If you are interested in a job as a real estate agent, have you ever wondered what the path to becoming one is?
In this post, we’ll look at the various avenues that people might take to become real estate brokers. We will also look at how much it costs and how long it takes to become a real estate agent.
The first step is to determine whether or not you are interested in it. You can ask yourself several questions. For example, are you interested in real estate? Can you see yourself working with people, showing them homes, and negotiating deals? Are you able to handle rejection? Becoming a real estate agent requires dealing with the occasional difficult customer or situation.
If you feel that the real estate agent career path is right for you, then it’s time to begin your journey.
Table of Contents
1. What is a Real Estate Agent, and how do they work?
Real estate agents are professionals who help people buy or sell properties. They assist buyers and sellers with locating the best property for them, negotiating the price, arranging to finance, and handling all other aspects of a real estate transaction.
This is typically done as part of a team that includes mortgage lenders, title companies, insurance providers, and home inspectors. Some realtors also specialize in leasing commercial space.
In today’s market, it is important to have expert knowledge on not only how to buy or sell residential homes but also how to invest in commercial properties such as office buildings and warehouses that can provide income-producing investments for their owners.
A successful agent needs excellent client service skills and an ability to manage complicated transactions from beginning to end. An agent’s most important qualification is trustworthiness; buying or selling property takes a great deal of money and effort, so everyone involved in the transaction must be able to rely on their realtor’s judgment.
Real estate agents are paid for their services by taking either a commission based on the final sales price of the home or apartment they have sold or by charging a flat fee for their services.
2. Qualifications Required to Become a Real Estate Agent?
Typically, you must be 18 years old in order to become a real estate agent. Many states require license applicants to have graduated from high school or the equivalent before applying for a real estate license.
The specific requirements to become a real estate agent vary by state (see link at the bottom of the article for more information). Even if your nation does not least a high school diploma or a GED, having these credentials is strongly encouraged. You can also choose to get an associate degree in real estate, although this is not required.
Many states require additional post-licensing education courses to maintain a real estate license, and while some brokers cover the cost of these courses, others may not. Taking advantage of continuing education courses can help you stay competitive today and throughout your career and save you time and money in the future.
Another important qualification that is essential to a real estate agent is excellent oral and verbal communication skills. In most cases, clients buying or selling the property will not be using their native language to do so. To avoid misunderstandings, it is critical that you have strong listening skills.
In addition to being personable and empathetic with your clients, you should also have a high level of integrity. Clients must trust that the information they provide to their real estate agent is handled carefully and privately because, without client discretion, there could be a risk that all aspects of the transaction might not go through as planned.
3. The Salary of an Average Real Estate Agent
The average real estate agent’s pay isn’t as high as you may imagine. In fact, the median annual income for a real estate broker in the United States was just under $42,000 in 2016. This figure includes both licensed and unlicensed brokers. If we break down this statistic to include only licensed brokers, then the salary drops to around $34,000 per year. Though it may appear to be a large sum, keep in mind that these figures do not include taxes or other expenses such as gas or auto payments.
In addition to low pay rates for those who work full-time hours, there there’s also a lack of job security when it comes to being a real estate agent, which can lead some to rely on additional sources of income to make ends meet. This may mean going back to school for a second or third degree, getting a part-time job, or moonlighting as a real estate investor themselves by flipping homes and taking advantage of the constantly rising prices in many markets across America.
In order to increase their chances of making more money, some real estate agents chase volume instead of high commissions. This means that they’ll work on as many transactions as possible in order to increase their chances of getting clients who will come back to them for future business or referrals. They may even offer discounted commission rates in order to get the sale, but this is risky because it can lead to the customer getting the short end of the stick and then telling others that they got a bad deal.
4. Pros and Cons of Being a Real Estate Agent
– the opportunity for a lot of commissions and close to market-rate salaries.
– can customize work title and work environment to be more appealing or desirable.
– lots of flexibility in hours, locations, and jobs available.
– opportunities to connect with people from all over the world.
– can network with other real estate agents, property managers, architects, contractors, lawyers, bankers, etc.
– the chance to work in an office or outdoors.
– can be a stepping stone into other real estate-related jobs, such as an appraiser, property manager, home builder, etc.
– long hours of being on your feet while working with people.
– some deals may require you to have knowledge of building codes or other types of laws.
– can be stressful in certain situations that may involve disagreements over prices, concerns with the home, etc.
– in some cases, commissions may be lower than usual if the property is not salable or hard to sell.
– may have a difficult time finding work when there are high levels of unemployment.
– if the company goes under, your client contracts and leads will vanish.
5. Real Estate Agent Job Outlook
The projected growth rate for real estate agents is -1% between 2016 and 2026, according to the BLS. I was able to find some information about the projected number of real estate agents for 2017, which is 193,100. This is a drop from last year between 2016 and 2017, where the number was 196,700. An article published recently in Forbes states that the reason why the projected growth rate is negative, or -1%, is due to baby boomers selling their homes. It goes on to mention that there are generally fewer homeowners than buyers who could contribute to this drop in numbers as well. Real estate agents are expected to retire within the next ten years, as many are baby boomers. These same baby boomers will be expected to downsize their homes due to a lack of space as they age which also contributes to the number of homes for sale at any given time.
6. Real Estate Agent Goals and Values
I was able to find a list of goals and values that a real estate agent may hold.
- – drive sales and revenue
- – serve and develop client relations and relationships
- – explore new marketing and advertising opportunities
- – work collaboratively with team members and leadership to achieve revenue targets and objectives
- – meet or exceed sales quotas and performance standards
- – work independently with minimal supervision to ensure timely goal attainment
- – develop expertise in relevant industry topics such as real estate law, negotiation, escrow, contracts, etc.
- – put the customer first
- – excellence in all we do
- – be a trusted advisor to our customers and clients
- – communicate honestly and transparently
- – be prepared to support and drive change
- – work collaboratively with team members and leadership to achieve revenue targets and objectives
- – act with honesty, integrity, loyalty, respect, accountability, and follow through on commitments.
7. Steps for Getting Started as a Real Estate Agent
If you want to get into the real estate agent career path, there are a few steps that must be taken. The first thing is to make sure you have the right qualifications for this job. The next step is to find an established company or broker who will train and sponsor new agents. Finally, before determining which broker is ideal for you, conduct your homework on the numerous brokers in your area. These three steps are all very crucial if you plan on being successful as a real estate agent. There are a lot of additional factors to consider when starting started, but these three items cover the majority of the groundwork. Once there they’re done, then it’s time to put together your sales materials and get to work.
The first step for getting started in the real estate agent career path is to make sure you have the right qualifications for this job. These are not that difficult to meet, but it is important that you know what they are so you can move on with your training program. First of all, there are different types of real estate agents. There are brokers and salespersons. This means that you must be a licensed broker in order to oversee a team of other agents, but this doesn’t mean that you won’t sell houses yourself from time to time.
In addition to being a broker or otherwise supervising an agent team, it is also vital to have a real estate license. This is the same type of license that anyone would need in order to be involved with buying or selling homes. Once you have this license, then it’s time to find someone who will sponsor you as an agent. You don’t want to work for free, so make sure you get paid by signing up with an established company or broker.
Finally, before determining which broker is ideal for you and your profession, conduct your homework on numerous brokers in your area. It’sIt’s also a good idea to meet some of the other agents who will be working with you before making any decisions about where to go. Meeting the other agents is also a good way to get in touch with clients when you are ready to sell houses. Once these three things are done, then it’s time to put together your sales materials and get to work.
8. Steps for Selling homes as a Real Estate Agent
If you want to start selling homes as a real estate agent, then it’s important to put together excellent sales materials. First of all, it’s useful to have business cards that describe your services and the types of properties you work with. You can also hand these out when pitching homes or if someone is looking for a house in your area. The next thing you need is attractive flyers that will tell people about your business. These flyers should be glued to bright colored paper, so they stand out.
The next thing you need is professional-looking ads. You can place these in magazines and newspapers, but this is expensive for the beginner real estate agent. Another option is to have a website where prospective customers can get more information on houses that you are selling. Websites provide an excellent way to get your information out there without having to spend too much money. You can also get emails that will be sent directly to customers who are looking for houses in certain areas.
The next thing is to get referrals from other real estate agents and organizations in your area. These people may want help selling their homes, or they may know people looking to buy. If you get good referrals, then it’s easy to make the sale and make some money. The next step is to find an established company or broker who will train and sponsor new agents. Finally, it’s important to do your research on various brokers in your area before deciding which one would be best for you and your career. Once these six things are done, then it’s time to put together your sales materials and get to work.
9. Should I Become A Real Estate Agent?
If you’re an eager go-getter searching for a job with plenty of room for advancement, becoming a real estate agent could be a great fit.
It doesn’t require any specific qualifications or experience, and there are no age restrictions. You can start working at any age you want, whether you’re 18 or 96! It also has a lot of earning possibilities. There is also the added bonus of flexibility on how much time you spend working. If your family commitments mean that you can only work part-time hours, for example, this could be the ideal job for you because it’s possible to earn money on your own terms.
10. Best Colleges to Study Real Estate
The best colleges to study real estate are the ones that offer a degree in this field. If you have a passion for real estate, enrolling in one of these colleges would be a good investment of your time and money.
The list below includes some of the top schools for this major:
- The University of Southern California,
- New York Institute of Technology,
- Arizona State University, and
- Oklahoma City University.
These institutions all hold high rankings with U.S News & World Report, which is an important consideration when searching for the perfect college to attend. They also provide students with ample opportunities for hands-on experience through internships or studying abroad programs that can set them up well once they enter the workforce after graduation.
In conclusion, the real estate agent career path is an interesting and rewarding one. It offers a wide variety of experiences in terms of working with different people, dealing with difficult situations while still maintaining professionalism while giving you the opportunity to be flexible in your workday hours. You can learn this easily or quickly, so it may take time for prospective agents to get on their feet, but if they are willing to put in that effort, then there will always be room for them due to how competitive the industry is has become.