Whenever anyone enters a new job in a new field, there are always tricks of the trade they have to learn—some that may counter their expectations.
A 2024 study by the WAV Group found that many consumers aren’t well-versed in what the home-buying process entails or the role of a real estate agent. If a member of your team is new to the business, they might share many of the same misconceptions.
The best thing you can do is clarify things for new team members. Don’t approach this as taking them down, though—it’s a chance to give them the tools and mindset they need to succeed, instead of burning out of the industry within a year or two.
You can pass on specific advice and strategies—negotiation tactics, social media for marketing, lead generation and such—but start with the big picture. If you’re hesitant, thinking you could be creating a future rival, remember that on a team, a rising tide lifts all boats. Proper mentorship makes it that much more likely the new agent will grow attached and hesitate to jump ship for supposedly greener pastures.
Being a real estate agent is not easy money
Becoming a real estate agent has a low barrier of entry, to the point that many brokers believe the standards should be raised. Combine that with glamorous reality TV stars and internet influencers, and real estate looks from the outside like an easy money job.
The last thing you want to do is discourage or dismiss a new agent who may think that way, but also give them a reality check. The National Association of REALTORS® (NAR) has reported that, in 2023, the median gross annual income for a REALTOR® was $55,800. Plus, a new agent needs to hustle and build connections so as to even have clients and, with them, commissions.
This wake-up call will better prepare a new agent for when they probably don’t make $1 million in their first year, in turn causing them to leave and write off their real estate experience as wasted time. If the idea of a slow start does make them run for the hills, then this probably wasn’t the right industry for them in the first place—and it’s better they realized that early, before sunk costs started weighing them down.
Working for yourself doesn’t always mean less work overall
As a self-employed agent, you have the luxury of setting your own hours—both when and how many. Some new agents might see the job as a chance to escape the nine-to-five, 40-hour work week without loss of income.
Indeed, the flexibility of scheduling is rated by many agents as a top reason for high job satisfaction. But—especially due to the aforementioned need to hustle early on—more flexibility may not mean less time worked overall. NAR found the average REALTOR® worked 35 hours a week in 2023 (which, mathematically, still comes out to seven hours a day), but some team leaders encourage their agents to budget 50 working hours each week.
If you’re inexperienced at scheduling your own time, you can fall behind—or overextend. A new agent might feel the urge to always be on call for their clients (some clients will even expect as much) so as to prove themselves. In a competitive industry, there will often be a nagging feeling in the back of your head that, when you’re not working, you should be. That, and the possibility of not meeting your goals even when you do so, is a recipe for burnout.
The simple solution is to let a new team member shadow you. Of course, there’s no one-size-fits-all approach to time management, but seeing the day to day can help one find their own groove. A new agent can ask themselves if they’re prepared to do this work, day in and day out.
High mortgage rates don’t necessarily mean you shouldn’t be a buyer’s agent
RISMedia’s 2024 Contract & Commission Study found that 30% of surveyed REALTORS® have shifted their focus from buyers to sellers in the past year. One cited reason was high mortgage rates—the latest rates are still hovering around 7%, a natural headwind for home sales.
If you’re new to a business, the more risk-averse path will always be the most enticing. Right now, that path is being a listing agent. That said, this is not a way to avoid the issue of high mortgage rates. Moreover, markets operate like pendulums, so it could be useful to get experience for the next time rates are similarly high, or for when the market is more favorable to buyers and they’re eager to find a new home.
If your new team member wants to try their hand at being a buyer agent, schedule some practice time with them. Together, you can play out common mortgage conversations. Explain the options for refinancing down the road, have prepared answers for if/when buyers ask why they shouldn’t wait for rates to be 3% again and more.
To be extra productive, let the less experienced agent play the buyer, at least at first. They can absorb the information they need for their clients by listening to you, and the questions they think to ask might be ones that another, less market-knowledgeable buyer would as well.
Cold-calling can bring you to hot leads
If a person chooses to become a real estate agent, odds are they’re probably someone who is comfortable meeting and conversing with new people. That said, “extroverted” doesn’t automatically translate to “master salesperson.” So, if a new agent is hesitant about cold-calling, door-knocking, etc., then you have a chance to give them a new perspective.
If cold-calling has won you clients in the past, share those success stories with them, explaining that the practice is an enduring way to extend your sphere of influence. Moreover, the practice is a numbers game where the biggest difference is between 0 and one—you only need to get one prospect for a cold-calling session to be worth it.
Make sure to only suggest they consider cold-calling, rather than pressure them or argue that it’s an absolute necessity. If your new team member is open to it, then you can start passing on some more specific advice.
Though relying too heavily on scripts can backfire, preparing a loose list of bullet points you need to hit in your intro will ease cold-calling anxiousness. Moreover, letting your new mentee rehearse their cold-calling introduction with you will give them valuable experience of the first field test.If they’re still uncomfortable, you could suggest they start with mailers and work their way up to approaching leads face to face (or at least voice to voice). If you’ve noticed any days, hours or even periods of the year when cold-calling and/or door-knocking is most successful for you, share those times with your new teammate.
