Success equation for new realty agents
It can be difficult for new agents to stand out in the industry with the record number of agents joining it over the past few years.
According to Realtor.com’s #ThrivePastFive survey, only 4 out of 10 new real estate professionals feel confident about a long-term career. Realtor.com surveyed over 2,000 agents in order to get insight into their top challenges, and to discover top tips to help new agents succeed past year five.
The #ThrivePastFive study identified four components of the “equation to success” for new agents as part of its goal to help them succeed. These factors include working full-time, finding a mentor and using backup funds to get started.
According to the #ThrivePastFive survey, 90% of new agents who are successful consider themselves to be working full-time.
Agents often start their career in real estate because they want more flexibility in their work/life and more control over their schedule. New agents who are looking to make a side hustle out of real estate may have trouble finding work.
Real estate success requires a full-time commitment. Agents should be available and willing to work long hours to find clients, build relationships, schedule appointments, have important conversations, and be the expert in their local community.
Mentorship is the second key to agent success. Mentorship is a key component of agent success. 68% of new agents report that mentorship is beneficial — they have someone to turn to for support, guidance, education, and training.
Mentorships are not something that will just happen to a new agent. They must actively seek out mentors who they can trust. They should look for successful agents in their community or brokerage who are willing to mentor them or give guidance. A brokerage that offers resources, support, and training can be a great place to start a new career.
Financial stability is also a key factor in the success of new agents. 68% of them have backup funds that they can use to get started.
Real estate can be difficult. It can take months for a new agent to earn their first commission check. However, they still need money in order to market to clients and generate leads. Agents should be prepared to not only work hard, but also to fail. Real estate success requires a lot of planning and forethought. Backup funds are an important part of that. For the unlikely event that something goes wrong, new agents should be prepared.
Real estate agents need to be entrepreneurial. Agents operate as small business owners and should be open to reinvesting in their business. Marketing spend is one example of this. According to the #ThrivePastFive survey, 47% of new agents who are successful spend more than $3,000 in marketing.
This number could leave new agents feeling a little sticker shock. 70% of new agents reported that they spent less than $3,000 annually on marketing, but 64% of those with 11+ years’ experience spent $3,000 or higher each year and 46% expect to spend $5,000 or more. Agents with more experience continue to hustle and invest in marketing to bring in new clients. Newer agents should follow their example.
This type of marketing spend is also required for quality leads. Although social media is widely used and free, it was only fourth in the study for lead generation sources. Agents were also struggling to convert social media marketing to actionable leads. Agents can get better leads by spending more money on marketing.
Although there are common problems across all levels of experience, there are steps that new agents can take to get past year five. This formula to success can help new agents excel in their field.
The #ThrivePastFive study by Realtor.com provides valuable insight into how more experienced agents set themselves up for success. Click here to download the full report. It contains many more insights.