string(9) "wordpress" 7 Red Flags To Watch For (How To Fix A Struggling Real Estate Business) | Inman Real Estate News

Red flags aren’t failures, coach Darryl Davis writes. They’re signposts that help you course correct so that you can improve your business outcomes.

I was thinking this morning about all the changes our industry has faced over the past couple of years — the lawsuits, the new rules, the shifting market. And for some reason, that made me think about the ocean.

Real estate, like the ocean, is always moving. Sometimes the waters are calm, sometimes they’re choppy, and sometimes a wave comes out of nowhere and knocks you flat.

Now, I’ll be honest — I’m no surfer. I tried once. Got all the gear, hired the instructor, paddled like it was my job … and let’s just say surfing and I were not a match made in heaven (or the ocean). But real estate waters? Those I know inside, outside and surfside.

Because here’s the thing: In this business, one minute you’re riding high on a perfect wave of success, and the next you’re gulping saltwater, wondering what went wrong. The good news? There are always warning signs when your business starts drifting off course. The trick is spotting them before you completely wipe out.

Too many agents write intricate, 400-step business plans in January, then tuck them away like last year’s beach towels. Out of sight, out of mind. But drift happens fast. Suddenly it’s September, and you’re wondering, “Where did the year go — and why is my bank account stuck at low tide?”  

7 red flags that you’re drifting off course (and how to fix a struggling real estate business)

Here are seven red flags to watch for — and how to steer back on track before your business capsizes.

1. Your closings have gone missing

When your transactions dry up, it’s not just a lull in the surf — it’s a rip current pulling you out to sea. The lifeline? Conversations.

Real estate is a contact sport. The more people you talk to, the more waves you create. Aim for two conversations a day — one buyer, one seller. That’s 14 a week, 56 a month. The math works — if you do.

  • Sphere first: Past clients, friends, family — your safest harbor.
  • Expireds: Like seashells after a storm, there’s treasure if you know where to look.
  • Visibility: Be seen on shore — host a stop-by, attend community events, chat at the coffee shop.

Bottom line: Conversations are the tide that moves your business forward. Keep them flowing.

2. You’ve ghosted your clients

Ghosting your clients is like ghosting your lifeguard — dangerous. If you’re not staying in touch, someone else is.

A quick call or handwritten note can be the difference between catching the next wave or being left bobbing in the water. Try this:

  • Friday five: Reach out to five past clients every Friday.
  • Simple dialogue: “Hi [Name], I was just thinking about you and wanted to check in. How’s the house treating you?”
  • Offer value: Share a quick market update, or connect them with a contractor if they need one.

Key takeaway: Don’t just float — stay anchored. Relationships are your life preserver.

3. The referral well has dried up

Referrals are the current that keeps your business moving. If the water’s gone still, it’s time to stir things up.

Here’s a dialogue that works:

“Hi [Name], I just wanted to thank you again for trusting me with your home sale. Working with great people like you is the best part of what I do. Do you know anyone who might be thinking about buying or selling? I’d love the chance to help them the way I helped you.”

Then, keep your referral waves rolling:

  • Just-checking-in calls: Gentle ripples that keep you top of mind.
  • Client appreciation events: Like beach bonfires — casual, memorable and community-building.
  • Handwritten notes: A message in a bottle that actually gets read.

Remember: Referrals don’t wash up by accident — you earn them by staying connected.

4. You’re the last to know what’s happening in the market

If a homeowner asks, “So, what’s the market like?” and you blank — it’s like a captain not knowing the tides. Not good.

Be the lighthouse:

  • Study your MLS reports like tide charts.
  • Set Google alerts so you catch waves of news before anyone else.
  • Track rates, inventory and days on market — translate them into plain language.
  • Post weekly market update videos that make you the surfer with the inside scoop.

Bottom line: Don’t drift clueless in the current. Clients need you steering the ship with confidence.

5. You’re letting leads slip through the cracks

Leads without a system are like water through your fingers — gone before you know it.

  • Use your CRM: Think of it as your surfboard — it keeps you afloat and pointed in the right direction.
  • Categorize leads: Hot (breaking waves), Warm (building swells), Cold (calm seas). Surf accordingly.
  • Be consistent: Block 30 minutes daily for follow-up. Respond within 24 hours, or risk missing the ride.

One agent I coached doubled her conversion rate just by organizing her ocean of leads into clear categories.

Takeaway: You can’t catch every wave, but with the right system, you’ll never miss the good ones.

6. Your online presence is ‘meh’ (or worse)

Your online presence is your boardwalk billboard. If it looks faded, dated or empty, people walk right past.

Checklist:

  • Professional headshot (ditch the grainy beach selfie).
  • Bio that blends expertise with personality.
  • Post three times a week — market updates, client stories, tips.
  • Collect and respond to Google reviews.
  • Audit your digital footprint: When people Google your beach shack, is it open and welcoming, or boarded up?

Want bonus points? Add video tours, use hyperlocal hashtags and share happy-client “wave-riding” stories.

Bottom line: Your online presence should be a lighthouse — guiding people to you 24/7.

7. You’re flying solo without a crew

Trying to surf this business alone is like paddling out without fins — you’ll exhaust yourself before you catch a wave.

I know lots of agents who wisely built a crew of trusted pros — lenders, inspectors, attorneys, even other agents. It’s a powerful strategy that extends your reach, widens everyone’s sphere and gives you the branding of being much bigger than you are solo.

Your network = your power team

  • Identify core players: Lender, inspector, attorney, stager — your lifeguards.
  • Collaborate with other agents: Trade referrals, role-play dialogues, co-market listings.
  • Be a connector: Share tips, tools and resources like surf wax at the beach.
  • Stay engaged: Crew relationships need ongoing care.

Takeaway: Ride further and faster with a crew behind you.

Bring it to shore

Red flags aren’t failures — they’re signposts telling you to paddle harder, shift your stance or catch a different wave.

Now, I may not have mastered surfing (the ocean and I agreed to see other people), but I have spent decades helping agents navigate the waters of real estate. Here’s what I know: When you spot the warning signs and adjust quickly, you can ride the waves all the way to shore — without wiping out.

Now, don’t sit on the shore waiting for perfect conditions. Grab your board and paddle out — because you don’t have to ride these waves alone. 

This article was last updated March 3, 2026.

Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube

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