Every time I talk to someone about my business and career, it always comes up that “they’ve thought about getting into property” or know anyone who has. With so many people thinking about getting into property, and getting into real estate – why aren’t there more lucrative Realtors on earth? Well, there’s only so much business to go around, so there can only just be so many REALTORS in the world. Personally i think, however, that the inherent nature of the business, and how different it is from traditional careers, makes it 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 with their careers. New REALTORS bring lots of great qualities to the table – lots of energy and ambition – but they also make a large amount of common mistakes. Listed below 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 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 “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 one of the key ingredients can be your business plan. Your organization plan helps you define where you’re going, how you’re getting there, and what it does take for you yourself to make your real estate industry a success. Here are the requirements of any good business plan:

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

B) Services You Provide – you don’t wish to be the “jack of most trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you wish to specialize in. New residential real estate agents tend to have probably the most success with buyers/renters and move on to listing homes after they’ve completed several transactions.

C) Market – who are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and write down EVERY expense that you have – gas, groceries, cellular phone, etc… Then write down the brand new expenses you’re dealing with – 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 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 do so effectively and systematically.

2) Not Using the GREATEST Closing Team

They say the greatest businesspeople surround themselves with people who 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 an agent, you are in the positioning to refer your client to whoever you select, and you should guarantee that anyone you refer in will undoubtedly be a secured asset to the transaction, not a person who will bring 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 take part of the credit because you referred them in to the transaction.

The deadliest duo on the market is the New AGENT & New LARGE FINANCIAL COMPANY. They get together 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 one another no favors by choosing to provide each other business. In the event that you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you create a simple phone call and a new agent can bind the property in less than one hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the effect can be disastrous! construction management 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 know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) if they see a potential mistake – because 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 required Tools

Getting started as an agent is expensive. In Texas, the license alone is an investment which will cost between $700 and $900 (not taking into account the number of time you’ll invest.) However, you’ll come across even more expenses when you go to arm yourself with the necessary tools of the trade. And don’t fool yourself – they’re necessary – because your competitors are definitely using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you’re going to run into. Joining your neighborhood (and state & national, automagically) 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 one of the most important things you can do. It’s what differentiates us from your average salesman – we don’t sell homes, we present any of the homes that we supply. With MLS Access, you should have 99% of the virginia homes in your area available to present to your clients.

B) CELLULAR PHONE w/ a Beefy Plan – Nowadays, everyone has a cell 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 available to your clients 24/7 – not just nights and weekends.