3 Tips Before Becoming a Real Estate Agent Today
Jennifer is a home buyer and seller on Trulia Voices who is thinking about becoming a real estate agent. She wants to know if now is the right time to get into the business and what skills she will need in order to succeed. These are fantastic questions with no magic bullet answers. I’ll share some my thoughts on this and if you’d like to add yours too that would be great.
So is it a good time to get into the real estate business? From my perspective, I don’t have a clear answer to that question. Just too many variables involved. It’s almost like asking, “How is the weather in the U.S. today?” It really depends on where your standing doesn’t it? So, what I’d like to do is share 3 tips that I learned when I entered the real estate business.
1. Spread the word - Before you even start taking your real estate classes, make sure you tap into your existing sphere of influence. Let everyone you know that you will be getting your real estate license soon. This includes informing all the people and businesses in your local neighborhood. You never know who might be in the market to buy or sell. This will prime your pipeline up and help you get a jump start. Because let’s face it, before you can become a superstar agent, you need to get your feet wet. Working with people that you or your sphere know will help you get over those awkward “green” agent hiccups a lot easier. This worked for me when I first started and it can work for you too.
2. Educate yourself - Research the brokerage models that are available in your local market. Don’t join the first one you see. Whether you choose a mom and pop operation or a national big box brand, find out what they can offer you and create a business plan. Then, make sure you have a mentor within your office that will help you learn the ropes. Watch them closely. Absorb everything they do and say. Let it simmer. Then digest. Apply what you feel comfortable with into your routine. Regardless, having a mentor is priceless. You will be amazed on what that course textbook did not teach you. Don’t get me wrong. By all means, continue to read real estate, marketing and technology books and trade publications. Knowledge is power. The more you know, the better you will be able to serve your clients.
3. Have some reserves - Don’t expect to be bringing home the bacon overnight. The real estate cycle is not an expeditious one by any means. You can go months before you generate any income. First you have to find a buyer and seller to work with. Then find a home for your buyer or a buyer for your seller. Then get into contract. Inspections. Etc……You know what I’m saying, right? So, depending on your financial situation and local market, make sure you have at between 3-9 months of cash in the stash. You need to live and take care of yourself and your family before you can take care of others.
Bonus:
Get Social - Home buyers, sellers and agents are online. They are having a two way conversation with each other. Engage them or someone else will. More on this in a follow up post….
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Michelle DeRepentigny said,
April 23, 2008 @ 1:25 pm
Have a plan and work it consistently. It is difficult in many areas to generate business at this time, but if you find a different niche and create outstanding plan to market yourself, you may reap the rewards.
Be passionate about your choice and don’t feel like you have to defend it, if you choose to go into the buisness.
Todd Waller said,
April 23, 2008 @ 1:27 pm
First - Financial Reserves: make sure that you have savings enough to float yourself for at least 6 months.
Second - Get the right tools for this trade. Calculators, pens and paper used to be enough. Wi-fi laptop, digital camera, smart phone, and gps are the minimums anymore.
Third - research your local brokerages to ensure that you will not be stifled in your creativity for marketing, promotion or general creative sales.
Of course, telling everyone you know and becoming a part of the Twealtors (Realtors on Twitter) won’t hurt you either….Just ask @uncommonagent and tell them @toddwaller sent you!
Matt said,
April 23, 2008 @ 2:01 pm
it all about getting face to face with potential clients
Ricardo Bueno said,
April 23, 2008 @ 9:30 pm
Everything noted above is excellent advice!
The important thing in my opinion is “mentor-ship.” Todd Waller raises this point in saying that it’s a great idea to research the company you ultimately decide to work for. How does the office interact with one another? Yes I know each Agent is independent of the other and they all work for their own account so naturally it’s a competitive environment but…are you going to be awarded the opportunity to learn and grow? Remember, education is key! Though there’s competition in the office, I think you should be able to learn from your colleagues.
Gainesville Real Estate Broker said,
April 24, 2008 @ 4:50 am
Now is the best time to become a Real Estate Agent! It’s always better to enter into a new profession when the market is tougher, because then you know you have what it takes to make it, and you are in the right career. Many Real Estate people didn’t make it after the house bubble busted, but many did! Those that did are the good ones, they’re not afraid to do the work and show customers 40 different homes to get the sale. Real Estate is a rewarding career, and now is the best time to get into it!
Rudy, Social Media Guru said,
April 24, 2008 @ 8:01 am
Hi Michelle - I agree, having a plan is one of the first things you should focus on. Finding a niche is a great way to stand out from your peers. It will also help you stay focussed. Thanks for your tips.
Hi Black Tie Todd! - Financial reserves are super important indeed. Basic tools are necessary, however, you still have to know how to use them efficiently. I’m always amazed at how many people didn’t really research the brokerages they work for. So I agree, please take the time to interview them. It’s a two way street you know
Hi Matt - Word! Online communication can only get you so far. Face time can really make things happen. It has for me….
Hi Ricardo! - Having a mentor is priceless. Two or three are even better
Hi Gainesville! - Slow markets teach you how to become a superstar. No order taking….I think the saying is, no pain, no gain. If you can weather the storm and make things happen, then chances are you will succeed. Either way. It takes a lot of work. No half steppin…….
Mike Lefebvre said,
April 24, 2008 @ 10:24 am
Reserves are key! As a rookie agent myself, I couldn’t do this without my “day job”. Luckily my day job is running a real estate appraisal firm, so I have a foot in the business already. Reserves are preferred to a “day job” though. Based on personal experience, if you have the money aside to live for 6+ months, it’s better to pour 110% into your new career path rather than split your focus and energy.
Learn! Subscribe to all the top real estate blogs you can find (including this one - shameless plug), get on Trulia Voices (shameless plug v2.0) and get on Twitter (@RealtorLefebvre) and follow real estate pros who know the game. I’m trying to be a sponge and absorb anything and everything I can. Good and bad. Surround yourself with people who are smarter than yourself. In the beginning, that’s most everyone.
Web 2.0 tools are awesome! They’ve changed the business. Learn them. Use them. BUT (and this is a very big but, keep the jokes to yourself, Rudy) do not ignore the old-school methods of calling, pressing the flesh, direct mail (yes, old school with actual stamps), etc…a proper mix of old-school and new-school is the way to go (in the humble opinion of a self-proclaimed rookie yet to make a fortune in this business).
PS- Rudy where is the best Guinness in the Chelsea neighborhood? I will be looking for about 10-12 of them next week.
Rudy, Social Media Guru said,
April 24, 2008 @ 10:54 am
Hi Mike!
Excellent points. Thanks so much for sharing your own experiences as a real estate rookie. That is what I was looking for. As you know, I am a huge proponent of real estate education. So I agree with you that an agent should be a sponge and absorb everything they can. Again, I am all for a hybrid agent - old school and new school. Study what has and has not worked for others and then find what works for you.
I’m not sure where the place is but this is a good place to start - http://is.gd/8Hl
I’d be happy to get together w/ you if you have the time and have a toast celebrating your win in the Active Rain Video Contest. Maybe we can even do a video interview
Cool? Have fun meeting Seth Godin!
Ines said,
April 24, 2008 @ 6:41 pm
Rudy, you are going to laugh at me. I was speed reading through this post and read number 3 as “harvest some nerves” instead of “have some reserves”….LOL!
Frank O'Mahony said,
April 25, 2008 @ 6:34 am
Agree with all this sage advice. I would add - do anything to get involved in your first deal! Even if it’s offering to do all the work for nothing for your mentor. There’s no substitute for the andrenalin of working through a contract process that’s *real*, no some class project.
Rudy, Social Media Guru said,
April 25, 2008 @ 8:32 am
Adam Kujacznski said,
April 25, 2008 @ 11:20 am
Great Question Rudy…My thoughts are as follows.
For those only moderately interested in being a real estate agent right now, i would have to discourage them from joining the market in such turbulent times. Real estate has very low barriers to entry which is why during the most recent boom we saw such a huge growth in the number of licensed agents. Now that the market is in a serious downturn we are seeing a huge attrition rate among agents.
This is very good news for tough agents who are established in the market and for new agents who are determined to enter it. Fewer agents practicing in the market allows for participating agents to have extraordinary gains in market share. Also, in a downturn like we are currently in having less competition means that it is cheaper to operate and advertise your services.
So for agents participating in the real estate arena, now is the time to advertise and expand your footprint as an agent.
Geordie Romer said,
April 30, 2008 @ 10:39 pm
Two things. First remember that the failure rate is really really high. You have to really want it if you want to succeed. I will always bet against the new agent. Sorry but it’s true. You probably will fail. If you believe this, but know you are different than all the rest, then welcome aboard.
Second. I think that the Fall is the best time to start your career. The market is a little slower, you have time to ask questions and your broker and others have time to answer. You can network at all the holiday parties and talk to folks thinking about listing in the Spring. You can preview the market and really learn it while there’s less action and you are knowledgeable when the action comes in the Spring. The business I have now was planted long ago and I’m just beginning to harvest it.