Every time I talk to someone about my business and career, it always arises that “they’ve thought about engaging in real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors on earth? Well, there’s only so much business to bypass, 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 really is from traditional careers, helps it be difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New REALTORS bring a lot of great qualities to the table – lots of energy and ambition – however they also make a large amount 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 on which Real Estate Brokerage they’ll join when their shiny new license will come in the mail. Best Properties for Rent and Sale in Jacksonville Why? Because most new Real Estate Agents have never been in business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the true Estate business is “getting a new job.” What they’re missing is that they are about to go into business for themselves. If you have ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your organization plan helps you define where you’re going, how you’re getting there, and what it does take for you yourself to make your real estate business a success. Here are the requirements of worthwhile business plan:
A) Goals – What do you want? 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 probably the most success with buyers/renters and move ahead to listing homes after they’ve completed a few transactions.
C) Market – who are you marketing yourself to?
D) Budget – consider yourself “new real estate agent, inc.” and jot down EVERY expense you have – gas, groceries, cell phone, etc… Then write down the 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 budget w/ no income for the initial (at the very least) 60 days? With the goals you’ve set on your own, when will you break even?
F) Marketing Plan – how are you going to get the word out about your services? The simplest way to market yourself is to your own sphere of influence (people you know). Make sure you achieve this effectively and systematically.
2) Not Using the GREATEST Closing Team
They say the best businesspeople surround themselves with people that are smarter than themselves. It requires 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 position to refer your client to whoever you select, and you should ensure that anyone you refer in will be a secured asset to the transaction, not a person who provides 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 take part of the credit as you referred them in to the transaction.
The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they are able to take over the world! They’re both focusing on the proper section of their business – marketing – but they’re doing each other no favors by choosing to give each other business. In the event that you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you make a simple phone call and a new 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 use an inexperienced lender, the effect can be disastrous! You may 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. Due to this, you can turn in their mind with questions, and they will step in (quietly) when they visit a potential mistake – because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will assist you to infinitely in conducting business worthy of MORE business…and best of all, it’s free!
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