Success in Real Estate: What do you need?
Monday Mar 25th, 2019Share
written by Raman Dua
Everyone who joins the profession as a REALTOR® comes with an intention to achieve success and make money. How many of them actually realize the dream and kiss the feat of success? If we analyze the stats only within GTA, more than 85% of REALTORS® don’t do enough business to sustain themselves in the market and have to do some other side jobs to run their families. I really feel bad to see the pathetic condition of the industry, and agony of the situation is that no one seems to be working towards making the conditions better. There is some basic flaw in the education system of Real Estate, as they emphasize only on the bookish knowledge and don’t emphasize on field work.
Majority of professional courses require a mandatory internship of about 6 months to 1 year to enable students to actually understand the practical world that can help them become successful when they join as a certified professional. There have been some efforts by the regulatory authorities and government to regularize the Real Estate courses, but unfortunately the efforts seem to be moving at snail pace and not really making a significant impact on improvement of the situation. I personally feel it’s our duty as a REALTOR® to pay back to our profession by making this a mission, and take a pledge that we will contribute as per our abilities to make others successful so that we can really feel proud of being part of this wonderful industry.
The other biggest challenge in our industry is that the entire Brokerage system has been captured by big corporate companies and majority of those are not even Canadian Companies. Just think about it, for them it’s not their profession, it’s just another business. They are here to make money and have least interest in making the quality better. Their business runs on a monthly membership income and they are more than happy with the whopping number of REALTORS®. More number of REALTORS® means more monthly membership for them, which in turn gets more profit to their company. I have been in this industry for more than a decade and don’t see any efforts from any of those big brands to make the industry better. They just lobby with the government to make sure their business model keeps working, and are least bothered about the betterment of the individual REALTORS®. Most of the business strategists in these big corporate companies are sitting in their big offices and that too out of the country, and they have no clue about the ground realities of the profession. They just strategize about company’s profitability and simply work on increasing the numbers. They appoint their franchises who are just their business managers and majority of them might have been unsuccessful in the field themselves. Their business and product knowledge sometimes make me feel pity on the REALTORS® working in those Brokerages. Someone can teach only what they know and they just have bookish knowledge and no experience of the day to day challenges faced by REALTORS®.
To understand the situation better, it’s always a good idea to check the stats as I always believe numbers don’t lie. A decade ago, Real Estate industry was working on a formula of 80/20, where 80% business was done by 20% REALTORS®, and now after a decade, the formula has changed adversely. It has become 90/10, where 90% business is done by only 10% REALTORS®. What about the rest 90% REALTORS® who are not able to make even a decent living in this profession? Are these so called big brands coming up with any new business idea, any new business model to make sure that the bottom 90% can at least make a decent living and don’t have to do other odd jobs to run their families? It makes me feel uncomfortable when I see people sitting in Taxi, Truck, Gas Station, Office or Store telling me that they also have a Real Estate license, but are unable to make enough money as a REALTOR® and feel forced to take an odd job. Did your Brokerage or Broker of Record, who proudly advertises only 10% successful REALTORS® to lure more numbers, ever call you and had a meeting with you to ask if they have business plan for you, or if they have any support system for you to make you successful? If no, then how can we expect to improve the industry conditions? No one is really bothered about 90% of the REALTORS®, and Brokerages just simply fulfill their duties by arranging some courses for them. If only those courses could bring success then I am sure we would have made the industry situation better in last decade, not worse, like it is today.
I would encourage my fellow REALTORS® who fall in the 90% category to ask their Broker of Record to accompany them for door knocking, sit with them for cold calling and coordinate the Listing Presentation with them. Just by doing this small exercise, you will come to know their abilities. I know it’s a hard truth and will create a lot of discomfort in the industry but just by hiding it we can’t get away with the facts. Just see and analyze if they have catered any active mentorship model for you where you have someone who is willing to help you to do the paperwork, listing, or buying, without any self interest. Even if someone is willing to accompany you, they don't do it because of a support system created by the Brokerage, but because you have to pay them. No successful REALTOR® in your Brokerage has spare time for you as they are busy in their own business and you are their competitor anyway. I feel so sad when I meet REALTORS® and they tell me that they have not met their Broker of Record in the last 2 years and that confirms the pathetic situation of the industry.
I would still put the onus on to my REALTOR® friends who fall in that 90% category, as they have never asked for anything but expect to get it. They are happy to be called as REALTORS® irrespective of having or not having any success. Even a kid doesn’t get any milk until he cries. You have to cry for your milk. I am not trying to convey that you change your Brokerage but would still encourage you to ask for what you deserve and if you don’t really get it, make sure to give us a try and you will see the difference.
I always feel proud on the system and work culture that we have created at Save Max Brokerage and now I have a dream to share our success formula with other colleagues. Every Brokerage loves to get those top 10% successful REALTORS® who don't need any help with their business. We, however, also want to work with the remaining 90% and prove our worth by making them successful. We believe that our success lies in the success of others. If our team is successful, we are automatically successful. We have zeal to make our profession respectful so that our profession can feel proud on us. We will make sure we do it irrespective of the challenges and situations.
If you want to become part of this mission, don’t hesitate to get in touch with us @ 905-459-7900.