Top Business Mistakes Real Estate Agents Make
- kwcric
- Sep 9, 2017
- 3 min read
Real estate agents often lead hectic lives. Our schedules are erratic and unpredictable. We find ourselves overscheduled and stressed very quickly. Avoid these top mistakes to make your career more enjoyable!
Cost of Sale - we all know you need to spend money to make money, but you need to know how much each transaction costs you to take a home from listing to sale or a buyer from interest to sale. We often throw money hoping to solve problems. To avoid this, always track the expenses on each property from your first conversation with the client. Any simple spreadsheet will do!
Tax Withholding - as an independent contractor, no one does this for you. You will need to withhold as much as 35% of your commission checks to cover taxes each year. Many CPAs will do a tax consultation for free, especially in slower months like September and October. Consult with a tax advisor so you can properly track and plan for taxes; then pay someone to do your taxes unless you truly have the background to do it yourself.
Buying Leads - this seems like a quick fix to any problem - just buy some leads and you'll solve both of the above mistakes! NO! Most online lead services will actually cost you not only in buying the lead, but also in the time lost to calling dead end leads. The best answer when someone calls and offers to sell you leads? "I deliver great service. If you refer someone to me, I will pay you a referral fee when I close the deal. That way we take the same risk. It's the only way I do business. You have faith in my ability to close a deal, I have faith in your ability to send me a quality lead."
Rudeness & Tricks In Dealing With Other Agents - real estate agents are forever. You will run across the same agents over and over. A client may be with you for many transactions but if you are going to do business in the same market with someone, quite simply, don't be a butthead. Ever. Bullying is not necessary. Questioning someone else's ability or intelligence is just hurting you in the long run. Lying about other potential offers, heavy-handed negotiation tactics, pursuing another agents' client, contacting a listed property, etc. may or may not be ethics violations, but they just don't belong in the industry. Treat other agents as you would hope to be treated. When an agent makes you super mad, try to think of your worst day and a time you overreacted. That agent might be in that place right now - seek first to understand where that agent's head might be, forgive that moment, and re-approach when appropriate.
Laziness and Sloppy Paperwork - Get the signature, don't rely on a verbal or text conversation. Get the paperwork right, even if that means redoing it. Mind your timelines to make sure what you are putting in a purchase agreement is realistic. Watch those deadlines. Sometimes minutes can cause someone to lose out on the house they loved or a blank left unsigned can make a contract unenforceable. Make sure you have someone to cover for you if you are unavailable. This is YOUR business - YOUR reputation. Care for it as if were a storefront; because it is.
The Closing Gift Miss - many real estate agents give their clients a closing gift. Often that is a thank you note and a gift card. While thoughtful, the best closing gift has some staying power. Something your clients will show their friends and say, "Look what my agent got me!" Personalized items, logo items that brand you, etc. are great ways to stay in front of your clients to earn that next referral!
Failing to Thank Referring Friends/Family/Past Clients Properly - a simple thank you is very often appreciated. A thank you note with a gift card or nice logo item for a referral should be an automatic for a real estate agent and do make it generous but not a set amount for each referral - as that could be construed as RESPA violation! A Facebook shout out in addition to the handwritten note is also a good way to recognize the referral but be sure you have permission to do so - they may have other friends in the business they'd rather not have know about it!
Not Giving Back - do you have any idea how lucky we are to be working this profession?? We have a job that can be very rewarding, enjoyable, and flexible. Thank the communities you live and work in by volunteering your time and your resources to improve them. This will return to you in personal well-being, referrals, and internal balance. Say THANK YOU to the universe for this crazy wonderful world we live in!
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