Being a real estate agent can be a lucrative career, and some real estate agents have even managed to achieve millionaire status. But this is the glamorous side of real estate, the side that often attracts new real estate agents to the industry. The unfortunate part is that most new agents arrive with big business dreams that end up being shattered during their first year in business.
We have put together what we believe to be some of the most important factors that lead to the failure of a new real estate agent. Make sure to avoid these mistakes at all costs!
Not having a financial plan
New agents often forget that commissions are a lengthy process. It can take several weeks or even months to close a deal. It takes time to generate that big commission check and even more time to arrive in the mail. Often times, new agents forget that they need money in the bank to last them for several months until a steady stream of commissions arrives. Your first few months will be tough, and you’ll be lucky if you get your first sale within the first 90 days. Without planning, new agents deplete their savings, causing them to panic as they wait for the next deal to close. This is one of the main reasons new realtors leave the industry – they can’t hold their boat together long enough for the money to start coming in.
Solution: Keep at least six months of savings in your bank account before jumping into the real estate game. Make sure you have enough to cover food, expenses, and overhead until you can create positive cash flow. This way, you can transition into your new agent role without losing your shirt in the process.
Not being aggressive enough
New real estate agents can be self-conscious and nervous. Not having made any deals, or even the idea of being a salesperson, scares them! But the reality is that businesses are not going to knock on your door. You really have to put in a lot of effort to get those deals done.
Agents must swallow their fears and jump into the industry knowing that it will take time to learn and become professionals. You will absolutely screw it up, but in the end you will learn and grow from it.
Solution: Get out there and be aggressive. Every day you need to do at least five new things to boost your business. Whether you’re teaching yourself a new marketing technique, finding new clients, or attending a networking function, every new day is another opportunity to try to get your name out there and grow your business.
Being a scattered brain
Having a plan is the key to success for any new realtor, indeed any realtor, new or old. Without a plan, your hard work will spill over into so many tasks that nothing really gets done right and everything runs the risk of getting done wrong.
Solution: Get a comprehensive plan together. We recommend that any new realtor should have at least three plans: a financial plan, a business plan, and a marketing plan. These three documents should help you keep your business on track. One important thing to develop in all of your plans is a weekly action list. Divide all the tasks you need to do during the year and break them down into small tasks that you can do each week. This way, you are not overwhelmed with where to start with your plans, but instead have a clear path of action to take every day.
Conclution
Being a real estate agent can be one of the most rewarding freelance careers one could ask for. But to achieve six-figure profits, you really have to focus to avoid cheating. These three tips for new realtors should help any new realtor avoid first-year failure in the industry.
