So you wanna be a Real Estate Agent?

It is not terribly hard to pass the exam, it’s not terribly hard to learn the business. It can be fun sometimes but don’t let all of that mislead you into thinking it’s an easy way to make money. It’s not. It is work, it can be fun and this is not to discourage you, simply to provide prospective.

It gets expensive quickly

• You have dues to pay to your local, state and national boards. You can’t NOT join a board if your broker is in it. You must work for a broker at first. You can’t use the term Realtor® if you don’t join the NAR. Get ready to spend money to get started-there are start up and application fees, background checks too.
• You have MLS fees to pay in addition to the board dues. This is so you can have access to the MLS and use the information- MLS is critical to your business, some boards will let you be a board member but not have access to the MLS but that’s a recipe for failure. So again, get ready to spend money just to get started.
• You have to pay a fee for use of the key that opens lock boxes- you can’t get into houses without this. You can save money by getting the app on your phone for a lesser fee and the attachment to convert Bluetooth to infrared (some MLSs have moved to Bluetooth boxes already!)- however you might need to up your data plan. So again, get ready to spend money just to get started.
• Advertising is expensive. Different things work in different markets, with different houses. Sometimes print is the way to go, internet is the way to go...some places a sign in the yard will move the house. This will be your biggest money expense if you are to be successful.
• You need a web presence that stands out –that’s not free. Having a free profile on real estate websites helps but guess what…every other real estate agent has free ones too- so if you want to stand out you need to pay a little extra. You don't have to spend a lot of money but you will most likely need to spend some.
• Some offices charge you regular fees for E&0 insurance (that they require you to have), office supplies, advertising that the office does –your portion, some charge a desk fee or office space rent.
• Some offices let you keep all of your commission and get their cut from the fees.
• Some offices charge fees and split the commission with you – there is no set standard for the split. Some offices pay for your stuff and give you a big split but don’t market the office at all.
• Continuing education is an ongoing expense however most professions have this and it’s not really that much in comparison. Fancy designations that others tell you that you should have can get expensive so if you’re going to do this, are sure to look around and do a cost vs. effectiveness of any credential you seek to get. Some are worth it some are just flavor of the month letters to stick behind your name.
• Your cell phone just became surgically attached to your body- better up that calling plan because if you are busy you are going to see some of the largest numbers you’ve ever seen on that bill. It's only money...if you are making it that's great!

It’s competitive
You might be one of the best at what you do or at anything you try. That’s great! That gives you a good start. This is a competitive business, realtors cooperate with one another and that’s how they stay in business but there are still more agents out there than what are needed. There are plenty that are just barely scraping by and they will negotiate a listing agreement that means almost no income for them just to be the one with the listing. If you are socially connected and involved in your community you stand a better chance at being successful. You must get out and make connections, follow up on leads. Take a look at the ones you see as successful, they live and breath it-if that's not your style it might not be a good idea.

Real estate schools make money by selling seats in the class, not by placing you somewhere. Whether or not you are successful does not affect them. Even offices make money by adding to their staff even if you only have a few sales. When one agent gets a new listing the office sign goes in the yard. Calls come into the office- so the more agents in the office, the more the phone rings. However, if your phone is not ringing you haven’t benefited much.

It takes all types
You don’t have to be the cookie cutter agent, but you do have to get out and work it. You need to get listings, find buyers and close deals. You’re really self employed and have to be a go getter. There is a good living to be made, it can be fun, it offers flexibility but it’s not a walk in the park. I’ve had several clients that became interested in possibly doing this because they see that I enjoy it. However they do get a false impression about how much time it takes, how long you have to wait between getting paid, how many deals fall through and just how unstable the income is. The income is very unstable no matter who you are. Just this last year, I’ve shown several houses in various places in the metro that were mentioned as “short sale” houses and it turns out that many of them were owned by Realtors. The market here didn’t go through the crisis it is going through in other states, it simply slowed down, grew less, fell a little in a few places. These houses that I’ve seen were not new realtors just getting started; they were a mix of seasoned pros and new kids. Again, not meant to discourage, only meant to slow you down, open your eyes, go into this business with a lot of planning. If you're gonna do it, go for it, but plan on putting in the investment. This shouldn't be viewed as a career change, it's a new business venture so don't start it without a business plan. It's heartbreaking to see new agents walk in the door with no plan and stick it out until they are nearly bankrupt because they don't give up since the upfront cost to start was so high. If you have a good plan, go for it, if not, get one first!