What Very Few Know About
What Real Estate Agents Do for You...

Recently, a very experienced REALTOR® friend of mine posed an insightful question in a public real estate forum: "What's the one thing you wish the public—clients and new agents—knew about being a real estate agent?" The responses from seasoned professionals shed light on some of the lesser-known aspects of the real estate profession. Here are some key insights they shared:

1. It's Not Just a Job, It's a Business:

   • Getting a real estate license means you're not just employed; you've opened a business. This requires managing marketing, client relations, accounting, and continuous education.

2. Referrals Matter:

   • A referred agent is typically a better choice than a random selection. These agents have proven their worth and are trusted by those who refer them. Somebody is putting their name to this agent they are referring you for a reason.

3. Specialization and Expertise:

   • Real estate agents are not commodities. Each agent brings a unique set of skills and expertise. Discount agents often compromise on quality for speed, leading to self-serving advice, poor results and frustrating experiences. This often translates to lost profits and bad service for clients.

4. No Salary Until Closing:

   • Agents only get paid when a deal closes. Despite this, many people think agents draw a salary. Most agents only get 65% or less of the commission they earn. They also incur significant out-of-pocket expenses before being reimbursed, if at all. They lose money when a deal doesn’t close, which is one reason why the failure rate in real estate is approaching 85%.

5. Behind-the-Scenes Work:

   • There's a tremendous amount of behind-the-scenes work involved in settling or closing a property. This includes coordinating inspections, negotiating repairs, managing paperwork, and ensuring compliance with legal requirements. This invisible labor makes many think agents are interchangeable, but it's what often determines a successful transaction.

6. Local Expertise:

   • An experienced agent connected to a neighborhood is incredibly valuable. Real estate is intensely local, and hiring an out-of-area agent can hinder the potential of your transaction. Local agents know the market trends, neighborhood specifics, and have local connections that can be crucial.

7. Legal Protection:

   • Real estate agents protect clients from numerous legal hazards. They ensure that all contracts are properly executed and that all disclosures are made, safeguarding clients from potential legal issues.

8. Education, Ethics, and Experience:

   • These three pillars are critical in real estate. The right agent provides good advice, fair treatment, and honesty. They are continuously educating themselves to better serve their clients. The top 5% of agents, like myself, are even professionally coached for accountability and growth, ensuring they are always improving and never resting on their laurels.

9. It's Not as Easy or Glamorous as It Seems:

   • Many clients believe real estate is an easy job that pays well. In reality, it involves long hours, constant education, and a high level of expertise. The perception of ease and glamour is far from the day-to-day reality of hard work and dedication. I’ve had many interns quit because they said it was either “too boring” or “too hard”. Real estate isn't all HGTV glamour; it's more like trying to assemble IKEA furniture with missing instructions. Sure, it looks easy on TV, but behind the scenes, it's a lot of sweat, improvisation, and praying you don't end up with extra parts!

10. This is a great career if you plan to run your business like a business, budget your money for the long hall, build relationships, continue your education and provide excellent service that creates advocates. Advocates refer you future business only when inspired to do so, and future business builds careers through all market types; referrals are recession-proof.
    
    

    

The Real Cost of Being an Agent

The public often overlooks the real cost of being an agent. From marketing expenses and professional dues to ongoing education and technology costs, the financial burden can be significant. Agents invest heavily in their business to provide top-notch service. Not to mention the toll it takes on your personal time and family without
setting proper boundaries, (which are under constant attack by impatient agents and demanding clients).

Why Choose the Right Agent

Choosing the right agent can make all the difference. An experienced, ethical, and well-connected agent can maximize your profits, minimize your risks, and ensure a smooth transaction. On the other hand, opting for the cheapest option can lead to a host of problems and ultimately cost you more. If you think hiring a professional is expensive, wait till you experience the cost of an amateur!

Final Thoughts

In conclusion, real estate agents do far more than what meets the eye. They are business owners, local experts, legal protectors, and dedicated professionals who work tirelessly to serve their clients. The next time you think about buying or selling a home, remember the value of having a qualified, experienced REALTOR® by your side.

By understanding these often-overlooked aspects, you can make more informed decisions and appreciate the immense value that a dedicated real estate agent brings to the table. And in San Diego, CA I’m never too busy to serve you or your referrals! I’m also connected to quality agents I personally know in every major city of the US and Canada. How is this possible, you ask? 25 years+ of coaching and training with them!

Cover Photo: by Zhanargul Kulmagambetova - Pixabay
Photo 2 by Mohamad Hassan Pixabay