Real estate agents and investors alike are concerned with one thing: closing the next sale. But the truth is, the job isn’t always as glamorous as it looks on TV.
There’s a lot more to being an agent or broker than meets the eye. If you’re considering becoming a real estate agent, here’s what you should know.
You need to build relationships
As part of your real estate agent toolbelt, your contact list will differentiate you from your competition. You should start building relationships with contractors for your clients who need them House repairs and improvements. You want to be able to introduce potential buyers to trusted lenders. You need to know home inspectors, underwriting attorneys, and title firms for various aspects of your transactions.
All of these people will be of use to your clients because you have a network of trusted professionals to work with.
You need entry fee
While getting your real estate license is one of the cheaper options for a career change, you still need financial support to get your business up and running. Incorporation costs include things like paying for your website, marketing materials, and real estate association fees.
Many of your expenses will be tax write-offs, such as B. Your regular office supplies and petrol. However, if you are unfamiliar with accounting, you might also want to consider adding a professional to your budget.
Networking is your moneymaker
Networking is one of the most important ways to find new customers. If you are not a social person, you can still become a real estate agent. However, you will have a hard time making connections with people who are in the market for a real estate agent.
Don’t worry if you’re an introvert. You can take your networking skills into the digital world via social media. LinkedIn is full of groups where you can join online conversations. The important part is taking those online relationships off the screen and into the real world if you want to Get more leads for your next open house.
At first, don’t expect to make a lot of money
If you’ve watched Selling Sunset on Netflix and think you’ll make millions by becoming the next hottest real estate agent, think again. Making that much money takes time. Most agents make about 2.5 percent on each sale. If you sell a $300,000 house, you’ve made about $7,500.
That may sound like a lot of money to sell, but consider the work and time that went into that sale. Not to mention, you won’t see any money until graduation is officially complete. It can be months before you actually have the money in your hands.
To make a typical annual salary of $40,000 you need to sell at least one house a month. That’s before any expenses for open houses, gas and time.
Be willing to work under someone first
If you initially became a real estate agent, you were probably excited about the idea of being your own boss. It can happen over time. But first, be ready to work under someone. This can be a great starting point for learning the basics and eventually starting your own business. Plus, depending on the company, they may even pay for your real estate license.
You have to stand by your limits
There is no typical nine-to-five schedule in the real estate industry. Open days usually take place at weekends. Shops close at 7:00 p.m. on the last hour on Tuesdays. If you’re not careful, you could easily be working late nights seven days a week to close the deal.
It’s important to set boundaries and expectations for your customers right from the start. Let them know you’re unavailable on certain days and times, but can get back to you within 24 business hours. Otherwise, they assume you’re available at all times.
This is not to deter you from becoming a real estate agent or agent. It’s about setting yourself up with realistic expectations. It requires relationship building, financial backing and a lot of patience.