Why Do Most Real Estate Agents Fail To Succeed In Real Estate?

There are several reasons why some real estate agents fail to succeed in the industry. Here are a few common factors:

The real estate profession can be one of the most rewarding for many reasons.  A few of the best things I love about being a professional real estate agent is the flexibility of my schedule, unlimited income potential, and of course, helping people with one of the largest transactions of their entire lives.

Most successful real estate agents are able to provide way more benefits than drawbacks of being a real estate professional.  One thing that is rarely discussed about the real estate profession is the alarming percentage of agents who fail to succeed in the business.  Depending on the source, the percentage of real estate agents that fail in the business within the first 5 years ranges between 85-90%.  When you think about it, nearly 9 of 10 new agents can expect to fail, which is an eye opener.

Recently while selling a home in, the buyer was working with an agent who was brand new in the business.  Long story short, the transaction didn’t go as planned and did not close.  The buyer’s agent was pretty difficult to work with and certainly didn’t do his client justice with the service they provided which played a significant role in the deal falling apart.

This led me to start asking myself, is this agent going to make it in the business?  What could be the reason why the agent isn’t going to make it?

In this article you’re going to find out the top 10 reasons why real estate agents fail.  If you’re thinking about getting your real estate license, are newly licensed, or are a 20-year veteran, you need to keep in your mind why most agents are failing in the business.  

Being aware of these reasons why real estate agents fail can greatly reduce the chance that you’re going to fall victim to the startling statistic of the percentage of agents failing in the business. Also, consider checking out this fantastic book, Success as a Real Estate Agent for Dummies, as additional reading!

1. Lack of Planning and Strategy: 

Many agents enter the real estate industry without a clear business plan or strategy. Without a roadmap for success, they may struggle to attract clients, generate leads, and close deals.

2. Inadequate Marketing and Lead Generation: 

Effective marketing and lead generation are crucial for success in real estate. Agents who fail to invest time and effort into promoting their services, building their brand, and generating leads may struggle to find clients and secure transactions.

3. Poor Networking Skills: 

Building a strong professional network is essential in real estate. Agents who have difficulty connecting with potential clients, other agents, lenders, or other industry professionals may find it challenging to build a successful business.

4. Lack of Persistence and Resilience: 

Real estate can be a competitive industry with many ups and downs. Agents who give up too easily or become discouraged by setbacks may struggle to overcome challenges and achieve long-term success.

5. Insufficient Knowledge and Skills: 

Continuous learning is vital in any profession, including real estate. Agents who fail to educate themselves on market trends, legal regulations, negotiation techniques, technology tools, or customer service skills may find it difficult to meet client expectations or stay ahead of the competition.

6. Poor Time Management: 

Real estate agents often juggle multiple tasks simultaneously – from prospecting for clients to showing properties and negotiating deals. Those who struggle with time management may find it challenging to prioritize activities effectively and maximize productivity.

Final Thoughts

It's important to note that while these factors contribute to some agents' failure in the industry, there are also many successful agents who demonstrate dedication, professionalism, discipline, adaptability, exceptional customer service skills, and continuously strive for growth in their careers.

There is plenty of business to go around in the real estate industry.  The percentage of real estate agents failing is way to high.  It’s extremely important that all real estate agents, whether new agents or seasoned veterans, realize why real estate agents fail.

If the number of strong real estate professionals entering the business increased, it would be good for the industry and profession.  Stronger agents entering and staying in the business would mean a better experience for buyers, sellers, and other real estate professionals.

The number of real estate agents failing to make it in the business is far too high.  The above reasons why real estate agents fail are some of the most common.  If you’re considering a career in real estate you need to at least pay attention to the above pointers.