Every time I talk to someone about my business and career, they always say “they’ve been thinking about going into 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 real estate agents in the world? Well, there’s only so much business to do, so there can only be so many real estate agents in the world. However, I feel that the inherent nature of the business and how different it is from traditional careers makes it difficult for the average person to successfully transition into the real estate business. As a real estate agent, I see many new agents coming into my office for an interview and immobilienmakler kiel sometimes to start their careers. New real estate agents bring many great qualities – lots of energy and ambition – but they also make many common mistakes. Here are the 7 most common mistakes novice real estate agents make.
1) No business plan or business strategy
So many new agents put a lot of emphasis on which real estate agent they will join when their shiny new license comes in the mail. Why? Because most new real estate agents have never been self-employed – they have only worked as employees. They mistakenly believe that getting into the real estate business “gets a new job.” What they lack is that they are on the verge of starting their own business. If you’ve ever opened the doors of ANY business, you know that one of the most important parts is your business plan. Your business plan helps you define where you’re going, how you’re going to get there, and what you need to make your real estate business a success. Here are the basics of a good business plan:
A) Goals – What do you want? Make them clear, concise, measurable and achievable.
B) Services you offer – you don’t want to be the ‘jack of all trades and master of nothing’ – choose residential or commercial properties, buyer/seller/tenant and what areas you want to specialize in. New Residential Properties Real estate agents typically have the most success with buyers/renters and then move on to listing homes after completing a few transactions.
C) Market – who are you marketing yourself to?
D) Budget – think of yourself as a “new real estate agent, Inc.” and write down EVERY expense you have – gas, groceries, cell phone, etc… Then write down the new expenses you incur – shipboard dues , increased gasoline, increased cell phone use, marketing (very important) etc…
E) Funding – how will you pay your budget with no income for the first (minimum) 60 days? With the goals you have set, when will you break even?
F) Marketing plan – how will you publicize your services? The most effective way to market yourself is in your own sphere of influence (people you know). Make sure you do this effectively and systematically.
2) Not using the best possible closing team
They say the greatest businessmen surround themselves with people smarter than themselves. It takes quite a large team to complete a transaction – buyer’s agent, listing agent, lender, insurance agent, titles officer, inspector, appraiser, and sometimes more! As a real estate agent, you are in a position to refer your client to anyone you choose, and you should ensure that whoever you contact is an asset to the transaction and not someone who causes you more of a headache . And the closing team you contact or put your name on is there to make you shine! If they do well, you get a portion of the credit for referring them into the transaction.
The deadliest duo out there is the new real estate agent and the new mortgage broker. They get together and decide that through their combined marketing efforts, they can take on the world! They’re both focused on the right part of their business – marketing – but they’re doing each other a disservice by choosing to do business with each other. Referring you to a bad insurance agent can cause a minor hiccup in the transaction – you make a simple phone call and a new agent can tie the property up in under an hour. However, since it typically takes at least two weeks to complete a loan, using an inexperienced lender can result in disastrous results! You may find yourself in a position where you are “begging for a contract renewal” or worse, being denied a contract renewal.
A good closing team usually knows more than just their role in the transaction. That’s why you can reach out to them with questions, and they’ll step in (quietly) when they see a potential bug — because they want to help you and get more from your business in return. Putting good, experienced players on your finishing team will help you infinitely in making deals that are worth MORE deals… and best of all, it’s free!
3) Not arming yourself with the necessary tools
Starting out as a real estate agent is expensive. In Texas, the license alone is an investment ranging from $700 to $900 (not counting the time you will be investing). However, you will incur even more expense when you arm yourself with the necessary tools of the trade. And make no mistake – they are necessary – because your competitors are definitely using every tool to help THEM.
MLS access
Is probably the most expensive necessity you will come across. You can pay for MLS access by joining your local (and by default state and national) board of realtors, and in Austin, Texas it costs about $1000. However, do not skimp in this area. MLS access is one of the most important things you can do. This sets us apart from immobilienmakler the average seller – we don’t sell homes, we feature all the homes we have available. With MLS Access, you have 99% of the homes for sale close by to show your clients.
B) Handy with a beefy plan
Nowadays everyone has a cell phone. But not everyone has a plan that facilitates the level of use that real estate agents require. Plan at least 2000 minutes per month. You want and need to be available to your customers around the clock – not just at night and on weekends.