Sick And Tired Of Doing REAL ESTATE AGENT The Old Way? Read This

Every time I speak to someone about my business and career, it always comes up that “they’ve thought about getting into property” or know anyone who has. With so many people considering getting into real estate, and getting into property – why aren’t there more successful Realtors on the globe? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. Personally i think, however, that the inherent nature of the business enterprise, and how different it really is from traditional careers, makes it difficult for the average person to successfully make the transition into 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 REALTORS bring plenty 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 almost all their emphasis on which PROPERTY Brokerage they’ll join when their shiny new license will come 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 get into business for themselves. If you’ve ever opened the doors to ANY business, you know that among the key ingredients is your business plan. Your organization plan can help you define where you’re going, how you are getting there, and what it’s going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals – What would you like? Make them clear, concise, measurable, and achievable.

B) Services You Provide – you don’t desire to be the “jack of most trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you intend to specialize in. New residential real estate agents tend to have probably the most success with buyers/renters and then move ahead to listing homes after they’ve completed several transactions.

C) Market – who are you marketing yourself to?

D) Budget – consider yourself “new agent, inc.” and write down EVERY expense that you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re taking on – board dues, increased gas, increased cell usage, marketing (very important), etc…

E) Funding – how will you pay for your allowance w/ no income for the first (at least) 60 days? With the goals you’ve set for yourself, when do you want to break even?

F) Marketing Plan – how will you obtain the word out about your services? The simplest way to market yourself would be to your own sphere of influence (people you know). Make sure you achieve this 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 requires 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 positioning to refer your client to whoever you select, and you should make sure that anyone you refer in will be an asset to the transaction, not somebody 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 get to participate of the credit as you referred them into the transaction.

The deadliest duo out there 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 planet! They’re both focusing on the proper part of their business – marketing – but they’re doing each other no favors by choosing to give each other business. In the event that 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 an hour. MLS 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 may find yourself ready 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. For this reason, you can turn to them with questions, and they’ll step in (quietly) when they visit a potential mistake – because they want to assist you to, and in return receive more of one’s business. Using good, experienced players for your closing team will allow you to infinitely in conducting business worth MORE business…and best of all, 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 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 attend arm yourself with the necessary tools of the trade. And don’t fool yourself – they are necessary – because your competition are using every tool to greatly help THEM.

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