New real estate agents are eager to start working and implementing all that they have learned. However, many new agents end up stumbling over a few career hurdles that could be avoided. The first three months are really crucial for any agent, and they should put in maximum effort to avoid making any mistakes.
These months are when new realtors lay a foundation for their careers. So to help and guide those who have newly acquired their real estate licenses and are about to start their real estate business, we asked a group of successful real estate professionals what are the most common mistakes that those new to the profession tend to make and how to avoid the same.
Continue to read on to know more about these common mistakes and make sure that you do not end up making them as new real estate professionals.
Real Estate Career Mistakes To Avoid When You Become A Real Estate Agent
1. Not Creating A Good Business Plan
New real estate agents often skip the part of chalking out a proper business plan. They at times lack the mindset of a business owner. Yes, a new agent would be working for a brokerage but is still essentially starting off as a small business owner and thereby needs a proper plan.
A business plan would include a strategy for both day-to-day operations and for long-term targets. Essential aspects of the home market niche that an agent wants to serve, short-term and long-term goals, as well as strategies to achieve them need to be decided right from the onset.
2. Poor Financial Planning To Set Up And Run The Business
In the list of real estate agent mistakes, the lack of planning for the financial aspects of the business is the one that we mostly come across in our interactions with realtors. Realtors basically earn income through commissions, which could be high, but needs time to accrue. There is a gap of many months from landing a listing to closing the deal and earning the commission.
Agents need to have a separate channel of funding to keep the business running until they start generating an income. There are many expenses such as the initial real estate education, licensing fees, fees paid to brokerages, and the expenses of running a business. A real estate agent needs to have at least enough money to keep things running for at least three months.
3. Lack Of A Proper Marketing Plan
One of the most effective areas of business where a business plan helps is the aspect of creating a proper marketing strategy for your venture. However, many agents tend to believe that many new real estate agents tend to try and save money on marketing, mistakenly assuming that they can spend on marketing once they start earning a proper income.
The reality is that marketing efforts are necessary to find prospective buyers and sellers as well as to build a customer base in the local market. Whether it is for making phone calls or for advertising in the long run, it is needed. So, it is essential to initially spend money to sell homes and find clients.
4. Not Continuing Education
It is necessary for realtors to realize that the last thing you want is to appear uninformed when dealing with a client. A homeowner expects that the realtor would know about all aspects of the housing market and can guide them ably.
Therefore, it is necessary to know not just about a house but also about mortgage and lending rates, the real estate landscape now, and the projected forecast so that you can provide the right expert advice to each client of yours.
5. Choosing The Wrong Brokerage To Work For
Many new real estate agents tend to select the brokerage that they work for based on the criteria of a competitive split offered in the commission. When agents work for brokers, a portion of the income they make from each sale goes to the firm they work for. So they end up working in the wrong place for the wrong reasons.
When a real estate agent chooses a brokerage to work for strictly based on a low commission split, they typically are losing sight of the knowledge they typically are losing out on. Choosing the right real estate brokerage and broker to work for will actually lead to gaining an in-depth understanding of the business. Therefore, they can make more money in the future, and have a happier real estate career. So a firm offering the most competitive split in commission is not always the right fit. When starting out, it is typically better to find a broker who knows their worth. You know the old saying, you pay for what you get, or, you get what you paid for.
6. Not Opting For Online Seller Lead Generation Services
An important aspect of the real estate business is lead generation. Finding a steady stream of clients is a necessity for all businesses. Many real estate agents make the error of not registering on a real estate leads generation platform. In the initial period of the business, it is necessary to gain leads from online sources.
A seller leads generation platform such as Dorrmat can benefit new real estate agents in multiple ways. Primarily, Dorrmat provides a steady supply of leads of home sellers to their agents, but as a platform built by agents for agents, they offer tremendous support as well. An additional benefit is that they offer useful resources like a customer relationship management tool (CRM), lead capture link, vendor addition facility, and more. All of these really help new agents start their career in the right manner.
7. Not Learning From More Experienced Agents
Success in this job also needs you to learn a lot from the other senior and experienced realtors. All of the crucial aspects on how to deliver superior services, how to build lasting connections with all the homeowners, and how to have a steady stream of referrals from past clients are some of the crucial aspects that a real estate professional needs to learn. Not doing this in the initial phase can make it very difficult for them realtors in the long run.
This list of real estate agent mistakes that can put a break on your career must certainly be avoided. If you approach your new career with a clear plan right from the beginning, then it is possible to build a good reputation and become a successful real estate agent.
Running your own business is always going to be filled with challenges, but learning to understand the requirements of the real estate industry, enhancing your real estate knowledge, and learning to avoid the common mistakes real estate agents make, will enable you to build a good foundation and lasting success for your business.