How To Get (A) Fabulous REAL ESTATE AGENT On A Tight Budget

Every time I talk to someone about my business and career, it always comes up that “they’ve thought about engaging in property” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors on earth? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business enterprise, and how different it really is from traditional careers, helps it be difficult for the average person to successfully make the transition in to 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 lots of great qualities to the table – plenty of energy and ambition – however they also make a large amount of common mistakes. Here are the 7 top mistakes rookie REALTORS Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they’ll join when their shiny new license comes in the mail. Why? Because home inspection have never experienced business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the Real Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you have ever opened the doors to ANY business, you know that among the key ingredients is your business plan. Your business plan can help you define where you’re going, how you are getting there, and what it does take for you to make your real estate business a success. Here are the requirements of worthwhile 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 need to specialize in. New residential real estate agents 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 are you going to pay for your allowance w/ no income for the first (at least) 60 days? With the goals you’ve set for yourself, when do you want to break even?

F) Marketing Plan – how will you obtain the word out about your services? The simplest way to market yourself is to your personal sphere of influence (people you understand). Make sure you do so effectively and systematically.

2) Not Using the GREATEST Closing Team

They say the best 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 PROFESSIONAL, Title Officer, Inspector, Appraiser, and sometimes more! As an agent, you are in the position to refer your client to whoever you choose, and you should be certain that anyone you refer in will undoubtedly 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,” are there to make you shine! If they perform well, you get to participate of the credit because you referred them into the transaction.

The deadliest duo on the market is the New AGENT & New LARGE FINANCIAL COMPANY. They gather and decide that, through their combined marketing efforts, they can take over the planet! They’re both focusing on the proper part of their business – marketing – but they’re doing one another no favors by choosing to give each other business. If you refer in a bad insurance professional, it might result in a minor hiccup in the transaction – you make a simple phone call and a fresh 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 result can be disastrous! You might find yourself ready of “begging for a contract extension,” or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. For this reason, you can turn in their mind with questions, and they’ll step in (quietly) if they visit a potential mistake – since they want to assist you to, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business…and on top of that, it’s free!

3) Not Arming Themselves with the required Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment which will cost between $700 and $900 (not considering how much 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 are necessary – because your competitors are definitely using every tool to greatly help THEM.

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