Interview A Number Of Agents And Find A Real" Pro"

I cannot tell you how many times over my 15 years in the mortgage industry when I ask potential clients how they picked their agent, I hear, "Oh, my brother- in- law is an agent" .

We all know someone in our circle who thinks making a bundle selling real estate is right around the corner but let me assure you, for 999% of them, it is not. Yikes! The truth is the average earnings for an agent run about$ 35, 000 per year. The lowest 10 percent earned less than$ 17, 600, and the highest 10 percent earned more than$ 92, 77" Let us break that down: The average home price where I live in the Denver area is$ 240, 00Multiply that by half of a normal commission or a typical 8% for the buyer's agent. According to the Bureau of Labor Statistics: "The median annual earnings of salaried real estate sales agents, were, including commissions$ 35, 670 in May 200The middle 50 percent earned between$ 23, 500 and$ 58, 110 a year. That's$ 6720 per closed deal for the buyer's agent. Ouch!

Now let's divide$ 35, 670 by the average commission to discover the number of successful transactions the average agent completes per year. $35, 670/ $6, 720= 3 deals per year. Five closed deals per year hardly make one a" pro" . My first month as a full- time, commission- only loan officer, I completed 23 closed loan transactions. In my mind, it makes them a rookie and at that pace, they' d stay a rookie for over 20 years. I was so green then I didn' t know what I didn' t know. but I had the benefit of multiple transactions per month as my teacher. Now after 15 years and thousands of transactions, I can finally say I' ve earned the title of" pro" .

Still, I made mistake after mistake, learning something new from each deal. Can a real estate agent doing 5 deals a year say that? So, when it's time to find a real estate agent, you owe it to yourself and your family to ignore the fact you have a cousin with a license. I think not. Ignore referrals from friends and family altogether. Don' t be lazy.

Don' t feel obligated to use these sources. Do your own research. Remember, this is the largest single financial transaction of your life. Interview a number of agents and find a real" pro" . Give it the respect it deserves. I can hear you now, "Okay, how do I, Rob find the most experienced professional? " Good question and one I answer in my free report, "How To Pick A Real Estate Agent" .

Hire the most experienced professional you can lay your hands on! I will say, as you' ve probably guessed, experience counts. The agent's production is going to give you the best indication of how committed they are to the profession. The best way to determine experience is by the number of transactions an agent is handling monthly or yearly. Is the agent a part- timer who's just dabbling in real estate sales- or is the agent a full- time, professional whose livelihood, productive depends on their ability to repeatedly close real estate transactions? I' m supposed to be advising you on how NOT to pick a real estate agent.

But, I digress. So let's recap. Don' t use a family friend. How not to pick a real estate agent: Don' t use a family member. Don' t use one of your friends. Don' t use a referral from your friends. Don' t use a referral from a family member.

I hope you actually use this advice on your next house hunt. I know it sounds a little dogmatic, but after 15 years of dealing with countless rookie agents, I know of what I speak. If you don' t, you' ll pay the price. Happy Hunting!