Realtor - Amanda S. Davidson: Top 5 Reasons Real Estate Agents Fail

Top 5 Reasons Real Estate Agents Fail

Top 5 Reasons Real Estate Agents Fail

Why do the majority of real estate agents fail?

 

A friend of mine who is newly licensed reached out to me last week to say he thinks he just “stinks at this real estate thing.” Questions immediately came to mind when I saw his message and it got me thinking about just how many real estate agents fail.

 

Depending on the source the percentages vary from 85-90% in the first five years. That’s a HUGE percentage and yet the perception remains both with the public and many interested in real estate that you get your license and start making serious money. It couldn’t be further from the truth.

 

There are a variety of reasons real estate agents fail. For this article, I’ll stick to the top 5 reasons real estate agents fail. Whether you’re already licensed or studying to get your license being aware of why agents fail is important. You’ll want to avoid these reasons to avoid becoming part of the statistic.

 

Not Knowing How To Lead Generate

There is no one size fits all for lead generation in real estate. Which is a great thing because it means real estate professionals can generate business in a way that works best for them. The problem is that if you don’t know how to generate leads and referrals you’re going to fail.

Successful real estate agents know exactly what they’re going to do to generate leads and how they’re going to do it. They know their business depends on it. One of the first things new real estate agents should do is create a business plan that outlines how they want to generate leads.

 

It doesn’t matter if it’s through door knocking, social media ads, or any of the other hundreds of ways there are to generate leads. What matters is the agent knows what they’re going to do and how they’re going to do it.

 

No Understanding Of How Or Where To Market

If you shake a tree 20 real estate agents will fall out. What are you going to do to make yourself stand out? Real estate agents who look at marketing as an opportunity to say look at me…ME…ME…ME will find themselves blending in and not getting business.

 

A self-serving mentality is a sure fire way to fail in real estate. Your marketing needs to come from a place of value and be consistent with your brand.

 

Share helpful advice, personal stories, checklists, and first-hand experience. Solve a pain point your audience has. No one cares if you sold 5 houses last week and are “crushing it.” Serve your audience with what they can actually use.

 

There are a ton of different ways real estate agents can market themselves but, until you have a plan in place don’t spend a dollar on marketing.

 

No Mentor Or Coach

I purposely didn’t list this one first to illustrate that you’re going to need someone to teach you how to lead generate and market yourself correctly. Whether it’s your broker, a team leader, or a successful individual agent who you partner with as your mentor or coach you’re going to need someone to teach you to be an expert.

 

This is, in my opinion, a factor that can make or break a new real estate agent.

 

Passing the test to get a real estate license is easy and teaches you absolutely nothing about actually selling real estate. The test is just like school, memorize the info and then answer questions. Day to day life as a real estate agent requires running your own business which requires an extremely high level of various skills in order to be successful.

 

Soak up every ounce of knowledge from someone who is successful and who already has a business like the one you envision yourself creating. Be a student of the industry and be willing to make less money in return for gaining expertise. You cannot put a price on expertise and I see far too many new agents focusing on their splits when it comes time to select a brokerage or team. Stop worrying about commissions because 100% of nothing is nothing.

 

Get Into Real Estate For The Wrong Reasons

A lot of real estate agents fail because they get into the business thinking they’re going to pass the test, start selling a ton of houses and make a ton of money. If it were that easy everyone would be a successful real estate agent. This couldn’t be further from the truth. Let’s not forget the average real estate agent makes $40,000 annually.

 

Another reason people get their real estate license is they love “looking at houses.” Yes, houses can be nice to look at but, that’s not what real estate is about. Simply opening a door to let someone in a house is not going to get you anywhere remotely close to being successful in real estate.

 

If you want to get into real estate you need to first ask yourself why. You are signing up to assist people with what is most likely one of the biggest investments in their lives. That comes with a massive responsibility to be an expert and advocate on their behalf.

 

Poor Work Ethic

When you become a real estate agent you are entering the world of entrepreneurs. There will be blood, sweat, and tears to become successful. If you have a 9-5 mentality you are going to fail. Successful real estate agents work long hours, nights, and weekends.

 

You don’t get paid to show up when you own a business. Real estate is not for everyone nor is owning a business.

 

Real estate is flexible in that you can very likely run errands on a weekday which equates to your personal business revolving around your client needs. It is not flexible in the sense of being able to work whenever and wherever you want.

 

It requires working every day, there is always something to do. Many agents fail because they don’t have a plan or action items to complete each day.

 

Successful agents make themselves available to their clients and respond quickly to phone and email contact. Being successful in this business requires a high level of communication and it’s not uncommon for that to occur 7 days a week. Agents who don’t put the work in will not be successful.

 

 

Closing Thoughts

The perception of what being a real estate agent involves and the reality are on opposite ends of the spectrum. The barrier of entry into the profession is low and the failure rate is high. Being a successful real estate agent might look easy on the surface but, being in business for yourself is never easy no matter what the industry is.

 

The failure rate is staggeringly high but, if you understand what you’re getting into, surround yourself with the right people, and work tirelessly you can beat the odds and become successful.

 

 

 

Amanda Davidson Real Estate Group

 exp realty

 

 

      

 

AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  703.988.3151  |   W  www.amandadavidson.com

A  20130 Lakeview Center Plaza #400 Ashburn, Va 20147




Comment balloon 30 commentsAmanda S. Davidson • June 05 2019 07:30PM

Comments

Amanda,  You know how to help people out in our business.  You are so right about 87% failure wait.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 9 days ago

I realize this is about agents in particular and how to avoid the pitfalls of being new but I also think a lot of new agents don't realize that the options are (almost) endless in this industry. They don't have to only focus on being an agent. Once I started diversifying into investing, rentals etc and making passive streams of income did my attitude about being an agent change.  

Posted by Trey Crusey, www.homebuyersofbirmingham.com (Home Buyers of Alabama) 9 days ago

The ever popular "I love looking at houses" followed by "I love working with people" is such a tiny slice of what heing an agent is all about...and some...make that most people have to find that out the hard way.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 9 days ago

There are another ten or twelve and they would be close second to the ones you mentioned:)Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 8 days ago

I've been doing this a long time.  Decades ago I knew ladies who got into the business simply to go around every day to lunch at open houses and showings!

 

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) 8 days ago

This is a totally accurate post. The things you've mentioned, lead generating, understanding marketing, having a coach/mentor - are things that really should be part of real estate licensing courses. Or perhaps there should be a one-day prerequisite course BEFORE the licensing courses to weed out those who are not right for real estate.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) 8 days ago

A great list, Amanda... and I'd add one more item to it... too many newbies simply don't have enough of a cash reserve to get themselves started and going before business starts flowing in.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) 8 days ago

Hello Amanda - reality matters.  In real estate and in life.  The reasons you have listed cover some of the important ones.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 8 days ago

You wrote the truth, Amanda. This post should be part of every real estate 101 class, and posted by every new/newish agent's desk.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) 8 days ago

I always turn to you for the best tips and advice!  Starting in real estate is certainly difficult and it is a career that usually takes years to get the hang of.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 8 days ago

Hi Amanda S. Davidson - another wonderful synopsis that agents can take to the bank.  I often get people to ask me about being a REALTOR® and I tell them what it takes but I don't emphasize how much sales experience plays a part. If you are a good or great salesperson who understands the art of the cold call, you have an outstanding chance to be successful. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 8 days ago

Amanda, It's not as easy as it looks on TV. There's REAL work involved in this Real Estate biz. Many give up early in the game...

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 8 days ago

Thank you very much, Amanda, for sharing your experience and your advice.

Posted by Roy Kelley (Realty Group Referrals) 8 days ago

Hi Amanda S. Davidson, this is a great post for all new agents as well as those who have been in the business for a minute with no sales/no leads and no goals.  

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 8 days ago

Good afternoon Amanda - those are all solid five points.  I think getting in for the wrong reasons is huge.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 8 days ago

Amanda, most agents are not good at staying in touch with past clients either.   It is a business, and most forget how to work the business.  Great post.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 7 days ago

Amanda, cannot tell you how many I hear from that think they can play golf most of the time, and still be successful at this business.   You do have to prospect, and never stop, and work when the clientele need you! 

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 5 days ago

Endre Barath, Jr. so very true! This really could have been a multi-part series. So many reasons so little time :) 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Jay Markanich that just gave me a good laugh. Yikes is all I can say!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Kat Palmiotti I wish all of your ideas would be implemented. The low barrier to entry is a big problem within our industry IMHO. More training on real-life real estate would benefit everyone, especially consumers.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Lottie Kendall I can't tell you how much I wish that would happen. I've really noticed just how many agents have no clue what they're getting into and hope that sharing what it takes to be successful through video helps at least one person. As you know, it's so much more than passing that test. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Brian England thank you, I always appreciate your kindness and support! It sure does and there are still times where I'm thinking hmmm this is a new one haha!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Sheri Sperry - MCNE® you know so much about real estate, I bet you could write a book! I completely agree, sales experience or the ability to learn sales plays a big part. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 the reality shows make it look so easy, drives me crazy! You're right, many give up far too early. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Roy Kelley thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Beth Atalay thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Grant Schneider thank you, I think so too. It's a recipe for disaster for multiple reasons. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Joan Cox you are spot on and know how much work it takes. You said it best - it's a business and agents have to be available when clientele needs us!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 5 days ago

Many of the things you list relate to LOs too, Amanda S. Davidson ... it takes real commitment and hard work to be successful and represent your clients thoroughly.  Too often those needed things are missing ...

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) 2 days ago

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi you're right, it sure does. Being an LO takes so much talent and constant commitment. It's not as easy as many think it is!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 1 day ago

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