12 Mistakes New Real Estate Brokers Make in Saudi Arabia and How to Avoid Them — Complete Guide 2026

Introduction: The License Is Just the Beginning... Not a Guarantee of Success

You obtained your FAL license from the Real Estate General Authority. You completed the Saudi Real Estate Institute courses. You became an officially licensed real estate broker and started your journey with enthusiasm and high energy. Then... reality hits.

Why are deals delayed? Why aren't clients responding? Why did you lose that particular opportunity? Why does your colleague who started with you seem so far ahead? The answer usually isn't luck. It's in the mistakes most new brokers make — predictable, recurring mistakes that, unfortunately, no one discusses openly in training courses. This article is the guide you needed before you started. We'll review 12 common mistakes new real estate brokers make in Saudi Arabia, backed by international studies and real numbers, with a practical solution for each. Read it with an open mind — every word is written to help you succeed.

The Hard Truth: What Do the Numbers Say?

Before we talk about mistakes, let's face the truth with its numbers. The National Association of Realtors (NAR) — the world's largest real estate organization — states clearly: 75% of new brokers leave the field within the first year, and 87% fail and leave the profession within five years. These aren't numbers to frighten you, but to make you understand the road is harder than it appears.

In the Saudi market specifically, the situation has enormous opportunities: the Saudi real estate market reached $77.2 billion in 2025 and is expected to reach $137.8 billion by 2034 according to IMARC Group research. Vision 2030 and mega-projects like NEOM, Red Sea, and Diriyah provide unprecedented real estate demand. But alongside these opportunities, new brokers enter the field daily and competition intensifies. Those who learn from others' mistakes succeed. Those who repeat them exit early.

Mistake #1: Treating Real Estate as a Job, Not a Business

This is the root of most other mistakes. The new broker gets their license and starts "working," expecting deals to come. But the truth is that real estate brokerage is your own personal business, not a salaried job. You are both employer and employee at the same time. A broker who thinks like an employee waits for direction and clients. A broker who thinks like a businessperson plans, markets, follows up, and builds relationships. The difference between them is the difference between success and failure.

The specific mistake: Starting without a written business plan, without clear goals, without a budget, without a strategy.

The solution: Before anything else, write a business plan that includes: How many deals do you want to close in the first year? What is your marketing budget? Who is your target client? What is your geographic area? How will you generate leads? What will you do in the first months before commissions start flowing? The plan doesn't need to be complex, but it must exist.

Mistake #2: Underestimating Cash Flow and Expenses

One of the most common reasons new brokers leave the field early is running out of money before deals begin. The classic mistake: the broker wins their first big commission, spends it immediately, then finds themselves with no income for two or three months. The reality in real estate brokerage is that income is completely irregular. You might receive a large commission this month and nothing next month. A new broker needs a financial reserve to cover at least 6 to 9 months before starting, according to numerous studies in this field.

The specific mistake: Spending commissions as soon as they're received, not setting an operational budget, forgetting to invest in marketing, not maintaining a financial reserve.

The solution: Allocate at least 30% of every commission to marketing and operations. Maintain a reserve that covers your living and activity for six months. Treat every commission as if it needs to sustain you for three months. Use financial management apps to track your expenses accurately.

Mistake #3: Wrong Pricing and Property Valuation

The new broker comes with a property to sell. They agree to the seller's inflated price to please them, or fear losing the deal. Or the opposite: they set a price too low for a quick sale without real market study. Both mistakes cost the broker their reputation, clients, and time. International data shows that 84% of buyers rely on price comparisons before making a purchase decision, so wrong pricing directly loses deals.

The specific mistake: Relying on the seller's estimate rather than actual study, not using the REGA real estate market indicators platform, overlooking the impact of location, services, age, and area on price.

The solution: Learn comparative market analysis (CMA) deeply. Use Ministry of Justice data and the REGA indicators platform. Study completed transactions in the same neighborhood over the past six months. Be honest with the seller about the realistic price, even if they don't like it. Correct pricing sells faster and elevates your reputation.

Mistake #4: Poor Client Communication and Slow Response

The number one complaint from real estate clients against brokers globally and locally is poor communication and slow responses. The broker receives an inquiry from a potential client and responds hours or days later, only to find the client has gone to another broker. American studies say that responding to a potential client within 5 minutes increases the probability of converting them to an actual client by up to 400% compared to responding after an hour. This is a shocking number but real in the era of immediate expectations.

The specific mistake: Delaying responses to messages and calls, not updating clients on developments, disappearing after completing a deal, not setting clear expectations from the beginning.

The solution: Establish a clear system — respond to every message within one hour maximum. Send a weekly update to every client even if there's nothing new. Document everything in writing. Use a CRM app to organize client follow-up. After completing a deal, follow up with the client after one month and three months to check on them and build a long-term relationship.

Mistake #5: Neglecting Lead Generation

The new broker closes their first deal and celebrates, then stops searching for new clients while following up on this transaction. When the deal ends, they find themselves with no client pipeline. A week passes, two weeks without activity, then panic begins. Real estate experts say: "The best time to generate clients is immediately after completing a deal, not when the pipeline runs dry." Studies indicate that the highest-earning brokers get 70% of their business from referrals and previous clients.

The specific mistake: Getting absorbed in one deal while neglecting to search for new ones, not building a network of relationships from the start, waiting for clients to call instead of reaching out to them.

The solution: Dedicate one to two hours daily to prospecting for new clients regardless of your current commitments. Start with your immediate circle (family, friends, acquaintances). Explicitly ask every satisfied client to refer three people to you. Be active in local communities and real estate forums. Never stop planting even when you're busy harvesting.

Mistake #6: Digital Absence and Weak Online Marketing

In 2026, if you're not present online, you don't exist for most clients. A broker without a digital presence loses opportunities daily that other brokers are capturing. NAR research says 84% of buyers rely on quality property photos as a key factor in their search. But the most common mistake is believing that posting photos on WhatsApp or Instagram is sufficient. Real digital marketing requires an integrated strategy: educational content, search engine visibility, genuine audience engagement, and numbers you measure and continuously improve.

The specific mistake: Posting random photos without a strategy, neglecting written property descriptions, not registering properties on official approved platforms, relying on a single platform only, not measuring marketing campaign results.

The solution: Use a diversified content model: 30% short property and tour videos, 30% educational content about the market and regulations, 30% direct audience engagement. Register your properties on approved platforms. Invest in professional photography. Understand SEO basics to appear in search results. Measure the results of every post to know what performs and what doesn't.

Mistake #7: Weak Negotiation Skills

Negotiation is the heart of real estate brokerage. But the new broker often enters negotiation sessions without adequate preparation, fears directness, or takes sides with one party instead of being a true intermediary reaching the appropriate solution for everyone. The Real Estate Negotiation Institute (RENI), which has trained over 70,000 brokers since 2006, says weak negotiation is the second cause of lost deals after poor communication. Good negotiation doesn't mean aggressiveness, but good preparation, understanding both parties' needs, and finding creative solutions.

The specific mistake: Entering negotiations without complete knowledge of their client's needs, focusing only on price while ignoring other terms and conditions, emotional reaction instead of calculated strategy, accepting the first counter-offer without pressure.

The solution: Before any negotiation, ask your client: What's the maximum you want? What's the minimum you'll accept? What are the most important non-price terms for you? Then do the same to understand the other party. Remember that terms (delivery date, included fixtures, financing duration) may be more important than price itself for some clients. Document every agreement in writing immediately.

Mistake #8: Trying to Specialize in Everything at Once

Many new brokers fall into the trap of "accepting everything": villas, apartments, commercial, land, offices in all areas of the city and sometimes different cities. They believe more means better. In reality, the opposite is true. Successful brokers who specialize in a specific geographic area or property type build real expertise and a strong reputation much faster. Clients want a broker who deeply knows the neighborhood they're searching in, not a general broker working everywhere.

The specific mistake: Accepting any deal in any area and property type, not building specialized expertise in a specific type, trying to compete with everyone in everything.

The solution: In the first year, choose only one or two neighborhoods and become their foremost expert. Know every street, every complex, every deal price in them over the past year. Know the nearby schools, hospitals, and services. When a potential client asks "Who knows neighborhood X well?" your name should be the first that comes to mind.

Mistake #9: Neglecting Professional Network and Mentorship

New brokers often hesitate to ask for help or mentorship for fear of appearing unprofessional. But this shyness costs them mistakes that would have been avoided with a mentor guiding them. Brokers who find a mentor learn much faster and make fewer mistakes. Beyond a mentor, a professional network with other brokers, real estate lawyers, certified appraisers, financial advisors, and banks is real gold. The broker with a strong network solves client problems faster and delivers higher value.

The specific mistake: Working in isolation without asking for help, neglecting attendance at real estate events and forums, not building relationships with other brokers.

The solution: Find a mentor with at least five years of experience in the local market. Attend REGA and Saudi Real Estate Institute events. Make friends with brokers in different neighborhoods — client exchange benefits everyone. Build relationships with lawyers, appraisers, and financiers to be a comprehensive reference for your clients.

Mistake #10: Ignorance or Neglect of Regulations and Laws

Getting your FAL license doesn't mean you've memorized all regulations. The Real Estate Brokerage Law issued in 1444H and its implementing regulations, Ejar regulations, brokerage contract requirements, real estate advertising standards — these are all regulations a broker must know well. Violations can expose you to financial penalties or license suspension. Among the most common violations: advertising a property without official authorization from the owner, collecting commission without an official approved brokerage contract, advertising with inaccurate information, and mediating in a deal without verifying the validity of documents and deeds.

The specific mistake: Being lax about verifying property ownership and deeds, forgetting to officially document the brokerage contract via the Authority's platform, advertising properties without written authorization from the owner, ignoring approved real estate advertising requirements.

The solution: Regularly review the Real Estate Brokerage Law and its implementing regulations from the REGA website rega.gov.sa. Always document brokerage contracts via the official FAL platform. Never advertise any property without official authorization from the owner. Follow regulation updates regularly as they evolve with the market.

Mistake #11: Neglecting Continuous Professional Development

Some new brokers believe that getting the FAL license and completing Saudi Real Estate Institute courses is the end of the learning phase. In reality it's just the beginning. The real estate market constantly changes, regulations evolve, and technology changes working methods. Real estate field experts state clearly: "Brokers who stop learning start declining." AI tools in 2026 have become essential in writing property descriptions, analyzing prices, and generating clients. A broker who doesn't use them loses time and quality against competitors.

The specific mistake: Stopping training after obtaining the license, not following market and regulation updates, ignoring modern technology tools in real estate work.

The solution: Dedicate weekly time to learning: reading market reports, following real estate indicators, attending Saudi Real Estate Institute seminars. Learn to use AI tools in writing listings and analyzing prices. Pursue specialized certification renewal every one to two years. Investing in yourself is the highest return on investment.

Mistake #12: Neglecting Post-Deal Follow-Up and Long-Term Relationship Building

You closed a deal. Received the commission. Disappeared. This is a fatal mistake in your career. The client who bought or sold with you is a goldmine of referrals if you maintain the relationship. But most new brokers treat the deal as the end, when it should be the beginning of the relationship. The highest-earning brokers get between 60 and 70 percent of their business from previous clients and referrals. This means building a base of satisfied clients is a long-term investment more valuable than any advertisement.

The specific mistake: Cutting off contact with the client after completing the deal, not explicitly requesting referrals, forgetting important occasions and dates for clients.

The solution: Create a post-deal follow-up system: call a week later to ensure satisfaction, then after a month, then after three months. Send messages on occasions. Ask explicitly: "Do you know anyone looking for a property? I'd be happy to serve them professionally." Make every satisfied client an ambassador for you in their circle.

Quick Summary: The 12 Mistakes and Solutions

Here is a quick summary of the twelve mistakes and the solution corresponding to each: Mistake 1 — Treating real estate as a job: write a business plan before starting. Mistake 2 — Underestimating cash flow: maintain a 6-9 month reserve. Mistake 3 — Wrong pricing: study market data before any pricing. Mistake 4 — Poor communication: respond within an hour and update your client weekly. Mistake 5 — Neglecting lead generation: two hours daily for prospecting without exception. Mistake 6 — Digital absence: a diversified and consistent content strategy. Mistake 7 — Weak negotiation: prepare for every session as if it were your first. Mistake 8 — Specializing in everything: focus on a specific area and property type. Mistake 9 — Neglecting professional network: find a mentor and attend industry events. Mistake 10 — Ignorance of regulations: review the REGA website regularly. Mistake 11 — Stopping learning: dedicate weekly time for development. Mistake 12 — Neglecting post-deal follow-up: a continuous follow-up system with every client.

Frequently Asked Questions

How long does it take a new broker to close their first deal?

Typically, a new broker needs 2 to 4 months to close their first deal when working full-time and consistently. It may take up to a full year in some cases. Realistic expectations help you avoid giving up early.

Is it necessary to work with a large real estate office at the beginning?

It's not mandatory, but very beneficial at the start. A larger office provides guidance, resources, a mentor, and sometimes clients. As you gain experience, you can move toward greater independence.

What are the best real estate platforms for advertising in Saudi Arabia?

REGA-approved platforms come first, in addition to platforms like Raghdan which serves more than 15,000 licensed brokers and provides professional tools for listing, analytics, and automated marketing.

How do I know the correct price for a property?

Use the REGA Real Estate Market Indicators platform and Ministry of Justice data on completed transactions in the same neighborhood. Study 5 to 10 similar deals over the past 6 months. If uncertain, consult a certified appraiser from the Saudi Authority for Accredited Valuers (TAQEEM).

What is the appropriate commission for a real estate broker in Saudi Arabia?

The Real Estate Brokerage Law sets the maximum commission at 2.5% of the deal value per broker, which may be split between the seller's broker and the buyer's broker. Negotiate your commission with confidence based on the value you provide.

Should I specialize in a specific property type from the beginning?

This is strongly recommended. Specialization builds real expertise and reputation faster. But in the first year, focus more on a specific geographic area than a property type, because deep neighborhood knowledge is your strongest competitive advantage.

What should I do if a client refuses my commission rate?

Don't immediately lower your commission. Instead, explain the value you provide: professional marketing, market knowledge, negotiation, official documentation, and ongoing follow-up. When clients feel the value, they won't argue over 2.5%.

Conclusion: The License Opened the Door — You Build the Success

Obtaining the FAL license and completing Saudi Real Estate Institute courses is a real achievement worthy of full respect. But it only opened the door. What happens after depends on your mindset, strategy, discipline, and readiness for continuous learning.

The 87% who leave the field in the first five years don't fail because of low intelligence or weak capabilities. They fail because they fell into the mistakes we explained in this article and didn't correct their course in time. You now know these mistakes before falling into them. This is a huge advantage. Use it wisely.

Print this article, review it every month, and ask yourself: Where am I with each mistake? Am I falling into it? And what adjustment do I need to make? Share it with every real estate broker you know, whether new or experienced. The profession needs professional brokers, and raising everyone's level elevates the sector, increases client trust, and benefits us all. We wish you a successful real estate career full of closed deals and satisfied clients. 🏡