Every time I talk to someone about my business and career, it always comes up that “they’ve thought about engaging in property” or know anyone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. I feel, however, that the inherent nature of the business enterprise, and how different it really is from traditional careers, makes it difficult for the average person to successfully make the transition into 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 Real Estate Agents bring a great deal of great qualities to the table – lots of energy and ambition – however they also make a large amount 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 Real Estate Brokerage they’ll join when their shiny new license comes in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the true Estate business is “getting a new job.” What they’re missing is that they are about to get into business for themselves. If you have ever opened the doors to ANY business, you understand that among the key ingredients is your business plan. Your organization plan helps you define where you’re going, how you’re getting there, and what it does take for you to make your real estate business a success. Here are the essentials of worthwhile business plan:

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

B) Services You Provide – you do not desire to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they’ve completed several transactions.

C) Market – who are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and write down EVERY expense that 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 (very important), etc…

E) Funding – how are you going to pay for your budget w/ no income for the initial (at least) 60 days? With the goals you’ve set for yourself, when do you want to break even?

F) Marketing Plan – how are you going to obtain the word out about your services? The MOST effective way to market yourself is to your own 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 best businesspeople surround themselves with people that 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 position to refer your client to whoever you choose, and you should ensure that anyone you refer in will be an asset to the transaction, not someone who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you can take part of the credit because you referred them in to the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They gather and decide that, through their combined marketing efforts, they are able to take over the planet! They’re both focusing on the right section of their business – marketing – but they’re doing one another no favors by choosing to provide each other business. If you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you create a simple phone call and a fresh agent can bind the house in less than an hour. However, because it normally takes at least fourteen days to close a loan, if you are using 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.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn in their mind with questions, and they’ll step in (quietly) when they see a potential mistake – because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worth MORE business…and best of all, it’s free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment which will cost between $700 and $900 (not taking into account the number of time you’ll invest.) However, you’ll come across even more expenses when you attend arm yourself with the required tools of the trade. And don’t fool yourself – they are necessary – because your competitors are using every tool to help THEM.

A) MLS Access is just about the most expensive necessity you’re going to run into. Joining your neighborhood (and state & national, automagically) Board of Realtors will allow you to purchase MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp in this area. Getting MLS access is among the most important things you can do. It’s what differentiates us from your own average salesman – we don’t sell homes, we present any of the homes that we have available. With Manufactured homes for sale in harbor springs mi , you will have 99% of the homes for sale in your area available to present to your clients.

B) CELLULAR PHONE w/ a Beefy Plan – Nowadays, everyone has a cell phone. But not everyone includes a plan that will facilitate the level of use that REALTORS need. Plan on getting at the very least 2000 minutes per month. You need, and need, to be available to your clients 24/7 – not only nights and weekends.