A broker told me that most new agents only close 6-8 properties their first year. Is this about right? I would like to do at least 3-4 times that amount. How many closings did you have your first year?

I'm on my 5th year and I had nearly 30 this year. I think 6-8 would good start and a realistic beginning. Good luck to you though!

It is hard to say. Some rookies may close 6-8 deals in their first year, and some may close double or triple that number. Also, other factors such as the market and the type of properties the realtor works with will affect this number.

I would say, however, 25-30 closings in a rookie's first year is a lofty goal. Good luck, but don't get discouraged if your actual amount of closings is closer to the number that your broker suggested.

Thanks for your input Adam Benedict and Kristi Leak. I became an active Realtor this week. We'll see how this year goes...

Good Luck!!

Please make sure to give as update after your first year.
Thanks

I think it really depends on a rookies sphere of influence and how much they can get from it. This is my wife's first year. She got her license in the middle of Sept. 3 closings so far. But 4 under contract right now and no sign a let up of new clients for her. But I have to say she has an advantage. The only spanish speaker in her RE/MAX Franchise in a city of 100k with 50% hispanics. She hasn't had to do any traditional prospecting. It's referral after referral. I've turned into her assistant.

I hate to be the bearer of bad news, but 90% of agents retire within 2 years of initially registering. So to talk about what agents average is hard to say because so many fail. Just be lucky to survive, build a sustainable business and get referrals. Usually the stability comes within 3-5years, so don't get trapped with numbers only......customer service is what is going to keep you flourishing in the industry.

HoustonRE,
With no offense here , but your determination and being so sure scares me !
You have not made your first sale yet!
How did you figure out you are going to do 3 times more transactions then most of us average agents?

Most new agents close little or nothing their first year. And most are gone within 2 years. And of the few that survive that gauntlet, most then close 6-15 a year and make very little money after expenses.

A few talented agents push through to real success and are part of the 10% of active agents who do 90% of all the business.

I frequently have to point out that the business a New Agent conducts is comprised of transactions that probably would have occurred whether s/he had entered Real Estate or not.

What the New Agent has to do is wrestle these transactions out of the control of the people who otherwise would have conducted them.

Don't fall into the trap of thinking that you're creating something special; or making something new happen that wouldn't have happened without you. It may have taken longer; and may have involved other actors . . . . but it probably would have happened whether you have a LIcense now or not.

It's just that someone else would have had the business . . . . and has that Commission in their pocket, not you.

A New Agent has to be prepared to work harder, longer, and smarter than the other the people who are already in the business, and take their business away from them.

I'm in my first year and no deals yet :(

Very difficult to convert buyer leads but still trying!

Up in Canada, Ontario specifically, the average sale per agent is 4 per year.

80% of all new agents fail in the first 2 years. So that's the ugly side. The good news is that's not always the case.

A rookie Agent I had 2 years ago did 53 ends her first year. I had a rookie last year do 23. Good numbers indeed.

It can be done, but yes there are a few factors that play into this.

Best

Marty

One of the things I love about this business is that anything is possible. It really is a matter of effort and the methods you use to get clients at first, and then your referral numbers will eventually feed off that assuming most of your clients were satisfied.

Someone who jumps right in doing cold calls, door knocking and using other aggressive forms of prospecting will likely do considerably better than someone like myself whose personality does not lends itself to those tactics.

I had the same questions in Jan when I got my license. In my area the numbers are more like 3 to 4 closings for new agents. Which I thought, "that would suck."

I work about 60 hrs a week. In Jan I had no activity. In Feburary I got 2 listings. In March I had 1 buyers agreement. March 16th I though, yeah great for a new agent but not where I wanted to be to call this a career. So I threw off my new agent tag and now I ask this questions. How much do sucessful agent close in a year. Now I have my sights more in line where I want to be. I revamped my efforts that week and I have 2 listings stagging their home and will be mailing the listing agreement when finished, 2 buyer agreements coming back this weekend or beginning of next week. My goal for April is 5 to 7 listings period and I will be working like a dog to get them.

If your eager to get the ball rolling lose the new agent tag as soon as possible. The quicker that crutch is thrown out the better off you'll be.

PaRealEstateAgt has a good point. I was never a "new agent." I jumped in and decided I would just assume I'd been in the business for awhile. Not that I knew everything, or wanted to convince myself I did, but I wanted to put less pressure on myself to get my first buyer, or my first listing. It was easy from there.

How many closings "should" you be doing in your first year? It all depends on how many you WANT to do, and how hard you're willing to work to reach that number. Yes, it's going to be tougher than once you've got a bunch of sales under your belt (and therefore a more established referral network), but you can still do well.

Depending on how much homes are selling for out your way, 6-8 sales in your area might not be enough to survive, so you may well need to push yourself much harder. My typical sale is just a little under $600,000 (no big deal in L.A.), so I could do as few as 5-6 closings a year and live comfortably if I so chose. I certainly couldn't do that in Nevada or Arizona.

PaRealEstateAgt
Can you share with us what exactly you are doing to get listings and buyers? I just started two weeks ago and I've been trying to come up with a right prospecting strategy. Do you do a lot of call calling and door knocking or maybe you know a lot of people or maybe something completely different?

Ofcourse I can't tell you exactly what I'm doing. That might be counter productive for me. But generally speaking, when I started in Jan, I mailed out roughly 1000 pieces and called about 300 expireds and FSBO's. Got 2 listings in Feb from that. Changed up in Feb to just calling and drip mailing the leads and got 1 listing that need alot of work before going on the market so he's doing that now should be ready this week. Got one lead from my broker and they are staging and cleaning and should be done next week. Mid March went back to mailing so far 500 ish pieces and calling anytime I have down time (no set schedule.) All FSBO's and Expireds.

Things I do differently; cover a 6 county area (I'm not the area expert I'm the alternative option,) I only go after the ones with equity and a reason to move, and I have no listing presentation (just the facts, figures, marketing plan and sign.) This is my current plan and will hope to find an area where I will be the expert in, until then I'll find the ones falling through the cracks where ever they are (within reason.)