The 85% Failure Rate of New Real Estate Agents: What’s Really Going Wrong?

You’ve passed your real estate exam. You’ve joined a brokerage. You’re ready to hustle.

But a few months in, reality hits: the phone isn’t ringing, your bank account is shrinking, and the freedom you were promised feels more like free-fall.

If this sounds familiar, you’re not alone.

Here’s the truth most brokerages and training programs won’t tell you:

Over 85% of new real estate agents fail within their first two years. 

It’s not because they weren’t motivated. It’s not because they weren’t willing to work hard.

It’s because the system is broken.

This post is about what’s really going wrong — and how you can avoid becoming part of the 85%.

The Harsh Reality

When people think about getting into real estate, they usually imagine the highlight reel:

✅ Flexible hours

✅ Six-figure potential

✅ Working for yourself

✅ Helping people find their dream home

What they don’t see is what happens behind the scenes in those first few months.

No leads. No income. No roadmap.

Just a shiny headshot and a vague directive to “go talk to your sphere.”

That disconnect between the dream and the day-to-day is one of the biggest reasons agents fail so quickly.

And while the National Association of Realtors won’t put this in the onboarding packet, the numbers don’t lie:

Nearly 9 out of 10 new agents are out of the industry by year two. 

It’s not just hard. It’s confusing, isolating, and in many cases — totally misaligned with the person’s strengths and goals.

So what’s going wrong?

What Most People Get Wrong

Most new agents assume real estate is a grind-it-out, figure-it-out kind of business. And early on, the advice they get reinforces that:

“Just work harder.”

“You have to want it more than everyone else.”

“Model what the top producers are doing.”

But here’s the problem: that advice works best for them. Not necessarily for you.

Top producers usually had a very specific path — one that matched their personality, strengths, timing, and connections.

If you don’t share those same traits or circumstances, copying them doesn’t get you ahead — it gets you overwhelmed.

Meanwhile, most brokerages treat every new agent the same. You get dropped into a training program with 30 other people and handed a one-size-fits-all roadmap.

But real estate isn’t one-size-fits-all.

Some people are built for high-volume buyer work. Others are better in a research-heavy investment role. Some thrive solo. Others need the structure of a team.

No one tells you that upfront — so you spend months trying to follow a playbook that wasn’t built for you.

Why the System Is Broken

The real estate industry doesn’t have a clear career path. It has a sales pitch.

Many brokerages operate on a high-volume recruiting model — their business grows when more agents join, not necessarily when those agents thrive long-term. In fact, there’s an unspoken industry belief that every new agent is “good for at least two deals”: one from a friend, and one from a family member.

Even if that agent flunks out, the brokerage still got a couple transactions out of the deal.

That’s a problem.

It leads to:

• Generic training that prioritizes compliance over practical career-building

• Inconsistent mentorship, often tied to the availability or motivation of whoever’s assigned

• A transactional approach to recruiting, where the bar to entry is low but the support to succeed is even lower

The result? Most agents spend the first 6–12 months floundering. They try to “figure it out” on the fly, burning through savings, confidence, and relationships in the process.

What They Don’t Tell You

The truth is, not everyone is wired the same — and that’s a good thing.

Some agents are natural hunters. Others are educators, analysts, or connectors.

Some want to build a business empire. Others want a flexible side income.

But when you treat everyone like they’re supposed to run the same race, the majority will fall behind — or burn out trying to keep up.

The agents who survive (and thrive) are usually the ones who figure out where they fit — and build around that fit, not around someone else’s highlight reel.

That’s the real starting point:

✅ Know your strengths

✅ Understand your risk tolerance

✅ Choose a path that aligns with your personality and goals

Because real estate isn’t about being everything to everyone. It’s about building a sustainable business that works for you.

A Better Way Forward

If you’re in the early stages of your real estate journey — or if you’re feeling stuck, discouraged, or second-guessing the path you’ve taken — you’re not alone.

That’s why we created Good Agents: to give aspiring real estate professionals a smarter, more personalized way to approach their careers.

We start with a simple belief:

You’re more likely to succeed if you’re in the role that matches your strengths. 

🎯 Want to beat the 85% odds?

👉 Download our free Real Estate Career Blueprint eBook 

Inside, you’ll find 13 career path breakdowns, expert insights, and a roadmap to help you figure out which real estate path fits you best.

You don’t have to guess. You don’t have to copy.

You just need the right start — the one that’s actually built for you.