Real estate is a thrilling career choice with the promise of flexible schedules and unlimited earnings. However, success in real estate is about more than sales. It's about becoming a reliable planner, a skilled negotiator, and an excellent networker.
This article will detail eight helpful ways you can win before you arrive. Among them are tips for researching the market and building a solid network. We will also teach you to create a business plan to determine your success and so much more.
If this sounds like what you’re looking for, keep reading.
1. Set Goals
A successful real estate agent needs passion and a plan. That’s why you must define your goals before you commit to the career. Goals help you know what you want to achieve in your real estate career: financial success or building a reputable brand.
These goals are also excellent motivators on days when you need encouragement. They keep you focused and provide a benchmark against which you can measure your success.
As a budding real estate agent, start by breaking down your goals. While a grand objective is admirable, a smaller one is more actionable. They’re less daunting and easier to keep track of. For example, if you aim to sell 20 properties annually, break it down to monthly targets.
2. Education and Licensing
The first step to building your career as a real estate agent is to get adequate education, training, and licenses. Most states require you to take several pre-licensing courses to get started. These courses cover real estate principles, practices, contracts, ethics, and legal issues.
Here’s a step-by-step guide to getting an education and earning your real estate license.
- Choose an accredited real estate school that offers the pre-licensing courses required by your state. Afterward, schedule and take the real estate licensing exam.
- After passing the exam, submit your application for a real estate license to your state's real estate regulatory authority. This step can cost between $200-$400.
- Your state may require new agents to consider brokerage affiliation. This term means you must work under a licensed real estate broker.
- After getting your license, check if your state requires post-licensing education.
- Participate in mandatory continuing education programs throughout your career to stay updated.
3. Research The Real Estate Market
Before you put your license to use, you must understand the industry's landscape to prepare for success. Doing so ensures you know your area’s real estate trends and opportunities.
The first step is choosing the area you intend to work in. Choose a neighborhood, city, or state to buy and sell properties in. You can tap into international markets later.
Once you have your region in mind, follow this step-by-step guide to help you understand it.
Gather Market Data
Collect data on your chosen market's recent sales, listings, and historical trends. Thankfully, there are many resources to get you started. Here are a few of them.
- Multiple Listing Service (MLS) – The MLS is a free extensive database that lists properties for sale. It contains detailed information about each listing’s prices and features.
- Public records – Your local government agencies maintain records of property transactions, assessments, and tax data. These records can give you insights into recent sales, ownership history, and property values.
- Real estate market reports – Many real estate agencies, associations, and research firms publish reports that dive deep into market conditions, pricing trends, and sales activity.
- Social media – You can learn about the changing trends from other professionals and clients online.
Study The Area’s Demographics
You must learn about your target demographic to understand their preferences and pain points. This information also puts the market data you collected into perspective. The term “demographics” in real estate refers to the characteristics of buyers and sellers in an area.
You can use census data to learn about household income levels, age groups, family sizes, and education levels. You can also use the area’s government websites for relevant reports and statistics.
Refer to real estate associations because they often create annual buyer and seller demographic reports.
Find Your Competitors
Remember that real estate is a vast industry with over 3 million active licenses in the United States alone. There are undoubtedly other realtors working in your chosen area. Find them and study their strategies, target audience, and branding. Doing so helps you create your unique selling proposition. You can also learn which marketing methods work and which waste time.
Build a Market Report
Creating a detailed market report is the first building block to painting yourself as an expert. Build regular reports summarizing your focus area's trends, inventory levels, and pricing. Clients and agents will consider you an industry authority.
4. Build a Strong Network
One of your greatest assets as a real estate agent will be your network. Your connections with other real estate professionals will give you access to a vast pool of clients. A strong network means each professional will refer you to their loyal audiences. These referrals are likely to earn you more willing clients than other marketing methods.
Additionally, being part of a network lets you get valuable information from other experts about the real estate market, trends, and upcoming opportunities. This information is crucial to staying ahead of the competition.
That’s not all. Networking also gives you access to exclusive listings you can use as a unique selling point.
Building your network will be challenging, especially as a new real estate agent in a sea of experts. Here are some helpful tips to get you started.
Use Your Social Media
There are over 4.72 billion social media users around the globe. Not only are social platforms for sharing engaging content, but they’re also for connecting with others. However, to do that, you have to share valuable content.
Create professional profiles on social media platforms like LinkedIn, Instagram, and Facebook. Afterward, post about real estate trends and local insights. You can also provide helpful property tips, such as how to prepare a house for sale. Remember to respond to the comments and messages you receive.
You can also join online discussions related to real estate. Give your insights, and respectfully debate with other enthusiasts.
Attend Real Estate Events
Every so often, there are local events that bring together real estate professionals, investors, and clients. Examples of such events include conferences, seminars, workshops, and trade shows. They present the perfect opportunity to expand your network and kickstart mutually beneficial connections.
Meeting strangers, especially in a professional setting, is uncomfortable. Here are some nifty tips to help you prepare and network with others.
- Prepare business cards beforehand. Ensure they follow a professional template and include a call to action. A high-quality card will entice people to learn more about you. Ensure you make enough copies.
- Prepare an elevator pitch. This pitch is your 30-second chance to introduce yourself and what you do. Mention your unique selling point and expertise.
- Avoid being a wallflower. Be approachable and initiate conversations. Show genuine interest in ongoing discussions by asking open-ended questions that prompt people to open up.
- Volunteer at the event. While blending in and watching is comfortable, presenting speeches or awards will benefit you. You will appear as a bold, enthusiastic agent.
- Send personalized emails or messages to people whose contacts you received. Express your pleasure in meeting them and your interest in potential collaborations.
- Share your experiences from the event on social media platforms using hashtags. Doing so lets you connect with fellow attendees and continue the conversation.
Join Professional Associations
Real estate associations provide excellent opportunities to learn, grow your career, and meet other experts. They give you access to exclusive networking events, educational resources, industry publications, and legal support.
One well-known national real estate association is the National Association of Realtors (NAR).
Find an association that aligns with your niche and career goals. Participate in association activities, discussions, and committees. Active participation paints you as a committed member and increases your visibility within the network.
Network With Service Providers
Real estate agents aren’t the only people you must include in your network. Connect with mortgage brokers, home inspectors, contractors, and other service providers involved in real estate transactions. A network of reliable service providers is an invaluable selling point to attract leads.
Network With Local Businesses
Establish relationships with local businesses that provide services to homeowners or potential buyers. Examples of these businesses include interior designers, home stagers, and moving companies.
In addition to referring you to quality leads, these connections are an excellent selling point when marketing your services.
5. Create a Business Plan
You need to do more than set goals in your mind; you must write them in a business plan. A business plan is a detailed document containing your business’s objectives, structure, services, and financial model.
Business plans are not mandatory, but they will give you a clear perspective on how you’ll achieve success. Not to mention that some financial institutions will require this document before giving you loans to use as capital.
By developing a plan, you’ll discover possible risks to your career and plan for them. You’ll also define your key performance indicators (KPIs) that allow you to measure your career’s progress. A business plan is your best asset when preparing for success.
How to Write a Business Plan
The challenge lies in creating one. Many agents lack knowledge of the document’s format and content. Here’s a detailed step-by-step guide to drafting an excellent plan!
Create an Executive Summary
This section is an overview of everything contained in your business plan. Think of it as a snapshot of your strategies. It convinces lenders, partners, and investors that you have a solid path to success.
Although it’s the first section of your document, we advise you to write it last. After writing the entire business plan, you’ll understand your goals and budget better.
Follow these tips to get you started.
- Keep it under two pages. Avoid overwhelming readers with a lengthy summary.
- Start with a hook. Begin your summary with a captivating opening statement that will compel people to keep reading. You can start with a striking statistic, an entertaining anecdote, or a thought-provoking question.
- Highlight your plan’s key points. Mention your mission, vision, target market, and financial projections.
- Mention your unique selling proposition. Your USP shows readers what sets you apart from other agents. This detail will increase their confidence in you.
- Outline your financial projections. Mention any impressive figures, such as projected sales and return on investment, you uncovered during your analysis.
- Introduce your team’s core members and their expertise.
- Wrap up the executive summary with a clear call to action. A CTA tells readers what you’re looking for from them, whether it's an investment, partnership, or further discussions.
Write a Business Description
Next comes a description of who you are and what you do. Even if you don’t intend to show your business plan to anyone, this section will clarify what you want your agency to achieve. Let’s break down how to write an excellent business description.
- Company overview. Mention your agency’s name and location. Also, mention your agency's legal structure, such as a sole proprietorship or a partnership. Finish your overview by highlighting any milestones you achieved.
- Mission and vision statements. Describe the core reason your agency exists.
- Your value proposition. Mention how you intend to solve your client’s pain points.
- Your specialty. Explain the niche you choose to focus on as an agent.
- Your target market. Define who you want to serve as a real estate agent. Mention their demographics, psychographics, and preferences. We’ll tell you how to gather this information later in the article.
Outline Your Agency’s Organization
Describe your agency’s team members and their qualifications, roles, and responsibilities. This section aims to show who’s running the business. Use an organization chart to simplify your team’s structure.
Analyze Your Market
Your market analysis shows you understand the industry you want to serve. Researching the real estate market will allow you to set realistic goals and develop actionable strategies. Market analysis is a broad task that can overwhelm many agents. Here are some pointers to help you get started.
- Start with a market overview. This step sets the stage for the rest of your analysis. Highlight trends, growth patterns, and recent developments affecting your area's real estate.
- Analyze your competitors. Remember that you compete with agents and other agencies for the same leads. Learn their unique selling points, marketing strategies, strengths, and weaknesses. Doing so will show you the market gaps you can exploit.
- Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Learn what you’re good at and what you need to improve. Additionally, analyze which external opportunities you can exploit and market threats.
- Analyze your area’s property pricing trends to help you refine your negotiation and pricing strategies. Research whether you’re servicing a buyer's or seller's market to learn how demand and supply affect property values.
Remember to gather your analysis data from credible sources, such as peer-reviewed journals and government publications.
Describe Your Services
Detail the services you’ll provide as an agent in this section. Ensure your content answers these questions.
- What do I offer?
- What problems do my services solve?
- Who am I targeting with my services?
- What is my pricing strategy?
- What resources do I need to deliver my services?
Define Your Marketing Plan
Describe the traditional and online methods you’ll use to promote your services. Additionally, highlight the key performance indicators (KPIs) you'll use to measure the success of your marketing efforts. These KPIs could include conversion rates, click-through rates, social media engagement metrics, and return on investment (ROI).
Define Your Financial Plan
The financial plan exists to show the profitability of your business idea. Include your financial statements, like balance sheets and income statements, here. Afterward, detail your estimated sales revenue on a monthly or quarterly basis.
6. Build an Online Presence
One of the most significant trends in the digital era is the increase in leads looking for real estate agents online. In 2022, 41% of new homebuyers followed this trend, increasing the need to build an online presence. There are three main ways you can craft a professional bubble online. Let’s discuss them.
Create a Professional Website
A website is an excellent one-stop shop for all your services. It gives an impression of your professionalism. Your website also legitimizes your services. It assures potential clients that you’re a credible, reliable, committed real estate agent.
Setting up a website requires a little know-how. You can build one yourself or hire an expert. Either way, a site is an excellent way to prepare for success.
Create Social Media Accounts
Social media platforms have over 4.8 billion active users. Among them are people interested in buying and selling property. This avenue is an excellent opportunity to engage with them and boost your credibility.
Additionally, you can connect with other professionals on social media and expand your network. Post insightful real estate content on your social accounts to achieve this feat. Remember to comment on other engaging posts.
Optimize Your Content for Search Engines
To exist online, you must create content. However, that’s not enough. You must also refine that content for search engines like Google. These engines are responsible for pushing your services to interested internet users. They determine how relevant your website and content is to do so.
Many agents strive to occupy the top search results. The way to do that is through search engine optimization (SEO). You can achieve this yourself or hire an SEO expert.
7. Financial Planning
Your finances are a crucial part of your success. How much of it you have, how well you manage it, and how you spend it will determine whether you can maintain a career in real estate. You will incur many costs, including licensing, marketing, and transportation. You must learn how to track and control them.
Here are some tips to help you manage your money as a real estate agent.
Create a Budget
The first step in controlling your finances is mapping out how you intend to spend it. A budget is a crucial tool that helps you assess your expenses versus your income. It also lets you prioritize what’s important and set limits to your spending habits.
To set a budget, follow these easy steps.
- Analyze all your financial information, including pay stubs and bank statements. List all your sources of income, including your salary, estimated commissions, or freelance earnings.
- Identify your necessary monthly expenses, such as housing, utilities, groceries, transportation, insurance, and debt payments. You need to incur these costs to sustain your personal and professional life.
- Calculate your business expenses, such as marketing, client entertainment, office supplies, and rent.
- Estimate your tax liability from your income and your area’s tax rates. Set aside a portion of your income to cover your taxes.
- Assign amounts to each expense you include in your budget. Remember to be realistic and leave room for flexibility. Allocate 50% of your income to your needs, 30% to your wants, and set aside 20%.
Consider one of these simple and free budgeting tools to help you create efficient budgets.
Set Realistic Goals
Understand that your income in real estate, especially when you’re just starting, will be unpredictable. Additionally, you’ll compete with many agents willing to lower their rates to secure leads. You must avoid setting ambitious targets that don’t align with your area’s average income levels.
Unattainable financial goals will also burn you out trying to achieve them. You won’t have a proper work-life balance and may grow to dislike your career. Realistic goals are sustainable and will set you up for success.
Set Aside an Emergency Fund
Unfortunately, you will experience inconsistent income due to the commission-based model of a real estate career. There may be months with high earnings and months with little to no income. An emergency fund will cushion you during low-income periods, ensuring you can still cover your essential expenses.
Additionally, it’s a fact of life that unexpected expenses, such as medical emergencies or home repairs, can occur. An emergency fund will prepare you for these unforeseen events without destabilizing you financially.
Diversify Your Income Streams
Diversifying means you create new ways to earn an income. While you can comfortably sustain yourself on commissions, additional earnings will set you up for success.
There are many ways to diversify as a real estate agent. You can leverage your expertise in property management, real estate investment, and teaching courses.
Consult a Financial Advisor
A financial advisor with experience in real estate understands the unique economic challenges and opportunities many agents face. They can help you create a personalized budget that matches your income goals and long-term dreams for success.
Additionally, they can help you understand tax laws, find deductions, and show you how to minimize your tax liability while remaining compliant. Given their expertise, they can also guide you when making investments to diversify your income. They can think long-term and help you set up retirement accounts for the inevitable day you down your tools.
A financial advisor is an excellent asset for preparing for success. They will help you grow wealth, minimize debts, and give you peace of mind when nurturing your career.
8. Learn to Negotiate
You will spend much of your career negotiating as a real estate agent. You represent people in property transactions, fighting for them to get favorable deals. Your results will influence people’s opinion of you and your success. Skilled negotiators get more referrals, higher commissions, and quality industry connections.
Before you muster negotiation, you must understand the stages involved. These stages vary depending on the reason for the bargaining. Here are the steps of a real estate negotiation.
Planning
This stage lets you gather intel on every party involved and the property. It’s also an excellent chance to understand your client’s needs better. Ask about your client’s must-haves and deal breakers. You must also learn any personal or financial concerns that can impact the negotiation.
Research the property’s history, features, condition, and potential issues. Additionally, research its market value by comparing the area’s sales data.
The other party is not off-limits. Learn the other agent’s typical negotiation strategy. Research how quickly they close deals and how often they walk away from negotiations. Anticipate challenges and plan how to overcome them.
Additionally, plan several strategies based on possible responses you’ll get.
Offer
If you’re representing a buyer, you’ll prepare an offer to purchase that’s usually lower than the asking price. If you’re representing the seller, you’ll present the offer to your client.
Remember, an offer to purchase is a legally binding document. Prepare it in the company of a real estate lawyer.
Responses
The seller can either accept, reject or propose to amend the offer. Your client can then take the counteroffer, turn it down, or present their counteroffer in response. A typical negotiation involves back-and-forth exchanges like this until both parties reach an agreement or decide not to proceed.
When both parties reach an agreement, you will typically prepare a formal purchase agreement based on the agreed-upon terms. Afterward, your client (the buyer) will give their earnest money deposit to show they’re serious about completing this transaction. This deposit stays in escrow until the closing stage.
Inspection
After presenting their earnest money, your client must inspect the property. As their agent, you must hire a qualified inspector, preferably one you trust. This professional will evaluate the property’s structural integrity and safety concerns that can affect its market value.
Ensure you and your client are present during this process. After inspection, you will receive a detailed report on the inspector’s findings. If necessary, your client can demand repairs or a price cut if the problem found is irreparable.
If the other party accepts the new terms, the transaction proceeds to the closing stage. If they reject them, you can terminate the contract, and your client will get their earnest money back.
Closing
This stage is straightforward. Your client will complete payment, and all parties will sign relevant documents.
Tips to Learn Negotiation Skills
Part of preparing for success is having helpful tips to help you negotiate. After all, you will go against experienced real estate agents. Draw inspiration from these helpful pointers.
- Focus on value, not price. Learn to show the other party how they’ll benefit from the transaction. Highlight unique property features, willingness to cover certain costs, or a flexible payment plan.
- Justify your terms with objective data.
- Use deadlines to create a sense of urgency that encourages the other party to make decisions.
- Build rapport. Establish familiarity with the other party to create a cooperative atmosphere.
- Avoid outbursts or making spontaneous decisions. Remain composed and remember your client is depending on you to ground them.
- Control the information you disclose. Sharing too much can weaken your strategy.
- Use silence to your advantage. Pockets of silence prompt the other party to reveal more than they intended to.
- Document everything in writing. Written contracts are easier to enforce if either party refuses to meet the agreed-upon terms.
- Be prepared to walk away. Sometimes, negotiations are unfruitful. If you cannot reach an agreement, cut your losses and search for another property for your client.
Conclusion
The journey to success as a real estate agent begins long before you enter the industry. By following this guide, you will be ready to navigate the challenges and get the success that the real estate career has in store for you!
