Top 7 Mistakes Rookie Real Estate Agents Make

Every time I speak to someone about my business and career, it always comes up that “they’ve thought about engaging in real estate” or know anyone who has. With so many people thinking about getting into property, and getting into property – why aren’t there more lucrative Realtors on the planet? Well, there’s only so much business to go around, so there can only 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 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 their careers. New REALTORS bring many great qualities to the table – plenty of energy and ambition – however 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 Real Estate Brokerage they’ll join when their shiny new license will come 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 one of the key ingredients is your business plan. Your organization plan can help you define where you’re going, how you’re getting there, and what it does take for you to make your real estate business a success. Here are the requirements of worthwhile business plan:

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

B) Services You Provide – you don’t desire to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you want 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 several transactions.

C) Market – that are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and jot down EVERY expense which you have – gas, groceries, cell phone, etc… Then write down www.floridasfavoritehi.com taking on – board dues, increased gas, increased cell usage, marketing (very important), etc…

E) Funding – how are you going to 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 get the word out about your services? The simplest way to market yourself would be to your own sphere of influence (people you understand). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a fairly big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, Insurance Agent, 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 a person 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 can participate of the credit as 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 can take over the world! They’re both focusing on the right part of their business – marketing – but they’re doing one another 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 make a simple phone call and a fresh agent can bind the house in less than one hour. However, because it normally takes at least fourteen days to close a loan, if you are using an inexperienced lender, the result can be disastrous! You might 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 your business. Using good, experienced players for the closing team can help you infinitely in conducting business worthy of MORE business…and on top of that, 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 quantity of time you’ll invest.) However, you’ll run into 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 definitely 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, automagically) Board of Realtors will allow you to pay for 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 will have 99% of the virginia homes in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan – Nowadays, everyone has a cell phone. But not everyone has a plan that will facilitate the amount 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 just nights and weekends.