The Cold, Hard Truth Behind the 90/10 Rule of Real Estate Industry

Managing properties, gaining commissions, and meeting a bunch of clients with different needs are some of the activities of a real estate agent. The hefty paycheck is motivating factor despite running around the city during the open house of two properties. Thus, a lot of people want to work in the industry as the job seems natural.

It is at first glance. Once can become an agent as long as he or she can sell one 2br condo for rent Bonifacio Global City (BGC). If he or she influences a startup to go for a serviced office Makati CBD, then he or she does a swell job of using their marketing tactics. As the industry, more people look forward to making a profession out of it. Thus, the 90/10 rule exists.

Before the regulations existed, anyone who finished high school or passed Grade 12 can become an agent. At present, one study the curriculum and obtain a license to be a realtor. Since most don't want to give the time and effort to finish the course, only 10 percent of the total number of real estate agents are doing 90 percent of the work.

It's evident that a lot of agents fail in their profession. Below are some of the hard truths in permeating the real estate industry.

• The real estate curriculum lacks the scope of marketing and deal management. Some examples of topics that brokers must know and understand are:

1. Psychology of salesmanship
2. Art of selling and crafting deals
3. Networking
4. Creating listings
5. Presenting listings in a professional manner
6. Overcoming objections from buyers and sellers
7. Working with financial institutions
8. Dealing with appraisers and home inspectors
9. Communicating with utility companies and government agencies
10. Handling permits

Agents can learn these skills along the way, but they will become highly efficient in their tasks if they knew these things beforehand. They are likely to proceed and be motivated to pursue their individual goals if they know how to navigate the waters. Therefore, developers and real estate companies must provide mentorship, trainings, and seminars in their respective offices to minimize the agent failure and turnover rate.

• Realtors, especially beginners, undermine their abilities. Setting a timeframe for lead generation is acceptable. A 30 to 60-day real estate success may be correct for some and may not be for others. Lots of agents quit when they don't generate leads. They berate themselves and the market when they don't tick anything off their list. They leave early in the game without persevering and lose their confidence. When that happens, they become unlikely to take risks. They won't explore new strategies or try a new path yielding high returns.

• Real estate entrepreneurs neglect the power of advertising. Developers and housing realtors forget they are part of a business. A business needs investments to grow. Mixing traditional advertising and digital marketing increases the company or brand's outreach and, in turn, expands their market.

• Being greedy with opportunities destroys a realtor's career path. Real estate trades is and always was a job. Depending on the company's salary scheme, it is a reliable source of income. A lot of agents think that realty management doesn't qualify as a job, so they look for additional opportunities. Looking elsewhere places property selling on the sidelines and disrupts the focus on expanding the business.

Consulting a licensed yet non-practicing real estate agent is no different from getting surgery from licensed, non-practicing doctor. When in the game, vision becomes limited. One can only focus on what's in front. Business owners focus on income and realtors to their commissions.

No one wants to do the dirty work that's why the 90/10 rule exists.