The 3 Biggest Challenges Agents Face Today (+ How to Overcome Them)

Did you know that 71% of active real estate agents didn’t close any sales in 2024?

For agents who are well acquainted with the challenges of working in real estate, this statistic might not be surprising. However, those who are focused on solutions also know that it is possible to build a thriving, successful business in today’s competitive market. Here are the three biggest challenges agents regularly encounter—plus strategies for overcoming them.

Challenge #1: Inconsistent Income Due to Market Fluctuations

As an agent, you may find you make more money than you need one month and then much less the next.

With commission-based pay, it’s not uncommon to experience income dips due to market volatility—with high home prices, low inventory, and rising mortgage rates being the biggest culprits as of late. Mounting competition with nearby agents and transactions that fall through can also affect your monthly salary.

Keep in mind, too, that agents are business owners. This means you’ll need to pay for business expenses, such as:

• Marketing materials and advertising fees
• Self-employment taxes
• Healthcare insurance
• Retirement savings
• Business insurance, including general liability and errors & omissions
• Licensing fees and certifications
• MLS fees
• Travel expenses, such as gas and wear and tear on your car
• Accounting and payroll, if needed

These costs can add up, and if agents don’t plan ahead, managing their finances can be stressful as income fluctuates.

Solution: Plan Ahead for Leaner Months and Lead Generation Costs

Build Your Savings

Whether you’re just getting started or have been a real estate agent for a number of years, it’s essential to have a well-padded savings account. This will give you something to rely on during months when commissions are lower than usual.

If you’re not sure where to start, focus first on saving enough to live and run your business for three to six months. Consider working with a financial advisor to create a savings plan tailored to your specific situation.

Focus on Sellers

While any client is better than none, focusing on seller clients may help you earn commissions more consistently. After all, sellers are less likely than buyers to back out of working with you because they don’t feel ready. And in a difficult market, you may find some buyers give up after bidding unsuccessfully on multiple houses.

Related: 5 Reasons It’s Better To Be a Listing Agent than a Buyer’s Agent

Create a Steady Source of Quality Leads

As an agent, it’s a good idea to be constantly prospecting, even while working with other clients. If you don’t, you may find yourself scrambling for a new client once your next transaction closes.

Of course, generating high-quality leads on a consistent basis is easier said than done, which brings us to our next challenge.

Challenge #2: Finding High-Intent Leads Consistently

Getting started or staying afloat in real estate is much more exhausting without a steady source of leads. To succeed as an agent and make consistent income, you’ll need to constantly generate new leads, even while working with current clients.

That said, not all lead generation efforts are equal. Some of the most common methods often take hours of effort with little fruit to show for it. A few examples include:

• Buying generic lead lists that hundreds, if not thousands, of other agents have already purchased and used

• Going door to door, where you may find the vast majority of people have no interest in selling or buying and may even feel annoyed you’re interrupting their personal time

• Hanging up flyers or door hangers, which can be costly to print and may not garner the attention you’re hoping

Solution: Seek Out Motivated Leads

Trying to win over people who have little interest in working with you often leads to low ROI and fatigue. Instead, focus on leads who are already motivated to buy or sell. Here’s how.

Build Relationships at Open Houses

If you host open houses, try engaging interested browsers in conversation to gauge whether they need a real estate agent. (Even if they don’t need one now, they may contact you in the future.) And remember to collect visitors’ names and contact information so you can reach out to them later.

Use Real Estate Data Platforms to Find Motivated Sellers

Doing a little homework before reaching out to leads can save you hours of time and potentially help you gain more clients. For example, homeowners are much more likely to want to sell if they are:

• Facing foreclosure or preforeclosure
• Dealing with a property in probate
• Settling a divorce
• Trying to rent out a vacant or distressed property

Comprehensive real estate data software like PropStream makes it easy to find these types of homeowners. Start by searching for an area, then use our search filters and Lead Lists to generate properties. You can look through these lists to find homeowners who are more likely to sell.

Pro Tip: You can also let predictive AI do the analysis for you. PropStream Intelligence looks at numerous factors, such as property condition, foreclosure risk, market trends, bankruptcy and lien data, and more, to help you determine the best leads in your area.

Challenge #3: Lack of Work-Life Balance

Have you ever received a client call while at dinner with a friend or during one of your kid’s soccer games? Have you ever had to cancel weekend plans because a client asked to see a house at the last minute? These scenarios aren’t uncommon for real estate agents.

As a business owner who needs to make a living, it’s easy to let work slip into your personal life. This might be fine when you’re first starting out, but letting it go on for too long can cause you to eventually burn out.

Solution: Establish Supports & Boundaries

Start Building a Team Sooner Rather Than Later

Protecting your personal time is easier if you have a team to rely on and the right tools. For example, you can hire a VA, set up an automated text responder for messages outside of work hours, or assign another team member to cover for you when you’re on vacation.

However, before adding to your team, you’ll need to establish systems and processes. One of the most critical systems to build is your lead generation process, as mentioned in the section above.

Consider using a platform like PropStream to streamline your team’s lead generation efforts. This way, you can keep gathering leads even if you’re not at your computer.

Vet Clients Before Working With Them

Unfortunately, not all clients are as serious about buying or selling as they say they are. Consider asking several questions during your first meeting and even running a background check before deciding to move forward.

Working in real estate can be challenging at times. But with the tips above, you’re better equipped to overcome those hurdles and build a business that thrives for years to come.

Start Building Your Pipeline for Free—PropStream It

Don’t let market uncertainty slow your growth.

With PropStream, you can quickly identify motivated sellers—like nearby preforeclosures or failed listings—and focus your time and marketing dollars where they matter most. Powerful features like predictive AI, lead automation, and built-in marketing tools streamline your strategy and help you scale smarter. Try it free for 7 days and get 50 bonus leads.