What Is It Like Being a Real Estate Agent?
Those who pursue this career find that they are met with a rewarding and varied role that offers a great deal of job satisfaction. Many real estate agents will be self-employed individuals who choose their own hours. This makes it an ideal role for those who perhaps have other time commitments and need to be flexible with their working hours.
What Does a Real Estate Agent Do?
A real estate agent is responsible for bringing together buyers and sellers or renters and landlords. They help people to buy, sell or rent properties.
How Much Does a Real Estate Agent Earn?
Typically, a real estate agent will be paid on commission. This means that they take a percentage of the value of any sales or rentals that have completed. According to data gathered in 2020, the average annual income for a real estate agent is $50,000, with the highest earning agents achieving an income of more than $120,000 per year. This figure is often higher for those who choose to become a real estate broker. The process of becoming a real estate broker rather than an agent will involve additional testing.
Positives of Being a Real Estate Agent
Choose Your Own Hours
Real estate agents are self-employed. This means that you will be able to work as much or as little as you want to. If you suddenly have unexpected time commitments, you will be able to take time away from working to deal with them.
Easily Accessible Career Path
In comparison to other career paths, becoming a real estate agent is simple. There is no need for a college degree and gaining your real estate licence is a relatively fast and affordable process.
Variety
Each day will be different. Although you will follow many of the same processes, the buyers, vendors and houses will change. This helps to keep things interesting and varied.
Helping People to Achieve Their Dreams
Being a part of this process will mean that you are an integral part of the process of helping individuals to achieve their dreams. Whether this is moving into their first rental, buying the home they always dreamed of or selling a property they no longer need, it would all be impossible without a real estate agent.
Negatives of Being a Real Estate Agent
No Sick Pay
Due to being self-employed, you will not be entitled to sick pay or other workplace benefits. Although the role offers maximum flexibility, you must ensure that you plan for unexpected eventualities.
Rejection
Not everybody will want to work with you. This means that there can be rejections at times, which are frustrating or difficult to deal with. You need to be sure that you are able to handle rejection well without being affected negatively by it.
Competitive
It is estimated that there are more than two million licenced real estate agents in the United States. Because of this, finding and retaining clients can be highly competitive. Agents have to work hard to stand out from the crowd. This can mean specializing in a specific type of property sales or designing a personal brand that appeals to a specific kind of client base.
Not Everyone Is Easy to Work With
As a real estate agent, you will need to interact with a wide variety of people and they won’t all be easy to get along with. You may find that some clients are demanding, other agents may be poor at communicating with you or may not have the same values as yourself. It is important to understand how to negotiate and interact with people even if they aren’t particularly pleasant.
How Long Does It Take To Become a Real Estate Agent?
For most people, becoming a real estate agent is a relatively quick process. Most people will find that they are able to complete the process of gaining their licence within four to six months, although this may vary depending on the state they are being licenced to work in. The process can often be faster if you take pre-licensing courses online.
Which Skills and Expertise Does a Real Estate Agent Need?
Although, in theory, anybody can become a real estate agent, that doesn’t mean everybody will be naturally suited to it. There are some skills that are important to work on and gain before working as a real estate agent.
Communication
Good communication is vital when it comes to being able to work effectively as a real estate agent. You will need to communicate with a wide variety of people with varying degrees of understanding as to how the process of buying or selling a property occurs. If you are unable to communicate clearly, concisely and accurately, then it can lead to confusion and delays.
Listening
As with communication, listening is a vital tool when working with people who are looking to secure the sale or purchase of a property. Without the ability to listen, you won’t be able to understand what it is that a client is really looking for or how best to meet their needs.
Emotional Intelligence
Buying or selling a home is a highly emotive experience. This is why it is important to have emotional intelligence. The skills obtained by someone who has emotional intelligence can help real estate agents to understand what has triggered an emotional reaction in a client, empathize with the issues and them to relieve negative emotions. It is also useful for managing your own emotions when situations may become stressful or difficult.
Negotiation
Negotiation is an important skill for real estate agents to have. They will need to negotiate with and on behalf of vendors and buyers. It is important to stay focused on the needs of the client, as well as the preferences of the vendor or buyer, to achieve a conclusion that leaves all parties satisfied.
Patience
Sometimes, patience is the key between making a sale and losing a client. Not every client will want to move as quickly as you would like, and choosing the perfect property can be difficult. It can also take time to find a buyer when selling a property, with factors such as housing market stability affecting the number of potential buyers at any time. There can be hold-ups with processing paperwork that can be frustrating to deal with at times. Patience can help to diffuse a stressful situation when clients are frustrated with a lack of progress.
Industry Knowledge
Real estate agents should have an understanding of the industry they are working in. This will relate to market trends, the housing market in the area they are operating in and financial news. This knowledge will help them to understand the needs of their clients, as well as the limitations of their area.
Process to Becoming a Real Estate Agent
The exact process to become a real estate agent will vary slightly from state to state. But, there will be some features that are the same no matter where in the US you are hoping to be licenced. It is important to fully understand what the process is for your state so that you can take the right steps at the right time. If you are unsure of the requirements for your state, then you can find them through your state’s regulatory office website or the Association of Real Estate Licence Law Officials. Most states will have requirements regarding:
Being over the age of 18 Have residency status – You will need to be residents of the United States Pre Licensing course requirements for each state Exam requirements and eligibility for them Background checks – This will often include criminal history checks and fingerprint testing Continuing education requirements The process of achieving the next levels of licencing
Have the Funds to Get Your Licence
Although gaining your real estate licence is cheaper than getting a college degree, it still comes with associated costs. It is important to be aware of these so that you can budget appropriately every step of the way. Typical costs associated with the process include:
Pre-Licensing Course – $350 Licencing exam – $100 to $300 Activate the licence – $200 to $400 Join a brokerage – $25 to $500+ per month Consider becoming a realtor – $185 (Optional)
Complete a Pre-Licensing Course
Every state requires their real estate agents to complete a pre-licencing course before they can apply for their licence. The exact requirements for this will vary, but it will typically involve completing a specified number of hours and potentially a variety of classes. It is possible to complete the licencing course online or in person. The cost for each programme may vary. Many individuals find that online options cost less than those at a community school.
Complete and Pass Your Licencing Exam
Once you have completed the pre-licensing course, you will be ready to take your licencing exam. The exam will usually be computer-based and composed of two separate sections: one that looks at general real estate principles and a separate section that covers the regulations relating to your state. To gain a real estate licence, you must pass both sections of the exam. If you fail one or both sections, you will be able to retake the exam. The number of retakes that you are allowed will vary depending on your state.
Activate Your Licence
As soon as you have passed both parts of the licencing exam, your licence can be activated. You will need to submit proof of your exam pass, as well as any additional documents that are required by your state. Once the application is approved, you will receive your certificate in the mail and your details will be searchable on the licences section of your state’s real estate authority.
Start Your Career
Now that everything is in place and your licence has been activated, you are ready to start your career.
Build a Website and Social Media Pages
The first step of any business in the modern world should be to build a website and social media pages. Most people will start their journey to find a real estate agent by searching on the internet. Your website and social media pages need to be professional, eye-catching, informative and authentic to your personal brand. They will be the first impression that potential clients will have of you. If you are unsure how to build a website or how to approach social media from a business perspective, consider hiring someone to help or taking an online course.
Work With a Licenced Real Estate Brokerage
Once you have your licence, you will be required to work with a brokerage. This can be either an independent firm or a franchise. An independent brokerage will often allow their real estate agents more freedom, but a franchise will usually offer more training and support. Another consideration is the potential commission split. A real estate agent earns commission. This is their income. But, being a part of a brokerage will involve splitting your commission. It is important to know what this split is and be sure that it is one that is suitable for your needs.
Join a Listing Service
Real estate agents should make sure that they join a listing service. A listing service is a database of agents who cooperate with each other. This allows agents to see one another’s listings in order to match buyers and sellers more easily.
Find a Mentor
Working with a mentor can help you to progress through your career. You will be able to ask for advice and support from someone who has already built experience and knowledge. It can be comforting to know that you have someone that you can go to if you have a situation you haven’t encountered before.
Network
No real estate agent is able to work entirely alone. There will be things that your clients request or need that are outside of your remit. Being able to offer suggestions can help to build trust and commitment with clients. For this reason, it’s important to have an extensive network of contacts who can help you out when you need it. In return, you will also be helping them. Useful contacts would include:
Bankers specializing in home loans Organizational companies Home removal firms Interior designers Garden designers
Continue Learning
As with many career paths, there will be a need for continued learning throughout your career as a real estate agent. Changes in legislation can happen, and it is vital for agents to be aware of this. Continued learning can help you to progress throughout your career and make the most of opportunities that may present themselves.
What Is the Difference Between a Realtor and a Real Estate Agent?
Once you have gained your real estate licence, you may be considering whether or not to progress to becoming a realtor. In practice, they are very similar jobs. Both real estate agents and realtors work to match buyers and sellers in the housing market. The main difference between the two is the level of certification that is required. A realtor is a member of the National Association of Realtors. This means that they are also subject to a strict code of ethics. Many real estate agents choose to gain realtor status because it can offer them extra support and assistance. Due to the National Association of Realtors’ status as a trade organization, they are able to work with individual states to gain legal protection and professional benefits.
Final Thoughts
Becoming a real estate agent is a popular way of launching a self-employed career that leaves you with the freedom to be your own boss. Taking the time to understand the exact requirements and process for your state will make becoming a real estate agent less stressful. You will fully know what it is that you need to do and when you need to do it. Once you have obtained your licence, you are ready to help people find their dream homes.
