The measure of success for a real estate agent often includes:
- A large percentage of transaction closings;
- A high number of sales; and
- How much they earn.
Successful versus Unsuccessful Real Estate Agents
Learn how to tell the difference between successful and unsuccessful agents.
Experienced investors often explain what traits they look for in an agent. Let’s explore some of them.
Agents with Poor Expectations Become Unsuccessful
Sellers want to sell fast at the highest price. Buyers want to find their dream home quickly at the lowest price. Everyone has expectations in the purchase and sale of real estate.
Realistic expectations received upfront from your agent mean fewer disappointments. Alexander Pope, an English poet once said, “Blessed is he who expects nothing, for he shall never be disappointed”. Therefore, don’t let poor expectations protect you from disappointments.
Upfront realistic expectations always trump poor expectations. For instance, a seller who thinks his home is worth a million dollars teams up with a listing agent who knows it’s probably worth $700,000. What’s going to happen six months after listing the home for sale? The seller fires the agent and must lower the listing price. Time wasted and money lost.
Yet, another agent explains why the home will only sell for $700,000 backed with comps and the RealScout Buyers Graph showing local buyers’ preferences. For those of you who missed our recent post about the Buyer Graph read XXXXXX (Buyers)
Simply put, finding a realistic expectations agent is better than one with poor expectations. This is one difference between a successful versus unsuccessful real estate agent.
Struggling Agents End Up Unsuccessful
Agents who struggle fail to comprehend the most valuable assets of an organization. They fail to possess the support and tools to communicate effectively, work with others for more productivity, and become energetic, positive contributors.
The DiSC personality model stands for these four main personality profiles:
Dominance – Confident people who accomplish bottom-line results;
Influence – More open who emphasize influencing and persuading people;
Steadiness – Dependable who emphasize sincerity and cooperation; and
Conscientiousness – Emphasize accuracy, quality, and competency.
Struggling agents do not want to disappoint clients resulting in not sharing important information that may upset them.
They are afraid to tell you what you don’t want to hear. A recipe for poor expectations.
Struggling agents are poorly trained. As a result, they fail to give clients consultations providing realistic expectations.
Every buyer wants to purchase a home at the lowest price. Every seller wants to sell at the highest price. A conflict of interests found throughout the industry.
Struggling agents fear telling you what you don’t want to hear. This may result in your finding another agent who will. For instance, a listing agent agreeing to a seller’s overpriced listing knowing it won’t sell but fearing rejection.
As a seller, want to learn about the selling process? Read our post titled, The Home Selling Process.
Buyers find our post How to successfully buy a home useful.
We found that the RealScout programs we offer provide facts rather than conjecture. For example, their Buyers Graph shows sellers what recent local buyers prefer for homes of similar prices. Which features are more important to local buyers in their dream homes? Read more about RealScout’s benefits in our recent post XXXXXXXX (Sellers)
Too Many Agents Leads To More Unsuccessful Ones
Another problem is too many agents out there. Entry requirements to join the profession are low resulting in many agents getting into the industry who never should. As a result, most agents fail to sell many homes. This creates desperation to find clients. This desperation pressures agents to think of themselves rather than their clients’ goals. Unethical, but it happens.
Poorly trained agents get outmaneuvered and out-negotiated by better trained experienced agents. That’s one reason why they are unsuccessful.
Only The Best Survive Under Real Estate Commission Structures
The manner of compensating agents with only commissions creates a “do or die” mentality. If you don’t sell, you don’t earn commissions. Thus, too many agents create stress for the ones not earning commissions.
Commissions in real estate sales are controversial. Sellers don’t like them, agents need them, brokers want more, and consumers don’t understand how the commission structures work.
Real estate commissions paid by the seller to the listing broker’s agent who negotiates the commission for the selling agent too. The listing agent splits the commission with the selling agent. A buyer’s agent sometimes gets paid by the buyer.
It drives sellers crazy knowing part of the commission goes to a buyer’s agent who fought for a lower sales price.
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Discount Models for Real Estate Brokerages
Many brokerages came up with discount commissions to get more business away from the traditional ones. Some gave back part of the commission to sellers or buyers to get more business.
Thus, discount brokerages tended to attract the more desperate struggling agents mentioned above.
As a result, too many buyers choosing discount agents ended up getting fewer services from inexperienced and poorly trained agents.
As a buyer, you might find our post How to Avoid First-Time San Diego Home Buyer Mistakes useful.
Finding the Best Agent
Sellers need listing agents offering realistic expectations. Over-pricing a house means longer time on the market which tends to spoil like fruit left on the vine. Likewise, reduced sales prices look like desperate sellers who will even sell for less.
Buyers who can only afford a $750,000 home waste time chasing million-dollar homes. That’s because of unrealistic expectations fueled by their unsuccessful agents.
Successful listing agents rely on facts rather than emotions. They look at similar home comparisons to estimate a reasonable listing price.
RealScout allows listing agents to use hi-tech Artificial Intelligence (A.I.) to better advise their clients. RealScout’s Buyer Graph gives listing agents more information about local buyers’ preferences. Read about these benefits at: XXXX (100%)
Knowing the difference between successful versus unsuccessful real estate agents helps buyers and sellers to find successful ones.
Consider these traits before working with a real estate agent:
Poor Expectations – Look for an agent with realistic expectations to give you good advice. Agents with poor expectations will always fail you and themselves;
Struggling Agents – Avoid struggling agents. Seek confident influencers, sincere, dependable, and competent;
Clients Expectations – Don’t look for agents who make you feel good. Seek agents who provide facts instead of emotions. A seller needs to know how much buyers will pay for the house. Buyers need to know which home offers their ideal features;
Too Many Agents – Crowded real estate agents depending on commissions to survive creates stress leading to unsuccess.
Eat or Starve Commissions – Know that agents only get paid by commissions. Understand the mentality of agents in a commission-based profession. Know that successful agents thrive while unsuccessful ones fail;
Discount Models – You get what you pay for. Brokerages offering discount commissions and fees must cut costs to justify the discounts; and
Find the Best Agent – Find a listing agent giving you realistic advice about pricing and length of time on the market. Buyers need to work with a selling agent who locates the best home according to their preferences. That’s knowing how to find successful agents versus unsuccessful agents.
Want to Find the Best San Diego Realtor to Sell Your Home or Find Your Ideal Home to Buy?
Besides swearing to uphold strong ethical values our Realtors are well trained with Big Block’s free training courses. Training and good values lead to success.
Our RealScout association provides more tools for sellers to sell faster and buyers to find ideal homes quicker. Read all about it in our post, How RealScout Makes Our San Diego Real Estate Agents Better In 2021.
Contact us to learn about RealScout benefits from experienced, confident, and competent Realtors in the greater San Diego area. Win with successful Realtors!
Steven Rich, MBA – Guest Blogger
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