Real estate is a business that offers great rewards and can also create enormous heart ache and stress. Here are a few of the most common mistakes I see with new agents.
Not Being Prepared to be Self Employed
You need to fully understand that you are now self-employed. You did not just get a new job. You went into business for yourself. Big difference.
Not Having a Business Plan
If you don’t know where you are going how do you honestly expect to get there. What does it really mean to you when asked the question “Are you successful in real estate?” 5-10-15-150 deals, where are you on the spectrum. Without Goals how will you know when you get to the top?
Not Arming Yourself with the Necessary Tools
Getting started is expensive. There are certain costs that can’t be changed like joining a Board.
Trying to do Real Estate Part Time
There really is no such thing as part time in real estate. Clients need full time attention. When you lack proper funding to get started it sets you up for tremendous stress. The rule of thumb is to have 4-6 months of savings when starting. When I started I worked real estate full time while I still had two other part time jobs. My focus was always real estate first.
Taking Over Priced Listings
If it won’t sell, what’s the point? Having a sign up won’t help either when the buyer calls don’t think you know what you are doing. Over priced listings cost to much money and time. If they are starting out over priced you should have a plan already in place with the seller for quick price reductions.
Reducing the Commission
When you de-value your commission, you de-value your services in the eyes of the seller. Trust me, you will earn every penny of that commission.
Failure to Master the Listing Presentation
This is to important to just “wing it”. Learn your scripts and they will carry you to the closing table. You cannot practice what you are going to do on a Listing Presentation too many times.
Failure to Master the Buyer Scripts
Honestly folks, learn your scripts. All of the objections are common and the scripts are the map of the territory. You wouldn’t go hiking in the White Mountains without a map, why would you pass up the information on how to do real estate from those who have gone before you? So learn your scripts and practice them until they sound like you.
Failure to Seek Referrals
You must ask for the business. All of your friends and family are sources for referrals.
Refusing to Spend Money on Marketing
You have to invest in yourself and in your business. Be careful where you spend your money. You need to be strategic but please understand it takes some money to make some money.
Failure to Continue Education
Yes, you passed the real estate licensing test. Congratulations. It has next to nothing to do with selling real estate. Now the real learning curve comes into play.
Failure to Understand the Contracts
This is serious business with serious money on the line. Attend contracts class, ask questions and most importantly READ the contracts.
Thinking that Just Having a License Means They Will Do Business
Real estate does not just happen for most people. Just because you have a license does not mean that deals will automatically fall in your lap. You may trip over the occasional deal or two, but if you want to make a living in real estate you have to get to work.
(c) Shannon Aldrich 2010
http://www.therealestateclass.com/
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