You’ve seen the advertisements for top-producing real estate agents everywhere, but what does that actually mean? And how do you become one?
A top-producing real estate agent is an agent who sold the highest dollar amount of real estate in any given market. An agent can boast that they were the top-producing real estate agent last month, while others may state that they’ve been a top-producing real estate agent for the past three years. There isn’t always a standard period of time tied to the claim.
Additionally, “top-producing” is largely tied to the market the real estate agent is in. For example, a top-producing agent in Wisconsin is going to have produced a different amount of revenue than a top-producing agent in New York City, simply because the price of real estate is so varied between locals. When evaluating top-producing real estate agents, they need to be compared with agents in the same market, not a national-level comparison.
Now that we’ve answered the question “what is a top producer in real estate?”, let’s take a look at how you can become one of these top producers.
Understand Your Market
As you may have gathered from the sections above, becoming a top-producing real estate agent is highly dependent on the market you’re in. For example, while you may have sold ten lower-cost condos last month, the colleague who sold a single ten-million-dollar home would be considered last month’s top-producing real estate agent—it’s quality, not quantity.
In some markets, however, there may only be more affordable housing options, so real estate agents will have to close a large number of properties to be considered a top-producing real estate agent. If becoming a top producer is your goal, you’ll need to understand the differences between real estate markets so that you can determine where to focus your efforts.
Focus on Your Leads
The most successful real estate agents always know where their next sale is coming from. They’re consistently cultivating their list of leads, both of people looking to purchase and those looking to sell. While many leads come from word of mouth, successful marketing campaigns can be just as beneficial in gathering new clients.
More specific ways you can build your lead list are by hosting open houses, creating a personal website, setting up email campaigns, and being active on social media. No matter which method works best for you and your market, prioritize it among your other work and ensure you’re setting aside a good portion of time each week to focus on building your lead list.
Manage Your Income
Understanding your income and appropriately budgeting is one of the hardest parts of being a real estate agent, let alone a top-producing real estate agent. Because real estate sales are never guaranteed, neither is your income. In between commission checks, you have to manage your finances to cover both personal and business expenses. This becomes especially important as you move into the big leagues and look to hire help to assist with these larger-revenue sales. You can’t become the most successful real estate agent in your market unless you move past the basics of budget management.
Enroll in Continuing Education
While you took initial courses to become a real estate agent, there is still plenty to learn. The most successful real estate agents are always on the lookout for the latest real estate tactics and best practices to improve their businesses. Your continual education doesn’t always have to be formal seminar either, finding a high-producing mentor, or enrolling in online courses can go a long way in improving your real estate skills.
Skills that you will want to brush up on include market-specific information, such as hot neighborhoods, popular real estate types in the area, and pitfalls other agents have faced in the market. You should also consider learning more about new marketing techniques and programs, as well as any new zoning or real estate laws in your area.
Choose the Right Brokerage
Your income is largely dependent on the brokerage you pair yourself with. Brokerages take a percentage of the commission for every sale you make as a real estate agent, and the percentage they take is largely dependent on where you are in your career and the specific brokerage you set yourself up with. It’s important to note that your qualifications as a top producer are not commission based, so the brokerage you’re partnered with doesn’t matter in that sense. Your brokerage is important for your income, however, and what you can invest back into growing your business and progressing your career.
Progress Your Career with Continuing Education
Now that you understand what it takes to become a top-producing real estate agent, are you ready to enroll in some continuing education to progress your career and become a top-producing real estate agent? If so, sign up for one of our real estate continuing education courses today!