Every time I talk to someone about my business and career, it always arises that “they’ve thought about getting into real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into property – why aren’t there more lucrative Realtors on the planet? Well, there’s only so much business to go around, so there can only just be so many Real Estate Agents in the world. Personally i think, however, that the inherent nature of the business enterprise, and how different it is from traditional careers, helps it be difficult for the average indivdual to successfully make the transition into the Real Estate Business. As a brokerage, I see many new agents make their way into my office – for an interview, and sometimes to begin with their careers. New REALTORS bring a lot 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 will come in the mail. Why? Because most new Real Estate Agents have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the Real Estate business is “obtaining a new job.” What they’re missing is that they are 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 is your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it’s going to take for you to make your real estate industry a success. Here are the requirements of worthwhile business plan:

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

B) Services You Provide – you do not want to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you would like to specialize in. New residential realtors tend to have 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 jot down EVERY expense you have – gas, groceries, cellular phone, etc… Then write down the new expenses you’re dealing with – board dues, increased gas, increased cell usage, marketing (very important), etc…

E) Funding – how will you 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 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 is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the GREATEST Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, INSURANCE PROFESSIONAL, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should guarantee that anyone you refer in will be a secured asset to the transaction, not a person who provides you more headache. And the closing team you refer in, or “put your name to,” is there to make you shine! When they perform well, you get to take part of the credit as you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They gather and decide that, through their combined marketing efforts, they can take over the planet! Watten House focusing on the right part of their business – marketing – but they’re doing each other no favors by choosing to provide each other business. If 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 fresh agent can bind the house in less than one hour. However, because it typically takes at least fourteen days to close a loan, if you are using 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. Due to this, you can turn in their mind with questions, and they will step in (quietly) if they see a potential mistake – since they want to assist you to, and in exchange receive more of one’s business. Using good, experienced players for the 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 Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone can be an investment that will cost between $700 and $900 (not considering the volume 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 competition are using every tool to greatly help THEM.

A) MLS Access is just about the most expensive necessity you are going to run into. Joining your neighborhood (and state & national, by default) Board of Realtors will help you to purchase MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp of this type. Getting MLS access is probably the most important things you can do. It’s what differentiates us from your own average salesman – we don’t sell homes, we present any of the homes that we have available. With MLS Access, you will have 99% of the virginia homes in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan – These days, 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 least 2000 minutes per month. You want, and need, to be available to your clients 24/7 – not only nights and weekends.