Real Estate Limbo Game - How Low Can You Go Before You Fall?
Every now and then we hear about an agent taking out a buyer in the very low price ranges like $40,000 and below.
I am not sure if they are seeking approval for their decisions, getting feedback for their decisions or perhaps exalting this action on their part.
Whatever the reason- the important thing is that if this is a part of your business plan or not it is your decision.
This is a business.
Yes, it is a people business.
Yes, we care about our clients.
But it is still a business and needs to be run like a business.
How you work your business is your business.
Whatever floats your boat.
However, if you are planning to be different than 90% of the agents with licenses that are members of NAR, then you must do something different.
According to Einstein: The definition of insanity is doing the same thing over and over again and expecting a different result.
The median gross income of a Realtor in Florida is $34,400 and that is annual not monthly.
So are you median or do you rise above the crowd? Are you in the 90% or in the 10%? This is a great topic of discussion this time of year because now is the time for you to look over your business plan and make the necessary adjustments.
You need to know how much income you made this year and if you want to make the same amount next year or more.
Or maybe you want to make less.
That is your decision.
But comments that say they hate agents who won't work for any client no matter what their price range is- is not privy to those agents' business plans and is really out of line.
Let me tell you there is nothing in our realtor® code of ethics that says you have to work with any one who walks through your door or who calls you no matter the price range of the buyers or listing.
There is nothing in the code of ethics that says you can not choose your clients while of course obeying the federal housing laws.
Some agents are in markets where the price ranges are so low that they need to do a lot of volume to pay their bills.
I coach agents who are in those markets and they decided to work an hour away from their markets where the price range is higher.
They know the areas very well and that works for them.
Then other agents will make a decision to move to another town or even another part of the country in order to make the highest and best use of their time.
After all, you only have one life here on earth.
There are two issues here in the business plan.
There is the income that you need to reach in order to keep your doors open, the income you need to make in order to keep your family fed and pay your bills and then there is the income that will bring you financial freedom.
I don't know about you, but I am NOT ashamed in the least to say, that one of the reasons I got into this business was because I am an entrepreneur and capitalist with a big heart.
That means that I want to make money, I love to make money and I am very proud to be able to say that we are very successful at doing that.
The first thing I did when I got into this business was to choose a mentor and then a coach who was doing what I wanted to do.
Then there is time.
Now for all you young whippersnappers out there just getting going, you see the world with eyes that you will always be here and that is youth.
I thought that way too.
But when I turned 50 and now that I coach agents who are in their late 60's and 70's- well, time becomes more precious than money.
You must choose how you spend your time.
You can always make more money but you can never make more time.
It is the one thing that once you spend it, it is gone forever.
So if you want to make $100,000 dollars next year in gross income if you sell $40,000 homes and only get one side each time, that would mean you would have to sell about 85 units.
If you work 50 weeks next year that would mean you would have to close 1.
7 units per week.
Then take the time it takes to list and market those homes or even still, if you are buyers' agent, the time it would take to show those homes, write up the offers, present the offers, take the deal from start to closing - there would not be enough hours in a day for you to sleep or exercise or eat or see your family, spouse or kids.
We know a lot of agents who sell 4 homes a year and make well over $100,000 in gross income.
But I will take selling fewer homes in higher price ranges over more volume and less pay any day of the week.
Because at the end of the day, it is about how I leveraged my time so that I could do with my money that which is important to do- to take care of our family and to bless the lives of others.
Now the next argument for working with every price range is that you get that client's SOI.
Well, that is great in theory but in reality the average realtor gets only 18% of their business from SOI and referrals and repeat clients.
So the odds are not stacked in your favor in this really coming into fruition.
Again, it all depends on what your goals are.
Maybe you are married to a very successful spouse and your income is just supplementing your spouse's income.
Well, maybe there is no reason for you to work much.
But the secret to success is not in working harder but in working smarter.
While being gracious is good, having a big heart is good and doing a little pro bono work along your journey is healthy, working until you have no life is not healthy.
I am not sure if they are seeking approval for their decisions, getting feedback for their decisions or perhaps exalting this action on their part.
Whatever the reason- the important thing is that if this is a part of your business plan or not it is your decision.
This is a business.
Yes, it is a people business.
Yes, we care about our clients.
But it is still a business and needs to be run like a business.
How you work your business is your business.
Whatever floats your boat.
However, if you are planning to be different than 90% of the agents with licenses that are members of NAR, then you must do something different.
According to Einstein: The definition of insanity is doing the same thing over and over again and expecting a different result.
The median gross income of a Realtor in Florida is $34,400 and that is annual not monthly.
So are you median or do you rise above the crowd? Are you in the 90% or in the 10%? This is a great topic of discussion this time of year because now is the time for you to look over your business plan and make the necessary adjustments.
You need to know how much income you made this year and if you want to make the same amount next year or more.
Or maybe you want to make less.
That is your decision.
But comments that say they hate agents who won't work for any client no matter what their price range is- is not privy to those agents' business plans and is really out of line.
Let me tell you there is nothing in our realtor® code of ethics that says you have to work with any one who walks through your door or who calls you no matter the price range of the buyers or listing.
There is nothing in the code of ethics that says you can not choose your clients while of course obeying the federal housing laws.
Some agents are in markets where the price ranges are so low that they need to do a lot of volume to pay their bills.
I coach agents who are in those markets and they decided to work an hour away from their markets where the price range is higher.
They know the areas very well and that works for them.
Then other agents will make a decision to move to another town or even another part of the country in order to make the highest and best use of their time.
After all, you only have one life here on earth.
There are two issues here in the business plan.
There is the income that you need to reach in order to keep your doors open, the income you need to make in order to keep your family fed and pay your bills and then there is the income that will bring you financial freedom.
I don't know about you, but I am NOT ashamed in the least to say, that one of the reasons I got into this business was because I am an entrepreneur and capitalist with a big heart.
That means that I want to make money, I love to make money and I am very proud to be able to say that we are very successful at doing that.
The first thing I did when I got into this business was to choose a mentor and then a coach who was doing what I wanted to do.
Then there is time.
Now for all you young whippersnappers out there just getting going, you see the world with eyes that you will always be here and that is youth.
I thought that way too.
But when I turned 50 and now that I coach agents who are in their late 60's and 70's- well, time becomes more precious than money.
You must choose how you spend your time.
You can always make more money but you can never make more time.
It is the one thing that once you spend it, it is gone forever.
So if you want to make $100,000 dollars next year in gross income if you sell $40,000 homes and only get one side each time, that would mean you would have to sell about 85 units.
If you work 50 weeks next year that would mean you would have to close 1.
7 units per week.
Then take the time it takes to list and market those homes or even still, if you are buyers' agent, the time it would take to show those homes, write up the offers, present the offers, take the deal from start to closing - there would not be enough hours in a day for you to sleep or exercise or eat or see your family, spouse or kids.
We know a lot of agents who sell 4 homes a year and make well over $100,000 in gross income.
But I will take selling fewer homes in higher price ranges over more volume and less pay any day of the week.
Because at the end of the day, it is about how I leveraged my time so that I could do with my money that which is important to do- to take care of our family and to bless the lives of others.
Now the next argument for working with every price range is that you get that client's SOI.
Well, that is great in theory but in reality the average realtor gets only 18% of their business from SOI and referrals and repeat clients.
So the odds are not stacked in your favor in this really coming into fruition.
Again, it all depends on what your goals are.
Maybe you are married to a very successful spouse and your income is just supplementing your spouse's income.
Well, maybe there is no reason for you to work much.
But the secret to success is not in working harder but in working smarter.
While being gracious is good, having a big heart is good and doing a little pro bono work along your journey is healthy, working until you have no life is not healthy.
