Arsen Atbashyan, owner of the brokerage team Commercial Acquisitions Inc., outruns the emerging competition by having wider ambitions and narrower attention to detail. After 15 years of experience, he has shared the three most common pitfalls his contemporaries can’t help but avoid. Ultimately, he believes they make up a big gap where honesty used to be that start-up brokers should try and fill.
What counts are happy clients whose needs you can meet and who have transparency on the deal from the first email to the final handshake. When was the last time you paid exactly the price you were expecting? Buyers, sellers, and brokers all have their own ideal outcome in a transaction. Deals are a combination of all their interests, skills, and values, just with a price attached. But if you’re trying to make it in the real estate industry, your bottom line isn’t the only thing that matters.
1. Inflating your rates
Times are hard for some right now, but that’s no reason to be dishonest with your clients. Commercial Acquisitions Inc is based in Brooklyn, and rates are rising across New York. Yet, city real estate brokers shouldn’t lose touch with reality just to make a quick buck off inflated prices. It’ll turn off clients in the long run.
“Any owner or developer is looking to maximize the profits from their property,” Atbashyan stated. “But that doesn’t mean you should let the developer price property in Brooklyn like more expensive ones in Manhattan. It is our job as brokers to bring them down to a realistic expectation.”
Real estate professionals often act as mediators in property deals, there to smooth things along when they get rocky. From a buyer’s perspective, there’s nothing rockier than paying over the odds and watching your broker pocket the difference. Always prioritize relationships over short-term gain.
2. Accidentally becoming a jack of all trades and a master of none
More people are joining the world of real estate. But the owner has noticed that the kind of people branching into property has recently changed. Today’s brokers might have skimmed the latest cutting-edge literature, but they risk pleasing the crowd instead of sealing a deal.
“If you’re in the industry, you have to grasp what you’re doing fully,” Atbashyan proclaimed. “A lot of brokers dabble in commercial property, residential property, or whatever they can make a buck in. But to succeed, you must fully understand your product and audience and not give false expectations.”
For example, the owner centers his business around ambitious developments that can be pre-leased, increasing total occupancy. He often finds himself resolving deals that undertrained newcomers have mishandled. Instead, stand out from the crowd by finding your niche. It can result in more transactions, longevity, and efficient brokerage.
3. Sacrificing trust for profit
Some people believe honesty comes at the expense of efficiency. Atbashyan does not. And he’s not just talking about cutting back on refunds due to overpromising and underdelivering.
Providing accurate and trustworthy advice from the first time you speak to a client has a positive exponential effect on your real estate brokerage. They will be more likely to come to you with potential business in the future, helping you nurture a prosperous long-term relationship. That’s without mentioning the influence of word-of-mouth referrals in the age of saturated online marketing.
Being a consistently honest voice in an industry filled with misleading rhetoric has enabled Commercial Acquisitions to scale dramatically. At the same time, its relationships with developers and tenants are symbiotic. Its client pool is also much less likely to be persuaded by overblown promises from industry newcomers. Both morally and financially, it pays to be honest.
If you’ve dodged the most common pitfalls made by almost every new real estate broker, you’re already on the right path. But the most important thing is not to lose momentum. People need to remember you as one of the good guys in real estate, whether you do business in Brooklyn or Brisbane.