Every time I speak to someone about my business and career, it always comes up that “they’ve thought about getting into property” or know someone who has. With so many people thinking about getting into property, and getting into real estate – why aren’t there more successful Realtors on the planet? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. Personally i think, however, that the inherent nature of the business, and how different it really is from traditional careers, makes it difficult for the average person to successfully make the transition into 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 REALTORS bring a great deal of great qualities to the table – plenty of energy and ambition – however they also make a lot 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 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, think 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 among the key ingredients is your business plan. Your business plan can help you define where you’re going, how you’re getting there, and what it does take for you yourself to make your real estate business a success. Here are the requirements of any good business plan:

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

B) Services You Provide – you don’t desire to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you wish 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 – that are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and jot down EVERY expense you have – gas, groceries, cell phone, etc… Then write down the brand new expenses you’re taking on – board dues, increased gas, increased cell usage, marketing (essential), etc…

E) Funding – how will you pay for your budget w/ no income for the first (at 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 get the word out about your services? The simplest way to market yourself would be to your own sphere of influence (people you know). Make sure you achieve this effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It requires a pretty 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 select, and you should be certain that anyone you refer in will undoubtedly be an asset to the transaction, not somebody who will bring you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When Grand Dunman 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 AGENT & New LARGE FINANCIAL COMPANY. They get together and decide that, through their combined marketing efforts, they can take over the world! They’re both focusing on the right section of their business – marketing – but they’re doing one another no favors by choosing to provide each other business. In the event that you refer in a bad insurance agent, it might result in a minor hiccup in the transaction – you create a simple phone call and a fresh agent can bind the property in less than one hour. However, because it normally 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. For this reason, you can turn to them with questions, and they’ll step in (quietly) when they visit a potential mistake – because they want to assist you to, and in exchange receive more of your business. Using good, experienced players for your closing team will allow you to infinitely in conducting business worth MORE business…and best of all, 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 that will cost between $700 and $900 (not taking into account the quantity of time you’ll invest.) However, you’ll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And do not fool yourself – they are necessary – because your competition are definitely using every tool to help THEM.

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

B) CELLULAR PHONE w/ a Beefy Plan – These days, everyone has a cell phone. But not everyone includes a plan that will facilitate the amount of use that REALTORS need. Plan on getting at the very least 2000 minutes per month. You want, and need, to be accessible to your clients 24/7 – not just nights and weekends.