10 Reasons Why New Real Estate Agents Quit Their First Year

‍‍If you're not careful, you can become a statistic—an agent who quits real estate within the first year. The last thing you want is to earn a California real estate license just to leave the industry a few months into your career.

If you're unaware of the challenges that come with being new to real estate, it can happen to you.

The best way to prevent this is by understanding what to expect and learning some effective strategies to stay on track.

Here are 10 reasons why most new real estate agents fail in their first year and how you can avoid the same fate.

#1: Lack of Lead Generation

Lead generation is the lifeblood of your real estate business. If you're not diligently working to generate leads, you won't have any business. When you're new to real estate, you need to create opportunities from scratch.

How to Avoid It: Create a game plan. Decide who you'll contact—focus on niches like first-time homebuyers or renters, or network with investors. Determine how you'll generate leads, whether it's through cold calling, door knocking, or social media marketing. Consistent lead generation is key to building a thriving business.

#2: Lack of Network Growth

Most new agents begin by growing their business through people they already know, known as the "sphere of influence." While this is a great starting point, it's important to reach beyond this group if you want your career to progress.

How to Avoid It: Step out of your comfort zone. Make a habit of talking to new people wherever you are. Expanding your network and growing your database will help you build a steady flow of clients.

#3: Poor Self-Management

Real estate offers freedom—no boss, no set schedule. However, this freedom can easily lead to poor productivity if you lack discipline.

How to Avoid It: Practice good self-management by creating and following a schedule. Incorporate activities like lead generation, network building, and database growth into your daily routine. Time blocking and effective time management can help you achieve more in less time.

#4: Lack of a "Why"

Some people enter real estate thinking it's all glamour, inspired by TV shows featuring agents selling multi-million dollar homes. However, if your motivation is simply to "make a lot of money" without a strong work ethic, real estate may not be the right career for you.

How to Avoid It: Know your "why." Understand why you wanted to start a career in real estate. If you genuinely want to help people and are willing to put in the work, you'll be more likely to succeed.

#5: Poor Budgeting

Many new agents run out of money in their first year because they fail to manage their finances properly. Budgeting is critical to staying in the game.

How to Avoid It: Lead with revenue. Avoid spending money on unnecessary items like paid leads. Set aside funds from your first deals to cover living expenses for the months ahead. Financial planning will help you sustain yourself while you build your business.

#6: Being a "Secret" Agent

One of the most common mistakes new agents make is not letting people know they're in real estate. Real estate is a numbers game—the more people who know what you do, the more opportunities you'll have.

How to Avoid It: Spread the word! Talk about your career with everyone you meet, use social media to promote yourself, and let your excitement show. Don’t be a "secret agent."

#7: Not Setting Goals

Goal setting gives you direction and helps you focus on the actions that lead you to success. Without clear goals, new agents often waste time and energy.

How to Avoid It: Set SMART goals—Specific, Measurable, Attainable, Relevant, and Time-bound. For example, instead of setting a vague goal like "make calls every day," set a SMART goal: "Make 25 cold calls a day to secure 1 appointment a week." This gives structure and clarity to your actions.

#8: Fear of Failure

Fear of failure is common, but it can stop you from moving forward. Many new agents quit in their first year because the fear of rejection becomes overwhelming.

How to Avoid It: Understand that rejection is not personal. People aren't rejecting you—they're simply not ready to buy or sell at that moment. Separate yourself from the rejection, and keep pushing forward. True failure comes from inaction, not rejection.

#9: Negative Attitude

Attitude is everything. A negative attitude can lead to giving up when challenges arise, while a positive attitude helps you stay motivated and engaged.

How to Avoid It: Embrace the entire process of becoming a successful real estate agent. Be "all in" when it comes to learning, training, and generating leads. A positive attitude will keep you focused and committed.

#10: Self-Doubt

Self-doubt is another killer of real estate careers. When things get tough, new agents often start questioning their abilities.

How to Avoid It: Remember that tough times are part of the journey. Be confident in your training, skills, and knowledge—the very things that helped you get your real estate license in the first place. Combat self-doubt by focusing on the progress you make each day.

#11: BONUS TIP – Choosing the Right Training

If you're not yet licensed, choosing the right real estate school can make all the difference. A strong foundation will help you launch your real estate career successfully.

How to Avoid It: Choose a real estate school that provides not only licensing courses but also ongoing support and training. For instance, CA Realty Training offers experienced trainers who share real-world examples and act as unofficial mentors, helping you apply concepts effectively. Resources like CA Realty Training's YouTube channel provide on-demand learning and valuable insights.

Final Thoughts on Why New Real Estate Agents Quit

Avoiding these common pitfalls can prevent you from becoming a statistic and set you up for an amazing first year in real estate. Knowing what challenges to expect is part of the battle; having the right tools to overcome them is what will set you apart.