Why Are Real Estate Agents So Hated?
“Real Estate Agents Are Not Welcome!”
Sounds familiar? Unfortunately, more and more online ads posted by private home sellers seem to copy-paste that statement into their apartment ad, making that statement loud and clear for all to read.
When I first got into the real estate business, I was astounded to discover how many people hate real estate agents. And I’m not talking about a slight dislike, it’s the kind of hatred that is deep-rooted and passed on to their inner and outer circles. Unfortunately, some of that hatred is justified. It’s the bad apples in the barrel that give every other real estate agent a bad name, but there is more to it than that.
For starters, it is the fact that just about anybody can become a real estate agent. Anybody could get a real estate license just by passing the exam and the short list required to qualify for a license is what makes it an “easy” business to get into.
Adding the fact that many people find it difficult to pick up the right agent for the job, simply because so many real estate agents fluff and puff about themselves, making it hard to tell what is true and what is false.
From my own experience, I’ve had the opportunity to meet all kinds of real estate agents, and found most of them to be honest, hardworking, and ethical. If you’re considering a career in real estate or new to the real estate business in Israel, read on to get a better understanding on how the public sees real estate agents and how to avoid being a ‘hated-agent’ and become a professional real estate agent your clients would appreciate and recommend.
The Main Problem(s)
One of the main issues with real estate agents in Israel, is that there are still quite a lot of them operating without a license, making the business seem unregulated. Although the Real Estate Brokers Act, that regulated the real estate profession in 1996 defining boundaries and limits for its practitioners, it is unfortunate that Israeli real estate agents still suffer from a negative image, while the US and most European countries inherent the role of a real estate agent as an integral part of any real estate transaction.
Another main issue is that about 65% of agents, or 3 out of every 5 agents, don’t have enough experience and will probably never gain enough experience to develop themselves into the professionals they should become. It’s a tough job and most agents learn on the job, without getting any proper or professional training apart from what they are offered by their office or firm. The information has to be retained by the agent and if an agent wants to succeed, he needs to invest both time and money in acquiring proper training, and very few of them actually make the effort to invest in training, attending seminars or hiring a business coach.
As real estate agents work solely on commissions, meaning they can go on for a couple of months with no income, it is no wonder there is a huge turnover in the real estate industry.
What you can do differently:
For starters, acquire your real estate license. It’s a professional business and if you want to be a professional, then you should treat it as such. Secondly, form a business plan and get educated. Understand the ins and outs of the business, meet with as many agents as you can to get an understanding of how the business works, sign up to webinars, join seminars or workshops, hire a business coach and understand that it’s more than just a sales job. And third – accept that marketing is an integral part of the real estate business, and you must absolutely master in marketing.
Experience and Trust
Real estate is a business in which the newly minted real estate agent is placed on the same level as an agent with 10 years or more of experience. In Israel, it also happens to be an ‘old-school’ business, in which agents who have been for over a decade in the field aren’t necessarily accustomed to today’s new age marketing and trends.
There is no school like the school of hard knocks and you mainly learn and gain experience on the job. There is value in experience, and the more sales you make, the more experience you gain. Be it through experiences and mistakes, over time you’ll learn from past sales and thus possess the ability to protect your clients.
How to get business as a new agent:
It will require a lot of work and patience on your behalf, but you can still make it. For starters, there’s no shame in admitting that you’re new to the business. You’re eager and hungry to succeed, which will easily show and there are quite a few sellers and buyers who will appreciate that and will be happy to work with you. Start off small and give yourself time to get acquainted with your desired area of work. Start off by word of mouth, have your marketing tools up and running (which I will elaborate more on another post), and create an image that you want for yourself and for your business. The more serious you take it from start, the more professional you will look in the eyes of your clients.
People Hate Agents Because it’s Seems Like an Easy Business and They Make Lots of Money
Real estate is hard, and whoever thinks it’s an easy job clearly has no idea (!) what a day in a life of a real estate agent looks like (another post to come) and what the job requires.
True, I’m my own boss and I’m in charge of my own schedule, but there are times where I work day and night, and in between phone calls, emails, and running from one meeting to another, I have to stay on top of my advertising and marketing efforts, in hope that all goes well so eventually I can close a deal. And sometimes a deal falls through, and it has absolutely nothing to do with my effort and hard work, it just does, for reasons beyond my control. And when it happens, I find myself back to the drawing board, and this might mean that another month has gone by without an income.
Buyers and sellers rarely understand how it is we do what we do or how much work we really put in. We’re judged by results, and we’re only paid for successfully closing a deal.
Overcoming objections:
Many sellers and buyers choose to forego the service of a professional agent in order to save the cost of paying a commission. At most, this is associated with the fact that many simply don’t understand the benefits of working with an agent, or know what real estate agents do and why they deserve to get paid as much. Many sellers think that selling their apartment simply means hanging a ‘For Sale’ sign and posting some (really bad) photographs online. Those two actions might bring a buyer but it won’t necessarily sell their home.
Be professional and explain why you’re service is needed, and why you’re the right one for the job. A lot can happen along the way and a good (and experienced) agent knows just how to negotiate and how to handle problems that can pop up.
Not just that, but as a real estate agent you are putting into action a whole network of professional real estate agents who will be working with you offering your listing to their clients.
Come prepared to meetings with marketing materials and show your portfolio of listings through your professional website (another post on this topic as well coming soon). Social proof is a super powerful tool so don’t be afraid to ask for referrals and testimonials – this is how clients form an impression on you which will eventually make them choose to work with you.
I’m a great believer of inbound marketing (new post coming soon) blogging and creating content for my clients. Educating my clients and offering them tools is key to building trust and becoming an authority among prospects. You want to be the ‘To-Go’ agent in your target audience, and the more information you provide them with, the more they understand how valuable you are to them, eventually choosing you as their agent.
And if a client tries to negotiate on your commission, don’t get offended by it; simply understand that it is common practice and that they are only trying to get a good deal. The decision is entirely yours, of course, and if you do choose to negotiate on your commission, remember that you are still obliged to provide your client with top-notch service.
In summary: The real estate business is more than just matching people to property and it requires a lot more than just experience in sales.
Form a business plan and get educated. Understand the ins and outs of the business, meet with as many agents as you can to get an understanding of how the business works. Sign up to webinars, join seminars or workshops, hire a business or a real estate coach and aim to be the To-Go agent in your target audience. Create an image that you want for yourself and for your business and most importantly, the more serious you take it from start, the more professional you will look in the eyes of your clients, ultimately making them choose you as their agent.