Every time I speak to someone about my business and career, it always arises that “they’ve thought about getting into real estate” or know anyone who has. With so many people considering getting into property, and getting into property – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to go around, so 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 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 brokerage, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table – plenty of energy and ambition – but 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 almost all their emphasis on which PROPERTY Brokerage they will join when their shiny new license comes in the mail. Why? Because most new REALTORS have never experienced business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the Real Estate business is “obtaining a new job.” What they’re missing is that they’re about to get 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’s going to take for you yourself to make your real estate industry a success. Here are the essentials of worthwhile business plan:

A) Goals – What would you like? Make them 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 wish to specialize in. New residential real estate agents 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 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 budget 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?

https://www.woni.ch/de/immobilie/Mieten/Wohnung – Haus/Ort-St. Gallen (SG)/1 -Zimmer ) Marketing Plan – how will you obtain the word out about your services? The simplest way to market yourself would be 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 who are smarter than themselves. It requires a pretty big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As an agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be a secured 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! When they perform well, you get to participate of the credit because you referred them into the transaction.

The deadliest duo on the market is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. They get together and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the proper section of their business – marketing – but they’re doing each other no favors by choosing to provide each other business. If you refer in a bad insurance agent, 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 are using an inexperienced lender, the result 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 learn than their role in the transaction. For this reason, you can turn in their mind with questions, and they will step in (quietly) when 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 worth MORE business…and on top of that, it’s free!

3) Not Arming Themselves with the required Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment which will cost between $700 and $900 (not taking into account the number of time you’ll invest.) However, you’ll come across even more expenses when you go to arm yourself with the necessary tools of the trade. And do not fool yourself – they’re necessary – because your competition are using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you’re going to run into. Joining your neighborhood (and state & national, by default) Board of Realtors will help you to purchase MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp of this type. Getting MLS access is probably the most important things you can do. It’s what differentiates us from your average salesman – we don’t sell homes, we present the homes that we have available. With MLS Access, you will have 99% of the homes for sale in your area available to present to your clients.

B) CELLULAR PHONE w/ a Beefy Plan – These days, everyone has a cellular phone. But not everyone includes a plan that will facilitate the level of use that Real Estate Agents need. Plan on getting at the very least 2000 minutes per month. You want, and need, to be accessible to your clients 24/7 – not only nights and weekends.