If you are starting your career as a real estate agent, you must not bear the misconceptions discussed below:
1. After receiving the mail with new licenses, majority of the new real estate agents become more interested with the process of picking the Real Estate Brokerage that they will be a part of than thinking about their own business strategies. This happens mainly due to the fact that these agents have never worked for themselves; they have always functioned as employees. These agents tend to believe that stepping into the business of real estate is like getting into a new company as an employee. As a new real estate agent one must understand that whatever things he will be doing from now on will be based on his own decisions. Real estate agents need to set their own goals, identify the kinds of services they will be able to offer, judge the market conditions, decide on the target customer i.e. to whom they are planning to sell the properties and also decide on the budget, marketing plan and funding.
2. New real estate agents often lack the skill of building a good team. There’s a common saying that the greats in the world of business always stay surrounded by individuals who are wiser than them. A real estate also agent needs to build a big team for closing transactions successfully. The team includes Lender, Listing Agent, Insurance Agent, Buyer’s Agent, Appraiser, Title Officer, Inspector and more. Real estate agents must refer their clients to the people or services they prefer; however, they must choose only the services that will be assets to the transactions. If a real estate agent fails to pick the right services i.e. if he fails to build a productive closing team, the deal may suffer from several disruptions. One combination that can spoil a real estate deal is the combination of a real estate agents and a mortgage broker, both of whom are new in this field.
3. Often people tend to believe that becoming a real estate agent do not require much investment. If you starting you career as a real estate agent, you must have enough capital to invest during the initial stages of the business. The first step of becoming an agent i.e. getting the license will alone require you to invest $700-$900. The expenses are even higher once you get the license. You will need to spend a big sum of money for getting armed with the essential tools of this trade. The Most expensive tool of them is getting access to MLS or multiple listing services. You will also need to purchase a computer, a mobile phone and a real-estate friendly vehicle.