1. Having the Wrong Mindset

Owning your own real estate business (which you do as an independent contractor) is a challenge that comes with stress. You can’t guarantee your next client or your next paycheck. Unfortunately, it’s easy to slide into Negative Town when you don’t see the money rolling in or getting rejected from leads. 

If you think, “They aren’t going to answer the phone call anyway” or “They’re never going to find a house they like,” your mindset is out of whack. Remember that to succeed, you are going to have to fail. You will have to hear many no’s to hear a yes. I won’t sit here and say it’s easy, but I will tell you that you can become more resilient. The answer is having the right mindset.

How to Avoid This Mistake

• Learn the strategies of successful agents, like how to bounce back from failure and rejection. 
• It is critical that you choose the right broker. You must get the amount of support you need from your fellow agents within that brokerage, as well as your broker.
• If your brokerage or team does not provide you with coaching, hire a growth coach.
• Join mastermind groups so that you can have a space to vent to other real estate agents about your struggles and get advice and encouragement from more experienced agents.
• Listen to podcasts and read real estate books that will grow and keep your mind positive and healthy! What we put in is what we get out.

2. No Financial Plan

Money, or lack of it, is another main reason why real estate agents fail. Agents often make the mistake of hearing how much commission other agents make and think they’re raking it in. But they don’t consider their expenses, such as brokerage or team splits, taxes, education, marketing, and lead generation expenses. It will be tough to succeed if you don’t plan for these finances and are on a budget. You must make a financial plan and use strategies to make money as an agent.

How to Avoid This Mistake

• If you are a new agent, set aside about six months’ worth of bills and living costs in an emergency fund and don’t touch it.
• As you build your business, try to live on only 50% and allocate 20% to 30% to save and reinvest in its growth so you won’t feel stressed during your less busy seasons. (Even top producers experience some months with no closings.)
• Always have a financial and business plan in place.
• Research and compare different lead generation companies before signing up and investing your money.
• Use a SEP IRA to invest up to 20% of your net income and plan for retirement.

I always put 25% of my commission check into a separate tax account to pay quarterly taxes. Just think, if you spend all the commission you receive without saving anything, how will you pay taxes when they’re due?

3. Lack of Skill

While real estate education courses teach you about industry laws and regulations, they don’t teach all the ins and outs of a real estate transaction. Agents make the mistake of passing their exams and not learning or practicing new skills. 

According to NAR, 93% of homebuyers want their real estate agent to know the purchase process, and 91% of buyers want their agent to know the real estate market. Not having these skill sets, honesty and integrity, communication, negotiation, and technology skills will ultimately hinder your capabilities in real estate. 

For example, there was one time when I didn’t answer my phone when a potential buyer called, and within the hour that it took me to call them back, they had already called another agent to help them. I’ve never made this mistake again.

How to Avoid This Mistake

• Read about these nine real estate skills to help you succeed. Make a list of the skills you feel you need to work on.
• Practice! Try role-playing negotiation skills with your fellow agents.
• Get involved in activities outside of real estate that will help you. I think golf is a great game for teaching patience. (Plus, you can meet potential new clients at the club!) 
• Take MLS courses that teach you more about data analysis.
• Join programs through your local agent association, such as leadership, that will improve your teamwork and empathy skills. 
• Ask clients and non-clients what they want and look for in a real estate agent. Then, work on the skills they have expressed that are important to them. 
• Practice effective communication skills such as active listening and asking open-ended questions, but always ask your clients how they prefer you communicate with them. The NAR highlights from 2023 show that 94% of Realtors use text messaging to communicate with their client, but don’t assume this is what your clients want. 

4. A ‘Get Rich Quick’ Attitude

Too many agents make the mistake of trying to “get rich quick” in real estate or trying to close X number of “deals” per month. This mistake will hinder building long-lasting relationships, and you won’t have a solid real estate career foundation. Considering 89% of homebuyers would use their agent again, you’re missing out on many opportunities if you jump from client to client daily. 

The second piece to this mistake is not investing in a good client relationship management (CRM) system early in your real estate career and not understanding the importance of your CRM in building these relationships. It is common for agents not to spend enough time keeping their database organized and not strategizing how they could naturally attract more potential clients or even have a strategy for following up. Real estate is a relationship business, which takes time, so a “get rich quick” strategy won’t work. 

How to Avoid This Mistake

• Reach out to everyone you know and offer them your professional real estate assistance.
• Add everyone you know to your CRM. Continue adding new contacts daily as you begin networking and meeting new people. 
• Keep your CRM organized. Spend 10 minutes at the end of your day doing maintenance and making notes if needed! Daily upkeep will make it less overwhelming for you. 
• Build relationships by staying in contact with leads in various ways. For example, mail holiday or birthday cards, make monthly “check-in” phone calls, send text messages, and email monthly newsletters.
• Join community Facebook groups, participate in community sports or church groups, or start a networking group.
• Host events for past, present, and future clients. For example, host a “Photos with Santa” event in your community or offer your past clients a free “spring family photo” session.
• Get as many real estate tips as possible from experienced agents.

One caveat: Don’t get caught up in these tasks at the expense of reaching out to prospective clients and leads to set up listing appointments and buyer nurturing. It’s easy to avoid rejection by “looking busy,” but you’re just spinning your wheels without following up with leads.

5. Not Following Up

Still wondering, “Why do real estate agents fail?” What if I told you that not following up is a huge contributor to how many real estate agents fail? A study from InsideSales found that 50% of non-essential sales (including homes) happen after the fifth touch point. Yet, 44% of real estate agents stop following up with a lead after the initial no, and another 22% stop after the second. 

So, if you do not follow up several times, you are losing fruitful relationships and potential business. Also, 50% of buyers are qualified but not ready to buy. If we do not follow up with these buyers while they are qualified, they will work with another agent who takes the time to stay top of mind and reach out to offer guidance.

How to Avoid This Mistake

• Utilize your CRM systems and automated outreach, including drip campaigns.
• Organize your leads into different categories so you know how often to follow up (for example, currently looking, one year from moving, just looking, past clients).
• Nurture your leads. Genuinely care about people and how they are doing. Ask how they and their families are. Don’t just talk about business every time you follow up. 
• Stay consistent. Set reminders for each lead in your CRM. 
• Don’t doubt the process. My clients usually text me back and say, “So sorry it took me a while to get back to you. I’ve been so busy.” They follow up by thanking me for staying in touch and reaching out when they are ready! 

6. Lack of Market Knowledge

How can people trust that we know anything about the market if we aren’t providing our knowledge to them? You need to focus on gaining people’s trust by showing off your expertise in the industry. I am not referring to a simple social media post about the past month’s stats. People want to know (and this is just the tip of the iceberg):

• How many houses were sold last month in their community
• How much can their property go for on the market
• How much do homes cost in a particular area
• Best neighborhoods to find homes in a specific state
• Mortgage rates in your state

By not understanding and sharing this knowledge with their potential and current clients, agents are making a mistake that will cost them business.

How to Avoid This Mistake

• Share your knowledge with potential clients using more video.
• Share housing market charts on your social media platforms and include them in your client’s monthly newsletters.  
• Continuously learn about real estate trends. You can start here by reading 88 shocking real estate statistics. 
• Post daily educational videos on your stories and social media feeds. You can post tips for buyers, sellers, renters, or investors!
• Share information about your local community. Make it fun! Show why you love living in your city and why others should move there, e.g., local restaurants, grocery stores, coffee shops, parks, new construction, tourist attractions, and gyms. 
• Mail or hand out neighborhood data reports.
• People appreciate it when you provide value and helpful information without directly asking for their business. Come from a place of contribution!

7. Quitting When It Gets Tough

The most common reason why real estate agents fail is that they don’t buckle up and get through the difficult seasons. Even if you want to be a part-time real estate agent, you must be committed to succeed through the mountains and the valleys. You’ll often hear agents refer to the “roller coaster” of the career, including agents who have been in the business for many years.

So why do real estate agents fail? Because they don’t know their why and think quitting is their only option. Not knowing your why creates a very easy escape route when the job gets tough. You’ll need a bigger why than money to keep going when business is slower. You must have passion and drive to help others to succeed in real estate.

How to Avoid This Mistake

• Know your why. There are many books that you can use as a tool if you need help finding your why. One I recommend is “Finding Your Why” by Simon Sinek. 
• Include your why in your business plan.
• Think about why you want to succeed as a real estate agent daily, even when you are on top of those mountains!
• Reach out to the support system you have in place—don’t isolate yourself. 
• And again, I’ll remind you to save money or get another source of income when business is a little slower.  

Bringing It All Together

Whether you are a new or seasoned agent who needs the reminder, you must believe you can succeed. I’ll wrap it up for now by leaving you all with these inspirational real estate quotes. Write them on sticky notes and put them where you’ll see them throughout the day. Believe in yourself, continue learning daily, and don’t give up! 

I hope we can increase the real estate agent success rate this year together! If you have any other personal success tips, we’d love for you to leave a comment below and share.

The post Why Do Real Estate Agents Fail: 7 Mistakes & How to Avoid Them appeared first on The Close.

I’ve compiled a list of some of the best real estate side hustles that will not only bring in extra income but also make you a more well-rounded business owner and help grow your real estate business.

1. Freelance Real Estate Writer

Starting this freelance contributor position for The Close has been the best decision, and I wish I had started it sooner! If you enjoy educating other realtors about the ins and outs of the job and you enjoy writing articles, I’d recommend looking into a position like this. Freelance writing is also a fantastic tool to grow your real estate business and credibility. Potential clients want to see that you are knowledgeable in your profession. Post your articles on your social media platforms and send them as part of your email campaigns.

Each online publication may have its own interview or application process, so contact them directly to see if they are hiring freelancers and be ready to submit your resume and application. Some publications also want writing samples. A huge plus about this side gig is that it’s free to start!

2. Real Estate Investor

Real estate investing can come in different forms, like wholesaling, rental properties, flipping homes, or other investment opportunities. This past year, I signed up to take an eight-day online investment course, and I’m so thankful that I did. I learned so much and have been able to start working toward building my investment portfolio as another real estate side hustle. 

It’s beneficial to start investing in real estate because, as realtors, we don’t have 401(k)s or retirement plans offered by our employers, so having an investment portfolio will secure savings. It also creates consistent monthly income from rental properties and generational wealth for your family.  

I recommend taking a course from the Women’s Real Estate Investors Network (WREN) (plus, it only cost me $17!). If you don’t want to sign up for the masterclass training, they also offer other resources, tools, and a podcast. Another great online course that teaches you the fundamentals of analyzing suitable real estate investments is the Udemy Real Estate Investing Course. They are currently offering this course for just $13.99.

If you are interested in the opportunity to flip homes, I recommend visiting Kiavi. It is currently offering an excellent e-book all about flipping. Plus, many of its resources cover other types of investments and financing resources.

3. Property Manager

A property manager’s duties can vary drastically according to your business plan. Still, the most common responsibilities are marketing and renting vacancies, managing maintenance requests, and collecting rent. 

If you have a lot of investor clients who purchase rental properties and need help with management, this may be the perfect side hustle for you!

Before starting this side hustle, you must check the rules and guidelines about performing property management duties according to the state where you are licensed. There may be fees associated with taking a course or getting a certification if required. 

If you are considering property management as a side hustle, I recommend looking into a company called TenantCloud. They are a cloud-based property management software company that helps collect payments online and screens potential clients. Plus, they provide fantastic educational resources about holding a landlord role.

4. Home Staging 

I know quite a few real estate agents who make extra income by staging homes. This is a smart side hustle if staging interests or comes naturally to you (check with your state licensing board to ensure this isn’t a conflict of interest since this could vary by location). As a listing agent, offer this service to your clients as part of your selling services! When you don’t have a lot of listings of your own, you can make extra money by providing your services to other agents for their listings.

The startup cost for this will be determined by whether you want to purchase the furniture you want to use, how much furniture you want to keep in stock, and the quality of the pieces you buy.  If you don’t want to utilize your own furniture, you could also work part time for an existing staging company.

5. Photography or Videography 

If you already own a professional camera and photography is your hobby, then this real estate side hustle is definitely for you. Easily start making money by offering to take listing and marketing photos for other agents. Or, if videos and editing are more your thing, help other real estate agents create videos for their YouTube channels or Instagram pages. You also can offer services outside of real estate. 

Here are some ideas for real estate-related and non-related photography and videography: 

• Listing photos
• Headshots
• Various social media posts
• Lifestyle pictures
• Pregnancy or newborn announcements
• Graduation celebration
• Proposals/engagement
• Birthdays
• Holiday events

Plus, this is a way to meet new people outside your client database and potentially grow your real estate business. I recommend marketing your services on social media platforms like Facebook, Instagram, and TikTok to get started.

6. Teaching or Coaching

One of my favorite side hustles for real estate agents is teaching different real estate courses or coaching agents and brokers. Apply and start doing this part time for a company like Champions School of Real Estate  (in Texas) or either doing online or in-person classes. This side hustle can also grow your real estate business in many ways. If you offer courses that teach the buying or selling process, it could directly enable you to meet new potential clients. If you want to have a real estate team, offering other real estate agents coaching and knowledge helps you meet agents looking to join a team.
Another option is to launch online courses or a coaching program on your own and charge a fee. If you want to launch an online educational course, I recommend checking out Kajabi. They offer a free 14-day trial, and the basic plan starts at $149 monthly after the trial.

7. Selling Digital Products 

This is a popular one right now and can be quite profitable. Once you create the digital product of your choice, you can sell it while you sleep! Deciding what type of product you’d like to create is important. Would you like to provide more value to sellers, buyers, or other realtors? Then, decide if an e-book, seller’s guide, buyer’s guide, social media template, or something else fits your style and promotes your business. You could also write an e-book on any non-real estate-related topic you want and sell it—the possibilities are endless.

Most real estate agents I follow on Instagram have a digital product for sale. A lot of real estate agents use a platform called Canva to create their digital products. Canva’s free subscription allows you to create custom graphics and PDFs using their drag-and-drop tools. Once your product is created, there are many different platforms you can use to sell these products, like Stan Store or Etsy.

8. Virtual Assistant 

There are limitless options for the tasks you could perform as a virtual assistant (VA), for example, making calls to leads, creating lists of new leads, creating and managing email campaigns, sending monthly newsletters, or creating mailers. I personally love that this side hustle is remote, freeing up time for you to travel or to continue building your real estate business. Some individuals will want to hire a VA on a contract for a specific project, whether one week or a year. It could also be a month-to-month setup. 

Your VA position can be real estate-related or something entirely different, like managing someone’s social media marketing or doing admin work for any business. I recommend joining Facebook groups such as “Virtual Assistant Savvies” to get started for free. Here, you can post on the page if you are looking for a virtual assistant position. Others will also post if they are hiring!

9. Transaction Coordinator

If you love the transaction side of the buying or selling process, this may be a good option for you. To begin a role as a transaction coordinator, you will usually need experience working on transactions and handling the paperwork from consultation to closing. This experience makes it a perfect side hustle for those already in the real estate biz. 

There should not be any extra cost for you to begin. This role could be a salaried position as part of a real estate team, or you could get paid per transaction and have a working contract with multiple real estate agents. When I started real estate, I was on a team, and my transaction coordinator was paid an annual salary. Plus, she was an active real estate agent who closed several deals yearly. She had created a pretty sweet setup, which you can do too! 

10. Showing Assistant 

A common real estate agent side hustle is to be a showing assistant for other agents. It’s a quick way to make extra money when you’re not busy but know other agents who are. Connect with other agents in your office and let them know you are available to show homes to their buyers if they are too busy, sick, or out of town. 

How it works: 

• The buyer’s agent will coordinate the day and time of the showing with their client
• The buyer’s agent will confirm that you’re available to show the property for them
• The agent or their assistant will provide you with home addresses
• You’ll show the home to their clients

It’s a good idea to look at the MLS for information about the home before you go. Then, you and the other agent can decide if you need to relay or respond to any follow-up questions or if they will speak with their clients after the showing. You will also discuss your pay with the other agent ahead of time, and they should pay you soon after the showing for the amount you agreed upon. 

11. Inside Sales Agent or Receptionist 

As I mentioned, I wish I had an extra income stream when I started in real estate five years ago. Another option is getting paid to be an inside sales agent (ISA). This person makes calls, sends emails and texts, and reaches out to potential buyers and sellers. They set listing appointments and buyer consultations for other agents but do not attend these appointments. 

Another similar side gig is to work part time, answering calls and doing administrative work at the front desk of your real estate brokerage’s office. When building up your client database, getting used to speaking with and meeting as many people as possible is beneficial. The good news is neither of these would be an extra cost to begin as a real estate agent! 

12. Monetize Your Lifestyle 

I want to mention a few ideas that aren’t directly related to real estate, yet I believe they are fantastic ways to grow your real estate business and make money by doing more things that bring you joy. I am a brand partner for an online athleisure wear and lifestyle company. There are many different types of companies that you can partner with and make extra income. Plus, these companies allow you to meet and connect with other people from all over the world.

I’m also working toward starting a “mommy and me” style workout class. I have a two-year-old little girl who loves to dance and work out with me, so this is a perfect way for me to spend quality time with her, inspire other mothers, and make a little extra income. If you have children, think about how you could offer some type of extracurricular activity, lesson, class, or event for other families too. 

Consider starting an Etsy shop if your hobbies are more of a crafting style. You can sell whatever it is that you make! Soaps, stationery, woodwork art, monogrammed items—the list goes on. These are also items you could use in a closing gift basket for your real estate clients and sell to other agents for their clients too.

How to Choose the Best Real Estate Side Hustles for You 

There are so many options out there, and choosing which side hustle makes the most sense for you can be overwhelming. I would advise you to list a few real estate side hustles that interest you and then create a pros and cons list about each option. The one with the most pros wins! 

Before you choose your top options, here is a list of questions to consider and ask yourself. These questions will guide you in choosing between the many possible real estate side jobs and finding the one that perfectly complements your growing real estate business.

• How can you leverage your current skills? Think of things that will not take you a lot of time and energy to learn.
• What are your hobbies? Think about things you already do and enjoy doing and can also get paid to do!
• How big of a commitment would you like to make? Think about how many hours and days of the week you’d like to spend on your side hustle. Consider if you’d like it to be remote work or in-person. 
• Would you like this side gig to be long term, short term, or seasonal? Think about how you want it to fit into and grow with your real estate business. 
• How much money would you like to spend on it? Consider the startup, monthly, or ongoing fees needed to keep your real estate side hustle going. 

What to Do When Your Real Estate Business Picks Up

Your real estate business will pick up, and you will experience busy seasons, so be prepared for that! Decide how much time and energy you give to each part of your business and your new side hustle. Think about what areas of your business you enjoy the most and where your strongest skill sets are. I recommend hiring an assistant to help you with the other parts! You could also hire an assistant or intern to step in and help with your side hustle. You may need to hire an assistant for both if you get busy enough! 

When more clients are reaching out to you for help than you can manage, consider bringing on another agent as a partner or building a team of agents. If you prefer to stay as an individual agent, you can hire an assistant or transaction coordinator to help manage the paperwork and help keep you on track with deadlines. A showing assistant can save time driving around to show homes. 

Hiring an inside sales agent can be great if you enjoy being out in the field showing your clients’ homes. They will continue making calls and setting new appointments while you handle current business. I have hired a few virtual assistants in the past, and I used the Facebook page I mentioned in the list above to meet them (Virtual Assistant Savvies). 

I love how these positions are also potential side hustles for other real estate agents who may just be starting or going through a slower production season. It all comes full circle! 

Now Let’s Get Hustlin’

The beauty of side jobs for realtors is that we can try multiple things until we find what works best for us! You don’t have to wait for a “perfect opportunity.” The idea is to create your dream scenario, which sometimes takes trial and error. So get started, get hustlin’, and build a life you love! 

Please share if you have personal experience in a successful real estate side hustle that I haven’t mentioned above. Or, if you already have one of the jobs I have listed above and are interested in real estate as a side hustle, let’s get you started. Leave a comment below. I’d love to hear from you!

The post The 12 Best Real Estate Side Hustles for 2024 appeared first on The Close.

You’ll notice that I feel strongly that there are more pros than cons to being a real estate agent. That’s because I have found my calling in this career. But I also want to be open and honest that real estate isn’t for everyone. It takes hard work, grit, and passion. 

Pros of Being a Real Estate Agent

1. You Can Create Your Own Schedule

The most common pro I hear from people who are thinking about becoming a real estate agent is the flexible schedule. But if you think that creating your own schedule means less work time, I’ll be the one to burst your bubble and tell you that is not necessarily true. It does mean that you don’t have to clock in with your boss every single day from 9 to 5, Monday to Friday. You are your own boss, and this is your business, so you get to make your day what you want it to be. Unless you have a team leader or broker who is setting your schedule for you, you hold the power to create a schedule that will set you up for success. 

I have found it helpful to fill in my calendar a month in advance for the things that I can, and then fill in weekly for other things. For example, when I started a networking group, we committed that our meeting time would be the first Wednesday of each month. So I added this networking group meeting on my calendar for each first Wednesday of each month at 10 a.m. 

When I became a Realtor, I was advised to schedule at least 10 hours of lead generation activities per week. The flexible part is that you get to choose which days, what time of day, and what activities work best for you! Once you decide where you want your production numbers to be and set your weekly appointment goals, you may want to increase this amount of time. 

You will also want to block availability for appointments and showings. Of course, if you have a client whose schedule only allows for times outside of what you have on your calendar, then you may need to adjust this later. Depending on the market, you may have to rearrange your other activities in order to go show them a home right when it hits the market. If your personal or family schedule doesn’t allow for this type of flexibility, then you can consider hiring an assistant or partnering up with other agents.

2. Being a Realtor Is Rewarding

This is my personal favorite thing about this career, and it makes all of the cons not seem so bad! I have never felt so rewarded doing anything else in life (except being a mother). Helping people achieve their real estate goals is truly incredible. You get to guide them in becoming their own hero—how cool is that?!

If you are a people lover and have a naturally encouraging personality, you will find a lot of joy as a Realtor. My daily goal is to try and help at least one more person, and the money will follow. 

3. Low Financial Commitment to Begin

Compared to the money that you can potentially earn being a real estate agent, the initial investment in order to get your license is pretty low! I’m licensed in Texas, one of the more demanding states in terms of prelicensing education. Even still, you can get your license here for less than $1,000. In states with fewer prelicensing requirements, such as Florida, Massachusetts, and California, you might only spend a few hundred dollars.

I personally used The CE Shop to get my license because it was all online and self-paced. They are always running great discount deals, especially during holidays and end of year. I was able to pay around $300 for all of my prelicense courses!

If you become a part of the National Association of Realtors (NAR), you will pay a separate membership fee. This will also be under $1,000, but will depend on the time of year you join.

Keep in mind that this is an investment in your career, and the opportunities to earn a substantial income as a Realtor are endless. You can work as much or as little as you’d like, all depending on what your goal income is. I’d also like to share that I did personally make the money I spent to get my license back after my first closing. So if I did it, so can you!

4. Endless Niche Possibilities

On top of the virtually endless income possibilities, the categories of real estate niches you could focus on are plentiful! Think about your hobbies and areas of interest. You can also make your focus an area of your town or city, or even a specific ZIP code or neighborhood. How great is it to be able to focus on the community you personally live in?

And it’s not just geographic niches either. You could just work with sellers if you wanted to, and have a teammate or partner who handles buyers. Or you could focus on working with just investors, or just on commercial buildings, or just leases. Here are some other niche examples:

• Condos
• Townhomes
• Historic homes
• Modern homes
• New construction
• Fix and flips
• Retail centers
• Industrial
• High-rise buildings
• Rural areas
• The inner city
• Suburbs
• Specific school districts
• Vacation homes
• Rentals

When I became a Realtor I was in a position where I needed to start making an income pretty quickly. So I felt like I needed to work with anyone and everyone, and drive anywhere to do so. But if I had put all of my focus and energy into a specific niche or area, I could have saved myself time and money.

5. Giving Back to Your Community

I believe we should do more than just live in our cities and towns—we should help them thrive! Being a real estate agent gives you the perfect platform to do just that. 

I recently joined a program called Homes for Heroes that will allow me the opportunity to give back to the heroes of my community: active military members, veterans, law enforcement, teachers, health professionals, emergency workers, and firefighters. 

This is a nationwide program, so if this interests you, then you should look into it. But the possibilities are truly endless here with what you could do for your community. If you have children in school, or you’re a member of a club or church, you can partner with these organizations to make some great things happen!

Cons of Being a Real Estate Agent

6. Lead Generation Can Be Challenging 

There are many elements to lead generation, and not all of them will be cons. But at first, it may feel daunting and challenging! For example, the fun part of beginning my lead gen journey was reaching out to everyone I knew and making the announcement that I had passed my exam and I was officially a Realtor! But then what? Not everyone I knew was going to be selling or buying a house! So then the challenge became reaching out to people I didn’t know and telling them that I wanted to help them buy or sell a home. Would they trust me? And what’s the best way to reach out to people you don’t know?

This will also depend on the brokerage with which you associate your license. Some brokerages will provide training on lead generation—or even provide you prospects to pursue—and others will not. There are so many lead generation programs out there. The team I joined when I started already belonged to a few lead generation programs that we used to call leads. But I just personally have never felt comfortable with cold calling. I know it works—that’s why so many real estate agents find success from it. But over the last couple of years, I focused on other avenues of lead generation that feel more natural to my personality. 

Because I have a background in event management, doing event-based lead generation is fun for me! If you are a golfer, start talking to more people at the course. Or if you are a parent, join the PTA and meet new people who might need your services. Being a real estate agent is so much fun—I love people and pouring into others. Building relationships will build a business in the long term!

After you find some different activities that are working for you, be consistent! Don’t stop doing something if you don’t see immediate results, particularly with mailers or social media. These things take time, consistency, and a lot of patience to grow!

7. Cost of Running Your Business Could Be High

Earlier I mentioned that the cost to get your license was fairly low. On the other hand, there are other costs that come with keeping your license and running your business. When interviewing with different brokerages, it is important to ask about what they will charge you, like desk fees and signage fees. If you are on a team, these fees will most likely be included in the percentage of commissions they keep from each of your checks. 

Regardless of whether you’re an individual agent or on a team, you’ll end up spending quite a large amount on marketing. This includes photos, videos, templates, mailers, flyers, consultation presentations, door knocking items, client gifts, events, and more. 

The biggest downside to this is that you spend all of this time and money without the guarantee that you will make this money back. Of course, if you are putting in the work along with the marketing, then I’m 99% sure that you will make the money back plus some, but there is just no guarantee. 

In addition to marketing, you may spend a fair amount of time and money working with buyers who may never actually purchase a house. If they don’t buy a house, we don’t get paid. I’d honestly say this is the biggest con in my experience. The majority of my clients do buy a home, but this year I have personally experienced a few deals go wrong. So the time and money I had invested in those clients was not returned, unfortunately.

8. No Guaranteed Paycheck 

Not having a definite paycheck coming in month to month can be a huge stress factor in this career field. Yes, you can help eliminate some of this fear by having a plan of how much you need to make per month and backing it up with the actions you take to make sure you hit these numbers. But regardless of how much you plan, honestly, there will be deals that go wrong for reasons completely out of your control. You don’t want this to put you in a terrible financial situation. Always have savings and some cushion in your account for these times. 

There will be ups and downs—slow markets and lucrative markets. I’ve experienced months with no closings, and some months with seven closings. The key is to not feel financially stressed through these ebbs and flows.

I went quite a few months before my first closing when I became a Realtor. Once I started saving a portion of each commission check and reached my expenses goal, my stress level decreased substantially. When I wasn’t stressed about the next closing anymore, I noticed my business growing even stronger. I could walk into a consultation with more confidence and less fear of rejection.

9. Dealing With Rejection Can Be Tough

Especially if you have never been in sales, hearing the nos can be quite challenging! Honestly, even after five years, it’s still not fun. Rejection is tough. You will get hung up on when making cold calls and even rude responses when texting people you don’t know. You will go on many consultation appointments, and you won’t end up working with every one of those people because they choose to work with another agent. It’s also tough when you submit an offer for your buyer in a multiple-offer situation and the seller doesn’t go with your client.

That’s why I mentioned in the beginning of this article that being a real estate agent is not for everyone. You have to have grit and thick skin. 

It is all about learning how to let the nos go and then focus on getting the next yes. In the beginning, someone told me it takes 12 nos to get to the first yes. This helped me because I was already expecting to hear the nos.

Don’t get me wrong; I still would like to only hear yeses! I don’t think this part of being a real estate agent ever gets easier. But I do know you will doubt yourself less after some time goes by. You will gain more confidence and have peace knowing you did everything you could do.

Over to You 

After reading this article, if you are feeling like being a real estate agent could be your calling too, then leave me a comment below. I would love to hear from you and answer any follow-up questions you may have.

The post 9 Pros & Cons of Being a Real Estate Agent (+ Tips for Success) appeared first on The Close.

When I knew I needed to make a change, I had no idea which brokerage I would choose, when the right time would be, or where to start. And would people still want to work with me? That’s why I wrote this step-by-step checklist to take away the stress—so that you can focus on the excitement and growth ahead of you! Plus, I want you to feel confident that you can make the switch without losing clients. If I did it, so can you!

But let’s be honest: Getting out of our comfort zones isn’t easy. Still, nothing great comes easy, right? Let’s jump in make sure you’re prepared to make the transition to a new brokerage as smooth and efficient as possible. 

1. Make a Pros & Cons List

Remember, the grass isn’t always greener on the other side. If you are thinking about switching brokerages just to get more clients, then my advice would be to sit down with your team leader or broker and have an open conversation with them about your wants, needs, concerns, and goals. If you like the people you work with, and they can support you in achieving your goals, then it may not be time to make a change. 

But if there’s something that you know is absolutely not aligning, and you’d truly be a better Realtor and better serve your clients elsewhere, then I’d say it’s time to make the switch.

I’d like to challenge you to think deeply about why you want to make a switch. Do you want to go from being a solo agent to joining a team, or vice versa? Do you need more support, more advanced technology tools, more marketing opportunities, or more commission? Would you like to place yourself in a different location or niche area? Are your goals and direction not aligned with your brokerage or team anymore? I do believe that if you’re not growing together, then you’re growing apart.

If you find yourself having a lot of back and forth thoughts about your decision, I find it’s best to write it all down. Make a list of all the pros about working with your current brokerage, and then make a list of all the cons. Also, write down your goals for 2024! Do the targets set by your current brokerage align with your goals?

 You can find more insight on knowing when it’s time to make a switch in the article below.

2. Meet With Potential New Brokerages

Keep an open mind at this point. You need to start having these conversations before you decide whether you are making a switch. Connecting with other companies may make you realize you want to stay with your current brokerage.

In Person or Phone Calls?

Have as many in-person meetings as possible. This is a big decision, and in person is the best way to get to know what someone is like and how they run their business. If you can’t meet the actual broker in person, then try a Zoom meeting or phone call. Email is the least desirable option, but may be necessary at some larger companies. 

Meet the Other Realtors

Speaking with other agents in the brokerage is important. Get as much inside information and honest feedback about what it’s like to work there as you can. Ask how long they’ve worked there and about their pros and cons in terms of the brokerage. Also, meet with the team leads in the brokerage—even if you are not joining a team—as well as any other employees they may have (transaction coordinators, office managers, and coaches).

3. Meet With Your Current Brokerage

If you’ve found a new company with more pros than cons, it’s time to share your decision with your current brokerage face to face. I know this can be nerve-wracking, but take a deep breath, and feel confident about your decision. I promise they will respect you for speaking with them in person. 

Don’t Burn Bridges

When giving notice, be honest and open. Thank them for the prior opportunity to work with them. My team lead ended up telling me that I was always welcome to come back if I wasn’t happy with my decision, and so I still have a good relationship with those team members. 

While you do want to be honest about why you’re moving on, there’s no need to burn any bridges. You never know when you could come across an opportunity to work with them in the future. What if they have a home listed that your client is interested in? You’d want to be on good terms, right? 

Deals Currently Under Contract

During this time, you will also discuss details of deals you may currently have under contract or listings that haven’t sold yet. Your contract with your brokerage or team should include details on how these situations will be handled. They differ from brokerage to brokerage, but it’s best to talk them through during this discussion to make sure that everyone is on the same page. Here are some important questions to ask:

• Will my current listings stay with the brokerage, or will I take them with me? If they stay with the current brokerage, you may just be able to continue selling as normal and keep your regular split upon closing. If you were to take it with you, you may need to give a referral fee to your current brokerage. 
• What kind of referral fee will I pay my team lead or broker if a lead from their database calls me to take care of them? It may be tempting to keep this quiet, but if a client from your old database calls you, tell your old broker or team lead right away! 
• How will my sphere-of-influence contacts be handled? Be sure that your personal contacts will be exported and sent over to you in some format that will allow you to take these clients with you. Also, confirm that they will be deleted from any previous drip campaigns or brokerage marketing emails.

Again, these terms all differ from brokerage to brokerage. And you all may decide that another plan outside of those terms will work best for a particular situation. From my personal experience switching brokerages, the deal that I had under contract just stayed and closed with my old brokerage, and they mailed me the commission check as normal. Honestly, the most important part for me was that my clients didn’t feel any shift or lack of care during my transition. 

4. Make It Official

Congratulations on completing (what I think is) the hard part—now onto the paperwork! Here’s a checklist of the little things you’ll need to take care of at this stage:

5. Switching Out the Swag

You will need to give any items you may still have back to your old brokerage, and yes, this includes the lockboxes you forgot you had in the trunk of your car. Don’t forget open house signs, for sale signs, swag, postcards, etc. 

The exciting part is ordering new items! You’ll need new sign riders and swag. If your brokerage doesn’t provide lockboxes, then go ahead and purchase one to prepare for that new listing you’ll be getting soon. Again, this will vary from brokerage to brokerage. Some may provide these items, and some may not. 

6. Schedule New Headshots

There’s something about taking your new headshots that really makes it all feel real! If your brokerage doesn’t have a photographer that they already use, then I recommend asking someone who knows you and can bring out your confidence. Make sure to wear a color, style, and fit of clothing that is going to make you feel your absolute best. Or choose a color from your new brokerage brand colors. If you’re not sure what to wear, then you can hire a personal stylist to help!

7. New Email Signature & Business Cards 

Once you have your new photos, you can order new business cards! If you don’t want your photo on your cards, then you can go ahead and order them back in step five. You can also use your new headshot to set up your new email signature and social media profiles.

8. Finally, Let’s Get Social!

Now for the most fun part of your big transition. You can go ahead and make that social media announcement that you have joined a new brokerage! Of course, you can post stories throughout your entire journey, building excitement in real time and sharing behind-the-scenes footage. But below I’ll give tips on making official announcements over multiple social media platforms.

If you want to use my version as a jumping off point for writing your own, here’s a template you can copy, paste, and edit in Insta:

copy to clipboard

I am ecstatic to join {new brokerage name} and continue my growth as a Realtor!

So grateful for the people that have helped me get here and extremely thankful for the people that are providing new opportunities.

Consistent growth personally and professionally is what it’s all about! This is what allows me to provide clients with the absolute best experience possible.

I’m here and ready to help you with all things REAL ESTATE. Don’t hesitate to reach out!

The Close Recommends

If you’re not sure how to make a big splash with your announcement, check out Coffee & Contracts. They have templates for all kinds of common situations in real estate, including telling your sphere about your big move.

Check Out Coffee & Contracts

9. Set Up Your New CRM

Typically, brokerages already have a customer relationship management (CRM) platform for you to use, but if for some reason they don’t—or you want to use a different one—there are a ton of good options available out there!

As soon as you’re logged in, start building your new CRM! Import your existing list and add in as many family members, friends, business partners, or anyone else you can think of that you had put off adding in to your old CRM. This is a very important step to building your foundation at your new brokerage without losing clients or prospects. 

10. Email Announcement 

Use your excitement to get others excited about their real estate goals! Now that you’ve got your sphere in your CRM, it’s time to send out an email announcement about your big move.

I’d recommend a short introductory video, with a written-out email below it, and a link to your new website. Try to keep the video portion under one minute. Your CRM program should have a form of email blast marketing template, but if it doesn’t, then you should use a program outside of your CRM that is video-friendly!

11. Get to Know Your New Tribe

Time to get to know your new fellow Realtors, if you don’t already! Join your new brokerage text message groups, Facebook groups, team meetings, and happy hours as soon as possible. This is your new tribe, and it will make for a smoother transition for you if you feel connected!

12. More Social Media Announcements

Keep the excitement going! Create another social media post announcement and make it a fun reel or video this time. Below is a boomerang reel I posted on Instagram when I received my new brokerage sign riders. I shot it in my new office (to the song “If You Need Me, Call Me”). This could also be a video of you showing off your new business cards. Get creative!

13. Go Make It Happen, Captain

Now that you’ve completed all the steps and you’re settled into your new brokerage, it’s time to get to work! I believe that you’ll be able to help even more people in the new year than you did the last. If you make a shift the right way and for the right reasons, you’ll soon see that you didn’t lose any clients from making the switch, and you’ve actually gained even more.

14. Pop the Champagne

Oh, yeah: Don’t forget to pop the champagne and celebrate your accomplishments. Congratulations, you did it!

It’s important that you don’t underplay this moment in your mind. What you just accomplished is hard! I realize what it takes, and empathize with you on the pain points of making the change. It can feel as if you’re having to start all over again in a way. But let me remind you that you aren’t. All of your experience that has gotten you to this point will remain as your foundation.

It can also be a daunting thought to have to make the time to switch all of your marketing, complete the paperwork, and so on. But I hope this article challenged you to change your perspective and think about it as an investment of your time in order to create a larger return on investment than you are currently seeing. 

When I made the switch, I struggled with the idea of potentially losing my clients and the connections I had built. But after making the switch to a new brokerage a year ago, I have found that people actually never associated me with the brokerage I was with—they simply want to work with me because they like who I am as a person and they trust me.

I’ll leave you with two of my favorite quotes for inspiration as you start your journey ahead.

• “If it doesn’t challenge you, it won’t change you.” – Fred DeVito
• “If it’s both terrifying and amazing, then you should definitely pursue it.” – Erada

The post How to Switch Real Estate Brokerages in 2024 (+ Template & Checklist) appeared first on The Close.