Every time I speak to somebody about my company and profession, it comes up that”they’ve thought about getting into real estate” or know someone who has. With so many folks thinking about getting into real estate, and getting into property – why are not there more successful Realtors in the entire world? Well, there is just so much business to go around, so that there can only be so many Real Estate Agents on the planet. I feel, however, that the inherent nature of the company, and just how different it is from conventional careers, makes it hard for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see several new agents earn their way into my office – for a meeting, and occasionally to begin their careers. New Real Estate Agents bring a lot of great attributes to the table – plenty of power and dream – but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.
1) No Business Plan or Business Strategy
So many new agents put all their emphasis which Real Estate Brokerage they may join when their shiny new license comes in the mail. Why? Because many new Real Estate Agents have been in business for themselves – they have just worked as employees. They, mistakenly, think that getting in the Real Estate company is”getting a new job.” What they are missing is they’re about to go into business for themselves. If you’ve ever opened the doorways to ANY organization, you realize that one of the key ingredients is the business plan. Your business plan helps you specify where you are going, how you are getting there, and what it is going to require you to make your real estate company a success. Here are the essentials of any Fantastic business plan:
A) Goals – What do you want? Make them clear, concise, measurable, and attainable.
B) Services You Provide – you don’t wish to be the”jack of all trades & master of none” – pick residential or commercial, buyers/sellers/renters, and also what area(s) you need to concentrate in. New residential realtors tend to have the most success with buyers/renters and then move on to listing homes after they have finished a few trades.
D) Budget – believe yourself”new Four Seasons Brickell real estate agent, inc.” and write down EVERY expense which you’ve got – gasoline, groceries, mobile phone, etc.. . Then write down the brand new expenses you’re taking on – board dues, greater gas, increased cell use, marketing (very important), etc.. .
E) Funding – just how are you going to cover your budget w/ no earnings for the initial (at least) 60 days? With the goals you’ve set for yourself, when are you going to break ?
F) Marketing Plan – just how are you going to get out the word about your solutions? The MOST effective way to market yourself is to your sphere of influence (people you know). Make sure that you do so effectively and methodically.
2) Not Using the Best Possible Closing Team
They say the best businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a trade – Buyer’s Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and occasionally more! As a Real Estate Agent, you’re in the position to refer your customer to whoever you choose, and you should make sure that anyone you refer in will be an advantage to the transaction, not someone who’ll bring you more aggravation. And the closing team you refer to, or”put your name to,” are there to allow you to shine! If they function well, you must take part of their credit because you referred them into the trade.
The deadliest duo out There’s the New Real Estate Agent & New Mortgage Broker. They get together and determine , through their joint marketing efforts, they can take over the entire world! They are both focusing on the right portion of their company – marketing – however they are doing every other no favors by opting to give every additional business. If you consult with a bad insurance broker, it may cause a minor hiccup from the transaction – you make a simple phone call and a new agent can bind the property in less than one hour. However, because it generally takes at least fourteen days to close a loan, should you take advantage of an inexperienced creditor, the result can be disastrous!
A fantastic final team will typically understand more than their function in the trade. Due to this, you can turn to them with queries, and they’ll step in (quietly) when they see a possible error – because they wish to assist you, and in return receive more of your company. Utilizing good, seasoned players for your final team can assist you favorably in conducting business worthy of MORE company. . .and best of all, it’s free!
3) Not Arming Themselves with the Necessary Tools
In Texas, the permit alone is an investment that can cost between $700 and $900 (not taking into account the amount of time you will invest.) But, you’ll encounter even more expenses when you go to arm yourself with the necessary tools of this trade. And don’t fool yourself – they’re necessary – since your opponents are unquestionably using every tool to help THEM.
A) MLS Access is probably the most expensive necessity you’re going to encounter. Joining your local (and state & national, by default) Board of Realtors will allow you to cover MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp in this region. Obtaining 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 houses, we present any of the homes that we have available. Together with MLS Access, you’ll have 99% of the houses available in your area readily available to present to your customers.
B) Mobile Phone w/ a Beefy Plan – These days, everyone has a cell phone. But not everyone has a plan that will ease the degree of usage that Real Estate Agents need. You want, and need, to be available to your clients 24/7 – not just nights and weekends.