Statistics say that about 87% of all real estate agents fail in the first five years or so of being in business. Despite being in business for some time, if your sales are not looking up, then you might want to know the reasons behind such low sales so that you can remedy the same.
This article will tell you about the reasons as to why real estate agents fail in the few years.
Often in the first few years, real estate agents do not really anticipate the additional expenses like taxes, marketing cost, commission cuts, training costs, and other expenses that should be deducted from actual income from sales. Thus, their incomes are low in the first few days.
Because an individual real estate agent might not be able to afford all these additional costs, it is better for her to join a team of real estate agents. Even though this necessarily means sharing of commissions and profits, it also means less overhead expenses will have to be borne by one person.
Sometimes real estate agents fail to concentrate on important things like leads because they are taken up by too many things. They listen to advice from people who have never even sold real estate or are not competent enough, without really knowing it.
Sometimes, they over-estimate their short-term income potential and sometimes they end up under-estimating their long-term income potential. There are some of the most common problems that plague real estate agents today.
Sometimes agents are neither punctual nor consistent and have bad work ethic, coupled poor working habits. They are late and do not follow up on clients. They suck on following up, are reluctant to take calls and often they are not honest to their clients. This affects their business.
However, there are some solutions that could potentially help you to bypass these problems.
Firstly, as stated before, join a team of successful and well-established real estate agents. This way, you can access training sessions, have some people to support you when you are low, can collectively generate newer and better leads and have more access to a pre-existing infrastructure without bearing any new cost.
Keep working hard at your real estate business during the first few years and seek advice only from those real estate agents who know the tricks of the trade.
Spend more time on reading up and doing your own research so that you know what you are talking about and clients will be more convinced about your authenticity, knowledge and more inclined to clinch a deal. Be authentic and instead of lying to your clients, tell them clearly about shortcomings in the property so that they are able to make a fair bargain on the investment.
Do not take your clients for granted and keep in constant touch with them so as to show them that you care about them and are consistent enough to follow through on the sales.