Welcome back to InboundREM! Today we’re going to mix it up. I have my fearless production assistant here, who will remain off-camera.
We’ll hold a Q&A session, discussing questions we’ve picked up online from various forums like Reddit. Let’s dive right in.
Who Shouldn’t Become a Real Estate Agent?
Who shouldn’t become a real estate agent?
First, convicted felons face significant challenges in obtaining and maintaining a license.
Second, individuals with little to no understanding of real estate should reconsider.
Third, if you have no love for real estate, it’s best to avoid this career.
Lastly, if you have minimal business experience and think real estate will be a quick way to make a lot of money, think again.
It’s advisable to take a few courses to gain more insight before deciding.
Who Should Become a Real Estate Agent?
So, who should become a real estate agent? Established business owners should consider real estate a great way to leverage their business acumen.
Additionally, individuals with real estate-related careers, such as home designers, appraisers, or home insurance agents, are excellent candidates for this profession.
How Do I Become a Real Estate Agent?
Now, how do you become a real estate agent? The licensing and testing process varies from state to state. In California, for example, it typically takes about six months.
While I didn’t pass the exam myself, I studied for it and intended to take it. The process involves going through a licensing school and studying the necessary documentation.
To find specific requirements, simply Google, “How do I get my real estate license in [state name]?” Always start with your state’s official government site.
To summarize the steps:
- Research your state’s requirements.
- Complete the pre-licensing course.
- Pass the state-specified real estate exam.
- Get fingerprinted by an approved vendor.
- Find a sponsoring broker.
- Activate your real estate agent license.
- Join a real estate brokerage.
How Much Does It Cost to Be a Real Estate Agent?
How much does it cost to become a real estate agent?
This varies city to city, but generally, it can range from $400 to $1200 in total. This amount typically includes course fees and licensing fees.
Costs may vary depending on whether you decide to join a brokerage. Some brokerages may charge for informational products or require payment for a CRM.
Be mindful of additional fees based on your licensing status and where you choose to operate.
At InboundREM, we advise spending as little money as possible when starting a new career or business.
Can I Pursue Real Estate If I Don’t Come from Money?
Absolutely! Real estate is unique in that it’s all about having customers. If you have drive but no money, you can go door-to-door.
If you find someone ready to buy or sell their home, you can take their name to your local brokerage and earn a 25% referral commission.
In California, that could mean $3,000 for every closed deal.
If you want to make money in real estate with no initial investment, find a prospect, then contact the most popular broker in the area.
Simply say, “I have a lead. I’m not a broker or agent, but I want a 25% commission if the deal closes.” You’ll likely find they’re open to that arrangement.
How Much Money Should I Save Before Getting My Real Estate License?
Before getting your real estate license, it’s wise to save money. For any new business, the practical advice is to have six months to a year’s worth of income, especially for a commission-only job.
While this may be unrealistic for many, aim to save at least enough for 60 days of expenses. It’s better if you maintain a job while studying for your license.
Transitioning gradually allows you to gain experience and knowledge about generating leads and selling houses while having a steady income.
How Long Does It Take to Get Your Real Estate License?
It generally takes six months to a year to obtain your real estate license.
What Are the Benefits of Having a Real Estate Agent?
The benefits of having a real estate agent can be significant. When agents do their job well, they are similar to reliable service providers, like a good mechanic.
A committed real estate agent will proactively answer questions you didn’t even know you had and conduct thorough research on your behalf.
However, it’s frustrating when agents fail to show up or provide little service while still charging substantial fees.
What Are Some of the Main Challenges of a Real Estate Agent Career?
The primary challenge of a real estate agent’s career is time. Homeowners and buyers often don’t understand the demands placed on agents.
In high-cost areas like California, consumers are aware that agents work on commission, leading them to expect immediate assistance, often calling at all hours with various demands.
Managing properties while also trying to sell them adds even more time constraints. Successful realtors work tirelessly, often across weekends and holidays.
How Do I Choose the Right Real Estate Brokerage?
Choosing the right brokerage should depend on your personality type. If you’re an independent thinker with experience, consider a 100% commission broker who charges only for a licensing package.
For those more digitally savvy, digital brokers like eXp or Real can be excellent options. Established franchises like RE/MAX or Keller Williams may also be beneficial, especially for luxury markets.
Ensure the brokerage offers training and support rather than just leaving you at a desk waiting for leads.
How Exactly Do Real Estate Agents Get Paid?
Real estate agents typically earn a commission after the deal is finalized and paperwork is signed.
Some brokers may “float” the income, meaning they pay out before receiving funds from the bank, while others wait for the bank payout. There’s no singular answer, as it varies by situation.
How Do Different Real Estate Commissions Work?
Different real estate commissions are negotiable. Just as clients can negotiate rates with agents, agents can negotiate their commissions with brokers.
If an agent has a solid track record, brokers will want to recruit them, creating a win-win situation where the agent can negotiate favorable terms based on their past performance.
This wraps up our discussion on the truth about becoming a real estate agent. If you have more questions or need further information, feel free to reach out!