Have you just acquired a real estate license and are wondering how you’ll make it in the game?
For many people, taking the real estate licensing test is a nerve-wracking process. However, many don’t realize that that’s just the tip of the iceberg. Surviving as a real estate agent and growing a successful career is a whole different ball game.
According to statistics, an estimated 87% of new real estate agents fail in their first five years. Such a huge statistic is enough to discourage many newbies out there.
What if I told you it’s possible to win? If you look at the remaining 13% of the agents who make it past the first five years, you’ll notice that you can succeed with proper planning and the right strategies. In this article, we’re going to look at some vital tips for new real estate agents to succeed within the first few years.
1. Grow Your Network
The real estate industry is all about networks and relationships. You need to build your networks in the industry. Make people trust you so that they can remember you when it’s time for them to buy or sell.
One of the major pitfalls of new real estate agents is limiting their networks only to family and friends. While it’s a great starting point for new realtors, it may not be as effective in the long run. In real estate, you need at least 20 leads to get a single buyer or seller. You must invest your time in growing your networks.
Real estate agents aren’t the only professionals involved when closing a deal. Get to know other professionals, such as property inspectors, mortgage lenders, plumbers, attorneys, and painters, among many others. Most of these people are likely to know people who know other people who want to buy or sell a home. The best thing about this kind of arrangement is that you can slowly build a referral group where you refer clients to each other based on trust and credibility.
Also, since you’re at the beginning of your career, it makes sense to prioritize relationships over money. You don’t have to always make a sale. Build a good rapport with everyone you come across. This is the key to building long-term relationships. Besides, many people tend to share their experiences with others when they’re satisfied with your services. Offer positive experiences so that you can find new clients through word of mouth.
2. Have a Business Plan
One major mistake new real estate agents make is viewing themselves as employees. You need to change your mindset and realize that you’re 100% responsible for your career growth, time, and finances. This means that you must think of yourself like a business.
Create a business plan that clearly defines your goals, where you want to be in a few years, and how you’ll achieve your goals. Don’t just throw yourself into the wilderness without a clear vision of where you’re going.
Your business plan should encompass the following aspects:
- The number of prospects and leads you need to contact daily or weekly and get appointments
- The number of appointments you must meet every week
- The number of listings you need to sign every week or month
- The number of deals you have to close
- The amount of money you are willing to spend on lead generation, property showings, and marketing
You also need to have a realistic financial goal. Determine how much income you’ll need to sustain yourself so that you can have a realistic budget. Talk to other real estate agents and find out how much they made in their first year, what steps they took to achieve that figure, and how they spent their money.
Conduct research on your local market. What works for another agent in a different location may not work for you. While you can hit or exceed your initial goal, don’t assume that you will make more than your target. Many agents have had to work part-time in another job as they built their careers.
The key to succeeding in your first few years as a real estate agent is to think like a small business. Your business plan should help sustain your growth. Don’t forget to regularly measure your profits and growth.
3. Tell a Story
Successful real estate agents know you must tell a story to grow your career. You need to show your target market how you stand out from other real estate agents and why they should choose you. Don’t just show properties to as many potential clients as possible. Try to capture their interest as well.
How do you tell a story?
Be creative and communicate in a way that your audience relates to your message. Your story should help potential buyers see themselves in the property you’re selling. Put in the effort to tell a powerful story that will influence your buyers’ decisions.
For example, you can ask the property sellers about some of the cherished memories they have in the property. You can use these memories to tell a powerful story. If you have a young couple interested in the property, tell them how the previous owner loved hosting parties and events in the backyard.
However, be honest about your message. Remember, you’re also building trust. Being untruthful can have grave effects on trust.
4. Have an Online Presence
Traditionally, home buyers would have to physically walk into a brokerage office and go through a binder of the available listings. You just had to sit in your office and clients would come to you.
Times have changed. We live in a digitized world. Real estate buyers now first look for listings online before making purchase decisions. Everything is online nowadays. It would be detrimental not to have an online presence.
Channel some of your efforts into building an online presence. Many real estate agents have their own websites where they have their credentials, experience, specialty, and client reviews. You can also have a profile on real estate platforms such as Zillow, Realtor.com, and Trulia.
In addition, you need to have social media pages on platforms such as Facebook, Twitter, LinkedIn, and Instagram. If you’re into video marketing, you can be present on TikTok and YouTube as well. These platforms will help you increase your visibility and give you access to a wider pool of prospects.
However, creating an account isn’t just enough. Remember, you’re competing against hordes of other real estate agents. Ensure your social media profile has the following:
- A brief biography that outlines your skills, specialty, and unique abilities
- A professional profile picture
- Your professional contact information, including email address, phone number, and website
- Real estate keywords and hashtags
Make sure you’re not just using your social media profiles for visibility, but for lead generation as well. Establish yourself as a market expert by sharing your local market knowledge, tips, and trends. Use your posts as a way to show your listings to more people.
Other than having an online presence, you need to have an effective marketing strategy. Our Pro Membership will show you the right tools to reach more prospects. Visit https://soldouthouses.com/pro and access a 14-day free trial.
5. Be Patient
Regular employees are assured of a paycheck at the end of the month. Real estate agents are different since they are independent contractors. You won’t get your commission until you facilitate a closed deal.
During your first years as an agent, you’re likely to spend most of your time building your reputation. Your income might be slow. This is why I recommended you have realistic financial goals. Slow business in the first few years is the reason most new agents quit. Patience and perseverance are assets you must have.
You must have the resilience to withstand possibilities such as:
- Possible deals falling through
- Prospects turning you down on cold calls
- Hot leads becoming cold
- Buyers ghosting you
- Many meetings but no sales to show for it
- Low attendance at your open house
- Possible clients working with other agents
- Prospects refusing to sign agreements
We don’t want to scare you. However, it’s better you understand the reality of the real estate industry from the beginning. See each failure as a motivation to rise higher. Be patient as you grow and develop your skills. Give yourself at least 6 months to one year to close your first deal. Use this time to polish your skills and work on your communication skills.
Read Next: Must-know New Realtor Tips and Career Advice.
I became a realtor when I was 25, Right now I’m a digital marketing expert helping realtors, brokers and real estate agents generate more leads online.