If you don’t know it yet, you soon will understand that real estate is a tough business.  As an independent contractor, no one is watching out for you; except you.  I would like to offer some words of wisdom and advice to the newby Realtors and others that I wish had been given to me back when I started my real estate career five years ago.

Having a real estate business is just like any other business.  You must protect your information including contact lists.  It is tempting to utilize all the tools that your brokerage may offer to stay in touch with clients and do marketing campaigns.

However, you should know that companies may take that information and use it for their own benefit if they choose. If you think your brokerage is above that, I recommend getting something in writing before you use the company products, computer and email.

It is easy enough to avoid the entire issue with a few simple practices:

1. Own your domain name.
2. Have your own website with an independent company that specializes in real estate products to host and maintain it.
3. Have an email address that is not managed by your brokerage.
4. If you want the convenience of a secondary company email, do not give the address to clients or publish the address on any websites.

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I am continually amazed by how little some people know about the real estate business.

Most people generally have a good idea about how the industry works but every now and then I run into someone who is pretty naïve about the home buying process. Even doctors, lawyers, CEO’s and other professionals may not know how our business works.

Here are 10 things you should know about working with a Realtor®.

1)  Realtors® work on commission

There may be a few exceptions here and there but most Realtors work on 100% commission. That means no salary, no draw, no bonuses, no nothing. If there is not a successful closing the Realtor does not get paid. No only do they not make any money they actually lose money. Agents are essentially small businesses with various expenses like advertising, websites, business cards, stationary, direct mailers, gas, time and energy. If they don’t generate revenue they lose money.

Realtors are not public servants. Don’t ask them to work for you if you don’t think they will get compensated with a commission from a successful transaction.

2)  Hire a Realtor®

First figure out if you want to work with or without a Realtor. Some people want to work directly with the listing agent because they think that they will get a better deal on the property. If you do want to work directly with the listing agent keep in mind that they had a prior relationship with the seller before meeting you. The Realtor might look out for the seller’s interests instead of yours. It might be best to hire a Realtor that represents you in the transaction. Continue reading this post

I mastermind with agents from my area on a regular basis and a question came up in discussions with this mastermind group of top agents in Tampa, Florida, that I thought would be a great blog topic.

So, when do you know it’s time to add a full-time assistant to your business?

I was asked this question and the first response I could think of was: “When you can afford it”. I’ve learned in the last year, as our business has more than doubled, that if I hadn’t taken the plunge to hire my assistant, I’d still be in the same place I was last year.

Looking back a year ago when we decided to build a team, hire staff and add agents, I realize there were some tell tale signs it was time for us to get “people leverage” and help to take our business to the level we wanted to.

We were very productive and profitable (I sold $7 million that year and was “lean” on expenses) but we had lofty goals and knew there is no way I could keep up with it all myself.

Ultimately, I knew if I wanted to sell more real estate, I would need someone to handle the paperwork, admin tasks, transaction management, appointment setting, photo taking, lock box hanging, and all of the other tasks that can take us away from our lofty sales goals.

However, you have to have enough income or savings to be able to afford it for a few months. It’s always a risk because you could hire the wrong person, lose money, disappoint clients, etc. Continue reading this post

Bad advice number 1

“Dont pay for leads.” “You are crazy if you pay for leads.” “The leads you receive are worthless.” “You can generate your own leads if you are worth your salt in real estate.” 

I listened to this one for awhile. It did make sense, at first. I was working day and night to try to generate my own leads and I got plain burned out. So, I decided to give HomeGain a try. Technically, yes, I am paying for leads. Oh it is so nice to have leads come to me instead of spinning my wheels. Now I have time for other things like, meeting people!

Bad advice number 2

This one is very controversial. “Don’t pay for enhanced listings on Realtor.com.”

I listened to this one from some very well respected folks in the industry. Well, I got a really nice listing and I gave in and got the enhanced listing package. I grew very tired of trying to explain to sellers why their listings aren’t showing multiple pictures. “Suzy Seller down the street has an enhanced listing.” Sellers don’t care about the politics of Realtor.com. They just want to ooh and aah over the listing on Realtor.com. They will go there to check on it. Even if you give them a hundred other websites to look at, they WILL check Realtor.com. And I do get leads from Realtor.com. Good ones.

Bad advice number 3

“Blogging is a waste of time.” “You are a Realtor not a blogger.”

Ok, I admit I am not a blogger. I try to blog. I am a real estate broker who happens to blog. I blog my listings and real estate news. Maybe a few jokes and community news now and again. It is very eclectic. It is MY blog. I can do whatever I want, darn it. Now I am even blogging on multiple sites. And the sweet majic is…..SEO! Can you say number one on Google?

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Surrounded by plummeting prices, bankrupting banks, fickle financiers, sagging stocks, cantankerous consumers … It’s time for some frivolity.

If you, like I, show a decent number of properties and, in the process, read the displayed MLS remarks, you’ll quickly discover that the art of good fiction writing is alive and well. With the current onslaught of foreclosures and distressed properties, listing agents have become, by necessity, “creative” with their carefully crafted comments. As I read their information, designed to convey the important aspects of the home, I’d swear some of them are gunning for a Pulitzer.

And then you visit the property, read the comments again and ask, “How did we get there from here?”

As an example, a property I recently visited had remarks stating, “Needs cosmetic work.”

Translation? “Throw in a stick of dynamite and start over!” The carpets were decimated, strips of wallpaper hung peeling from the walls, all the baseboards were missing and there was SUBSTANTIAL water damage to an upstairs bathroom floor and the ceiling underneath. Read, “gaping hole.” And that was just the beginning.

A REALTOR’S job is to sell property, and what they pen is designed to get you and your homebuyer to visit.

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We all know that the real estate industry is in turmoil. The credit market is tight and is inhibiting homebuyers. Home values have declined for several years and sellers cannot afford to sell. We are stagnating and consumer confidence is at an all time low.

So, what will kick start the industry and get it moving? Will the economic Obama stimulus package provide the benefits the Federal government has indicated? Will financial markets recover? Will homes start appreciating again? Will we all have jobs?

This is what we are all asking ourselves, but what do we do while we are waiting for everything to take effect? Well, take care of what you can and hope for the best for the rest.

We need to change our expectations. We will not be able to buy a new car every few years. Forget that 42″ flat panel TV. Do you really need to go out to dinner again this month? You are planning on retiring at 55, really?

We can change our habits. Save your money. We can save for the next rainy day because we are already in this one. We better learn this lesson now. Make your expectations realistic and do not live beyond your means. Continue reading this post