REAL ESTATE AGENT: The Samurai Way
Every time I talk 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 real estate – why aren’t there more successful Realtors on earth? Well, there’s only so much business to go around, so there can only just be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it really is from traditional careers, makes it difficult for the average indivdual to successfully make the transition in to the Real Estate Business. As a brokerage, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New REALTORS bring a lot of great qualities to the table – lots of energy and ambition – however they also make a lot of common mistakes. Here are the 7 top mistakes rookie REALTORS Make.
1) No Business Plan or Business Strategy
So many new agents put all their emphasis on which PROPERTY Brokerage they’ll join when their shiny new license comes 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 true Estate business is “obtaining a new job.” What they’re missing is that they are about to get into business for themselves. If you’ve ever opened the doors to ANY business, you know that among the key ingredients is your business plan. Your business plan can help you define where you’re going, how you’re getting there, and what it’s going to take for you yourself to make your real estate business a success. Here are the requirements of any good business plan:
A) Goals – What would you like? Make them clear, concise, measurable, and achievable.
B) Services You Provide – you don’t want to be the “jack of most trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you would like to specialize in. New residential real estate agents tend to have the most success with buyers/renters and move on to listing homes after they’ve completed several transactions.
C) Market – that are you marketing yourself to?
D) Budget – consider yourself “new agent, inc.” and write down EVERY expense you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (essential), etc…
E) Funding – how are you going to pay for your allowance w/ no income for the initial (at least) 60 days? With the goals you’ve set on your own, when do you want to break even?
F) Marketing Plan – how are you going to get the word out about your services? The simplest way to market yourself is to your personal sphere of influence (people you understand). 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 who are smarter than themselves. It takes 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 choose, and you should guarantee that anyone you refer in will be a secured asset to the transaction, not a person who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! If they perform well, you get to participate of the credit as you referred them into the transaction.
The deadliest duo on the market is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. They get together and decide that, through their combined marketing efforts, they are able to take over the world! 94402 They’re both focusing on the proper section of their business – marketing – but they’re doing each other no favors by choosing to give each other business. In the event that you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you make a simple phone call and a new agent can bind the property in less than an hour. However, because it normally takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.
An excellent closing team will typically learn than their role in the transaction. Due to this, you can turn to them with questions, and they’ll step in (quietly) if they see a potential mistake – because they want to help you, and in return receive more of one’s business. Using good, experienced players for your closing team can help you infinitely in conducting business worthy of MORE business…and best of all, 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 may cost between $700 and $900 (not considering the volume of time you’ll invest.) However, you’ll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And do not fool yourself – they’re necessary – because your competitors are using every tool to greatly help THEM.