Every time I talk 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 real estate – why aren’t there more successful Realtors on earth? Well, there’s only www.nyweekly.com/lifestyle/aging-gracefully-the-wellness-programs-at-clover-group-that-residents-love 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 really is from traditional careers, makes it difficult for the average person 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 their careers. New Real Estate Agents bring many great qualities to the table – plenty of energy and ambition – but they also make a large amount 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 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 “obtaining 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 know that among the key ingredients can be your business plan. Your organization plan can help you define where you’re going, how you are getting there, and what it does take for you yourself to make your real estate business a success. Here are the essentials of worthwhile business plan:
A) Goals – What would you like? Make sure they are clear, concise, measurable, and achievable.
B) Services You Provide – you do not want to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you wish to specialize in. New residential real estate agents tend to have probably the most success with buyers/renters and move on 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 you have – gas, groceries, cellular 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 the very least) 60 days? With the goals you’ve set for yourself, when will you break even?
F) Marketing Plan – how will you 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 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 pretty 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 certain that anyone you refer in will 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,” 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 AGENT & New LARGE FINANCIAL COMPANY. They get together and decide that, through their combined marketing efforts, they can take over the world! They’re both focusing on the right section 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 result in a minor hiccup in the transaction – you create 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 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 to them with questions, and they will step in (quietly) when they see a potential mistake – since 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 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 will cost between $700 and $900 (not taking into account 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 do not fool yourself – they’re necessary – because your competition are using every tool to 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 purchase MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp in this area. Getting MLS access is among the most important actions you can take. It’s what differentiates us from your average salesman – we don’t sell homes, we present any of the homes that we have available. With MLS Access, you should have 99% of the virginia homes in your area open to present to your clients.
B) CELLULAR PHONE w/ a Beefy Plan – Nowadays, everyone has a cellular phone. But not everyone has a plan that will facilitate the level of use that REALTORS need. Plan on getting at the very least 2000 minutes per month. You want, and need, to be available to your clients 24/7 – not only nights and weekends.