Real estate transactions often take months to close and commission checks can arrive weeks later, leaving many new agents without enough capital to expand their businesses.
Success for any business relies on having access to qualified leads, so that they can focus on closing deals and expanding their clientele base.
1. Lack of preparation
Real estate can be an exhilarating and rewarding career choice; however, not everyone should pursue it. 87% of new real estate agents fail within two years – an experience which could prove dispiriting to those looking to enter this sector.
Failure of new real estate agents often comes down to poor preparation. Many enter the industry with unrealistic expectations about when they’ll start seeing financial returns; failing to acknowledge that building an income-generating real estate business takes time.
Fail to dedicate sufficient time and resources to prospecting and marketing themselves. In such a competitive field, agents who neglect this step will find it harder than necessary to remain competitive, possibly failing to survive through slow periods in the market.
New agents may struggle with establishing their brand and identity in the industry. Therefore, it’s essential that agents invest in marketing materials like headshots, business cards, website/landing pages/flyers/social media accounts to help clients recognize them more easily – this will increase client referrals!
New agents often fail to set goals and create action plans for their businesses, while top real estate agents regularly set and review goals to achieve success in business. Furthermore, they also devise detailed action plans on how they’ll generate leads, build their clientele base and sell properties – this type of goal-setting and action planning approach is essential to remaining an industry leader.
2. Poor time management
Real estate agents juggle many tasks at once, and effective time management is vital to their success. Poor time management can lead to missed opportunities, incomplete projects and lack of focus – thus necessitating having a daily plan of action in place so you can prioritize high-value activities while not spending your precious hours doing less important ones.
Many new real estate agents struggle with time management due to numerous factors. This includes expenses related to becoming licensed agents (prelicensing classes and exam fees), continuing education requirements, broker fees and operational expenses such as office space and marketing materials – expenses which quickly add up without careful planning.
New real estate agents frequently struggle to properly prioritize and delegate tasks, spending too much time on unimportant tasks or overpromising services they cannot deliver on. This can have serious repercussions for client relations; if clients perceive their agent to be difficult or distainful, they are unlikely to return or recommend them further.
New real estate agents sometimes make the mistake of failing to follow up with leads from leads they generate, which can be an enormous misstep in an industry so reliant on referrals. By failing to do so, agents miss an opportunity to build trust with potential clients while also showcasing their expertise.
Real estate can be an exciting and fulfilling career if approached with the appropriate mindset and effort. By understanding why so many real estate agents fail, understanding why many fall prey to common pitfalls will help ensure your success as an agent. Ready to kick off your real estate career on the right foot? Schedule a demo with Mashboard now to experience our predictive analytics that automatically qualify leads and save time during qualification processes!
3. Lack of focus
One of the primary reasons real estate agents fail is due to a lack of focus in building their business. To be successful in real estate sales and property management, agents need to have an accurate picture of their target market and how they plan to reach it in order to create an effective marketing plan that effectively reaches out to prospective clients.
Real estate agents who fail often don’t put in enough work. Real estate requires hard work from all involved to achieve success; successful agents know this well enough. Successful agents understand they may have to put in extra hours at odd hours while networking extensively in order to find new business.
Finally, many real estate agents fail due to unrealistic income expectations. They expect to sell multiple homes during their first year when in reality most agents only manage 1-2 sales at best in that first year; this may become discouraging to new agents and cause them to give up too soon.
Real estate agents who lack a strong network or consistent stream of leads often fail. Generating and nurturing high-quality leads are vitally important in real estate businesses; agents should use tools such as marketing materials, training guides and turnkey concierge services in their business to maximize success and avoid failure.
4. Lack of networking
No matter where you stand in real estate, whether a novice or veteran agent alike, it’s essential to understand what causes many agents to fail so as to avoid repeating those same errors and increase your odds of success.
Real estate agents who don’t develop strong networks often struggle with business. Networking allows you to connect with individuals who can refer business, answer any queries and offer support – this is particularly critical in the real estate sector where referrals provide many of their leads for new agents.
Real estate agents fail because they fail to create a business plan. A plan can help identify your goals and create an action plan to achieve them; additionally, this document acts as a great accountability measure by setting yearly goals and tracking progress while making necessary adjustments along the way.
Real estate agents frequently fail because they fail to prepare for tougher times in the market. Real estate is a cyclical industry, and sales often decrease during recessions – when this occurs it’s essential that real estate agents maintain steady streams of business to keep their income constant.
Bottom line, to succeed in real estate requires hard work and commitment. Not everyone can succeed at it, and without the appropriate mindset or skillset you won’t last long in this industry. Top agents don’t become what they are without effortful dedication; top agents worked for years perfecting their craft and abilities to become industry leaders.
5. Lack of financial management
Real estate, unlike many other rewarding professions, requires significant financial investments. New agents often underestimate how much it will cost them to operate a real estate business and can find themselves struggling financially before even making their first sale – often because they didn’t plan ahead and save enough for expenses related to a career in real estate.
Costs associated with becoming a real estate agent include prelicensing education and exam fees, continuing education fees, broker fees, operational expenses and marketing/advertising expenses. Generating and nurturing qualified leads takes time; so real estate agents need to learn how to market themselves effectively in order to generate enough leads.
Understand your local real estate market is also key; when agents don’t possess these essential skills, changes in the market could catch them off guard and hinder their efforts to meet sales goals.
Real estate agents should make it a point to regularly set and review their goals and action plans, especially since real estate is a cyclical industry and there will likely be times when selling homes is challenging. Agents that can’t adapt quickly enough in such markets will ultimately fail.
Though entering the real estate industry can be intimidating, it doesn’t need to be so scary. By adopting best practices and avoiding common errors, new real estate agents can increase their chances of success and enjoy a happy and fruitful career – which in turn benefits both them as individuals and the clients they serve. For more tips on becoming a successful real estate agent check out our blog!