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Common Mistakes NewReal Estate Agents Make
Some people believe that the real
estate business is “easy money,” so
they simply jump in with both feet
before considering the effect the business
will have on their lives – both personal
and professional. You should have a
realistic understanding of the costs,
and be sure that you have a supportive,
understanding family before you commit.
Our experience has been that many
Realtors® and their families are not
educated about the abnormal working
hours or the required initial financial
investment. Realtors work evenings and
weekends, period! Don’t be fooled into
believing that you can be successful
by working 8 am to 5 pm. It just
doesn’t happen.
NOT UNDERSTANDING THE
F INANCIAL & EMOTIONAL
COMMITMENT
Your initial out-of-pocket expenses can
be as much as $1,900, including licensing
and association fees, technology costs,
legal insurance and training expenses.
On average, Agents spend approximately
30–37% of their projected gross income
on business-related expenses.
Furthermore, 8–10% of their projected
gross income must be allocated toward
marketing-related expenses such as
advertising, direct mail, brochure and flyer
development and business cards. The real
estate business is a commission-based
industry. The rewards can be astronomical,
but the time it takes to reap those
rewards may be surprising. And thus you
need to be prepared to go several
months without a check. Generally, new
Realtors should have a minimum of six
months of salary in reserve to get them
through the “building months.”
The quality and tenure of your Manager
is one of the key factors in the long-termgrowth of your business. Real estate
Managers used to view their role as
nothing more than an overseer of
documents and Agent behavior – and
unfortunately, some still do. Today, we
understand that this type of management
is unproductive and provides a work
environment that is not conducive to your
career. Successful Managers must take
on the role of coach and mentor to assist
in your development. The industry has
become so complex that it is virtuallyimpossible for even the most determined
individual to flourish in his or her first 90
days without the guidance of a concerned
and seasoned Manager.
Furthermore, it is imperative to choose a
brokerage, like Coldwell Banker, that
employs experienced, non-competing real
estate professionals as Managers. These
individuals have “been there” and know
what you need to succeed. Regardless of
experience level, our Managers are
well-equipped to offer you expert help
in setting personal goals and staying
on track to achieve them.
Equally as important is how you and your
Manager relate. Trust is key, and you must
feel as though you can discuss all issueswith your Manager. When interviewing
potential Managers, give them certain
scenarios and ask how they would handle
these situations; meet in the office and see
how they interact with peers; and call to
see how they respond to voicemail. Be
sure they are answering your questions
and are building a natural rapport with
you. All of this information will assist you in
finding the best possible fit.
10
NOT UNDERSTANDING
THE ROLE OF
YOUR MANAGER
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Once you enter the business and start to
compete with other Agents for listings and
sales, you will find that today’s consumer
is well-educated and very demanding. As
a new Agent, you have two things to
sell: yourself and your company. The
prospective client must be sold on your
abilities and the power and ability of your
company to expose the property to more
buyers than your competitor.
As a dominant leader throughout
California, Coldwell Banker accounts for
more real estate transactions than any
other company. We are number one
because we treat our Sales Associates as
our first priority. We truly understand that
real estate Agents – not real estate
companies – sell homes. Our company is
also home to some of the top Agents in
the industry, and we are fortunate to
Company image and branding is
built over many years. Coldwell
Banker is a dynamic and innovative
leader in real estate services. With
roots that began in San Francisco in
have more buyers and sellers using our
services than ever before.
Market share is determined by percentage
of sales in a given area. Drive around and
look at which company has the most
homes for sale in your area, or look at
the local business journal to determine
company rankings. The top firms are the
companies that have name recognition
and thus have earned their reputation
with their clients. It only makes sense for
a new Agent to consider joining one of
these “high profile” firms. Be sure that all
companies you interview can demonstrate
their market presence to you.
1906, we enjoy a strong and depend-
able reputation throughout our
California markets – a powerful sym-
bol of our shared commitment
to realizing our clients’ goals.
Many new Realtors will join a real
estate company that lacks a well-
designed, professional and affordable
training program, not realizing that this
training is the foundation of a successful
career. Training, both technical and pro-
fessional, is essential to beginning your
career – would you expect to become
a police officer or doctor without the
proper training?
When you interview with brokerages,
investigate their training program – ask
to see the training manual, the resumés
of the people who will be doing the
actual training and make sure that the
trainers are “in the trenches” on a day-to-
day basis. Also make sure that the
training is well-organized and scheduled
regularly. Without doing so, you may
have the energy and determination to be
successful, but lack the necessary
direction to succeed.
Quality Agents grow their careers through
seminars, panel presentations and lec-
tures – a full complement of resources.
Knowing that tomorrow’s successful real
estate Agents must have enhanced skills
and educational tools today, Coldwell
Banker has made the commitment to
provide the resources to sustain your
continued achievements and prosperity,
even for seasoned Agents. This com-
prehensive source of information
helps Coldwell Banker Agents develop the
knowledge needed to work their confi-
dence in this ever-changing industry.
NOT CHOOSING A
COMPANY WITH ONGOING
TRAINING PROGRAMS
NOT UNDERSTANDING
MARKET SHARE
NOT UNDERSTANDING
YOUR COMPANY’S IMAGE
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The real estate business is one that is
local in nature; however, in today’s world,
the importance of a national and global
market is unequaled.
Coldwell Banker is not only a nationally
known company, it is an internationally
recognized brand. What does this mean
to you as an Agent? As a member of the
Coldwell Banker global network, you will
be connected to more than 127,000
Coldwell Banker Agents in 30 coun-
tries – bringing more buyers and sellers to
NOT INVESTIGATING
COMPANY TECHNOLOGY
According to a 2006 survey done by the
National Association of Realtors, 80% of
homebuyers used the Internet to aid
them in their home search, and these
buyers usually conduct research activi-
ties on more than one site, with
Realtor.com and real estate company
websites as their top resources.
Imagine the detriment to your business
when you associate with a firm that
ignores the fact that technology does
sell homes. While full-service brokerages
make buying or selling a home easier
and more cost-effective, the Internet can
be an important weapon in your market-
ing arsenal. There are nearly one million
real estate associated websites. The key
to Internet leads is exposure and the
company or individual who can drive the
most hits to a site wins.
At Coldwell Banker, our Internet pres-
ence begins with the industry’s most all-
inclusive, state-of-the-art real estate
website – www.CaliforniaMoves.com.
Consumers are able to search all bro-
kers’ listings, research recently sold
homes in their neighborhood, apply for
a home loan, find school test scores,
create a map to drive from their home
to available listings and open houses,
and find places to shop – all from the
convenience of one site. Furthermore,
our CaliforniaMoves.com website, in
addition to ColdwellBanker.com and our
partner websites, Realtor.com,
OpenHouse.com and NYTimes.com, are
your clients’ doors.
In California, we are the number one sales
leader in virtually every major market. In
short, people recognize our name.
Throughout our marketplaces, the major
source of high-end buyers is business-
people from abroad. By recognizing this
trend, we can capitalize on its unique
opportunities. We know from experience
that the Coldwell Banker name positions
us to receive numerous inquiries from this
important source of potential buyers.
enhanced with state-of-the art technolo-
gy that allows our Agents to immediately
receive online inquiries.
This technology, called LeadRouter, takes
an online inquiry and routes it to the
Sales Associate's cell phone within sec-
onds. When the call is answered,
LeadRouter reads the information to the
associate and they are able to respond
to the consumer immediately. Very few
real estate firms have the scope or finan-
cial capability to provide their associates
with revenue producing technology.
All of our offices are wired with DSL
capability and are networked to commu-
nicate with more than 10,000 of our
Agents in Northern and Southern
California. The importance of networking
with successful, high-end Agents is anunparalleled resource that no other com-
petitor can match. Assure that your can-
didate firm offers on-going computer
training programs and will keep you
apprised of the latest technological
trends. Additionally, our modern facilities
include a full-time Technology Help Desk
to assist you in maintaining your busi-
ness with just a toll-free phone call,
along with professional, experienced
Information Technology System
Administrators to assist you with moredifficult computer issues.
NOT CHOOSING A
COMPANY WITH NATION
AND GLOBAL PRESENC
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Years ago, a homebuyer would need
to meet with four or five people to
determine financing, insurance and
available properties. Some companies
eliminated that mentality and have
moved towards a “one-stop shop.”
A firm that offers in-house mortgage
capabilities is seen as an invaluable
time-saving resource. Coldwell
Banker’s in-house mortgage company
enables our Agents to offer their
clients the guaranteed lowest rates on
their loans, plus incredibly fast mort-
gage decisions. With one loan applica-
tion, we are able to perfectly match a
lending source to the needs of our
clients, saving time, money and effort.It’s a hassle-free process that allows
our Agents to provide truly remarkable
service to all their clients – from first-
time buyers to experienced real estate
investors.
transferring employees annually. Since
being named Principal Broker in mid-2001,
our relocation business has increased
over 85%, bringing many qualifiedrelocation leads to our Sales Associates.
be determined by you. However, we
believe it is imperative that new licensees
and their Managers have a mutual
understanding of what is expected
from both. Nothing complicated – a sim-
ple written document that outlines expec-
tations is all it takes.
NOT UNDERSTANDING
THAT CLIENTS PREFER A
ONE -STOP SHOP
Ask about corporate relocation when
you interview. You will probably be sur-
prised at the explanations some bro-
kers give as to why corporate reloca-
tion is not an important piece
of today’s real estate business.
Coldwell Banker is the Principal Broker
for Cartus Relocation, the world’s largestrelocation company, and receives all of
its relocation business. Cartus Relocation
provides relocation services to more than
two-thirds of Fortune 500 corporations,
manages more than 5,000 relocationclients and assists more than 128,000
How many of us would go to work with-
out a mutual understanding of what is
expected by you and your employer?
In the real estate business, you will
be an independent contractor. Your hours
and the amount of time you spend work-
ing will, for the most part,
NOT REALIZING THAT
CORPORATE RELOCATION
IS INVALUABLE
NOT GETTING
IT IN WRITING
For more information or to schedule a private consultation,please contact your local Coldwell Banker Manager.
© 2007 Coldwell Banker Real Estate Corporation. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate Corporation.An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT Incorporated.