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Top 3 Mistakes Rookie Real Estate Agents Make -- And How To Avoid Them

By Michael Krotchie

Real Estate Agent with Tierra Antigua Realty, LLC

May 09, 2007 07:19 AM

Top 3 Mistakes Rookie Real Estate Agents Make -- And How To Avoid Them
by Michael Krotchie - Tucson Realtor

First off this is by no means a comprehensive guide to avoiding rookie blunders but it is definitely a starting point for any of you thinking of becoming an agent or those of you just starting out in the real estate world. The more informed you are the better off you'll be!

1) Not interviewing with several brokerages / Selecting brokerage for wrong reasons
-- One of the most important decisions you face as a new agent is choosing which company you will go to work for. Many new agents will simply go with the big-name companies they've seen on billboards around town or on TV commercials without talking to other brokerages. It is in your best interest to interview with at least a few different brokerages for several reasons:

Get to meet the broker and see how well you get along
See what differentiates one brokerage from another (training, marketing, commission plans, etc)
Do they offer a mentoring/start-up program?
Fees / Floor time / Technology / Health Insurance / etc.

With interviews taking at MOST one to two hours you are definitely better served by interviewing with at least a few brokerages.

2) Start-Up Fees and Expenses
-- This one can really affect new agents right out of the gate. In addition to RE school, which can run several hundreds of dollars, you also have to pay for state exam(s), licensing fees, association/board fees, usually some sort of "office" start-up fee, lockbox key fees, and so on and so forth.

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Krisy Clayton~

eXp Realty - Orting, WA

"Where Commitment and Possibilities Meet"

VERY helpful and important content only 2 years in this world and still learning!

May 09, 2007 07:23 AM

Eddy Martinez

Nationwide Funding Group - Highland Park, CA

Great blog Michael and you are right its important to select the right brokerage, I know a few real estate agents who dont like their brokers and pay splits.

Eddy

May 09, 2007 07:33 AM

Lauren Corna

Archway Realty, LLC - Southlake, TX

Broker

Very good Post !! This is awesome information !! After taking the Real Estate course I think that many new Agents are so over whelmed that it's nice to have this type of information handy as a helpful guide.

Tony D. Howell

The best place EVER! - Wilmington, NC

Great info! Not a bad idea for mortgage loan officers to check out this information as well. Since we're all self-employed, we play the same game. A lot of people like the idea of being self-employed, but not many people know how to run a business. Most people getting started in this industry just don't get that concept...they are their own business!

May 09, 2007 07:59 AM

Cynthia Mader

Long and Foster Real Estate inc. - Brunswick, MD

Your forgot to mention the endless products that become available and how to know when to say no to buying the latest and greatest real estate tool!

May 09, 2007 08:20 AM

Jim Little

Ken Meade Realty - Sun City, AZ

Your Sun City Arizona Realtor

It is astounding to me that so many new agents don't have a clue how we are paid. Commission, what is that? How long after I sold it before I get paid? We should have a required course before the prospective agent gets to take the real estate classes. Someone needs to tell them the whole story early.

May 09, 2007 09:37 AM

Michael Krotchie

Tierra Antigua Realty, LLC - Tucson, AZ

Tucson Realtor, 520.261.MIKE

Tony - You're right, these concepts extend past just real estate agents!

Cynthia - Another good point, it seems there is always something better and faster for us to spend more money on

Jim - I think real estate basics should be a prerequisite course in high school! But at the very least, yes, a sort of 'preview' course should be offered to prospective agents.

May 09, 2007 10:04 AM

Edith Wharton

Cottage and Loft Realty - Midlothian, VA

Realtor - Chesterfield VA

I have found that alot of people have no idea what they are getting into, especially the start up costs.

Best thing for anyone thinking of doing this business,would be to have some sort of a nest egg,or second job.

I'm lucky I have had my husband help me out with all my start up costs.:)

May 09, 2007 11:23 AM

Lynsey Russell

Century 21 Elite - Lakewood, CA

I agree, I meet many people that want to leave their job for real estate unless they have a nest egg to get started I advise them to keep it. It takes money to make money!

May 13, 2007 09:54 AM

Melissa Sall

Sulek & Dutton Real Estate - Saint Clairsville, OH

Realtor ~ Belmont County ~ Ohio

Great information. I am new and learning more everyday. Fortunately I have already followed many of your pointers and I'm off to a slow but good start.

May 14, 2007 09:35 AM

Just remember its never too late to correct mistakes! If you don't currently have a clearly defined plan then sit down for an hour, think about it, and put it on paper. It's surprising how much easier things become when they are written down.

May 14, 2007 12:27 PM

Uzi Husain

Keller Williams Integrity First - Scottsdale, AZ

good stuff thanks...

Cheers,
Uzi Husain
Arizona Realtor, serving Goodyear & The Phoenix metropolitan area

May 14, 2007 02:37 PM

Steven Shewell

Primary Residential Mortgage, Inc. - Ephrata, PA

The Mortgage Maverick

Underestimating what it takes to launch a business is many ttmes the downfall of decned agens.

Make sure that you use theise tims wisely.

May 15, 2007 02:08 AM

Top 3 Mistakes Rookie Real Estate Agents Make -- And How To Avoid Them

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