The real estate profession is considered one of the most rewarding but still many real estate agents fail to stay within the industry. Even top real estate brokers admit that the average number of successes are quite low in the real estate profession. A large portion of new realtors end up leaving the industry within their first 5 years.
Many realtors don’t make much money, they have no benefits and they have no retirement plan. However, there are lots of top-tier agents who make a lot of money and also have a much better retirement plan than other realtors. If you also aspire to make a career in this profession, have a look at what successful agents do, and what mistakes unsuccessful ones make.
Why Be a Realtor?
Being a real estate agent has some great advantages and the largest downside to this career path is the difficulty to become an above-average agent. Here are some of the benefits, and we will go into the downsides as well:
- You do not need a college degree.
- You can make your own schedule and work on your own time.
- The amount of time and effort can decide your income.
- Ability to build strong relationships with people.
Now the disadvantages of choosing a career in real estate:
- Has a steep learning curve
- An abundance of Competition
- Plenty of room for error
There are not many barriers to entry into the real estate industry, yet the largest problem for new agents is staying within the career. Most real estate agents leave the industry between the first and fifth years of their careers. These are the main mistakes that you want to avoid and some tips to stay within the industry.
Mistakes To Avoid
Being a Part-time Agent
One of the biggest mistakes you can make is starting a real estate career as a part-time job.
Real estate is an ongoing job and demands a significant amount of time. You needed to neatly and timely complete plentiful legal and financial tasks. It matters how frequently you answer customer queries, how much time you devote to attend open houses and to market yourself.
And all these responsibilities can be accomplished successfully if you accept this profession as full-time. It’s extremely tough to continue in this profession as a part-time job.
Not Spending Correctly
Each and every business demands an ample amount of time in order to get established and flourishing. Make sure you have reserved enough savings to afford unproductive months. If you are new to the industry, it can be hard to have consistent clients and more productive months.
Don’t expect you can start selling houses and earnings in just the first few months. It involves plenty of risks and uncertainties to become a top real estate agent.
Avoiding Client Contact
Real estate is a business of people and it is based on creating a relationship with other professionals. Once you create a connection, next you need to make it flourish by regularly talking with them. Your connection building and effectively dealing with existing clients can attract more potential clients.
Be aware that one bad deal can bring those connections to your competitor’s business. The real estate industry is heavily focused on World-of-Mouth, so your reputation can make or break your career success. If you consistently do a good job, the people will recommend you to their friends and family.
The top realtors are the ones who do the best for their clients. If you can’t do the best for your clients instead of focusing on your potential commission, people will keep your effort in mind and help drive you more business.
Never sacrifice your client’s needs just for a commission. This can give the perception that you are greedy or scummy and that can travel fast with word-of-mouth.
Missing Proper Training
With this profession, having a great start allows for you to receive the best from the career. It can show you how the industry functions and aspects to grow.
How to Become A Realtor
There are a few steps you need to take before becoming a real estate agent. The first step is to learn how licenses in your state work and what licenses you will need. Then you will need to complete a course to receive your license. Then you need to find a broker to take you on as their agent.
What are Real Estate Brokers?
Think of brokers as the agency you work for. They are the company that hires you as an agent and they will most likely assist in the training process to make sure you are fully up to speed. Choosing a broker can be a tough decision, so you should research the benefits and disadvantages of your options.
If you are a new agent and do not know how to sell houses, pick the broker with the best training program. It’s the experience and education that make them better than others.
Not Thinking Long-term
Being a realtor is like owning a business. You are a salesman for real estate and no matter what broker you are working for, the job is the same. It’s your job to get clients and build your reputation.
You’re completely responsible for your income and need to pay for certain things that will be beneficial to you. You have to plan for taxes, for health insurance, for retirement, because none of that is taken care of for you.
Lacking an Online Presence
Today’s customers are very smart; they are well aware of the home selling and buying process. According to the top real estate brokers, 80 percent of home buyers begin their search online.
This makes it a huge benefit when you invest in having an online presence. This can allow you to build a stronger connection with more clients and help mold a positive reputation. If you are very active on social platforms, more potential clients will be likely to see you and contact you.
But this goes both ways, if your online presence is not as effective as your competitors then you risk the chances of losing some potential clients. Also, if many people are not satisfied with your work for them, they can have a way of sharing those negative feelings.
Another recommendation we have is to create a fully-fledged website in order to show examples of listings you’ve completed, personal certifications and licenses, other professional accomplishments. This gives a direct path for people to follow to what you can provide and to contact you for services.
Becoming a real estate professional can give you options and financial stability when you have worked for a few years and are able to build your portfolio. But the entry years can be extremely difficult to find clients, build a reputation, learn the industry, have consistency, and build relationships.
When choosing a career in real estate you should think about how to stand above your competition and what you should use to drive more clients.