10 DEADLY Mistakes That New Commercial Real Estate Agents Make

A number of important challenges that new commercial real estate (CRE) agents must overcome may prevent them from succeeding in the field. These are the top mistakes that new commercial real estate agents make, along with solutions.

Insufficient Expertise

Commercial real estate necessitates a thorough understanding of contract law, financial modeling, market analysis, and zoning laws, etc., all of which can be daunting for novices.

Make sure the brokerage firm you choose to work with provides adequate training for each of these facets of your business, including follow-up training.

Cash Flow Management

For agents who rely mostly on commission, the protracted nature of commercial real estate transactions, which can take months or years to close, puts a burden on their finances. It is not feasible to work part-time and have another job since you must be able to devote all of your attention to your commercial real estate business.

Make sure you have enough money saved up to last you the first 12 to 18 months, or find a brokerage that will work with you on a pay package.

Inadequate Prospecting

In order to create a long-lasting client pipeline, many new agents undervalue the significance of regular lead generation and networking. In order to expand your pipeline as rapidly as possible, the brokerage you ultimately choose should give you the chance to market and brand yourself.

Cold calling is still the greatest approach to gain business, but you can develop your company more quickly by adding content production and blog writing to generate inbound leads, which are typically easier to convert to clients.

Insufficient Mentorship

New agents may find it difficult to handle the complexities of the sector without the right direction from seasoned experts.

A good mentor is like a time portal to your commercial real estate career; look for a brokerage that can put you in touch with one and pay attention to what they have to say.

Rejection Anxiety

Inexperienced agents may experience emotional exhaustion due to the high stakes involved in transactions and the frequent defeats. It’s sales. Rejection is inevitable, so get ready for it immediately.

One approach to interpret a potential client’s rejection is not that they rejected you, but rather that you gained knowledge and don’t need to waste any more time with them at this time.

Unrealistic Expectations

A lot of new agents come into the sector with false beliefs about how easy it will be to succeed, which can cause them to be disappointed and possibly burn out. Unrealistic expectations can lead to challenges in any industry, but if you work in commercial real estate, you can be sure that it will be challenging but that the returns will be exponentially greater than the amount of time you invest.

Limited Technological Proficiency

Efficiency and customer management may be compromised if contemporary CRM tools and other technologies are not used. Your chances of becoming a top producer will only rise if you use the proper tools and processes. Learn them immediately, look for even better ways, and use them on a daily basis.

Ineffective Time Management

For newcomers to the field, balancing several projects, administrative duties, and personal obligations can be quite taxing. In the CRE industry, time management may make or break you. If you don’t manage your time well, you won’t be able to build your business and will constantly be in the same place.

Plan your day to keep your attention on the important things, especially at the start.

Poor Communication Skills

Inadequate client updates or slow response times might damage credibility and result in missed opportunities. Although “my agent doesn’t call me back” is one of the most common complaints we receive from clients, poor or nonexistent communication is undoubtedly an excellent way to fail in CRE.

You will easily rise to the top of the class if you are an effective communicator.

Lack of Market Knowledge

An agent’s credibility may be damaged by a lack of expertise with particular neighborhoods or property types.

Being the most intelligent agent in your market is a simple way to succeed; if you are well-versed in the asset class in the industry you work in and you effectively sell yourself, you will generate demand and get the phone to ring.

I put together a free book titled “Your First 90 Days In Commercial Real Estate” to better help new agents get their foot in the industry, check it out!