Top 7 Mistakes Rookie Real Estate Agents Make

Each time I speak with someone about my business and profession, it often is mentioned that “they’ve considered getting into the real estate industry” or have a friend that has. With so many people considering becoming involved in real estate and pursuing real estate – why aren’t there more successful Realtors around the world? It’s because there’s only so much business to be had, and there will only be a number of Real Estate Agents in the world. However, I believe that the nature of the industry and the way it differs from other professions is what makes it difficult for anyone to make the right change into it. Real Estate Business. As a broker, observe many new agents making their way to my office for an interview, or sometimes, to begin their careers. New Real Estate Agents bring many great attributes to the table, including plenty of enthusiasm and drive However, they also commit a number of frequent mistakes. Here are the top 7 mistakes that new Real Estate agents make.

1) There is no business Plan or Business Strategy

Many new agents place all their focus on the Real Estate Brokerage company they’ll join once their new license arrives to them in the mail. Why? because the majority of new Real Estate Agents haven’t had a business of their own and have only been employees. They think that entering this Real Estate business is “getting an opportunity to get a new job.” They’re not realizing their plans to start a business of their own. If you’ve been through the doors of any company, you’ll know it’s one of your primary factors is your business strategy. The business plan will help to define your goals and how you’ll get there and what it will require to create your real estate business a success. These are the key elements of a good business plan:

A) Goals What are you looking for? They should be easy to comprehend, concise, quantifiable, and realizable.

B) Services You Provide – you don’t want to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. Agents who are new to residential real estate are likely to have the best results with buyers and renters. They then proceed to sell homes after having accomplished a couple of transactions.

C) Market Who are you marketing your business to?

(D) Budget Consider yourself “new realtor, Inc.” and record every expense you incur such as gas, groceries, and cell phones… You should then write down the new costs you’re taking on: fees for board members, more consumption of gasoline, more cell phones and marketing (very vital), and so on…

E) Finance How will you fund your budget with zero income during the initial (at minimum) 30 days? In the context of the goals, you’ve established for yourself, at what point will you be able to break the threshold of breaking even?

F) Marketing Plan How do you plan to make people aware of your offerings? The most efficient way to promote your business is through your personal circle of influence (people whom you are familiar with). Be sure to do it efficiently and consistently.

2) Not using the Best Possible Closing Team

The most successful business people have a network of people who are more knowledgeable than they are. It requires a large team to complete a transaction including Listing Agent, Buyer’s Agent Lender, Insurance Agent as well as Title Officers, Inspectors Appraiser, and often even more! As a Realtor, you’re in the position of referring your client to whomever you like and you must be sure that the person you refer to is beneficial to the transaction and not cause you more stress. The closing team you refer to and “put your name on,” are there to help you shine! If they do a good job you can claim part of the credit since you introduced them to the transaction.

The most deadly duo is that of the New Real Estate Agent & New Mortgage Broker. They join forces and decide that with their marketing efforts together, they will be able to conquer the world! They’re both focused on the right aspect of their business’s marketing, however, they’re doing one another harm by choosing to offer each other business. If you’re referring to an unprofessional insurance broker this could result in some minor issues in the transaction. In this case, you just need to make a quick phone call, and a new agent is able to sign the property in under an hour. But, since it usually takes at minimum two weeks to complete a loan, if choose a lender with no experience it could be catastrophic! You could be in the situation of “begging to extend your contract,” or worse, being denied an extension.

A good team for closing is usually more knowledgeable than the role they play during the process. This is why you can reach them for assistance and they’ll assist (quietly) whenever they spot an opportunity for error – as they are there to assist you and, in return, receive the benefit of your company. Employing professional, knowledgeable people on your closing team can help you tremendously in conducting business that is worthy of more business…and the best part is that it’s totally free!

3) not arming themselves by using Necessary Tools

Starting out as a real estate agent is costly. In Texas, the license itself will be an expense that can cost anywhere from $700 to $900 (not counting the time that you’ll have to put in.) But, you’ll face additional costs as you begin to equip yourself with the essential tools to succeed. And don’t misunderstand that they’re not necessary because your competition is making use of every tool they can to aid them.

A) MLS Access is likely to be the most expensive requirement you’ll come across. Signing up with your local (and the national and state in default) Board of Realtors will allow you to purchase MLS access. In Austin, Texas will cost you about $1000. Don’t be stingy on this aspect. In fact, having MLS access is among the most essential aspects you can accomplish. This is what sets us apart from other salespeople We don’t sell houses but we show the homes are available. By using MLS Access, you will be able to present 99% of the houses that are available for sale in your neighborhood ready to show to your customers.

B) Mobile Phone with the Beefy Plan – These days, everybody is using a mobile. However, not all have the plan that allows the amount of use Real Estate Agents need. Make sure you get at least 2000 minutes each month. You’d like, and require to be available for your customers 24/7, not just on weekends and nights.

C) Computer (Preferably a laptop) – There’s no alternative, you must have an internet connection and be knowledgeable enough to be able to use email. It’s a good idea to purchase some management software for your business and also. If you’d like to save some money (and who wouldn’t) then you can get the client & email management software Thunderbird from http://www.mozilla.com and you can get a free office suite from http://www.openoffice.org The only downside to these programs is that they do not sync with your PDA or Smart Phone. Laptops are a major advantage because it lets you to work at home or while on the move. The new Real Estate agents often are amazed by the amount of time they’re away from their desks, and the laptop can help you keep track of your tasks when you’re on the move.

Do) Real Estate Friendly Car You don’t need to own an expensive Lexus however, your Miata will not be enough. Be sure to are driving a four-door car as well as an SUV, that’s comfortable and attractive. Make sure it’s clean and, be sure to not smoke inside! You’re likely to spend a lot of hours in your vehicle and put a lot number of miles. So If it’s efficient in fuel is a huge plus. In the event that you own a sports convertible, or own that KILLER Jeep from the college years now is the time to sell the vehicle into.

4) The lack of proper funding

If you’ve spent the time to develop the business strategy, you must have a budget in place, however, I cannot emphasize enough on the significance of keeping and following your budget. But, a budget on its own does not take care of the vital factor of financing. 90% of small-scale businesses fail because of insufficient funding. In general, new agents require 3 months of savings prior to stepping into the full-time agency. But, cash at the banks is not always the only option to address the question of financing. Maybe your partner is willing to help you for a specified period of time. You could also have a part-time job that won’t hinder your work as a real estate agent. Many successful waiters can make the transition to becoming successful real estate agents without a dime in their bank accounts. When you begin your business don’t anticipate earning any income for at a minimum of 60 days.

5.) Refusing to spend money on Marketing

The majority of newly-minted Real Estate Agents don’t realize that the most difficult part of their job is finding the right business. In addition, they’ve spent around $2000 on the license as well as board fees and the last thing they’d want to do is spend even more money! The problem is in the fact that they don’t understand that even though you’ve entered this Real Estate Business, you aren’t yet employed. A reputable professional will inform you that the amount of the business you make is directly related to how much you invest in marketing. If you pick the right brokerage, you’ll get some great inbound leads. But don’t forget to put in an effective, personal marketing plan at the start to make your name known as the Real estate agent to contact.

6) not focusing their marketing efforts in the most effective Locations

One reason for the majority of novice real Estate Agents who begin investing in personal marketing end up stopping due to the fact that they’re spending their money in the wrong spot. The most convenient location and the place where traditional Real Estate tells you to spend your money is through traditional print marketing newspapers and real estate magazines etc… The most well-known area to spot real estate advertisements, and it’s where the big office spends an enormous amount of budget, which is why many new agents make the mistake of spending their money in this area. This is a major issue for agents who are new due to the lower return. Large brokerages are able to spend money on this because they’re able to fulfill two functions in that they’re marketing their properties to sell while generating new buyers to their buyer’s agent. New Real Estate Agents must focus on their own area of influence as well as referral marketing to achieve the best ROI for their money. A real estate agent could spend less than $100 per month advertising to family, friends and colleagues, and get an amazing return. There are a variety of fantastic referral methods that are all based on the same principle – If you are consistently marketing your business to the people in your area and influencers as the agent to contact – you’ll be able to get more business. It is important to select an approach and then follow the plan. The results will be evident.

7) Selecting the wrong brokerage for the wrong reasons

The new Real Estate Agents choose their new broker based on a variety of reasons. They are well-known as well as a competitive rates, their office is located near their home, etc… Although these aren’t all bad motives to select the right broker, they’re not likely to do much to aid you achieve your goals. The most important reason to select one is to choose a broker. The most important question to ask is “What are you going to offer your prospective agents.” If the answer is “The the most competitive rate available” it is a good idea to keep exploring. Rememberthat 100% of zero is still zero. If you’re thinking of the biggest broker in town with a stellar image, remember that you’re creating as a business, not a job. While it’s nice to boast to your acquaintances about securing a job with an established firm, it’s not a great achievement to display your license to the wall of the place as other agents who have been successful.

The most important thing to consider when interviewing new Brokers is what they can offer you as a brand new agent. Are they able to provide leads? What training programs do they comprise? What’s their retention rate? What’s their average sale price? Are they encouraging their agents to advertise themselves? A broker’s goal is to assist new agents to establish themselves as successful and also to assist established Agents advance their careers to the next stage. As a rookie agent, don’t be concerned about commission splits, agency names, and more about specific standards and programs for agencies.

A new career path in Real Estate is very exciting. Starting a Real Estate company provides new agents with the opportunity to explore endless possibilities and flexibility. New agents have a notoriously high rate of failure, however, an entirely new Real Estate career is an extremely frightening prospect. If you can avoid the seven most common mistakes that rookie Real Estate Agents make, you’ll be ahead of your peers!

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