One of the most complex and significant financial events in peoples’ lives is the purchase or sale of a home or investment property.
Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or
selling real estate.
Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis.
In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property.
Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee.
When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details
of the transactions are agreed upon and the new owners take possession of the property.
Employment is sensitive to swings in the economy, especially interest rates; during periods of declining economic activity and increasing interest rates, the volume of sales and the resulting demand for sales workers fall.
Real Estate Agent Career Advice
People decide to become real
estate agents for many reasons. Many like to work with the public. Some
want to be in control of their own schedules. Others are interested in
buying real estate for themselves and think that agents have access to
"the best deals."
No matter what your motivations, take a little time to become familiar
with the realities of being a real estate agent before you jump in and
become licensed.
Planning to Work Part Time? Consider Another Career
You might be surprised how many people who are enrolled in real estate
pre-licensing schools think they can be successful agents by working part
time. It's possible, but part time success is not likely.
You should probably consider a different career if you plan to work
real estate when you're in the mood, for an hour or two a day or week, or
only on days you're scheduled to answer phones at the office.
Successful real estate agents are at the office every day, just as they
would be for any other full time job.
They might come and go as they work with buyer and seller leads, but
their office is their home base, the place where people who want to buy
and sell real estate find them.
You'll Spend Money for Awhile, Not Make It
Typical real estate agent expenses include:
- Pre-licensing school costs
- Licensing exam fees
- Required business licensing
- Fees to join a local Multiple Listing Service (MLS)
- Fees to join a local Board of Realtors (usually in conjunction with
the MLS)
- Ongoing fees for local real estate boards (quarterly or monthly)
- Expenses of doing business, which vary depending on the agency you
choose, and can include all of your postage, phone calls, copies,
advertising and much more
- A dependable vehicle
- Additional auto insurance to cover increased liability for business
passengers
- Gas expense
- Increased mileage that lowers your vehicle's value
- Errors and omissions insurance coverage
- Optional training to learn effective sales methods or to acquire
special certification
Even if you sell a house immediately, you won't be paid until the
transaction closes--typically 30 to 60 days. And those first sales are
often slow to kick in. New agents in most markets should have enough
extra savings to cover at least six months of living
expenses--more if possible.
Expect Long Hours at First
You will probably work evenings and weekends. You can make your own
hours and you should not allow clients to control your time--it's
as valuable as theirs--but there will be many occasions when you can only
show a home or take a listing appointment in the evening, or when a
weekend is the only time you can write up an offer. If you're committed to
success, you'll do the work.
If You're Only Interested in Your Own Deals
Do you want to be a real estate agent just to work your own
transactions? Go ahead and take the pre-licensing class to learn about
your local real estate laws and customs, but don't actually become
licensed just yet.
Real estate agents must disclose that they are licensed agents. Telling
a for sale by owner seller that you are a real estate agent is sometimes
an immediate turnoff. Deal with them as individuals.
Agents are governed by a state licensing board and are held to a higher
standard of doing business than unlicensed invidivuals.
On the plus side, agents do have early knowledge and complete details
about new listings and their experience gives them valuable insights into
the local real estate market.
It's Not Just Sales
Good real estate agents don't "sell" real estate. They help people find
and acquire properties. There's a big difference in those two concepts.
Being an agent is more like being a combination detective, counselor, and
coordination expert.
- Detective because you have to find the perfect property...but,
- You won't know what your people are truly looking for unless you're
a good counselor.
- Once you've made the sale, you'll shift into coordinator mode to get
the deal closed.
- And back to counselor if problems develop along the way.
Approaching a real estate career as purely a sales job--where you get
the contract and then leave them hanging--just doesn't cut it. Sure,
you'll sell some houses, but will your clients tell their family and
friends that you did a great job for them--or that you simply wanted to
make a sale?
Referrals from past clients make a good real estate agent's income grow
each year. It takes hard work and dedication to get those referrals, so
plan to stick with each job to its completion.
More New Agent Resources
