Thinking of Selling Real Estate ? Here are the top 10 Real Estate Myths Debunked
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Myth #1: The most successful real estate salespeople are born, not made.
Fact: Incorrect. Yes, a good agent may have a tendency and inclination to be a savvier negotiator with better people skills, but these are things that can be learned and nurtured. Research shows that at a maximum, people are operating at 50% of capability, which means most human beings do not realise their potential*.
Myth #2: Agents that write $1m in gross commission do a lot of cold calling.
Fact: There is no evidence that 7 figure agents do cold calling. 7 figure agents run an Attraction Business built on momentum; their prospecting is best defined as either “warm” or “smart” calling. They simply are nurturing contacts they already have. In marketing, this is called “lead nurturing”. At one stage, they did have to do cold calling, but most of these agents have got to a level where they are having more calls come in than calls go out.
Myth #3: You must work for a large office to succeed.
Fact: A good sales manager or principal will make an agent feel terrific about themselves. However, a self-motivated agent can work in any environment with the right structure and business unit and be successful in whatever office they work for. Ultimately, a sales agent is not working for an office anyway. They are working for themselves. Self-motivated, skilled agents are constantly being recruited by every real estate office in the region.
Myth #4: The most successful agents are constantly attending training courses.
Fact: This is not necessarily the case. Training courses are empty without courage and action. A training course will not teach you this. A training course and the coach can show you what and how to do it, but not to “want” to do it. You cannot outsource your goal. A life coach or business coach cannot be delegated with your lack of motivation. Many successful agents attend seminars and courses because they know the ROI is excellent in training, as it takes only 1 idea to change the game. You don’t know what idea and where it will come from. So it makes sense to play the numbers game and attend everything you can. And always remember, “you know what you know, but do you do what you know?”
Myth #5: The cheapest agent wins listings against more expensive agents.
Fact: Vendors are interested in the net figure, not the fee you charge. If you can give them nothing else to talk about, it should not be a surprise then that maybe the fee is what will matter most to them. The cheapest agent is the one that gets the best price. If you can articulate to a vendor that due to your process, marketing, and negotiation skills, you can get a vendor an extra 5% for their sale, and they will be happy to pay 1% more in fee. They will pick the lower fee if you can’t get them to believe this. Ask yourself this: are you a messenger or a negotiator?
Myth #6: You don’t need to get VPA (vendor paid advertising) or VIM (vendor investment marketing) to be “mega” successful in real estate
Fact: At the recent AREC13 conference, the top 10 real estate agents announced all are marketing-based agents, not just transactional-based agents. Whilst a primary internet and database campaign will get “a buyer”, it may not get the “best buyer.” And it is the best buyer that will pay the best price. Agents that use VPA have the added benefit of helping a vendor with house price maximization and getting the benefit of having advertising as a brand enabler. The country’s most successful real estate agents dominate all relevant media in their marketplace. You can still have moderate success in real estate without a strong VPA strategy, but there is no evidence to suggest that this success is sustainable with you becoming a BRAND in your marketplace.
Myth #7: Auctions are the best way to sell real estate at the highest price.
Fact: Many will be surprised that even I, as a passionate real estate auctioneer, do not necessarily believe auctions are suitable 100% of the time. Some marketplaces do not have the auction dynamics as the method buyers and sellers operate. Auctions, in fact, are only a small % of total transactions in Australia. They are more pronounced in Sydney and Melbourne and in other markets around Australia that have unique properties, high demand-low supply, and areas where it is tough to determine the value of a property. In marketplaces where the auction is the “norm”, it is negligent of the agent if they don’t use auctions. Every time an auction sells over the reserve, the vendor would have lost that money if it had gone as a private treaty sale. Most of the top 10 agents in Australia are supportive and use the auction method.
Myth #8: You will make more money being an agency owner than a sales agent.
Fact: This could not be further from the truth. Most real estate offices in Australia are simply not returning an appropriate income for the risk in business ownership. The average surgeon in Australia is making $351,000 p/a. A great sales agent can earn this and more without going into business ownership. A great business can provide an owner with a good lifestyle and work satisfaction by managing and mentoring a team. This does not guarantee you will make more money as a principal than a salesperson. Whether to open an office is not about money, but the choice of work. If you like sales and dealing with buyers and sellers, you will be happier and make more money staying in sales. If you like and are also good at building and leading teams and have the financial capacity (access to $250k investment), you should consider ownership.
Myth #9: You can be very successful in real estate quickly.
Fact: Unlikely. Good things take time. Bad things generally happen in an instant. Most real estate agents that fail do not want to pay the price today to get the rewards tomorrow. Long-term sustainable success in real estate is about building a brand, establishing positioning, and growing a database and a referral network. This will take time. However, time alone does not guarantee success in real estate. You can be in real estate for 20 years and have the same bad year 20 years over! Hard work pays off in the future. Laziness pays off now. You choose.
Myth #10: The best agents are the most intelligent and skilled agents in the market.
Fact: The best agents are, in fact, the best-marketed agents. There is no point in having the highest IQ and the best skills if nobody knows about you. It’s not who you know. It’s who knows you. Another factor is that being highly intelligent can damage this industry as you could get into the mindset of “paralysis by over-analysis”.
*Source: Robert Half et al. as cited in Brian Tracy, Motivation.
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