Every time I talk to someone about my business and career, it always arises that “they’ve thought about engaging in property” or know someone who has. With so many people thinking about getting into property, and getting into real estate – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. Personally i think, however, that the inherent nature of the business, and how different it really is from traditional careers, makes it difficult for the average indivdual to successfully make the transition in to the Real Estate Business. As a brokerage, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New REALTORS bring many great qualities to the table – lots of energy and ambition – but they also make a large amount of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.
1) No Business Plan or Business Strategy
So many new agents put almost all their emphasis on which PROPERTY Brokerage they’ll join when their shiny new license will come in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. home maintenance , mistakenly, believe that getting into the true Estate business is “getting a new job.” What they’re missing is that they are about to get into business for themselves. If you have ever opened the doors to ANY business, you understand that among the key ingredients can be your business plan. Your organization plan can help you define where you’re going, how you are getting there, and what it’s going to take for you yourself to make your real estate industry a success. Here are the requirements of worthwhile business plan:
A) Goals – What would you like? Make sure they are clear, concise, measurable, and achievable.
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 intend to specialize in. New residential realtors tend to have the most success with buyers/renters and then move ahead to listing homes after they’ve completed a few transactions.
C) Market – who are you marketing yourself to?
D) Budget – consider yourself “new real estate agent, inc.” and jot down EVERY expense which you have – gas, groceries, cell phone, etc… Then write down the brand new expenses you’re taking on – board dues, increased gas, increased cell usage, marketing (very important), etc…
E) Funding – how are you going to pay for your budget w/ no income for the initial (at least) 60 days? With the goals you’ve set for yourself, when will you break even?
F) Marketing Plan – how are you going to get the word out about your services? The simplest way to market yourself would be to your personal sphere of influence (people you know). Make sure you do so effectively and systematically.
2) Not Using the Best Possible Closing Team
They say the best businesspeople surround themselves with people that are smarter than themselves. It takes a fairly big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, INSURANCE PROFESSIONAL, Title Officer, Inspector, Appraiser, and sometimes more! As an agent, you are in the position to refer your client to whoever you select, and you should be certain that anyone you refer in will be an asset to the transaction, not a person who provides you more headache. And the closing team you refer in, or “put your name to,” is there to make you shine! If they perform well, you get to take part of the credit as you referred them into the transaction.
The deadliest duo on the market is the New AGENT & New LARGE FINANCIAL COMPANY. They gather and decide that, through their combined marketing efforts, they are able to take over the world! They’re both focusing on the right part of their business – marketing – but they’re doing each other no favors by choosing to give each other business. In the event that you refer in a bad insurance agent, it might result in a minor hiccup in the transaction – you make a simple phone call and a new agent can bind the property in less than one hour. However, because it typically takes at least fourteen days to close a loan, if you are using an inexperienced lender, the result can be disastrous! You may find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.
A good closing team will typically learn than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) if they see a potential mistake – since they want to assist you to, and in return receive more of your business. Using good, experienced players for the closing team will allow you to infinitely in conducting business worthy of MORE business…and best of all, it’s free!
3) Not Arming Themselves with the required Tools
Getting started as an agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not considering how much time you’ll invest.) However, you’ll come across even more expenses when you attend arm yourself with the required tools of the trade. And don’t fool yourself – they’re necessary – because your competitors are definitely using every tool to help THEM.