Four Things You Didn’t Learn in Real Estate Class
You probably took about 100 hours of coursework before you were even ready to test for your real estate license. These courses may not have prepared you for the pitfalls that befall many new real estate agents in the field. As with many professions, you will learn the business better in the field and having a strong mentor. Here are four situations that may arise in the early stages of your career and how to solve them.
Guiding Lowball Offers
You have a buyer who really wants a house but is refusing to pay what the seller is asking. The most common time this may happen outside of negotiating the offer is when the inspection comes in and there are repairs to be made. Most buyers think the seller should pay for everything found in the inspection, while the seller is standing firm on not making the repairs because they didn’t get the asking price for their property. This is the time to be open and honest with your buyer. They are either going to have to walk away or offer more money. This may not be the home that the buyer has always wanted if the price isn’t right.
Accepting “As-Is” Properties
Foreclosures are popular now and buyers think of these as great deals and a good investment. But a real estate agent can run into trouble when representing a buyer of a foreclosed property. Most foreclosure properties are listed “as is” and the buyer must accept responsibility for repairing any defects. With bank owned properties banks can be tough to negotiate with. The back and forth with this kind of deal can be time consuming and there’s no guarantee it will work. Your best bet is to have your buyer contact a real estate attorney to see what kind of leverage they have to ask for a credit on a purchase. Foreclosures seem like a sure thing at first, but can end up costing you a lot of time for little profit.
Mentors
Some larger real estate companies may pair you with a mentor that isn’t actively selling real estate and that may leave you doing many things on your own. It’s best to have a mentor that sells, negotiates and closes. If you are paired with a mentor that isn’t a good fit, have a candid conversation with your broker and be honest about your goals and who in the office you can best learn from. It’s important to learn the tips and tricks that can only be learned from seasoned agents.
Getting Burnt Out
It’s easy to get overwhelmed in the business from handling the day to day complications. You need to spend time planning for your future success. There always seems to be something to handle: calls to return, texts and emails. You’ll want to block out time each week or month when you can focus completely on your business planning. Setting a schedule and having your clients stick to that schedule is an important part of not wasting your day on things that are not growing your business. If you don’t want to work on Sunday afternoons, block that time out for yourself and let your clients know.
Being in the field and learning from the more experienced agents is the best way to grow your business. If you do run into an issue that you are unable to solve on your own, don’t be afraid to seek advice from your mentor or broker. Eventually, you will learn all the ins and outs of the real estate business and well on your way to a successful career.
