Top 3 Mistakes Rookie Real Estate Agents Make — And How To Avoid Them

First off this is by no means a comprehensive guide to avoiding rookie blunders but it is definitely a starting point for any of you thinking of becoming an agent or those of you just starting out in the real estate world. The more informed you are the better off you’ll be!

1) Not interviewing with several brokerages / Selecting brokerage for wrong reasons
– One of the most important decisions you face as a new agent is choosing which company you will go to work for. Many new agents will simply go with the big-name companies they’ve seen on billboards around town or on TV commercials without talking to other brokerages. It is in your best interest to interview with at least a few different brokerages for several reasons:

• Get to meet the broker and see how well you get along
• See what differentiates one brokerage from another (training, marketing, commission plans, etc)
• Do they offer a mentoring/start-up program?
• Fees / Floor time / Technology / Health Insurance / etc.

With interviews taking at MOST one to two hours you are definitely better served by interviewing with at least a few brokerages.

2) Start-Up Fees and Expenses
– This one can really affect new agents right out of the gate. In addition to RE school, which can run several hundreds of dollars, you also have to pay for state exam(s), licensing fees, association/board fees, usually some sort of “office” start-up fee, lockbox key fees, and so on and so forth.

You MUST be prepared to pay these up front and still have enough reserves to help you through the rocky transition phase most new agents go through. The general rule of thumb is a 2-4 month “Just In Case” reserve fund. Marketing and advertising expenses should also be taken into consideration here if that is an avenue you wish to pursue. On a side note, be sure to keep good records of all of your expenses as well as all of your receipts!

3) Not Having a Clearly Defined Plan of Action
– So you’ve passed the exam, been hired with one of the several brokerages you’ve interviewed with, gone through all of the paperwork, had your business cards / riders / name badge / open house signs ordered, gone through office orientation, and you’re finally sitting in an empty cube in the office! …. Now what?…

This is probably the BIGGEST cause of new agent dropout because without a clearly defined plan of action you will NEVER be as successful as you want to be. Now to be fair, most brokerages will offer some sort of training that will help you layout some sort of basic business plan. Do yourself a favor and PAY ATTENTION! I’ve had success by generally following these points:

• Setting Goals - By setting goals you always have something tangible to work towards and can constantly tweak your efforts to make sure you are progressing steadily. For example if you have a gross commission goal for the year you can work backwards and determine how many new listings you need to take every month to keep up with your goal; if you fall behind in taking new listings you will see it immediately and can take immediate corrective action.
• Budget - This can be broken down much further but at the highest level you need to make sure you allocate sufficient funds to whichever avenue you deem most appropriate and be sure you stick to your budget. Advertising/Marketing can take up a large majority of this.
• Marketing - As a new agent your biggest hurdle will be getting your name out there and drumming up new business. If you already have a large Sphere of Influence (SOI) you are off to a great start and can start there, but if you don’t you have that much more of a challenge to overcome! There are many types of marketing to pursue, among them Direct Mailings, holding Buyer/Seller Seminars, taking Open Houses, etc. Be sure to hand out business cards every chance you get and let everyone you meet know that you are in the real estate market.
• Scheduling - This one is definitely the most important for myself. Have you ever found yourself constantly busy throughout the day yet when you get home you find you really haven’t accomplished all that much? Having a schedule that clearly outlines what, when and why you are doing things will help greatly in Real Estate. Take the time to sit down each morning to look over your schedule for that day to mentally and physically prepare yourself. It helps!

I hope these basic tips are helpful to some of you!

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