The number of real estate agents is increasing, creating a challenging environment for agents to survive, especially as inflation rises. Imagine this: in today’s economy, you need to earn at least $60,000 a year to maintain a decent living. Achieving this requires a gross income of approximately $250,000, which means closing at least 20 deals a year by selling homes priced at $500,000 each. This calculation accounts for all your expenses. To reach 20 deals annually, you should aim to close at least two sales per month.
The numbers may seem straightforward, but let’s take a closer look. In Nova Scotia, the average annual home sales total around 10,000, with over 2,000 agents in the market. If we do the math, that averages out to about five homes for each agent, which is insufficient for making a sustainable living. If you sell homes, taking a generous assumption of a $500,000 sale price and a commission of $12,000, after deducting brokerage fees, you might end up with roughly $10,000. If you manage to sell five homes in a year, that’s only $50,000 in income. After subtracting your license fees, marketing costs, taxes, and more, it’s clear that this amount is not enough to survive.
According to Gary Keller in his book “The Millionaire Real Estate Agent,” a healthy realtor should aim to take home at least 12% of their income. In this case, if your income is $50,000, you would only have $6,000 left for living expenses.
This situation is alarming! It’s essential for real estate agents to take action and equip themselves to face these challenges. Success requires more than just promoting yourself on social media with a realtor logo; it demands being prepared and strategic as we move into 2025.
Here are the five strategies I believe will significantly help advance your career in real estate. Our team implemented these principles, which enabled us to achieve six figures every year. I hope these insights assist you as well.
Step # 1. Know your target number
The first step is to determine your target income. If you’re aiming for a comfortable lifestyle that allows you to enjoy a better home, high-quality food, and the ability to help others, you will need to earn at least $72,000 annually, including taxes.
To reach this goal, you would need to complete approximately 25 to 30 sales of homes valued at a minimum of $500,000 each. If you want to aim for 30 sales in a year, that translates to about 3 deals each month.
It’s helpful to write this target number down and display it prominently so you can see it every day. Knowing your target income makes it easier to identify your destination and stay focused, protecting you from distractions.
Step # 2. Know your target audience
After mentioning the numbers, your mind is probably racing with thoughts about how to convert these leads into sales. This is a common challenge that many agents face. We often concentrate solely on numbers, forgetting that, as agents, we also have our dignity to uphold. When we focus exclusively on numbers, we risk coming across as desperate, which can lead us to become viewed as commodities rather than valuable assets in the real estate market.
Here’s my advice: Choose your audience wisely. If you look at real estate closely, you’ll see that client categories go beyond just first-time homebuyers, residential sellers, or luxury clients. I follow the rule of Dan Lok, which identifies four types of clients: cheap clients, difficult clients, sophisticated clients, and high-ticket clients.
It’s vital to understand these types of clients. Take time for self-reflection and do your research before stepping out to offer your services. The unique aspect of being a real estate agent is that the product is “you.” So, ask yourself: If you are the product, what kind of product are you, and which group of people are you willing to serve?
I will write more about these different audiences in future blog posts, delving deeper to help us understand our target audience better. We emphasize the importance of knowing your target audience as a key to your success as a real estate agent this year because it can help you stay focused, engaged, and motivated. When you know who you want to serve, prospecting becomes much easier.
Step # 3. Count the cost
Writing down your target numbers is straightforward, and selecting the audience you want to serve is relatively simple. However, the third step requires more effort: counting the cost.
As real estate agents, it goes beyond just memorizing the rules and regulations, understanding zoning, or filling out forms. It’s really about you as a realtor. Ask yourself how much you are willing to invest to achieve your target numbers. How much rejection are you prepared to face while prospecting?
Many people who join the real estate industry hold a somewhat unrealistic dream. They believe that merely possessing a license is enough to succeed. Unfortunately, homeowners and buyers are often better informed than we might expect. They conduct their own research and have a clear vision of what they want. When they contact you, they usually have a complete picture in their minds and expect you to help realize their dreams. If you fail to meet those expectations, they may choose to fire you and look for someone else.
Here’s the lesson we’ve learned: once we set our target numbers and identified our desired market, we gained focus. We also prepared financially to achieve our goals, which includes covering expenses for marketing, technology, supplies, and knowledge.
By counting the costs associated with reaching our targets, we developed resilience. Whenever we encounter loss, rejection, or other challenges, we recognize that these setbacks are simply part of the overall cost of doing business. So, be prepared—count the cost!
Step # 4. Equipped Yourself spiritually, mentally and physically
We are three personas in one, yet we are not separate. We consist of spirit, which represents the real you—your heart. We also have a soul, which encompasses our mental and emotional states, and lastly, we have our physical body, the container of our spirit, made of flesh, which returns to the ground when we die.
Why am I sharing this? As real estate agents, we must prepare ourselves for the field where we choose to engage in our work. Helping homeowners goes beyond merely assisting them in buying or selling a home; it truly becomes part of their life journey.
Equipping yourself involves more than just eating healthy, looking good, or appearing wealthy. It means developing wisdom. When I say we should equip ourselves spiritually, I mean seeking the truth, and I strongly recommend reading the Bible. When I refer to mental preparation, I mean reading business books to grow and learn. It’s essential to stop engaging in unnecessary activities like watching excessive drama or spending too much time on social media. Physically, we should be disciplined about eating healthy foods and exercising regularly.
It’s easy to be swayed by the allure of money and forget our moral responsibilities. As humans, we are expected to exhibit compassion, empathy, and integrity. In short, we must love humanity while maintaining respect and dignity.
As real estate agents, our role involves connecting with people. Some agents become counselors, some serve as financial advisors, others act as lawyers, and some may even take on roles like janitors. Since we deal with individuals, there is a tendency to think we must solve all their problems to keep them as clients.
I’m not suggesting we shouldn’t help them in any way they need; rather, my point is that you should equip yourself to understand your worth. If you are well-prepared spiritually, mentally, and physically, you will possess a different level of confidence that you can convey while also establishing boundaries that clients will recognize and respect.
Trust me, when you begin to stand tall and know your self-worth, you will attract more business. People are drawn to those who understand who they are, and you will gain that understanding by being equipped spiritually, mentally, and physically.
Step # 5. Build your faith
No matter what type of business you have, you are not exempt from facing trials. The moment you decide to pursue success, challenges will arise, sometimes even from those closest to you. For example, it can be painful to have a friend choose another agent to sell their home.
Life is full of adventures, and real estate agents face two main challenges: the market and rejection. These are the significant hurdles that realtors must overcome. We’ve been through them, but we never lose hope.
1 Thessalonians 5:18 says, “Give thanks in all circumstances; for this is God’s will for you in Christ Jesus.” That is our secret. While I know this field can be full of challenges, I must remain tough and uphold my morals and values. I sometimes struggle with this, but here’s what we do: we raise our hands and give thanks to God, no matter the circumstances.
As real estate agents, it’s easy to feel discouraged, but you must never give up. You are not alone. God is waiting for you to reach out to Him—give it a try. Your faith will empower you to move forward with the strength of a lion.
Conclusion:
In conclusion, let 2025 be a year of courage, hope, and success. By applying these five key elements of the roadmap to success, you can expect a different outcome by the end of the year. Keep in mind that achieving your goals requires investment, and it’s up to you to decide if you’re willing to make that commitment
