Commissioning is risky. Most of the work is looking for work every day. Here are the lessons this broker would like to learn before entering the industry.
New to the industry? Start with everything you need to know about the early decisions that will shape your career, including choosing a broker, researching your market, building an online presence, budgeting, getting leads, marketing listings, and more. If you are a team leader or broker owner, New Agent Month will be packed with resources to help your new hires navigate.
Real estate is my second career. I will reach my 20-year milestone early next year. In honor of New Agent Month here at Inman News I would like to welcome all new – and newer – agents. You will be a beginner for at least five years and will learn a lot along the way.
I recently read article that there are more realtors than houses for sale. According to the National Association of Realtors (NAR), the total number of members currently stands at 1.5 million realtorswhile homes for sale hover at $ 1.3 million.
We all know that there is a lot of competition in the real estate industry. It has always been this way, but the good news is that there is always room for more agents and there is no limit on the number of real estate licenses or licensees.
Real estate companies don’t have to pay agents, which means that even when home sales drop, we can just add agents. Realtors’ associations are always happy to have new members because the members pay their dues.
So, for all new agents, I would like to share some of the lessons I have learned. Here are many things I would like to know before becoming a real estate agent.
Follow the business plan
Real estate agents need to have and follow the business plan… If the plan doesn’t work, it needs to be revised. Come up with an income goal and work backwards. Track your progress all year round.
Find your niche
Become a specialist… Most agents are generalists who fear they will miss out on business. Being a specialist can mean less time in the car and more time with customers. It can also mean more targeted and effective advertising and a way to stand out from the competition.
Put people first
Never prioritize business over family or friends… In the end, it’s not worth it – no matter how big the commission is.
Buy health insurance… Save money for health care because health insurance and health care are not the same thing. Consider a Health Savings Account (HSA). Medical costs are still the No. 1 cause of bankruptcy in the United States.
Think about taxes in advance
Find out about your taxes so you can keep as much of your income as possible. Know what is deductible and what is not, and keep excellent records to simplify tax time. Set aside money from each tax fee and pay quarterly, if applicable. Get professional help.
You and your career are unique, show a little creativity and never compare yourself to others…
But that’s not all. For some it will be a shock, but your broker your interests are not always in the heart. He or she may advise you to work on holidays and have an open house every Sunday because it’s good for the company. If that doesn’t work for you, find one that works and do it. There are many ways to start a business.
Some agents do not take full advantage of the fact that they are independent contractors and have a lot of control over where and when they work. Real estate agents are workers, free agents. Take advantage of this freedom and make the most of it. Experiment and discover and avoid altogether meeting and an office water cooler.
Always keep in mind a plan to move quickly and easily to another company or start your own. If you sell real estate successfully, it is mainly because you can take that success with you. Forward and get a brokerage license…
Saving money for retirement is very important. How much is just a guess. Use the guess that you think is best. Real estate ownership can also be part of a retirement portfolio.
I cannot pay enough attention to having a great system for recording income and expenses. There are agents who spend so much time and energy paying taxes in April that they miss out on business opportunities during peak home sales season in many areas.
Real estate agents don’t need to retire. I know several agents who started in real estate shortly after retiring from other roles, while others go through a semi-exhibition phase where they are in their 60s, 70s or 80s, working with fewer clients and taking longer vacations.
By keeping an active license in retirement, former agents can make money referring their clients to other agents.
Working with a 100 percent commission is risky. Most of the work is looking for work every day. Although at first it was scary, I never regretted leaving my job from 9 to 5 and benefits.