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 someone who has. With so many people thinking about getting into real estate, and getting into property – why aren’t there more successful Realtors in the world? 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 is from traditional careers, helps it be difficult for the average indivdual to successfully make the transition into the Real Estate Business. As a Broker, 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 – plenty of energy and ambition – but they also make a lot of common mistakes. Listed below are the 7 top mistakes rookie REALTORS Make blossoms by the park.

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, think 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’ve ever opened the doors to ANY business, you know that one of many key ingredients is your business plan. Your business plan helps you define where you’re going, how you are getting there, and what it does take for you to make your real estate industry a success. Here are the essentials of worthwhile business plan:

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

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

. C) Market – who 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 will you pay for your allowance w/ no income for the first (at the very least) 60 days? With the goals you’ve set on your own, when do you want to break even?

F) Marketing Plan – how will you obtain the word out about your services? The MOST effective way to market yourself would be to your personal sphere of influence (people you know). 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 who are smarter than themselves. It takes a fairly big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, INSURANCE PROFESSIONAL, 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 a secured asset to the transaction, not someone who provides you more headache. And the closing team you refer in, or “put your name to,” is there to make you shine! When they perform well, you get to participate of the credit as you referred them in to the transaction.

The deadliest duo out there is the New Real Estate Agent & New LARGE FINANCIAL COMPANY. They get together and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the proper 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 agent, it might cause 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 fourteen days to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position 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 visit a potential mistake – because they want to help you, and in exchange receive more of your business. Using good, experienced players for your closing team will let you infinitely in conducting business worth MORE business…and on top of that, it’s free!

3) Not Arming Themselves with the Necessary Tools

Getting started as an agent is expensive. In Texas, the license alone can be an investment that will cost between $700 and $900 (not considering how much 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 are necessary – because your competition are using every tool to greatly help THEM.