Once you’re in the real estate industry your eyes will be open to a lot of truths that others aren’t aware of or can’t understand. To prepare you for your new career, we’re giving you the inside scoop with five insider facts only real estate professionals know.
Industry Fact #1 - Real Estate Agents Have to Meet a Lot of Demands
Some people question what it is agents actually do. The better question is what don’t they do.
Given that a home is a huge investment, it’s understandable that clients want to get a lot out of the process. But few people understand how demanding buyers and sellers can be. Most clients are reasonable once you explain how things work, but there are a few that still have a lot of demands that can go beyond the call of duty.
Typically, the higher the price point is the more demands you’ll get. Agents have to do their best to keep clients happy and make them feel like their demands are being met without being taken advantage of. Remember, an agent is a professional whose expertise is helping clients buy and sell homes not being a personal assistant, housekeeper or dog walker.
Industry Fact #2 - Lead Generation Never Stops
You may have heard that leads are the lifeblood of real estate. What you may not know is that no matter how successful an agent or brokerage is, the lead generation never stops. It’s a top priority for everyone in the industry. That’s why there are countless tools and services solely dedicated to lead generation.
Most highly successful real estate professionals make lead generation a daily activity. They may get to the point where they have an assistant or employee do it for them, but it gets done nonetheless. All agents have to continuously gain new leads, nurture relationships and stay in contact with their existing network if they want to grow their business.
Industry Fact #3 - It’s an Industry Built on Individual Entrepreneurism
Some industries have a few big players that serve the majority of the market. Other industries hinge on a specific technology or access to specialized machinery. In real estate, the industry is built on individual entrepreneurship.
From the outside, real estate can appear to be a collection of large brokerages. In reality, it’s much more granular. Each of those behemoth brokerages relies on real estate agents that possess an entrepreneur mindset and drive to run their own business. The industry also includes a number of independent inspectors, appraisers, and contractors. Without all of these individual microbusiness owners that are willing to bet on themselves instead of settling for a salaried position, the industry couldn’t exist.
Industry Fact #4 - It’s Always Evolving
Few industries evolve as much as the real estate industry. Everyone knows that markets change on a regular basis from year-to-year and even season-to-season. But only insiders understand that the industry evolves well beyond the local market statistics.
For starters, laws are updated all the time. Real estate professionals have to stay on top of the changes or could risk losing their license. Taxes are another concern. Because most real estate professionals are independent contractors, they are in charge of withholding and filing their own taxes. Any time the federal, state or local tax regulations change real estate professionals have to make adjustments.
Technology is another factor that’s dramatically changing real estate across the board. As PropTech advances everything from blockchain purchases to home tours to continuing education is evolving on a daily basis.
Industry Fact #5 - Real Estate is a Caring Industry
In many industries, it’s all business all the time. Not so in real estate. Too many emotions and personal connections are involved. Most agents and brokers are caring professionals that want nothing but the best for their clients and strive to do everything they can to help them make a good investment. And if they’re Realtors they are beholden to a Code of Ethics which states just that.
Unfortunately, for those outside the real estate industry, there’s a perception that it’s all about home prices and closing deals. People often question the motives of agents and suggest they’re looking out for their own best interest (a.k.a. commission) not their clients. Once you’re inside the industry you quickly realize it’s full of passionate people who are service-oriented, not self-serving.