/month from them. That’s a good way to be out of the business in 3 years or less.
Real Estate Cycles
Real estate moves in cycles. Agents come into the business in one cycle and learn how to operate in that cycle. When the market shifts, agents are lost. What worked yesterday no longer works, and the expenses are piling up. Agents who came into the business in the boom times are struggling right now, and have no money and no answers. This is where skillset and capital comes into play.
The last major market shift occurred beginning in 2005. If you find an agent who has been successful since before 2005 you will have selected an agent that has worked in all three types of markets; up, down, and sideways.
Selling Homes
Agents are asking how the Ellis Team is selling so many homes. The answer is education, experience, skillset, hard work, and marketing. We may make it look easy, but it is not. The Ellis Team is good, but it is hard work and takes skill.
We are fortunate. Our sales have been strong the past several months, and we are on pace to have another big month this June. If you have a property to sell, you should call Sande Ellis or Brett Ellis at 239-310-6500. We can answer your questions and evaluate your situation. Or visit www.SWFLhomevalues.com for an instant free online home value estimate. When you have a property to sell, you’ve got to do something to make it stand out from the crowd. We can help with that! Experienced Top agents sell more. Put the real estate marketing experts to work for you.
Good luck, and Happy Selling!