Do you ever wonder why new real estate agents fail? Are you yourself failing as a new agent? There are many factors as to why new agents fail.
1. They do not have a business plan
Several reasons for failure in the real estate industry are rooted in the mistake of not treating real estate like the business it is. This starts with the lack of a realistic, executable business plan. Many first time agents underestimate the fees involved and don't create a budget for how to get through their first few months at home while they generate clients. For more on how to realistically prepare for your new career in real estate, click here.
2. They don’t properly manage their income.
For someone who’s used to collecting a regular, predicable paycheck, making the shift to large commission checks that come at a less predictable pace can be a challenge. After too many experiences of not making it to the next paycheck, inexperienced agents will start to feel like they aren’t making enough to meet their obligations and call it quits.
3. They are too aggressive or too passive with leads.
Potential buyers and sellers are rarely ready to take action the first time you hear from them. When a rookie real estate agent encounters a new prospect early in the buying or selling process, the agent will either come on too strong and drive the lead away by making them feel pressured, or will fail to follow up with the lead after they’ve had time to further consider their potential real estate transaction.
4. They stop marketing and prospecting when they have a sufficient amount of business
If you ever stop filling your pipeline, it’s only a matter of time before any success you are experiencing comes to a screeching halt. Having to start back at the beginning causes many promising agents to give up all together.
5. They don’t get enough training and support from their broker or brokerage family
A new agent who does not have the support of experienced agents or access to training and resources from a broker will waste too much time and energy trying to figure everything out themselves. No one likes to feel completely on their own in a new endeavor. The resulting career dissatisfaction ends real estate careers before they even begin.
6. They have poor or non-existent routines
A career in real estate requires an inherent drive to succeed and the ability to self-motivate. Commonly, new agents fail to set routines early and end up failing because they don’t consistently perform the business activities necessary to succeed. Likewise, the failure to set boundaries—routine breaks for personal obligations and rest—can lead to burnout.
7. They don’t set goals
If an agent creates a business plan, goals will be built in, but since we know that too often business plans are neglected, so too are goals. If you don’t set goals, you miss the opportunity to celebrate successes, which is important to staying engaged in your real estate career. New agents who don’t set goals—or set goals that are too vague or unrealistic—won’t be able to tell if they are in trouble until it’s too late.
Are you majorly bummed out right now?
Now that you know 7 common reasons new agents fail, you can refuse to be one of them. Find out how to avoid these pitfalls with our ebook:
7 Ways to Succeed as a New Agent