What drives your fear of flying solo?

by Jolenta Averill

Realtor, Indie Broker

Author website

In my endless quest to dispel the many myths surrounding what it takes to thrive as an independent broker, I’ve compiled a list of the top ten ways agents deceive themselves into thinking that they can’t – or shouldn’t – set up shop on their own.

1. Creating a “sense of community”

Unless you’re actively recruiting, the last thing you probably need to be doing is hanging out at an office chit-chatting with other agents. Sure there’s endless entertainment and comic relief swapping horror stories and real estate tips and yes, you’re building rapport with other agents that could help a future deal go more smoothly than otherwise. But let’s face it, ultimately you’re just wasting time. If you need to create a sense of community, being active in your local community is a far better, more authentic, alternative. Volunteer for Habitat for Humanity or another cause you have a passion for. Create a true sense of belonging while building a meaningful network of contacts outside of – but related to – real estate. If you want contact with other agents use social networking sites like Twitter, Facebook, LinkedIn, and ActiveRain to interface with agents outside your market. You may even find you feel freer to share with those who aren’t your direct competition and with whom you may wind up being able to refer business to in the future.

2. Access to real estate expertise

Early in my career I did several transactions involving options to sell that only one broker in my company knew how to handle. Since there is an endless number of ways that transactions can evolve, there are many experienced, competent brokers who don’t know or who don’t have all the answers. That’s one of the most attractive things about real estate, in my opinion. Never a dull moment. Granted, I don’t advise anyone to go out on their own until they have a critical mass of transactions under their belt. For me personally I felt that number was about 100 transactions (five years) but your mileage may vary. I am always shocked when people with six months or a year of real estate experience think they’re prepared to go off on their own. Contrary to what you might tell yourself, however, you don’t need a broker to ensure access to expertise and advice should you run into a conundrum. Your local association dues should cover something known as the Legal Hotline.

Consult your association’s legal hotline or call another trusted broker for advice. The most important thing is to recognize when you don’t have the knowledge or expertise to handle something on your own. When you contact the Legal Hotline you’ll speak to an attorney (whoever’s on call) who will be very sharp, professional, and to the point. You’ll save time and energy dealing purely with the facts and wind up getting to the nitty gritty of the matter much more efficiently than waiting for a busy broker to call you back.

In my endless quest to dispel the many myths surrounding what it takes to thrive as an independent broker, I’ve compiled a list of the top ten ways agents deceive themselves into thinking that they can’t -or shouldn’t – set up shop on their own.

3. Access to quality training

There are endless quantities of training available. Frankly, much of it is overrated. Doing real estate is the best way to learn real estate. Talking to your clients and soliciting their feedback is the best way to identify areas for improvement. The more transactions you’re involved in the greater your knowledge, expertise and the breadth of your experience.

Incidentally, Keller Williams uses training as a recruiting tool. Go ahead and attend their training sessions. Honestly, they won’t mind! In fact they’ll love you for it because when the room is filled it makes them look good. You don’t have to join them and they won’t pressure you to do so (okay, admittedly you might have to do a little fessing up so they don’t waste their time trying to recruit you). There are also books, courses, tapes, streaming audio, podcasts, and more (some free, some not) that you can sign up for on an ad hoc basis. If you’re like me you’ll find that you can attend all the courses in the world but if you don’t bother implementing what you learned, it can be a colossal waste of time and money. If you do find the need to collect designations (like I did for awhile before I knew better), focus on implementing a few tried & true techniques, then add incrementally. Most people don’t use a fraction of what they learn in courses. Remember, the real estate training sector is a huge money-making industry. You’ll get a certain amount of valuable training just fulfilling the semi-annual requirements (which have recently increased) required to maintain your license.

4. Access to referrals

Is a steady stream of referrals keeping you from going out on your own? I doubt it! Whether your broker is giving you lots of referrals or not, practice generating all your own business for a few years. I did this for 4.5 of my first five years before I was finally able to admit to myself that the few referrals I was getting weren’t really worth taking when I could get plenty of business on my own. Don’t accept referrals unless you are absolutely desperate and have tried everything else first.  Ultimately if you can’t generate your own business and have to rely on your broker, you may not be cut out for real estate sales. Don’t rely on floor calls or walk-ins either because you won’t have them when you’re on your own working out of a very small office or your home. Learn to work independently and generate the bulk of your own business! You’ll net more and be better prepared to go off on your own.

5. Access to a brick & mortar presence

Real estate offices are becoming increasingly mobile. Realtors often work from home or in the field and go to the office only when in need of meeting spaces. Admittedly, when I was considering going off on my own, the prospect of not having an office to invite clients to really kind of freaked me out. But I quickly realized that I could check with my local libraries, title companies, and banks about using their offices instead and it turned out they were all more than happy to let use their conference rooms anytime I wanted. One lender even complained the other day that I wasn’t using their office enough! Do realize that they’re hoping you’ll send some business their way at some point but that’s likely to happen anyway and to be expected. After all, what virtual business partner wouldn’t want that? The bottom line is you may think you need a brick and mortar presence but you really don’t. The business of real estate takes place at showings, listing appointments (homes), and closing tables. Maintaining an office drives up costs, results in duplicate files, extra trips to your “other office”, etc. Also, consider asking your clients (once you’ve got an established relationship) to drop by your house. You’ll keep your home and home office more organized while strengthening the bond with your clients. Your clients may even get decorating ideas! You’ll also save time and money running around. And best of all, no more earnest money getting lost in the mail!

6. Access to technology

I’m lucky that I have a technology background and acknowledge that I may be more the exception than the rule. It is doubly sad, therefore, that many brokers supply technology that doesn’t meet even the most basic requirements of technology-dependent agents. For example, the webpage you’re assigned when you work for a broker is typically nothing more than brochureware lacking any real functionality. You’d be surprised how easy it probably is to outrank your broker’s site with a simple, well-designed WordPress blog. Also, most applications are web-based now so you shouldn’t have to pay high monthly technology fees for outdated, poorly designed software. For office applications use Google’s suite of free web-based applications. For hardware support call the Geek Squad or buy an extended warranty. There’s built-in support for Paragon that comes with your MLS dues. All you should really need is a fast connection to the Internet and a good data plan on your cell phone. For a virtual receptionist try using a service like callruby.com. They’re savvy, professional, and cost-effective. And there are loads of licensed virtual assistants who can help process your transactions. Bottom line: duplicate office setups are costly and cause agents to be tethered to an office away from home that zaps productivity. That makes them less flexible and less able to service buyers and sellers who need things on short notice. Get organized and mobile so you can be  relied upon for a quick turnaround when clients have questions, want to list their home on short notice, or want to write an offer.

7. Ability to leverage a credible brand

Virtually any brand, so long as it’s unique and distinguishable from other brands, is differentiating and therefore able to capture the attention of the marketplace. Moreover, consumers are attracted more and more to idea of “buying local” and supporting local businesses (and therefore their local economies) rather than supporting large chains. I recently landed a listing because the client caught sight of my yard sign and noticed it was new, different, and locally-owned and operated. She didn’t want the sign in her yard to look like all the other signs in the area. She wanted her house to stand out and felt my sign would help her accomplish that. She interviewed two competing firms but felt that my pricing was more realistic, my staging advice more comprehensive, my branding more remarkable, and my roots in the local community more deep and committed than the competition. Operating under a big box “name brand” broker promotes that broker’s brand and does nothing to distinguish you or your services. Try asking your clients if they care which broker you work for. I guarantee the vast majority, if not all, do not care one bit. People hire a specific agent because of the rapport they build and how they convey they will do business with them, not because they hang their license with a certain broker.

8. Avoiding expensive start-up costs

You can start your own brokerage company for less than the commission you’d give your broker on one $100K sale. That’s right. For well under $1,500 you can have everything from business cards and a website to custom yard signs and office equipment. You can spend a lot more than that but in my opinion that is a choice, not a necessity. I do recommend that you have a few month’s living expenses saved, however, in case you have a dry period (this is true even if working under another broker). The last thing you want to do is make a client feel pressured to buy so you can get paid!

9. Avoiding expensive operating costs

My operating costs have gone way down since going solo. I no longer have to give my commissions away to my broker, I no longer have to pay desk fees, technology fees, or transaction fees, it’s cheaper to print color copies at home, it’s cheaper to order my own sign installations directly, business cards are less expensive (another “profit center” eliminated), and I no longer spend money on gas to commute. There are loads of other operating costs that have been eliminated too such as being hit up for money for birthday lunches, gifts, office treats, and more!

10. Fear of agents avoiding my listings

Buyers are attracted to yard signs, open houses, and full-featured websites with MLS search capabilities. They find listings online and ask agents to show them properties. If an agent makes excuses not to show certain listings, they run the risk of losing that buyer.  Cooperating agents cannot realistically get away with not showing competitors’ listings that their clients are asking to see. No one is dumb enough to screw themselves out of a commission in an attempt to somehow “punish” an agent who has gone solo. This is a preposterous supposition with no basis in reality. Since going solo I have more listings than I’ve ever had in my career and everyone under the sun, from every conceivable brokerage, has shown my listings and brought me offers. It’s just silly to think that an agent would discriminate against another agent because they work for a competing broker.

Can you think of any other excuses – or outright lies – that you keep telling yourself to drive your fear of flying solo? Comment here or direct message me at @jolenta on Twitter. I’d love to hear what you think!