Agent Blogs 3 Reasons Real Estate Deals Fall Through and How to Avoid Them by Yoana Leusin December 3, 2018January 28, 2019 by Yoana Leusin December 3, 2018January 28, 2019 When your real estate deals fall through, that dream of making money as a real estate agent seems to move further and further away. So, regardless of whether you are going after a buyer or seller lead, you have to be alert during every step of the real estate transaction. This is the best way to ensure your real estate deals don’t go bad. Here are 4 possible reasons an agent’s deals might go south and how to avoid such situations. Reason #1: Beginner Real Estate Agent Mistakes A beginner real estate agent might be making a few basic mistakes that hurt deals. It could be because some beginners focus so much on making that quick buck in the real estate world, they end up forgetting the most important factor for this to happen- training and knowledge. In order to enjoy a successful real estate agent career, you need to become an expert on comparative market analysis. You also need to ensure you’re focusing on qualified leads. These are two crucial elements for successful real estate deals- elements where mistakes are likely to occur. Here’s how to avoid them. Comparative Market Analysis In order for a real estate agent to prepare the optimal offer on a property, a thorough comparative market analysis is necessary. Making a bad final offer can lead to you losing out on a deal. The knowledge a good comparative market analysis will provide you with can also be useful during the negotiation phase. You don’t want to miss the opportunity to help your real estate client make more money or cut costs because of a poor CMA report. You need to make sure you’re carefully selecting proper real estate comps and making the right adjustments to the value based on property differences. In addition, you need an easy and clear way to share this with your real estate clients. One of the best ways to ensure you always have the most accurate CMA report to share with your clients is by using real estate technology. Mashvisor, for example, offers real estate investment agents use of our investment property calculator’s real estate comps and market reports as part of our agent’s program. To learn more about how we can help you achieve successful real estate deals every time, click here. Qualifying Real Estate Leads Sometimes, an agent ends up spending too much time and energy on a seller or buyer lead who just isn’t at the stage of moving forward with a real estate transaction. These leads can get far in the process and drop out because they’re not ready. This is why you have to have a lead qualification process in place. Here are two guides to help make sure you are working closely with qualified leads: 6 Must-Ask Questions to Identify Qualified Leads in Real Estate Lead Qualification: Signs a Property Buyer/Seller Isn’t Serious Another solution to avoid this cause of bad real estate deals is to sign up for Mashvisor’s lead generation program. Real estate investors work closely with us and when we know they are ready to buy an investment property and need an agent to do so, we can connect them with you. Get access to exclusive qualified leads by booking a demo now. Reason #2: Misleading Advertising of a Property It sometimes happens that property sellers provide false advertising in the hopes of closing real estate deals much quicker. For example, when looking for real estate online, your prospects might come across edited photographs that attract them to a property they can’t physically visit. And while you can easily avoid real estate deals going sour by visiting the property/having someone you trust visit the property, there is other misleading information to watch out for. For example, when it comes to investment properties, cap rates may be overexaggerated. The costs of owning rental property in the neighborhood may be underestimated in the information provided by the property seller. If you or your investor clients find these facts out much later in the process, real estate deals will easily fall through. Therefore, fact-checking should be your #1 priority early on in the buying process. Visiting a property is not always enough, especially when it’s an investment property. Another key thing to point out is that you need to always be 100% honest about your active listings. You don’t want to hurt the reputation of your real estate agent career or be the direct cause of your real estate deals going bad! Related: 5 Top Real Estate Marketing Strategies for Agents Reason #3: Poor Communication Between Clients and Agents Poor communication is a common reason some agents have trouble closing their real estate deals. When all parties do not communicate efficiently, it becomes much harder to close on real estate transactions. Consequently, a real estate agent should have different ways to establish effective communication between all the parties. Below are a few tips to help you avoid losing real estate deals from bad communication. Find Out How Everyone Prefers to Communicate “One size does not fit all.” Thus, you need to make sure you know what the preferred communication method of each party member is- from your client to the other agent involved. Some people prefer email, others like using social media, text messages, or phone calls. Find out this information quickly and utilize it. Create a Schedule and Use CRM Tools Your real estate client should have an idea of when you’ll be contacting them and with what information. This kind of communication schedule will help you manage real estate deals successfully. How? Well, not only will you not be bothered by constant calls from clients (in theory) but you’ll be able to focus on closing on the deal without constant distractions from a worried client. At the same time, the client will hopefully remain calm knowing the exact day/time of certain steps. This will make it less likely for them to back out from irrational fears or misinformation. The best way to organize your communication is with the use of CRM tools. Track emails and phone calls and what happened during them to stay on top of everything. To get access to Mashvisor’s CRM tools, schedule a demo now. Communicate Updates-It’s Important Updates on the deal are important- any small change in the process of buying or selling properties needs to be mentioned. Therefore, you should communicate to all the parties any possible change. Not telling even the small aspects may bring your deal to a breaking point. Moreover, your reputation, as well as real estate agent career, may suffer. The Bottom Line A few mistakes- from something small to something more consequential- may cause your real estate deals to fall through. With the previous tips for real estate agents, however, you can drastically lower the risk of failing. Identify the trends of your failed real estate deals and take the necessary steps to make sure it doesn’t happen again. Start Your Investment Property Search! START FREE TRIAL Agent ToolsListingsQualified Leads 0 FacebookTwitterGoogle +PinterestLinkedin Yoana Leusin Yoana is an experienced content writer with a BA in leisure studies who enjoys giving tips to beginner real estate investors. 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