In the part one of this blog, we covered the first eight mistakes that drive Realtors out of business, including the fear of “no”, choosing the wrong broker, and not creating systems, among others. In this blog, we’ll cover the next nine mistakes that can send you out of business as a Realtor. If you buy and sell homes for a living and you’re making more than a few of these mistakes, you may be headed for a career change, so take a good look and make the necessary changes in order to reach the success that you deserve!
Mistake #9 Not enough savings
Realtors can make a great living and easily earn a six-figure income if they work hard and do the right things, but one downside of that earning potential is the lag inherent to the business. It takes time and money to build a successful, sustainable real estate business, but if agents are living commission check to commission check, it leaves an insufficient safety net. Selling homes can be a feast or famine affair, where you might close on five home sales in one month and then none the next month. So new agents in particular often don’t start with adequate savings to use to pay bills and also run their business, as expenses like gas, marketing, brokerage fees, technology, etc. can really add up quickly.
Mistake #10 Trying to be a part-time Realtor
As a client, you probably wouldn’t want to go to a part-time doctor, part-time lawyer, and it’s still a mystery to me why people do their taxes through a part-time accountant. Likewise, too many people try to sell homes part-time while keeping their regular job. Of course there are some great part-time real estate agents, but in general, it takes full-time dedication, experience, training, concentration and resources to master your craft of selling homes to serve your clients best. So most often, part-time realtors end up full-time out of business.
Mistake #11 Not taking advantage of training and education
Without fail, the professionals I see who make the most money and have the greatest success constantly invest in themselves; reading books, listening to tapes and podcasts, going to seminars, and even tirelessly perfecting their craft – sales – and their knowledge of their product, real estate in local markets.
Mistake #12 Not separating you from your business
As much as Realtors work, it’s hard for them not to not take their work home at night. As difficult as it will be to turn off “work mode” the top-producing Realtors know that there needs to be a healthy separation between work and personal life. Scheduling time for family, exercise, self-improvement, and relaxation and down time is essential if you don’t want to maintain a high level of energy and focus instead of burning out.
Mistake #13 Not specializing
When you start out in real estate, you may hold the perception that you should chase all types of business and never turn down any deal. But in reality the most successful Realtors specialize in one area of expertise. That may be luxury homes, first-time buyers, short sales, or selling homes in a particular neighborhood. Of course you’ll help other clients, but focusing on one thing helps you establish expertise and differentiates you from the competition.
Mistake #14 Not building a high quality team
To be a truly prolific in real estate, it’s vital you build a core team of vendors and professionals who are really good at what they do. Of course you’ll want to do business with a great lender, very adept title and escrow people, and even pest inspectors, home inspectors, handymen, movers, etc. Referring great people to your client to serve their needs is a fantastic way to add value and ensure they have a good experience.
Mistake #15 Not utilizing tech
Dedicated professionals understand that technology is a big part of the client experience so it should be embraced – not seen as a threat. Therefore, they stay up on the newest relevant tech developments and serve as a guide and educator for their clients when it comes to that aspect of their job. Of course this doesn’t mean they waste time on social media or very niche tech that won’t help their clients- quite the opposite.
Mistake #16 Not treating it like a business
Remember that as a Realtor, you don’t just have a job; you’re building a business. Yet many real estate salespeople forget this and fail to draft a business plan, a marketing plan, strategies for growth, schedule their time properly, and plan their finances accordingly.
Mistake #17 Not putting prospecting first
The first, second and third priority as a real estate agent should be prospecting for new clients. This should be your focus during your high-energy hours, which can be first thing in the morning for some people, afternoons for others, or even evenings and weekends for those who want to catch their potential clients at home after work. As uncomfortable as it may seem for some realtors that are new or don’t really understand sales, new clients are the lifeblood of any business, and without a steady stream of new buyers and sellers, all the good service in the world will be useless if you go out of business.