Why Most People Will Never Be Great At REAL ESTATE AGENT


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 someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to bypass, so there can only 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 Altea estate agents I see many new agents make their way into my office – for an interview, and sometimes to begin with their careers. New REALTORS bring many 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 REALTORS 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 comes in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the Real Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you have ever opened the doors to ANY business, you know that among the key ingredients is your business plan. Your business plan can help you define where you’re going, how you are getting there, and what it does take for you to make your real estate business a success. Here are the essentials of worthwhile business plan:

A) Goals – What would you like? Make them 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 want to specialize in. New residential real estate agents tend to have probably the most success with buyers/renters and move ahead to listing homes after they’ve completed several transactions.

C) Market – that are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and write down EVERY expense which you have – gas, groceries, cellular 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 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 MOST effective 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 who are smarter than themselves. It requires 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 positioning to refer your client to whoever you choose, and you should guarantee that anyone you refer in will undoubtedly be a secured asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or “put your name to,” is there to make you shine! When they perform well, you can participate 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 can 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. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction – you make a simple phone call and a new agent can bind the house in less than an hour. However, because it typically takes at least two weeks to close a loan, if you are using an inexperienced lender, the result can be disastrous! You might find yourself in a position of “begging for a contract extension,” or worse, being denied a contract extension.

An excellent closing team will typically know more than their role in the transaction. Due to this, you can turn in their mind with questions, and they will step in (quietly) when they visit a potential mistake – since they want to assist you to, and in exchange receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worth 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 can be an investment which will cost between $700 and $900 (not taking into account the volume of time you’ll invest.) However, you’ll come across even more expenses when you attend arm yourself with the necessary tools of the trade. And don’t fool yourself – they’re necessary – because your competition are using every tool to greatly help THEM.

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