Overcoming Real Estate Sales Challenges

Real Estate Sales Challenges

As with any profession, there are challenges and difficulties you need to overcome to be successful. Real estate sales is no different. There are many prevailing real estate sales challenges today. But it shouldn’t hinder you from having a great sales career in real estate. What you need to do is identify the challenges. And come up with ways to change your thinking to overcome them. Let’s have a look at what you might find challenging.

Real estate sales challenges

Challenges in real estate selling are very real. Unfortunately, many real estate agents fail because of their inability to overcome these challenges. The ones who succeed and earn a significant income in real estate sales do so because of the way they adapt to these challenges.

There’s too much competition

Bad news: there will always be too much competition. In any lucrative industry, many people enter the field to have a chance of earning a lucrative income. Real estate is one of those industries. There will always be a lot of competition. What you need to do is find a way to set yourself apart from everybody else. It starts with mindset and motivation. But it also requires you to think about your unique selling point and value proposition. This is one of many real estate sales challenges that is difficult at first, but easier to overcome as you spend time researching your competition and adding value to what you have to offer.

It’s tough to get buyers approved for financing

The economy is making it tougher and tougher to borrow money. And rightfully so. The real estate collapse in recent years in some markets have changed the way financial institutions do business. And how the government protects the general public. If you’re finding it difficult to work with a buyer because they can’t get approved, you’ve got to prospect more. Find other buyers who are more qualified to work with. You can’t say that nobody is able to buy a home these days. You’re just not finding the right ones to work with.

Commission is getting lower

There is a lot more competition now than before. Some competitors are entering the marketplace by cutting commissions or offering flat fee service plans. You can either compete on price, or offer better value. There are plenty of choices when it comes to which real estate agent a consumer wants to work with. What you have to decide is which end of the spectrum do you belong. The low fee, basic service, or high end, full service? Will you offer services based on volume to get lots of listings at lower commission, or will you focus on giving a small number of clients a high level of attention and service? Commission is just one of many factors. And you’ll find that properly presenting your value proposition will help consumers understand why you’re a better choice than someone else.

For sale by owner companies are taking away business

This is not entirely true. You may be worried that FSBO services will eat into your chances of getting listings. The truth is, consumers want professionals working on their side. The number of listings generated by FSBO is still a smaller percentage than sellers who choose a real estate professional. What you must do to compete with FSBO is understand what the main objection is of a homeowner not willing to list with you. If you can address it, you can get the business. Chances are, it’ll be a commission based objective. The homeowner simply doesn’t see the value in listing with a real estate professional. If you can explain why you deserve the commission you do, you can overcome the real estate sales challenges of dealing with FSBO competitors.

Costs of getting into the business are getting higher

Office fees. Brokerage splits. Licensing. Marketing, Car payments. Maintenance. Insurance. There are a lot of things to pay for in real estate. But hey, it is a business. And a business has costs. The problem isn’t that the costs are getting higher. The challenge is to make more sales and commissions so you can profit while being able to manage your costs of being in the real estate business.

You can do it

Sounds cliche, yes. But you can overcome these real estate sales challenges and earn a six figure income in real estate sales. Have a positive mindset. Educate yourself on what’s happening in the marketplace. Find ways to address and overcome the challenges so you can have a successful and rewarding career in real estate sales.

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