There are very few professions with a higher failure rate than real estate. It’s a tough business, and frankly, most people simply can’t cut it. In fact, 87% of agents leave the industry altogether after only 5 years. So the question becomes, what do you need to do (or not do) to join the seemingly exclusive “club 13” – the 13% of agents that succeed in real estate?
Here are 7 reasons why agents (especially new agents) fail in real estate:
1. They’re interested in real estate, not committed to a career in real estate.
This is a mindset thing. If you’re interested in doing something, you’ll do it when it’s convenient. Commitment is being willing to do whatever it takes, no matter what, for as longs as it takes to achieve your goals.
2. They have a Monday through Friday, 9-5 mentality.
Most kids don’t say, “when I grow up, I want to be a Realtor!”, and most young adults don’t sit down with their guidance counselor in high school and say, “I want to be a Realtor when I graduate!” Instead, people typically come to real estate as their second or third career. Unfortunately, they bring the 9-5 mentality from their previous job with them. You don’t have a job; this is your business. You will get from it what you put in, and let’s be honest, in the beginning you have a lot of work to do.
3. They’re not strategic about their business.
Do you know your market better than your competition does? You should. Especially when you’re new. Look at the “hot sheet” daily. You need to know all of the new listings, new pendings, what’s selling, what’s not, average days on market, list-to-sale ratio, etc. Also, ask yourself, “Where do I fit in?” Even if you are part of a team, you have a unique value proposition. What part of the industry do you want to specialize in?
4. They’re afraid to make mistakes.
To be successful in life and in business, you have to go make a ton of mistakes. The best Realtors get great at this business by making mistake, after mistake, after mistake, and learning the lessons that come from them. That is how you get experience!
5. They don’t have a mentor or role model.
We are the average of the five people we spend the most time with. You model the behaviors and mindset of those people. Who are you aspiring to be like and who do you look up to? If you’re on a team, this could be your team leader. Dissect how they think, how they talk, and what they do. Then rip off and duplicate!
6. They don’t have sales swagger.
I’m sorry to say it, but we are salespeople. We like to call ourselves consultants, but the sooner we come to grips with the fact that we are sales people, the sooner we will have powerful conversations and we’ll see our conversion rates go through the roof. Most people enter this industry with no sales, marketing, or negotiating skills. They fail because they fear getting rejected or not knowing what to say. If you really want to be successful in real estate, put yourself in the hardest possible selling situations, and do it over, and over, and over again. Get rejected, get hung up on, and learn to handle objections. Yes, this might mean you need to incorporate script and role-play practice…
7. They don’t have a goal and it shows in their schedule.
State a goal and do the math. If on average, 50 conversations equals 1 sale, multiply 50 by your transaction goal for the year, and you get the number of people you need to talk to every year, month, and day to reach your goal. Then do the work and measure your results. Do your behaviors (i.e. your schedule) align with your goals? Show me your schedule and I can predict your future. Most new agents get into real estate for the freedom. Guess what most people do with freedom…? Nothing! Discipline is required to build a business and to be successful.
So what’s the bottom line?
If you read this and say, “Okay, I don’t want to fail, so I’m going to do the opposite of what agents that fail do!” Great! Commit to being successful, model the success, and you will become successful. If you read this and think, “You know, if that’s what it takes, I may have chosen the wrong career…” That’s okay! Congratulations! Now go do something you are passionate about.
—Matt Bex, CEO, HergGroup Vermont