Real Estate Retirement: What’s Your Exit Strategy?

For many reasons, the real estate industry is one that doesn't lend itself well to retirement plans. For most agents, selling real estate is a constant battle to stay ahead of the curve--over-spending when the market is up, and struggling to survive when the market goes south.

In a business where 20% of the agents do 80% of the business, it's easy to see why an exit strategy is the last thing on most agent's minds. However, as is the case in most situations, you don't have to reinvent the wheel.

For those who can survive the first five years in the business and then avoid the high rate of burnout that permeates the industry, there is a built-in retirement plan for those who do two things: provide great service and then follow-up. It's that simple.

A staggering 84% of home buyers said that they were satisfied with the agent they used and would use that agent again. Yet, less than 20% of buyers end up using the same agent in their next transaction. There is a huge disconnect going on and it is costing most agents hundreds of thousands of dollars in lost revenue.

Currently, the average agent reports earning 21% of his or her business from referrals from past clients. That number jumps to 29% if the agent is making $150,000 or more. The better agents get it.

With the average homeowner buying and selling a home every five to seven years, that is a LOT of opportunity simply by making sure you simply stay in touch.