Sun. Jul 14th, 2024

If you’re thinking of going into real estate, it’s important to know what you’re in for. It’s not just easy money – in fact, it’s quite the opposite. Here are 20 reasons why real estate agents fail in their first year of business so that you know what to expect ahead of time!

1) Lack of proper education

The first reason why real estate agents fail in their first year is that they lack proper education. Becoming a real estate agent takes time and perseverance, but it also takes knowledge of the field. You should educate yourself on the basics of real estate, including laws, contracts, finance and marketing. You should also get experience through internships or part-time jobs.

2) Inexperience in the field

The most common reason why people fail in the first year of being a real estate agent is inexperience in the field. Most people that become real estate agents come from other industries, so it takes time to get used to the business and know what it takes to be successful. However, there are plenty of ways for an inexperienced agent to learn how to be successful. They can take classes at local colleges or universities, they can do research on the internet or they can talk with more experienced agents.

3) Quitting too soon


Quitting too soon is one of the reasons why real estate agents fail in their first year. It is important to have a high level of commitment, and not give up when things get tough. There are many successful real estate agents who can attest to how difficult it is to succeed in the field; but they never gave up on their dreams, instead they kept persevering until success found them.

4) Not having enough leads

Not having enough leads

The lifeblood of any successful business is leads. The more leads you have, the more opportunities for work and sales you will have. If you don’t have enough leads, it will be difficult to make a living in real estate. You need to develop a system for generating quality leads that can grow your business and serve as a foundation for the future. 

Without an adequate number of qualified prospects, a real estate agent simply cannot succeed. There are many ways to generate new leads such as networking, advertising and referrals from other sources. It’s important to do these things every day so that you’re always building your pipeline with new prospects and not relying on old ones who may not be available when they hear about your latest listing or sale.

5) Being too lazy to succeed


You need to be committed to your work and willing to put in the time and effort it takes to succeed. If you’re not willing to work hard, then this isn’t the right career for you. There are no shortcuts or one-size-fits-all solutions. Be prepared for a lot of late nights, weekends, and even some holidays!

6) Fear of failure

Fear of failure

Fear of failure is a very common reason agents give up in the first year. They don’t want to put all their eggs in one basket, so they’ve convinced themselves that it’s safer to just not try at all. The problem is, when you don’t try, you’ll never know what could have been. You might miss out on the opportunity for success and happiness by being too scared to take a risk.

7) Being disorganized

Being disorganized

Being disorganized is one of the main reasons why real estate agents fail in their first year. For example, agents should always be on time and keep appointments on schedule. If they are late or miss an appointment, then they will most likely lose that potential client to another agent

8) Not being able to handle rejection

Many agents underestimate the number of rejections that they will receive in their first year. Keep in mind, if you are not a licensed real estate agent, your chances of getting a listing or being able to sell someone’s house is much lower. This leads to many more potential rejections than people who are already licensed have to handle. It can be hard to get over these rejection and keep going, but it is essential for success.

9) Giving up after making a few mistakes

Starting a new job is never easy. Whether you’re a real estate agent, accountant or business owner, you have to put in the time and work to make sure everything gets off on the right foot. But what happens when you make mistakes? It’s all too common for people who start their own business to give up after making a few mistakes.

When you’re learning a new trade, it’s not uncommon to make mistakes. Even experienced professionals occasionally slip up on something. The key is to move forward and learn from your failures, as opposed to throwing in the towel and giving up after making a few mistakes. By learning from your errors and identifying areas for improvement, you’ll be able to prevent similar issues in future work. When it comes down to it, being able to identify where your business is going wrong—and then correcting it—is what separates success from failure.

10) Having unrealistic expectations

Having unrealistic expectations is one of the biggest reasons agents fail in their first year. We know that it’s likely to take a few months, if not a year or more, before you start earning the full commission you want and before your pipeline of clients will be full. You may have to work part-time at another job for a while as well. But if you’re realistic about how much time it might take before things start happening for you and how much work you’ll need to put in, there are no reasons why you should fail!

11) Trying to do everything on their own

You should never try to do everything on your own. You need a team of people to help you with everything, from getting the word out to handling all aspects of the business. This is one of the most important reasons why agents fail in their first year. They’re trying to do too much on their own and not getting the support they need.

12) Not having a support system

I don’t mean to sound grim, but a support system is one of the most important things you need when starting out in this business. You need someone to share your excitement with and that will be there for you no matter what happens. You also need someone who will tell you when you’re being a little overconfident, or when they think you’re off on some tangent. And then there are those days where it just feels like the whole world is against us, and we need someone to talk us down from the ledge.

13) Not having a plan

I see a lot of new agents who don’t plan. They don’t have a marketing plan, they don’t have a strategy and they jump right in to the deep end without looking around for what’s going on. 

It’s so important to have a plan for your business and that includes knowing who you are and what you’re good at. If you’re not writing down your goals or figuring out your niche it’s going to be much harder to succeed in this industry. 

Not having a plan can lead you down the wrong path which will make it hard for you to reach your goal of being successful in this field.

14) Not taking advantage of technology

Not taking advantage of technology

While technology is an amazing tool, many agents don’t take advantage of it. There are plenty of ways to streamline your business and make it more efficient so you can work smarter, not harder. Take advantage of these five technologies that will help you sell more homes and save time: 

– Phone apps like Siri that can schedule appointments for you on the go 

– Social media platforms to share information about your listings 

CRM systems that keep track of all of your current and potential clients 

– Online marketing tools like Google Ads to generate leads for your business – Collaborative design tools like SketchUp so you can show clients what their new home could look like

15) Not tracking their progress

It is difficult to track your progress when you first start out in the real estate industry. It is important to keep a record of what you do and how much money you make, so that you can see where your strengths and weaknesses lie.

You want to be able to track your progress over the course of a year, so that you can gauge how successful or unsuccessful your tactics are. If you are not tracking your progress, it’s going to be hard for you to know what works best for you and what needs improvement. If this sounds like something that may have happened to you as well, there is no need to worry!

16) Not setting goals

Setting goals is a key component to success. Without goals, it’s difficult to know how to measure your progress and how well you’re doing. Goals will help you set short-term goals as well as long-term ones.

They also provide you with a direction, which can be very helpful when many things are happening at once and it’s hard to know what to focus on next. When it comes time for the end of the year, looking back at your goals will allow you to see if you met them or not and see where improvements need to be made for the coming year.

17) Being afraid of change

Many agents are afraid of change and will be reluctant to make the necessary adjustments to their business plan. They feel that they have been successful in the past, so why would they need to change now?

The reality is that the industry is always changing and agents who refuse to change with it are only hurting themselves. There are always new strategies and technologies coming out, so staying stagnant will only lead you down a path of failure. You need to keep up with new trends in order for your business to stay afloat.

18) Not having balance in their life


There are many reasons why real estate agents fail in their first year. But according to the National Association of Realtors, one of the top reasons is lack of balance in their lives. 

This could be a result of agents having too many clients and not enough time to properly manage them all or it could be because they do not know what they should be doing with their time. 

Regardless, if you want to succeed in this career, you need to make sure that you take care of yourself as well. Without your personal life in order, your professional life will never have a chance to get off the ground.

19) Not being persistent

The crucial reason why real estate agents fail in their first year is that they’re not persistent. If you’re not persistent, it’s hard to get a foot in the door and the keys to success are never handed over. You need to put in the time and effort necessary to succeed. When you take on a new client, make sure you stay in contact with them consistently so that they know you’re there for them when they need your help.

In conclusion, understanding the challenges that real estate agents face in their first year is crucial for success. As we’ve discussed, there are numerous pitfalls to avoid, from inadequate training and lack of a solid business plan to unrealistic expectations and insufficient networking.

It’s not uncommon for new agents to stumble upon these obstacles, but by recognizing them, you can better navigate your real estate journey. Remember, it’s not just about avoiding failure; it’s about embracing continuous learning, adapting to change, and building strong relationships with clients and peers. With dedication and perseverance, you can overcome these challenges and thrive in the competitive world of real estate.

To help you further grasp these concepts, we’ve included a video from a financial consultant below. It offers additional insights and tips to ensure your success in the real estate industry. Watch and learn, and remember that your journey in real estate is a marathon, not a sprint. Good luck on your path to becoming a successful real estate agent!


There are many reasons why real estate agents fail in their first year. Some of the reasons that we have discussed may seem obvious, but there are other factors that can be very difficult to overcome.

These include, lack of knowledge and experience, making too many commitments with not enough time to manage them all, not taking care of your own emotional health, and financial issues. If you are considering a career in real estate and want to avoid these pitfalls then it is important to start taking care of yourself now so you can enjoy success for years to come.