Barber Shop Talk (Real Estate Is Easy Money…?)
I wanted to touch on something which has been getting under my skin for a while… Here we go.
Just the other day I was sitting in my Barber Shop waiting for a cut (Hollow Ground on Bloor West, amazing barbers by the way) and my ear comes across “I want to get into real estate, its such easy money” from someone chatting away in the corner.
I literally cringe when I hear this.. and I hear it more than less. Sure, I’ll be the first to admit that realtor commissions, 2.5% of the average sale price of a home ($800,000 for sake of a rounded number) can equate to a healthy payout.. That being said unless your uncle/aunt or grandparents are giving you their home to sell, who is going to provide you with their most valuable asset to sell, if you’re not 100% in? Do you think that random people are going to trust you with their $1,000,000 investment without knowing that you are a well qualified, professional and passionate real estate agent?? (Not a chance)
It makes sense to get your license to sell your Aunt Sharon’s house so you can get that big commission cheque, why not! But then what…. Where’s the next bone come from? Did you know that approx. 20% of The Toronto Real Estate Boards practising agents did 0 (ZERO) deals last year? With the fee’s, insurances, marketing costs, client gifts, car, phone, desk fee’s etc…. How do you expect to make a sustainable living with 45,000 realtors are scratching and fighting for business?
Sure, the property itself has an objective value, but my services as a realtor have a subjective value.. One which I have to justify to my clients and sphere of influence if I want to be able to command a living for my services. If I’m sitting at an office desk in the HR department of a big company all day, only to be able to crack my laptop open at lunch to send an email or two before my I have to slam it closed so my boss doesn’t catch me.. How can I classify myself as a Realtor? You just cant…
There are so many moving parts to a city’s real estate market (Toronto in particular) You must have a firm understanding so many different aspects.
- New developments
- Demographics of different neighbourhoods
- Public Transit
- Builders and builder quality
- Condo corporations strengths and weaknesses
- City planning
- Up and coming neighbourhoods
- Relationships within the industry
- Property Legal Matters
- Mechanical and operational elements to a home
- Market Specific Sale Information
- Price per sq/ft
- Building Costs
The list goes on and on…
Folks, real estate is not easy money. Sure, if you get a listing or two from family members, it can seem that way but everything which shines isn’t gold. If you think you’re going to get into real estate as a side gig and work from home and make six figures a year… You’re sadly mistaken.
You eat what you kill, the market doesn’t care if you’re unable to pay your bills this month. Clients/buyers/seller/investors are going to work with the most passionate, driven, intelligent agents they can find and you cannot be one of those people by giving it a part-time effort.
Eat, breathe, sleep real estate and you have a chance… 45,000 realtors out there folks! The stakes are high.
Ok, ok… Im done my rant now :)!