Why Real Estate Agents Are Set Up to Fail in Business

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Starting a career as a real estate agent offers an exciting career path. This career allows you to work on your own terms and with a flexible schedule. Furthermore, you will also be helping people find their dream home. However, becoming a professional real estate agent does not happen overnight. In fact, it is estimated that on average 90% of real estate agents fail not because they don’t have the right training but because they are focused on the wrong things. It is easy to allow the excitement of connecting with a client overshadow the most important thing – creating a plan for your business.

Over the years I have seen many real estate agents fail because they don’t have a system in place to engage and nurture their clients. The fundamental problem is that most real estate agents see themselves as only salespeople, not as business owners. And the truth is people do not want more salespeople, but problem solvers. To be clear, being a salesperson is not a problem per se, if that is what your real estate business needs. But once you start seeing yourself as a business owner versus a salesperson, you will redefine your value and how that impacts your personal brand. A salesperson is usually transactional, while a business owner is focused on a lifetime of business. For instance, salespeople are motivated by personal gain and closed sales while business owners are stirred to create and maintain the best product or service that will become profitable in the future. You must act like an entrepreneur because you are indeed running a business. Therefore, limiting yourself to only enaging a Sales Coach might be leaving gaps, and instead a Business Coach could be a better fit.

As a freshly licensed agent, you don’t have the training to set up or run your business as these areas are not covered in depth during the training program. A business coach will help you to grow your business by leveraging your strengths and and creating strategies for your weaknesses. A business coach will also help you to develop a plan for your business, teach you the 5 things that every business owner must be competent in to be successful, and help you set and achieve realistic goals.

Below are seven important tips that you must prioritize to run a successful Real Estate Business:

  1. Create a system that outlines your business that is recognizable at 40,000 feet

Your business structure is a series of actions aimed at scaling your business. Start out by setting strategic goals, and putting in place actions plans to actualize those goals. For instance, if your goal is to close X number of deals a month. Ask yourself – what specific steps will I take to achieve that goal? How do I intend to generate leads? What is my follow-up process? What systems do I have in place to track and measure results? You’ve got to stick it out and run your business like a well-oiled machine.

  1. Know your ideal client: create an avatar that speaks to the person you want to buy and sell through you

Much of your success as a real estate agent depends on your ability to identify your ideal client. In coaching real estate agents for the past few years, I have realized that most people are vague when it comes to identifying their ideal client. As a real estate professional, you don’t want to work with just anybody – you don’t want everybody and anybody. You need to narrow down the type of client you want to attract. The first step is often identifying their geographical location. Now you can talk about who they are. Do they own or rent a home? What is their income range? What is their age? Are they married? Do they have kids? This step will take some effort and thought, but it will make the rest of the process seamless if you get it right. Narrowing down your client will help you to make the best use of your resources and get exponentially greater returns on your investment.

  1. Attract your ideal client: what area do you want to focus on and become engaged? Stick to what you know

Once you have identified your ideal client, the next step is attracting them. Find ways to meet and connect with them. Do they hang out in a particular pub or do they belong to a particular club? Then become a member. Write articles they want to read, speak where they will be listening, and establish relationships with other professionals that work with them. It is equally important to create a personal brand built around your business.

  1. What problems do buyers/sellers have and can you solve them?

I often point out that the measure of a good agent is marked by his or her sensitivity to the challenges of the client and offering specific solution. A common mistake many real estate professionals make is focusing too much on selling the house and missing out on selling a solution to the buyer’s problem. True the house is the product – the core of the transaction. However, your buyer’s family situation, lifestyle, income, age, career, life events, and a host of other factors determine whether or not a particular house will be a good fit for them. Selling a solution to your client involves focusing on specific ways your product or service can provide solution to their problems. You should concentrate on educating your clients and helping them achieve their dreams. It is not enough to know current trends and market stats in the industry, but you should be able to translate the data into helpful insights that will help your clients make smart decisions.

  1. Provide value that creates an emotional connection

People are often driven by predictable behavioural patterns especially when it comes to buying a home. There’s always the struggle between logic and emotion. As a real estate professional, you need to be proficient at establishing an emotional connection between your client and the property by providing value. Instead of being pushy, show clients the potential value of the features of your product. Demonstrate that you understand the emotional state of your prospects and can fulfill their needs. Creating an emotional connection will motivate them to take action, and this is crucial in making the sale.

  1. Track and measure your efforts; you cannot manage what you don’t measure

Just like every other business, the only way to succeed is to know how success is measured. This is especially true for real estate professionals. Most agents understand the basis of selling, but they fail because they don’t have a structure in place to account for long-term performance. There is no standard to measure success, and as such, there’s no improvement. You should have a metric for measuring revenue goals and be accountable. Remember that running a profitable business involves paying careful attention to minute details. It is vital that you identify a metric to measure success, figure out what you need to do to achieve it, execute your plan and then evaluate the entire process. Concentrate on performance and make accountability a core business value.

  1. Spend money on the right tools that provide a return on your investment.

If you’re just starting out, investing in the right tools will go a long way in helping you to establish your real estate business. The right tools will save you money, time and provide a return on your investment – and keep you in the industry. Technology is increasingly becoming an important part of the real estate business and must be adopted in an increasingly Internet-driven world. There are several tools you can utilize to maximize your effort and resources. For instance, investing in a good CRM system can help you stay in touch with past clients, monitor current contacts, and nurture leads into future clients. There is marketing automation software, email campaigns, direct mails, etc. You can also attend events, and invest in gifts for clients and or prospects – who doesn’t like receiving a beautiful captivating gift baskets from Bumble Bee Baskets Inc.

In summary, the real estate business can be exciting and satisfying. However, to be successful you need to create a structure, put in place a viable plan for your business, invest in the right tools, attract a database of prospects, and invest in a business coach.

If you’re ready to take the next big step that will propel your real estate business to the next level, reach out to me to book your 45-minute Strategy Session and I will offer the tools and guidance to help you achieve your business goals more rapidly and create lasting change.

 

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About the author: Kyle Kalloois the Chief Executive Officer, Business Coach with Change My Life Coachingand Change My Business Coaching.As a result, he learned to take the innovative approach towards life, business and leadership. Through his management training and experience with McDonalds, Famous Players (Paramount) and WestJet, and all of the ongoing learning and development he’s completed, Kyle has refined and perfected skills and processes and is eager to share how to execute them efficiently to help individuals and companies achieve even more of their dreams. 83% of Kyle’s business comes from referrals. https://www.changemylifecoaching.ca https://www.changemybusinesscoaching.ca 

1 thought on “Why Real Estate Agents Are Set Up to Fail in Business”

  1. Great article Kyle, all completely valid points from a very different perspective challenging the status quo. I especially like #5 – Provide value that creates an emotional connection!

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