Considerations for Start-Up Costs in Real Estate

Hi Agent/Salesperson, Can some advise me, when a totally new salesperson join a Agency, what are the cost involve? Appreciate if you can tell me the estimate amount (in dollars). thanks for reading my enquiry. Have a nice day. Regards

Posted by Johnny - Jan 25, 2012 - Viewed 37 times

Hi Johnny,

Thank you for your query regarding the starting cost for joining real estate.

All agencies will have their own basic starting up rates.

However, I would suggest that you look beyond the initial start up costs as this would be highly unrepresentative of a plan for yourself to work on.

I would suggest that you look at real estate as a business, and in starting one, there will be start up costs, and more importantly, RUNNING costs. These can be much higher than the initial start up costs.

Real estate has many segments that you can pursue your business enterprise, each of course, has their own accompanying marketing strategies in order for you to be successful in.

Hence in this case, I would suggest that you think through and plan for the targeted segment that you would like to work towards, and at the same time work out your marketing strategy and you will be able to derive your running costs from there.

Hope this helps to further refine your query and build upon a stronger foundation for your future success!

Best Regards,

Mervin Tang
Marketing Manager
CEA Reg No. : R030951Z
Huttons Asia Pte Ltd

Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg

When Having a Mid-Life Crisis, Make a Career Switch!

I was wondering if anyone could give me some sincere and constructive advice. I am 36 this year, worked 12 years and in various MNCs. Middle management role drawing low end of 5 figure monthly salary, in Finance Dept. Have family and obviously commitments. I have great interest in property market and was wondering if I should make a career switch. This is somewhat like a mid life crisis decision here. Have felt quite bored working for bosses. My concerns are volatile in terms of income and I am not sure if I will be better off (income wise) working as an agent. As mentioned with family commitments, I need to be able to provide for them. Surely most will say depend on my diligence, attitude and even luck. But really hoping to hear from the Gurus here especially those who made similar switch as what I am intending. I am sure there are plenty of such cases. Thank you in advance.

Posted by Potential agent - Jan 24, 2012 - Viewed 161 times

Hi Potential Agent,

I hear you, and I get where you are coming from. It is like gazing across a raging river and wondering how the world is like on the other side.

I get that although you are comfortable where you are now in terms of work and family, but are getting bored of the trappings of being an employee and working for a boss.

At the same time there is a big worry about income volatility at the prospect of the career switch, with no assurance of a stable income.

All your concerns are valid. At the point that you are at, you will definately be caught between the rewards of the industry, and the fears of giving up what you presently have. In this case, the rewards have to be earned.

A lot has been said in this thread so far, but allow me to offer you a concept of building your business around your lifestyle. All careers that are build around being an employess almost always come with fixed working hours. In this industry, you are given the opportunity to build your work, around what matters most to you. Of course, the rewards that come with success are immense. You can have that, AND plenty of time to spend and be around your family.

What is also missing for you are PLANNED timelines, and necessary resources to build that around. For example, timelines about when you can expect to close your first deal, when you can master the whole industry, how much savings should you set aside, what marketing approach will you be using? Capital vs Low-Cost marketing? How much will all this cost? etc etc etc.

All these need to be planned for before you make the switch. A good plan lays the foundation for success. Failure to plan in this case, is a good plan to fail when you do make the switch.

Having the commitments that you have might not necessarily be a burden. Instead, I see it as your advantage. For myself, my circumstances were such that I make it and succeed in the shortest time possible, or die. That is an extremely powerful motivator and will force you to succeed despite the obstacles.

Last but not least, you will not be the first who has had to make this daring leap of faith. Many many before you have, and made it. At the same time, many have not made it either.

A critical difference between the two outcomes in that in all the successful cases, there has been a source of knowledge, inspiration, support, and guidance. A good teacher.

Find yourself a good teacher who can light your path ahead, and you will land on your feet after taking that big leap!

Good hunting, and have a great adventure in your life to come.

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z
Huttons Asia Pte Ltd

Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg
Discussions: http://sg-realestate-sg.blogspot.com/

Its all about VELOCITY!!

Speed counts..

In all businesses, there will always be a series of finate boundaries that would define of any given skills or knowledge sets.

Real estate works the same way.  There will always be an infinate number of books on the subject, but there will always be limited ideas and concepts that work with slight variations between them.  Once in a long while there will be ideas that are new and revolutionary, but these will consitute less that 1% of the knowledge available. 

Suffice to say, mastering 90% of that available knowledge will put you in a position to achieve very remarkable success. 

The trick of course is to be able to "see" the "content page" of the necessary skills needed in this business endevour like a book.  That way, seeking out and learning that knowledge becomes "easy".

That said, how it worked for us in this industry is to learn all there is to learn in the shortest time possible, and then apply them accordingly given the situations that occur.  A fair bit of adeptation is always needed as ALL real estate deals are unique, as are their cases.  Hence, adapting the skills and knowledge are vital for success in the field.

Is it possible for a 3 month old newbie to be as knowledgable as a 10 year veteran in the industry?

Of course it is. How do we know? Because we did it!

Speed is the key.  Newton's laws apply to business success as much as they do to the world of physics, objects in motion tend to stay in motion.  An individuals speed of production in an industry, will also "stay in motion".  Aka, success breeds success!

We made the top 10% of all Huttons in our 2nd year in the real estate industry, and in this business, the sky is the limit!

Good hunting!

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z
Huttons Asia Pte Ltd
Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg

Discussions: http://sg-realestate-sg.blogspot.com/

An Agency Culture - Huttons Asia Pte Ltd

Which property agent has more project, as will like to do new launch project

Posted by zp23 - Jan 14, 2012 - Viewed 91 times

Hello zp23,

Thank you for your query on agencies and their projects.

Almost all agencies have their own projects at some point or other.  At the same time, paramount here is the agency culture that underlines the agency's approach to projects.

In all agencies that do projects, you will find that  80% of all the sales are closed by the top 20% within that agency, the challenge for you is to find a willing mentor within the top 20%.

The next vital aspect is to understand the agency culture.  I have only been with Huttons in my real estate career, and have since then never entertained a switch to another company. 

Let me explain, Huttons is the industry leader in terms of new launch projects for the simple reason that we deliver results.  We have an impressive track record of SELL-OUT-ON-LAUNCH-DAY culture that is attractive to developers.

A typical senario will look like this:

Day 1, Agent Briefing

Day 10, VVIP Launch

Day 10+3 hours, ALL SOLD OUT

Day 14, Go for next agent briefing for another launch

The culture is unique among real estate agencies, and there have been top agents from other companies who have come on board and failed.

Make no mistake, the competition is fierce and aggressive to achieve the sales within a 10 day window, but think about how this skill and aggressiveness will serve you when you venture into resale and compete against other agents who sign exclusive agreements that last for 3 months?

There is a certain branding that comes when you introduce yourself as a Huttons Agent who specialises in Project Launches.

Hope this helps in your search!

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z

Huttons Asia Pte Ltd

Mobile: (65) 9184 0208

Website: http://www.SGrealestate.sg

Sales Enquiry: mervintang@SGrealestate.sg

Discussions: http://sg-realestate-sg.blogspot.com/

Sometimes, A Student Will Ask the Best Questions..

Hi to all agents here! I am a student doing a case study on COV. Would really appreciate some valuable inputs from you guys :) Thanks in advance!! If you are willing to share more, do leave me your contacts! THANKS!! :) 1.Based on your experience, what do you think cause COV? Mainly from buyers or sellers side? 2.Does COV affect your commission? 3.Under what circumstances are COV high? For instance, economic conditions, good location of the flat, urgent buyers, etc? 4.What are the implications of COV during a transaction? 5.Do you think COV is healthy and essential for the market to work? 6.Do you think government should intervene and ban COV? Would it help?

Hello Melo,

You have taken the effort to post a long question, and that effort deserves consideration and a well thought response.

Before jumping into the answers directly, it would help if you had stated the hypothesis, and then redefine the statistical parameters of your question.  From the looks of the questions, you are probably still in the fact finding stage and are yet to clearly define your question set for statistics churning.

Let us start off the questions, and then develop them further if you have more queries.

1.  "What causes COV, the buyers or the sellers?"

At its simplistic core, COV is a function of price, which ultimately is derived from the interaction of supply and demand, in this case, BOTH the buyers and sellers.  However, within that economical "interaction" academics ALWAYS forget a fundamental assumption that is made within there, that states that:

A) There must be perfect information flow and

B) ALL parties are rational

I would suggest that you focus developing your survey into the 2 assumptions above, and you might come back with some interesting answers.

2.  "Does COV affect your commission?"

It really depends.  Commissions are usually paid by the seller, hence a smart seller would structure a well thought out remuneration strategy to provide the incentive for the brokers to fetch the highest price that both the seller and buyer can agree on.

Talented salespersons work the same way.  A salesperson who can deliver a price that is out of the market is worth more than another that is of average standing.

3&4. "What factors affect the COV?"

As alluded to in point 1 above, all these considerations assume rationality in the buy/sell decision.  As in all real estate transactions, the biggest portion of the deciding factor is emotional, and not on the logic of it.  And clearly, emotive driven decisions are never totally rational.

All the points that you have pointed to in the above are factors that LOGICALLY would impact the COV, however, all these have already been taken into consideration in the valuation report which a 3rd party has already researched and provided.  Which then leads to the present culture of "slapping" a "market rate" COV onto the purchase.

How the market rate is determined is largely a sentiment driven affair.  Using our country's taxi service as an example, the market leader decides to raise fares, and with sufficient market clout, they shift the "sentiment" of the other service providers to also do the same.

If the market behaves as a "collective", this would be it.  Over 2009 to present, the collective has been to set record after record of "asking COV", which has personally gotten out of hand.

5&6.  This is a policy decision in the long run.  COV has become an "entitlement" that sellers expect to keep, but the cost to us as a country is that COVs will be pushing overall prices up, and eventually price out subsequent generations from owning their own homes. 

The official explanation of banning COV is that it will become an "under-the-table" transaction instead; however, the truth of it might simply be that the alternative would be almost logistically impossible to enforce.

The last straw to consider:

As market sentiment goes, a pure academic economics study of the "facts" and "sentiment" ignore the political element.  After all, this is a situation unique to Singapore that affects public housing in our country, within which up to 85% of the voting population resides.  Hence I leave you to draw the conclusions of this impact that would be hard to quantify at the end of your survey.

Do let me know if you would like to further develop our conversation on this.

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z

Huttons Asia Pte Ltd

Mobile: (65) 9184 0208

Website: http://www.SGrealestate.sg

Sales Enquiry: mervintang@SGrealestate.sg

Discussions: http://sg-realestate-sg.blogspot.com/

To Get From Point "A" to "B", Start by asking where is "A"??

What to look for when joining property agency??

Posted by new agent - Jan 17, 2012 - Viewed 72 times

Hi New Agent!

Welcome to a new an exciting adventure for you in the world of Real Estate.  The question you have posed is a very open one that can be answered in many ways.

At the same time,

"What to look for when joining a property agency"

Is in itself a question that deserves the most contemplation in your real estate career.

Let me start with the basics, if you have followed my previous questions on this, I have always advocated mentor first, agency second. 

For those of you reading this the first time, a simple analogy would be, Bruce Lee, finding IP Man.  Did it matter that IP Man was a practitioner of Wing Chun?  Bruce Lee excelled under IP Man's mentorship, and subsequently invented his own style.  But first and foremost, he learnt Wing Chun from IP Man.

For New Agent, my value to you on this question would be for you to consider "yourself" in this equation.  As a mentor, our role is to get our associates from where they are "A" (Where they are currently), to "B" (Where they want to be).  Thus far, no one has pointed out that defining the start point is critical in any journey.

In my interviews with numerous new real estate salespersons, I have never encountered a new associate who has been very clear and open about their starting point.

For example, things that your prospective mentor needs to be aware of are:

1.  My experience so far in life is _____.

2.  My strengths that I believe will help me are ______.

3.  My weakness (Be truthful) are _______.

4.  My fears of joining this line are _______.

5.  I have taken this long to join this industry are ________.

6.  My level of determination  to succeed in this are _______.

7.  My past successes are ______.

8.  My past successes are ______.

9.  What success in this business to me is ______.

10. What does getting this success really means to me?

Thus far many "would be agents" have asked about what to look out for when joining agencies, today I propose to all the new agents out there, that knowing yourself is the key in this equation. 

THEN AND ONLY THEN will you know the right mentor when you meet him or her.

A famous saying of Sun Tzu:

"Know yourself, know your opponent, fight and win a hundred battles"

At the end of the day, the only one who stands in the way of your success is yourself.

As history goes, before Bruce Lee, there was IP Man.

Hope this short conversation has added some value to your direction.

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z

Huttons Asia Pte Ltd

Mobile: (65) 9184 0208

Website: http://www.SGrealestate.sg

Sales Enquiry: mervintang@SGrealestate.sg

Discussions: http://sg-realestate-sg.blogspot.com/

Picking a Mentor 101

I have just gotten my licence, and am currently in ERA. I would like to ask if it is possible to change to another group internally? My DD/Manager is really too busy to help me most of the time and everything is of self-service. Feel very demoralised!

Posted by Matt - Jan 14, 2012 -Viewed 92 times

Hi Matt!

I hear your frustration; understanding that you are not getting the necessary guidance is the first step to remedy your situation.  The next question is to understand the next step that you can/should take.

Looking at your intended direction for a change internally given that your DD/Manager is too busy to help you most of the time, I am making an inference that you picked your company first, and not with the selection of your DD/Manager as your first priority. 

I would suggest that you take some time and speak with successful real estate agents, and eventually you will find a common trait that they all share.  In the starting point of their careers, ALL of them would have had a good and dedicated mentor who guided and taught them the necessary lessons and skills that made them the successful salespeople/leaders that they are today.  NOT the brand or lack of a brand of the company that they joined.

Selecting a good teacher is paramount to success in this industry. 


The field of real estate is very different from other sales related industries, for example, automobiles, insurance etc.  For instance, every piece of real estate is different, has different characteristics and traits.  The people involved, the buyers, the sellers, the brokers, ALL are different from deal to deal.  Hence, the skills sets are very diverse and dynamic, thus making it very obvious that the lessons that a new agent would need in this industry are very broad and in-depth.


From the situation that you are in, it seems that you have made a wrong first step.  Thus by remedying that wrong first step by taking another step forward might not necessarily be the right action.  Sometime, taking a step backward might serve you better.
Some useful tips for interviewing your mentor / future manager are as such:

1.      Knowing that all agencies that you join will have their own in-house training sessions, these costs are unavoidable, but be wary that some recruiters are more in the business of selling training programs, rather than grooming successful sales persons.  A direct question that you need to ask to ascertain this is,

“Are you getting a share from the training session that I have to pay for?”

2.     There are typically only 2 types, or variations of the 2 of associates that come into the Real Estate Industry, and it is vitally important that you know for yourself which of these 2 that you yourself are:

A)    Independent and seeks GUIDANCE (The Ranger)

This associate “type” is the one who sees the opportunities, identifies the problems, and seeks out the mentor on a consultative basis to affirm the proposed action plan, and for reviews on the outcome of the earlier choice.

B)    Dependant and seeks DIRECTION (The Soldier)

This associate “type” requires much guidance in terms of planning the work schedule and day-to-day activities.

Statistically, 2 out of 10 new associates will be Ranger “types”, while the rest are “Soldier” types. 

This phenomenon is an unfortunate by-product of the local education system that has trained generations to be good and hardworking employees, but lousy initiative-driven problem-solvers.


There are success paths for both, and the right mentor will have solutions to achieve success for both “types” that they meet.
For the first (The Rangers), the mentor MUST be accessible.  The Ranger type only calls for guidance on an “as-needed” basis, hence the mentor must be knowledgeable, and promptly offer alternatives and foresight into the possibilities that The Ranger will face in the given situation.


For the second (The Soldier), the mentor must have a structured activity driven program that new associates come into that gives both training and activities on a team level to ensure their success in the near-term, at times, personally leading them in the field.
An “A” grade teacher takes that all another step further by teaching the THINKING PROCESSES (These are no longer skill sets) that lead the good Soldier types, to eventually cross over into a more Ranger type.


In summary, you must know which type you tend towards, so that you can DIRECTLY ask your mentor if they are able to support your requirements on your path to achieving your success in this business!
Hope this gives you a better understanding into how you can best move forward.

Best of luck,

Mervin Tang

Marketing Manager
CEA Reg No. : R030951Z
Huttons Asia Pte Ltd
Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg
Discussions: http://sg-realestate-sg.blogspot.com/

The Merits of FOCUS

"Hi, I’m an existing part-time salesperson for 2yrs. Will be moving on to Full time status in a few days time.I felt my manager has too many associates and I did not get much attention from him. I am looking for a manager whom i can work together with in close connection. If you are willing to train me intensively and guide me along the way on a personal level, I believe I can achieve my fullest potential. I am motivated and will really appreciate if any experienced manager is willing to give me a kick start in Private properties and Commercial, I will definitely work my way up to benefit both sides for a win-win situation. Currently I am doing HDB unit/room rental and resale. ThankU.

Posted by Invest Property -Dec 29, 2011 -Viewed 131 times"

Hello Invest Property,

Thank you for your question about the prospect for moving full time into real estate.

Let me break down your concerns into the following:

1.       Your current mentor has so far been not giving you enough attention as he/she might be having too many associates.

2.      You are looking for a mentor who can train you intensively and guide you along the way on a personal level whereby you can achieve your fullest potential.

3.      Private and commercial properties are your next avenue of focus

4.      You are currently doing HDB unit/room rental and sales

There is a common thread that I would like to draw your attention to in this aspect that I find is a common aspect even for my own associates.

FOCUS

It is a concept that many people speak about but few understand.  Focusing as a concept means to do what you are already doing, refining your technique at doing it to such a degree until you achieve the status of a master craftsman.  Real Estate is very much a trade that each salesperson creates his/her own technique and approach over time until they get very good at it. 

In our business that is achieved by making plenty of money at what you already know, and/or by being very good at it!

In your case you have spent 2 years in the trade as a part-timer building up the knowledge and expertise for what I call a “career bridge”, whereby you transition jobs/career with minimal impact to your income due to loss of time in the learning process.  However, to switch totally from HDB to Private/Commercial are very drastic moves as the technical knowledge for the two are very different from your current field of HDB.

From a student point of view, you will be looking for a mentor who can point you the path to success.  How you find this mentor will be in itself a feat of luck.  For the reason that what you see and hear and ultimately expect, might not be what you take on in the end.  However, the ability to achieve success will always be in your hands regardless of your environment, hence, achieving that success will be entirely up to you to make that a reality!

I wish you all the best in your coming adventure!

Best Regards,

Mervin Tang

Marketing Manager

CEA Reg No. : R030951Z
Huttons Asia Pte Ltd

Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg

Discussions: http://sg-realestate-sg.blogspot.com/