Real Estate People become real estate
agents for many reasons. Having control of your own schedule, the
satisfaction of bringing buyer and seller together, the chance to earn
large commissions, and a host of other desires. No matter what your
motivations, take time to become familiar with the realities of being
a real estate agent. There is much preparation to be done before you
are licensed.
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Planning to Work Part
Time?
If so, then real estate
sales will not suit you. A lot of people who are enrolled in real
estate pre-licensing schools think they can be successful agents by
working part time. It's possible, but not very likely. You should
probably consider a different career if you plan to handle real estate
sales 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 either at the office or showing properties every day, just
as they would for any other full time job. You must be available when
clients are ready to view property and that means nights and weekends.
You might have to get up from dinner to show a house, or forgo that
Saturday trip to the movies. This is especially true in the beginning
while you are building a client base for future referrals.
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You'll Spend Money in
the Beginning
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
-
Ongoing fees for local
real estate boards
-
Expenses of doing
business, which vary depending on the agency you choose
-
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
-
Optional training to
learn effective sales methods or acquire special certification
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Even if you sell a house
immediately, you won't be paid until the transaction closes --
typically 30 to 60 days. New agents in most markets should have enough
extra savings to cover at least six months of living expenses because
those first closings are usually slow to start.
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Expect Long Hours
Although you can make
your own hours and you should not allow clients to control your time
(it's as valuable as theirs), there will be many occasions when you
can only show a home or take a listing appointment in the evening or
weekend. Then you will have to stay on-top as negotiations progress
through offers and counteroffers. Clients may request additional
viewings to take measurements, check out the neighborhood, etc. And
don't forget all the paperwork that has to be completed and filed. It
all adds up to quite a lot of effort.
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It's Not Just About
the Sales
Good real estate agents
don't "sell" real estate. They help people find and acquire property.
This takes good people and marketing skills. You will need a lot of
patience as the deal progresses. Approaching a real estate career as
purely a sales job just doesn't cut it. You'll sell some houses, but
will your clients tell their family and friends that you did a great
job for them? Will they come back to you if they decide to sell in the
future? 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. Don't drop the ball and lose a sale due to lack of
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