First month as an agent, $834k pending, $135k sold

24 Replies

I got my license may 1st and began working for Coldwell Banker, I sold a $135k house in my first 2 weeks and in the last 2 weeks I have gotten 6 more houses pending, from a 30k house all the way up to a 420k house, totaling $834k pending.

So far my key to success has been doing open houses. I have been doing 2-3 open houses per week and meeting buyers that way. 

I am still a newbie, but for any new agents I would stress open houses hard. Go into your office and ask the agents who have listings if you can hold them open. Higher priced neighborhoods the better!

That is amazing success.

Originally posted by @Steve L. :

That is amazing success.

Thanks Steve. 

I come from a sales background. I have just been working 7 days a week the past month meeting as many people as i can. And more importantly following up and making myself available literally 24 hours a day.

I plan on investing a good portion of my earnings into marketing and seeing what type of results are possible.

I love the Idea of the open house for meeting new buyers! 

Realtor's in our town hate doing them because they do not usually ever help with the sale of the house but its cool to see another use for the home. 

Just remember residential is highly cyclical.

Many new agents lose sight of this fact. They start out in the busy summer months and get comfortable with high volume and success.

Winter months roll in and sales decreases substantially. You could have 834k pending and 400k closes and the rest falls out. 400k at 3% is 12,000 commission and if a new agent on 50/50 you are getting 6k of that.

Some money to re-invest on marketing is okay but wouldn't go all out. I am doing very well with my commercial brokerage but investing the money while everyone else is taking vacations like crazy. I want to do what other people won't for five years so I can live the 60 years or more the way they can't.... : )  

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

Originally posted by @Joel Owens :

Just remember residential is highly cyclical.

Many new agents lose sight of this fact. They start out in the busy summer months and get comfortable with high volume and success.

Winter months roll in and sales decreases substantially. You could have 834k pending and 400k closes and the rest falls out. 400k at 3% is 12,000 commission and if a new agent on 50/50 you are getting 6k of that.

Some money to re-invest on marketing is okay but wouldn't go all out. I am doing very well with my commercial brokerage but investing the money while everyone else is taking vacations like crazy. I want to do what other people won't for five years so I can live the 60 years or more the way they can't.... : )  

Yeah this is a tough business. I would have $1.5mm pending right now but the market is so competitive my buyers offers keep getting outbid.

There are some agents in my office who sell $2m-5m per month average year over year.

I want to get to this level so bad. Is marketing the key?

You ROCK!

Do those agents have teams of people??

Very hard for them to do those levels in residential without a large team which cuts into profits heavily and has lot's of overhead. If volume drops you can go from making money to losing it fast. 

If the average house is 200k price for 2 million that is 10 houses a month for a closing about every 3 days.

With buyers you are limited because of scale. There is only one of you and no matter how many hours you work you can't do three places at once. Some brokers/agents take buyers on bus tours. In this way they can show their clients a large selection of properties at a time and hopefully sell multiple buyers on different ones.

Most brokers/agents do not go to this extreme as it cost a bunch of time and money.

New agents typically work with buyers as sellers will not give them the business yet.

Something to think about long term is this. As a listing broker you can do many properties at once.

Example: You find your buyer a perfect property. You write an offer. 5 other buyer bid. You have a 20% chance of winning the bid and closing on it to get a commission.

Conversely you are the listing broker/agent. You select one of the 5 offers to go under contract with and get paid 100% of the time unless the deal falls out. Now you know why most brokers/agent long term for residential move to focusing on the listing side. They can be anywhere with a laptop and move a deal along. They can list a large number of properties with just one assistant.

The 4 other buyer brokers that lost out get to go find another property again and waste time and gas so when something does close it is a reduced return.

I work with lot's of buyers on the commercial side but it is number crunching from my office, e-mails, and phone calls and not driving people all over creation like with residential.  

  

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

Originally posted by @Joel Owens :

Do those agents have teams of people??

Very hard for them to do those levels in residential without a large team which cuts into profits heavily and has lot's of overhead. If volume drops you can go from making money to losing it fast. 

If the average house is 200k price for 2 million that is 10 houses a month for a closing about every 3 days.

With buyers you are limited because of scale. There is only one of you and no matter how many hours you work you can't do three places at once. Some brokers/agents take buyers on bus tours. In this way they can show their clients a large selection of properties at a time and hopefully sell multiple buyers on different ones.

Most brokers/agents do not go to this extreme as it cost a bunch of time and money.

New agents typically work with buyers as sellers will not give them the business yet.

Something to think about long term is this. As a listing broker you can do many properties at once.

Example: You find your buyer a perfect property. You write an offer. 5 other buyer bid. You have a 20% chance of winning the bid and closing on it to get a commission.

Conversely you are the listing broker/agent. You select one of the 5 offers to go under contract with and get paid 100% of the time unless the deal falls out. Now you know why most brokers/agent long term for residential move to focusing on the listing side. They can be anywhere with a laptop and move a deal along. They can list a large number of properties with just one assistant.

The 4 other buyer brokers that lost out get to go find another property again and waste time and gas so when something does close it is a reduced return.

I work with lot's of buyers on the commercial side but it is number crunching from my office, e-mails, and phone calls and not driving people all over creation like with residential.  

  

 Thanks for the response Joel.

I definitely realize that listing is the key. I just put an ad in the paper targeting sellers. All of my pending deals except 1 was from working buyers. Spending time with people who you are not sure if they will even buy anything. 

From what you have seen does marketing play a big role in getting listings?

There are high motivators and low motivators for both buyers and sellers. Over time you get better with getting to the core if they are a good egg to work with or not.

Anyone I work with I demand a commitment. People calling around everyone to see what sticks go to the bottom of the pile if I have nothing going on which I stay very busy.

Fine if people want to stick with that approach but it is not part of my business model.  

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

Wow, I need you to mentor me. I'm a new agent!

Had a $49k deal fall out yesterday, sucks.

But got a $65k deal pending same day!

Congrats @Mike Wallace

Glad your hard work and dedication is paying off in a major way! I start my RE classes on Tuesday, really looking forward to it.  Maybe we can connect  in the near future since we're both in the Detroit area. Much continued success to you.

Impressive.

The market here is on fire...get it while you can.

Originally posted by @Joel Owens :

Do those agents have teams of people??

Very hard for them to do those levels in residential without a large team which cuts into profits heavily and has lot's of overhead. If volume drops you can go from making money to losing it fast. 

If the average house is 200k price for 2 million that is 10 houses a month for a closing about every 3 days.

With buyers you are limited because of scale. There is only one of you and no matter how many hours you work you can't do three places at once. Some brokers/agents take buyers on bus tours. In this way they can show their clients a large selection of properties at a time and hopefully sell multiple buyers on different ones.

Most brokers/agents do not go to this extreme as it cost a bunch of time and money.

New agents typically work with buyers as sellers will not give them the business yet.

Something to think about long term is this. As a listing broker you can do many properties at once.

Example: You find your buyer a perfect property. You write an offer. 5 other buyer bid. You have a 20% chance of winning the bid and closing on it to get a commission.

Conversely you are the listing broker/agent. You select one of the 5 offers to go under contract with and get paid 100% of the time unless the deal falls out. Now you know why most brokers/agent long term for residential move to focusing on the listing side. They can be anywhere with a laptop and move a deal along. They can list a large number of properties with just one assistant.

The 4 other buyer brokers that lost out get to go find another property again and waste time and gas so when something does close it is a reduced return.

I work with lot's of buyers on the commercial side but it is number crunching from my office, e-mails, and phone calls and not driving people all over creation like with residential.  

  

Hey Joel, 

Question for you. Do you reccomend someone getting started in residential and then perhaps transitioning into commercial? Or starting in commercial right away? I just imagine its so much harder to network in commercial real estate but it has bigger payoffs. Is the competition the same in commercial? 

Thank you! 

Johnny Lujan

congratulations!  That rocks!

Yes competition in commercial. It's more relationship driven. I only want to work with people I respect and have a quality relationship with.

I would rather have 10 quality clients that buy once a year and make seven figures commission annually then deal with a bunch of one off people that are a bunch of drama.

My goal is to be invested heavily in my clients success over decades. The money is nice but I want the relationship. I am always looking for QUALITY clients to add to my portfolio of business.

Johnny if you are in  rural town there will not be hardly any corp tenants there or properties. In those towns it's more mom and pop commercial so one real estate company handles residential and commercial. In suburban to urban areas it is highly specialized. If you want to do commercial just go for it right away. 2 different worlds ( residential and commercial ).

You generally start out on a team at one of the big brokerages. They take 50% or more as a newbie to train you up. Once you move from junior agent to agent to assistant director etc. the split usually gets better over time.

I am the principal broker with my own company so I offer a more boutique and heavily driven customer service relationship where you are not just a number among the masses for the big boys.  

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

My $49k deal fell thru : (

But I got another buyer pending on a $65k house the same day!

Got 2 open houses this weekend. One for $299k and another for $415k. Hopefully will pick up some good buyers.

Update:

Closed on a 120k house and a 30k this past week, the 120k paid 4%!

I also got a 220k and a 139k pending this past week.

Hopefully getting a $90k listing next week, fingers crossed.

This puts me at $285k closed, $993k pending currently.

Im with Coldwell Banker and I am on a 50/50 split till I hit $16,900 then it goes 95/5. Which if all my pending deals close I should be over my cap. Is this a good deal as far as brokers go?

Definitely, I am not an agent now but was and open houses is the best way to draw them in. Frustrates me when I hire an agent and they don't do them.. I won't again with them if they don't