Beginning a successful real estate career is quite difficult for most new brokers. In the business we affectionately call them “baby brokers” because of the state mandated requirements for intense supervision by an experience managing broker in their first two years. Even when the new broker has come from a related industry such as building or lending, the learning curve is steep for beginners. Customers sometimes shy away from such brokers because of their inexperience, making it even more difficult for these baby brokers to get their real estate business started, though some “millennial “buyers could care less about the competency factor, because to them the finding of a property seems to be paramount in terms of priority. Since the available open slots in the average baby broker’s daily planner may still have some big empty spaces, being ready at a short notice to cater to such demanding buyers may be one advantage baby brokers have over busier agents. They may also have more time than a busier agent to spend on a property listing which could be appealing to more needy sellers.
Many of these baby brokers come to the real estate industry armed with plenty of relevant skills and are able to quickly get up to speed, but many of them survive this start up by pure determination and endurance. Some come into real estate sales thinking that they can garner a little income on the side as a part-timer by doing a few deals a year to supplement a meager retirement income, but they usually don’t last long once they realize what the demands are.
State law mandates that any contract written by a new broker (less than 2 years in the business) must be scrutinized by their managing broker or designated managing broker within 24 hours of signing by their client. The reality is that most new brokers are carefully instructed in their first several transactions so that it is as if the experienced managing broker is really at the helm. This fact should relieve many skeptics of their worries that an inexperienced broker could miss something important. The fact is that many dinosaurs in the real estate business may be missing what a baby broker won’t just because they have not kept up on the latest best business practices and new regulations.