For every 10 people who become real estate agents, nine will earn below the poverty line in the first year and will never earn a living wage from selling real estate, says one of Australia's leading real estate trainers.
Adelaide-based national trainer David Ferrier, managing director of Resultzcorp, says lack of training and support has many people doomed to failure from the outset – and they often end up financially and emotionally crippled.
"It is common knowledge in the industry that after three years only one in ten will survive,” Mr Ferrier says.
“You either know someone who has failed in real estate or you’ve failed yourself and there’s a clear and blatantly obvious reason for that. The real estate industry appears incompetent at training its real estate sales people to sell.”
Mr Ferrier says that while they should be getting all the support they need from the relevant industry bodies, new real estate agents are failing in plague proportions to make even minimum wage in this evolving market.
"The results can be catastrophic, leading to bankruptcy, marriage breakdowns, low self-esteem, depression and even alcoholism."
As the managing director of Resultzcorp, which has trained thousands of real estate people, Mr Ferrier has seen too many passionate would-be agents spat out the other end in financial and even personal ruin. He cites the reason as a lack of adequate training and preparation.
“I’ve seen too many people go into real estate sales with enormous enthusiasm and lost thousands of dollars striving for the dream of being their own boss,” he says. “Many have had to take a second mortgage to make ends meet, others have taken loans they couldn’t afford, some have even lost everything.
“The facts are simple and the remedy is just as simple but the real estate industry doesn’t seem to care about the very people it should be supporting. Without a serious direct marketing background in door-to-door sales or expert telemarketing skills, how do you hope to survive in the cut-throat world of real estate sales? Well, proper training might help, but it’s sadly lacking.”
Mr Ferrier says real estate sales people with no sales training can’t hope to survive. They can get their real estate licence but it won’t keep them afloat in a sea of experienced professionals and increasingly rigid vendors who know the market and are prepared to drive a hard bargain. Throw in the fact that average real estate wages have fallen by up to 40 per cent since the property boom and agents need all the help they can get.
“Imagine yourself way out to sea in a row boat with no oars and you’re expected to find shore,” he adds. “That’s what’s expected from real estate agents – people like you and me – and they’re drowning.”
Further information: David Ferrier at Resultzcorp on 0450 412 355.