/ BLOG

What Are the Top 5 Mistakes Real Estate Agents Should Avoid?

Jun 27, 2021 · 5 minutes to read

A real estate agent with documents on a folder and phone in hand

Working in real estate is a challenging career. It takes a lot of knowledge, planning and hard work to turn it into a successful one. As a new agent, you’re likely to make some mistakes while you learn the ropes.

However, it’s better to avoid making some mistakes if you can. Here are five common mistakes that real estate agents make and how you can avoid making them yourself.

1. Not having a business plan

Working in real estate may seem straightforward, but that’s no reason to forgo writing a business plan. A business plan is a written document that helps you think through your goals and how you will achieve them.

A well-written business plan includes information about many parts of your small business. Start with your goals as a real estate agent—for example, where to you hope to be professionally in 5 years? These should be specific and measurable, so you know if you have met them.

Your business plan should also include market and competitor research. These are the external factors that will impact how quickly you reach your goals. Finally, you will also want to think through a budget and marketing plan. These are the internal factors that impact your business’ success.

2. Neglecting business insurance

Real estate agents work closely with clients, providing valuable advice about the local housing market and community. This opens them up to liability risks and possible lawsuits. Professional Liability Insurance can help protect your business against these types of claims.

A Professional Liability insurance policy (also known as Errors and Omissions or E&O insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing. This includes claims associated with mistakes, omissions, misrepresentation, breach of contract, and other related allegations.

While Professional Liability insurance is an important form of coverage for real estate agents, it may not be the only protection you consider. Depending on your business needs, you may also consider General Liability insurance or a Business Owner’s Policy to further protect you as a real estate agent.

3. Ignoring market trends

A great real estate agent should know the local market backwards and forwards. Clients rely on your expertise to buy and sell property at the best prices. They also trust you to find them the right home that ticks every item on their must-have list.

Real estate agents need to know the financial forecast for their local area. This helps them appropriately price the homes they are selling and guide buyers as they make an offer to buy. However, money isn’t the only trend you should be on top of.

Buyers also want to know about the surrounding neighborhood. You should be well versed in the makeup of the community—nearby schools, parks, public transport options, businesses and other things that make the area unique. If you don’t have in depth knowledge of the neighborhood, clients will find another agent who does.

4. Losing your license

There are two licenses that real estate agents need: a real estate license and a driver’s license. Both are essential to performing the job. Losing either—or both—would likely impact your ability to work and negatively impact your income.

A real estate agent could lose their license if they violate state compliance rules, commit a severe felony, or fail to properly renew their current license. As long as you operate above board and follow the requirements set by your State Regulatory Board, you should be able to maintain an active real estate license.

Equally important is keeping your driver’s license. Real estate agents spend a lot of time driving themselves and clients to and from properties. Maintaining a safe driving record both on and off the job can help you avoid losing your driver’s license.

5. Forgetting to save money

Real estate agents don’t receive a typical set salary or hourly wage. Your paycheck comes each time you sell a property or close a deal. This means that you need to plan for economic downturns.

The real estate market tends to fluctuate. One year you may do extremely well, but struggle to sell properties the next. These ups and downs often mean that your salary will also fluctuate.

Having both business and personal savings to get you through the lean times is crucial. Creating and sticking to a budget can help you better weather a poor economy until the market turns back around.

Learn from others’ mistakes

Real estate is a potentially lucrative career choice if you have the right attitude and drive to succeed. Finding a more seasoned agent to take you under their wing could be a great way to learn on the job. They may be able to share their own setbacks and mistakes, so you can learn even more from their experience.

Are you ready to protect your career as a real estate agent with business insurance? BizInsure can help you find Professional Liability and other forms of insurance to suit real estate agents.

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Good professional services. quick and simple easy steps for an insurance quote for my business. Thank Biz Insurance
I called today a bit unsure, but once I spoke with Andrea, she guided me through the entire process with patience and clarity. She also pointed me in the direction of other helpful services. A+ experience!
BizInsure is the Best. Not only was Andrea informative, she was professional, and spot on! Give them a call you will not be disappointed!
Easy to use, called in advance so I was not late on renewal.
I called 3-4 companies. Bizinsure / Andrea knew exactly what I needed! She guided me through the process and was very informative. Give them a call you won’t be disappointed!
My representative Andrea was great ! She was informative, personable and made me feel comfortable. I called at least 4-5 companies and by far Bizinsure was the best!
Great
Excellent customer service
Very easy process! Very reasonably priced! Will be using them going forward!
very easy to access and obtain the coverage that you need
You guys make things so easy for your consumers. THANK YOU!!!
Very easy, simple to use and straight forward
The process was very easy and my company is now covered.
Alessandro helped me and he was so kind. It was my first time getting business insurance and it was a very good rate, so helpful too!
Easy to work with and thorough with what is being requested and provided.
Excellent experience with Shantana on all the occasions we had the pleasure to speak with a rep.
Straight to the point. Very easy and convenient
A Company that is easy to deal with and that I have used for several years. I appreciate the continued support.
Super easy and detailed
This company is excellent! They provided my business with General and Professional liability. Something that no other company could provide at a good price. BizInsure covered me and the rate is Unbeatable. I will continue to use them for all my business insurance needs.
Alex was very helpful answering all my questions. I am very happy that he will be my contact person , if I should have any other questions. Thank you to Alex
Bizinsure is an exceptional company. The customer service is excellent. The receptionists are very knowledgeable. The insurance agents are very professional.
I use this for my Business and its easy to navigate and start





    This will close in 0 seconds