If you’ve just started out as a real estate agent, congratulations! It’s a great career choice that can be very rewarding. There’s also the potential to earn a lot of money.
So even though it may be harder to reach your goals in real estate than simply getting your license and joining a brokerage, it is still possible. You just have to work harder, be dedicated, and willing to learn from your mistakes.
We created a list of some of the most common mistakes new real estate agents make so you can identify if you’re making them and make corrections as needed.
You must earn your real estate license as your first task in your new career as an agent. This will allow you to sell real estate. Getting experience in a real estate office is a great way to prepare for the licensing process.
Formal training and cost
The requirements for becoming a licensed real estate agent vary by state, but all states require completion of a certain number of hours of training and passing a licensing exam. You will also need to submit your real estate agent application, undergo a background check, and be fingerprinted. The cost of becoming a licensed real estate agent ranges from $500 to $1200.
Some states allow you to take online courses.
Start networking at real estate agent classes!
Once you have your real estate license, you will be able to spend time with a real estate brokerage under the supervision of a broker. The amount of time required varies.
2. Agents Rushing in
If you want to be a successful real estate agent, you need to learn to delegate. Trying to do everything yourself, from maintaining a web presence to marketing to continuing education, can be overwhelming and end up costing you time and money without yielding any results.
Before anything, sit down and make a business plan.
Business plan for real estate agents
A business plan is a document that outlines your company’s future goals and experiences. It includes your company’s mission statement, values, strengths and weaknesses, investment strategies, marketing and branding plans, financing, backup plans, and exit strategy. Your business plan should be revisited and updated regularly to ensure its effectiveness.
As a first step in starting out as an agent, you may want to decide on the specific services that you will provide and pick a specialization. Try asking yourself these questions:
- Will you specialize in residential or commercial?
- Will you work with first-time homebuyers?
- Do you work with investment property buyers? The commercial real estate industry is different from the residential real estate industry.
Now use these answers to guide the following steps.
3. Expecting Immediate Success
Cases of rookie real estate agents who close deals and achieve success are the exception, not the rule. Rookie agents typically lack the connections, experience, or timing needed for success.
It usually takes months to close your first deal, even if you’re doing everything right. It may take up to two years to make what you would call “good money” in real estate.
This is not to discourage you from having ambition, but to remind you to plan for the most likely scenario and prepare accordingly to increase your chances of success.
4. Unfocused Marketing
It can be tempting to spend a lot of money on TV ads, flyers, Google Ads, Facebook ads, and other forms of advertising when you first start out.
One of the easiest ways to burn through all of your funds is to spend it all at once.
It is important to understand your niche before beginning any marketing efforts. This can be accomplished by asking “W” questions, which are the same type of questions a good journalist would ask.
- What is my real estate niche?
- Where do the members of my niche go to get real estate advice?
- When are they most likely to look for a real estate agent?
- Which forms of media are they most likely to consume?
- Why would they choose my services over my competitors?
- How can I start providing value to them from day one?
It takes time for people to recognise your personal brand, so your marketing shouldn’t be a one-off effort. You should have a consistent marketing budget to make sure you stay relevant in people’s minds.
You need to brand your agency. We have a blog that may help guide you through the process of branding your agency. Many community colleges offer inexpensive courses on marketing, and many agents learn marketing on the job.
If marketing your real estate business is something you’re interested in, you may want to consider hiring a professional to help you with it. This is because marketing takes up a lot of time and effort, and as a result, you may want to focus your attention on your goals of being a real estate agent and business owner.
5. Business plan
It is time to write down your business plans and fine-tune them. Follow these steps or look for a guide.
- Write an executive summary of the company
- Describe company goals and how to achieve them
- Explain the market analysis of your location
- Describe your employees and their qualifications
- Summarize what services your business offers
- Outline the intended marketing strategy
Now put the plan into action!
6. Coming unprepared
You shouldn’t expect success to come easily, even if you have gotten your real estate license. Having a good plan will help you be successful.
Before you decide on a location and set up shop, make sure you:
- I have researched your neighbourhood and its amenities so that I can make tailored recommendations to you.
- know your niche
- Subscribe to a real estate blog or podcast to ensure you’re always up-to-date on changes in the industry.
And remember you are in a customer service profession. That means:
- answering calls and emails in a timely manner
- A guide is someone who helps you through an unfamiliar or frustrating experience.
- adhering strictly to state real estate rules and laws
If you are considering hiring an assistant, you should look into hiring a virtual assistant. A virtual assistant is typically a cheaper option than hiring a traditional assistant.
When you are starting out in real estate, you are going to need to spend before you can turn a profit. Expect no income in the first three months, so plan accordingly and make sure you have savings set aside for the following expenses:
- office supplies
- organizational dues
- printing of business cards and marketing tools
- a Multiple Listing Service (MLS) subscription
- a phone
- transportation (e.g. car and gasoline)
The most important thing to keep in mind when creating a budget is the bare minimum. This includes things like food, water, and shelter. Any money you have left over after covering these expenses should be put towards marketing.
8. Not having an engaging website
Ninety-three percent of real estate agents have working websites, but nearly half of real estate firms are concerned they will fall behind with technology.
If you don’t want to take time away from your real estate business to learn about computer programming and website design, it’s important to hire someone who already knows how to do those things. Just like you would encourage people to hire a real estate professional because they know more about the real estate industry than the average person, you should hire a marketing professional to handle your marketing tasks.
Most people are going to find you through your website or your yard signs. In addition, digital marketing is cheaper and more effective than traditional print media as long as you:
- make yourself visible in search engine results (SEO)
- add digital tools and informative resources
- make sure your website offers captivating content
- It is important to make sure that your website follows the current digital marketing standards.
Use internet marketing to build your brand and engage with your audience through social media and your personal website.
There are professionals who can take care of your online marketing so that you can focus on what you’re good at: building relationships and networking with other real estate agents.
9. Digital Marketing
Although digital marketing might seem easy for some real estate agents, it can be too difficult or complicated for new real estate agents.
By following the guidance of real estate internet marketing experts, you can avoid making many of the mistakes new agents make.
If you’re in the real estate business and looking to grow your business, our team can help. We offer free consultations to help you get started on the right path.
Get a head start on your competition by calling us today!
10. Marketing Strategies
This list provides some important real estate marketing techniques, which may help new agents sharpen their marketing plan.
Good photographs are necessary to have. Hiring a photographer will be worth it in the end.
Video tours are a great way for people to get a better idea of the floor plan and the home flow. A professional videographer is very important.
and give a really unique perspective Drone shots are an excellent way to show rural properties or large estates in a unique way.
The majority of your business will come from your website. It’s important to invest money into making it perfect since a broken or slow website will frustrate customers. With a great website, you’ll get more leads than with a subpar one. This is especially important for new agents.
Collect emails from your website’s visitors to use for sending newsletters or listings of homes for sale. Be strategic about who you send these emails to, based on your target audience.
If you want to bring people to your real estate blog or vlog, try using SEO-friendly keywords and writing about local events. Vlogs are great, but make sure they look professional! Some real estate agents hire professional writers to help them create effective blogs.
! Newsletters are typically short with tips, interesting articles, and listings. They are typically sent through mail or email.
Facebook can be a very effective way of attracting people for little cost. Facebook advertising can be targeted so that it is cost-effective. Make short posts three to four times a week with tips and interesting tidbits. Get people to interact with your posts by asking questions or getting them to respond.
To reach a younger demographic on Instagram, post great photos and hold giveaways, contests, or repost other peoples’ content.
. If you’re looking to establish yourself as an expert on a particular topic, Quora is a great forum to do so. With thousands of topics to choose from, you’re bound to find one that you’re passionate about. Not to mention, Quora is also great for generating leads.
Zillow is a real estate agent’s best friend. It pulls listings directly from the MLS, so you don’t have to worry about outdated information. Plus, it’s important to have good photos on your listing if you want to stand out.
Neighborhood tours are a great way to show potential clients why your location is a great place to live. By making connections with people in the community, you can help them see the benefits of living in your neighborhood.
Send personalized postcards to your old, current, and potential clients as a reminder that you are available to help them. By building a rapport with your clients, you will be more likely to receive referrals and new business.
If you want to generate more leads, try door hangers in hot neighborhoods. This will remind people that you are available and help you get more business.
to a very wide audience. Billboards are expensive. Save this for your million-dollar announcements or to promote your brokerage to a very wide audience.
Make sure to ask for referrals and handwrite thank you notes after every sale or referral. Creating a positive impression is key when it comes to word-of-mouth marketing.
A care package is a small gift that is given to a customer or client. The gift is usually something that is related to the company or service that they have used. For example, a company might give out care packages that include tickets to a game or flowers.
If you want to get a job with a major company, it’s a good idea to put together an information package with tourism information, maps, and marketing materials about yourself. You should then deliver it to the human resources department.
Open houses – an old stand-by that sellers expect.