Only 4 in 10 new agents are confident about a
long-term real estate career; mentorship, cash reserves, and a
full-time commitment key to early success
SANTA
CLARA, Calif., Nov. 7, 2022
/PRNewswire/ -- A record number of Americans became real estate
agents in recent years. It can be a challenging career for
newcomers, and the early struggles to find success means only 4 in
10 new real estate professionals are confident about having a
long-term career in real estate, according to
Realtor.com®'s new
#ThrivePastFive study.
Only 4 in 10 new agents are confident about
a long-term real estate career
Realtor.com® recently surveyed more than 2,000
agents to gain insights into their top challenges, what separates
new and experienced agents, and what it takes to find success in
those critical early years, and is translating it into insights
specifically to help new agents succeed. Having a great mentor and
cash reserves, as well as spending money on marketing, and making a
full-time commitment during those first few years in real estate
are vital for an agent's long-term success, according to the study
results.
There are many different reasons why so many decided on a real
estate career, from it being a flexible career option for those
seeking balance and autonomy, to the clients, the lifestyle it
provides, and the income potential. Despite it being a hot career
choice for many, real estate is not easy, and every agent faces
different challenges, from a lack of knowledge and training at the
start of a career to growing a client base and understanding how to
effectively convert leads, and too many agents don't make it past
year five.
"In a shifting and ultra-competitive marketplace, with twice as
many real estate agents than listings, having insights from
experienced agents – 80% of whom are confident about making it long
term as an agent – about what works best to power business growth
has never been more valuable," said Donna
August, vice president of B2B Marketing at
Realtor.com®. "With 25 years experience helping agents
succeed, Realtor.com® is committed to developing
tools and insights to help agents who are just starting out, so
they can thrive and find success in their early years."
Lead generation a top pain
point
With home inventories rising but still near four-decade lows,
it's no surprise that generating new client leads is hands down the
top challenge today for agents of all experience levels. In fact,
60% of all agents cited finding new leads as a challenge, and the
figure rose to 70% among new agents, those with less than two years
experience.
One of the most effective real estate lead generation strategies
is to build a strong client network, which can take years for a new
agent to grow. Only one-quarter of new agents reported having a
network of buyers and sellers that they feel confident about, and
nearly half (45%) said they struggle with developing a new client
each week; comparatively, 70% of the most experienced agents
surveyed – or those with 11+ years in real estate – are creating
between one to four new client relationships each week.
Other top lead generation challenges for agents of all
experience levels are converting leads to clients, poor lead
quality, competition from other local agents, high costs per lead,
getting a lead too late, low connection rates and the time/effort
in managing clients is too high. Beyond lead generation, new agents
also struggle with non-serious buyers, whereas experienced agents'
struggle with big listings sites that compete with them as
brokers.
Knowledge gaps that threaten
success
Newer agents wish they had more knowledge of lead gen,
transaction processes and marketing, whereas experienced agents
wish they knew more about social media marketing, online ad
campaigns that convert and search engine optimization. When it
comes to why many agents likely don't succeed, new agents perceive
their struggles are because of a lack of training and startup cash,
while the most experienced agents responded it was likely because
new agents underestimate the time commitment and the learning
curve.
Contributing factors to a new
agent's success
With so many challenges facing new agents, finding success can
seem daunting, but a portion of survey respondents are finding it's
absolutely possible. When looking at the characteristics of
successful new agents – those who average more than 7 transactions
a year – the majority, 9 in 10, work full-time. While most agents
surveyed work full time (83%), as new agents work to establish
themselves, they are three times more likely to work part time
compared to their more experienced counterparts, 24% versus 8% for
the most experienced agents. Nearly half (47%) spend more than
$3,000 a year on marketing, and
nearly 7 in 10 spend money on online leads every month. Two-thirds
of successful new agents also had someone to mentor them, as well
as had back up funds when they first started out in real
estate.
How much to spend on
marketing
The old adage "you've got to spend money to make money" rings
true for agent success; 64% of experienced agents spent
$3,000 or more annually, whereas 70%
of new agents spend less than $3,000
annually. Nearly 9 in 10 agents pay for marketing costs themselves.
New agents are most likely to receive marketing support from their
brokerage, 15% versus 9% for experienced agents. Only about one
third of new agents spend $50 or more
a month on internet leads, whereas experienced agents are most
likely to spend between $50-499 a
month on internet leads.
Top channels to find the most
success
With a greater network of past clients, more experienced agents
find online marketing success with calling on past clients via
email marketing. Newer agents tend to have more social media
experience, which is likely why 82% of new agents rely on social
media and lean into creating their own content. Among the different
social platforms, Facebook is the platform of choice among survey
participants, with 63% of all agents using it to generate leads,
and Instagram comes in at a distant second at 28%.
Despite the popularity of social media, new agents struggle to
convert it into leads, and social media ranked No. 5 for lead gen
after networking/referrals, email marketing, digital advertising,
and internet leads. Among all agents, Twitter, YouTube, TikTok and
Snapchat ranked among the social media sites for lowest lead gen
(with less than 5% getting any leads from these sources).
While 6 in 10 agents of all experience levels ranked the tried
and true method of networking and word of mouth the highest for
offline marketing channels, newer agents also ranked open houses
(44%) as a top channel. For the most experienced agents, more than
half (55%) call on past contacts/leads as a secondary offline
marketing tactic, followed by direct mail and open houses.
Methodology
From May 2022 – Aug 2022, Realtor.com® surveyed agents
of various years of experience online. More than 2,210 agents
responded to the study. To find out more about the study and
results, visit www.realtor.com/thrivepastfive/.
About
Realtor.com®
Realtor.com® is an open real estate marketplace built
for everyone. Realtor.com® pioneered the world of
digital real estate more than 25 years ago. Today, through its
website and mobile apps, Realtor.com® is a trusted guide
for consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner for
business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information,
visit Realtor.com® .
Media Contact
sara.wiskerchen@move.com
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SOURCE Realtor.com