By: Shelby Austin
Before we get to Love Potion Number 5, let’s first look at how most perceive the skills of a Quality Real Estate Agent.
If I asked you what it takes to be a Real Estate Agent you might say, honest, hardworking, would love to look at houses, be able to negotiate deals and good at marketing. The job would entail showing homes, decorating homes, putting deals together, holding open houses and negotiating deals, happy buyers and sellers. Right?
Real Estate sales require the draw in of people, the tenacity to get the job done, a desire to work hard and a willingness to understand the craft-but long term success is the work smart, not hard approach.
Seek out people to work with, create trusting relationships and ask for business. Self-educate about laws, markets, lending environment. Educate others, negotiate, counsel, close. Refresh and Repeat!
I say these 5 characteristics are required for success. But Love Potion #5 is guaranteed to reduce the risk of burn-out.
- Roll off me & bounce back attitude
(Love Potion) #5 – Teacher & Coach
Here is a snapshot of transactions in the life of an agent lacking Love Potion No. 5 – we can see why the Teacher & Coach skills are critical.
Agent Sally’s last 6 months – 5 opportunities:
- Buyer – pre-approved. Hasn’t signed agency agreement. Shown homes over 3 weekends-12 houses, 20 hours invested, 21 phone calls. $30.00 in gas. Buyer gets job transfer to Texas, waiting a year to buy. Zero Earnings
- Buyer – pre-approved. Under contract. Wrote a check that bounced accidentally. Now can’t get financing. 32 hours invested, 28 phone calls, $60.00 in gas, Lunch $20.00. Zero Earnings
- Seller – Listed home. $225,000. Should be $210,000 at highest. Needs de-cluttered and has two dogs. On market 3 months –only 6 showings. Seller reduced to $220,000. Agent purchased Dog Kennel for sellers since seller refused to remove dogs during showings and alpha dog (Muffy) snarled and snapped at first buyer viewing the home. Agent stopped calling seller every week, now seller is calling agent to say they are not re-listing with Agent. 60 hours, 93 phone calls, $25.00 in gas, $75.00 in lunches and flyers. $30.00 dog kennel. Zero Earnings
- Seller – Listed home. $450,000. Priced right to get showings. Seller smokes. Feedback is always about the smell. On market 3 weeks – 20 showings. Agent purchased ionizer – still smells as seller is still smoking in the home. 43 hours, $15.00 in gas, 52 phone calls, $150.00 in lunch and flyers. Zero Earnings
- Buyer – pre-qualified. Signed Agency agreement. Wants fixer upper. Needs FHA financing. Won’t look at anything unless it is grossly underpriced. Purchases a home that must sell as a Short-Sale (needs lender participation to sell for less than owed). Buyer waits 2 months to find out Lender will not accept net amount, buyer is frustrated and wants to give up on purchasing, decides to rent. Now buyer won’t return agents phone calls. 32 hours, $38.00 in gas, 43 phone calls. Zero Earnings
Gas $168, Lunches $245.00, Ionizer $240.00, Dog kennel $30.00= TOTAL OUT OF POCKET $683.00
Phone Calls 237
Earnings $ ZERO
See below for possibility of how the Love Potion might have made a difference:
- Might have questioned better about commitment to purchase – likely same outcome Earnings – still ZERO
- Counsel Buyer on possibility of Financing falling through if something changed or went wrong – may not have corrected, but Agent would have not kicked themselves quite as much in the end) Earnings – still ZERO
- Might have coached Seller on correct pricing, only agreeing to take listing if priced right, insisted that dogs be removed from home for the short time it takes to sell) Commission earned or Seller does not agree and agent moves on to something more productive, time and money not wasted.
- Might have explained to seller that the investment of Agents time and money comes with the understanding of what is needed to attract a buyer. The seller cannot smoke in the home and Agent will not put home on the Market until such time that it is smoke free. Seller’s commitment to sell is evident by their willingness to be in the game to get the job done as they would also expect the same from their Agent. No half way.) Commission earned or seller does not engage. Agent moves on to something more productive, time and money not wasted.
- Might have coached Buyer that only seeking out deals limits the pool of homes. Explains that a deal can also be found but with much less risk than a home that has not been maintained– such as one with low repairs or potential for added equity because of desirable location or plan. Also coach that as a hard working Agent, you are not inclined to spend time on risky transactions. When financing, homes need to pass many levels from the appraiser, insurance and underwriting.) Commission earned or Buyer chooses to stay in mode of finding the perfect deal, Agent moves on to something more productive.
Do you believe in Love potion#5?