Every year, a number of new real estate agents hit the market with impeccable optimism. A large number of them, however, also quit just after their first two years. Interestingly, that data don’t blame the lack of money in the industry. Not when the market is paying agents an average hourly rate of $17.73, without accounting the commissions and bonuses. With that kind of potential income at stake, it begs the question why do real estate agents fail?
What’s the secret to a successful real estate career?
Studies show that even with such promise, hardly 10% of all real estate agents make more than $110,000. This is primarily because only some agents are willing to put in that extra work that others won’t. It’s not entirely about the unwillingness of those who fail. A number of people who take their jobs seriously and are committed to also putting in some extra effort still fail because of the lack of awareness or other factors.
The fact is that the property industry has existed forever. Over time, it has developed a few proven ways to do good business. We offer some of those here as tips and to shed a bit of light on the puzzling reasons on why real estate agents fail.
Top 5 Reasons Why Real Estate Agents Fail
1. Lack of Commitment
Lack of commitment is one of the biggest reasons why real estate agents fail. Since the work is primarily commission based, people consider it an unstable source of income. Therefore, a lot of them even after completing their initial training and obtaining their license only consider real estate as a part-time job.
While it’s true that the income can fluctuate from time to time, those who have invested extra time and effort can also account for the incredible pay-offs that comes with real estate trading. Furthermore, like all industries, the real estate market is still constantly evolving.
A pre-licensing course won’t suffice these evolving requirements. It would be wise if you invest in continuing education courses and learn some of the extra skills that may help you in your career.
Unfortunately, some are simply unwilling to go that far into the journey. The advantage there, of course, falls into the hands of those who are happy to adapt and pick up the slack.
In addition, you must also realize that clients will rarely come at your doorsteps. At least not in the early stages of your career. You would have to put yourself out there through flyers, ads, websites, and social media presence. For most, that’s practically stepping out of their comfort zone.
Buyers now prefer pre-screening their choices online before they take time to actually visit the property. Having a website or a social media page that facilitates them in this process can go a long way in earning you a lot of business.
2. Lack of Strategy
Anyone in the real estate business without a sound strategy is bound to fail. Agents without a plan of action will be left trying to get clients aimlessly. Their processes will be unorganized, and they will be wasting a lot of valuable resources on their way out of the business.
A good strategy should especially concentrate on the following factors:
- Training yourself
- Getting business to come your way
- Closing Deals
In terms of ‘getting business,’ you should always be on the lookout for ways you can market yourself. Conventional approaches aside, you can explore the online world, conduct a door to door campaign and farm a neighborhood, and even hunt for potential clients in for sale by owners (FSBOs) listings.
You must also keep educating yourself. Once you have completed your training, the good practice would be to spend some time under the mentorship of an industry expert. Additionally, you can take continuing education courses and also update yourself by keeping eyes on the developing trends and pop-culture.
Similarly, to close deals, you can conduct a lot of open houses and explore creative avenues like real estate photography and virtual tours for buyers.
3. Lack of Time
We briefly touched upon this earlier. A lot of people consider real estate a part-time profession. In reality, it demands a lot of effort and time to master the craft. Many people realize this only when they enter the industry and soon get overwhelmed by it. In the end, a lot of them feel stressed and exhausted and then quit.
The most crucial thing to get out of the mind is that it isn’t have to be a part-time profession, and it requires a dedicated focus just as much as other jobs out there. One should put in the extra effort and carefully chart out strategies for each aspect of the business. When dealing with clients, you must realize that buying a house is a big decision and it involves significant financial and emotional planning to make the final call.
Therefore, you should give them proper time, be patient and not show your frustration even if they are unable to decide at the end of the day.
4. Lack of Connections
Networking is one of the essential aspects of succeeding in any business. You must know all the people that matter in your business. Having the right connections can go a long way in making you career successful.
Besides the usual candidates for this aspect, you can establish your contacts in the local daily. If you become their first point of contact for industry information, you can quickly make a name for yourself and earn a lot of respect of the local people.
Similarly, you should have good relationships with people including web developers, social media influencers, and other such people that may come in handy from time to time.
5. Lack of Belief
A lot of people get disheartened by the initial failures and lose hope. People quit and fail when they are unable to see the bigger picture. Even if you are implementing some of the best practices for your business, they will take time to show results.
Research well before you implement a strategy. If you have done it right, believe that things will work out soon. And they will. All you have to do is not lose hope.
Having said that, it is important to conduct self-analysis. Look for your shortcomings. It may only take a few small tweaks here and there to change the course of things. Continue learning, and raise your skill level so that you never fall behind the trends in the industry.
What You Can Do to Become a Successful Realtor
Some of the essential elements to succeed as a realtor are:
- Spend time each day prospecting
- Keep business cards with you always
- Invest a good portion of your earnings on education, marketing, and building networks
- Organize open houses
- Establish online presence
- Not lose hope
Ultimately, it’s all about sticking through the initial challenges, keeping yourself up to date and upskilled, and giving the business a reasonable time to develop. Real estate is far from being just a part-time profession, especially if you’ve already spent relevant time in learning your way through it. In the event you do find early success in this field, it’s also important to remember that you should never be complacent. Take your continuing education seriously, plan each step, and focus on building strategies and useful connections that can help you out in tough times. If others like you can make it big here, there’s no reason why you should hang it up after just a few setbacks or be contented with a few good deals onset. Stay hungry and never close your doors to learning new things. Only then that you will truly know how far you can go in real estate.
Ready for you real estate continuing education? Check this video and see how you can sign up today.