Every time I speak to someone about my business and career, it always arises that “they’ve thought about getting into property” or know someone who has. With so many people considering getting into property, and getting into real estate – why aren’t there more successful 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. I feel, however, that the inherent nature of the business enterprise, 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 Broker, 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 lots of 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 REALTORS Make.
1) No Business Plan or Business Strategy
So many new agents put almost all their emphasis on which PROPERTY Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents 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’ve ever opened the doors to ANY business, you know that one of many key ingredients is your business plan. Your business plan helps you define where you’re going, how you are getting there, and what it does take for you to make your real estate industry a success. Here are the essentials of worthwhile business plan:
A) Goals – What do you want? Make sure https://www.aldar.com/en/renting-commercial?utm_source=off-page&utm_medium=referral&utm_campaign=cr-backlinks 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 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 you have – gas, groceries, cellular phone, etc… Then write down the brand new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (essential), etc…
E) Funding – how will you 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 obtain the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you achieve this effectively and systematically.
2) Not Using the GREATEST Closing Team
They say the best businesspeople surround themselves with people who are smarter than themselves. It takes a pretty 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 positioning to refer your client to whoever you select, and you should make certain 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! If they perform well, you get to participate of the credit because you referred them in to the transaction.
The deadliest duo on the market is the New AGENT & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they are able to take over the planet! They’re both focusing on the right section of their business – marketing – but they’re doing each other no favors by choosing to provide each other business. In the event that you refer in a bad insurance agent, it might cause a minor hiccup in the transaction – you create a simple phone call and a new agent can bind the house in less than one hour. However, because it normally takes at least two weeks to close a loan, if you use an inexperienced lender, the effect 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 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 your business. Using good, experienced players for the closing team can help you infinitely in conducting business worth 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 can be an investment which 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 don’t fool yourself – they are necessary – because your competitors are using every tool to greatly help THEM.
A) MLS Access is probably the most expensive necessity you are going to run into. Joining your neighborhood (and state & national, by default) Board of Realtors will help you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp of this type. Getting MLS access is among the most important things you can do. It’s what differentiates us from your average salesman – we don’t sell homes, we present any of the homes that we supply. With MLS Access, you should have 99% of the homes for sale in your area open to present to your clients.
B) Mobile Phone w/ a Beefy Plan – Nowadays, everyone has a cell phone. But not everyone includes a plan that will facilitate the amount of use that Real Estate Agents need. Plan on getting at the very least 2000 minutes per month. You need, and need, to be accessible to your clients 24/7 – not only nights and weekends.