b>Every time I talk to mistakes. Here are the 7 top
someone about my business mistakes rookie Real Estate
and career, it always comes Agents Make.
up that “they’ve thought about
getting into real estate” or know 1) No Business Plan or
someone who has. With so Business Strategy
many people thinking about So many new agents put all their
getting into real estate, and emphasis on which Real Estate
getting into real estate – why Brokerage they will join when
aren’t there more successful their shiny new license comes in
Realtors in the world? Well, the mail. Why? Because most new
there’s only so much business to Real Estate Agents have never
go around, so there can only be been in business for themselves –
so many Real Estate Agents in the they’ve only worked as employees.
world. I feel, however, that the They, mistakenly, believe that
inherent nature of the business, getting into the Real Estate
and how different it is from business is “getting a new job.”
traditional careers, makes it What they’re missing is that
difficult for the average person they’re about to go into business
to successfully make the for themselves. If you’ve ever
transition into the Real Estate opened the doors to ANY business,
Business. As a Broker, I see you know that one of the key
many new agents make their way ingredients is your business
into my office – for an plan. Your business plan helps
interview, and sometimes to begin you define where you’re going,
their careers. New Real Estate how you’re getting there, and
Agents bring a lot of great what it’s going to take for you
qualities to the table – lots of to make your real estate business
energy and ambition – but they a success. Here are the
also make a lot of common essentials of any good business
plan: Mortgage Broker. They get
together and decide that, through
2) Not Using the Best their combined marketing efforts,
Possible Closing Team they can take over the world!
They say the greatest They’re both focusing on the
businesspeople surround right part of their business –
themselves with people that are marketing – but they’re doing
smarter than themselves. It each other no favors by choosing
takes a pretty big team to close to give each other business. If
a transaction – Buyer’s Agent, you refer in a bad insurance
Listing Agent, Lender, Insurance agent, it might cause a minor
Agent, Title Officer, Inspector, hiccup in the transaction – you
Appraiser, and sometimes more! make a simple phone call and a
As a Real Estate Agent, you are new agent can bind the property
in the position to refer your in less than an hour. However,
client to whoever you choose, and because it typically takes at
you should make sure that anyone least two weeks to close a loan,
you refer in will be an asset to if you use an inexperienced
the transaction, not someone who lender, the result can be
will bring you more headache. disastrous! You may find
And the closing team you refer yourself in a position of
in, or “put your name to,” are “begging for a contract
there to make you shine! When extension,” or worse, being
they perform well, you get to denied a contract extension.
take part of the credit because
you referred them into the A good closing team will
transaction. typically know more than their
role in the transaction. Due to
The deadliest duo out there is this, you can turn to them with
the New Real Estate Agent & New questions, and they will step in
(quietly) when they see a you’re going to run into.
potential mistake – because they Joining your local (and state &
want to help you, and in return national, by default) Board of
receive more of your business. Realtors will allow you to pay
Using good, experienced players for MLS access, and in Austin,
for your closing team will help Texas, will run around $1000.
you infinitely in conducting However, don’t skimp in this
business worthy of MORE area. Getting MLS access is one
business…and best of all, it’s of the most important things you
free! can do. It’s what differentiates
us from your average salesman –
3) Not Arming Themselves with we don’t sell homes, we present
the Necessary Tools any of the homes that we have
Getting started as a Real Estate available. With MLS Access, you
Agent is expensive. In Texas, will have 99% of the homes for
the license alone is an sale in your area available to
investment that will cost between present to your clients.
$700 and $900 (not taking into
account the amount of time you’ll B) Mobile Phone w/ a Beefy
invest.) However, you’ll run Plan – These days, everyone has a
into even more expenses when you cell phone. But not everyone has
go to arm yourself with the a plan that will facilitate the
necessary tools of the trade. level of use that Real Estate
And don’t fool yourself – they Agents need. Plan on getting at
are necessary – because your least 2000 minutes per month.
competitors are definitely using You want, and need, to be
every tool to help THEM. available to your clients 24/7 –
not just nights and weekends.
A) MLS Access is probably
the most expensive necessity C) Computer (Preferably a
Laptop) – There’s no way around AWAY from the office, and a
it, you have to have a computer & laptop helps you stay on top of
be savvy enough to use email. your work while on the go.
You would be wise to invest in
some business management D) Real Estate Friendly Car
software, as well. If you’d like – You don’t have to have a Lexus,
to save some money (and who but your Miata won’t do the
wouldn’t) then you can get the trick. Make sure that you have a
client & email management 4 door car or SUV that is
software Thunderbird from href="http://www.mozilla.com" Keep it clean, and for God’s
title="http://www.mozilla.com" sake, don’t smoke in it! You’re
target="_blank">color="#001000" your car, and put a lot of miles
size="-2">http://www.mozilla.com< on it, so if it’s fuel efficient,
/font> and you can get a free it’s a BIG plus. If you’re
office suite from href="http://www.openoffice.org" still have your KILLER Jeep from
title="http://www.openoffice.org" college, it’s time to trade it
target="_blank">color="#001000"
size="-2">http://www.openoffice.o 4) Lack of Proper Funding
rg The only downside If you’ve taken the time to
to these programs is that they do create your business plan, than
not sync with your PDA or Smart you should definitely have your
Phone. A Laptop is a BIG plus budget, but I can’t stress enough
because you’ll be able to work the importance of having and
from home or on the go. New Real following your budget. However,
Estate Agents are often surprised the budget alone doesn’t address
by just how much time they spend the important aspect of funding.
90% of all small businesses fail the LAST thing they want to do is
due to lack of funding. to spend more money! Again, the
Typically, new agents will want problem lies in the lack of
to have 3 months of reserves in understanding that you’ve just
savings before taking the leap jumped into the Real Estate
into full time agency. However, Business, you haven’t taken a new
money in the bank isn’t the only job. And any good businessperson
way to answer the question of will tell you that how much
funding. Maybe your partner can business you GET is directly
support you for a certain period correlative to how much you SPEND
of time. You can keep a on marketing. If you choose the
part-time job that won’t right brokerage, then you will
interfere with your business as a get some good inbound leads.
Real Estate Agent. Many However, don’t neglect a good,
successful waiters make the personal marketing campaign from
transition to successful real the beginning to get your own
estate agents with no money in name out as the Real Estate Agent
the bank. When you start your to go to.
new business, don’t expect to
earn any income for, at the
6) Not Focusing Their
least, 60 days. Marketing Efforts in the Most
Effective Areas 5) Refusing to Spend Money on One reason why many new Real
Marketing Estate Agents who do begin
Most new Real Estate Agents don’t spending money on personal
realize that the hardest part of marketing stop is because they
the business is finding the spend it in the wrong place. The
business. Furthermore, they’ve easiest place, and where
just shelled out around $2000 for conventional Real Estate tells
their license and board dues, so you to spend your money, is in
conventional print marketing – your sphere of influence as the
the newspaper, real estate Real Estate Agent to go to – then
magazines, etc… This is the most you will get more business. The
visible place to see real estate key is to pick a system and to
advertising, it’s where large follow that system. You will see
offices spend a good part of results.
their money, and so many new
agents mistakenly spend their
7) Choosing the Wrong
money here. This becomes very Brokerage for the Wrong
frustrating to new agents because Reasons of its low return. Large New Real Estate Agents choose
brokerages can afford to spend their new broker for a variety of
their money here because they’re reasons – they have a good
filling two needs – they’re reputation, they offer the most
marketing their own properties competitive split, the office is
for sale while creating new buyer close to their house, etc… While
traffic for their buyer’s agents. these alone aren’t bad reasons to
New Real Estate Agents should choose a broker, they aren’t
look to their own sphere of going to do a lot to help you in
influence and referral marketing your success. The #1 reason to
to see the most effective return choose a broker, and the question
on their investment. An agent to ask is, “What do you offer
can spend as little as $100/month your new agents.” If the answer
marketing to their family, is, “The most competitive split
friends, and colleagues and see in town” you should definitely
an incredible return. There are keep looking. Remember, 100% of
many great referral systems $0 is still $0. If you’re
around that all focus on the same leaning towards the largest
premise – that if you broker in town, who has a great
consistently market yourself to reputation, remember this: You’re
starting a BUSINESS not a JOB. progress their careers to the
While it might be fantastic to next level. As a new agent,
brag to your friends about concern yourself less with
landing a job at a prestigious commission split or agency name
company, it’s no accomplishment and more with specific programs
to hang your license on the same and agency standards.
wall in the same office as other
successful agents.
A new career in Real Estate is
very exciting. Starting a
Your #1 concern when interviewing Real Estate business provides the
new Brokers is what they offer new Agent with opportunities for
you as a new agent. Do they have limitless potential and freedom.
incoming leads? What does their New Agents have a notoriously
training program consist of? high failure rate, however, so a
What’s their retention level? new Real Estate career can also
What’s their average sales price? be a very scary prospect.
Do they encourage their agents However, if you avoid the 7 Top
to promote themselves? A Mistakes Rookie Real Estate
Broker’s purpose is to help new Agents Make, then you’ll be far
agents start successful careers ahead of the competition!
and to help established Agents
About the Author:
Eric Bramlett currently manages his Austin Texas Real Estate Guide, his his Austin Real Estate company’s website, & his Austin Condominium Guide.
Read more articles by:
Eric Bramlett
Article Source: www.iSnare.com 
