How to Determine the Value of Your San Diego Home?
Every time I speak with someone about my offer and career, it always arises that "they've thought about stepping into real estate" or know someone who has. With so many people contemplating getting into real estate, and achieving into real estate - why aren't there more lucrative Realtors in the world? Well, there's only a great deal business to go around, there can only be numerous Real Estate Agents in the world. I am, however, that the inherent nature with the business, and how different it really is from traditional careers, causes it to be difficult for the average person to ensure that you make the transition in to the Real Estate Business. Being a Broker, I see many new agents make their distance to my office - on an interview, and sometimes to begin with their careers. New Real estate professionals bring a lot of great qualities on the table - a lot of energy and ambition - but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Agents Make.
1) No Business Plan or Business Strategy
A lot of new agents place all their emphasis on which Real estate property Brokerage they will join when their shiny new license is available in the mail. Why? Since the majority new Real Estate Agents haven't ever been in business for themselves - they've only worked as employees. They, mistakenly, think that getting into the Real Estate business is "getting a new job." What they are missing is that they're gonna go into business for themselves. If you've ever opened the doors for any business, you know that one of the key ingredients is your business plan. Your business plan can help you define where you're going, how you're getting there, and just what it's going to take for you to make your real estate business a success. Listed below are the essentials of any good business plan:
A) Goals - Give me an idea? Make them clear, concise, measurable, and achievable.
B) Services You Provide - ensure be the "jack of all trades & master of none" - choose residential or commercial, buyers/sellers/renters, and what area(s) you need to specialize in. New residential realtors tend to have the most success with buyers/renters and after that move on to listing homes after they've completed several transactions.
C) Market - that are you marketing yourself to?
D) Budget - consider yourself "new real estate agent, inc." and jot down EVERY expense which you have - gas, groceries, cellular phone, etc... Then write down the new expenses you are taking on - board dues, increased gas, increased cell usage, marketing (extremely important), etc...
E) Funding - how are things going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you've searching for yourself, when are you going to break even?
F) Marketing Plan - how are you acquiring the word out concerning your services? The MOST effective way to promote yourself is to your own sphere of influence (people you're friends with). Make sure you do so effectively and systematically.
2) Not While using the Best Possible Closing Team
It is said the greatest businesspeople surround themselves with individuals that are smarter than themselves. It will take a pretty big team to close a transaction - Buyer's Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and frequently more! As a Real estate professional, you are in the position to relate your client to whoever you decide on, and you should make sure that anyone you refer in will likely be an asset to the transaction, not somebody who will bring you more headache. Along with the closing team you refer in, or "put your name to," exist to make you shine! After they perform well, you get to take part of the credit as you referred them in to the transaction.
The deadliest duo available is the New Realtor & New Mortgage Broker. They gather and decide that, through their combined marketing efforts, they could take over the world! They're both emphasizing the right part of their business - marketing - however they are doing each other no favors by choosing to give each other business. If you refer in a bad agent, it might cause a minor hiccup from the transaction - you are making a simple phone call as well as a new agent can bind the home in less than an hour. However, given it typically takes at least a fortnight to close a loan, the use of an inexperienced lender, the actual result can be disastrous! You might find yourself in a position of "begging for any contract extension," or worse, being denied a binding agreement extension.
A good closing team will typically learn more than their role from the transaction. Due to this, you'll be able to turn to them with questions, and they're going to step in (quietly) after they see a potential mistake - given that they want to help you, and in return receive much more of your business. Using good, experienced players for your closing team will help you infinitely in doing work worthy of MORE business...and best of all, it's free!
3) Not Arming Themselves with the Necessary Tools
Getting started as a Real Estate Agent is dear. In Texas, the license alone is an investment that will cost between $700 and $900 (not implementing into account the amount of time you'll invest.) However, you'll come upon even more expenses by visiting arm yourself with the necessary tools of the trade. And don't fool yourself - they are necessary - when your competitors are definitely using every tool to enable them to.
A) MLS Access is probably the most expensive necessity you're going to run into. Joining any local (and state & national, automatically) Board of Realtors will assist you to pay for MLS access, along with Austin, Texas, will run around $1000. However, don't skimp in this field. Getting MLS access is among the most important things you can do. It's what differentiates us from the average salesman - unfortunately we cannot sell homes, we present any of the homes that we have available. With MLS Access, you'll have 99% of the homes for sale locally available to present to your visitors.
B) Mobile Phone w/ a Beefy Plan - Currently, everyone has a cell phone. And not everyone has a plan which will facilitate the level of use that Real estate professionals need. Plan on getting at least 2000 minutes a month. You want, and need, to be available to your clients 24/7 - not only nights and weekends.
C) Computer (Preferably a Laptop) - There is not any way around it, you have to have a computer & be savvy enough to work with email. You would be smart to invest in some business store, as well. If you'd like to low cost (and who wouldn't) then you can certainly get the client & email keeper Thunderbird from http://www.mozilla.com and you'll get a free office suite from http://www.openoffice.org The only real downside to these programs is that they do not sync along with your PDA or Smartphone. A Laptop are a wide plus because you can work from home or on the run. New Real Estate Agents tend to be surprised by just how much time they spend Outside the office, and a laptop makes it possible to stay on top of your projects while on the go.
D) Property Friendly Car - It's not necessary to have a Lexus, but your Miata won't do the trick. Ensure that you have a 4 door car or SUV which is comfortable and presentable. Ensure that it stays clean, and for God's sake, don't smoke in it! You're going to spend time and effort in your car, and place a lot of miles onto it, so if it's fuel efficient, it's actually a BIG plus. If you're driving a sporty convertible, or still have your KILLER Jeep from college, it is time to trade it in.
4) Lack of Proper Funding
If you've taken the time to generate your business plan, than you should definitely have your budget, however i can't stress enough the value of having and following a budget. However, the budget alone doesn't address giving her a very aspect of funding. 90% coming from all small businesses fail because of lack of funding. Typically, new agents should have 3 months of reserves in savings before you take the leap into full time agency. However, profit the bank isn't the only way to answer the question of funding. Maybe your partner can support you for a certain period of time. You can keep a part-time job that wont interfere with your business as being a Real Estate Agent. Many successful waiters result in the transition to successful real estate agents with no money in the financial institution. When you start your new business, don't expect to earn any income for, at the very least, 60 days.
5) Refusing to shell out Money on Marketing
Most new Real estate professionals don't realize that the challenging part of the business is locating the business. Furthermore, they've just paid out around $2000 for their license and board dues, so the LAST thing they want to do is always to spend more money! Again, the situation lies in the lack of knowing that you've just jumped into the Real Estate Business, you've not taken a new job. And then any good businessperson will show you that how much business you will get is directly correlative to the amount you SPEND on marketing. When you purchase the right brokerage, then you'll get some good inbound leads. However, don't neglect a good, personal marketing campaign from the beginning to get your own name out since the Real Estate Agent to go to.
6) Not Focusing Their Marketing Efforts from the Most Effective Areas
The reason why many new Real estate professionals who do begin purchasing personal marketing stop is they spend it in the wrong place. Easy and simple place, and where conventional Real estate property tells you to spend your hard earned money, is in conventional print marketing - the newspaper, real estate magazines, etc... Here is the most visible place to see real estate advertising, it's where large offices spend a great part of their money, so many new agents mistakenly spend their money here. This becomes very frustrating to new agents for the low return. Large brokerages have enough money to spend their money here as they are filling two needs - they're marketing their particular properties for sale while creating new buyer traffic for his or her buyer's agents. New Real Estate Agents should look to their own sphere of influence and referral marketing to determine the most effective return on their investment. A representative can spend as little as $100/month marketing to their family, friends, and colleagues and see an incredible return. There are lots of great referral systems around that every focus on the same premise - that when you consistently market you to ultimately your sphere of influence because Real Estate Agent to go to - you will get more business. The hot button is to pick a system and follow that system. You will notice results.
7) Picking out the Wrong Brokerage for your Wrong Reasons
New Agents choose their new broker for a variety of reasons - they've got a good reputation, they offer the most competitive split, work is close to their property, etc... While these alone aren't bad reasons to choose a broker, they aren't planning to do a lot to help you in your success. The #1 reason to choose a broker, and also the question to ask is, "What would you offer your new agents." When the answer is, "The most competitive split in town" when they are not keep looking. Remember, 100% of $0 remains to be $0. If you're leaning on the largest broker around town, who has a great reputation, consider this: You're starting a BUSINESS not a JOB. While it may be fantastic to brag on your friends about landing work at a prestigious company, it's really no accomplishment to hang your license on a single wall in the same office as other successful agents.
Your #1 concern when interviewing new Brokers is the thing that they offer you like a new agent. Have they got incoming leads? Precisely what does their training program contain? What's their retention level? What's their average sales price? Would they encourage their agents to promote themselves? A Broker's purpose is usually to help new agents start successful careers and also to help established Agents progress their careers to another level. As a new agent, concern yourself less with commission split or agency name plus much more with specific programs and agency standards.
A new path in Real Estate is quite exciting. Starting a Property business provides the new Agent with opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a whole new Real Estate career can also be a very scary prospect. However, should you avoid the 7 Top Mistakes Rookie Real Estate Agents Make, then you'll be far before competition!