Learning how to reach success in real estate doesn’t have to be a difficult task. But, with so much information available on how to become a realtor out there today, it can be difficult to separate the good advice from the bad. It’s one thing to want to become a real estate agent. It’s another thing if you want to become a successful real estate agent.
If you’ve passed the test but you still feel there’s room for improvement, there’s no need to sweat it because you’ve come to the right place. With the information you get here, you’ll quickly learn how to be a successful real estate agent.
Why become a real estate agent?
For those who haven’t yet become a real estate agent, let’s first touch on why you’d want to do such a thing to begin with.
First of all, you’ll run on your own clock. That doesn’t necessarily mean you’ll be working fewer hours, but you won’t have a boss or manager reprimanding you for being late (though a prospective buyer also won’t want to be left waiting for you to show up).
Secondly, your income will be a reflection of your own work. Working for an employee of a company usually means you have a set rate per hour or salary. While it might not reflect one-to-one, the amount of effort you put in as a realtor will roughly translate into higher income. Generally speaking, the same cannot be said about other lines of occupation.
Third, you’ll work closely with your clients on a very personal level. If you hate sitting at a desk all day, then it may be a good idea for you to become a real estate agent. Plus, the level of satisfaction real estate agents get from closing on a deal goes beyond the money factor. Knowing that you’ve helped someone find a new home can be immensely gratifying in its own right.
But what about the state of the real estate industry?
What is the state of the real estate industry?
The short answer: the real estate industry is doing well!
The more detailed answer: with more than 1.6 million real estate agents (and counting) across the United States, it’s clear that the industry is rapidly rebounding from the 2008 real estate crash. After the Great Recession, the number of members in the National Association of Realtors dropped by more than 16%. Today, though, the number (1.36 million) is at an all-time high. Those are promising statistics, particularly if you were second-guessing whether or not to become a real estate agent.
Beyond the sheer number of realtors, it’s also worth highlighting the increasing demand for residential construction (a demand that the construction industry is struggling to meet). In fact, new residential construction rose to a decade-long high in 2017, which essentially means more business for real estate agents!
Admittedly, the labor shortage in construction and the lack of available new homes have had their impact on total home sales in the United States. Though, since 2010, the number of total home sales in the U.S. has seen an overall positive trend with an estimated 6.27 million homes sold in 2018.
Generally speaking, real estate industry trends point towards a bright future, which is fantastic news for anyone who wishes to become a successful real estate agent. But, how do you become a realtor?
Step-by-step guide on how to become a realtor
1. Research if you’re cut out for real estate
Not everybody is meant to become a real estate agent, and that’s okay. It takes lots of determination, grit, and resilience to become a success in real estate. Be certain that you’re passionate about the line of business, as it will test you! Speak with people who have been working as realtors and see what they have to say about the career.
2. Find out what sort of license you’ll need
The qualifications to become a realtor will vary from one state to another, along with what sort of real estate you aim to deal in (residential or commercial), whether you want to become a real estate agent or to become a real estate broker, and so on. But the typical process to become a real estate agent will require you to get a real estate license of some sort and to register with the state board of realtors.
3. Take a pre-license class
This step is fairly self-explanatory. You will have to pass an exam in order to get certified as a real estate agent, and that means you’ll need to take courses. If you already have a brokerage in mind that you’d like to join, chances are they offer some special deal on those classes.
4. Pass the real estate licensing exam
If you want to become a real estate agent, you’ll have to pass a real estate licensing exam. There’s no way around it. The examination will normally cost between $85 and $200, so be sure to study hard that way you can pass it the first time around!
5. Join a brokerage
There are plenty of real estate brokerages to choose from (Keller Williams, Century 21, RE/MAX, etc.), so do your research on which would be the best fit for you. In any case, if the goal is to become a successful realtor, you shouldn’t attempt to reinvent the wheel or to go it alone. Working with a team of experienced individuals will offer benefits that you would otherwise lack. Take the help where you can get it – there’s plenty of it available, that’s for sure.
7. Market yourself
Whether it’s through traditional billboards or TV commercials, or through the ever-increasing trend of social media marketing, you’ll need to get your name and your face out there in order to generate leads. While you can’t put a price on word-of-mouth advertisement, it’s important that you make a conscious and active effort to develop a reputation in your community in order to become a successful realtor.
6 ways to become a successful real estate agent
Use these 6 tips to reach success in the real estate industry:
- Learn from a mentor
- Take a business loan for a real estate agent
- Set a budget
- Outline a business plan
- Have a secondary source of income
- Develop an online presence
Let’s flesh out those points a bit:
1. Learn from a mentor
As mentioned, you won’t want to put in loads of time and energy into finding out how to become a successful real estate agent when most of the answers can be given by someone more experienced in the industry. Find someone who can take you under their wing and show you the ropes.
Don’t make the mistake of thinking that passing the exam means you’ll be able to jump straight into the deep end. Pace yourself, and be humble enough to take advice from those who know better.
2. Take a business loan for a real estate agent
The fact is, the money it will cost to become a successful realtor may put some pressure on your pocket. If that’s the case, consider taking out a small business loan through Become. Applying for business loans through other traditional lenders or online lenders can be stressful, but with high tech algorithms and dozens of top lenders to match your business with, Become makes it easier to apply and more likely to get funded. In short, Become is revolutionizing the business lending process.
3. Set a budget
Those wondering how to be a successful real estate agent should never forget this step. As with any business, setting a budget is fundamental to meeting success in real estate. Since sales will fluctuate, you’ll want to plan your finances ahead in advance of slower seasons.
Of course, the type of business will affect the kind of industry loans a business needs, as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.
4. Outline a business plan
It’s not going to work out for you if the plan is to just wing it. Study the industry. See what other successful real estate agents are up to and how they operate themselves. Prepare a strategy for generating leads. Prepare a plan to recover from a disaster if one were to hit. Have funds saved up in the event that your cash flow was to slow down for an extended period of time. Don’t let yourself be caught off-guard; whatever comes your way, you’ll want to be ready to take it head-on.
5. Have a secondary source of income
Since it will take some time to become a successful realtor, it’s crucial that you don’t allow yourself to become desperate for a sale. Yes, you’ll want to work hard and keep your head in the game. But a potential buyer who feels too much pressure is not likely to turn into a sale. In order to reduce the financial burden on your shoulders, find a way to maintain a constant flow of income. It’ll also be a way to keep your head above the water when slow seasons come around.
6. Develop an online presence
In this age of digital technology, if you’re not online, you’re virtually non-existent (pun intended). Maybe that’s a bit of an exaggeration, but you get the point. The number of people you know without a smartphone or Facebook account can probably be counted on one hand. With the average American adult spending nearly 4 hours on their smartphone every day, it’s essential that you be right there at the touch of their fingers. We live in a culture of immediate results, and it doesn’t appear to be slowing down. Get online today with a website at the very least, but ideally on a variety of social media platforms as well.
The last word
In order to become a success in real estate, you will have to have thick skin. It can be a demanding industry to work in, with challenges that come from competitors, difficult clients, market fluctuations, and so on. But that doesn’t mean you can’t become a successful real estate agent. With the right information and a fair bit of effort, you’ll be the one teaching others how to become a successful real estate agent in no time.
If you found this guide helpful please feel free to share it with your friends and colleagues, and of course, social media as well. Good luck!