5 Biggest Mistakes to Avoid When Starting a Real Estate Career
Not Having A Business Plan
Becoming a real estate agent is essentially starting your own business. As such, you should start by creating a solid business plan. Your business plan should answer the following questions:
● What are your short-term and long-term goals as an agent?
● How are you going to achieve them?
● What is your timeline for achieving them?
● Where will you get funding?
● What is your budget?
● What are your marketing plans?
● What will you specialize in?
● What services will you offer?
Not Planning Financially
It costs money to start and build a business. That’s why one of the important things that you have to determine and secure is your business’s funding source.
Will a family member fund you? Will you take out a small business loan or will you keep your full-time job before making the leap? For new agents who want to go full-time right away, it’s generally advised to have at least 6 months of saving to cover both your living and business expenses.
As your business includes a budget, follow your budget and always keep business expenses in check to avoid overspending. Always strive to achieve your goals within your means.
Expecting Immediate Success
Many new agents expect to achieve success right away. On average, it could take two months before an agent makes their first sale and two years before they can make a livable income from their real estate business. This is why planning financially is very important if you want to succeed.
However, in the long run, the payoff will all be worth it. Good things just take time. So set realistic goals for yourself and be reasonable with your expectations. Many real estate agents quit too soon, feeling disappointed and discouraged, because they couldn’t achieve a goal that’s unachievable in the first place.
Marketing on Less Effective Channels
Focusing your marketing efforts on the wrong channels is one reason new real estate agents overspend. In today’s marketplace, print marketing and other traditional methods like cold-calling and direct mail generally don’t yield high returns.
Meanwhile, search engine marketing, where a website article or an ad of yours appears on the first page of search results, has a more impressive conversion rate thus more cost-efficient. Promoting your business on social media and building your referral network will also serve you well in the long run.
Choosing A Brokerage for The Wrong Reason
Choosing a managing broker is one of the most important decisions you’ll make as a new real estate agent. Don’t rush in just to get one. And don’t just stop at checking if they have a good reputation or if they offer a competitive split. Take your time to know your options.
Call their office and ask about their programs and incentives for new agents. Determine whether the broker is committed to helping agents succeed. Know the average price of house sales and their agent turnover rate.