Top 5 Threats Real Estate Agents Need to Know About | Cardinal Financial (2024)

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Top 5 Threats Real Estate Agents Need to Know About | Cardinal Financial? ›

Invasive species are often considered the second most important threat (but see Dueñas et al., 2018). Invasive species are listed as a driver of extinction, along with other threats, for half of species extinctions since 1500 CE for which any information exists.

Invasive species are often considered the second most important threat (but see Dueñas et al., 2018). Invasive species are listed as a driver of extinction, along with other threats, for half of species extinctions since 1500 CE for which any information exists.

1) Fear of rejection.

This is often the first thing to come to mind when realtors are asked to share their biggest fear, especially for those agents who are new to the industry. It's a scary thing to put yourself out there—to go door-knocking or cold-calling.

1. Inflation and Interest Rates: Some Clarity To Mixed Macroeconomic Signals. “An economic slowdown is already underway and the greatest recession risk to real estate is whether rising unemployment and lower household income cuts demand for residential and commercial property.”

Clients may contend that a real estate agent provided inaccurate information about a property, failed to disclose pertinent details, or offered misleading descriptions. Maintaining transparency and ensuring accurate property information is crucial to fostering trust with clients.

Opportunistic: Opportunistic assets are the final rung at the top of the risk ladder. These deals are generally extreme turnaround situations. There are major problems to overcome, such as major vacancy, structural issues or financial distress.

High Vacancy Rates

High vacancies are especially risky if you count on rental income to pay for the property's mortgage, insurance, property taxes, and maintenance. The primary way to avoid the risk of high vacancy rates is to buy an investment property with high demand in a good location.

What is the biggest fear in real estate? ›

Get into debt. One of the most common fears when investing in real estate is: What if I can't pay and get into debt? It is no secret that investing involves many expenses, beyond your monthly mortgage. You must consider maintenance expenses, liens, insurance, among others.

Real estate agents make three common mistakes: inadequate prospecting, poor marketing, and failing to follow up with clients to build relationships. Real estate agents must be motivated because generating leads and properly marketing listings takes creativity and hard work.

But performing the responsibilities of a real estate agent does involve risk, and crimes aren't uncommon. Showing a property alone, meeting new clients, and throwing open houses for dozens or even hundreds of strangers exposes you to a lot of people — not all of whom have your best interests at heart.

Most real estate agents are paid for their services through commissions that are based on a percentage of the property's selling price. How much money agents make each year depends on the number of transactions they complete, the commissions they bring in, and the split with their sponsoring broker.

Real estate brokers are still planning to expand their companies despite a housing slowdown, with 62% saying recruiting new agents is their top business challenge this year, according to a survey by the Delta Media Group.

Unethical agents will often use fraudulent misrepresentation to win a listing, sell a property faster, or push for a property to sell faster. Such actions violate ethical standards and are illegal in many jurisdictions.