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 real estate, and getting into property – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to bypass, so there can only just be so many Real Estate Agents 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 their careers. New REALTORS bring lots of great qualities to the table – lots of energy and ambition – but they also make a large amount 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 almost all their emphasis on which PROPERTY Brokerage they will join when their shiny new license will come in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the true Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you’ve ever opened the doors to ANY business, you understand that one of many key ingredients can be your business plan. Your business plan helps 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 industry a success. Here are youtube.com/tampa2enjoy of any good business plan:
A) Goals – What would you like? Make sure they are 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 realtors tend to have the most success with buyers/renters and move on to listing homes after they’ve completed a few 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 (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 do you want to break even?
F) Marketing Plan – how are you going to get the word out about your services? The MOST effective 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 position to refer your client to whoever you select, and you should make sure 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 can participate of the credit as you referred them into the transaction.
The deadliest duo out there 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 section of their business – marketing – but they’re doing each other no favors by choosing to provide 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 fresh agent can bind the house in less than one hour. However, because it typically 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 in a position 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. Because of this, you can turn in their mind with questions, and they will step in (quietly) if they see 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 can help you infinitely in conducting business worthy of 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 that may cost between $700 and $900 (not taking into account the number 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’re 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 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 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 any of the homes that we supply. With MLS Access, you should 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 includes a plan that will facilitate the amount of use that Real Estate Agents 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 only nights and weekends.