New to the industry? Start with everything you need to know about the early decisions that will shape your career, including choosing a broker, researching your market, building an online presence, budgeting, getting leads, marketing listings, and more. If you are a team leader or broker owner, New Agent Month will be packed with resources to help your new hires navigate.
During his career, Lombari employed about 800 people. realtors… To test them, he compiled a list of nine reasons why most new agents fail.
During each interview, he reviews the list with a prospective agent. Some will inevitably get in trouble, but he says three should be the limit.
“A candidate with more than three is, in fact, a ‘walking dead man (woman),’” he wrote to Inman.
During an additional interview, he broke the list.
1. They don’t spend enough time on the task.
Lombari told Inman that when new agents start working full-time, they usually need to devote at least 20 hours a week to their careers.
“You can’t really succeed in real estate if you spend very little time on it,” he said, adding thatWhen he first started out, he worked 60 hours a week.
If new agents say they only have five free hours a week, he tells them that starting a business from scratch will be nearly impossible.
2. They lack a financial cushion.
New agents can wait several months before payment is received… He waited a year for Lombari.
He told Inman that it was very important that they had enough money to cover the living costs of four to six months.
If an agent lives off double income, Lombari continued, he must set aside his entire share for these months.
“Let’s say you get zero. What do you need to get your share of that income within six months, ”he said.
3. They lack family support.
It is important that the new agent’s family is aware of their long schedule, which can take up weekends and evenings.
Lombari explained that transparent communication is key. He said new agents should ask themselves, what sacrifices will their family make in the short term?
4. They lack attention
Having a flaw focus goes hand in hand with the first problem on this list: not giving enough time to a task.
Lombari explained that if a new agent has hobbies or commitments outside of work, he must be able to effectively limit time.
When an agent lays out his watch, he continued, distractions need to be limited. Things like television and social media can take a chunk of your day away from you.
5. They are unwilling to take responsibility or be held accountable
As Lombari explained, a real estate agent is both a boss and an employee.
“Most real estate agents, when they get into the industry, have never been a business owner before,” he said. “So there are problems with that.”
Agents not only need to complete tasks, but also have a long-term vision and planning. “The challenge is to wear both of these hats at the same time,” he continued.
The agent will not want to engage in certain parts of the business, such as cold calling. As their own boss, they must have the discipline to complete tedious tasks.
If a hat change is a weak point, Lombari suggests finding a mentor or coach. “If you’re the wrong boss, find him,” he said.
6. They don’t want to learn
“The real estate agent is completely ignorant. The state course requirements are only intended to provide “relative” security for the population, ”Lombari said.
He went on to say that in order to run a successful business, an agent must have the desire and internalize the following:
- Market (macro and micro)
- How to negotiate / think about solutions
- How to search / find clients
- Technology (e-signatures, websites / bulk email / CRM / MLS / IDX / etc.)
- Luxury goods / foreclosures / commercial property / relocation / military / senior citizens / second home / etc.
7. They don’t respond
How long does it take for a new agent to respond to a request?
It depends on how badly they want to have a business, Lombari said. If the agent can respond to the request, he should not wait more than five minutes.
“The consumer doesn’t care about you and has a million options,” Lombari said. “Answer immediately, you are a business owner!”
Boundaries should be thought out and set from the start. Then the agents must live by them.
Lombari explained that if there are certain days or hours during the week when an agent is busy, he should immediately inform his clients about it. And if the agent misses the call, he must have a voicemail with a detailed schedule so the client knows when to expect a call back.
8. Their business lacks systems, models and training.
New agents need to create clear business plans – explained Lombari.
How many transactions do they need to complete to reach their target income? What models will they take when it comes to exploration? What kind of CRM are they going to use?
New agents typically move between systems and models, Lombari said. But the sooner they can determine how they are going to run their business, the sooner they become experts at it.
9. They lack tenacity, drive and determination.
“This is the most powerful of all,” Lombari said.
If new agents have tenacity, drive and determination, they can overcome most of the bumps in the road.
“Can these weaknesses be overcome with pure determination? They can, but this requires great intentions and energy, ”he said.