I am a real estate student in CA. I am very people oriented, love to do research online. I like the idea of helping buyers find the right home. I can see how this would possibly be more work and effort than listing a home might be. But I would like info from those of you who are in the business. I read the phrase "If you don't list, You don't last" in an article, and am wondering why? Not that I don't plan to list, I just see myself more of a buyers agent for some reason! Is it really difficult to be a buyers agent? Is the real money (or 'less effort for more money') in listings? Please tell me more about being a buyer versus seller agent...

Thanks for your feedback...

Buyers don't come to you because you smell good . . . . they come because you have something listed that attracts them.

People keep trying other methodologies; but that's still the tried and true foundation of the business, and the origin of that phrase.

If you don't want to list you had better have a very strong internet presence or you won't have any buyers to help.

Both sides, listing agent or buyers agent, can be a real PITA.

Or you could have some golden clients - the seller that believes your expertise and takes care of everything and lists reasonably; or the buyer who makes up his mind on house #4 and believes you when you give him market data to show where the home should sell for...

More often than not, though, you're going to end up with crazy clients. The seller who is so needy that you must call twice a week to tell her you're on the job...yep...but she refuses to price for the market. the buyer who wants to look at house #45 today, because it's THE ONE and they are RIPE and ready to go...oh darn, they don't like the fireplace.

The key with listings though is you get them, and you can go on vacation and still make money - because a buyer's agent has just shown your house and called your cell with an offer. You can then handle things via email or refer them to the office administrator.

What happens if a buyer calls you while you're on vacation? You either have to convince them to wait till you get back, refer them to someone else and get only a portion of your pay if they buy...or lose them completely.

You can only take one buyer out at a time...but you can have twenty listings up that other buyer agents are showing - and one or two could go under contract while you're out with one buyer...

Not that that's LIKELY but it COULD happen...

In order to work, the real estate community needs buyers AND sellers... and it needs LISTING AGENTS and BUYERS AGENTS.

Personally I'd rather spend my time and effort in marketing listings; that's where my passion is and where my most significant talents lie - plus I can do that in my PJ's at home. Whereas to make money with buyers, dang, I have to shower, get dressed, fill up the van, drive around for hours, and maybe get an offer...

There's pros and cons to both sides but I'm leaning more toward becoming a listing agent. At least, that's what I'd LIKE. I enjoy buyers too - don't get me wrong - but the listings, the listings, the listings. I want to have 10 listings go under contract for me while I'm at Lake Michigan this summer...

If you want to work with buyers, that's just fine! And yes, you will find them without having a bunch of listings. My first 25 deals were all buyers and I had no listings until my 14th month on the job. I do not believe that old cliche - although I think you will find as you gain experience and confidence that having listings is just dandy, too.

I think you can survive either way in the market. It all really depends on how hard you work. I do think the more successful agents have a balance between listings and representing buyers.

One thing PERKY didn't mention that is important as well. You could FINALLY find the perfect house and show the buyer house number 38. You put in the offer and dangit 3 other buyers like it as well. If you aren't the winning bid the agent has to start all over again with the buyers whereas the listing agents sellers most likley WILL accept and close on one of those offers.

This is a key difference between buyers agents and listing agents.

I like being a listing agent because I get more control over my time and the escrow. If it falls apart because the buyer racked up credit cards, I will still get paid when the next buyer comes along. I still work with buyers, I am just pickier about who they are and where they come from in the interest of my time.

I don't buy into that statement, but am not in favor of driving around buyers all day either. With all of the down payment assistance programs in place, I'm thinking more and more about hosting home buyer classes and referring out leads to other buyer's agents at a 25% cut. To everyone else's point about buyer's agents, you can either drive them around all day and present a bunch of low ball offers with no prayer of getting accepted, and maybe one day get a deal or you can refer out 20 or 30 at a 25% percent referral fee and make even more money much faster.

Let's do some math. One transaction at $140K (avg. first time home buyer purchase price) X three percent co-op = $4200. Subtract your own splits and what do you have?

OR

Take $1050 (25% of that $4200) X maybe 10 referrals = $10,500. It works great in theory. I just need to put it into practice for the real test.

PV

Jennifer said her first 25 deals were buyers, that's nice, but she fails to give the sources for those buyers, and I doubt she worked for a broker without any listings and no MLS.

Yes, you can work only with buyers if you have a workable system, but with only two exceptions did I ever see an agent that didn't list stay really successful in this business. Also what happens to a buyers agents clients when they decide to move in the future, do you hand them off to someone else because your only going to work with buyers?

There are plenty of low volume agents that are basically supplementing their income by working with buyers, but the reality is the foundation of their business is based on the listings of someone, somewhere. Such as being the buyers agent on a team.

No listings to show will = ex-agent. If all listing agents only did co-ops with other listing agents, would = ton of ex-agents. I became an agent when the MLS was only used to put white elephant properties on, and showing another brokers listing was a project. Take it away today, and a non listing agent would be in big trouble same as the old days.

Plus, most of my sellers become a buyer for me, or at least a referral.

PV,

You're probably young, and obviously new to the business, right?

Me too. A lot of what these other agents are saying are EXAGGERATIONS of what life is like as a buyer's agent. As long as you listen and help them find the right home, you'll be able to sustain yourself in this market. After all, it's a "Buyer's Market" duh!! That's who has the power right now. So why not start with the winning team and learn a lot in the process?

Bottom line is that Retail Listings are not selling in this market. They're just not....sorry.

Unless you are doing Short Sales, REO's, or can find Seller's with tons of equity you're going to be hard-pressed to actually sell their homes.

So, if you're young and new (like me) then you work with buyers. You help educate them, and earn their business for life, along with some referrals most likely.

I sold 4 homes last year in my first 6 months as an agent (with no plan), and this year in 2009 I've sold 7 homes already through March (with a defined Biz Plan and a lot of hard work). Avg. sale price of $180,000 which isn't horrible.

I plan to do Buyer's mostly for the next year or two, and when the market begins to come up in price, I'll be able to get some listings and have some experience to fall back on--which is what seller's want. Right now, I don't know what it takes to sell a home or talk to a seller, because I've never been one. But, I do know how to buy a home and can help people do that quite well.

Most buyer's are younger and you will be able to be their friend before being their agent. This is something that works in my favor everyday I meet buyers.

Long haul--yes listings will bring you much more money and make you richer, but you can't start running until you crawl and then walk.

What are the buyers going to be buying?

You can't have buyers without sellers.

You can't have sales without listings...someone has to have the listings.

Those 25 buyers were all as a result of my Sphere of Influence. None came from my office listings.

Did someone say that listing agents have no place in real estate? Uh, duh, no. But if someone chooses to work primarily with buyers (or ends up doing that), they can certainly make a fine living in this business.

Absolutely it's easier for new agents to get buyers than sellers - but some of the comments on here make it seem like you're wasting your time if you go for sellers...?

So, according to their logic, you should only try to list properties in a seller's market?

Really I think it is like everything else in life: it's all about balance. I love buyers but I long for the days where I am not required to jump at a moments notice to show buyers a property.

Just yesterday someone emailed me ABOUT A HOUSE NEXT DOOR TO MINE. I saw the email 10 minutes after it was sent. I responded as soon as I saw it. This person did not try to call me on any of the three numbers I have listed...but even with only ten minutes response time, I didn't move fast enough...

Then the buyer replied with "Sorry, I just called your office and arranged for another agent to show it to me."

I am not interested in continuing to be a slave to the phone and the computer so that I can grab the buyer the INSTANT they contact me or LOSE THEM FOREVER...

If I were the listing agent for that house, it wouldn't have mattered much if I missed the call or the email, my property would still have been shown, and if that person bought it, I would still get paid.

Bottom line is if you list the property you CONTROL it.

In commercial real estate often developers will get a property under contract and try to line up financing and commitments from Publix,or a Walgreen's etc. depending on the size of the deal and what type of zoning class the county or city will allow.

Sometimes the corporate companies are dirty and will try to cut you out of the deal. This is why I list the land. If anyone wants the land they will have to go through me on the sellers terms and we will not be held hostage waiting for a corporate approval etc. before they buy.

Developers love not to put much earnest money down but want to be exclusively under contract. I make them put up a big non-refundable deposit for that and if they don't do that I put in the right to continued marketing.

Buyer,Seller it does not matter at the end of the day you have to qualify them properly or both will waste your time and money.

@Super - re: qualifying the customer properly - **absolutely**!

@Perky - in my area (which is all I can speak to) 90% of the sellers are unrealistic in their pricing - even if you show them the numbers and explain the market to them and ask them if they've seen the news (me being facetious, of course - but you get the point). They want what they want. I turn down 9 out of 10 sellers in this market because they won't let me help them (and there are plenty of other agents out there who will list it for whatever they'd like and say "that sounds, GREAT! HOORAY! Look at my overpriced listing and my soon-to-be disappointed seller...).

I wouldn't recommend jumping for a buyer (or anyone, for that matter) - I pre-qual them. Are they working with a lender? do they have a pre-approval or proof of funds? This comes first before we start working in earnest. I've learned my lessons. I had a guy snap his fingers at me once and say "I'll get approved like THAT!"...he never bought anything...I pretty much knew he wouldn't as soon as he balked at the idea of getting (gasp!) pre-approved for a loan.

As a general rule, I find 90% of buyers right now are happy to do it "the right way" compared to only 10% of sellers. So...based on that, I tend to put the vast majority of my efforts into working with buyers rather than with sellers. A seller costs you money every month - serious buyer's cost me money for a couple of days, maybe a week at most...and if they're willing to take the time to get me a pre-approval, proof of funds, or some other commitment, chances are they're serious about buying (i.e. I recoup my investment). Don't get me wrong, I'll take a realistic seller any day of the week and I'll rock it like nobody's business (my last listing sold in 4 days with 4 offers in on it) - but for the most part, sellers are money pits in this market and you won't recoup your investment.

I agree with you 100% that someone has to have the listings in order for the buyers to buy something. I just find that I'd rather let all the other agents waste their time/money on unrealistic sellers and I'll just cherry pick the homes that I show my buyers from the available inventory.

@Greene - re: referrals instead of buyers...what about taking those 10 referrals that brought you $10,500 and handling them all yourself and making $42,000 with a few more hours put in per buyer... - sorry, I like my way bettah

ManFromTheBand

You must be busy too. This post is pretty old for AO.

I am juggling about 12 qualified buyers by myself right now and am putting in very long days, so I know how to get them to call and qualify them. I guess my point was that the time I'm spending driving folks around, handling paperwork, staying on the coop agent and managing the calendar for 12 qualified buyers could be better spent increasing that number to 12 to 24, 36 and so on. I'm already averaging working with about three clients per Saturday. I'm told there's a guy out in our Cobb County office that did over $300K (in 2007) by generating leads all day and then just referring them out at a 25% cut. I've already referred out two this week because I could not give them the type of customer service they deserved.

I'm not trying to recruit here, but ideally these leads would be passed on to people in my downline so that more money could be made. For now, I'm just going to keep them and this busy schedule because there are a few things the family would like to do this year and we need the $$$.

Yes Greene this is the reason I am starting to add agents to my brokerage. Most struggle with lead generation and that has always been one of my best attributes.

Referred leads sometimes have a higher chance of closing because that agent doesn't have much business and can hyper focus on that buyer.

I have seen agents that will call buyers endlessly and move mountains for them but can't find a lead to save their life.

I just want to hand off the leads,collect my fee,and be broker support. Then I will soley focus on commercial real estate and my investments.

real salespeople always find their own way...