Are you contemplating a profession as a real estate agent? While it can be thrilling and fulfilling, it has many obstacles. Unfortunately, many new agents fail within the first few years of starting. After agents discussed these downfalls, they brought you some potential reasons for this, so you can be better prepared to avoid these common pitfalls.
1. Real Estate Failure: Not an Industry-Specific Issue
First up, one user in the real estate biz shared that the high rate of failure among new real estate agents is not unique to the industry, as it aligns with the general statistics of business failures within the first five years and attributes the challenges to the combination of hard work, technical knowledge, and luck required to succeed, as well as the low entry barrier and consequent saturation of the market.
2. Underqualified Agents: Low Barrier to Entry in Real Estate
A second person shared that many agents get into the real estate business because they see a friend or family member doing it and think it seems easy, but they quickly find out it’s not. The job requires hard work, dedication, and technical knowledge and can only be mastered after some time.
3. Misconceptions of Easy Money in Real Estate
As one agent pointed out, it’s easier for new agents to build a sustainable business with a solid foundation. They further advised having a strong Sphere of Influence (SOI) or a surefire lead source.
Those things are challenging to acquire for most people. With a solid foundation, it’s easier for new real estate agents to build a sustainable business, and many fail.
4. Smart Investments: The Secret to Successful Lead Generation
According to some, a big reason why many new real estate agents fail is that they spend thousands of dollars on leads that don’t convert or convert at a meager rate, often running out of money and having to return to a traditional 9-5 job. Agents need to be smart with their investments and focus on lead sources more likely to yield positive results.
5. Passion Over Profit: The Key to Long-Term Success in Real Estate
The key to success in real estate was noted as having a genuine passion for the industry and helping people rather than solely focusing on the potential for quick money through commissions, as such a mindset is unlikely to lead to long-term success.
6. Hard Work Pays Off: The Importance of Lead-Generating Activities in Real Estate
According to another user, the biggest reason why agents fail is that they’re not willing to engage in lead-generating activities like calling people, door-knocking, or hosting open houses.
Many new agents think obtaining their license or promoting their business on social media will bring in clients. Still, it takes a lot of legwork to establish a successful career in real estate.
7. Overcoming Fear: The Biggest Barrier to Success in Real Estate
Per one user, the biggest reason for real estate agents’ failure is their fears, which tend to paralyze them. They may also not be willing to perform essential tasks, including contacting their sphere of influence and searching for new leads.
Additionally, many agents need to gain knowledge of converting leads to sales that result in satisfied customers. However, brokers support and guide new agents in acquiring the necessary skills for success.
8. The Low Barrier to Entry: Attracts People Lacking Proper Skills
Another wrote about the real estate industry’s low barrier to entry, noting it often attracts individuals who lack the necessary skills and determination to succeed. Passing the licensing exam is the beginning of the journey toward becoming a successful agent.
9. Prospecting Skills: The Path to a Sustainable Real Estate Career
Agents often need to find a way to immediately avoid burning through their sphere of influence and failing to learn how to prospect, leading to a lack of new leads and potential clients. It’s essential for agents to continually develop and refine their prospecting skills to build a sustainable and successful real estate career.
10. The Perseverance Paradox: Why Patience is Key to Success in Real Estate
Finally, a seasoned agent explained that many new real estate agents fail because they come into the industry expecting to make big money immediately without realizing that success requires patience and perseverance.