Every time I speak to someone about my business and career, it always comes up that “they’ve thought about getting into real estate” or know anyone who has. With so many people considering getting into property, and getting into property – why aren’t there more successful Realtors on the planet? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. Personally i think, 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 Broker, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New REALTORS bring plenty of great qualities to the table – plenty of energy and ambition – however they also make a lot of common mistakes. Here are the 7 top mistakes rookie REALTORS Make cape royale.

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 Real Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you have ever opened the doors to ANY business, you understand that one of many key ingredients can be 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 any good business plan:

A) Goals – What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide – you do not desire to be the “jack of most trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you need to specialize in. New residential real estate agents tend to have probably the most success with buyers/renters and 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 agent, inc.” and write down EVERY expense that you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re taking on – board dues, increased gas, increased cell usage, marketing (essential), etc…

E) Funding – how will you pay for your allowance w/ no income for the first (at the very least) 60 days? With the goals you’ve set for yourself, when will you 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 greatest 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 Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the positioning to refer your client to whoever you select, and you should ensure that anyone you refer in will be a secured asset to the transaction, not somebody who provides 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 take part of the credit as you referred them into the transaction.

The deadliest duo out there is the New AGENT & New Mortgage Broker. 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 part of their business – marketing – but they’re doing one another no favors by choosing to give each other business. If 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 one hour. However, because it typically takes at least fourteen days to close a loan, if you use an inexperienced lender, the result can be disastrous! You might find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.

A good closing team will typically learn than their role in the transaction. Due to this, you can turn in their mind with questions, and they’ll step in (quietly) if they see a potential mistake – since they want to help you, and in exchange receive more of one’s business. Using good, experienced players for the closing team can help you infinitely in conducting business worth MORE business…and on top of that, it’s free!

3) Not Arming Themselves with the required Tools

Getting started as an agent is expensive. In Texas, the license alone can be an investment that will cost between $700 and $900 (not considering the quantity of time you’ll invest.) However, you’ll run into even more expenses when you attend arm yourself with the required tools of the trade. And do not fool yourself – they are necessary – because your competitors are using every tool to greatly help THEM.g