One of the primary reasons that people enter the real estate profession is because they look forward to being paid what they’re actually worth. In the corporate world, this rarely happens. In real estate, commission potential is unlimited. Unfortunately, commission income can work against you if you’re not really doing that much.
Consider a typical example. A luxury agent is on a 60% company split and sells a $1 Million home. The agent will be paid $18,000, not exactly chump change. If you were to add up the actual number of hours that you spend on a listing, if it were 100 hours in the above example, you’d be earning $180/hour. Once again, that’s not exactly chump change.
Ask yourself the following question. If all I’m doing is taking photos of the home, putting a sign in the yard, inputting the listing in MLS, conducting a broker open, and every once in a while holding an open house, are those activities by themselves worth $180/hour? The answer to the above question should be obvious. Absolutely not! A professional agent earning $180 per hour or more, must hold themselves to a much higher standard. If you expect to be one of the best in the business, you must hold yourself to a higher standard by evaluating your performance in 3 major areas:
- Is the story you’re telling targeted to the right buyer? If you try to appeal to everyone, it’s unlikely you’ll appeal to anyone. You must identify who your target buyer will be and target your message specifically to that group. Keep in mind, if you guess wrong, you will be doing your seller a disservice. For example, a big home with 5 bedrooms in a quiet neighborhood with lots of kids, is likely to appeal to a larger family.
- Does the story your telling through photos and listing remarks strongly appeal to your target group? In other words, does the story your telling sizzle? Pictures must be dramatic and phrases and comments must paint a highly desirable and enticing picture.
- Don’t leave the selling to an amateur. You must be available to personally present the unique features of the home to perspective buyers, even when they’re accompanied by another agent. If you can’t attend the first showing with perspective buyer, make it a rule to never miss the second, third, or fourth showing with the same buyer.
Take the time to be worth hundreds of dollars an hour by following the suggestions above, and you’re likely to be pleasantly surprised by the income level you achieve.