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Top 7 Mistakes Rookie REALTORS Make

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 anyone who has. With so many people considering getting into property, and getting into real estate – why aren’t there more lucrative Realtors on the globe? Well, there’s only so much business to bypass, 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 is from traditional careers, makes it difficult for the average person 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 REALTORS bring a lot 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 REALTORS Make.

1) No Business Plan or Business Strategy

So many new agents put almost all their emphasis on which PROPERTY Brokerage they will join when their shiny new license will come in the mail. Why? Because most new REALTORS have never been in business for themselves – they’ve only worked as employees. They, mistakenly, think that getting into the Real Estate business is “obtaining a new job.” What they’re missing is that they are about to go into business for themselves. If you have ever opened the doors to ANY business, you know that one of many key ingredients is your business plan. Your organization plan can help you define where you’re going, how you’re getting there, and what it does take for you to make your real estate business a success. Here are the requirements of any good business plan:

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

B) Services You Provide – you do not wish to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you wish to specialize in. New residential realtors tend to have probably the most success with buyers/renters and move ahead 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 jot down EVERY expense that 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 (very important), etc…

E) Funding – how are you going to pay for your allowance w/ no income for the first (at the very least) 60 days? With the goals you’ve set for yourself, when do you want to break even?

F) Marketing Plan – how are you going to obtain the word out about your services? The simplest way to market yourself would be to your personal sphere of influence (people you know). 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 requires a fairly 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 make sure that anyone you refer in will undoubtedly be an asset to the transaction, not somebody who provides you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! If 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 AGENT & New LARGE FINANCIAL COMPANY. They gather and decide that, through their combined marketing efforts, they are able to take over the world! They’re both focusing on the proper 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 an hour. However, because it normally takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.

An excellent closing team will typically know more than their role in the transaction. Due to this, you can turn in their mind with questions, and they’ll step in (quietly) if they visit a potential mistake – because they want to help you, and in return receive more of your business. Using Canninghill Piers Showflat , experienced players for the closing team will help you infinitely in conducting business worth MORE business…and best of all, 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 which will cost between $700 and $900 (not considering the number of time you’ll invest.) However, you’ll run into 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 competitors are using every tool to greatly help THEM.

A) MLS Access is probably the most expensive necessity you are going to run into. Joining your neighborhood (and state & national, automagically) Board of Realtors will help you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp in this area. Getting MLS access is among the most important actions you can take. It’s what differentiates us from your own average salesman – we don’t sell homes, we present the homes that we supply. 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 – Nowadays, everyone has a cellular phone. But not everyone has a plan that will facilitate the level of use that REALTORS need. Plan on getting at the very least 2000 minutes per month. You want, and need, to be accessible to your clients 24/7 – not just nights and weekends.

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