According to Brett Weinstein, real estate is not for the faint of heart. Too many rookie agents fail to properly demonstrate what they can do given competent leadership and mentoring.
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You’ve heard the stat forever: 87% of realtors fail in the first 3-5 yearsTom Ferry cites it, and it is commonly attributed to the National Association of Realtors’ 2014 agent profile. But what caused Exodus and what can be done to improve the results of the new agents?
Training and coaching seem to be some of the biggest lag indicators we have right now. To do. So what’s the problem? Let’s dive in.
The problem with the traditional agent model
The traditional real estate model is designed when new agents come in and the company gains access to their territory. This means you’ve been given a script, trained, and instructed to start making contacts.
For large brokerage firms, this means that if their agents succeed, they can make money. So how do you effectively train a new agent or mentor someone?
First, let’s leave the traditional model behind. To become a real estate agent, you can go through his module online and pass the test. Although there is a one-hour requirement, this has one of the lowest barriers to entry for anything with significant financial impact for both agents and clients.
Real estate is usually the most expensive purchase for the average person, but the barriers to entry are very low and we can help. increase.
The goal is to ensure that new agents, or, frankly, experienced agents, become experts. Currently, under the mentorship model, any agent who has been with the company for two years or more can be “coached.” Restrict coaching and mentoring to true experts in the field.
Focus on training all agents to fully understand the market instead of scripts
Whether you’re a buyer, seller, investor, family event, or local bar, every agent should be able to answer three key questions.
- what about the market?
- How did the market come to be this way?
- Most importantly, what does it mean for the person they are talking to?
These are not just points of contention. You need a fundamental understanding of what is going on in real estate. This is because when agents advise, they have clear eyes and understand what they mean, so they start on the right foot. Helping someone buy a home is easy, but that doesn’t mean it’s a great decision for them.
Making sure we are the experts allows agents to provide the complete service their clients deserve.
- understand the house
- know when to leave
- Fully understand how the process works
- Ensure agents are competent to conduct walkthroughs
- Using shadowing and role-playing
Hands-on training is essential. This is not an abstract topic. This is one of the biggest purchases in a person’s life and a realtor should fully understand each part of the process.
Set up weekly, monthly and quarterly check-ins with each meeting agenda
Whether it’s discussing what your business looks like right now, the issues you and your clients are facing, the real business plan, negotiations, or what you have in store, agents are out there. Agents should also have a thorough understanding of the tools available to them.
MLS is more than just a search tool. This enables agents to perform comparative market analysis (CMA) to understand value. In a changing market, this is essential. Agents need to understand the meaning of price, not just assessed value. A coach/mentor’s goal is to see the person they are helping become an expert.
The minimalist approaches we’ve seen lead to very high burnout rates. Be an advocate, be a teacher, and make the expert you really are. The most important question a coach/mentor can ask himself is whether he is ready to become an expert and pass on his knowledge to new agents in a way that creates and fosters success.
If you can’t do that, pass the coaching. The goal is to raise the bar within the industry. We know we start at the bottom, so help those you work with get to the top.
Not everyone can or should do this job, so take a step back anytime and let the person know that this may not be right for you. Be a guide in this industry and know when to quit as a teacher or advice to students.
Bret Weinstein is the CEO and founder of BSW Real Estate in Denver. Connect with him on Facebook or Instagram.