Mistakes to Avoid When Starting a Real Estate Career
Before you can even sell a house, you have to sell yourself as an expert of your chosen area and its housing market. According to the National Association of REALTORS (NAR), 87% of buyers and 89% of sellers used the services of a real estate agent in their housing transactions.
As you are taking the first steps along your real estate career path, you are bound to stumble. Avoid tarnishing your reputation by knowing the most common beginner mistakes in real estate.
1st: Not having a business plan
When you become a real estate agent you’re essentially starting your own business. However, many real estate professionals have no clear goals or timeline for achieving their goals. Without a plan, it’s far too easy to spend time and money in ways that don’t pay off. Creating your real estate business plan will allow you to identify your short and long-term goals and outline how you plan to achieve them
2nd: Lack of Proper Funding
Your well crafted business plan should have your budget. You must follow your budget. However, the budget itself does not address the important aspect of funding. Most new agents will want to have three months of reserves in savings before going into full time agency. However, money in the bank isn’t the only way to answer the question of funding. Not having this reserve is another of the Common Mistakes New Real Estate Agents Make. When you start your new business, you may not earn any income for the first sixty days.
3rd: Expecting immediate success
Set realistic goals for yourself. A lot of new real estate agents expect success straight away. Statistically, it could take two months before your first real sale. That is why you must meticulously plan your budget and keep your goals doable within your means. On average, it could take two years before you start making a decent amount from your real estate business.
4th: Choosing a brokerage for the wrong reason
One of the most important decisions you’ll make as a new real estate is deciding which brokerage to hang your hat at. Real estate agents choose their managing broker for a number of reasons—they have a good reputation, they offer the most competitive split, the office is close to their house, and so on. While those are all important, don’t forget that your broker should help new real estate professionals establish successful careers.
5th: Not focusing marketing efforts on the most effective areas
One reason new real estate agents end up overspending on marketing is because they spend in the wrong place. Print marketing—newspapers, real estate magazines, etc.— may seem like the most visible channels. But in today’s marketplace, they don’t always yield high returns. Instead of shelling out precious capital in the beginning, sit down and list who you know in your personal sphere of influence. Promote your new real estate business on social networks like LinkedIn and Facebook. Publish articles and attend networking events. Take every chance you get to get your name out there and let your contacts know you’re open for business. Focusing on building out your referral network will serve you well in the long run.
A new career in Real Estate is very exciting. Starting a Real Estate business can offer you opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a new Real Estate career can also be a very scary prospect. However, if you avoid these mistakes, then you’ll be way ahead of the competition!