Every time I speak to someone about my business and career, it always arises that “they’ve thought about engaging in real estate” or know anyone who has. With so many people considering getting into property, and getting into real estate – why aren’t there more successful Realtors in the world? Well, there’s only so much business to go around, so Best Properties for Rent and Sale in Portland there can only just be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, helps it be difficult for the average person to successfully make the transition in to 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 many great qualities to the table – lots of energy and ambition – however 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 will join when their shiny new license comes in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the Real 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 understand that one of many key ingredients can be your business plan. Your organization 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 business a success. Here are the essentials of any good business plan:
A) Goals – What do you want? Make them clear, concise, measurable, and achievable.
B) Services You Provide – you do not wish 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 ahead to listing homes after they’ve completed several transactions.
C) Market – who are you marketing yourself to?
D) Budget – consider yourself “new agent, inc.” and jot 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 (essential), etc…
E) Funding – how are you going to 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 will you get the word out about your services? The simplest way to market yourself is to your personal sphere of influence (people you understand). Make sure you achieve this effectively and systematically.
2) Not Using the Best Possible 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 undoubtedly be an asset to the transaction, not somebody who will bring you more headache. And the closing team you refer in, or “put your name to,” is there to make you shine! If they perform well, you can take part of the credit because you referred them into 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 planet! They’re both focusing on the proper section of their business – marketing – but they’re doing one another 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 create a simple phone call and a new agent can bind the house in less than an hour. However, because it normally takes at least two weeks to close a loan, if you are using 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.
A good 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 see a potential mistake – since they want to assist you to, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worth MORE business…and on top of that, it’s free!
3) Not Arming Themselves with the Necessary Tools
Getting started as an agent is expensive. In Texas, the license alone can be an investment that may cost between $700 and $900 (not considering 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 are necessary – because your competitors are using every tool to greatly help THEM.
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