The number of people going into Real Estate is significantly higher than those succeeding in it. As a Real Estate Agent, Jarret Willis says that new real estate agents walk into the office with a lot of energy and ambition but make many common mistakes that make their journey up the ladder difficult.
Here are some of the mistakes as outlined by Jarret:
1. Lack of a Business Plan or Strategy
The biggest mistake that new agents make is thinking that they're going into employment when, in reality, they're going into business for themselves. A business plan is, therefore, absolutely crucial. The business plan should define:
- what they want from the company,
- the specific service that they are going to provide
- their target market
- the expenses that they will incur while running business how they are going to fund these expenses before they start bringing in considerable income and
- An elaborate marketing plan on how they will generate leads.
2. Inefficient Team
Closing a transaction requires a team, including Buyer's Agent, Title Officer, Appraiser, Lender, Insurance Agent, Listing Agent, and Inspector. Your responsibility as a Real Estate Agent is to refer your client to someone you think will ensure a value-added transaction. This means that you will get credit when your team performs well.
Referring to harmful transaction agents may cause hiccups in your transaction, and the results can be disastrous.
Getting good players in your closing team will afford you a smooth transaction, and in turn, you will receive more from your business.
3. Lack of Necessary Tools
Jarret Willis says that getting a license will cost you between seven hundred to nine hundred dollars. Arming yourself with the necessary trade tools will cost you further because you need them to level the playing field with your competitors. These tools include; MLS Access, a laptop, a Real Estate Friendly car, and a Mobile Phone with a Beefy Plan.
4. Lack of Proper Funding
After creating a business plan, you need to develop a budget and address the critical aspects of funding. Before leaping into being a full-time agent, Jarret Willis advises that you save for a while or have a part-time business that will not interfere with being a Real Estate Agent before you get on your feet. For instance, Jarret worked in the fashion business in New York, which created a bridge for his next business venture in Real Estate.
5. Restricting Your Marketing Budget and Not Focusing On Effective Areas
A most common rookie mistake is underestimating the effort required in finding business. In any business, how much you make corresponds to how much you spend on marketing. Similarly, you need to know where to focus your efforts to get the most return on your investment.
6. Settling On the Wrong Brokerage for the Wrong Reasons
It is natural for new agents to choose a brokerage because of their reputation or proximity in location or offer the most competitive split. Although these reasons may, to some extent, give you bragging rights. Some of the essential things to look out for when interviewing new brokers are:
- Their training program
- Their sales price
- Their retention level
- Whether they have incoming leads
Although a new career in real estate is fascinating, it is not enough to have a license. The prospect of success can seem unattainable when faced with certain obstacles as a new agent, but being careful to avoid these mistakes will ensure you rise above them.