The real estate profession can be one of the most rewarding for many reasons. A few of the best things I love about being a professional real estate agent is the flexibility of my schedule, unlimited income potential, and of course, helping people with one of the largest transactions of their entire lives.
Most successful real estate agents are able to provide way more benefits than drawbacks of being a real estate professional. One thing that is rarely discussed about the real estate profession is the alarming percentage of agents who fail to succeed in the business. Depending on the source, the percentage of real estate agents that fail in the business within the first 5 years ranges between 85-90%. When you think about it, nearly 9 of 10 new agents can expect to fail, which is an eye opener.
Recently while selling a home in Lekki recently the buyer was working with an agent who was brand new in the business. Long story short, the transaction didn’t go as planned and did not close. The buyers agent was pretty difficult to work with and certainly didn’t do his client justice with the service they provided which played a significant role in the deal falling apart.
This led me to start asking myself, is this agent going to make it in the business? What could be the reason why the agent isn’t going to make it?
In this article you’re going to find out the top 10 reasons why real estate agents fail. If you’re thinking about getting in the real estate agent Business or you are newly licensed, or are a 20 year veteran, you need to keep in your mind why most agents are failing in the business. Being aware of these reasons why real estate agents fail can greatly reduce the chance that you’re going to fall victim to the startling statistic of the percentage of agents failing in the business.
1. They Don’t Work Hard Enough
Being a successful entrepreneur takes a lot of hard work. It doesn’t matter what industry, starting a business is going to mean long hours and lots of blood, sweat, and tears.
One of the top reasons why real estate agents fail is because they simply do not work hard enough. Successful real estate agents work odd and long hours. There are few successful agents who work “banker hours” of 8 AM – 5 PM, Monday through Friday.
Being a successful real estate agent means working many nights and weekends and being available via phone or e-mail nearly 24 hours a day.
Advice: Find out what successful real estate agents are doing on a daily basis. Learning the habits of top real estate agents can go a long way. It’s no guarantee that what one agent is doing to build their business is going to work for the next, but the work ethic of top agents is often very similar.
2. They Get Involved In Real Estate For The Wrong Reasons
Selling real estate is not for everyone, end of story. Another reason why most real estate agents fail is because they get involved in real estate for the wrong reasons.
One of the most common reasons why people attempt to sell real estate is because they think all real estate agents make boatloads of money.
This is a huge real estate myth and actually is the furthest from the truth. The average real estate agent makes less than $40,000 per year.
The truth is some realtors struggle to sell all year also.
Successful Realtors make a lot of money though.
3. Real Estate Agents Fail Because They Get In The Business For The Wrong Reasons
Real Estate Agents Fail Because They Get In The Business For The Wrong Reasons.
Another very common reason people obtain their real estate license is because they love “looking at houses” or like watching shows on HGTV.
Or You heard that others are Successful but you didn't know what was involved in it.
Being a successful real estate agent is so much more than being a professional door opener.
Becoming a professional real estate agent for one of the two reasons above is not a good idea. It’s important to get involved in real estate for the right reasons; otherwise, you may be another real estate agent that fails in the business.
Advice: Make sure before getting involved in real estate that you evaluate why you want to sell real estate. If the answer is that you have a desire to help people with one of the biggest purchases of their lives, than real estate could be a great career for you.
4. They Don’t Save Enough Money To Live On and Develop the necessary skills.
Successful real estate agents spend money to build their business because they know how important it is. Whether it’s investing in promoting themselves to their sphere of influence or using top real estate marketing strategies to sell homes, it costs money.
Many real estate agents fail because they don’t realize that it costs money to run their business and when they realize it does, they don’t have enough money to live on. Not having money to make car payments, student loan payments, buy groceries, or to buy other necessities is another reason why real estate agents fail.
Advice: Before selling real estate, it’s extremely important you have enough money saved so that you can pay your bills and have money to also buy lives necessities.
You also need to have a high income Skills that can attract income via solving problems in the market place.
It’s highly recommended that before you attempt to sell real estate full time with no other means of incoming capital that you have at least 6 months of money saved to pay all your bills.
You must have mastered Some High income skill.
5. They’re Just Doing it once in a while they lack Consistency of the Most Successful Realtors.
Another popular reason why real estate agents fail is because they’re attempting to sell real estate once in a while.
Now, before part time real estate agents lynch me in the comments below, I acknowledge that it’s feasible to be a successful part time agent. The reality, however, is that the majority of a once in a while real estate agents fail to make it in the business.
Why do many part time real estate agents fail? Well for one, many buyers and sellers have to decide whether to hire a part time real estate agent or not. Many buyers and sellers will avoid hiring a part time agent at all costs, simply because they’re not readily available like a full time agent would be. Nothing against part time agents, but this is the thought process of many consumers.
Advice: If you’re going to sell real estate part time, remember, honesty is the best policy. If you’re interviewing with a buyer or seller, explain to them that you’re a part time agent so that there are no problems in the future. If your full time position allows you to answer phone calls relating to real estate, explain to them that you’re able to answer calls and inquiries. If not, make sure you’re upfront about that as well.
Being honest with buyers and sellers about your part time position will get you many more victories than it will defeat.