Lies Real Estate Agents Are Told That Cause Over 80% of Agents to Fail
Discover the myths that hold back real estate success and learn the truths to thrive
As a new realtor, you’re likely bombarded with advice from all directions. Unfortunately, much of this advice is misguided, leading to two alarming industry statistics: 80% of real estate agents fail, and last year, 40% of agents closed only one deal or less.
Inspired by a video from realtor coach Mike Sherrard, I’ve witnessed too many talented agents leave the industry, not because they lacked the ability, but because they received bad advice.
Today, let’s debunk these myths and set you on a path to success.
You Need to Spend Money to Make Money
One of the most common pieces of bad advice is that you need to spend money to make money. When starting out, I joined a traditional brokerage and was told to spend heavily on advertising and marketing materials.
But I didn’t have the money; I had time. I decided to leverage cold calling, door-knocking, and community involvement, which allowed me to meet new people every day. This strategy helped me close multiple deals and build an 80% listing-focused business in one of Cape Town’s toughest markets.
I also used Instagram to build my personal brand. This free platform helped me gain recognition in my local market, contributing to my six-figure success in my first year. Today, platforms like Facebook, TikTok and YouTube offer even more opportunities.
Actionable Advice: Focus on using your time wisely. Leverage free resources like cold calling, door-knocking, community involvement, and social media to build your business without spending heavily upfront.
The Myth of Brokerage Supremacy
Many new agents believe that joining a big-name brokerage will automatically bring clients. Let me be clear: your brokerage alone won’t make you successful. Success is about you.
It’s not the brokerage’s fame; it’s your dedication and authenticity. Over the years, I’ve spoken to many agents, and none credited their success to deals handed to them by their brokerage.
Actionable Advice: Build your business through your efforts and authenticity. Clients choose you for you, not for the name of your brokerage.
Faking It Until You Make It – A Misguided Mantra
The idea of “faking it until you make it” often feels slimy and disingenuous. Authenticity trumps all. When I aimed to enter the luxury market, I dressed the part and posted luxury content, but always stayed true to myself. Your content should reflect who you are, not a mimic of someone else in your market.
Actionable Advice: Be ambitious and forward-thinking, but stay true to yourself. Genuine ambition and authenticity will set you apart and attract clients who value the real you.
You Don’t Need a Mentor
There are voices out there claiming you don’t need a mentor. Initially, I didn’t have a mentor and worked 20-hour days to succeed. This approach isn’t sustainable. A mentor provides constant guidance and learning opportunities based on what’s working in today’s market, keeping you on the cutting edge.
Actionable Advice: Find a mentor, whether paid or not. Leverage their experience to shorten your learning curve and avoid unnecessary struggles.
Focus on Your Sphere
New agents are often told to focus on their sphere of influence. This works for some, but not everyone has a sphere to leverage.
When I started in a new city, I had to build my sphere from scratch. There are countless ways to scale your business beyond your immediate circle.
Actionable Advice: Explore various strategies like YouTube, TikTok, Instagram, Facebook ads, Google ads, door knocking, cold calling, open houses, and networking events. Choose one and commit to it with discipline and time management.
Social Media and AI Are Just Buzzwords
Do Whatever It Takes to Close a Deal
The worst advice you can get is to do whatever it takes to close a deal. This leads to “commission breath,” where you push clients into decisions that aren’t right for them.
Doing the right thing will save your business, brand, and credibility in the long term.
Actionable Advice: Always act in your client’s best interests, not your own. Building trust and credibility will lead to repeat business and referrals.
You Need to Work 24/7 to Succeed
Working 24/7 isn’t the only path to success. Focus on the highest income-producing activities and use time-blocking effectively. This way, you can achieve success without burning out.
Actionable Advice: Focus on high-impact activities and use time-blocking to manage your schedule effectively. Work smarter, not just harder.
Keep Your Business Separate from Your Personal Life
Integrating your personal and professional lives is crucial in real estate. This profession offers immense freedom, allowing you to dictate your work-life balance.
Learn to enjoy working in your business while spending time with your family.
Actionable Advice: Embrace the integration of your personal and professional lives. Define your boundaries and appreciate the freedom this profession provides.
Conclusion – There’s no one-size-fits-all approach to succeeding in real estate. It’s about finding what works best for you, staying authentic, and being disciplined. Avoid the pitfalls of bad advice, focus on high-impact activities, and integrate your work and personal life seamlessly.
With these principles, you can build a thriving real estate business and avoid becoming another statistic in the 80% failure rate. Stay true to yourself, and success will follow.
Ready to redefine your real estate journey? Visit Andre Swart Inspires for more insights and guidance. Let’s build your path to success together!