Regular readers of our blog comprising of real estate buyers, investors, colleagues in the real estate business and inquisitive readers would have started understanding what the real estate business is like from our perspective. You have also started comprehending what the different market forces are and how they work. But is this enough? Will the knowledge of these hidden and open factors be sufficient for a real estate agency in the year 2020 to survive in the big bad world of real estate? Although we want to answer it in the affirmative to this question, this isn’t the real answer.
There aren’t many things to learn in this business. But you need to learn to apply each and every bit of information that you have gathered in a precise manner. You need to keep on learning, then apply and repeat the process again and again. But there are other things you need to know as well. What are those things? Do not worry, for we will tell you all. We will guide you step-by-step through this myriad of data we have compiled.
This article is for those who aspire to become an ace real estate professional / entrepreneur? Embark on the journey and gain all the wisdom that is available from us 🙂
The Reality Of The Real Estate Market
Before you start to dig deeper into the real estate market, just ask yourself one thing, “What has compelled you to join this business?” Once you have answered this question, you will be more motivated than you ever were. Not only that, you will also have an answer to something in case you are overcome by doubt. But why are we asking you to do this questioning? That is because there is one luring factor that has connected you to this business. And you need to know that. In fact, all of us need to know what has dragged us into the world of real estate.
It could be a bestselling book / YouTube Channel, TV program that made you mad about real estate. Which book or channel was it? “The Million Dollar Agent”, “Make Your Fortune At Real Estate” There’s a ton of real estate literature and videos out there. Or was it seeing other successful professionals in the real estate business? Was it a seminar / self-learning lecture that might have motivated you? Or was it some person in your circle who was making tons of money every day? Just locate this attraction factor and you will be able to decipher the ins-and-outs of the real estate business.
If it was the money that attracted you, then you are on a somewhat parallel track to success. After all even Donald Trump made his name first in the business of real estate right?! True, but that really is the shallowest of goals. Because to build a real estate business, you should focus on things that is greater than the gold. If you focus on the higher elements, then the money will surely follow. Money is a by-product for the value you create; it is not the real deal. A real estate brokerage business requires vision and toil. If you thought real estate was easy money, then boy, were you mistaken!
But what’s wrong with the money-minting approach? After all, you are laughing all the way to the bank. So where are you going wrong? Here’s one fact and get it straight. Real estate is actually a bootstrapped business. You can even start it on a shoestring budget. But easy money means you will focus more on selling apartments or flats or simply help people rent out apartments because the demand is aplenty. But you are missing out on the real stuff.
Let’s see what a real estate professional with vision and business acumen would do. For e.g. he would identify barren plots of land, which may not have a lot of value in the present day scenario. But in the near future, he could see it becoming a hub of some sort and push the commercial aspect of the place into the stratosphere. He would figure out the future infrastucture projects that are coming into place. For example he would find out the route of the upcoming Bullet train project in Mumbai and envision the commercial potential unlocked in stations along the way to Ahmedabad. This is just one example of future planning and foresight. So you now understand the long term perspective of the whole business? Professionals can earn a lot more this way than they would have earned out of the brokerage of simply renting out apartments. All you need is a vision. Success will then surely follow.
How To Do It When You Are In Sales?
Are real estate agents actually salespeople? Yes or no? This is the truth that has eluded most of the common people. The real estate market also shies away from this tag. They might call themselves real estate agents, real estate advisors, transaction specialists, channel partners or whatever. But in reality, they are actually salespeople, but their playground is entirely different. That is why they don’t club along with the sales hoi polloi. So don’t get confused with terminologies.
There’s nothing to be ashamed of being a salesperson. Capitalist markets thrive because of high performing salespersons. But why do people shy away from this tag? What’s so bad about it? Well, that is something you can blame on the agents. During the property market booms, there is always some aggressive selling involved. Most of the real estate agents have done just that. This has, in turn, spoiled the name of the entire industry. Moreover, the industry is also plagued with large scale real estate frauds. It comes as no surprise that most clients are wary of agents.
That is why real estate agents should be patient. If they think about the future, they will understand the importance of the client-broker relationship. It is always advisable to go slow. Making a quick buck for satiating your greed is not the correct way to do business. As an agent, you are a middle-man and you should understand that. You do not have a tangible product to sell or buy, so cut out the BS that you have been dishing along.
An ideal salesperson / real estate agent is the person who listens to the sellers’ demands and offers him a great deal. They also have to listen to the buyers’ woes and give them the product that they wanted or envisioned. In case that is not possible, then offer them the best that you can manage.
Focus on being a facilitator and you will not regret it. Neither will your clientele feel comfortable about dealing with you. Real estate selling is not rocket science. Yes, some agents sell better than others, but that doesn’t mean you cannot do it. We always advise rookie agents in the business to take some effort and time to develop your selling skills and do whatever you are capable of doing. There is always room for a better person if not a better agent!
What Brokers Do
So what do property brokers do in the real world, while dealing with the real customers? Let us find out. Practical experience is always necessary for any person who is in a selling job. But at the same time, you need to understand one thing. A broker isn’t an agent. It is the next level in the hierarchy. You start out as an agent and slowly graduate your way up to being a broker. In India, a real estate broker would be defined as an older and experienced individual or agency that has enough credibility and brand presence in the market to acquire top quality leads from property buyers and investors.
It is crucial you climb the first rung, then the other. Otherwise, you will falter on afterward. In other words, you will have to first be an agent. Slowly, you must work yourself up to being a broker. That way you will be aware of all the technical jargon that works in the business. You will also know what the main requirements of customers are and how you will deal with them.
When you will actually become a broker, you will be more empathetic to the client and your business will gain a good reputation. You will also bring in more business. Why? That’s because you invested more in the human aspect of the business. This always goes a long way.
Another faulty aspect that affects brokers is that they always share profits in the ration 60:40 or 75:25. This lopsided commission structure does not go down well with most of the agents who work with them. After all, the agents do all the ground work and the hard work. Brokers like these never do good business, because talented agents are wary of them. That is why greed is never good for any business in the long run. At Gupta & Sen, we have a very fair commission structure which ensures that agents who work with us get good quality leads and they are also happy in the long run with the commissions we offer.
But regardless of the commission structure, it does not mean that the agents should overlook brokers. When the property markets pick up and the prices surge, then agents avoid experienced brokers. They don’t want to give them commissions. It doesn’t make sense. But agents should always think about the dry days ahead. After the market corrects itself, demands might dry up. That is the time when you need a broker’s aid. Just remember one thing. Brokers are just business people. They are what you aspire to be – an entrepreneur. Respect that and everything will be fine. Thinking about success is okay, but you need some guidance along the way. Brokers will help you in doing just that.
The Secret For Success – How You Think
How do you achieve success in the real estate business or in any other business? There are a lot of factors responsible for your triumph. But really, what is it and how do you achieve it? Doing good business is all about solving problems. If you possess the knack for some critical thinking, along with some patience, then you have won half of the game.
So what’s remaining? Practice and self-confidence are required – lots of it. Without these two elements, even greats like Mozart would have failed. A positive attitude and nurturing oodles of inner self-belief has helped us get a foothold in the property market in Mumbai in less than 4 years and helped us more than achieve our initial targets 🙂