Having to be real estate agent is one of the most popular occupations in the real estate industry. Apart from having endless income opportunities, the career of a real estate agent means flexible hours and the ability to network with many people. However this does not mean that every agent of real estate ends up being successful. How many real estate agents have failed? Research has shown that as many as 80 per cent of new real estate agents fail or cease real estate in their first year. Such a high rate of failure of the real estate agent should be a cause of concern for any prospective agent.
Why Real Estate Agents Failed: 10 Explanations
Here are some of the reasons for the failure of real estate agents and how you can stop them:
1. Being Active for the Wrong Reason
The real estate agent company isn’t for everybody. Many agents have disappointed since they jumped into their jobs for the wrong reasons. Some get interested in real estate because they believe all agents are making a lot of cash. This is a fallacy, since the average agent doesn’t make more than $40,000 a year. Others decide to become real estate agents because they enjoy watching shows like ‘Extreme Makeover Home Edition.’ They don’t take the time to find out what the real estate agent really entails. If you get into real estate for the wrong reason, the chances of failure are very high. So before you pursue this career path, do some research and then ask yourself, “Why do I want to be a real estate agent? “-Think long and hard of your response.
2. Don’t Work Hard Enough
It takes a lot of hard work to be a good real estate professional. It means long days and nights, with blood, sweat and tears. The key reason why real estate agents struggle is because they are not able to work. If you want to be competitive, be prepared to work long, irregular hours. Real estate isn’t your usual 9-5 work. You’re going to have to work a lot of weekends and nights and be available by email and phone almost 24 hours a day. To get an idea of what this job is all about, begin by reading this: What does a Real Estate Agent do exactly? Also if possible, spend some time with the best real estate agent to find out what they do on a regular basis.
3. Not Having Enough Savings To Save
For several real estate brokers, it takes months or even years until a contract is successfully completed. Since their earnings are dependent on commissions, this may mean that they have had no income for some time. Therefore, before becoming a real estate agent, make sure you have enough cash left to make student loan payments, auto loan payments, bill payments, grocery purchases, etc. Your savings should also be sufficient to run your real estate business. As a general rule of thumb, make sure to save enough to last you for at least 6 months. You’ll be able to function more efficiently, trusting that your bills are being taken care of.
4. Part Time Working
Another common explanation why real estate agents struggle is that they want to work part-time in real estate. Although it is possible to succeed as a part-time agent, the chances of failure are far greater than those of full-time agents. When buyers and sellers are searching for an agent, they’re going to want someone who’s readily available. As a result, they are more likely to recruit a full-time agent than a part-time agent. In addition, becoming a part-time real estate agent would mean skipping many of the leading generation of opportunities, such as trade shows, conferences and open houses.
5. Not Having Specific Action Plans or Targets
Why are real estate agents failing?
Goal setting is a key element for any effective company. If you’re not setting the right targets or making action plans, you’re more likely to fail. Top real estate agents are still setting and reviewing priorities and action plans. You need to set targets, such as the amount of prospecting calls to be made, the number of transactions to be done, and the number of sales to be made. Having specific priorities and action plans will hold you accountable and improve your profitability.
6. Not Knowing How To Generate (or Qualify) Real Estate Leads
The generation of leads is one of the most critical skills of a successful real estate agent. Not having leads means not being able to close the deal. The first thing you need to do as a new agent is to determine how to create leads.
Are you going to have open houses every week?
Are you going to walk around the neighborhood knocking on the doors?
Are you going to make paid Facebook ads?
Are you going to use online lead generation software or even pay for eligible leads?
Find a plan that works for you and get defensive about the generation of real estate managers.
Another reason real estate agents struggle is that they invest so much time on unqualified leads. Although you’re never supposed to throw away leads, you should give and lead the time it deserves (or doesn’t deserve). The only way to prevent this error is to ensure that your real estate leads are eligible.
7. Not Knowing How To Generate (or Qualify) Real Estate Leads
Most real estate agents struggle because they do not know where or how to market themselves. Some think that marketing is about bombarding their real estate prospects with sales notifications. However this tactic is only going to get you unfriended or unfollowed on social media. One of the easiest ways to market yourself is by exchanging valuable knowledge with your audience. This knowledge can be shared by blog posts or social media updates. Since such content is beneficial and non-promotional, people are likely to share it with others on their networks. Over time, people will begin to see you as a leading figure in the real estate industry.
8. Being hard to deal with
Since real estate requires interacting with others, interpersonal skills are a must for real estate agents. If sellers and buyers don’t like working with you, they’re probably going to step on and search for another agent. In addition to getting along with buyers and sellers, agents can also learn how to communicate to other agents. If it’s hard for you to deal with other agents would do their best to avoid you. This would mean sacrificing future referrals and opportunities for cooperation.
9. Inability to deal with difficult times
The housing market is experiencing a lot of volatility. When the market is bullish, many agents find themselves flourishing. However several agents struggle because they cannot cope with difficult business seasons. That’s why it’s so important to prepare ahead for difficult times. Be sure to expand your contacts, pipeline, and overall business in good times.
10. Thinking about success in real estate is easy
No successful real estate agents had an easy ride to the top of the line. It possibly took years to learn and develop their skills. Therefore you need to know that success in a real estate profession is not going to happen overnight. Come on up, roll your sleeves and get ready to work as a real estate agent for your success!