10 Biggest Mistakes New Real Estate Agents Make

Nobody wants to make mistakes, but they can be unavoidable at the start of your career.

If you dream of building a successful real estate career, there are some common pitfalls to avoid. Here, we share the biggest mistakes new real estate agents make and how to avoid them.

1. Not Lead Generating

Lead generation is one of the backbones of a successful real estate career. By not actively generating leads, you miss out on potential clients and risk having an empty sales pipeline.

Real-Life Scenario: Missing the Lead Funnel

Imagine starting out and deciding to put off lead generation because you think you need to learn more first. A few months in, you find yourself with no prospective clients and an empty calendar. The truth is, by the time you realize you need leads, it's often too late to fill your pipeline quickly.

Solution: Begin lead generating as early as possible—even while you're in real estate school. Create an engaging website, run ads, connect on LinkedIn, and reach out to your sphere of influence. The more consistent your lead generation, the better prepared you will be when opportunities arise.

2. Being a "Secret" Agent

Leave secrecy to actual secret agents. In real estate, you need to be visible and present in your community to build familiarity and attract clients.

Real-Life Scenario: Losing a Client to Visibility

A new agent hesitates to share their profession with friends or on social media, thinking it's too "pushy." A friend ends up using another agent for a home purchase simply because that agent was vocal about their business.

Solution: Put yourself out there consistently. Attend community events, engage in local businesses, and share your career updates. By staying top of mind, you'll be the first person clients think of when they need a real estate agent.

3. Spending Your Money Recklessly

The real estate industry has its ups and downs, which is why proper financial management is crucial for long-term success.

Real-Life Scenario: Feast and Famine

An agent lands a few early sales and starts spending their commissions on luxuries, assuming the money will keep rolling in. A few months later, the market slows, and they struggle to pay their bills.

Solution: During periods of plenty, set aside a portion of your income for savings, retirement, or investing. This financial cushion will support you during slower times, reducing stress and ensuring your business can continue to grow.

4. Poor Client Communication

Communication is key to client satisfaction in the real estate industry. When clients feel left in the dark, it leads to frustration and mistrust.

Real-Life Scenario: Ghosting the Client

An agent closes a deal but fails to keep the client informed throughout the process. The client becomes frustrated and, even though the transaction is successful, decides not to refer the agent to others.

Solution: Set clear expectations for communication. Agree on how often you'll update them and which channels you'll use. Scheduling regular check-ins—like a weekly update—can help keep clients in the loop and feeling valued.

5. Not Using Your Brokerage Resources

Your brokerage offers valuable resources like in-house software, information portals, and experienced mentors.

Real-Life Scenario: Learning the Hard Way

An agent ignores the training resources offered by their brokerage and tries to figure everything out independently. They make several mistakes that could have been avoided with the proper guidance.

Solution: Take advantage of your brokerage's resources. Observe experienced agents, learn from their successes and mistakes, and leverage available tools to stay informed on industry trends.

6. Just "Winging" It

Proper planning is crucial for success. A lack of a clear plan will lead to wasted time, energy, and missed opportunities.

Real-Life Scenario: No Plan, No Growth

An agent starts their career without a clear business plan, hoping to "figure it out as they go." Months later, they realize they have no direction or strategy for generating steady business.

Solution: Treat your real estate career like a business. Create a detailed, written business plan with defined goals and strategies to keep you on track and motivated.

7. No Goals

Goal setting goes beyond random aspirations—it involves setting specific milestones and planning your career trajectory.

Real-Life Scenario: Missing the Mark

An agent sets an unrealistic goal of closing 10 sales in their first month, but ends up discouraged when they don’t achieve it. They start doubting their potential in real estate.

Solution: Set realistic, achievable goals. Break larger goals into smaller milestones—for instance, aiming to close your first sale within two months. This approach will help maintain motivation and build confidence as you achieve each milestone.

8. Never Learning Anything New

The real estate market is constantly evolving. Staying updated with industry trends is crucial for maintaining your edge.

Real-Life Scenario: Falling Behind on Trends

An agent doesn’t keep up with the latest market technologies or trends. Eventually, they lose potential clients who prefer tech-savvy agents with up-to-date marketing strategies.

Solution: Be a lifelong learner. Stay informed about industry updates, learn new skills, and seek out information about emerging trends. The more you learn, the more value you can bring to your clients.

9. Thinking You Have to "Pay Your Dues"

The idea that you need to "pay your dues" by taking on low-value work or accepting less than you deserve can hold you back.

Real-Life Scenario: Undervaluing Your Worth

A new agent agrees to a lower commission split than they deserve, thinking it's part of paying their dues. They end up feeling unappreciated and resentful, which affects their motivation.

Solution: Know your worth from the start. Negotiate for a fair commission split and don’t be afraid to advocate for yourself. You deserve to experience success regardless of how new you are to the industry.

10. Not Having a "Why"

Your "why" is the reason you became a real estate agent, and it will keep you going even when the road gets tough.

Real-Life Scenario: Losing Motivation

An agent hits a rough patch and begins to doubt their decision to enter real estate. Without a strong "why," they decide to quit after facing a few setbacks.

Solution: Identify your "why" early on. Whether it’s financial freedom, helping people find their dream home, or building a legacy, a strong purpose will keep you resilient during tough times.

Final Thoughts on Avoiding Mistakes

Avoiding these common mistakes can make a huge difference in shaping your real estate career.

Beyond simply avoiding pitfalls, taking proactive steps to develop good habits and skills will help you stand out in the industry.

Remember: nothing can stop you if you refuse to let anything hold you back.