Every time I speak 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 property, and getting into property – why aren’t there more successful Realtors on the globe? Well, there’s only so much business to bypass, so there can only just be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business enterprise, and how different it is from traditional careers, helps it be 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 with their careers. New Real Estate Agents bring a great deal of great qualities to the table – lots of energy and ambition – but they also make a lot 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’ll join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never experienced business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the true Estate business is “getting a new job.” What they’re missing is that they are about to go into business for themselves. If you have ever opened the doors to ANY business, you understand that one of many key ingredients can be your business plan. Your business plan can help you define where you’re going, how you’re getting there, and what it’s going to take for you to make your real estate industry a success. Here are the requirements of any good 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 most trades & master of none” – choose residential or commercial, buyers/sellers/renters, Best Properties for Rent and Sale in Fort Worth and what area(s) you need to specialize in. New residential real estate agents 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 write down EVERY expense which you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (very important), etc…
E) Funding – how are you going to pay for your allowance w/ no income for the initial (at least) 60 days? With the goals you’ve set on your own, when do you want to break even?
F) Marketing Plan – how will you get the word out about your services? The simplest way to market yourself is to your personal sphere of influence (people you know). Make sure you do so effectively and systematically.
2) Not Using the GREATEST 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 Agent, Title Officer, Inspector, Appraiser, and sometimes more! As an agent, you are in the position to refer your client to whoever you choose, and you should be sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! If they perform well, you get to participate of the credit as you referred them into the transaction.
The deadliest duo on the market is the New Real Estate Agent & New Mortgage Broker. 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 provide each other business. If you refer in a bad insurance professional, 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 typically takes at least fourteen days to close a loan, if you use 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.
A good closing team will typically learn than their role in the transaction. Because of this, you can turn in their mind with questions, and they’ll step in (quietly) if they see a potential mistake – because they want to help you, and in exchange receive more of one’s business. Using good, experienced players for the closing team can 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 a Real Estate Agent is expensive. In Texas, the license alone is an investment that may cost between $700 and $900 (not taking into account the amount of time you’ll invest.) However, you’ll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don’t fool yourself – they’re necessary – because your competitors are definitely using every tool to help THEM.
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