When I started in the real estate business I worked with a company that was large and has a "big brand", we were taught that as new agents who had no experience we could get listings. We were strongly encouraged to charge as much as the seasoned pros. We were told to tell prospects that we could do as good of a job as an experienced agent, and that we could do more because we had fewer clients and more time.
Looking back on it now I can’t imagine paying 6 or 7% for someone who has never sold a home before.
My first listing sold in about 25 days. I charged the seller 7%. I did seek advice and get help from a more senior agent, and took care to make sure that I did the very best job that I could, and managed to sell the home in 25 days. We all have to start somewhere, but is a new agent worth 7%?
After selling a few dozen homes I began to realize how important experience is, and that there are thousands of agents available who have plenty of experience. It took me some time to understand how much I did not know.
Those first clients never asked me how long I had been in the business or if I had ever sold a home. Most consumers do not realize that turn over is very high in our industry and new agents start every month. Many don’t make it through their first year, it is a tough business, highly competitive, and very expensive.
Consumers should ask questions and keep in mind that it does not matter what color is on the for sale sign, it is the individual agent that does all of the work. His or her skills, abilities, and experience, or the lack of, will have a greater impact than which company logo is on the business card.
I don’t think it takes 20 years to become a really great agent, but I do think that experienced agents are worth more than an agent selling her first listing. When interviewing agents be sure to ask them if they have ever sold a home.
Also see:
The Truth about Real Estate Companies
Commissions
This touches on a question I’ve had – how heavily should you weigh experience (i.e. years of experience) in selecting a REALTOR?
My thinking is that you are buying their experience and skills at buying/selling but aren’t you also trying to buy (to some degree) access to their contacts? That’s always been my impression – that you go with a very experienced REALTOR because they, in some part, know lots of other REALTORS that know potential buyers/sellers….
Should that be factored into the decision – or is that overemphasizing the importance of contacts in the industry?
Hi Zach! great to hear from you. In my case my most valuable contacts are people I know in St. Paul. I have a kind of waiting list for people looking for certain kinds of homes. People contact me about selling and sometimes I have a match or at least know where to start when looking for a buyer. As for networking with other agents that helps too. We get a little help from the computer and can do some reverse prospecting too but that is the subject for another post.
Experienced agents know where the pitfalls are and can not only anticipate them, but avoid them. New agents haven’t got the background to be able to recognize a storm brewing…
Teresa-
I’m been thinking about this all day trying to decide if I agree with you or not. As an experienced agent- I understand what you mean – that experience does bring much added value. So I do agree with that.
However, I’ve met listing agents with 20 years experience who are complacent with their job. Make a flyer, put the listing in the MLS, add a sign and wait for the buyers to come.
Newer agents however, still have the hunger factor. They are not only hungry for that first sale- but they are also hungry to prove themselves.
I don’t know the right answer to this- but I don’t think you should discount an agent off the bat because they are new. Especially if they come to real estate from another industry and already have sales or marketing experience. They are open to new ideas & most times go out of their way to do their best.
And if they are with a good broker- have a lot of supervision just to get through the paperwork. This is a case where maybe the color of the sign doesn’t matter- but the quality of the broker(or mentor) certainly does.
Personally- I did have a listing my first few months in real estate- and, like you- sold it quickly- but it was at a time when anything sold in a week. Now- in a buyer’s market- I don’t think it would be so easy. But now, – I wouldn’t take it personally if a listing didn’t sell right away. I know that I’m a good agent.
New or old- I still search for new ways to sell a listing. I’m always open to new ideas.
So I’m torn on what I would tell a new agent starting out or a seller looking for an agent.
What I do tell people is- you have to trust your agent- if you don’t, fire them and find a new one.
Great Article…I wrote about seller’s looking for an agent who has worked in a “buyer’s market” before, on http://www.RealEstateSizzle.com
today…that means 10 yrs plus!
I think that the question of how long one has been working as a real estate agent is not the most important one. In our area we have plenty of agents who have been licensed for many years, and their total production in terms of sales may be less than my in 1 year. Being skilled does take time, but some of the seasoned agents are not more qualified than a newcommer.