Courage - real estate requires a lot of it

This week, I was in New York City talking to a high-producing real estate agent (>$40mm). We were talking about “how hard it is” to charge a full fee under certain circumstances. It takes courage to charge a full fee.

Being Courageous is one of The Thirteen Virtues of Being a Trusted Advisor.

Courage is the mental or moral strength to venture, persist; and withstand danger, fear, or difficulty.

In other words, the exact definition of being a real estate agent.  Let's break down the definition as it applies to real estate.

To be a successful agent: 

• You must exhibit strength.
• You must venture beyond what’s comfortable.
• You must persist - almost always, there’s a roadblock, obstacle, or distraction to slow you down, set you back, or take you out completely.

And then...withstand danger? WTF is that? No one is shooting at us in real estate...wait - are they?

What danger is there in real estate? It's not the often thought of physical danger, like a lion eating us (I mean, there is such a thing as realtor safety, but that’s not what I am talking about). Rather, the danger is in our exposure or liability to injury, pain, harm, or loss. Specifically:

• Injury to our ego.
• The pain of not succeeding.
• Harm to our financial well-being.
• The loss of confidence, relationships, and, in extreme cases, the loss of reputation.

Withstanding fear? We could write a 300-page essay on fear in real estate.

• Fear of rejection.
• Fear of not getting the deal.
• Fear of not succeeding, and conversely the fear of succeeding. Believe it or not, the latter is just as real as the former. People are often afraid of who they would have to be to be successful, or that success will turn them into someone that they don’t like.

Finally, we get to difficulty. Real estate is difficult. Not complicated, but difficult. Real estate, quite simply, is hard!  One could also say:

• Challenging
• Demanding
• Exacting
• Testing
• Tough

What’s hard in real estate? All of it.

• Getting clients.
• Getting contracts signed.
• Getting deals to come together.
• Getting deals closed.
• And everything in between.

When is it easy?

Never. It’s never easy, and even when it’s easy, it’s not easy! That’s why we get paid a commission, i.e., a success fee. We only get paid when a transaction closes.

It takes courage to charge a fee worth all the danger, fear, and difficulty. I recommend charging one that compensates you accordingly.