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Exposed: Top 12 Pitfalls That Destroy Real Estate Careers · The Real Estate Agent Playbook

0:00
We're gonna start this one a little bit differently today.
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I am so sick and tired of the agent failure rate.
0:07
All the stuff's changing.
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The truth is, is that agent success has always been an issue.
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And now that we have the commission lawsuits and more people are talking
0:16
about exiting the industry, that does not have to be your story.
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And if you can avoid these 12 pitfalls that I'm going to talk about today,
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You will absolutely make it if you feel like you need some support and somebody
0:28
to help you avoid these pitfalls.
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That's my goal That's what I do every single day for the agents in
0:33
my organization, and I am here to help you and be on your team So like
0:39
comment subscribe do all the things but let's get into this as we move
0:44
into This new age of real estate.
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Let's not take the failure rate with us like so many are predicting
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What's up guys?
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I'm Jeremy Kane with Real Estate Agent Playbook.
0:59
This one is something I am extremely passionate about.
1:01
The reason I do what I do at EXP with my organization is to change the failure
1:07
rate in the real estate industry.
1:09
I know that everyone can succeed at this business with the right
1:13
dedication, consistency, work ethic.
1:15
If you haven't been following for long, please like, comment, subscribe.
1:19
I recently, Released a foundations builder course and I am also releasing
1:24
a live webinar here in the next couple of weeks, comment webinar.
1:28
If you are interested in that, that webinar is titled from buyers
1:32
agent to listing agent in 30 days.
1:34
I am absolutely passionate about this and follow along on the podcast.
1:38
Anywhere that you can find social media, I'm there and I'd be happy to connect
1:44
with you as the REagent playbook.
1:46
So let's get into this.
1:47
So first and foremost, we just have to make a mindset shift and a lot
1:51
of these things are mindset based.
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However, It is very easy to make excuses especially in the here and
1:58
now with what is going on with all the commission lawsuits It's maybe
2:02
going to be a little bit tougher to uh get compensated as a buyer's agent.
2:06
We'll see how that plays out That's not what this video is about, but it is
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something that is playing over and over and over again Agent's heads, especially
2:14
if you're struggling, especially if you're struggling with the tighter market
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volumes, you know sales Transactions down 30 40 percent The good news is volume
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is up So that is allowing for a little bit of a boost when you do close the
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transaction Typically the sales price is higher and as we're kind of in this
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weird no man's land with commissions, they still have seemed pretty, stable
2:37
and traditional with the seller offering some sort of compensation on that.
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But, let's talk about these pitfalls as we go.
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First and foremost is lack of goals and ambition and planning.
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This is something that is 100 percent accurate.
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I will tell you if you are a new agent, your goal is probably to make six
2:55
figures, break that six figure mark.
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That is kind of the port of entry for real estate agents.
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I have talked to hundreds of thousands of agents, coached hundreds of
3:04
agents, and this is always something that is the first step, right?
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That's, we want to get to that six figures.
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Granted, it's not as worth as much as it used to be, but that still
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seems to be the measuring stone.
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you know, right of passage, so to speak in the real estate industry.
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And so if you're having those goals and you just throw it out there, I want to
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make six figures, but you don't really look into, okay, how many transactions,
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what's my average price point.
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You must reverse engineer your goals.
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And if you need somebody to do that, I'm always available.
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Book a call with me.
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I'd be happy to look at your market, find that average price
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point, find your success rate.
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And you know, absolutely get those goals at least on the whiteboard
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because having these goals and having this direction is great.
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But if you don't know what a hundred thousand dollars looks like in
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the form of closed transactions, you don't really have a goal.
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You just kind of have a dream out there, which is great.
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I love dreams.
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But when we're talking short term annual goals, we need to have an actual plan
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and then what we'll do is we'll break those goals down into, You know, 12
4:06
week years, you know, I'm a fan of that.
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So breaking down in a quarterly goals and as we continue to move and
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improve and chop and change what we are doing, not our goals to get there.
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And so that is what I see first and foremost is, yeah, I just, you know,
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it's, I'm a new agent, so I don't want to, you know, shoot too high.
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And the truth is, if you're not shooting high, you will absolutely,
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probably not hit the mark.
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And you know, I'll never forget, one, one day I was sitting in a coffee shop.
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It wasn't even close.
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And I said, I want to make 500, 000 in GCI, right?
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I wasn't even close to that.
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Wasn't even half that, that year, right?
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Two years later, I reached that goal because it was on the board.
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It was in, it was in my mind.
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Didn't reach it the first year.
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I was pretty close.
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The second year I did reach it and have reached it since.
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So that is something that you can absolutely.
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Change your focus, change your goal.
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And when you speak something into existence, it absolutely can happen.
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The next is inadequate training and education.
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I tell agents all the time, if you're not out with clients, you need to be,
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you know, at least pouring into some form of education into your business, some
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new lead generation things, some tactic.
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Like I said, I just released a course based on putting pillars of business
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together, so we are taking a tactical strategic approach to building business.
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The cool part about the course.
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Is that you can actually choose your own adventure, like those chapter books
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that we used to read, back in the day.
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Those were big when I was young, so that's aging myself, I guess.
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But, as we kind of develop these strategies and what's going on, we
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need to make sure that we are getting education and, you know, learning
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everything we can, especially, you know, since typically, a lot of the things
5:48
and the strategies we're using have to do with technology and modernization.
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That changes every day, right?
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ChatGPT changes every day.
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And so this is something that you can certainly wrap your head around.
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And then let's not forget that there is a market expertise piece of this.
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You need to study your market.
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You also need to study your tools, right?
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I talk this all the time when we're talking about know your MLS, know
6:11
how to use that, know how to use your contract software, know how
6:13
to use all of the things, right?
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Is If you aren't sharpening your tools, if you aren't learning how to use your
6:19
tools, you are essentially like me handing my 16 month old child a hammer
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and saying, go build a house, right?
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You have to use your, your tools in order to have success in the business.
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And this is a massive marketing business.
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I get that, but we also need to use the tools on contracts, getting people
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under contract, understanding the market, how to do a market analysis
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and all the things, and then once we're under contract, there's a whole.
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Another slew of things that you can be working on and getting educated about
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becoming the expert while you're waiting.
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For your marketing, efforts to bear fruit.
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The next is one of my, buddies and good friends, Lewi Gault's
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favorite, time management.
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Right?
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We manage our time poorly.
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And a lot of times, especially this day and age with these things at, at
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our beck and call, social media, right?
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I call it death scrolling and I, One of those people and I do it and I'm
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not perfect at this, but if we can manage our time more appropriately,
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we can be more efficient, right?
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All of the coaching gurus start with, you know, I still remember when I was doing
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the buffini program and you know, power hour in session, put this on your wall,
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like, eliminate all distractions, right?
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It used to be as easy as putting something on your office door, not quite anymore
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with all the technologies and things that we are surrounded with that are
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constantly demanding our attention.
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And so that time management is huge.
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Start with general, you know, time blocking.
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The power list is also a very good tool that we use at the Wolfpack, you know,
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within our organization, pretty much up and down to get five income producing
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needle moving activities done a day.
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And if we can do that consistently day over day and continue to win the
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day, like Andy Frisella, who created the power list, talks about, then we
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absolutely can build a lucrative business as long as you're doing the right things.
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Right.
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And that's the hard part is, okay, what are the things?
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Right?
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Am I doing social media marketing by scrolling and, you know, liking
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and sending people DMs and that?
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We'll see.
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Depends on how intentional you are.
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But a lot of times we get sucked into this news article.
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I'm a big sports guy, so a lot of sports things and, you know, funny clips from,
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Nikola Jokic talking to the media.
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All of those things kind of come up.
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So, that time management is something that never goes away.
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But it usually is extremely lacking when you are not being successful in managing
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your time appropriately, prospecting appropriately, spending time with
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your clients appropriately, and so on.
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Next is insufficient marketing and branding.
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This is absolutely huge, very interesting.
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My good friend Mike Sherrard, an absolute guru when it comes
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to marketing and branding.
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But as agents, sometimes we, we don't have that personal brand.
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We're, we're riding for the brand on, on our sign, our brokerage or whatever.
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And as we move into this new age and this new kind of I don't know why it's
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new but Your unique value proposition and sales should have been something
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you talked about day one All the time because we always want to provide value
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the more value provide better Results you will see but if you can build that
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personal brand and have that personal brand and have this You know, J.
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K.
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Holmes on the heart, you know, that kind of stuff and build that
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personal brand and build that brand awareness and what is going on.
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There's a million things you can do to build brand awareness.
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One of the cheapest Facebook ads you can run for a dollar a day is a
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brand awareness ad that will reach a custom audience that you can upload.
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So only the people that you want it to reach within your sphere will
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be reminded of your brand and get.
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Accustomed to your brand and so I think branding is one of the most underrated
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pieces in real estate because the old guard had you know the brokerage branding
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and all that you still have to follow the state laws You still have to have that
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but you can provide a brand right you can provide an experience through that brand
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That's different or an add on to what your brokerage Is offering and so that's
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absolutely massive again Make sure you're following your state laws make sure that
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you're you know branding on your signs and everywhere else is Is up to date, but
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this is absolutely something that we can really focus on to make our lives a lot
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easier Okay on to on to some of the nitty gritty failure to generate leads This is
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something that a lot of people talk about a lot of people get sucked into being on
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a production team Because they need leads the production team's providing leads.
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I promise you that I could provide you a list of 200 people to call
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That probably have a heartbeat That, you know, could be a potential lead.
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They're just providing you lists of people to dial that maybe
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clicked on a house someday.
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They got it from here.
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They got it from there.
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And so you have to understand that lead generation should be a
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personal conquest, especially if you're not on a production team.
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And that's something that you can absolutely do.
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I train my agents in my organization and help them understand that.
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I don't care how many leads you have.
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I care how many conversations you have.
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If a lead is a phone number, a name, and an email address, then that's, that's
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not really something that I see as a high potential to convert a conversation
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about real estate, probably a lot higher.
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You know, percentage to convert, but also a lot higher percentage to maybe
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turn into a transaction, whether it's that person or somebody they talk to.
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So the more conversations you have, the more value you bring to
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those conversations before just spewing real estate all over them
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are absolutely key to your success.
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As we move forward in this, you know, business building opportunity
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set, you must have leads to survive.
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Let's take that another Step we need to be having conversations with humans and
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people that have the ability to buy or sell real estate in order to survive.
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And so we get so focused on how many leads are we getting
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and what's our conversion rate.
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What if we step back and we said, okay, I'm going to have intentional
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conversations with intentional target avatars to make sure that
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I'm providing the most value.
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And so they know that my brand and everything that I'm about is in the
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real estate space and I can help them when the time comes or when anybody.
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You know, mentions real estate to them.
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That's a whole different conversation.
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So let's start generating conversations surrounding real
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estate and what our passions are and less about lead generation.
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Now, once we have the leads, this is where they really fall off, right?
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Failure to follow up.
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And this is because most of the time when you're provided
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these lists by whoever or these.
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You know, old Facebook leads or these old Zillow leads or whatever they are.
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It's really disheartening to call those people, right?
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Because half the time they're like, I never gave you my information.
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They forgot.
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They had a few cocktails that clicked on the house, typed in
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their information, saw the pictures and never remembered it again.
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Whatever that is, it doesn't matter, right?
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But, since the success rate is so limited, people fail to follow up.
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And so, if we're taking these conversations and we're putting them
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into a CRM, and we're talking about the key points and the value, and so we're
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not having the same conversation over and over and over again, we're having a
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conversation, then we're elaborating on that the next time, we're referencing
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back, we're advancing the conversation, so it's actually an entertaining, engaging,
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You know relationship that we're building here then that makes the follow up a lot
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easier So we need to organize through a crm and make sure that we are following
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up right just while I was doing this video I thought of somebody who I talked
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to last week who I hadn't set up a search for there are little ways out But
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that's a failure to follow up on my end.
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We need to get that search out to them.
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We need to get that search ready to go because that then becomes my follow up.
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Right?
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They're getting an email every time that house hits the market that fits their
14:00
criteria and they're reminded, right?
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Half of them think I'm personally sending it.
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So you have to understand that that is a key point.
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How are you going to follow up?
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Where you can actually do it and be consistent and make sure that
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nothing slips through the cracks.
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So there's nothing worse than having, you know, scrolling desk,
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scrolling on Facebook one day and seeing somebody that reach out to you
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six months, a year, 18 months ago.
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And now they're standing in front of a house that they just purchased
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with another real estate agent.
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So that followup is absolutely key.
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And when you're doing it more organically through conversations and DMS and things
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like that, Make sure you keep good notes and make sure you are consistent
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with that followup and strategy.
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Next is poor customer service.
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A lot of this relates back to lack of understanding of the market,
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lack of understanding, you know, what the process is and all of that.
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So I get it as new agents, you have to get through the process.
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You have to do it.
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Some people have to do it to learn it.
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Well, let's do as much training and get in front of as many title people and lenders
14:58
and industry partners as we can with their education and what they're teaching.
15:03
Because we have all the nuts and bolts, the contracts and all of that, that
15:06
obviously we're required to know, but we also have a lot of different
15:09
variables that come into play.
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And so the more and more you can provide that information and provide that
15:16
value, And be a resource, the better your customer service will look to
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the consumer or the buyer or seller.
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And so, customer service starts and ends with communication.
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And a lot of times we don't know what's going on as new agents
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or we haven't been through this.
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I will tell you that the reason I love this industry is that no day is the
15:36
same and no transaction is the same.
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There's not one transaction that is exactly like another.
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There's always something that's different.
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So.
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Take that with a grain of salt and understand that you can surround
15:47
yourself with people and resources that can help you when you get into that.
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Don't do a lot of fake it till you make it when it comes to the
15:54
legalities of contracts in this business, but get the answers, right?
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Be willing to say, ah, let me look into that.
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I'm not sure about that.
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And then communicate the answer to them.
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And that's all people want.
16:06
There's no way that you can know everything all the time.
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There's no way that Google has all the answers.
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And that's the human touch piece that we talk about so much as being a
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part of what we're experiencing here.
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Lack of adaptability.
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This is going to be a big one, probably the biggest one.
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As we move through these commission lawsuits, you must be adaptable.
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You must change.
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And a lot of agents that fail just refuse to change, right?
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They're going to continue to bang their head against the wall
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to, you know, get YouTube leads.
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They're going to focus on that or they're going to focus on the Zillow
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leads and they feel busy because they're driving around town at rush
16:38
hour every single day to show houses to people who just clicked a button and
16:42
have no business buying houses, right?
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That's, that's the thing.
16:46
Like you have to step back and you have to adapt.
16:48
You have to find the winners in the market.
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You have to understand who's, who's a good time to buy, what's a good time to sell.
16:53
And you need to be a resource for those people when that happens.
16:57
So make sure you adapt when you have to adapt to a contract change, or you have to
17:01
adapt to, you know, a new commission rule or, you know, buyer's agency agreement
17:06
or whatever you're, you know, adapting to in your market regarding the NARA
17:09
lawsuits, just adapt and figure it out.
17:12
When I look at change like that as a newer agent with less experience, I see
17:16
an opportunity because I'm no longer, you know, way behind this person because
17:20
maybe I'm here and they're here, but now they've never had this conversation
17:24
about the buyer's agent commission or, you know, whatever comes about, right?
17:28
Certainly people have had that conversation, but, when things
17:31
change, it's not practiced.
17:33
It's not, You know, constant.
17:35
And so once it does change, then you can dive back in and absolutely
17:39
level up the playing field, right?
17:41
So go all in, understand what's going on, develop your value proposition with all
17:46
the new changes and all the things that are going on, put them into your business,
17:50
make it a part of your value proposition.
17:51
Maybe make it a part of the conversations you're having.
17:54
Because this will allow you to separate and level up and catch
17:58
the competition because the truth is it's leveling the playing field
18:01
when something new comes to market.
18:03
And next we have financial management.
18:04
This was absolutely huge when I was going through the, through the peak producers
18:07
program with Brian Buffini is you have to understand that you are a business owner.
18:12
This is a business inputs, outputs, all the things you have to pay taxes.
18:16
It's not deducted from your, you know, your paycheck every Friday
18:20
and it's not coming back to you come April 15th the following year.
18:24
Right.
18:24
You have to create your own, you know, taxes and PNLs and things like that.
18:29
And you have to be aware, right?
18:30
You have options to invest in certain lead generation things and
18:34
certain things for your business and branding and all of that.
18:37
But it needs to make sense.
18:38
What's your return on your investments?
18:40
What's going on?
18:41
Because you have a whole business financial side and then a
18:43
personal financial side, right?
18:45
One thing that changed my career was me.
18:48
Being able to take half of my check and put it in my tax account.
18:52
I'm scared, you know, shitless that I won't, you know, have enough money to
18:55
pay the taxman when my bill comes due.
18:57
I always do, because clearly I'm taking 50 percent of my check and putting it
19:01
away until that, you know, conversation happens in the spring of the next year.
19:05
Uh, that's probably a little aggressive, but if you have the
19:08
ability and the means to do it, It certainly allows for a cushion as you
19:12
move forward in the future, and it definitely makes me continue to hustle.
19:16
Right, when I'm only operating off 50 percent of my income, I'm really
19:20
hustling and I'm really working to make sure that I keep that account flowing.
19:25
And so, that takes a little bit of time to get to, but certainly take,
19:29
you know, the allotted tax amount that your CPA or accountant recommends.
19:32
and put it aside untouchable, make sure that you're covering that base,
19:36
and then make sure that you can cover all of your other expenses.
19:39
And if it's not, let's look at your time commitment.
19:42
Let's see what you're doing.
19:42
Let's put a little more time in the beauty of this industry is that
19:46
there is no ceiling to your income.
19:48
The problem is there is also no floor.
19:51
That's something that we need to really focus on and understand that
19:54
you are a business owner and the financials can make or break you.
19:58
And a lot of times, you know, people are like, Hey, I just have to pay the bills.
20:01
I can't, I can't put it all in there.
20:03
I'm like, yeah, well, had you put more time in on the front end or
20:07
maybe we're starting as part time.
20:09
That's okay too.
20:10
I'm not that guy that's going to tell you, you can't start part
20:12
time, but let's build a plan.
20:14
What do we have to get in the savings account to feel comfortable?
20:16
What do we have to have in deal flow to feel comfortable to exit?
20:19
Okay.
20:20
How are we going to get there?
20:21
What's it going to require?
20:23
Cause I promise you it's not a 40 hour full time work week and
20:27
come into real estate and it's five hours and it'll get there.
20:30
You're going to have to make some sacrifices of time, especially if
20:33
you have another job because you have different, you know, clients with
20:36
different needs and times like that.
20:38
So make sure those financial pieces are not a reason that you fail
20:43
and make sure you set yourself up for success with the right budget.
20:47
Okay.
20:47
The next one, work life balance and burnout.
20:49
This goes back to kind of the time management.
20:52
You must have, you know, some, some variation of what you're doing.
20:57
You can go all in.
20:58
There's a lot of people that are extremely money driven
21:00
that'll go all in all the time.
21:03
I would challenge you to make sure that you are doing the right activities.
21:08
Find a coach, find a mentor, find, you know, even another agent who's going
21:13
through it and make sure you have the accountability to what you're doing.
21:16
Are, are the actions you're putting in actually determining your results, right?
21:21
Are you spending too much time scrolling on social media?
21:24
You're moving distractions.
21:25
Are you really dialed in on becoming the valuable resource that
21:28
you need to be for your clients?
21:30
Because if you are not, and there's not that, you know, success feeling.
21:35
You will burn out because you'll be continuing to go.
21:37
If you're just dialing the phones and you're dialing the phones,
21:40
you're not changing the script.
21:41
You're doing the same thing over and over and over again, producing
21:43
the same results, which is zero.
21:45
You will not make it right.
21:47
So we have to adjust.
21:49
Certainly there's a fine line of going all in and fully dedicated and getting
21:52
consistent and not doing enough.
21:55
And maybe you need an outside source to look at that.
21:58
But burnout is real in this business, but it's not really real
22:02
if you're seeing results, right?
22:04
Once you're cashing checks and, and closing transactions and changing
22:08
people's lives and your client's lives, it's easy to keep going.
22:11
but it's getting to that point and doing it the right way, the most
22:14
efficient way and the most strategic way while being consistent and still
22:19
having a little bit of a balance and taking breaks and getting rest and
22:23
drinking your water and doing them.
22:25
And we touched on this one a little bit, but a lot of people are like, this is how
22:29
I do it at your, you know, nine to five.
22:31
You just figured it out on your own.
22:32
You learn by fire, trial by fire.
22:34
The problem right now, trial by fire can be really expensive, right?
22:37
Because you're dealing with, transactions and people's
22:40
livelihoods and all the things.
22:42
So utilize your support system.
22:44
Make sure you have mentors, make sure you have associates, you know, people that
22:48
you can hold each other accountable and ask questions and see if they've seen
22:52
it mastermind and do all those things.
22:54
And if you don't, please reach out because I would love to be that mentor.
22:57
I'm coaching clients.
22:58
I'm helping clients.
22:59
I have clients coming into my organization who I do this all for absolutely free.
23:04
And I have clients that do not come into my brokerage or organization.
23:07
And you know, there's a cost to that, but a free realtor game plan
23:11
call could really go a long way.
23:12
To help you kind of set up a support system and help you reach, reach the
23:16
next level because you do need help.
23:18
You need to have a really good relationship with any local mentors,
23:21
a really good relationship with your broker so that you can absolutely
23:25
utilize these people in times of need.
23:28
And it's not, can't be one person.
23:29
Right.
23:29
Your broker can't, you know, answer your life questions
23:32
and, and that kind of stuff.
23:33
So have different support systems, uh, that you can build out and rely
23:37
on other people and be an open book because the, the less, the more
23:42
secluded you are in this business, the less money you're going to make
23:44
because you have to talk to people.
23:46
You have to help people.
23:46
You have to provide value and you have to know what you're doing.
23:49
And the last one, really, really simple, ignoring feedback and refusing to improve.
23:54
I improve every single day.
23:56
I was just at a conference yesterday with, you know, top professionals who
24:00
I respect tremendously, and actually that's where I'm going to close this.
24:04
Always be a learner, always be a student of the game, and always be
24:08
willing to improve for yourself, for your clients, for your family.
24:11
I was at this event and they were talking about the commission lawsuits.
24:15
And an agent who I highly respect and a lot of people do in our industry
24:21
was talking about the buyer's agent commission and, you know, kind of that
24:25
expectation of a certain percentage that's been kind of handed down to
24:29
us pretty, you know, consistently.
24:32
And she said, the truth is, if I have a client who, you know, we try and the
24:37
seller is not willing to compensate the buyer's agent side of this.
24:41
They do not have the ability to, you know, pay me the total fee, whatever it is.
24:48
I am still willing to help them get into that house because if I
24:52
don't help them get into that house because of my greed, basically,
24:56
and certainly it's not all greed.
24:58
I understand we work and we, we do things, but if I'm saying, Oh, I need to
25:02
make 10, 000 instead of 5, 000, Because the buyer can only pay 5, 000 and I'm
25:07
saying, well, you know, good luck.
25:09
See you later.
25:09
And handing them off or whatever, then I am not fulfilling the duty.
25:13
I'm not providing that value because if I take 5, 000 on that, you know, one,
25:18
one deal, whatever it is, if I take it and just say, Hey, look, you know, I
25:23
don't standardly do this, but it's very important for me to get you a new home.
25:27
That's what I care about.
25:28
That's the, that's the difference I make.
25:31
I will help you do this and do me a favor and just let all of your friends know
25:35
You know that I'm a great real estate agent when they talk about real estate.
25:38
And please don't tell him I work for free, you know?
25:41
So, but it was, it was something that I've said on this channel over and over again.
25:45
I've said out loud over and over again, I'm talking about this commission
25:47
lawsuit, but it makes sense, right?
25:50
It is your job to show up for your clients and provide value And if you lead
25:54
with value without the expectation of a massive payday Then you know at some
26:00
some days you'll get massive paydays when it's not expected And other days
26:04
you'll give back a little bit and it'll be a massive Many many many more massive
26:08
paydays for helping them do that get them into that home You know, they are
26:13
guaranteed going to call you when they sell it and they're guaranteed going to
26:16
tell every single one of their friends So that's where it's at lead with value
26:20
If you're struggling, please reach out.
26:22
I'd love to connect any way possible.
26:24
I'd love to get you into my, you know, coaching program.
26:27
I'd love to get you into, my organization, whatever that looks like.
26:31
That's what I'm here for.
26:32
Like comment, subscribe, share this podcast with somebody who
26:34
needs to hear it and let's up the success rate of real estate every
26:38
single day and let's keep winning.