Below you will find the most common reasons why real estate agents lose money in their real estate business.
Limited Time Dedicated
Let’s face it. Getting your real estate license is a fairly easy task. And many agents enter the business part time with false expectations.
When an agent is part time, they tend to leave a lot of money on the table. Why? Part time real estate agents just do not have the 100% focus on their craft.
They tend to neglect many aspects of the business leading into a lack of sales.
Real estate agents lose tens of thousands of dollars without an appropriate plan.
Have you ever done something where you just kind of ran around in circles? Well lack of a plan, systems in place and a discipline schedule can all lead to costly mistakes for the average REALTOR.
In any business, if a real estate agent doesn’t track their income and expenses, they can be in a world of hurt.
How do you know if you are profitable? You cannot legitimately know unless you are dialed into your fixed costs, marketing costs, income and projected income.
Just watch an episode of Shark Tank and you will see what we mean.
Not Declining New Business
That’s right. This may sound counterintuitive but taking on every prospective client may not be the best for your pocket. Or mental status for that matter.
Take for example. You take an overpriced listing. Over say a 6 month period it never sells. You spend hundreds, maybe thousands of dollars marketing the property. You get very few leads because it’s overpriced.
You likely will lose money on the deal if you take an overpriced listing. Be selective in your clientele and their expectations.
Lack Of Follow Up
This is likely the largest costly mistake real estate agents make. A lack of follow up with prospective clients will be detrimental to a REALTORS business.
There are hungry agents in your market who are in front of your database looking to eat your lunch. The agent who is persistent and provides value on a consistent basis will win the business.
If that isn’t you, you cannot expect or be angry when that client doesn’t buy or sell through you.