5 Reasons Why Real Estate Agents Fail Out Three Years
Choosing real estate as a career path can be one of the best decisions a person makes in in their lifetime. There are many benefits to working in the industry that are difficult to experience in other occupations, the most desirable being the ability to make more money by working for yourself. A career as a real estate agent is not only very appealing, it’s also very promising for those willing to work hard.
But, for those that aren’t willing to do what it takes to not just become an agent—but, stay working as one (and, a successful one at that)—they may be forced to leave the industry in as little as three years.
Here are the top five reasons why, and how to avoid falling into these traps that can force new agents to throw in the towel too soon:
5) They Don’t Understand What It Takes
Being a real estate agent takes the same amount of work as starting and running your own business. Because it’s such a unique industry to be working in, many soon-to-be agents may not realize this when they decide to start down this career path.
Even if they have a mentor to help, agents need to possess a certain skill-set and personality traits. They need to be outgoing, personable, dedicated, and confident in their abilities. They need to be willing to put in the hours, whether that means attending professional events, or answering calls “after hours.” Most of all, they need to be willing to adapt.
To Avoid Failure: If you’re new to the industry or you haven’t been doing as well as you’d like, think about what you could be doing differently. Seek support from others to help you or provide you with honest feedback, and ask yourself if you’re being as productive as you can be.
Agents should, of course, do this throughout their entire career. Always take time— maybe, every couple of months—to analyze your performance, evaluate yourself, and see where you can continue to make improvements.
4) They Have Poor Financial Planning Skills
Like running a business, real estate agents need to be in charge of their finances, investments, expenses, etc. As an agent, some months will naturally be better cash-flow wise than others. And, when you have bills to pay and/or a family to take care of, it’s not enough to live from one closing to the next. It’s essential that you always put money aside from each closing, for a rainy day, a bad month, or even just your taxes.
Agents who spend all the money they have after one closing will be frustrated, desperate for their next deal to take place in order to not be strapped for cash. It’s important to be lean and to always live within your means.
To Avoid Failure: Real estate agents should consider meeting with a financial planner to help manage their spending and understand what needs to be owed in taxes, health insurance, mortgage payments, etc., especially for those that are new to this line of work.
After your first big closing, it can be tempting to buy a new car or make a downpayment on a pretty home. While you should always re-invest in yourself when possible, don’t ever spend your money faster than it comes in.
3) They Read Too Much Into Negativity
In this day in age, it’s possible to do almost anything as long as you have access to the right resources (or, the internet). While these resources can provide so many opportunities for agents who want to be as successful as they can be, sometimes, the plethora of these resources can be a drawback. That’s because the internet is also a place that can breed negativity, forcing them to quit, especially during a slow period.
Real estate agents who have a positive attitude will always be successful and “last in the game” that much longer than those with a negative attitude.
To Avoid Failure: Stay positive! It’s okay to have bad days. In fact, you should welcome them in this industry. But, don’t take bad days or bad energy as any reason to change careers so fast. Use that as your motivation to keep going, and if you’re really struggling, reach out to others for support. It’s likely other agents have felt what you’re feeling at some point in their career, too.
2) They Give Up Too Easily
Speaking of negativity, another reason that agents fail out in the first three years is because they simply give up too easily. It’s not an easy job, and when all these other things aren’t in place from the beginning—willingness to adapt, smart financial planning, and a positive outlook—many agents jump ship before riding the natural waves that come with being an agent.
To Avoid Failure: The fact of the matter is, real estate simply isn’t for everyone. That being said, never give up after the first downfall, and don’t give up after the second, either. Keep trying. Agents also fail because they aren’t consistent with the work they are putting in. They get too excited after closing their first deal that they don’t see the need to keep up the work. They get lazy with aspects of the business that require more time and effort than they’re putting in.
If after many attempts it’s still not working out, then maybe being a real estate agent isn’t or you. But, that’s probably not the case.
1) A Lack of Accountability
The number one reason that real estate agents fail out in the first three years? According to Tristan Ahumada, co-founder of Lab Coat Agents, “Most agents fail because there’s a lack of accountability in their life. Either through their peers, their mentors, brokers, team leaders, [or their] coaches. When agents sit down and plan, when they make goals, and when they write down the steps they will take to succeed, there is no one there who keeps them accountable to what they should be doing to succeed. That lack of accountability will affect an agent’s consistency to prospect, follow-up, or do whatever is necessary to succeed.”
This is why communities like Lab Coat Agents can be so helpful to real estate agents who need support. Whether it’s starting your career as an agent, getting back into it after many years away, or the fear of failing, LCA provides a safe space for agents to get back in there and stay there.
Have you ever given up on real estate, but then came back to it later? Or, have you had thoughts about giving up? Let us know in the comments below, so we can help!