Why Do Real Estate Agents Fail?
While real estate can certainly be lucrative, it’s also a tricky business—and not everyone succeeds. If you’re considering a career in real estate, you should be prepared for the common pitfalls real estate agents face and armed with smart strategies for overcoming them. Below we will dive into the top five reasons real estate agents fail, and we’ll answer the questions:
- Why do real estate agents quit?
- Is being a real estate agent hard?
Issue #1: Treating Real Estate Like a HobbyNot being fully dedicated to a real estate career is the number one reason real estate agents aren’t successful. When you’re a real estate agent, you have to hustle! If you want to be successful, it can’t just be something you do on the weekends like a hobby—treat it as a career. While one of the perks of real estate is that you get to manage your own hours, you still need to dedicate enough time to your career to see results. The most successful real estate agents work extra long hours, including weekends and evenings. They know that to be successful you have to be available when your clients need you.
The Solution: Go in Fully DedicatedTo start your real estate career, you have to go all-in, knowing that it’s going to take a significant amount of time. But as many current agents will tell you, if you are passionate about helping clients with one of the biggest decisions of their lives, it’s all worth it. In fact, we recommend that before you take the plunge into real estate, you interview real estate agents to get an understanding of a typical agent’s daily life. While not every real estate agent is the same, the top-performing agents have a lot of similar qualities and a similar work ethic.
Issue #2: Not Generating Enough LeadsA real estate agent only gets paid when a client hires them to sell a house or to help them find a house. To be a successful real estate agent, you’ll need to have a steady stream of people looking for your services. While many of your clients are likely to be from word of mouth, how are you supposed to build your portfolio at the very beginning?
The Solution: Invest in MarketingMarketing is the best way to generate leads at the beginning of your real estate career. All real estate agents need to be paired with a brokerage, and sometimes these brokerages will assist you with your marketing (after all, if you don’t get paid, they don’t get paid). However, it’s not guaranteed. At the very least, you will get your photo and a short biography on their website. But with so many seasoned real estate agents listed on the brokerage website, many clients are likely to choose them, so new agents need to take marketing in their own hands. Common ways new real estate agents can market themselves are through open houses, social media, personal websites, and other online marketing. To be a successful real estate agent, you’ll always need to know where your next lead is coming from.
Issue #3: Underestimating the WorkBeing a real estate agent is hard work. And if you’re switching to a career in real estate thinking that it’s going to be easy, you’re probably going to be disappointed. Successful real estate agents need to go into the field knowing they’re going to work strange hours, deal with opposing personalities, and feel the pressure to work all of the time. Almost all successful real estate agents put in a lot of hours, frequently more than a typical nine to five, and any assistance you’d want to hire will come out of your own pocket.
The Solution: Prioritize Your TimeThe solution to this problem is more mental than anything. You’ll need to make sure your lifestyle will mesh well with an active real estate career. Ask yourself:
- Are you okay working with people that you wouldn’t normally associate with?
- Are your working hours flexible? Can you handle late-night texts and emails?
- Are you as a person flexible? Are you comfortable with people constantly wanting you to drop everything to assist them?