In the 280th episode of the Mail-Right Show, John and Robert featured Ricky Carruth, a successful real estate agent. He dropped out of college to sell houses, and before turning 23, he already had a million dollars in his bank account. But the market crashed, and he had to work other jobs to make ends meet. He eventually came back to the real estate industry in 2008, with a new outlook: Relationships over Transactions. By 2017, he was already selling over 100 properties per year, making him the number one REMAX agent in Alabama. Now, he has the fastest-growing realtor coaching company called Zero to Diamond. His company’s mission is to help agents from failing in the industry. As an entrepreneur, Ricky has multiple million-dollar businesses with a massive team of successful real estate agents all over the entire world.
The Market in 2021
When Robert asked Ricky about the market’s current state, Ricky quickly answered that as of now, every single one of the buyers competes with eight other buyers. The competition is fierce, and on top of this, most owners prefer to keep their properties off the market because even though they could sell it for a hefty price tag, there would still be nothing that could replace what they already have. They might also be scared to sell their properties because there is a possibility for them to leave money on the table, primarily because of the market’s fast move upwards due to the lack of inventory. Even though plenty of deals are closed every single day, it is still more challenging to get listings in a market when nobody wants to sell off their properties. Nowadays, the effort that real estate agents need to exert for every transaction is insane, especially for newbie realtors that don’t have any established personal branding. Because while selling, they have to prove their credibility at the same time.
Ricky also compared the current market to the 2003 market. He recalled that it was straightforward to get listings off the market before because the prices were increasing rapidly. It was also easier to find a client who wanted to make thousands and millions of dollars per day. Lastly, most buyers nowadays are buying homes for long-term stay, so they prefer to look into a couple of properties before making their final decision; there aren’t many people buying properties to flip.
Advice for New Real Estate Agents
First of all, Ricky wanted to make it clear that, of course, the business won’t seem hard for a person like him. Thanks to his understanding of Google, Facebook, Amazon, Apple, and Zillow, he already knows the ins and outs of their industry. If there’s one thing that they all want, it’s data. It makes their platforms function; it is their life source. That’s precisely what you should want in your real estate business as well. Data is such an essential aspect of any business because it allows the companies to understand the market. One of the most effective means of gathering information is by closing plenty of deals. Ricky made a database that now produces a hundred deals per year, mainly because of his past clients’ referrals and referrals of referrals. He emphasized that every real estate agent has to think of themselves as data collectors because the moment that they have already gathered enough data, they won’t have to make as many calls as they did before.
Ricky also believes that real estate agents need to build a brand around being honest, hard-working, professional, and dependable. With the proper attitude and hold on to the market, it won’t matter what the market does because you own it. Also, agents need to make it their goal to form a new friendship for every conversation they have. Building a great relationship with other people will make them think of you when purchasing or selling a property. It could be a client, a buyer, or a colleague. Everyone can be a future business partner, so be open to forming a great rapport with the people around you.
Lastly, real estate agents need to understand that building their credibility is just as important as closing a deal. A salesman keeps on hustling to close sales after discounts, while a self-made realtor already has good branding and credibility as leverage for doing business with his or her clients and buyers. A practical method to do this is by letting your clients know that you are always ready to help them. Changing the psychology behind how agents communicate can develop a sense of comfort that they are there for their customers, not for themselves. He wants them to feel like the agents are there to help them and not take money.