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By Anonymous |
Karen Buck strode confidently up
the sidewalk to the front door of the attractive two
storey home. This time, she knew she had a winner.
Following behind her were the prospective buyers-a couple
in their early 20's accompanied by four friends, all
talking and laughing excitedly. They reached the porch
and waited in hushed anticipation as Karen produced the
key and inserted it in the lock. The door was about to
open on the house of their dreams.
"Here it is," announced Karen with a flourish as she turned the key and pressed down on the brass handle. Nothing happened. Embarrassed, she tried again and again, but the door simply wouldn't budge. The couple began to squirm and someone snickered. It was not her finest moment.
"It took six of us to finally pry open the door," she laughs, adding that once she got her clients inside, selling them the house was a snap. This particular method of breaking into real estate isn't recommended, but as a former phys- ed teacher, Karen was at least equal to the task.
Four years ago, the petite dark haired Torontonian abandoned the rigours of a junior high school gym for the dubious joys of house renovation. She and her accountant husband, both raw novices, began gutting and rebuilding their newly acquired home, a task which she admits "nearly drove us out of our minds". But they managed to avoid major mistakes ("we didn't pull down any supporting walls") and their confidence buoyed, decided to buy and rent other houses. Since Karen was always on the lookout for investment properties, a career in real estate seemed ideal.
Full of enthusiasm, she enrolled in George Brown College's five week real estate course. During the first week, students were introduced to the basics of house construction, property definitions, salesmanship and law, while the next two weeks were devoted to an in-depth study of these topics. The final segment covered more practical concerns-how to write up an offer and evaluate a house. "I found it interesting but a bit frustrating because we only touched the surface," comments Karen, who graduated with a near-perfect 97%.
Since real estate brokers have differing pay structures, Karen investigated a large and a small company before joining the giant Canada Permanent last November. "Real estate agents work strictly on commission," she says, explaining that at Canada Permanent, it's split 50/50 with the broker until an agent earns $10,000, at which point the broker's share is reduced to 30%.
As a new employee, she took a one week orientation course to familiarize her with company policy and teach her how to drum up business, organize her time and set goals. New agents practiced their sales techniques on one another and were introduced to the art of telephone canvassing-an important method of finding clients.
Each agent had to call people selling their homes privately and try to set up an appointment. When her first contact agreed to see her, Karen was so shocked, she had to ask the instructor what to do. "Measure up his house," she was told.
"It seemed a bit brazen," she says, "but I went in, measured the rooms, and took down all the details." The main valuable lesson-in real estate, you can't afford to be bashful.
The new recruits also went out knocking on doors, asking homeowners if they were interested in selling. And although most people were courteous, she recalls a few strained conversations through thermopane windows and half opened doors.
Karen started off concentrating on some 500 homes within a five block square area of central Toronto. She walked and drove through the streets, taking pictures of nearby facilities, and to establish contacts, called area residents and offered free home evaluations. "It got me into their homes talking real estate, and it was terrific practice," she says.
To arrive at a fair market price for a home involves a lot more than just measuring rooms and noting the mortgage details. "You have to know which houses in that area sold, what they were like, and how they compare with the house you're evaluating," she explains, adding that she researches this information through office files and the municipal tax department.
But like many, Karen got off to a slow start-it was a month and a half before she sold her first house, but since then, she's racked up 13 sales-7 of them in just over a month.
"The name of the game is to get listings," she explains. "When you list a home, you have a contract with the vendor (person selling) and if the house sells, you're guaranteed your commission." Listings are of two types: multiple and exclusive. A multiple listing agreement (MLS) means that the house in question can be shown and sold by any member of the local real estate board, whereas an exclusive listing is exclusive to the real estate broker who obtained it-only their agents can sell the property. The commission on an MLS sale is 6%, and on an exclusive, 5%, split 50/50 between the listing broker and the selling broker.
Working with purchasers, claims Karen, is chancier. "You may spend weeks with them, only to have them see an ad, call another agent and buy from him. But it's a risky business either way-even if you get a listing, it may not sell."
Building up a good rapport with clients is essential, and the secret of selling, she claims, is to match up purchasers with houses-"then the house sells itself. You have to find out what the purchaser can afford, zero in on an area, then zero in on the kind of house he likes. I try to build up the positive aspects and suggest ways of overcoming the negative." But, she stresses, if you want a repeat clientele, you have to be honest.
Karen's work day begins at 9:30, and for the next two hours, she goes through new listings, files them in a binder, and inspects houses, contacting clients if a property looks interesting. From 2 to 3:30, she's on the phone making new contacts or out knocking on doors. The evening is reserved for showing houses or visiting those interested in selling, and most Saturday and Sunday afternoons are spent with clients. "Basically, it's a night job," she explains. "Your hours are opposite to the majority of people, and that can create havoc with your home life." During the summer months, Karen often put in 12 hour days seven days a week-a grueling schedule, but one which helped boost her earnings over the $12,000 mark.
Patience and perseverance, she believes, are a must for any agent. Once, she recalls, she telephoned a man about selling his house and was thrilled when he agreed to see her that very morning. "I hopped in my car, had a look at the outside of the house then rushed back to the office to do research." At the appointed hour, armed with all the relevant data, she knocked at his door. There was no answer. Two hours later, she finally reached him by phone and asked if he was still interested in selling. "Yes," came the reply. "I've just listed my house with someone else."
Along with the frustration and uncertainty, the financial risk is fairly high. "You never know when you'll get your next pay cheque," says Karen. "But l like working for myself, and setting my own goals and hours.
©1999 TG Magazine/Le Magazine TG
tgmag@tgmag.ca