While the path to becoming a real estate agent is a challenging endeavor, it can be a quite rewarding and fulfilling career choice if you put in the necessary work. However, attaining your real estate license is only half the battle. Before you can start selling houses, you have to develop a sufficient business plan to build a reliable client base.
Real Estate is a Growing Profession
According to the Bureau of Labor Statistics, employment for real estate agents is expected to grow by at least 7% by 2028, making it one of the most promising professions for young professionals to get into. However, while many young real estate agents are full of ambition, energy, and hard work ethics, they sometimes lack the common knowledge and know-how that only comes with experience.
So if you’re just starting your career in real estate, here are five common mistakes new real estate agents make that you must avoid.
No Bussiness Strategy
As a real estate agent, you aren’t just starting a new job, you are starting your own business. Therefore it is essential to develop a strong business plan to help guide you down the right path. Too many new agents make the mistake of diving headfirst into the industry without any clear direction. It is crucial to set clear and attainable goals and develop a plan to reach them. It is important to consider what services you will offer, develop an effective social media marketing strategy, and figure out a budget for your business.
Poor Financial Planning
As stated above, part of a successful business plan is learning how to budget. However, another common mistake made by new agents is expecting to make a bunch of money right away. The truth is you can go up to almost two months without making a single dime. Therefore it is essential to have enough money to cover expenses before hitting your first big payday.
Poor Time Management
Remember, as a real estate agent, you are essentially your own business, so it is important to treat it like one. However, when you are first starting out, it is hard to hold yourself accountable, and it is easy to get distracted, especially when you live at home. If you don’t have quiet office space, consider getting out of the house to work at a coffee shop or library. Changing sceneries could be just what you need to mind some motivation. Also, make it a point to remember your goals and work towards them.
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Not Finding a Niche
As much as you want to do it all, it’s just not feasible. It is important to find a specific niche within the real estate industry and put all your effort into it. Narrow down your ideal client to discover your target audience. Not only will narrowing down your services improve your marketing efforts, but you’ll have a strong chance of becoming an expert in your respective field.
Failing to Properly Communicate With Clients
Not communicating with your clients is the biggest mistake you can make as a real estate agent. Lack of communication tells the client that you don’t care, which will make them move on to one of your competitors. Not only will you lose that client, but you will lose any possibility of a referral. However, if you reach out to your clients and make them feel special, the word will get around, and you will not only make sales but build a loyal client base.
Not Turning Down Overpriced Listings
Of course, when you’re just starting out, it is hard to say no and turn down potential clients. However, if you know that the listing is overpriced and the sellers won’t budge, it is not worth your time or effort. Don’t waste your time trying to make an impossible sale when you can be using that time to make money elsewhere.
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Don’t Get Discouraged
As a new real estate agent, you are going to have plenty of ups and downs. It is essential to not harp on your mistakes but learn from them and move on. As long as you work hard and stay persistent, you will be successful.
