this might have been asked before but is it a good time for a new agent to enter the RE Business? What do you guys think?
Thanks. :)

hope you're knowledgeable in distressed assets, i.e. foreclosures and REOs. from what i've seen, there's a lot of bottom-fishing going on, people hoping to snatch up properties on the cheap, so if you can specialize in foreclosures and REOs you'll have a great market right now

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www.ForeclosureLook.com

It depends.

Do you have several month's worth of income to live off while you wait for your first checks to come? Do you have the start up money you will need to pay for your expenses? (you will be surprised at your expenses.)

If you can survive for a few months (to almost a year even) without any income, and then still survive in case there isn't another deal for two or three months, then that's a big plus in your favor.

It typically takes up to six months - more depending on your market area - to get any kind of income. You could be blessed and start making money from the get go but if you do be sure to save most of it for a rainy day.

If you can survive this is a great time to get into RE and learn the business. You will actually have to work and be creative rather than just wait for bodies to fall through the door waving checkbooks and 10% deposits in your face...lol.

There is never an 'easy' time to break into real estate. A booming market creates its own challenges... not the least of which is that you'll be competing as a new agent with thousands of other new agents who've decided to take advantage of an 'easy' market. Get the picture?

I talked to a gentlemen the other day who, when he discovered I was a Realtor, laughed and said, "Oh my gosh the easiest job in the world! Just plant a sign and collect a huge check!"

Great time in PHX for me to be starting RE school

http://www.azcentral.com/news/articles/2008/07/24/20080724phx-foreclosures0725-CP.html

Guess I am going to need to learn the forclosure market?
http://www.eastvalleytribune.com/story/121508

I don't know whether to laugh or cry. LOL.

He stopped laughing as soon as I quoted him a few statistics about Realtor incomes from the NAR. Especially the statistics for new agents (less than two years experience.)

I also asked him how much he'd have to pay if he was writing his own health insurance check each month and creating his own retirement fund.

At that point he really started scratching his head.

It's all about finding what works.

I know multiple ways to make money in real estate.

In most markets you are dealing with foreclosures. In this case everyone is trying to list them but most banks,servicers are giving the work to the brokers who did them when knowone wanted them years ago.

That's ok you can still work with buyers on the foreclosures. Stay away from short sales as they are not worth the hassle.

This is the best time to buy in about 20 years so buyers should be flocking to purchase. I can't remember but I beleive they floating the idea around of passing a bill that would give first-time home buyers an additional 8k tax credit in 2009.

Look, there is always a market. It's either a buyer's market or a seller's market, but it is a market. Our challenge as agents IMHO is in positioning our businesses to take advantage of the market at hand. I am grateful (and certainly not boastful) for the blessings of a steady stream of buyers despite the fact that I carry no listings at this time.

Thank you guys for the info. :)
I am so glad I found this message board. :D

One thing I would add is that you need to have a certain amount of funds set aside for the first year for marketing yourself. Figure out home much you can afford to spend in marketing yourself and getting leads before you start. Many people think they are just going to get their license and BANG they will have a sale. You have to work hard and have the budget to market yourself unless you have an incredible SOI that is ready to buy now!

Paul

I wouldn't suggest that any new agent set aside a large part of their initial budget for marketing. Some brokers encourage new agents to do lots of mailings and those costs add up very quickly. And mailings aren't particularly effective without repeated exposures... perhaps six months of mailings to a targeted farm area. Even with bulk postage rates, sending postcards or brochures through the mail gets very expensive very quickly. An effective marketing tool I've seen many new agents use is to invest in some kind of inexpensive personalized gift... like the refrigerator magnet or calendar or sports schedule. The type of thing people can stick on their fridge or desk and make use of. Most of the postcards we mail out get tossed right in the trash. But a refrigerator magnet handed out at your open house or to your neighbors stands a much better chance of being saved...

The BEST marketing for new agents is to invest in very professional business cards. Invest in a professional photo... not a digital snapshot taken by a co-worker. Perhaps even have some nice brochures made up that you can hand out. Then MEET as many people you can and hand out your business card and/or your brochure.

I love this blog about how Realtors get paid too much http: //www.realestatewebmasters.com/blogs/malok/2119/show/

I agree 100%. While new agents should have money set aside to live on, I don't in a million years recommend that they spend it on self-promotion. There are SO many things a new agent can do to drum up business that cost nothing or next to nothing and are far more effective than simply spending money.

Entering Real Estate in a down market is good. Things can only get better.

Colleages are more willing to give you the time of day.

Entering in a brisk market leads you to believe it will never get sour. 90% (or more) of the bright young upstarts who entered in 2005 to 2007 around here are now gone. I hardly got to know you. As the Market dried up, so did they . . . . just dried up and blew away !

They had a few good easy Transactions but never learned how to deal with adversity, or fight to keep a deal alive. Tending to a Transaction that is in the I.C.U. requires an ability to identify and address the tiniest of issues.

In a brisk Market, we can afford to let more Transactions just die and fall by the wayside. A down market gives us time to "Keep Hope Alive" and devote more effort to searching for ways to get to the Goal Line (to mix a few metaphors).

I think if there is a difference in the Genders, as far as they apply to Real Estate, it is that Women (some) are more nurturing and they are often willing and able to identify which of the miriad of details that could affect the life of an embryonic little Transaction, and address them. And they also are usually a bit more patient then Men (some). That's also a valuable asset; especially in a down market. I admire both attributes.

Our past "good times" may have spoiled many prospective long term Agents by encouraging them to neglect to develop their own inate attributes. And when a Good Market returns, and if you're still here, you'll be here to recognize and participate in it.

Just some thoughts on Monday Morning. I've got some Guys in the I.C.U. right now !

Thanks... that is kick [censored]!

Keep your day job and you should be okay.

I just wanted to add one more thought about selling in a 'brisk' market. It's true that many agents got into the business during the boom times. But I'm not sure the average new agent who got their license during the boom was more successful because of the brisk market. In fact, I was in Washington, DC, when the boom got so booming that it was no longer a boom, but shear madness. Multiple offers with crazy bidding wars, escalation clauses, contracts with all contingencies being tossed out... including financing, home inspection, etc... That was VERY difficult for even very experienced agents to deal with. Were the rising prices nice to see? Of course. Was it 'easy' to work that market? Well, it was nice to be the listing agent. Working with buyers was an absolute nightmare.

While there is no 'easy' time to enter into this profession, I think the 'ideal' time might be in a calm market... neither boom nor bust. But in truth, those destined for success, who do the right things in the right ways the way we are trained to do, will succeed in ANY market!

Good luck!

[quote=Greene]Look, there is always a market. It's either a buyer's market or a seller's market, but it is a market. Our challenge as agents IMHO is in positioning our businesses to take advantage of the market at hand. [/quote]

This is what I tell people who suggest I'm insane/in denial/an idiot for making the career change now. How often does it happen that the inventory of houses is perfectly suited to the market for them?

A group of agents from one brokerage recently did a 6-week seminar designed to bring them back to basics and re-instill the enthusiasm they had as new agents. They sold a LOT of real estate over the course of the program. I figure I just need to do what they did :-)

Always is a good time to get into the real estate market, just you need to have some money saved for at least six months.

Sure and work real estate at night

this is a difficult real estate market, however, real estate is one of those activities that rewards hard work and the ability to learn and change as you make mistakes. if you think you have those two traits you will do well no matter what the market.

I am a new agent but I do believe we are overpaid. How many jobs can you get if you DO NOT have a college degree and still make 65000-100000+ a year, not a whole lot. Most people that are making 100000+ a year has to pay 200000 or more in student loans and even then will have a starting salery of only 25000 per year.(Lawyers, doctors, pilots)It takes years in those industries to make good money and it takes 12-20 years to pay off thier student loans. A REALTOR only has to complete high school and pass a short class. Also, last I checked, most companies have gotten rid of pensions and medical insurance because they are costing the companies too much money.

Well great, I hope you work for a discount company to match your moral aptitude.
Education,debt,other industries, color of underwear, etc., does NOT make a difference as to what someone deserves in pay. What about a natural musician who entertains and earns millions? What about the consultant who has no formal education but earns millions. It is the value both perceived and not perceived, that determines the pay. If I can help generate a million bucks for a million dollars house, I deserve a cut! What about the agent who saves his client hundreds of thousands of dollars and loss revenue by revealing a potential downfall in a site selection? What about foreclosure agents? What about bpo agents? The value of helping someone sell a piece of America, a piece of a local town, a hard to sell property, etc. can be almost priceless. Plus you obviously have forgotten about the potential for hedging against the potential losses of trying to do it yourself. As someone here has in there signature "If you think its expensive hiring a professional, wait until you hire an amateur!" Good luck on the listing presentation when youre asked about commission. How will you justify yours, even when its discounted? Youre a new agent? Keep us posted on who you work for, and how much youre rebating after working with a buyer for three months and paying a referral fee!

Pilot all I have to say is you have your right to your beliefs and I have my right to my bank account being fat.

Look, I am not trying to start a debate, everyone has a right to thier opinion. Let's say prices were up 50 to 100 percent in one year like the prices were in many areas from 2002-2006. In one year your salery doubled for the same amount of work. The paperwork and advertiseing prices did not change, the rest was pure profit. What was the cost of living increase durring those years?...something like 3-5%. My point is, like it or not, your commissions checks are more now than what they were in 2000 when prices were lower. yes prices are down in some areas but they still have not fallen down below 2000 numbers. I'm a new agent but have been investing in real estate for over 10 years. Markets will go up and down but in the end real estate allways goes back up, and therefore so does your salery (at least more than the cost of living index)
As agents we must learn to be good with handling our personal finance so that when times are bad we have money and investment properties avalable to live off of.

This Industry has been waiting for someone who'll work for Free and compensate for the rest of us Good-for-Nothing; Money-Grubbing; Blood-Sucking Leeches.

I'm glad Our Benefactor has finally arrived !

No offense intended nor taken. Good luck in INDIANA !

what if car dealers raised prices by 10 percent so they could pay thier salesmen (like realtors) a 10-15 percent commission, would you think that the price of a car is too much and complain? I bet most people would. I look at this from both sides. I am open minded about everything. This is not my first career, but my third. I am a little different with my opinions because I am doing this PART TIME for FUN. I do not work for a discount company (don't believe in them), and would not low ball anything. The problem in this industry is the booming FSBO. I understand your stress and hope everyone does well and makes as much as they can. Just trying to explain why people think agents are over paid.

Well, one thing, you could use some of that commission you say you don't deserve and take some classes - maybe you can learn how to spell their, salary, and always, to name a few.

You do make a valid point: it is too easy to become a real estate agent. I think one should have a solid grasp of the English language.

I personally think movie stars get paid way too much. Why don't you tell Brad Pitt he should cut his salery (sic). How about those athletes - they get paid millions of dollars to run around chasing a ball. And they do so darn much GOOD for us, too, keeping us entertained and all.

The fact is, most agents do not make anywhere near 100,000 a year - most new agents fail by the end of their first year and give up. The ones who are making six figures are the ones who have worked hard, educated themselves, and EARNED the RIGHT to that commission.

The top producer in our office is ALWAYS taking continuing education classes. ALWAYS.

The ones who are content with their high school diploma and the required continuing ed for licensing are the ones who are crying about how dead the market is...how hard it is to get deals, etc.

Agents who make six figures in THIS market clearly deserve it because they've worked hard to become experts in their field.

It's very easy to say "You earn too much" than it is to say "I need to push myself to do better."

Pilot, what percentage of agents in your area are making $100K a year? That's NET I mean. After expenses.

And of those who are netting $100K+/year, how many years experience do they average? How many hours do they work each week?

Any idea?

And do you have any idea what percentage of real estate agents quit during their first year?

Just curious.

Could you further elaborate on this remark?

If Realtors are overpaid, why is it that NINE OUT OF TEN new licensees quit by their third year?

Why would they give up all that easy money coming in?

Does that make any sense to you Pilot??

I think they are overcome by the guilt they feel for taking all that money they don't deserve.

I have to make a quick run to the Bank !

You actually do your bank runs yourself? Why bother with menial tasks like that? Why not hire a full-time assistant who does nothing but drive back and forth to the bank each day depositing all your grotesquely huge checks? You should also consider hiring a full-time assistant who does nothing but wash and polish your Lamborghini.

Vermont, you just don't get it. Doing your own puny errands?

Sheesh....I'm ashamed of you!

People think so because they don't understand nor appreciate what an agent's experience and knowledge can bring into a deal. An agent can help you keep more of your equity or can help you minimize your losses if you are upside down.

People venture into selling by owner because they think that it is easy. They don't know the first thing about pricing a property, the legal documents needed to keep out of trouble, the steps needed to keep a deal together, in particular if it's in I.C.U. as mentioned by Vermont007. Getting an offer on a property is just the beginning.

In a declining market, if you have to sell, there is no time to experiment. Selling sooner rather than later could be the difference between keeping or losing thousands. Many have lost thousands because they didn't want to listen to their professional realtor or even have one for that matter, and by the time they finally came to their senses and were able to sell, they had lost so much that should they had listened earlier on they could have paid the commission and still come ahead in the end.

I do it myself at night because that is the only time I get to think; and also the only time that the Lamborghini is available. I don't ever want to be seen by the Locals driving it during daylight, so it stays in our Shampoo Parlor.

Like, duh, you are not supposed to, er, think. That's for doctors and pilots and Brad Pitt. You're just supposed to put a sign in a yard, and a big check in yer pocket dontcha know.

Think. What am I gonna do with you?

Only because when I'm cruising in that Lamborghini through the mountains on a pitch black night, the Vermont DMV demands that I be vigilant and "Think" about the Moose and Bear and Deer that frequently jump out in front of me. If it were only up to me, I wouldn't think at all . . . . but the DMV makes me do it.

Now, after all this criticism, I have a hankering to cruise on over to the Bank again before dawn; just to check my balances on the ATM . . . . but this time I'll do it in a thoughtless manner.

"Men fear thought as they fear nothing else on earth - more than ruin - more even than death.... Thought is subversive and revolutionary, destructive and terrible, thought is merciless to privilege, established institutions, and comfortable habit. Thought looks into the pit of hell and is not afraid. Thought is great and swift and free, the light of the world, and the chief glory of man." (Bertrand Russell, British philosopher, 1872-1970)

Well "like it or not" you've started a debate.

If prices go up, why do people still use agents?

Please explain to us how the booming FSBO is a problem in the real estate industry.

You obviously have a problem with agents being overpaid, yet you're not taking less than the "average" agent? Kind of hypocritical to me. So you don't have a problem with the pay for transactions, you just have a problem with agents who can complete WAAAAAAY more transactions than you? To those who dont "do this for fun, part time" ??? Make up your mind!!

Please do not take any of this personal, which many are. The fact is this : You are only worth what people think your service is worth. Or you could say you are paid what your worth. If you think you are UNDERPAID please by all means raise your rates and let me know how that works. FSBO and the internet is a problem in the industry because it is taking money away from your pocket. There are still a lot of successful transactions that are being conducted without an agents help. There is a high turn over in any industry. How many pre-law or pre-med students actually graduate? This industry is not for everyone and since the only way to figure out if you like it or not is to try it there will be a high turn over.

Except on this Thread, FSBOS ARE NOT a major Threat. As a matter of fact, FSBOs provide me with another source of income in my Consulting business. I have little problem selling my time on an hourly basis to these Folks. Quite a few subsequently become Clients.

FSBOs are actually more concientious than most of the other Sellers that we counsel "for free" in anticipation of being compensated with some elusive percentage of a Transaction that may or may not be consummated at some future date. Time is not so free-flowing when it has a meter associated with it. I don't do for them what they can do for themselves.

I also provide a consultation service to Buyers who are thinking about, or are already engaged in purchasing a FSBO; and I make every effort to "not put cold water" on what might otherwise be a good deal. They too, at some future point, often become Customers, and even Clients. This IS NOT a business that provides immediate gratification.

An "Honest Broker" will always have a place. Some of us have Post-Graduate Degrees; but like you, can practice Real Estate for the "fun" of it. That's what this Forum is, a good place to practice; hone, and yes, even sometimes "think" about this business that allows us to have such an impact on the future course of Others' Lives . . . . even FSBOs !

So much for the Filosofy of FSBOs. Bertrand Russell could contribute much to our discussion; but "Too much thinking will Dull the Mind". Anonymous

Are "Mr. Owens" and "Reggie Owens" one and the same Person ? What prompted this change ?

I'm sorry; but I have to pay attention to these subtle changes in the World around me.

Most of the Reginalds I know choose to go by Junnie when you get to know them.

Pilot it seems you are just after a debate. This horse is dead and has been around the block many times over the years in these forums.

As for people and there belief