The Best and Worst Advice I Received Starting in Real Estate
When I entered real estate 12 years ago after 25 years on Wall Street, I received plenty of advice. Some of it proved invaluable. Some of it could have derailed my entire career if I'd followed it.
The Best Advice: Brand Yourself Around Trust
The most valuable guidance I received was about branding myself in a specific way. Not just putting my name out there, but figuring out what I wanted to stand for. For me, that word became "trust."
Real estate agents consistently rank near the bottom in public trust surveys - somewhere around used car salesmen territory. That reputation bothered me, partly because I didn't want to be associated with it, and partly because I knew I could operate differently.
Trust means several things in our business. It means clients can trust our competence and expertise. It means they can trust us to communicate promptly - answering texts immediately and taking calls at 10 PM when needed. It means they can trust us to go the extra mile, whether that's checking on their house during a storm or meeting contractors at 8:30 AM.
But most importantly, it means they can trust us not to play games that could cost them serious money. There are numerous ways unethical agents can manipulate situations to benefit themselves at clients' expense. I make a point of explaining some of these tactics in listing presentations, so sellers understand why choosing the right representation matters.
The Worst Advice: Just Be Patient
The advice that could have killed my career? "Just be patient. It takes five to six years before you really start getting traction in this business."
If I'd followed that guidance, I probably would have sat back, used the modest marketing budget our office provided, and waited for business to come to me. Many agents didn't even use the free $200 monthly marketing allowance we received. I was amazed by that.
Instead, I ignored the patience advice completely. My first year, I made about $50,000 and spent $45,000 - with roughly $10,000 on legitimate business expenses and $35,000 on marketing. The second year, I made around $100,000 and spent $50,000.
My wife calculated I'd worked two years for $55,000 total - about $27,500 per year. She said it seemed like a lot of work for not much money. I told her I was like Amazon: all revenue, no profits. I was building a base.
Why I Went All-In on Marketing
I advertised everywhere. Church bulletin, local diner, driving range, recreation fields for kids' sports - anywhere people in Madison might see my name. For years, I thought the church bulletin was a complete waste of money. Then one Monday afternoon, I got a call from someone selling their $2.5 million home. When I asked why he chose us, he mentioned hearing good things from other parents at his kids' school, then seeing my name in the church bulletin. That single listing, plus a referral that followed, represented about $100,000 in commission before splits.
The point isn't that every marketing dollar pays off immediately. It's that you never know which exposure will be the one that matters. I branded my own open house signs when other agents thought it was too much. I put out a dozen signs stretching from Main Street to the next town. Friends would call saying they'd been driving for three miles following my signs. Perfect - that's exactly what I wanted.
The Real Timeline
Could some people succeed by being patient and letting business develop slowly over five or six years? Sure. But I wasn't wired that way. Wall Street trained me to move fast and be aggressive. I needed to apply that energy to building my real estate business immediately.
Twelve years later, I can say the aggressive marketing investment paid off. We've built a business based on referrals and reputation, but that foundation was laid by those early years of saturating our market with visibility.
If you're starting in real estate, here's my advice: figure out what you want to be known for, invest heavily in getting that message out there, and don't wait for business to find you. Make it happen.
Written by Scott Spelker, The Spelker Team. For expert guidance on buying or selling in today's market, we're here to help. Reach out to us via our website or give us a call for a no-obligation consultation.