When people often hear that someone is a real estate agent, one thing comes to mind: they must have lots of money!
It's true that the profession can be rewarding in many ways. There are people whose lifestyle fits like a glove with the call of being a real estate agent. But it’s not all sales and profit all the time.
Real estate agents can succeed and fail at their job. Before anything else, you need to look out for signs that can lead to career failure.
Below we'll give you some insights on what can affect your career as a real estate agent. Know the struggles and challenges agents face.
Find out how to avoid the path to failure so you can steer yourself in the right direction.
Like any job out there, you'll find real estate agents that fail in the business. But don't let this discourage you from trying it out. Being aware of the reasons why failures happen can help reduce the chance of you landing on the same fate.
1.Engaging in Bad Deals
Unlike stocks and bonds, real estate is not exchangeable. Properties are not light investments. You'd need enough mental, emotional, and financial capability means to invest in one.
Real estate agents take a bad turn when they engage in bad deals. As intense as the investment of cash is, bad deals take years to resolve. There are a ton of factors that result in bad deals. These include low occupancy, risky physical conditions, and problematic tenants.
Bad deals can stem from investing in areas that the agent isn't familiar with. The more that the agent takes unnecessary risks, the more that bad deals take place.
Choosing the niche isn't the main problem of why real estate agents fail. It's their level of expertise in the niche they've chosen that matters. An agent needs to master the investment segment that he or she plans to succeed in.
If you're still starting, look for a niche that you are willing to learn about. To be a full expert on an area it takes about 10,000 hours or roughly 5 years of full-time work. Dedication is a must and mistakes are okay. The important thing is you know when to change your approach.
3.Focusing on Too Many Geographical Areas
As an agent, you'd want to cover as much geographical area as you can. But you should know where to draw the line. Look into the type of properties in the area and decide what your preferences are. You could choose to operate on a part of a metro area or in the metro itself.
There's a difference when you want to be an expert in the metro or part of the metro. The key is, knowing one area well before trying to conquer them all.
Things get easier when you're open to what is trending and have a steady line of communication. Changes are rapid nowadays and it's important for agents to stay in touch with the market.
It's fine to take risks as long as you know what your capabilities are. Don't feel down about the failures of others. Being a good agent can take years of experience and there is always a possibility of success.