Start as a Part -Time Agent while working a full time job?
@Jake Thomas I really appreciate you giving us a snapshot in how you managed to succeed starting as a part-time agent. How do you find the people who are already advertising they will pay a buyers agent 3%? Are you prospecting FSBOs? I would love to help working professionals who want to invest, but don't have the time to look for properties. A few of my co-workers fit this category, but I'm not sure how I would go about finding others.
@Patricia Joseph I get most cold call listings from Zillow or Craigslist. They typically have a few terrible pictures online and just look like they need help selling the house. They also typically offer to work with a buyers agent at 3% since 9 out of 10 buyers already have an agent.
I also focus on the higher priced listings and offer them a discount on my commission to get the listing. 1% on a $600K listing is better than 0% on no listings. You also gain exposure, credibility and over time listings lead to more listings.
I once converted a 1% listing agent condo listings into two other listings and two buyers totaling around $25K in commissions and minimal effort in a 1 month span all because I took the listing at a discount and sold it at the open house etc.
The days of 6 and 7% commission realtors is fading slowly as the older generation that would accept that is fading fast and millennials are taking over.
All of the comments on this thread have been helpful, thanks.
Jake Thomas I have questions around cold calling as I see this as a good way to get things going initially at least.
I would like to get some general feedback from individuals around cold calling for listings/clients.
-Are you cold calling at all? Why or why not?
-How many hours per day/week do you spend cold calling?
-Are you using scripts or winging it?
-How are you identifying those who you are cold calling?
-How long have you been cold calling consistently?
-How does your cold calling compare to other lead-generation techniques in terms of conversion rate and return (on time invested)?
@Jake Thomas sounds like you are reaching out to FSBOs. If so, what's the key to working with this group? I've recently started marketing to FSBOs offering them marketing tools to find buyers, but haven't had much luck in reaching them by phone. I've also sent direct mail pieces as well. Any suggestions? TIA
@Patricia Joseph I have had minor success emailing FSBO from Craigslist offering them a discount to list. My best luck is getting them on the phone and talking over their options.
People list FSBO for two reasons usually. First, they are control freaks and can't give control to another person to sell their home. These people are very hard to convert regardless.
Second, people list this way to save on commission. 6-7% commission is hard to swallow for most people. Paying two people $6,000 on a $200,000 house is difficult for people understand even though we all know Realtors add value, etc. These people get calls from Realtors every day with the same speech saying how they can help blah blah. I could likely convert 1 out of 40 calls a day to a listing for the full commission but honestly there isn't even 40 FSBO's in my market. The competition is fierce and I need to offer something else that no one does and that is discounting my listing agent commission. Some people will give me a hard time and say I would never discount my listing commission and such but they are not in the market I am in. 3,000 realtors and no more than 1,500 active listings at a time. Everybody and their brother is a realtor now and I had to find a way to be different. How I keep them on the phone after cold calling is offering them 1% listing agent commission for a total of 4%. Buyers agent gets 3% and you take 1%. I know it seems like a big hit but I have done this quite a lot this year and it has led to getting both sides of the transactions on three deals, two other buyers I didn't have before and 5 other listings at the full commission rate. I give up something on the front end to make up for it on the back end. I believe listings lead to more listings and business in general and I will do whatever it takes to get listings. I just listed a $850K house for 1.5% listing agent commission and I only got that because I discounted my self over other Realtors. $12,750 when it sells is good enough for me, don't get greedy, listings take less time than helping buyers and you gain so much more exposure. Also, I have never spent a penny on marketing to this day.
Sorry @Jake Thomas for my late reply! I definitely appreciate the info and you really make a good point about getting listings. I'm struggling with whether it's more important to discount my fee just to get listings, or continue to seek out sellers, who value my service, and will pay the 6%. At the same time, I'm asking myself: am I cutting off my nose to spite my face by not discounting?