7 Mistakes to Avoid When Starting a Real Estate Career

It’s no secret that real estate agents have a glamorous reputation, partly influenced by glitzy programs on TV and streaming platforms. In reality, this job isn’t for the faint of heart – it’s a 24/7 hustle, even for the most successful agents.

Not convinced? Here’s what Dolly Lenz, an Agent Image client who has sold over $14 billion in properties, said in an interview with CNBC: “I don’t like the concept of vacation, I want to be busy, I want to be busy all the time, and I always worry that if I get to a point where if I’m not working I’ll forget how to work.”

Starting as a real estate agent takes training, nerve, and financial wherewithal. The last thing you want is to pour all these resources into launching your career and not land a single home sale. To get your journey as a realtor off to a good start, keep an eye out for these mistakes.

Ditching a business plan

As they say, failing to plan is planning to fail. This is why a business plan should be at the heart of your newly established real estate business. Think of it as the North Star that guides everything you do and the decisions you make. It should include:

• The real estate markets you wish to operate in

• A SWOT analysis

• What services you plan to offer

• Market analysis and target market

• Marketing plan (more on this later)

• Competitive analysis

• Operations playbook

• Financial projections

Expecting immediate success

Real estate empires aren’t built in a day; in fact, new agents may take several months before actually closing any deals. After all, you don’t have a built-in client base yet because you’re new to the industry. You have to work doubly hard on networking and prospecting, especially if you already have entrenched top-producing agents in your area. Going the extra mile has never been more important than at this point in your career: return calls ASAP, meet with prospects after hours, do showings on weekends, send regular market updates – anything to show that you’re ready and able to help a client achieve their real estate goals.

Poorly managing your time

One of the perks of being a real estate agent is that you largely work for yourself. And even if you work for a brokerage, you won’t be chained to a chair and cubicle, either.

That said, too much of a good thing can spell trouble – and that includes too much freedom. Without anyone to prod you to follow up on that prospect or a colleague to call out your excessive use of social media, you may find yourself wasting the day away instead of closing deals. Productivity is all about discipline, so make it a habit to write a to-do list so you don’t lose track of what you need to accomplish today. Even better, put it in a very visible place – such as your cubicle or your phone’s reminder app – so it’s top of mind and not out of sight, out of mind.

Not mastering the real estate market

Here’s something all new agents realize (much) sooner than later: sales don’t just fall into your lap! If you want to be the go-to agent for buyers and sellers in your area, you have to know your market like the back of your hand. And not just surface-level information like median home values and price-per-square-foot, but also which neighborhoods are best for millennials, which schools have excellent reputations, are there dog parks for buyers who have pets, etc.

Before you decide on a location and set up shop, make sure you:

• Have studied your area and its communities so that you can make recommendations and talk about available amenities

• Know your niche – are you catering to first-time buyers, investors, retirees, high-net-worth individuals, etc.?

• Keep updated with the property laws and the market trends in the housing industry

Playing fast and loose with money

When you’re starting in real estate, you need to spend before you can turn a profit. Realistically speaking, expect no income in the first three months or so. As such, plan accordingly and budget like a pro so your seed capital doesn’t run out before your business bears financial fruit. Specifically, make sure to set aside money for the following recurring costs:

• Office supplies

• Organizational dues

• Printing of business cards and marketing tools

• A multiple listing service (MLS) subscription

• A phone for contacting prospects

• Transportation (e.g. car and fuel)

• Marketing and advertising services

• Salaries (yours and your staff – if you have any)

PRO-TIP: If you have money left over, funnel it toward marketing or training – it’s an investment that will pay generous dividends down the road.

Failing to craft a marketing plan

It’s tempting to throw money at hyped-up marketing channels, but that won’t always yield leads. That’s why you need a solid marketing plan to maximize the return on your investment.

Marketing can be divided into organic and paid. Organic is largely free (or relatively low-cost/low-effort), such as social posts, blog posts on your website, email send-outs, YouTube videos, SEO, and in-person networking. Paid marketing, on the other hand, covers sponsored posts, pay-per-click ads, banner ads, pre-roll videos, TVCs, radio spots, and print ads.

As with any investment, you don’t want to over-concentrate your spending on just a few marketing channels. At the same time, you shouldn’t spend money on platforms that don’t give good returns. What you want is a healthy mix of paid and organic marketing so you meet prospects where they are, giving you a bigger chance of turning them into leads. This also means you need to have a good understanding of your target audience and their media habits to determine which platforms or channels to use.

When crafting your marketing plan, include the following:

• Situation analysis

• Marketing Goals & Strategy

• Target Audience

• Brand Messaging

• Budget

• Tactics and implementation

Having a so-so website

House-hunting has gone digital, with 96% of all buyers using online tools to find their properties. With home searches now often starting on search bars, having a hard-working website has never been more important. It’s your calling card, listing gallery, brand ambassador, and 24/7 client concierge all rolled into one.

Now, it may be tempting to delay having a website or settle for a starter website that simply does the job, but new agents need to leave an excellent first impression. If you can’t be bothered to put your best foot forward online, how can clients trust you to represent them as buyers or sellers?

In the same way that clients should hire a professional like you to facilitate their real estate transactions, you should also hire an expert to design your website. Agent Image caters to world-renowned agents and teams like The Oppenheim Group, The Altman Brothers, The Umansky Team, Dolly Lenz, and Tracy Tutor, and we can give your website the VIP treatment it deserves.

For a FREE consultation, call 1.800.979.5799
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