The real estate profession is not for the faint-hearted. Being a market-driven profession that is prone to fluctuating marketing forces fueled by dynamics of supply and demand, income predictability in the sector is highly uncertain.
Consequently, real estate agents find themselves having to contend with a market that is potentially lucrative but, ironically, one whose returns are at the mercy of, sometimes, speculative forces that have no bearing on actual property values.
Among the challenges faced by real estate agents are:
1. Unpredictable Market
The real estate sector is highly unpredictable. It is a buyers market where demand determines the market prices of various property offerings. It also relies heavily on a robust economy, and any instability in the local and international markets could adversely affect returns. Real estate agents find themselves at the mercy of these forces of demand and supply; and while a robust economy portends good returns for them, a sluggish marketplace is their worst nightmare come true.
2. Commission Lockdown
Besides the strenuous marketing effort it takes to close a sale, once a real estate agent brings a buyer on board, the agony of waiting for their commission to be paid begins. Your success as a real estate agent depends on how fast you can turn properties around. A robust real estate market ensures a continuous flow of commission for you. However, a sluggish economy leaves you at the mercy of waiting for a commission for days, or even months. It is during such trying times that you need a real estate commission advance to maintain a steady cash flow.
3. Inability to Use Social Media Effectively
The proliferation of social media platforms has meant that real estate agents need to tweak their marketing campaigns to reflect this reality. Today’s real estate catchment is on various social media platforms. Real estate agents who are not social media savvy are increasingly seeing their commissions dwindle. To keep tabs with potential real estate clients, agents who are not social media enlightened should seek training in this vital area to keep their commissions growing.
4. Unreasonably High Prices Set by Property Sellers
One of the challenges you face as a real estate agent is to convince a seller that the lofty sale price they insist on does not reflect the dynamics in the marketplace. It is hard to convince a seller that their quoted price is way above what the market is asking for. Potential sales can slip through your fingers simply because a property was overpriced. It is always good to show a seller who insists on an unreasonable sale price the other comparative listings in the area to convince them to adjust their prices accordingly.
5. Technological Advancements
The internet has today brought changes in marketing real estate that never existed before. The prevalent use of smartphones, tablets and other gizmos that act as the new marketing infrastructure means that you should upgrade your skills and expertise in applying modern technology to your marketing strategies. A website is a must-have for any serious real estate agent, and so is a strong social media presence.
These platforms need to be responsive and mobile/tablet ready to maximize on access and usage. The industry is also awash with software and applications that target the management of real estate offerings. As a real estate agent, you need training on cutting-edge tools and techniques in order to take advantage of the dizzying technological advances.
Real estate agents face many challenges. Besides technological advances that continue to redefine where potential buyers and sellers frequent, the unpredictability of the sector can make breaking through in this industry a herculean task. However, none of these challenges has as much negative impact as a commission lockdown. Fortunately, there are establishments that provide real estate agents with commission advances to help them maintain a healthy cash flow.
