How bad is this agent, or is it me being naive?

Question

Recently I decided to pursue my Connecticut real estate license and I'm 2 weeks away from the end of the class and will then sit for the test and will work as a part-time agent. I figure this would be a good way for me to learn more about the business and to generate some additional cash to start investing in real estate. I'm going into this with no delusions that it's going to be easy money and I'm willing to put forth the effort to make things start happening for me over time but I do believe that I can be successful.

So I'm evaluating the different brokers around where I live and one agent has been hosting open houses on the corner of my block for the past few weekends and I decided to pop in and ask him how he liked that particular brokerage and basically network. This is how the conversation basically went.

Me: Hi, I'm Kris, I live down the street and noticed you have been doing these open houses the past few weekends. I currently going for my real estate license and wanted to see how you liked working for ABC brokerage?

Agent: You will not be successful <<insert a lot of completely negative one way dialog here>> It's a tough business.

Me: Wow, yea, I get it and I understand, nothing is easy but how do you like working for ABC brokerage?

Agent: Oh yea, they are good but <<insert a lot more completely negative one way dialog here>> It's a tough business. I hope I didn't ruin your plans.

Me: Not at all. Thanks, hope you sell this house, bye.

Personally I got in my car and was even more motivated then ever. I mean IMO this guys missed every opportunity to 1) network with a neighbor of the house he was selling and 2) network with a potential peer or coworker in the market. I just wanted to ask this community if this agent is just terrible or is it me being naive that I can come into this business part time and sell some houses.

James Wise · Answer

few things going on here.

1. Guy is pretty negative.

2. Odds are technically against you

3. Guy could be afraid of a new guy coming in and working his area.

Don't listen to the noise. Go out and do your thing. If your motivated enough you Will be successful.

Kim Knox · Answer

Kris, first of all congratulations on your upcoming career move.  It is an exciting, and ever changing biz.  It is definitely not meant for the faint of heart.  The large majority of agents are low producing, and unable to maintain momentum  (and motivation) in such a difficult, commission based business.

I have people tell me all of the time that they would "kill it" in real estate if they got their license.  I take that as a compliment, because I have clearly made it look too easy, hahaha!!

I remember a particular person responding to my need to get home by 9:00pm with "I would work on Sunday's too if I made 6% commissions".  Yes, agreed, but would he work on Sunday's with no promise of getting paid a dime AND missing a ton of fun?  Most days actually cost you money, instead of getting paid.  It all comes down to motivation, and a persons willingness to keep at it until it pays off.

My only concern about your plan is your plan to start part time.  I would recommend jumping in full time, with both feet.  Put some pressure on yourself to perform. I worry that if you have a hard time producing, it might be for the simple reason that clients may not hire you ONLY because you are not full time.   I left a cushy corporate job to become a Realtor, and have not looked back (going on 14 years).

The Agent you talked to is probably on his last leg, so I don't think he is bad, just beaten and battered.  You have to be good at a lot of little things to be successful in real estate.  You can't just be smart, you have to be available.  You can't just be available, you have to be resourceful.  You can't just be resourceful, you have to be persistent.  You can't just be persistent, you have to be professional.  You can't just be professional, you have to be trustworthy.  So on, and so on.

If you believe in yourself, and can take the world by storm.

Kevin Hill · Answer

Being a successful real estate agent is a lot about mindset. I doubt with a negative attitude like that agent had, they are doing well. I have been in offices where all the agents do is complain about the market, their clients, etc.

Today, I work in a very positive environment where everyone is happy and willing to help each other. Its makes such a difference.

Zach Sikes · Answer

@Kris Lippi

Don't worry too much about what he said.  If he's working the same house multiple times then either a.) He doesn't have any other listings b.) Doesn't know how to communicate with his seller about what works in selling homes c.) Has no other options

Either way, unless he changes his attitude, he's not going to make it very much longer.  By the way, I've worked at a local brokerage and a couple of national brokerages.  If you have any questions about that, I'd be happy to help.

Louis Leone · Answer

It sounds as if the person is just a negative person in general.  He probably doesn't do a lot of business and wants to discourage others from possibly taking the only business he has.

That being said, don't forget other agents see you as their competition.  It's no different than you going into a pizzeria and telling the owner that you're planning on opening a pizzeria down the block and is the area a good area.  What do you think he is going to say?  Do you think he will be happy?

Luckily, some of the more successful agents aren't so insecure and will welcome new agents.  You just ran into a grouchy one.

Arlan Potter · Answer

I am not a realtor and never want to be, way too much work. You have to meet and know a 1000 people, work nights to show houses to people who can't get a loan, and share the profits from your work with 3 other entities.  That is also why most don't make it, not easy or worthwhile to try to do it part time.

Get your RE education and then use it to become an investor. Build wealth, not earn some wages as an agent.

Kris Lippi · Answer

Another funny part about the conversation was he talked about an agent that worked part time in his office but she always had listings "fall into her lap" which is another indicator that this guy is not exactly out there prospecting in the most successful way.

I currently work in a large corporation with plenty of people who are just terrible at their jobs and not pleasant to be around. They get away with it partly because they are not having to sell anything to make a living. This guy on the other hand does and I suspect his negativity is getting in his way of being successful. While Joel makes valid points that most agents don't last, I have to think the more positive you are the better the results should be.

Andy Collins · Answer

most people don't have the discipline to be self employed, and that what an agent is.

The agents that work hard, and continue to work hard, are good with people and have some sales ability, will do good, some will do great, people that get into any self employment 'so they can set their own schedule", don't normally make it.

Any sales position requires motivation and discipline,,,,real estate and insurance are two that have a very high wash out rate, but also many times  attract people that want a paycheck, but not necessarily a job

Joel Owens · Answer

Regardless of how positive you are the stats speak for themselves.

Over 90% of agents newly licensed end up quitting within a year. The rest that make it about 80% will be gone before year five in the business.

The rest left over are part-timers, people that are full time but eek out 40,000 a year, or the top 10% that like in any field make a lot of money and are highly successful.

When you see the average agent nationally makes whatever the number is ( used to be 40,000 a year ) they are taking the average of the bottom, middle, and top agents combined to come up with the number.

If you factor in dues, broker commission splits, gas for car, other business expenses then many agents are at the poverty level.

I get people wanting to invest all the time that used to have a license. Just because you had or have a license doesn't mean you have the skillset to be at the top. Some investors say brokers/agents are a dime a dozen. I agree with that statement for the mediocre to average ones. The really great ones are sought after and can pick who they want for clients and how to allocate time and they are not a dime a dozen.

Newly licensed most brokers will view you as a number. You might do 1 or 2 sales from your sphere before you fade out and do nothing. This is why brokers want 50% split for the first 2 to 3 transactions because they know this happens 8 to 9 out of ten times. You might be the exception that occurs every once in awhile but will need to prove it on your first few transactions.

Often times new agents look for 300 per trans fee and know enough to just be dangerous. They over value themselves for what they mean to a brokerage etc. This is why brokers want 50% for the risk and training needed upfront.

Tatyana Shevnina · Answer

Sounds like he saw you as potential competition and tried to scare you away. I guess he wasn't successful?

How bad is this agent, or is it me being naive?

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