Every time I speak to someone about my business and career, it always arises that “they’ve thought about getting into property” or know anyone who has. Best Properties for Rent and Sale in Boston With so many people considering getting into real estate, and getting into real estate – why aren’t there more successful Realtors on the globe? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. Personally i think, however, that the inherent nature of the business enterprise, and how different it is from traditional careers, makes it difficult for the average indivdual 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 plenty of great qualities to the table – lots 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 Real Estate 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, think that getting into the true Estate business is “obtaining a new job.” What they’re missing is that they are about to get into business for themselves. If you’ve ever opened the doors to ANY business, you understand that one of the 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 desire to be the “jack of all 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 then move on 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 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 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 own sphere of influence (people you know). Make sure you achieve this effectively and systematically.
2) Not Using the Best Possible Closing Team
They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes 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 choose, and you should ensure that anyone you refer in will undoubtedly be a secured 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 can participate of the credit as you referred them into the transaction.
The deadliest duo out there is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. 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 each other no favors by choosing to provide each other business. If you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you make a simple phone call and a fresh agent can bind the property in less than one hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the effect can be disastrous! You might find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.
An excellent closing team will typically learn than their role in the transaction. For this reason, you can turn to them with questions, and they’ll 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 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 come across even more expenses when you go to arm yourself with the required tools of the trade. And do not fool yourself – they are necessary – because your competition are definitely using every tool to help THEM.
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