In our last blog, we discussed some of the best practices that realtors can implement to better their business in 2018. As a pretty autonomous career, your clients have the freedom to tweak and customize their sales strategies as they wish. However, there is a learning curve in every industry, and real estate is no exception. Rather than have them learn the hard way, share the following information with them to prevent them from making costly rookie mistakes. Next, protect their operation with a Real Estate Professional Liability Insurance policy.
Failing to have supplemental income.
What often kills new real estate practitioners is the concept of lag time. When you sell a house, you typically don’t get paid when the contract is accepted. The average contract is written for 45 days. In a perfect world, you would get your commission check 45 days from the date it was accepted. In the real world, you don’t always get paid on time. A successful real estate practitioner needs a line of credit and a financial cushion of three to six months of personal expenses to survive. You also need passive income — or income coming in from investment property so that you don’t have to be desperate to close a deal, suggests Realtor.
Not creating a business plan.
As we mentioned before, your clients are essentially in business for themselves. That means they have to create a feasible business plan on their own, as well. Without a clean plan, your clients are less likely to succeed and have a plan for things that don’t go as planned. Templates and ideas can be found online.
Not using resources.
Your clients have so many resources available to them, including online organizations, colleagues, top performers in their area, and the brokerage they work for. If they aren’t utilizing resources, they won’t get tips and insights that can better their practice. Autonomy doesn’t have to mean solidarity.
Learn from mistakes.
It takes a level of self-awareness to realize that they’ve made mistakes in the past. Your clients aren’t perfect, but that just means they can reflect on their past and make the necessary changes to improve their business and to prevent burnout from happening right away.
Without being proactive about improvement, realtors run the risk of being in their own way. Share this information with them so that they can make the best out of 2018.
About Lionheart Insurance Services
At Lionheart Insurance Services, we are experts in the hospitality insurance for the retail community. With service in almost every state nationwide, we pride ourselves on providing comprehensive coverage at affordable rates. For more information on our policies, contact our knowledgeable experts today at (702) 834-8140.