Here is a question for all new aspiring agents.

Do you have sales experience? Have you worked as a commission payed sales person before?

Do you think you need any sales experience to be a successful Real Estate agent? What do you think?

I'm not an aspiring agent.

I never worked for commission before except for:

1. My small business as a 10-12 year old, selling greeting cards for prizes. The more I sold, the more points (commission?) I got for prizes. I begged the neighbors (my sphere I guess) and my mom to buy enough so I could get a cheesy stereo that disappointingly only played LP's, a clock radio which I had for years, and some other thing I forgot.

2. My short lived career as a SAHM trying to sell Discovery Toys (like Tupperware or Avon). I ended up in debt $1000 for buying my kit ($400) and spending more money on "stuff" like plastic tubs, office supplies, filing cabinet, etc. It was a dismal failure.

Then, later I became a "REALTOR(TM)".

My first year I sold about $400,00 worth of property. Year two, I sold $1,600,000 or so. Year three, $3,000,000. Year four: $4,349,000. Year Five: $6,243,000. (Please note the average sale price for my area is around or just under $160,000, give or take)

I dunno. I'm doin' okay without any prior "sales" experience. At least, none successful.

In my opinion being a REALTOR has very little to do with Selling. The home sells it's self to most buyers. Most buying clients know immediatly if this is there home when we enter it.

When your working for a home seller, it more about Marketing a home then Selling it.

Wow, Perky, I sold greeting cards too! The prize I worked for was a gas powered remote control WWII airplane that never worked. Looked cool, though. I'm guessing this was in the '70s? You don't see kids doing that stuff any more. As far as sales experience, I had lots of it before I became a Realtor 10 years ago, but I agree with the poster who said that it's marketing, not sales ability, in real estate. That and simple communication.

75Corvette - it was the very end of the 70s and early 80s. Olympic Cards. LOL

Yep--same time period--probably '77-'79 for me. You brought back some great memories with your comment! A true "snapshot in time" as it were. I can't believe you still remember the name of the company--Olympic rings a bell with me, but that could be for any number of reasons. Anyway, I know that you had no clue you would make someone's day with your comment, but you did. Thanks!

This post was to find out what new aspiring agent thought of Real Estate and what pre requisite and or qualification and or skills they think they will need to be a agent.

I see so many agents come and go. When I first started some of the older agents did not chat with me for a couple of years. Now I know why they did not want to befriend someone who is not going to make it. Seems like most do not make it. After they sell their moms house and help an old co worker buy a home they are tapped out of leads and have not figured it would be so hard and quit.

It's different though than coming from a position as a sales person somewhere. It involves being a BUSINESS PERSON - more than just being able to give a good pitch. "selling" the house is only a small part of it.

I think a lot of people think they can just be charming and personable and they can then "sell." You are basically in business for yourself and you need to be skillful in several aspects of the business....not just pouncing on buyers with a great pitch and lots of schmooze...

Lets not stereo type sales people as charming type. If you know DISC you would be saying that to be a top sales person you would need to be an "I" most "I" do not make top sales people. They are unfocused.

Sales has nothing to do with "pouncing on buyers". I think those days are long over (hopefully). Most large companies have their sales people do extensive sales training which is focused on generating leads and building long term relations. If you have gone through any of these top flight systems being a Realtor is very similar.

Why is it so many Realtors have phobia about being called a sales person?

Sigh.

You asked it a BACKGROUND IN WORKING IN SALES -meaning not working as a realtor but as a salesperson perhaps in a showroom or store - was necessary. I demonstrated with my first post that I didn't think it was.

And I further expounded on why. I don't have a phobia about it. But I was referring more to the sales people who hover around you at certain stores wanting to be sure THEY grab you and not the other salespeople so they can get the commission.

This. Has been MY experience with salespeople. And the guy who sold me my Honda had no interest in building any kind of relationship with me....he talked nicely about the car, and did a little schmaltzy chit chat before during and at the end of the transaction...

but the thing is, he didn't have to sell me on the honda anyway, I already planned on buying one, just needed to decide which one was best for us. He really had little to do with the transaction other than write the paperwork. So I guess some realtors could fit that description very well.

My opinion remains - being a salesperson is still different than being in business for yourself as you are when you are a real estate agent.

The point I obviously failed to make is: It's more than just good sales technique. And more than good "people skills" with leads/buyers/sellers. Much more.

So tell us Perky what kind of Honda did you order? I'm guessing accord in black.

Nope, lol. Ice blue van. I'm a mom remember, gotta have the "practical" car. lol

my next car is gonna be something really spiffy. but that won't be for 10 years, lol

Honda does make a nice ride. Sold my fit last year it was to fast or should I say fun to drive. Had the car 3 years 55oookm about 35000 miles and sold it for almost what I paid. Think it cost me $1500 for the three years.

sales is the front end of any business, and it drives every other function of the business. It helps considerably to have commissioned sales experience prior to entering real estate sales.

I totally agree with you Shana.

I never worked on commission before until I got into real estate. I do have sales experience, in elementary school I was that kid on the playground selling candy and toys to the other kids for profit. I had an ebay and paypal account in 6th grade selling odds and ends for profit. I did that through high school and learned a lot about selling and how to sell.

You are a real estate sales person 1,2,3,4 and a Realtor 5th. Your job is to sell the client on your services over the competition rather it be as a listing agent or buyers agent. They are buying your knowledge, skills, time and expertise. Not your personality, good looks or anything else; granted those do help if you look and act like a business professional.

A sales background would definitely help but its not required. Be quick to learn and focus on never ending improvement and always strive to be the best real estate sales person that you can be. Also to get you started read reputable sales, real estate and motivational books that pertain to your goals.

I know you. I was the kid on the same play ground loaning out money to the kids who wanted to buy your candy.

That is a good post you made some valid point.

Real Estate "Sales" differs from other forms of sales in at least two (2) major ways:

All other sales activity that I can think of involves the sales of product that is more or less under your control . . . . when you sell some widgets, there is little no doubt about whether you have the widgets in inventory. In Real Estate, we often have to go out and sell ourselves to the "Owners" just in order to have product to offer For Sale; and just having a Listing doesn't mean that you've got control of that inventory.

In Real Estate, there are other Actors controlling the product (Sellers, Listing Agents, Loan Officers, Title Attorneys, Building Inspectors and sometimes, even Appraisers). We often do a very good job in selling something that subsequently has the rug pulled out from under it and can't be sold, or people get stubborn and refuse to allow the Transaction to go through.

Also, few other forms of sales involve such a long, often unpredictable, delay between the Sale (P&S Time) and the point at which the salesperson receives some form of monetary remuneration (Closing). Successful Real Estate salespeople must be "risk takers" and be born with the Patience of Job, in order to prepare themselves to wait multiple weeks, often months, and sometimes even years to obtain the rewards of their sales activity

There's often a major disconnect between the two activities - the Selling and the Compensating so one must actively work to be motivated by factors other than just the "possible" Commission that might be received if a deal goes through . . . . a Commission that often doesn't manifest itself. Those who require immediate gratification never last long in this business.

Industrial Sales or Military Sales often involves many false starts and lenghty delays; but you'll find that Sales and Marketing folks in those fields are often on a Salary or a Draw against Commissions, and are much better positioned to weather the long delays between the writing of their Contracts and the point at which they receive their rewards and/or bonuses. As a matter of fact, I've only known one Real Estate Firm that paid their Agents a Draw against future Commissions . . . . and that Firm wasn't "firm enough" to weather the current depression in Real Estate.

I know I began working as a waiter for 2.5 years during/ after college making good money, did a few straight commission jobs that never worked out. I'd sell the stuff and there was always a reason why I didn't earn any money. Oh to be young and dumb again. Got a good non commission job with benefits when it was family raising time. Lost that 13yrs later with the market down turn, oh I miss the easy money. Did some soul searching and looked at my strong qualities and figured RE was a good fit for me.

So in this crappy market I began the journey. Did 700,000 in sales the first year with an average sale price of 120k. Hoping to do 7 mil this year now that I have a grasp of the systems. Will work with buyers this year as well. Only worked with 3 buyers the first year and only one purchased.

I don't think having prior commission sales experience is an indication that you'd make a good agent. Certainly though, good interpersonal skills with high confidence and a certain sincerity in dealing with others is what I'd think make a great agent. Of course all that is still just potential without the right direction.

Ive been in commissioned sales my entire life. I actually prefer to work that way. I never could hack it in an hourly job. I always wanted to get paid on results, not time spent. Did it help when getting onto real estate? Yes absolutely. I was already conditioned to being paid that way and I knew how to engage people and sell myself. To all those who say real estate is not really "selling" - it absolutely is. Youre a salesperson before anything else. You just dont sell the inventory...you sell your services.

Is Real Estate a sales business?

Yes and no. I think like others have said the sales involved is getting clients onboard to use your services. I don't feel like I "sell real estate" but I certainly sell the service of representing people who buy and sell real estate.

Sales skills absolutely help, the ability to talk to people, qualify them, close them, keep in touch with them over long periods of time, keep them motivated, etc. Not the kind of sales you see in a store, but the kind of sales you see from high skill outside account sales.

Thats not the end all though. Once you sell the service and get the deal, you have to be the glue that holds it together through to closing...which nowadays isn't as easy as it looks. I know a lot of agents that are great salespeople but terrible Realtors...and their clients suffer for it.

I think many more have even dropped off after the economy started falling. I wasn't in the business when everyone sat by the phone and made 100k a year, but I think those that were "decent" sales agents in primetime were very much even less so when they didn't know how to deal with the economy.

What have you guys found to be the most effective way to generate leads?

OK Bluetortoise, best way to generate leads, my top secret method, look for them, contact them, do business, now please don't spread it around, I have enough competition already.

Yes that is seemly a something something answer, but that type of question is usually the what is the current magic bullet system to get what I want question. And believe it or not it is a real answer, short but real, details cost extra.

As I told one new agent a few years ago, preview every new listing you can when the owners were home and ask the owner how they met their agent, he got a prospecting education plus the feel of the current market. Same thing with recent solds to get the buyer side. You don't have to be new to do this and it is what is currently happening. Go from there, the horse and done deals will provide what you seek.

I have sold many different things before, but Real Estate has nothing to do with selling. It's more like a tour guide. Maybe the name Real Estate salesmen should be dropped because there is no real selling in this business. So do you need sales experience to be a Real Estate Salesmen? I don't think so.

In a normal market, the sales activity is more on the listing side . . . . not in marketing property. The property can sell itself; but Sellers need to be "sold" on you in order to list.

real estate sales is.....SALES. On top of that, it is COMMISSIONED sales. to be a successful commissioned salesperson requires a certain set of personality traits.

my opinion is, if a person is a natural salesperson, they can apply that talent to any field, including real estate sales.

Sales applies to a lot of businesses that people don't generally regard as sales. For instance, the person who gives you an estimate for a home repair is really selling his services, skills and experience. The restaurant server who lists and describes the desserts is really selling you to increase the amount of your check (and hopefully their tip).Perhaps even the fast food worker who asks if you want to supersize.

But while real estate agents have a "salesperson" license in many states, they do a lot more than "sell" because the bulk of the work is done between contract and closing. And someone that is a great salesperson but lacks the mental, organizational and follow up skills needed in this business will be an abject failure.