If there’s one thing successful real estate agents can agree on, it’s this: There are a lot of misconceptions about becoming a real estate agent.
Whether it’s the old stereotypes, like the sunglasses-wearing agent driving an expensive car, or perceptions created by real estate TV shows in which the agent is little more than a deferential tour guide, real estate has an “easy money” reputation.
Nothing could be further from the truth. Successful agents like CRSs understand exactly how much work it takes to build a career. So when counseling someone who is thinking about a career in real estate, CRSs want them to know the truth.
“As we know, there is a relatively low threshold for entering real estate in most states,” says Paul Rich, CRS, with Rooftop Realty in Henderson, Nevada. “There is a large gap between the required coursework and practical application.”
RRC polled CRS agents about the advice they would give to agents who are just starting out, and this is the sound advice that they offered:
This isn’t a side hustle
Because the entrance threshold is low, the industry overflows with part-time agents. While a long-time agent can handle part-time work, newbies need the full-time experience. The early learning curve is steep.
“Do right by your client. Never try and do real estate part-time,” says Sam Turgeon, CRS, with Sunlight Realty in Zephyrhills, Florida. “Real estate is most families’ largest asset and they need a professional.”
Build a solid foundation
Those first years are crucial to establishing your business. You’ll reap the rewards of the work you do on day one—if you do it right.
“It takes time, persistence and effort to grow your business,” says Peggy Wester, CRS, with Realty Executives Integrity in Cedarburg, Wisconsin. “Getting your license does not equal the phone ringing off the hook with requests from family and friends to assist them with buying or selling a home.”
You have to let them know, first. Call, email, catch up over coffee and announce it on social media. And track all this in a database.
“Put systems in place to help manage your clients either by an automated or manual system,” says Tracey Fiorelli, CRS, with Janice Mitchell Real Estate outside Boston. Establish a consistent system to reach out to these contacts multiple times a year.
Get involved in your community so people get to know you. Join the Chamber of Commerce, local networking groups and clubs that align with your interests, Wester adds.
Finally, farm a certain area or neighborhood, consistently and patiently, with a service like Every Door Direct Mail.
Shadow a top agent
Connect with a top agent so you can observe firsthand how an effective business is run and absorb all the small details only a seasoned pro knows.
“Observe and adopt the mindset, habits and work ethic of successful brokers,” says Rob McGuirt, CRS, with Charlotte Select Properties in North Carolina. “Success leaves clues.”
John Young, CRS, with RE/MAX Excellence Realty outside Washington, D.C., suggests working for a top agent for free for the first three months of your career (because you won’t make any money in that time anyway, he says). The knowledge you’ll gain is unparalleled.
Get your finances in order
“First, know that it takes money to make money,” Wester says. “You are now self-employed, and you have to invest in your business in order to grow your business.”
You’ll need money for living expenses, to support yourself while you get on your feet, and money to invest in start-up costs—like branding, marketing and promotion.
Rich suggests focusing on net profit, tracking expenses and income, as well as understanding your basic business metrics (cost per lead, for example).
Treat it like a business
“I talk with many people who consider a career change and explain they are not getting a real estate license—they are starting a new business,” says Kim Cameron, CRS, with Better Homes & Gardens Real Estate Preferred Properties in St. Louis. “You would not open a retail store without reserves and a business plan, yet so many dive into real estate with neither.”
You are a business owner and entrepreneur, maybe more than you are a real estate agent, and you need to think like one.
Just breaking into real estate? Learn how you can strategically grow your business with the webinar recording Creating a System for Success in 2021. Visit CRS.com/learn/recordings.
Photo: iStock.com/ra2studio
