Every time I talk to someone about my business and career, it always arises that “they’ve thought about getting into real estate” or know anyone who has. With so many people considering getting into real estate, and getting into real estate – why aren’t there more successful Realtors on the globe? Well, there’s only so much business to bypass, so there can only be so many Best Properties for Rent and Sale in Baltimore REALTORS in the world. Personally i think, however, that the inherent nature of the business, and how different it 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 plenty of great qualities to the table – plenty of energy and ambition – however 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 all their emphasis on which PROPERTY Brokerage they will 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. They, mistakenly, believe that getting into the Real Estate business is “getting a new job.” What they’re missing is that they’re about to get into business for themselves. If you have ever opened the doors to ANY business, you understand that one of the key ingredients is your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it does take for you yourself to make your real estate industry a success. Here are the essentials of worthwhile business plan:
A) Goals – What would you like? Make sure they are clear, concise, measurable, and achievable.
B) Services You Provide – you do not desire 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 on 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 write down EVERY expense you have – gas, groceries, cellular phone, etc… Then write down the new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (essential), etc…
E) Funding – how will you pay for your allowance w/ no income for the first (at the very least) 60 days? With the goals you’ve set on your own, when do you want to break even?
F) Marketing Plan – how are you going to obtain the word out about your services? The simplest way to market yourself is to your personal sphere of influence (people you understand). Make sure you do so effectively and systematically.
2) Not Using the Best Possible Closing Team
They say the greatest businesspeople surround themselves with people who 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 a Real Estate Agent, you are in the position to refer your client to whoever you select, and you should make sure that anyone you refer in will undoubtedly be a secured asset to the transaction, not someone who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.
The deadliest duo out there is the New Real Estate 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 section of their business – marketing – but they’re doing one another 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 create a simple phone call and a fresh agent can bind the property in less than one hour. However, because it normally takes at least two weeks to close a loan, if you are using an inexperienced lender, the effect can be disastrous! You might find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.
An excellent closing team will typically learn than their role in the transaction. For this reason, you can turn to them with questions, and they will step in (quietly) if they visit a potential mistake – since they want to help you, and in exchange receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business…and on top of that, it’s free!
3) Not Arming Themselves with the Necessary 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 the amount of 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 do not fool yourself – they’re necessary – because your competition are definitely using every tool to help THEM.
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