Every time I speak to someone about my business and career, it always arises that “they’ve thought about engaging in real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors on the planet? Well, there’s only so much business to go around, so there can only 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, helps it be difficult for the average person 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 with their careers. New Real Estate Agents bring lots of great qualities to the table – plenty of energy and ambition – however they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put almost 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 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’re 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 business plan helps you define where you’re going, how you are getting there, and what it’s going to take for you yourself to make your real estate business a success. Here are the essentials of worthwhile business plan:

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

B) Services You Provide – you don’t 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 – 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 taking on – 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 will you break even?

F) Marketing Plan – how will you 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 achieve this 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 pretty 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 select, 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! When they perform well, you get to participate of the credit as you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. They gather and decide that, through their combined marketing efforts, they can take over the world! They’re both focusing on the right 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 agent, it might cause a minor hiccup in the transaction – you create a simple phone call and a fresh agent can bind the property in less than one hour. However, because Canninghill Piers Brochure takes at least two weeks to close a loan, if you use an inexperienced lender, the effect can be disastrous! You might 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. For this reason, you can turn in their mind with questions, and they will step in (quietly) if they visit a potential mistake – since they want to assist you to, and in exchange receive more of your business. Using good, experienced players for your closing team will assist you to infinitely in conducting business worthy of 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 can be an investment that may cost between $700 and $900 (not taking into account the volume of time you’ll invest.) However, you’ll come across even more expenses when you attend arm yourself with the necessary tools of the trade. And don’t fool yourself – they’re necessary – because your competition are using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you are going to run into. Joining your local (and state & national, by default) Board of Realtors will allow you to purchase MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp of this type. 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 MLS Access, you will have 99% of the virginia homes in your area open to present to your clients.

B) Mobile Phone w/ a Beefy Plan – These days, everyone has a cellular phone. But not everyone includes a plan that will facilitate the amount of use that Real Estate Agents need. Plan on getting at least 2000 minutes per month. You want, and need, to be accessible to your clients 24/7 – not only nights and weekends.