Why New Licensees Fail at Real Estate

By
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional TN Broker: 208698
http://actvra.in/4WYK

They Come, They Go, But More Go than Stay

 

The road to success for a new agentOver the years I managed, trained and been a broker/owner who had the responsibility to interview and hire new agents into the business. I always used a list of questions that helped me decide the motivation and potential of the licensees. It's not all about the background, experiences and intelligence but about the willingness to invest both financially and personally into a new career. I made good hires and some not so good hires.

Successful agents present a glamorous picture of the world of real estate. We drive nice cars, live in nice houses, get to travel and seem to have clients always waiting for our services. The outsiders looking in see poised and confident real estate agents that lead a fun career and life. The new agent wants the same for themselves.

They don't see the long and late hours, days of working with no days off, the early morning distress calls and the weeks, months and years of experience and learning that has taken place to get to that level of success. It looks easy and we are at fault for making it seem like no effort is needed.

When the new hire starts, there is lots of new energy and enthusiasm. There is a commitment to learn and time is invested in studying forms, learning scripts, figuring out where to find buyers and sellers and maybe even shadowing a seasoned agent. There is lots to do and then frustration sets in. The self questioning begins like when will I get my first sale and why should a seller pick me over other more experienced agents? The appeal of the job has begun to fade and looks a lot less appealing. Reality has set in that it isn't nearly as easy as it looked and doubts and uncertainty come to mind.

Maybe this wasn't the right choice for a career. It is so much harder than ever imagined and the results aren't happening fast. Money is running tight and so is the energy and commitment that was there in the beginning.

These are the REAL reasons why real estate agents don't make it in the business.

  • Looking through rose-colored glasses
  • Unrealistic time table for results
  • Cash flow not sufficient to relieve day to day bill pressures
  • Not enough direction and management
  • Failing to establish systems to build a business
  • Inexperience, not knowing the right questions to ask
  • No sales skills or no real desire to learn
  • Not understanding how an independent contractor must work
  • Lack of creativity and interest in being resourceful
  • No written goals or plan
  • Not a self starter
  • Unwillingness to venture out or be rejected
  • Easily distracted by other responsibilities
  • Lack of dedication and time commitment
  • No love for the business 

New agents need to look into the future and know that it isn't going to be easy. Most successful agents take years to develop routines and master the skill of closing deals. You have to like people and want to serve. It takes commitment, determination and a clear goal. If you don't that, you will be one of those agents that comes and goes.

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When you need Real Estate services in Clarksville TN

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        "The Real Debbie Reynolds"

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Clarksville TN Homes

Berkshire Hathaway HomeServices-PenFed Realty

2503 Wilma Rudolph Blvd., Clarksville, TN 37040 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 01/11/2017 04:49 AM
  2. Robert Vegas Bob Swetz 10/27/2016 12:17 PM
  3. Carol Williams 11/01/2016 10:00 AM
  4. Gabe Sanders 11/04/2016 04:58 PM
Topic:
Real Estate Industry
Groups:
Bananatude
Tags:
success
new agents

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Rainmaker
2,217,415
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great information and my broker shared this as well with our office!

Oct 28, 2016 11:53 PM #105
Rainmaker
62,866
Russell Smith
Team Move OVM Financial - Wilmington, NC
Team Move Creator - Ask me your tough questions!

You hit the nail on the head. It does come down to a plan, commitment, ability to learn, think outside the box, sincere desire to provide the best service to clients, and a great work ethic. Great article!

Oct 28, 2016 11:59 PM #106
Rainmaker
1,109,057
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Great points Debbie, you listed all the reasons, I think the most important one is not having the LOVE for the real estate business. Have a great weekend!

Oct 29, 2016 12:36 AM #107
Rainer
117,030
Macy Babb
Re/Max All Properties Realtor - 404-234-6166 - Cartersville, GA
Realtor, SFR, HUD/REO Certified

Great Post...I agree with all the points, I love getting those calls asking how much it costs to get a license...I always point out right then, that getting the license is the easy part and not where the money stops being spent

 

Oct 29, 2016 11:01 AM #108
Ambassador
3,572,024
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Hi, Debbie!  I included this post in today's Last Week's FavoritesEnjoy your new week!

  

   

Oct 30, 2016 11:38 AM #109
Rainmaker
263,103
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Another well written post Debbie:
Low barrier to entry;
High barrier to success!

Oct 31, 2016 04:56 AM #110
Rainmaker
343,129
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

All new agents...and those even considering getting into the business--need to hear the pros AND CONS of what it's like to be an agent, especially those first few years.  This does not happen.  Brokers paint that 'rosy' picture and do not mention the hard slog it is to build a business.

Oct 31, 2016 05:04 AM #111
Ambassador
2,720,603
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

M.C. Dwyer that is an excellent way to put it.

Oct 31, 2016 01:53 PM #112
Ambassador
2,720,603
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I always told them how it was going to be but also told them about the potential if they were willing to work super hard and smart, Mary Hutchison, SRES, ABR.

Oct 31, 2016 01:54 PM #113
Ambassador
2,720,603
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

What an honor being included in your weekly list, Patricia Kennedy. Thank you so much.

Oct 31, 2016 01:55 PM #114
Ambassador
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Fred Griffin
Frederick Griffin, Exclusive Buyer's Broker - Tallahassee, FL
Licensed Florida Real Estate Broker

The attrition rate has always been high, but now there is a new breed of would-be Realtors who've been spurred on by unreal reality TV shows.

Nov 01, 2016 12:29 PM #115
Ambassador
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

They love watching those shows and aspiring to be a big investor in real estate, Fred Griffin.

Nov 01, 2016 01:10 PM #116
Rainmaker
32,153
Alesha A. Wilson
525 Realty Group - Edmond, OK
Real Estate Agent w/ 525 Realty Group, Edmond, OK

OK Debbie Reynolds, I've put off reading your post long enough... as a fairly new agent, I just didn't want to think abou it (:  But I was delighted to see that I have jumped some of those hurdles already.  Thank you for a list of things to keep in mind as I continue my "race."

Nov 01, 2016 02:00 PM #117
Rainer
18,737
John Peak
Get Your FREE BPO Company List - Adelaide, WA

I think the main reason anyone fails in any type of sales is that they think the knowledge of the product is more important than the sale itself.  Sales is about contacts.  It's a numbers game no matter what you are selling.  I have seen so many agents that class themselves to death but they are too scared or too lazy to make the contacts necessary to get listings or buyers to sell to.  Contacts Contacts Contacts.  The BPO Expert

Nov 02, 2016 08:57 PM #118
Rainmaker
10,008
EZ Online Mortgage
EZ Online Mortgage - Valley Village, CA
Get secure mortgage loans with EZ Online Mortgage

I like your post, keep up the good writing.  

Nov 03, 2016 03:58 AM #119
Rainmaker
730,849
Jan Green
RE/MAX Excalibur,Scottsdale, 602-620-2699 - Scottsdale, AZ
RE/MAX Excalibur, REALTOR®, EcoBroker, GREEN

Lots of discussion on this one!  I'm sure you are getting a boat load of compliments on this well-written post.  And lots of agreement for your spot on analysis of why agents fail.  So true.  I think some of it has to do with which office/company they choose as well.  Not every broker would be as great as you!  Great post!

Nov 03, 2016 03:01 PM #120
Rainmaker
463,903
Karen Feltman
Cedar Rapids/Iowa City, IA Lepic-Kroeger REALTORS - Cedar Rapids, IA
Relocation Specialist

We do make it look easy as seasoned agents.  But I don't sugar coat it to new agents.  I let them know that I had to work long and hard to get to where I am....it doesn't happen overnight.  You can have the nicest business cards, but until you can convince buyers and sellers to choose you, you are dead in the water.  Knowing how to market yourself as a new agent takes money, most new agents don't know how to spend the resources they have.  Great tips!

Nov 06, 2016 03:57 AM #121
Rainmaker
35,540
Gary Kent
Gary Kent Team - Keller Williams Realty - La Jolla, CA

Hi Debbie (this is actually Gary's right-hand man Kevin), we've used a similar list for years as part of our recruiting process.  But, I think I'll print yours out as well to show them that these are universal problems and they don't just go away.

Nov 07, 2016 07:15 AM #122
Rainmaker
426,877
Thomas J. Nelson, Realtor, CRS
Big Block Realty - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

New agents should read this post!

I think the #1 reason is W2 mentality in a 1099 "world"; it's a business not a job.

I do agree with your list; lack of realistic expectations, under funded and no mentor/coach would be my top three reasons. To many see the "over night success" and not enough of the 10 years+ behind that success. 

Dec 19, 2016 04:51 AM #123
Rainmaker
1,400,340
Lottie Kendall
Today | Sotheby's International Realty - San Carlos, CA
Serving San Mateo County and San Francisco

Where was I in October when you posted this? I'm glad Roy Kelley re-blogged it today. 

Jan 11, 2017 06:38 AM #124
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