Real Estate Mistakes to Avoid When Starting Your Career
New agent, rookie, newbie, upstart… whatever you want to call yourself, you just finished your real estate education and you’re in an all-new world. You feel all alone… and desperate to start making things happen. But mistakes real estate agents make at this stage can slow or stall progress, and that’s the last thing you need.
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87% of agents fail within their first five years in the industry, and that is a pretty hefty real estate agent dropout rate. New agents face challenges such as lack of preparation, unrealistic expectations, and insufficient leads, and they need to be careful in avoiding costly mistakes. However, if you adopt a growth mindset, seek continuous learning, and leverage technology, you can stay competitive in the evolving real estate market.
So I thought I’d share some mistakes I see agents make when they get too eager, too cocky, too lazy, or just too oblivious to avoid them. It’s normal to be eager to jump in, but avoid these common mistakes that can hinder your progress. Let’s dive in and ensure you start your career on the right foot.
What is the biggest risk of real estate?
The biggest risk for real estate agents is the potential for fluctuating income due to the commission-based nature of the profession, which can be unpredictable and inconsistent, especially during economic downturns or market fluctuations. Additionally, agents face competition from other professionals in the industry, regulatory changes, and the risk of legal liabilities if they fail to meet ethical or legal standards in their transactions.
However, with the right mindset and guidance to avoid common real estate mistakes, you can take on these risks without hesitation.
The Most Common Real Estate Mistakes Made by New Agents
They Choose the Wrong Brokerage
Ooh, I can see you now, excited and on the edge of your seat, waiting for me to deem certain brokerages “right” and others “wrong.” No. That’s not what I mean here.
What I mean is that it’s a common real estate mistake to choose a brokerage for the wrong reasons. Choosing the right brokerage is crucial for your career growth, but it’s not about finding the most prestigious or lucrative option. For the vast majority of new real estate agents, I’d argue a strong training program is way more important than a bigger split. It’s essential to assess your needs and priorities to perform at your best and seek a brokerage that aligns with them. Don’t hesitate to ask questions during interviews to ensure a good fit where you can thrive professionally.
The same goes for real estate coaching and mentoring and finding a supportive culture where you feel comfortable.
They Have No Written Plan
Some agents make the real estate mistake of getting into this business thinking it’s just another sales job but with higher price tags than selling cars or furniture.
What some overlook is the reality of the situation. As a real estate agent, you’re essentially an entrepreneur, requiring a detailed real estate business plan. Entering this field without one is akin to embarking on a cross-country road trip without a planned route. You might reach your destination eventually, but the journey will be prolonged with numerous interruptions and delays along the path.
Create your plan, and share your business plan for review. That way, you can get feedback from other business owners and make adjustments before you get too far into your journey.
They Fail to Invest in Their Businesses
In real estate, the entry barrier may seem low compared to other industries, but let’s be real, that doesn’t mean it’s a walk in the park. The truth is, most don’t make it past the first five years. Why? Well, it boils down to one thing: because they aren’t willing–or can’t afford–to market themselves properly.
This isn’t just another sales job; it’s building a business. You need to invest capital into any business to make it successful. Whether it’s splurging on real estate lead generation from platforms like Zillow or hiring experts to craft your personal brand, real estate marketing strategy, and establishing your online presence. If you’re here for an easy ride with zero overhead, I hate to break it to you, but that mindset won’t cut it in this game. It’s time to shift gears and invest in your success if you want to thrive in this industry.
A huge real estate mistake is getting into this business because it’s “easy” and “requires no overhead. If this is you, STOP! You’re not going to be successful with that mindset or approach.
They Don’t Invest Enough Time Learning the Business
Many newcomers in real estate dive in with grand dreams to become a luxury real estate agent with Million Dollar Listings, assuming it’s all about glamour and quick cash. But let’s get real: success in this field requires becoming the go-to expert in your market. It’s not just about getting licensed; it’s about mastering contracts, market trends, property values, and more.When you learn the business, showcase that expertise in your marketing efforts. Remember, your role is to be the “knowledge broker,” so invest in ongoing real estate education beyond just earning your license.
I’d recommend you devote time every day to learning more about this business. You can start by watching every video on the Tom Ferry real estate YouTube channel or searching right here on the Tom Ferry blog for resources like new real estate agent tips, getting started in real estate marketing, or prospecting scripts and how to write a realtor introduction letter.
Seek guidance from seasoned agents in your office; inquire about shadowing them to grasp their methods, systems, client interactions, and more. Be a sponge for knowledge, especially in your first year. Trust me, investing in learning the ropes early on will fast-track your success.
They Don’t Work on It Every Day
As a new agent, your workload might seem light at first, but as clients start rolling in, it’s easy to feel overwhelmed by the demands of this business. Remember, you’re not just an agent; you’re building a business that requires consistent effort every day.
Distinguish between working “in” your business—serving clients, conducting research, negotiating—and working “on” your business—implementing systems, technology, and marketing strategies. It’s essential to approach tasks with a CEO’s mindset, focusing on continuous improvement and disciplined action rather than sporadic efforts.
This is a big real estate mistake: If you lack that discipline, now is the time to find someone to hold you accountable – BEFORE you develop bad habits that are nearly impossible to break. Accountability can take many shapes, from your broker or manager to a deal you make with your family or friends, to hiring a real estate coach, to finding a peer or real estate mentorship group. Whatever form accountability takes for you, make sure you have it.
Don’t Be Afraid to Make Mistakes
It might seem contradictory in a blog about real estate mistakes to avoid, but here’s a bonus tip: Don’t be afraid to make mistakes.
While the real state mistakes discussed earlier are significant, don’t let the fear of making mistakes paralyze your day-to-day operations. Embrace the inevitability of errors and commit to learning from them. The key is not to repeat them. Remember, avoiding mistakes altogether likely means you’re not pushing boundaries or bringing innovation to your market.
Whether you’re a seasoned pro or just starting out, share your insights in the comments below. Veterans, what would you add? Rookies, what’s your biggest takeaway? Let’s keep the conversation going!
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