Rookie Real Estate Agents Can Benefit from Errors & Omissions Insurance
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By Michael Ryder
With the housing market on the rebound, people may be attracted to a career as a real estate agent. Rookie agents can be prone to mistakes, which is why E&O insurance is important for these professionals. The following are some of the most common errors made by inexperienced agents:
- Failing to keep in touch with clients
One of the most important aspects of the agent-client relationship is communication. If the person buying or selling a home isn’t constantly updated on the process, they could feel out of the loop. As a result, even the slightest error could result in the client wanting to recoup damages, because the person wasn’t provided with the necessary details to be informed on the process. For this reason, rookie real estate agents need to stay in constant contact with clients, and make them aware of any new developments. Even if it is just a simple text message saying that everything is going well—something is better than nothing.
- Not earning designations
Continued education is a key factor for all new real estate agents. Many highly respected agents have made a career commitment to obtain advanced industry designations. By taking classes to acquire new skills, agents can become better at their jobs, which, in turn, could reduce the risk of mistakes and lawsuits. Additionally, agents with designations are often chosen by buyers and sellers over ones that don’t, so this could be a good move for rookie agents that are learning the specifics of a new industry.
- Not taking advantage of target marketing
The driver of the real estate business is buyers and sellers. If agents are unable to reach these people, chances are they will be unsuccessful. One of the best ways to get the right people interested is through the use of target marketing. For example, if an agent is selling a property that will likely go for $300,000, it is important to market toward the income group that can afford this type of home. There is no sense in going after multi-millionaires for such a property, as these people will likely want a much bigger and more lavish house.
- Poorly presenting listings
Listings are the livelihood of real estate agents. If properties aren’t shown off well enough to attract buyers, they don’t earn money. One of the biggest mistakes made by new agents is not having proper listing presentation. Not only could they be costing themselves money, but also their clients. If poor presentation leads to people not getting top dollar for their home, they could end up suing for damages.
For coverage to protect yourself as a real estate agent, broker or firm against Errors and Omissions claims, visit Norman-Spencer.com/TopTier.
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