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. Best Properties for Rent and Sale in San Francisco With so many people considering getting into real estate, and getting into property – why aren’t there more successful Realtors on earth? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it really is from traditional careers, makes it 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 with their careers. New Real Estate Agents bring plenty of great qualities to the table – plenty of energy and ambition – but they also make a lot of common mistakes. Here 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 PROPERTY Brokerage they will join when their shiny new license will come in the mail. Why? Because most new Real Estate Agents have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe 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 among the key ingredients can be your business plan. Your business plan can help you define where you’re going, how you are getting there, and what it does take for you to make your real estate business a success. Here are the requirements of any good 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 want 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 a few transactions.
C) Market – that are you marketing yourself to?
D) Budget – consider yourself “new real estate agent, inc.” and write down EVERY expense which you have – gas, groceries, cellular phone, etc… Then write down the brand new expenses you’re taking on – 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 initial (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 obtain the word out about your services? The simplest way to market yourself is to your personal 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 pretty 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 be certain that anyone you refer in will undoubtedly be a secured asset to the transaction, not someone who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you can participate of the credit as you referred them in to the transaction.
The deadliest duo on the market is the New 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 one another no favors by choosing to give each other business. In the event that you refer in a bad insurance professional, it might cause a minor hiccup in the transaction – you create a simple phone call and a new agent can bind the property in less than one hour. However, because it normally takes at least fourteen days to close a loan, if you use an inexperienced lender, the effect can be disastrous! You may find yourself in a position of “begging for a contract extension,” or worse, being denied a contract extension.
A good closing team will typically know more than their role in the transaction. For this reason, you can turn to them with questions, and they will step in (quietly) if they visit a potential mistake – since they want to assist you to, and in return receive more of one’s business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business…and best of all, it’s free!
3) Not Arming Themselves with the required Tools
Getting started as an agent is expensive. In Texas, the license alone can be an investment that will cost between $700 and $900 (not taking into account how much 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’re necessary – because your competition are definitely using every tool to help THEM.
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