5 Mistakes Real Estate Agents Make
The National Association of Realtors reported in 2014 that 87% of all new agents fail within five years in the industry. It’s a scary number, but it’s easier to avoid being a part of that number if you can understand why those agents failed. Here, we’re going to discuss 5 common mistakes new real estate agents can run into that can make or break their careers.
Evie Brown here, your provider of tips for real estate agents wanting to find success in the industry! I’ve been a REALTOR® for eighteen years, and I’m writing these articles with the hope to help other agents find as much success in their own careers as I have in mine! If this is your first time here, welcome! Check out my other articles when you have the chance and let me know what else you’d like to see content on! And now, the list you’ve been waiting for.
Failing to Say "No"
Many new agents are eager for work, and when they don’t know how much work they can take on is it’s easy to become overwhelmed. However, it’s important to know your limits and be willing to turn down clients or referrals if you’re already stretched too thin. This can also mean turning down a client who isn’t a good fit, or refusing to work with someone when not necessary. Not knowing when to say no can waste a lot of time, energy, and effort.
Not Communicating with Clients
Another common mistake is not communicating with clients. Whether you’re working with a buyer or seller, it’s important to keep them in the loop and to promptly answer any questions they may have. You may be juggling multiple clients at once, but it’s crucial to make sure each client gets the proper attention. Ensure that you’re helping your client set expectations and keeping them up to date. Not doing so can cost you referrals from those clients, which is a huge part of building your career.
Not Continuing Your Education
Failing agents will go through the process of schooling and licensing and think that’s all the information they’ll ever need. Just because you have your real estate license does not mean you are done learning. The industry is always changing, and it’s important to stay on top of new laws, regulations, and market trends. You should also be continuously learning about new technologies and how to use them to your advantage. Failing to do so will make you seem out of touch and unprepared, which is not the impression you want to give potential clients.
No/Poor Financial Planning
Many new real estate agents do so because they hear about the money they could be making. They jump right in thinking they can start living on real estate income alone. However, Rome wasn’t built in a day, and neither are successful agents. It takes time to build up a client base and earn enough money to live off of. It’s important that you have some alternate form of income to help you survive in the first few months, and set up realistic expectations for how much you can make.
Many people assume all real estate agents are rich, but that’s not true for the majority. According to the BLS, the median income for real estate sales agents was $48,690. The lowest 10 percent of agents earned less than $24,650, while the highest 10 percent earned over $112,610. And, according to the National Association of Realtors®, agents who had two or fewer years of experience had a median income of only $9,300.
Not Getting Everything in Writing
Unfortunately, real estate agents can run into legal trouble, and failing real estate agents either don’t know or don’t plan for it. This is a mistake that can end up costing you a lot of money. Always get everything in writing, whether it’s an agreement with a client or vendor, or simply taking down contact information. A verbal agreement is not legally binding, and if something goes wrong you have no way to prove what was said or agreed upon. This is an easy way to avoid a lot of headaches, and can save you a lot of money in the long run.
These are just a few of the mistakes that new real estate agents make. Avoiding these pitfalls can help you have a successful career in real estate.
As a follow up to this article, I’ve written a blog about 5 common traits all successful real estate agent have! You can check out that blog by clicking here!