It's always tough to run any business, including a real estate agency business. Most realtors indeed fail in their first year of operation. But what do they do that makes them fall?
As a realtor, you should be keen to know the reasons why real estate agents fail in their business. Maybe, you can manage to overcome the problem early enough. So this blog explains the top 10 reasons why real estate agents fail and how they can overcome them.
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Why Do Real Estate Agents Fail and How Can They Overcome?
1. Poor networking skills
Some real estate agents think that networking is something of the past. But that's a mentality that makes most agents fail in their business. Poor networking can lead to reduced sales, less knowledge, and less motivation. These factors can cause a real estate agent to fail big in their career.
What to do: As a real estate agent, building a professional real estate network is important to get leads and other helpful insights. A good network can help you generate more sales and gain motivation for work.
Networking is not all about meeting with property buyers and sellers. Instead, it takes developing a positive relationship with anyone in the real estate industry.
2. Not doing market research
Market research is everything in doing real estate business. If you don't conduct market research in your region, you will fail as a real estate agent. Poor market research leads to poor credibility because you don't know what's happening in the industry. In addition, without market research, you cannot know how to pitch your potential clients.
Without market research, you will not know the current prices; thus, it will be tough to get cleats with high prices. On the other hand, low prices can push away property owners from you.
What to do: as a real estate agent, you should be a good researcher of what's happening in the property market. Read blogs, and newspapers, watch videos and listen to what's happening by attending property seminars in your region. These actions can help you stay on top of news regarding real estate investment.
3. Poor marketing strategies
Marketing is one of the ways that you will increase your sales and income too. Therefore, if you don't market your real estate business, no one will know about it. As a result, you get zero sales, and you will eventually fail.
What to do: As a real estate agent, you should embrace all marketing strategies and prioritise what works for you. For instance, you should have a real estate website to give property buyers and sellers success tips. In addition, you can also list your properties and get potential leads from the site.
In addition, don't ignore social media marketing and paid advertising. However, if you are a beginner, you should start with the cheapest marketing strategies, such as websites or social media.
4. Poor customer service
Customers are the main reason that any business is operating. Without customers, there is no business. Most real estate agents fail because they don't care about their existing or new customers.
What to do: Customers need a listening ear and you to handle their issues. Therefore, be attentive to all customer needs and ensure you reply to all their messages and solve their problems.
5. Unrealistic expectations
Indeed, it's true that you can earn lots of money once your real estate business gets the right flow. However, too many expectations can disappoint you in the end. As much as you can earn good money, expecting too much can make you fail as a real estate agent.
What to do: Ensure you don't expect much from the business, especially starting. Instead, do a lot of marketing and take good care of your potential and existing clients. That's the only way to earn a lot on real estate.
6. Working without Goals
Goals are the main aim of a business. If you don't have goals for your agency business, you will likely sway along the way and eventually fail. Working without goals gives you no specific purpose to grow.
What to do: ensure you set smart goals as you start your real estate agency business in Kenya. Set goals you can achieve within a specific time.
7. Not doing client follow-up
You can close a deal by doing a client follow-up. However, if you don't reach out to a client after they call or message you, you are making a big mistake that can make you regret it later.
Client follow-up includes calling people who contacted you asking for a quote about a certain property. This shows your interest, and the client feels you care for them. As a result, you can close a deal with the client.
What to do: Ensure you follow up with all potential clients who reached out to you. You can make a list and get their contacts to call them individually.
8. Poor Negotiation skills
If you do not know how to negotiate, you miss out on closing deals faster. Poor negotiation skills can push away your clients. If you are finding a home on behalf of a client, they will expect you to negotiate on their behalf.
If the buyer notices you have poor negotiation skills, they can stop working with you and find someone better.
What to do: You should learn how to negotiate and close deals. This skill can help you close deals faster and earn more in return.
9. Doing real estate part-time
As a part-time realtor, you can miss opportunities from property owners who would love to work with a full-time real estate agent. However, you can succeed as a part-time realtor, but some clients won't work with you. As a result, if you stay for a long time without selling, you can give up and end up a failure.
What to do: If you must work as a part-time realtor, you should ensure you put more effort into marketing your business. In addition, be hornets with your clients and let them understand that you work part-time and the hours you'll be available. Alternatively, you can also hire an assistant to help you with managing the loans of work.
10. Poor money management skills
Poor money management brings down any business, regardless of how big or small it is. If you don't manage your finances well, you will have no money to run your realtor business.
Remember that as a real estate agent, you depend more on commissions from buyers and sellers, which don't come throughout. As a result, sometimes you'll have more money and other times you'll have little or nothing.
What to do: You should be careful about spending the money you get for your business. Ensure you save enough money for marketing your business throughout. Ensure you avoid money mistakes that can be costly and bring down your realtor business.
The success or failure of your real estate agency business depends entirely on you. Ensure you have all the resources you need to make your real estate business successful. If you implement the solutions to the above mistakes, you will succeed in your real estate business.
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Frequently Asked Questions
What is the biggest mistake that real estate agents make?
Poor customer service is a real estate agent's biggest mistake. Even if you do proper marketing and get the clients, poor customer service will turn them away. It's good to listen to your clients and if you have to differ, do it respectively. Remember, you depend on your client base to make good listings sales.
What is the main risk of being a real estate agent in Kenya?
Being a real estate agent doesn't guarantee to earn money throughout the year. This means that some months will be dry, and it will be tough to pay your bills.