There are quite a large number of reasons why people may consider a career in the real estate industry. Much of this can be driven by the potential profit that you can make as a real estate agent, which can be enhanced by the fact that there’s a minimal amount of investment to do so.
Alongside this are the excitement and job satisfaction that the career can afford. While many people may think that there’s little stopping them from starting a career in the industry, there are a few notable factors that you’ll need to consider before doing so.
Like many other career options, there will be a significant number of things to look after when starting. While some may be much more obvious than others, many of us may overlook a certain amount of them.
However, by focusing on and considering a few vital aspects, the majority of people should be able to launch a career in real estate. Though it’s not going to be easy, looking after a few factors should make it somewhat simpler.
Real Estate Licensing
Every state requires a real estate agent to be licensed before they can start in the career, with there also being a variety of national licenses to obtain. As such, this should be the first thing that you look at when considering a career in the industry, as you’ll need to spend a significant amount of time researching and studying the topic.
There is quite a large number of courses that you’ll be able to take to help get your real estate agent license, with many of these being available online. Before you start studying, however, you should first ensure that you know what your state requirements are, as these can vary drastically depending on where you live.
Once you’ve passed your course exam, you’ll then need to pass both a state and national test before you can start working in the niche. Typically, these will be done within a few days of each other.
Choosing A Broker
Following the successful completion of all of your exams, you’ll be given a certain amount of time to become associated with a brokerage. Typically, this will be a relatively short period, so it’s recommended that you start looking for a firm to partner with before you take your exams.
There will be a few notable factors that you’ll have to consider when choosing one, such as what kind of training they provide, as well as tools, transaction assistance, and much more. As such, it’s worth taking the time to meet with different brokerages to see whether they’ll be the most appropriate option for you.
There may also be a variety of fees associated with becoming a real estate agent, which can build up quite quickly. However, some brokerages will offer you assistance with much of this, which should be a significant benefit for a large number of people.
Setting Your Commission
The amount of money that can be made as a real estate agent is one of the most appealing aspects of the niche, with this being virtually uncapped. When entering the profession, however, you’ll need to determine what kind of commission you’ll charge with each transaction.
While many people may quickly become overwhelmed at this decision, there are a few rules of thumb regarding how much you should charge. The majority of real estate agents charge between 2.5% and 3% per sale, which may seem relatively low for many people.
With the cost of many houses, however, this can add up to be much more than you might think, with many people making a significant living selling one or two homes per month.
Picking Your Hours
The hours that real estate agents work can be quite different than the majority of other industries. While many people might think that they’ll be able to work a 9 to 5 job in the industry, this might not be the case. Instead, the hours that you work could differ significantly from day to day.
As such, you’ll need to spend a large amount of time considering which hours you’ll be willing to work, which could have a significant impact on your success.
Getting Over Your Newbie Status
When you first start in a real estate career, you may find it difficult to gain new clients, regardless of how low your commission is or what hours you work. However, this shouldn’t be something that should dissuade you from continuing your career in the niche, as this is a relatively common issue for many people.
Much of this is because the majority of buyers and sellers will want to work with real estate agents who have several years of experience in the sector, which could often mean that you may be overlooked. While this can be disheartening, there are a few ways that you can overcome this, with one of the most notable being to work with an experienced team.
Though this could mean that you may make less money than you might want during the first few years of your career, it should mean that you’ll be able to create a large client base. Alongside this, an experienced agent will be able to show you the ropes during the first few transactions that you’re a part of.
As a result of this, you should be able to gain a significant amount of expertise during your formative years in the profession. Much of this can be driven by who you surround yourself when you start working with a brokerage, which can make the choice something that you’ll need to spend a significant amount of time considering.
Now You’re Ready To Be A Real Estate Agent
Though the first few years of your real estate career may be more difficult than you may have expected, you should eventually see your portfolio expand over time. By doing so, you should be able to develop a large number of clients and referrals, which will be the primary drivers of success.
As such, patience and persistence can be vital when you first start on your career. By using both traits, you should be able to see your career develop quite significantly over time.