5 Reasons Why Your Real Estate Business Might Be Failing
Updated: Feb 16
“Are you a true and dedicated REALTOR or a fake?”
Wait a second! Don’t answer that yet. The truth is that time will tell.
Unfortunately, time’s relationship to real estate is pretty harsh. A vast majority of real estate agents end up getting chewed up and spat out before even realizing what hit them in the first place. About 87% end up failing woefully according to some estimates.
Being a realtor and trying to do everything by yourself is amongst the most likely ways of failing in your business. On the sad side, most businesses might start showing signs of failure from the very beginning due to awful practices and negligence.
According to some publications, about 96% of real estate agents glide out of business within the first decade, and with over half that percentage giving up by the end of the first year.
Due to how easy it might be to get started in the real estate business, it often requires little or no capital to get rolling. As such, you can read a real estate book today, get a license and your business registered tomorrow, and eventually become a full-fledged realtor by the end of the week. This is undeniably awesome. But it’s quite easy for those who haven’t completely adopted the business skillset and mindset to be successful in business at the end of the day. Are you one of such persons?
Sadly, over thousands of real estate businesses start at dawn and fail before the sun sets. Hiring the services of a Transaction Coordinator could be an ideal option to adopt to be successful. But first, I’m going to outline 5 reasons why your real estate business might be failing.
1. Trying to Do It All on Your Own
Today, most real estate agents believe that being successful in the business is easy, and they embark on business proceedings without seeking professional help. Doing business on your own isn’t ideal at all. It’s just a free train ticket to failure. Imagine trying to sell property on your own while hiding property problems, selling to unqualified buyers, or not carrying proper insurance and skimping listing photos. These are just unhealthy moves that will get you crushed in no time.
Moreover, most realtors fail to make it long in the business not only because they try to do everything on their own or they don’t work hard, but also because they believe that being successful is easy. The top agents in any real estate market didn’t get to where they are today on their own. In fact, they’ve likely worked with other qualified pros for years while perfecting their skill sets. So, working alone is an indisputable sign of failure in your real estate business.
2. Failure to Work Hard Enough
Running a successful real estate business generally requires hard work and commitment. It doesn’t matter which particular market you’re in. Just starting your business entails lots of blood, sweat, and tears.
One of the reasons why most real estate businesses fail is simply because of the lack of hard work, dedication, and commitment. You’re supposed to be able to work for long hours especially from the very take-off stage. Just like with ‘banker hours’ from 8 AM – 5 PM daily.
Being successful in the real estate business means working hard and learning from other accomplished and well-established realtors. Besides, there’s no crime in learning! Find out how they go about their businesses daily while bearing in mind that whatever is working for other businesses might not work for yours. All in all, the work ethic for most excelling business are often the same. So, if you’re not a hard worker, then you wouldn’t expect your next-door neighbor to let you know you’re failing in your business.
3. You Get Involved in Real Estate for The Wrong Reasons
The real estate business in general isn’t for everyone out there. Most agents fail simply because they get into the business for the wrong reasons.
One common reason is that they think all real estate business agents, brokers, wholesalers, flippers make boatloads of money from deals. Sadly, this is just another real estate myth and far from the truth. Real estate agents earn $40,000 averagely in a year.
Another common reason why people find themselves in the real estate business for the wrong reason is the love for beautiful houses or influence from the HGTV shows. Being a successful realtor is far more than being a professional door opener.
If you get into the business out of influence from the above-mentioned reasons, it’s definitely not a good sign. It’s important to get involved for the right reasons otherwise, you might just become the next real estate failure story.
4. You Don’t Save Enough Money to Live On
Most successful realtors spend hefty sums of money to build their business from scratch because they know how important it is to them. Whether it’s investing in promoting yourself to the sphere of impact or using available top real estate marketing strategies to sell homes, it definitely costs money.
Your real estate business might be failing if you still haven’t realized that it costs money to run it. You might realize but yet still have no extra money to take care of bills, student loans, pay groceries, and other necessities. This is just another path to business failure.
Before getting into the business, you should have enough money saved for bills and necessities.
5. No Action Plans or Goals
Setting goals and action plans are a crucial part of every successful real estate business. Failure often starts when you’re not able to properly set these short and long-term business action plans and goals.
Successful businesses should set action plans and keep reviewing them as often as possible. It’s not as easy as setting a long-term yearly goal, but it’s important as it helps track progress.
setting business goals and action plans makes realtors more accountable which, in most cases, leads to better results while eliminating the chances of failure.
The real estate industry has a lot of business to go around with very high rates of failing businesses being recorded. As such, it’s extremely important for new and old realtors alike to revise business practices and avoid eventual failures.
Looking at the far bright side, hiring the services of a professional Transaction Coordinator will help manage deadlines and paper works involved in your real estate business transactions while helping you stay clear from failure.