Starting a real estate career sounds glamorous at first. You imagine flexible hours, big commissions, and maybe even your name on a billboard one day. But here’s the hard truth: according to multiple studies from NAR and RealTrends, nearly 87% to 90% of new agents quit within their first five years — most within the first 12 months.
If you’ve ever wondered why so many new realtors fail so fast, you’re not alone. Let’s break down the real reasons, backed by research and real-world insights, and more importantly, how to survive your rookie year with your sanity (and wallet) intact.
💸 1. Unrealistic Expectations About Income
Many new agents expect instant commissions and quick closings. In reality, most don’t make a sale for the first 3 to 6 months.
A 2024 NAR Member Profile revealed that the median gross income for agents with less than two years of experience was only around $9,600 annually. That’s below minimum wage if you count the hours put in.
New agents often underestimate how much time and effort it takes to build trust, find clients, and close deals. It’s a business, not a side hustle.
💡 Pro tip: Set aside at least six months of savings before diving in full time. The commissions will come, but only after consistent effort and networking.
🧭 2. No Clear Business Plan
Many new agents join a brokerage and immediately start chasing leads without direction. They don’t define a target market, brand identity, or marketing system.
A Real Estate Express survey found that agents who had a written business plan were 60% more likely to earn above the industry median in their first year.
You wouldn’t start a restaurant without a menu or marketing plan — yet many realtors do just that with their careers.
💡 Pro tip: Create a 90-day business roadmap. Set small, measurable goals like “make 20 new contacts weekly” or “attend one open house per weekend.”
🕒 3. Poor Time Management and Discipline
Freedom can be both a blessing and a curse. Real estate doesn’t have a boss watching your clock, so it’s easy to waste time scrolling through listings or social media instead of prospecting.
According to The Close’s 2023 Realtor Productivity Report, top-performing agents spend at least 60% of their time generating new leads. New agents? Only about 20%.
That gap explains why the majority burn out early — they’re busy, but not productive.
💡 Pro tip: Treat your real estate career like a 9-to-5 job. Block time for prospecting, client calls, and follow-ups every single day.
💬 4. Lack of Mentorship and Support
Real estate can be lonely, especially when you’re new. Many rookies join brokerages that offer little training or mentorship. They’re handed a desk, a login, and told to “go get clients.”
A Keller Williams internal survey showed that agents with mentors closed 60% more transactions in their first year than those without. Guidance matters.
💡 Pro tip: Find a mentor who actively sells in today’s market. Watch their strategies, shadow their showings, and learn from their mistakes.
📣 5. Inconsistent Marketing and Branding
Most new agents underestimate how much marketing drives success. They post one “Just Listed” on Facebook and expect leads to roll in. Unfortunately, real estate marketing is a marathon, not a sprint.
Studies show that it takes 7 to 12 touchpoints before a client trusts you enough to do business. Without consistent follow-up, your name disappears fast.
💡 Pro tip: Create a simple marketing system — weekly email newsletters, social media posts, and quarterly client check-ins. People remember consistency more than perfection.
❤️ 6. Emotional Burnout
Being a realtor is emotionally taxing. You deal with rejection, unresponsive clients, and financial uncertainty. A 2023 Realtor.com survey found that 58% of agents experience anxiety during slow seasons.
Burnout doesn’t always come from overwork; it often comes from feeling unsuccessful despite effort.
💡 Pro tip: Focus on long-term wins. Celebrate small victories — every showing, new contact, or lead nurtured matters. And yes, take breaks! Your heart (and your career) will thank you.
Most agents don’t fail because they’re bad at selling homes. They fail because they underestimate the business behind the profession. But here’s the good news: if you can survive your first year, your odds of long-term success skyrocket.
Be disciplined. Build relationships. Stay consistent. The first year separates the dreamers from the doers — and if you’re reading this, you’re already on the right path.
