Of course people look at real estate as a quick way to make lots of money. The formula is simple. A lot of real estate changes hands every day. Even a small portion of this market share multiplied by returns from each transaction can amount to a lot of money. A typical residential property sells in Toronto at an average price of $400,000. Even 2% of this amounts to $20,000. Do this five times over and the return would be $100,000. Depending on where you start your career, getting a real estate licence can be fairly easy. Another reason most people are attracted to this business is because it seems to have a low overheads.
All these factors that make a career in real estate so appealing also make it more competitive. You are not the only one. A lot of other people think along the same lines and try to make a quick buck. The reality is quite different for most. There is also a need for real estate professionals to constantly update their skills and knowledge by taking classes. There are also rigid guidelines and codes of practice implemented by various government and non-government agencies.
During the first year, people are able to do reasonably well because they have access to a very reliable source of leads, family and friends. This sphere of influence however dries up rather quickly. Step in to Year 2 and the storey is quite different. This is where marketing comes in. Most REALTORS® run into trouble here because either they have not thought of the ways to market or don’t have the resources. Advertising can be a very expensive proposition. Even with the advent of online marketing methodologies, generating traffic and converting them is a very tricky business. And don’t forget that one has to spend considerable amount of money either advertising the domain names or for pay per clicks for bringing that traffic in the first place.
Despite all the expenses to generate actual business, there are other costs associated with becoming a REALTOR® and staying a REALTOR®. Image consultants advise having a nice car, professional presentable personality, a wardrobe current in style, smart phone, data access, marketing gifts i.e. branded pens, USBs, mugs etc., and not to forget the board fees, insurance cost, office or desk fees, secretarial service expenses. The list just goes on.
The scenario is not so bleak though. With a proper marketing plan, right brokerage, prestigious brand, peer support and guidance one can certainly succeed.