Every time I speak to someone about my business and career, it always comes up that “they’ve thought about engaging in real estate” or know anyone who has. With so many people considering getting into real estate, and getting into real estate – Best Properties for Rent and Sale in San Jose why aren’t there more lucrative Realtors on the planet? Well, there’s only so much business to bypass, so there can only just be so many REALTORS in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, helps it be 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 REALTORS bring many great qualities to the table – lots of energy and ambition – however 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 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 experienced business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the true 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 understand that among the key ingredients is your business plan. Your business plan helps you define where you’re going, how you are getting there, and what it’s going to take for you yourself to make your real estate business a success. Here are the essentials of worthwhile business plan:
A) Goals – What do you want? Make them 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 then 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 you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (very important), etc…
E) Funding – how will you pay for your allowance w/ no income for the first (at least) 60 days? With the goals you’ve set on your own, when do you want to break even?
F) Marketing Plan – how are you going to 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 do so 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 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 be sure that anyone you refer in will 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,” is there to make you shine! If they perform well, you get to 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 gather and decide that, through their combined marketing efforts, they are able to take over the world! They’re both focusing on the right part of their business – marketing – but they’re doing one another no favors by choosing to provide each other business. In the event that you refer in a bad insurance agent, it might cause a minor hiccup in the transaction – you make a simple phone call and a fresh agent can bind the house in less than an hour. However, because it normally takes at least two weeks to close a loan, if you are using an inexperienced lender, the result can be disastrous! You might find yourself in a position of “begging for a contract extension,” or worse, being denied a contract extension.
An excellent closing team will typically know more than their role in the transaction. For this reason, you can turn in their mind with questions, and they’ll step in (quietly) when they visit a potential mistake – because they want to assist you to, and in exchange receive more of your business. Using good, experienced players for the closing team will assist you to infinitely in conducting business worth MORE business…and on top of that, it’s free!
3) Not Arming Themselves with the Necessary Tools
Getting started as an agent is expensive. In Texas, the license alone can be an investment that may cost between $700 and $900 (not taking into account the volume 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 don’t fool yourself – they are necessary – because your competitors are using every tool to help THEM.
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