Despite some of the … umm … unfortunate snafus we’ve been experiencing with airlines these days, it doesn’t change the fact that a lot of preparation goes into taking a trip on an airplane to another country.
Naturally, your mind begins to wander to those incredible overwater bungalows, Stonehenge, snow-covered peaks, or other places waiting to be checked off your bucket list. Mine, too. It’s fun to dream about travel, right?
But you don’t go on a bucket-list trip without planning. That’s just a bad idea. You want to make the most of your time and energy while you are there. So, you have prep work to do.
You get a passport, you check travel restrictions, and you book a flight. You make a list of all the things you want to do and buy any tickets in advance. You pack all the proper clothing and shoes. And you head off on your amazing adventure!
Your flight lands and you are really excited … Until you exit the plane. You neglected to check the weather. You did not pack for this season. And you didn’t budget for buying new clothes.
You also forgot that you need a rental car. And you forgot to check the dates your beloved historical site would be open.
Yep. You thought you were ready to make it all happen … Not so much. There were more than a few things you needed to know before you started your not-so-epic adventure.
There are things in life that just go better if you are mentally and physically prepared in advance. And guess what? Becoming a real estate agent is certainly one of those things.
I’m here to help you!
14 Things to Know Before Becoming a Real Estate Agent
Fish or Cut Bait!
I am serious. You have to commit to being all in to be a good real estate agent. If you want to succeed, you can’t dip a toe in and expect to swim in the ever-changing waters of real estate. You need to be prepared to do all of the things with a full-time commitment.
Know Your Business Plan
Before you truly start your real estate career, sit down and write out a plan for the way you will make it happen. This means having the financial means to survive while you are taking courses, passing your exam, and waiting to have enough clients to bring in a full-time income.
You’ll need to have some goals in place with a plan for reaching each of them. Having some sort of business plan will help to keep you moving forward and give you a sense of accomplishment.
And when you include your personal mission statement in that plan, it will also be an anchor for you, keeping you firmly rooted in your reasons for starting a career in real estate.
Your business plan can define who the people are you want to serve and how you want to make that happen. It will be the document you return to when you need to get focused on what’s important.
You Need to Build Your Relationship Database
Before getting started in your real estate career, it’s a great idea to begin building a database of people. You’ll include names, phone numbers, addresses, and what your relationship is.
It’s important for you to know what purpose this name serves in your database. Record if this person is a potential client, a builder, a realtor, a contractor, a plumber, a home inspector, etc.
In the beginning, your database will serve as your client relationship management system. It will be your first line of outreach. And Your database will grow as your business grows.
You’re the Man
Quite literally, you are the man because you are your own boss. If all of your work experience up to this point has been in an environment where you report to other people, then being a real estate agent may come as a shock to your system.
This is both appealing and intimidating for people. When you want to make your own hours and set your own goals, real estate can feel like a breath of fresh air. But you must be prepared to take the business side of being a real estate agent as a serious endeavor.
You Are Responsible for Your Paycheck
Say goodbye to an hourly rate of pay or a salary when you become a real estate agent. You will be earning a commission on your transactions and sales. The higher the sales price of the home the more money you will make.
Your commission should typically be 3%, sometimes 2% of the sale price. The more transactions you have, the more money you can earn. Of course, this is both amazing and scary because you have no guarantees. Sink or swim, it’s up to you.
Have a Nestegg
At the beginning of your career, you need to have some money in savings to float you while you are getting clients and working up to your first commissions. You will also want to keep some money in the bank for times when the market isn’t as favorable.
This may also be a reason to have a part-time job or side hustle that keeps money coming in while your real estate earnings are skimpy.
Be Willing to Learn
You are not done learning after you take your first real estate exam … not even close. Real estate is a career that requires almost constant learning.
You need to keep up with trends and changes in the industry by completing additional courses and workshops. Never stop improving and expanding your knowledge of the world of real estate.
Get Your License Where You Live
This just makes sense, doesn’t it? You need to get your real estate license in the state where you plan to live and work. Every state has its own real estate laws, so you’ll have to learn laws and regulations specific to your state. Should you decide to move, you will more than likely need to test again for your license in that new state.
The Lying Game
Your clients are going to tell you exactly what they want for their house. They will probably be very set on it. You’ll work your tail off to find them the perfect house.
And then you’ll find that house … and they won’t pull the trigger. Then you’ll get to listen to them tell you how remorseful and regretful they are. And they will hopefully learn their lesson! The next time they find a house they really like, they’ll make an offer.
Don’t Be Shy
Real estate is not an “I’ll let my work speak for itself” kind of industry. You cannot assume people know you are a realtor or that you’re any good at it.
You can’t hide your real estate light under a bushel and hope clients come to you. You need to basically let the world know that you are officially a real estate agent. Tell your friends and family to tell their friends and family. Word of mouth is some of the best advertising you can get your hands on.
Find a Great Lender
In the land of real estate, lenders can either make the world go round … or stop it in its tracks and lead you and your client into the land of total aggravation.
A bad lender can be your worst nightmare. Conversely, a really great lender will make your closing go much smoother. Build a solid relationship with this lender and use them at as many closings as possible.
You Need a Mentor
Please find a mentor as soon as possible. Do your research on potential people to fill the role. Check their actual sales numbers and their depth of experience. Conduct some sort of interview to determine if your personalities mesh.
A good mentor will be there to guide you and help you avoid potential pitfalls. You can ask them questions and learn from their experiences.
Don’t Spend Commissions Until Closing
As tempting as it is to plan that vacation or get a new car because you have a big sale about to close … don’t do it! You never know what is going to happen. Closing could be delayed for months. Or your closing could completely fall through.
Yes. That actually happens. Think about it. You’ve heard the stories, and you know it happens. So, be smart and just wait until everything is signed on the dotted line before you spend money that you don’t actually have.
Stand Out in a Crowd
There are tons of people pursuing a career as a real estate agent, and more and more people take the exam every month. That’s a lot of people. How will you differentiate yourself from all of those faces?
You need to do something that makes you stand out from the crowd. Figure out how you can serve people better or in a different way from your competitors. Then tout that in your marketing.
That’s All Folks
Those are the main things you need to know before you become a real estate agent. And there is one more thing I didn't mention.
Being a real estate agent can be really fun! Your schedule is flexible and you get to make people’s dreams come true. How great is that?!
