Did you know that 87% of real estate agents fail? They get into the business thinking about all the money they’re going to make. But the sad reality is that only about 10% of all the real estate agents close on 90% of the sales.
Are you a beginner real estate agent or thinking about becoming one? There are a few things you should know to help you succeed in your endeavor.
Keep reading to learn 8 things that every beginner real estate agent needs to know.
#1 Study, Study, Study
There are a hundred tiny details involved in a real estate transaction.
Laws, taxes, regulations and more apply to each transaction and isn’t always the same in every situation. You are the guide for your client so you have to know all the ins and outs.
Taking real estate courses is the way to prepare yourself for your new role as an agent. Don’t plan on studying just enough to pass the test. If you really want to be a successful real estate agent, you need to thoroughly understand the processes.
Here are a few things you can expect to learn:
- Your responsibilities to your client and your rights
- The zoning laws and regulations in your area and how to understand them
- The proper way to sell a property
- Why you should never stop learning
This is not an extensive list by far. The right course will prepare you for what lies ahead — as long as you do your part.
#2 Be Prepared to Hustle
You’re going to have to work really hard. And, in the beginning, you’re going to have to do it for little to no money.
Those multi-million dollar real estate deals don’t fall into your lap. You have to work your way up the chain. Until you establish yourself and land a few solid deals, you won’t get paid.
This is perhaps the biggest mistake that new real estate agents make. Either they think that landing that career-breaking deal is a matter of luck or they think that they can do real estate “on the side”.
The truth is that luck has very little to do with anything in real estate. Hard work will get you where you need to go. Consequently, you have to think of it as a full-time job.
Doing it on the side means you’ll be losing out on clients and opportunities while you’re busy with something else.
#3 Save Up a Nest Egg
As a result, you need to save up for your personal expenses before you pull the trigger. Real estate agents don’t get a salary. Instead, they work for months before finally closing on a deal and getting their commission.
This means that you need to have enough saved up to live on for at least six months. Many beginner agents don’t realize this and have to take up another job to pay their bills. We’ve already talked about how it doesn’t work to be working in something else with real estate as a side job.
Additionally, you should always have some cash saved up. You never know when you might hit a dry spell. Your expenses don’t go away just because you haven’t closed on a deal in a while.
#4 Be Prepared to Wear a Lot of Hats
As an agent, you need to hone your skills in various areas. You need to be a marketer, a negotiator, an advocate, an advisor, an analyzer, and so on. You need to have a friendly personality, but yet be shrewd during negotiations.
Many beginner agents don’t realize how many things they have to become an “expert” to be successful.
#5 Understand the Broker’s Role
Working with a broker is an excellent way to get your feet wet in real estate. In fact, many jurisdictions require it. You’ll continue to learn while working with a brokerage and the right brokerage will support you and help you grow as an agent.
The only problem is that you have to give up a part of your earnings to the brokerage.
You may dream of stepping out and owning your own brokerage one day. But there is more education involved and you have to get a broker’s license to do so. Check out this useful post to learn more about the differences between brokers and real estate agents.
#6 Networking and Relationships
Networking and forming key relationships is gold in real estate. You need to find clients and new leads constantly and networking and building relationships is a great way to do that.
Be involved in your community. Talk to people about what you do. Be friendly and treat people like more than potential dollar signs.
Build relationships with other professionals in parallel professions. Homeowner’s insurance agents, home inspectors and appraisers, contractors, lawyers, and a whole host of other people are involved in real estate transactions.
If you build solid relationships with them, they’ll be recommending your services to their clients as well.
Move From Being a Beginner Real Estate Agent to an Expert One
There’s nothing that says you can’t be in the 13% of real estate agents that succeed. You just need to have the right expectations — mainly that you’re going to have to put in 110% of the effort to succeed.
Take these tips to heart that every beginner real estate agent should know and you’ll be well on your way to closing deals in no time!
To read more about becoming a real estate agent or how working in real estate works, feel free to check out the real estate section of our blog!