Starting your own real estate business requires a lot of hard work and commitment. How can you avoid the pitfalls that leave so many small businesses languishing after a few years? Start by developing and harnessing your real estate business skills. To help you out, we’ve outlined seven business tips for new real estate agents.
1. Know how to manage your money
First, you need to have good money management skills—particularly in your first year after earning your real estate license, when sales may be slow. Consider the money you need to finance your real estate business as well as the money you need to live, and try to keep a healthy balance. Carefully track your earnings and spending, and remember to put some money aside for income taxes.
2. Use technology to your advantage
The second item on our list of business tips for new real estate agents requires some tech savvy. Your online presence, your social networks, your website—and its ability to generate leads—are all tools of the trade that can help you gain new prospects and succeed as a new real estate agent.
3. Put on your analytical hat
Part of your daily work will include analyzing information to produce accurate and reliable information for your clients. Just having the numbers on hand is not enough. You have to have strong analytical skills that you can apply to contracts, loan agreements, inspection reports, and sales numbers to help your clients make the best decisions.
4. Learn to synthesize info and data
Your ability to synthesize information and data depends on your analytical skills, as well as your math skills. To produce reports for your clients and to manage your personal finances, you’ll have to master both. You’ll also have to analyze market data for your clients. Real estate continuing education is the key to improving your market knowledge, staying up-to-date on various real estate laws, and learning ethical guidelines.
5. Develop a system for generating and managing leads
The fifth item on our list of top business tips for new real estate agents involves lead management. Real estate isn’t a storefront business where passersby can become loyal customers. You have to go out and seek new clients. Your success depends on your ability to generate and manage leads. As a new real estate agent, you’ll learn many innovative and creative ways to prospect for leads. Build your skills constantly, and keep thinking of new ways to grow your pipeline of prospects.
6. Develop risk management skills
Your business success is closely tied to your ability to manage risk. When the market is down, when you’re managing the details of real estate transactions, you’ll often have to take a step back, analyze the situation, decide whether to go forward, retreat, or stand pat, and come up with a clear plan.
7. Manage your time wisely
The final item on our list of tips for new real estate agents revolves around time management. As a real estate agent, you’ll need to master this skill and ensure that your time is well managed. Maintaining a detailed calendar and keeping a regular work schedule will help tremendously.
More resources and tips for new real estate agents
Beyond these seven business tips, there are many other skills, traits, and resources that can help you launch a successful real estate career. Browse our previous blog posts to learn more about the traits of a successful real estate agent, how to develop a real estate business plan, how to master communication, and more tips for new real estate agents.
Ready to begin an exciting career in real estate? Sign up for real estate license education courses here.