3 Mistakes real estate agents make when starting out

Starting a career in real estate can be both exciting and challenging. The fresh energy and enthusiasm new agents often bring to the industry can quickly be dampened after making their first few mistakes. While the journey to becoming a successful real estate professional involves continuous learning, some of these mistakes can be avoided with the right guidance and attitude.

Grant Gavin, Broker/Owner of RE/MAX Panache, explains that there are relatively low barriers to entry for this career path and if you get the right blueprint for success from an experienced manager and leader, the real estate profession can provide an amazing opportunity to build a successful business within a business.

“There is no ceiling to what you can earn; but, from my experience, the biggest challenge often lies with having the right mindset. Sales requires that you step up, take action, and stand out. This often pushes people towards the outer edge of their comfort zones. The ones who break through always succeed, while the ones who recoil back to comfort take much longer to get going, or ultimately, they end up leaving the industry,” he notes.

To help new agents acquire the right mindset to achieve success, Multi Award Winning Broker Owner of the RE/MAX Office in South Africa, Grant Gavin, shares the top three mistakes many agents make when starting out. His office, RE/MAX Panache, employs 70 agents who sell over R1,5b p.a in the North Durban residential property market. He is also a coach, speaker and author of the book Thoughtonomy, all of which provides him with valuable insights that can help agents succeed.

1. Thinking real estate is easy

“Outsiders always assume that real estate is easy. It’s one thing to be a buyer or seller of your own home, and to be critical of your agent, but it’s completely different when you are the one playing the role of the advisor, leading people through an emotional transaction. A big red flag to me is when a new recruit tells me they have what it takes to succeed because they’ve bought and sold so many times in their personal capacity. I know how much they are still going to have to learn and its often quite overwhelming when you realise how much you do not know,” he writes.

2. Lack of financial stability

“One of the biggest mistakes a new agent can make is to enter the industry without financial stability. The likelihood of selling in your first week is generally quite low, and even if you sell a home on day 1, you’ll wait 3-4 months for your commission to pay out. Being able to sustain yourself for at least 6 months financially is advisable, so that you can build your business in real estate without unnecessary pressure.”

3. Underestimating the sales aspect of the role

“Many new recruits fail to understand that real estate is a sales job first and foremost. The glamorous part of showing beautiful homes to buyers is probably 10% of the actual job. Prospecting and lead generation for stock is priority number one and this pushes most people outside of their comfort zone.”

Understanding that there is so much to learn and do when you are new to the industry, Gavin suggests that new recruits focus the majority of their energy on lead generation for the purpose of getting listings of homes to sell – and know that they will not just fall into your lap.

“Start by clearly defining your personal network of people with whom you already have good relationships. The people who know, like and trust you as a human being will support you in your real estate career, and you are going to have to be prepared to lean into these relationships. Thereafter, be prepared to stand out with a strong marketing and personal branding campaign to further build out your network,” he advises.

For those who have the right attitude and are willing to put in the work, a career in real estate can be incredibly rewarding, with endless earning potential. However, the road to success does not come easy. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, learning from the experiences of others and being proactive in professional development are key steps in building a sustainable and prosperous real estate career. “When joining a real estate brand, make sure that it offers enough support and training to help you get the best possible start to your real estate career,” Goslett concludes.

Writer: Kayla Ferguson