It is well known that 3 out of 4 new agents leave the business in their first year. Of the 25% that make it, 7 of 8 fail the second year. These are daunting statistics and one of the main reasons that the Real Estate Apprentice Foundation was started. Instructors in over 120 Realty Universities across the country want to know how to better educate rookies so that they have an improved probability of success.

The engine of real estate appears to be this wave of new agents, working their sphere of influence ' friends and family who need to buy and sell."? Once they have exhausted this small sphere, many new agents don't know where to turn to generate leads. Then, the next wave comes in. That is why the Grant and business/marketing coaches focus the new agent on building a brand identity, a niche market, a business plan and a plan for having the working capital to market your new small business in hopes of surviving to year 3 and beyond!!

November 1, I start my third year in the business. I plan to open an expensive bottle of wine and toast The Shearer Group, Inc. (I bought it BEFORE I entered real estate!). I can just hear your applause: thank you!!!

In calendar year 2004, when I won the grant, I started in real estate full time in May. I would like to share with you some of my statistics:

• I closed 7 transactions my first year (2004).
• In calendar year 2005, I have closed 18 transactions with two months left, and have 3 closings scheduled in 2007. Sound like I know what I am doing? Not really. With expenses, this is not survivable. My GCI is too weak. Did you ever notice, most new agents don't start out with million dollar listings that are perfectly staged? With faith, I keep going. (When you get time, read the articles that are written by Allen Wright, developer of Create-A-Plan).

What is amazing to me during year two, is the number of transactions that never reached the closing table and the challenge of closing the ones that I did. That is why I have coined the term "the miracle of closing". "?Let me give you a few personal statistics:

Transaction Failures:

• 2 expired listings: one expired the day after I presented them with a contingent offer that they refused
• 2 withdrawn listings
• 4 terminated contracts: two terminated days prior to closing
• 3 contracts written that will close in 2007: long term cash flow
• 4 listing presentations that I did not get!
• 8 buyers that did not contract after appointments

My business coach taught me that this happens to new and experienced agents! You have to factor in a failure rate. No matter how good of a job you do, things happen. There are a million variables in the process that you cannot control. Be sure to keep statistics so that you can do reasonable projections in your market and your business. Also, analyze each one to see if there is anything that you can do to learn from the transaction. If you are like me, each client is so important to your business, and it can cause you to be FRANTIC! You cannot let the customer know this.

The new agent is simultaneously working to build their business (marketing, lead generation, systems development, networking), working with clients that may contract (listing presentations, buyer appointments), and, transaction management (working the contracts through to closing). You have business success and business failure at the same time! You have to keep pressing through, knowing that you are "normal" (hopefully!).

Closed Case Study:

My background in healthcare (including psychiatric nursing!) did not begin to prepare me for the drama of working with people when they buy and sell property. It is a time of intense stress and emotions run high. What I have learned, is that many people live their life seeing the "glass half empty" and no matter how great a job you did bringing the two sides together, negotiating a "win/win", many folks feel they got the short end! Sometimes, no matter what you do to build a relationship, it is just a transaction. You will probably not get referrals or repeat business. It is simply too easy to blame the agent for everything.

I am learning that I have to de-personalize some of the behaviors I see, even though there are some personal and even deeply hurtful moments. We are simply going to work with people that do not share the same values that we do.

An example of support:

• A woman called me with an urgent need to sell her home and find a new home. Her husband was in the hospital with a stroke. Sound like my niche! We quickly listed her home and within 3 buyer appointments, found a perfect home! And we all lived happily ever after!

Not!!. After a few days on the market, I received a call from her husband (from the hospital) that he had not agreed to list the home (even though he signed the listing agreement?)."? My sign mysteriously disappeared twice. The home that she put the offer in was to be in her name only. OK. Now I am awake, alert and oriented. Unfortunately, the home that she was buying was owned by a broker. What I mean is, if you are going to be in breech of contract, don't do it in a contract on a broker owned property!. During negotiations, I was unable to reach my client. She just disappeared (like my signs). During a critical contract period, I sat by the phone/fax until 12:01 a.m. waiting to see if she responded. She didn't. She decided to terminate and say that I had not represented her appropriately. Right. Fortunately, with ethical communication and a great broker, I was able to close this deal. People go through tough times and are not always forthright. Life is sometimes too painful. We cannot let this deter us from helping. During the closing, my broker attended. This allowed my client to save face and move on.

Lesson: Keep your broker informed early on in transactions where things just don't add up! My broker gives wise counsel, support and encouragement that are critical to survival.

I also think it is important not to beat yourself up over transactions that do not close or that close and you know you will never see that client again. So many seminars talk about repeat business, but the reality is that not all of our customers are going to form deep and lasting relationships.

I want to leave you with a reminder by Mother Teresa:

Do good anyway...
"In the Final Analysis"


People are often unreasonable, illogical, and self-centered...
forgive them anyway
"?

If you are kind, people may accuse you of selfish ulterior motives...
be kind anyway

If you are successful, you will win some false friends and some true enemies...
succeed anyway

If you are honest and frank, people may cheat you...
be honest and frank anyway

What you may spend years building, someone may destroy overnight...
build anyway

If you find serenity and happiness, people may be jealous...
be happy anyway

The good you do today, people will often forget tomorrow...
do good anyway

Give the world the best you have, and it may never be enough...
give the world the best you have anyway

"?
You see, in the final analysis, it's all between you and God...
it was never between you and them anyway

Have a great week, and DO GOOD

Kendra