What To Expect in Your First Year as a New Real Estate Agent
As a new real estate agent you are excited about the possibilities ahead as you enter your first year in the industry. You may also be feeling a bit tentative as the market continues to shift from where it was even just a few months ago. But for those who really want to succeed as an agent and who are willing to put in the work, there is an abundance of opportunities. By creating a strong foundation in your first year, you will set yourself up for success in your second year and beyond.
Follow these tips practiced by experienced real estate agents.
Create a Budget and Financial Plan
For the first few months, you most likely will be bringing in little to no income, so creating a financial plan is a must.
- Set your goal of how much you want to earn (e.g. $75,000 a year).
- Add your expenses into your tracking system. Include things such as:
- Licensing Fees
- Brokerage Fees
- Office Expenses
- Marketing Expenses
- Living Expenses
- Miscellaneous (add in a generous amount here to cover unexpected expenses)
You also need to plan how you will pay your expenses until you get your first commission check. This may be a family member or other person that offers financial support. Or it may be income from a second job.
Knowing these numbers will help you determine how much you need to make before you see any profits.
Determine What Type of Customers You Want to Serve
Things to consider include:
- The physical area you are targeting (e.g. cities are normally more expensive than suburbs).
- The niche market you may be interested in (luxury markets, second homes etc.).
- Competition from other agents. (Established agents might have the edge initially but with superior customer service and a commitment to the fundamentals, you too will succeed!
Prioritize Lead Generation Every Day
- Everyone you know is part of your sphere of influence (i.e., a possible customer.) This includes family, friends, people you do business with, people you know from community groups you are involved in, etc.
- Plan to prioritize a portion of every business day to reach out to clients and leads through calls, notes or visiting with small, thoughtful gifts. It may feel awkward at first, but they will never know you are in real estate unless you tell them!
Create and Stick to a System
- Treat your business like a business. Put structures and systems in place to keep on task.
- A customer retention management (CRM) system can be beneficial. A great CRM will help you stay organized, set goals and tell you what needs to be done daily, monthly and yearly to reach those goals.
Reach Out for Support
- A mentor, coach and/peer can offer support to cheer you on when things are going well and keep you motivated when you are down. They will help you stay accountable.
- Other experienced agents can also offer strategic advice and support.
Never Stop Learning
Now more than ever, you need to stay abreast of changes in the market so you can be the resource your customers need. Real estate agents who get training make more money than those who don’t. That’s because a great training program teaches you the fundamentals and gives you the tools to be prepared for any situation. In fact, Buffini & Company members who take the 100 Days to Greatness® course make on average $369,400 a year, 10X the national average! For more information visit buffiniandcompany.com/training/100-days-to-greatness.