A Business Career In Real Estate

What to consider for a Real Estate Agent Career

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. No matter what your intentions, take a little time to become familiar with the realities of being a real estate agent before you jump in and become licensed.

Consider Another Career if you just want to work part time

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,for a few hours a 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.