Every time I talk to someone about my business and career, it always arises that “they’ve thought about engaging in property” 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 in the world? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. I feel, however, that the inherent nature of the business enterprise, and how different it is from traditional careers, helps it be difficult for the average indivdual 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 lots of great qualities to the table – plenty 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 Real Estate Brokerage they’ll join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never experienced 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 are about to get into business for themselves. If you have ever opened the doors to ANY business, you know that one of the key ingredients can be your business plan. Your business plan can help 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 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 realtors tend to have probably the most success with buyers/renters and then move on to listing homes after they’ve completed several transactions.
C) Market – who are you marketing yourself to?
D) Budget – consider yourself “new real estate 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 budget w/ no income for the initial (at least) 60 days? With the goals you’ve set on your own, when do you want to break even?
F) Marketing Plan – how will you get 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 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 takes a fairly big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, INSURANCE PROFESSIONAL, 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 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,” is there to make you shine! When they perform well, you can participate of the credit because you referred them in to the transaction.
The deadliest duo on the market is the New Real Estate Agent & New Mortgage Broker. They gather and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the right part of their business – marketing – but they’re doing one another no favors by choosing to give each other business. If 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 new agent can bind the property 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 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 learn than their role in the transaction. Because of this, you can turn in their mind with questions, and they’ll step in (quietly) if they visit a potential mistake – because they want to help you, and in exchange receive more of one’s business. Using good, experienced players for your closing team will let 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 a Real Estate Agent is expensive. In Texas, the license alone is an investment that may cost between $700 and $900 (not considering the volume of time you’ll invest.) However, real estate marketing ‘ll come across even more expenses when you attend arm yourself with the required tools of the trade. And do not fool yourself – they are necessary – because your competition are definitely 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, by default) Board of Realtors will help you to purchase 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 actions you can take. It’s what differentiates us from your own average salesman – we don’t sell homes, we present the homes that we supply. With MLS Access, you will have 99% of the virginia homes in your area open to present to your clients.
B) Mobile Phone w/ a Beefy Plan – These days, everyone has a cellular phone. But not everyone has 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 need, and need, to be accessible to your clients 24/7 – not only nights and weekends.