Every time I talk to someone about my business and career, it always arises that “they’ve thought about engaging in real estate” 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 earth? Well, there’s only so much business to bypass, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, 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 brokerage, 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 a lot of great qualities to the table – lots of energy and ambition – but they also make a lot of common mistakes. Listed below 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’ll join when their shiny new license comes in the mail. Why? Because most new REALTORS have never experienced business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the true Estate business is “obtaining 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 among the key ingredients is your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it does take for you yourself to make your real estate industry a success. Here are the requirements of any good business plan:
A) Goals – What do you want? Make sure they are clear, concise, measurable, and achievable.
B) Services You Provide – you do not wish to be the “jack of most trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you wish to specialize in. New residential realtors 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 agent, inc.” and write down EVERY expense that 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 first (at 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 simplest way to market yourself is to your personal sphere of influence (people you understand). Make sure you do so effectively and systematically.
2) Not Using the GREATEST Closing Team
They say the greatest businesspeople surround themselves with people that are smarter than themselves. It requires 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 position to refer your client to whoever you choose, and you should make certain that anyone you refer in will undoubtedly be an asset to the transaction, not somebody who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you get to participate of the credit as you referred them in to the transaction.
The deadliest duo on the market is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. They gather and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the proper 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 cause 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 normally takes at least fourteen days to close a loan, if you are using an inexperienced lender, the effect can be disastrous! You may find yourself in a position 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. For Real Estate trends in Dubai , you can turn to them with questions, and they will step in (quietly) when they visit a potential mistake – since they want to help you, and in return receive more of your business. Using good, experienced players for your closing team can 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 a Real Estate Agent is expensive. In Texas, the license alone can be an investment which will cost between $700 and $900 (not considering the number of time you’ll invest.) However, you’ll come across even more expenses when you go to arm yourself with the required tools of the trade. And don’t fool yourself – they are necessary – because your competition are using every tool to greatly help THEM.
A) MLS Access is just about the most expensive necessity you are going to run into. Joining your local (and state & national, automagically) Board of Realtors will allow 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 one of the most important things you can do. It’s what differentiates us from your average salesman – we don’t sell homes, we present the homes that we have available. With MLS Access, you should have 99% of the homes for sale in your area open to present to your clients.
B) CELLULAR PHONE w/ a Beefy Plan – Nowadays, everyone has a cell 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 accessible to your clients 24/7 – not just nights and weekends.