17 Reasons why Real Estate Agents Fail.
Why do most real estate agents fail?
On the surface, real estate agents seem to be doing well to those on the outside of the industry. When you tell people that you are “in real estate” they instantly assume that you are very well off and make a lot of money.
The industry has been going through a tough time, with new competition in the industry making it hard for many real estate agents to stay afloat.
But on the other hand, there’s never been more money in housing than today! It seems like an exciting time to be in this field; but how can you make sure that you succeed?
There is no one way to do things because every agent does what they think works best for themselves.
Some people have had success by being very selective about which properties they represent, focusing only on those that are likely to sell quickly or bring good prices. Others have found their niche in finding buyers for discounted properties, working with investors, or helping first-time home buyers.
But how many real estate agents fail their first year? Roughly 87%.
The failure rate of real estate agents is astounding.
But why do so many real estate agents fail within the first years of entering the industry? What makes some agents so unsuccessful, always chasing their next deal with desperation while others seem to turn everything they touch into gold?
The answer is more complex than you think.
There are many reasons why real estate agents fail, some of which are internal issues that the agent can control, while others are external forces that are harder to manage.
In this article, we explore 17 reasons why real estate agents fail and how you can make a change for the better. We’ll also show you what it takes to succeed as an agent in 2022!
The 17 reasons why real estate agents fail
1. A lack of knowledge
2. They don’t have the right tools or resources
3. They’re not following industry trends
4. They’re not keeping up with technology
5. They’re not networking enough
6. They’re not marketing their businesses effectively
7. Their pricing is off
8. They don’t understand their target market
9. Their customer service is poor
10. They’re working with bad agents/brokers
11. They don’t have a good business plan
12. They’re not investing in themselves
13. They don’t know how to sell houses
14. They’re lazy and unmotivated
15. Their ego gets in the way
16.They Lack Self Esteem
17.They Quit
1. A lack of knowledge
One of the main reasons why new real estate agents fail is because they lack knowledge.
They may not know about the latest industry trends, or how to use technology to improve their business, market properties, find the right homes for buyers and generate leads.
They also may not understand their target market, which can lead to poor customer service and lost sales.
Furthermore, real estate agents who don’t invest in themselves and continue to learn new things will quickly fall behind their competition.
A lack of knowledge is one of the key new real estate agent struggles.
2. They don’t have the right tools or resources
Real estate agents who don’t have access to the right tools and resources are at a disadvantage and are more likely to fail.
Some of the most important tools and resources that agents need include:
– A good CRM system to keep track of leads, clients, and deals
– A real estate website that looks professional and is easy to use with an IDX
– The right technology, such as a reliable laptop and software for creating presentations, contracts, and other documents
A lot of brand new agents who are just entering into the industry have the problem of not having enough money to invest in these resources to help them run their business and try to be as frugal as possible when it comes to spending money on their business.
But you know what they say, you have to spend money to make money.
Although that point is true, it is not so easy for brand new agents to spend money on these resources when they are not sure whether or not their investments will pay off.
This is due mainly to a lack of self-esteem and belief in themselves as agents, which is another major reason why real estate agents fail.
It is important for real estate agents to look for opportunities to get their hands on these tools either for a discount or free by partnering with the right team or brokerage.
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3. They’re not following industry trends
If you’re not following industry trends, you’re behind the curve and more likely to fail as a real estate agent.
The real estate industry is constantly changing, with new technologies and marketing techniques emerging all the time. If you’re not keeping up with these changes, you’re going to fall behind your competition and lose sales.
It’s important for agents to stay up-to-date on the latest trends by reading industry publications, attending workshops and webinars, and networking with other professionals.
This is a pitfall for many experienced and seasoned realtors because they get too comfortable with the way that they have been running their business and no longer get down “in the trenches” to stay up to date with the market, learning first hand what buyers and sellers want.
4. They’re not keeping up with technology
Another reason why real estate agents fail is that they’re not keeping up with technology.
Technology is constantly evolving and if you’re not using the latest tools and resources, then you’re going to fall behind your competition and miss out on quite a few opportunities.
For example, most people now use the Internet as their preferred search tool for buying or selling properties.
Real estate agents who don’t have a good online presence with either a real estate website or social media accounts are likely to lose potential clients to those that do.
It’s also important for real estate agents to focus on building an online community through marketing strategies such as blogging, email marketing, SEO, Video Marketing, and PPC, among others.
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5. They’re not networking enough
A shocking reason why real estate agents are failing is that they’re not networking enough.
If you’re not networking with other professionals in your industry, you’re missing out on a lot of opportunities.
You never know who you might meet or what connections you might make that could help you in your career.
Networking also allows you to build relationships with other professionals and exchange ideas, which can help you to grow your business.
It’s important for real estate agents to attend networking events, join industry associations, and get involved in online communities.
By attending these networking opportunities, real estate agents get to open their eyes to new ways to market their business, learn about new tools that top agents are using, and even get referrals!
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6. They’re not marketing their businesses effectively
What do real estate agents struggle with the most? Marketing and lead generation.
Real estate agents who don’t market their businesses effectively are more likely to fail.
Marketing is essential for any business, and real estate is no exception.
If you’re not promoting your services, then no one is going to know about them.
There are a number of different marketing strategies that real estate agents can use, such as print advertising, online advertising, direct mail, social media, and networking.
It’s important for agents to find the right mix of marketing strategies that work best for them and their businesses.
They also need to be consistent with their marketing efforts and track their results so they can see what’s working and what’s not.
Tracking your business is essential, what you are able to measure you are able to improve. Make sure that you pick a marketing stream that you can be consistent with for a long period of time and measure the results that you are getting from that strategy.
Track your KPIs or Key Performance Indicators, the things in your business that directly lead to your income.
Also, as we mentioned earlier, a lot of real estate agents are failing because they are not staying up to date with their marketing methods.
If your mainstream of marketing is newspaper ads, door knocking, cold calling, mailers, or billboards then you are not reaching a major portion of the market in 2022 and not using your time efficiently.
Most real estate buyers and sellers look for their agents online or through social media. If you are not using online or social media marketing, then your business will be irrelevant in 5 years.
It is a fact that everyone will first look to google for guidance before they make any major or even minor decision.
If you are a real estate agent in 2022 with no google presence then you might as well put your license in inactive status.
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7. Their pricing is off
One of the main reasons why real estate agents fail to sell listings is because they price their listings incorrectly.
If you price your home too high, you will scare buyers away and it will sit on the market for a long time.
If you price it too low, you may not make as much money as you could have if you had priced it correctly.
It’s important to do your research and find out what the right price is for your clients’ homes.
If people see that you are not able to sell a listing in a timely manner, then they will not want to use you as their real estate agent in the future, and your current clients are unlikely to refer any other clients to you in the future.
8. They don’t understand their target market
A very common reason why real estate agents fail is that they don’t actually understand their target market.
If you don’t understand who your target market is, then you won’t be able to attract them to your business.
The best way to understand your target market is to do some market research.
You need to find out who your ideal client is, what their needs and wants are, and how you can best reach them.
Once you have a better understanding of your target market, you can start creating marketing materials that appeal to them and start targeting them with your advertising efforts.
It’s also important to tailor your services to meet the needs of your target market.
If you’re not able to do that, then you won’t be able to attract them to your business.
9. Their customer service is poor
This should go without saying but real estate agents who don’t have the right systems in place to serve their clients in the best possible way are going to fail.
They need to have a system in place for handling client inquiries, scheduling appointments, sending updates, and following up after the sale is closed.
If they don’t have a system in place, then they’re going to be overwhelmed and will not be able to provide the level of service that their clients expect.
Poor customer service is one of the main reasons why real estate agents lose business.
In order to provide good customer service, you need to be organized and have a system in place for handling everything.
You also need to be responsive to your clients’ needs and always be available to help.
10. They’re working with bad agents/brokers
A lesser-known reason why real estate agents fail is that they surround themselves with the wrong people.
If you’re working with bad agents or brokerage owners, then you’re not going to be successful.
It’s important to choose your business partners wisely and make sure that you’re working with people who have the same goals and values as you do.
If you’re not able to do that, then you’re going to be at a disadvantage.
It’s also important to be careful of who you listen to.
There are a lot of people who are trying to give advice but not all of it is good advice.
In order to avoid this mistake make sure that you’re only taking advice from people who have your best interests at heart.
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11. They don’t have a good business plan
Why do most realtors fail? A lack of planning
If you’re a real estate agent in 2022 who doesn’t have a business plan, then you’re going to fail.
A business plan is essential for any business and it’s especially important for a real estate business.
Your business plan should include your goals, your strategies for achieving those goals, your financial projections, and your marketing plan.
If you don’t have a business plan, then you’re not going to be able to achieve any success.
You need to have a clear idea of what you’re trying to accomplish and how you’re going to achieve it.
Your business plan should be updated regularly and should reflect the current state of your business.
Make sure that you’re using it as a guide for your business decisions.
With a good business plan, you’ll be able to figure out what changes need to be made in order for you to succeed.
12. They’re not investing in themselves
Real estate agents need to be constantly investing in themselves and improving their skillsets. If they’re not doing that, then they’re going to fall behind.
The real estate industry is constantly changing and if you don’t keep up with the changes, you’re going to be left behind.
It’s important to not only stay current with the latest trends and technologies, but you also need to be learning new skills and develop new strategies.
If you’re not doing that, then you’re not going to be able to compete in the real estate industry.
The most successful entrepreneurs work more on themselves than they do on their businesses.
This is especially true for real estate agents because you literally are your business. Your success in business is solely up to you and how you show up for your clients so make sure that you are taking the time to invest in yourself and your skillsets.
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13. They don’t know how to sell houses
One of the biggest reasons why real estate agents fail is because they don’t know how to sell houses.
As obvious as this may sound, in order to be a successful real estate agent, you need to be able to actually sell houses.
Licensing courses and exams do not teach you how to sell houses.
In fact, most of them barely touch on sales at all.
This is a huge problem because real estate agents need to be able to sell in order to be successful.
Sales is a skill that can be learned but it’s not something that’s taught in licensing courses or exams.
If you want to be a successful real estate agent, then you need to learn how to sell.
Take the time to find a mentor in the business or to invest in some sales training so that you develop the skills you need to influence others and sell yourself as an agent and the properties that your clients may ask you to market.
14. They’re lazy and unmotivated
Another extremely common reason why real estate agents fail is that they’re lazy and unmotivated.
If you’re not motivated to work hard and put in the effort, then you’re not going to be successful in this industry.
The real estate industry is extremely competitive and if you’re not willing to put in the work, you’re going to get left behind.
It’s important to be motivated and driven to achieve your goals.
You need to have a strong desire to succeed and be willing to do whatever it takes to achieve your goals.
The life of a real estate agent is not easy. The percentage of real estate agents that make it is low, especially for first-year agents.
If you’re lazy and unmotivated, then you’re not going to make it in this industry.
A key to overcoming this challenge is by having a big “why”
This is why goal setting for real estate agents is so important. Real estate agents need to know how to set goals and be very clear on exactly why they are in the business in the first place.
If you know your “why”, you will be motivated to take actions towards your goal and have the discipline you need to stay consistent.
Friedrich Nietzsche said: “Those who have a why to live for can bear almost any how”
15. Their ego gets in the way
When an agent’s ego gets in the way of their business, it can often lead to disaster.
Many times, agents become so caught up in their own egos that they stop listening to others and start making poor decisions.
This can lead to them alienating potential clients, making bad deals and even losing money.
In order to be successful in the real estate industry, it’s important to be humble and have a client-first mentality.
When your ego gets in the way, you stop being able to work effectively with others and you put your business at risk.
If you’re not careful, your ego can ruin your business and cause you to fail as a real estate agent.
16. They Lack Self Esteem
Real estate agents need to have a lot of self-confidence in order to be successful in this industry.
They need to believe in themselves and their abilities in order to be able to sell houses and convince others that they are the best agent for the job.
If you don’t believe in yourself, then no one else is going to believe in you either.
This is why it’s so important for real estate agents to have a strong sense of self-confidence and belief in themselves.
Self-confidence is key if you want to be successful as a real estate agent.
A lot of industry gurus talk about taking action, but no one talks about what leads to action.
Self-esteem and belief is the only thing that leads to taking action.
Real estate agents who don’t believe in themselves and have low self-esteem are timid in their sales pitches, scared to pick up the phone to make cold calls, and are afraid to invest any money into marketing to bring them more business.
This is why real estate agents need to work on themselves and their mindset before they are able to do anything in business. If you don’t believe that you can close any leads, then you will never spend any time or money to generate leads.
17. They Quit
What is the most common reason why real estate agents fail? They quit.
There is a famous statistic that states that 87% of real estate agents fail.
That statistic, although technically true, is very misleading.
It is not that 87% of real estate agents fail, the truth is, 87% of real estate agents quit.
A lot of real estate agents give up too soon. They don’t see the results they want in the first few months and they give up entirely. Or, they get discouraged by all the competition and they decide it’s not worth it.
How long do most real estate agents last? Around 6 months.
There are simply way too many real estate agents leaving the business way too early.
Imagine if you had just recently graduated from high school and decided to go to college, got accepted into a university, then decided to quit 6 months into your first semester. How would your family feel?
They would probably want you to finish what you started after all the effort and money that was spent getting you to that point in the first place. At the very least, they would want you to persist through for at least a year or 2.
The truth is, real estate is a tough industry. It’s competitive and it takes a lot of hard work to be successful. But if you’re willing to put in the time and effort, you can be successful.
It’s important to remember that no one ever achieved anything great without taking a risk and going for it. Real estate agents who give up too soon never find the success that they are looking for.
It’s also important to remember that real estate is a business, not a way to get rich quickly. If you want instant results, then this isn’t the industry for you. But if you’re willing to work hard and play the long game, you can be successful!
Why do realtors quit? A lack of self-esteem and confidence.
A common question people ask is how much money can a real estate agent make when the truth is: however much they want to.
You can accomplish anything that you put your mind to, as long as you don’t quit. Instead of trying real estate for 6 months and then quitting when you aren’t instantly a millionaire, make a committed decision that you will succeed in this industry and work consistently until the day you have manifested that success into physical reality.
The law of compensation states that the work you put in today is guaranteed to show up as rewards at a later time.
Real estate agents don’t fail, they experience temporary setbacks in their business then quit.
The secret to not failing as a real estate agent is actually quite simple: Just don’t quit until you have succeeded.
Bottom Line: Why do real estate agents fail
The real estate industry is not easy. Many hopeful agents join the industry just to realize its realities 6 to 12 months later and end up quitting.
One of the best ways you can improve your income as a real estate agent in 2022 is by starting out on the right foot: believing in yourself and improving self-esteem.
If you lack self-confidence or have low self-esteem, then there’s no way that you’ll be able to succeed as an agent.
This doesn’t mean that all hope is lost if these two qualities aren’t present; rather, it means that now would be the perfect time for improvement so that when success does come knocking at your door, you’re ready for it!