The Harsh Realities of Residential Real Estate
If you're a new agent or considering becoming one, here are some sobering facts to consider. Only one in ten real estate agents will still have their license within two years of obtaining it. They aren't making enough money to justify the fees we're saddled with.
Of the 10% who remain in the business, I believe the old 80/20 rule comes into play. That is, twenty percent of the agents are making the big money and the rest are just getting by or working part time.
In 2003 our industry began losing about 10,000 agents PER MONTH and the pending litigation could literally turn our industry upside down. Before you commit your career to real estate, these are all things you should consider.
And Now, The Plus Side
Residential real estate is without question the best way to gain financial stability and even wealth for the average American. The career is basically open to anyone who's not a felon. You don't need a college degree or even high school diploma to get your real estate license. That's the beauty of our industry. You simply have to pass the required tests and get fingerprinted.
With the MLS, you'll be able to compete head up with your competition from day one. We all share the exact same information. It's what you do with it and how you present yourself that will set you apart.
No-one will ever tell you you're making too much money nor will you ever get fired. You're your own boss which is the very best perk of this business. You'll know when it's time to really grind and when you can reward yourself with a nice break.
How Can I Help You?
I'm not trying to sell you anything. I can't make you into a superstar agent. No-one can. That's got to come from within.
Nor am I going to try to convince you there are secrets. There are none. Success in this business comes down to working hard, working smart, and a determined mindset you aren't going to fail.
There's no-one out there with a more humbling and doubtful start to residential real estate but I somehow managed to break through. As the saying goes, if I can do it, so can you.
In these 60 second clips, I'm going to be sharing some of the mistakes and smart moves I've made along with the philosophies I built my entire career upon.
I graduated from the University of Arkansas with a degree in secondary education in 1976. After two years coaching tennis in both high school and college, I returned to school at the University of North Texas for a master of education degree.
Although I thoroughly loved coaching, teaching, and the lifestyle, I was living paycheck to paycheck. I realized I had to get into some kind of business to make good money, but aren't a lot of business opportunities for someone with education degrees.
Fate intervened when a friend introduced me to the commercial broker he was working for. I joined that firm 40 years ago selling and leasing commercial buildings.
After 14 years I'd fairly well established myself in Dallas' commercial real estate. I had some nice building sales and leases behind me including a $234,000 commission. But I wasn't happy. I went to work early in the morning and got back home after dark, fighting traffic all the way.
I was living in a world of concrete, glass, and traffic. I just couldn't see myself spending the rest of my working years living like that. I finally decided if I didn't make the move then I'd be locked in forever.
On the last day of my executive office lease I remember vividly looking down as I locked the door asking myself if I'd made a mistake. I had a wife, newborn son, and we'd just bought a new home in a sleepy little town of 2,000 called Lucas. I had no job nor any prospects for a job.
I already had my real estate broker's license from commercial so I finally decided I would try residential. I just assumed selling a home couldn't be that different than selling a building, so I just dove in. I was a one man shop with no company behind me and not an inkling of how to get started.
I didn't know a single person where we'd moved nor did I know a single residential agent I could ask questions of. I was on my own from day one with no help or advice.
Looking back I was incredibly naïve, but I had one thing going for me. I was absolutely driven to succeed. It was sink or swim and that's a very powerful motivator.
From that humble beginning I've accomplished the following ...
I've been the #1 agent in my sub-area of the Collin County MLS for the past 23 consecutive years, often 2 times above the second place agent
I typically close between $50 to $60 million per year of my own transactions
I'm the team leader of The Grisak Group. within the Keller Williams Allen, Tx office. We have 10 outstanding luxury agents and are considered the "go to" Realtors for high end luxury homes within this area.
As a team, we'll close in the neighborhood of $137 million in 2023.