Top 5 Mistakes New Real Estate Agents Make
Real estate is a tough market. To begin with, the competition is increasing every day, especially for new real estate agents. If every successful real estate agent had to create a handbook for new real estate agents, most of them would bring different points to the table.
We have studied the success stories of real estate agents from around the globe, and dug out the top 5 mistakes new real estate agents make which have massively harmed their careers. Instead of focusing on the things you should do, it’s a better strategy to avoid the things not to do. This will certainly help you to be on the successful path within a short span of time.
Regardless of your constituency, there are some metrics which remain the same and we would like to shine some light on these metrics. So, let’s get started.
1. Not Being Prepared Enough
Most of the real estate agents who have chosen this field as a proper career don’t have much of a plan after getting into the market. Instead, they just go on believing their gut feeling. Your success in real estate is dependent upon your knowledge of the industry, things you know about the customer’s behavior, and business analytics. All of these ingredients cook up a professional dish, and you do need to devise a proper plan for it.
First of all, you should define your goals and then proceed with SWOT analysis. SWOT analysis means to identify your personal strengths and weaknesses, along with the opportunities you have in the market. The last bit of this plan should be your marketing plan, as you need to put out something which isn’t available in the market to appear unique among your competitors.
2. Not Having a Back-Up Plan
Real estate is no different than any other business when it comes to spending revenue in order to get the desired results, especially in the beginning. When you are just putting your feet in the market you should have a backup plan in place, along with a source of income. It is possible that you don’t close any deals in the starting months, so you need to ensure that you don’t fall into debt during this time period. On average, you may have to wait for 11 to 27 months in order to sell your first house. A lead converting into an actual buyer could take almost 4 to 11 months, so you should definitely have a backup plan in place.
Create a proper financial plan along with a marketing strategy. The financial plan needs to include your expenses for the next 5 to 6 months as well as the taxes. Figure out a way to prepare for this expenditure, even if you are unable to make a penny from your business. You have to know how you are going to market yourself in the market in the starting months, as it is always difficult to take the first leap. You need to create a unique identity if you want to outperform the people who have been working in the same niche for years.
3. Not Building A Brand
Word of mouth goes a long way, but as a fresh agent in the career, it is quite difficult to get the trust of potential buyers in the area. You need to create a brand, and the buyers need to feel that you are authentic and a serious agent. It is necessary to build an active online presence if you are in it for the long haul.
Create a proper website, build social media pages, get your friends and family on board to support you, and spend some money, if you can, on online marketing. People searching online for real estate agents need to know that they can obtain your services.
Attend networking events to get to know the potential buyers and observe the strategies of the successful agents in your area.
4. Not Following Up
One of the biggest mistakes new real estate agents make whether they are dealing with rentals or sales is forgetting to follow up. It mostly happens in big cities where an agent has to deal with dozens of listings and is often unable to reply to all the queries. Every ignored query is likely a missed opportunity to get a buyer, so you need to put aside plenty of time to follow up on your existing leads.
Following up on the leads you haven’t heard from is a necessity if you want a successful career in this business. You can set up alerts on your phones or on your computer. You can also use software to remind yourself after every few days about the leads that haven’t contacted you in a while.
5. Weak Communication Skills
Communication is the most important factor in the business of real estate, as customers are always changing up their minds while you are talking about the property you are presenting for rent or sale. You need to help the customers feel at ease, and they should know that their needs are being heard. Don’t just dodge their questions and boast about how good of a deal you are getting them. Present them with information that is relevant to them. Respond to their calls and messages in a timely manner. Don’t put any customer on hold, but even if you have to, apologize for the inconvenience and set an appointment with them later.
You can always improve your communication skills. You can take special classes, join support networks, or you can do it in the best possible way by talking to potential customers as much as possible. You can follow the famous proverb “fake it until you make it.” Although, you aren’t really faking it since you have already chosen real estate as a career and you can act as a successful agent.
Find the listings, choose the best deals, and ring up potential customers one by one. Talk to each one of them and remember to follow up.