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 thinking about getting into property, and getting into real estate – why aren’t there more lucrative Best Properties for Rent and Sale in El Paso Realtors on the globe? Well, there’s only so much business to go around, so there can only be so many REALTORS in the world. Personally i think, 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 indivdual 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 a lot of great qualities to the table – plenty of energy and ambition – but 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 almost all their emphasis on which Real Estate 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’re about to get into business for themselves. If you have ever opened the doors to ANY business, you know that one of many key ingredients can be your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it does take for you 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 want to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you would like 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 several transactions.
C) Market – that 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 taking on – 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 for yourself, when do you want to break even?
F) Marketing Plan – how are you going to obtain the word out about your services? The MOST effective way to market yourself would be to your own sphere of influence (people you know). Make sure you do so 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 a Real Estate Agent, you are in the position to refer your client to whoever you select, and you should be sure that anyone you refer in will be an asset to the transaction, not someone 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 in to the transaction.
The deadliest duo out there is the New AGENT & New Mortgage Broker. They gather and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the right 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 agent, it might result in a minor hiccup in the transaction – you create a simple phone call and a new agent can bind the property in less than an hour. However, because it typically 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 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) if they see a potential mistake – since they want to assist you to, and in exchange receive more of one’s business. Using good, experienced players for the closing team can 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 is an investment that will cost between $700 and $900 (not considering 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 greatly help THEM.
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