Knowledge and Learning

I had a customer ask me what it’s like to be in real estate.

The truth is that the average Realtor makes about $35,000 a year before expenses.  I have a friend who looked into the stats and determined that out of 25,000 real estate agents in the GTA, 5,000 sold one home last year.  So it’s a little bit of Pareto’s principle – 20% of the people do 80% of the business.  I think in reality it’s more like 90/10.  For every Sam McDadi who sells 500 homes a year, there are 50 agents selling one or two.

Failure rate is very high in the first two years, and it’s about $5,000 in courses, most of which would be considered easy college/hard high school level exams.

I am personally an advocate of much more educational requirements to siphon off some of the riff-raff agents and concentrate the quality to a much smaller number of agents.

But anyways, expect to work really hard.  There’s no such thing as “get rich quick” – it’s repetitive, focused action, day after day, that leads to results.  Anybody who is successful will tell you the same thing.  It’s a lot more grunt work than people think.  Do I work as hard as the guy who lifts heavy concrete blocks for twelve hours a day?  Not physically, but my brain and my emotions can feel the wear and tear just as much as the guy doing physical labour.

We take on a huge responsibility every time we help someone move, and the pressure can really build up sometimes.

Soooo… to summarize:

If you can survive for your first couple of years, you build momentum with people who trust you, if you treat them well.  Your business grows as a result, and you can focus less time on attracting people you don’t know, which makes things a bit more easier.

The nice part about real estate is that your overhead is low.  If you open a pizza store, you spend $100,000 in equipment and supplies.  In real estate, you need a phone and a computer, a clean car and some clothes that aren’t embarrasing.

That’s my story and I’m sticking to it.