Real Estate Agent Income Drops Significantly

Real Estate Agent Income Drops Significantly

By Rhode Island Realtor Emilio DiSpirito

Schedule a call or consultation www.calendly.com/emiliodiv

Over the past year, Realtors have seen a serious drop in income. It seems odd seeing as we are in the hottest housing market ever on record right!? Yes, that is what we thought, so we did some digging and here is what is going on!

Little to no inventory for entry buyers causing a chain of effect!

When baby boomers are considering keeping their oversized home because they love their mortgage rate and Generation X decides that they are not going to buy up because they do not want to spend that monthly nut, the first time home buyers are left with little inventory to choose from, therefore, home prices due to demand are increasing, yet feeding the circle more than ever! 

Wall Street's role in real estate

Investors and not the kind tearing down walls and swinging a hammer, but the Bently driving, Starbucks drinking one's on Wall Street have entered the game. 

Sites like HomeLight, Upnest, AgentMachine, and others are now charging Realtors a hefty referral fee of 25% to 35% on buyers and listings. It's actually noted that Wall Street will throw $16 Billion into real estate ad spend this year alone.... 

Let's break this down for you. An agent lists a $400,000 property at 6%, pays 3% to a buyers agent and is left with $12,000. From that $12,000, up to $4200 will go to that referral source which leaves the brokerage with $7800. Keep in mind that the agent now owes the brokerage their cut which is typically 40% which now leaves the agent with $3120. This agent is responsible for marketing, taxes, and insurance as well as board dues, overhead, etc. 

The Rise of the Realtor?

People are tired of working the 9 to 5 and see friends and family doing very well in real estate. The amount of agents from 2011 is up 19%! There are roughly 1.3 Million Realtors in the United States today. With a large number of part-time agents, full-time agents have seen a decline in the number of transactions overall as people hire a friend or family member. 

Schedule a call or consultation with Emilio DiSpirito here www.Calendly.com/emiliodiv

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How to Make $100,000 plus in Real Estate as a Realtor

How to Make $100,000 plus in Real Estate as a Realtor

From Ramen to Riches!! My Quick Guide For You!!

By Emilio DiSpirito, Realtor/Radio Show Host 

$100 Grand! It's probably the most generic amount of money the average person wishes they can earn and is more or less the bench mark in real estate which indicates the start to a successful business as a Realtor. 

When I started real estate 5 years back, there was not as much information as there is now and even with all the information out there, a lot of what we see is fairy tale bull shit. This is a quick guide and does not cover every little piece, however, you need to start somewhere, so keep reading! 

If your goal is to truly earn 6 figures in real estate, there is only one way to do it and it's to give it your all! Once you have a business that runs off referrals, it tends to get a bit easier. The first 3 to 5 years are gut wrenching yet satisfying when you hit your goals!! Chin up!! 

Side Note: If you are already in real estate and NOT earning $100,000 after 3 years.. what is going on? If you are a solo agent, try a team! Don't worry about splits as 100% of zero is still zero!!

Ready?! You better be. 

1.) Don't get advice on how to make $100,000 in real estate from someone who has not done it (that includes your broker or mentor!!) or from someone outside of the industry. Rule #1. Comprende? 

2.) Realize that you only know what you know.. and when you start real estate, you don't know squat about the subject. Be open minded and learn the following:

• Learn How to Negotiate - Read "Secrets to Power Negotiating" by Roger Dawson. It will change your life. Right off the rip you will be negotiating higher commission splits from brokerage, team, and clients. Later on down the road when you are selling, you will bring your clients higher sales prices and organically your business will grow from kicking ass!! ;) trust me!! 
• Skip the sales tactics and understand you are here to provide value. Read a new self-help business development book once per month. 

3.) Ditch your job and dive in!! GO FULL TIME or don't do it! 

• It's simple. If you don't believe in you. Who will? No one. Part time agents give part time service. Horrible way to start. (Are you part time? Offended? Remeber, this blog is about how to make 6 figures). 
• Head first - dive in, don't look back and follow the below steps.. (oh yea.. and get used to eating Ramen noodles with Taco Bell hot sauce. Sucks. But, it will motivate you to earn that filet!)

4.) Understand the numbers!!! First off - Every 97 no's will equal 3 yeses! Embrace the no's and keep going!! Let's talk about some other numbers though:

• Let's use $250,000 as your median market sale price and multiply by 2.5% commission on seller & buyer side. You are on a 60% split. 
• $6,250 Gross x 60% = $3,750 x 27 = $101,250
• Focus on selling 2 homes per month (and 3 in May, June, October).

5.) I quit my job, have zero money to spend.. how do I get my leads for FREE?! 

• Interview the top 5 Team Leaders in your area. They should supply leads and for zero upfront cost. They take their cut when you sell. Rinse and repeat. 
• Not interested in a team? Ok do this (by the way if you are on a team you should also be doing this!):
• DON'T DO THIS - "FARM" This is a term dinosaurs in our industry use to go randomly knock on pissed off home owners doors. Nothing really annoys people more than a real estate agent knocking on their door.. It's stupid, waste of time for what you get and your odds will suck. TARGET SELLERS WHO ARE ALREADY MOTIVATED!!
• First off understand listings are your lifeblood in real estate. Each listing should get you another listing and 2 to 3 buyers. SO, GET LISTINGS!!
• Set daily alerts for withdrawn listings and expired listings in MLS.
•  Knock on the doors. These people are pissed their last agent did not sell their home and they are motivated sellers!! 
• Not home? Find their phone numbers, call them.
• Follow up the call with a letter.
• Try them at dinner time or around 7 pm!
• YOUTUBE "HOW TO CALL ON EXPIRED LISTINGS"
• Watch this video Deric Lipski vs a Really tough Expired Listing Cold Call LIVE!!!
• Call on FSBO - AKA For Sale By Owner!! (Another seller that is ready to sell!!) 
• YOUTUBE "HOW TO CALL ON FSBO"
• Watch this!! How To: LIVE FSBO Call to Appt - Colton Lindsay
• Ask agents in your brokerage to hold open houses in homes above the median range!! Often times buyers walking in are sellers!! Follow up with each guest and always provide value!!
• Each guest could be a seller and buyer!! 

It's really that simple. Remember that listings are key!! Each listing will multiply your business x 3!! So how many listings will you need to sell 27 homes?! 

SIDE NOTE: Don't give advice to clients you would not take. Also, don't count your commission until the property closes! Focus less on the money and more on doing whats right and the productiviy of it all and the money will come. 

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