For Real Estate agents...

I am about to step down from my position at work to finally finish up my schooling and begin my career in real estate, which I have been eagerly anticipating. So now what? How did you go about finding a sponsoring broker? How did you decide which agency was the right fit for you? What else do I need to know? TIA

Re: For Real Estate agents...

Most real estate companies are constantly recruiting. The more agents, the better... the broker/owner stands to profit by having more agents on board. Even if someone brings in only one or two transactions a year as a part-time agent, that will more than cover the minimal cost of having an agent on board. We are not salaried employees, we don't get benefits, so the cost of adding another agent is relatively low.

If you go on the websites of real estate companies in which you are potentially interested, I am sure they have information on how to contact them about a career in real estate. I know at my firm, we have a recruiting director, and he often runs seminars and other programs for people interested in real estate careers with us. Many companies advertise on job sites, classifieds, etc. to attract new agents. Many also recruit through the local real estate schools, such as LISOR.

I was still practicing law when I started thinking about a career in real estate. I was interested in my company, because it was very close to my home and it had a lot of listings in my neighborhood. So I checked out the website, and they had a "real estate aptitude test" online, which I took for fun. The then-manager called me to speak to me about my interest, invited me in for an interview, and I decided it was a good fit.

When you are speaking with different companies, you definitely want to make sure it's a good fit for you. It depends on what you are looking for. For example, some offices offer a lot of training and mentoring, and some don't (you are pretty much on your own). As a new agent, you may want more training and support, so you might want to ask about the specifics of that.

You also want to get a sense of firm culture. Some places are very cut throat, others more laid back. Some cultivate a team atmosphere -- for example, my office has a weekly sales team meeting where we go over new policies but also celebrate accomplishments, share concerns, etc. Some companies hold ethics in high regard, which was very important to me as a licensed attorney, but unfortunately, some do not! So if you are seriously considering going with a company, you may want to ask to observe (office meetings, everyday interactions) before you make your final decision.

You will want to find out about the commission structure. What type of "split" can you expect to get (commission split between you, as the agent, and your broker)? Will you pay franchise fees (common with larger companies, but not an issue with mom-and-pop type places) and what benefits will you get for them?

Most companies expect you to generate most of your own business, but there are also "company leads" that come in (e.g., when a prospective seller calls your company to express interest in listing a house), so you will want to find out how they are handled/distributed. As a new agent, will you have access to any of those types of leads.

Good luck, and let me know if you have specific questions!

Re: For Real Estate agents...

Thank you so much Christine. You were very helpful.

For Real Estate agents...

Sorry to hijack your thread. How long does it take to get a career in real estate started? On average when can you start making money?

Re: For Real Estate agents...

It's really hard to answer that question. A lot depends on the individual agent and how much time they have to put in, and how motivated they are to generate business.

I mean, I would say it takes at least 6 months to start making money. Even if you have a client from day 1, and that client buys a house from you immediately (or sells their house immediately), it's probably going to take 2-3 months from the time of the accepted offer until the time of the closing. And as an agent, you don't get paid unless a transaction closes. (Rentals can be done very quickly and you are paid immediately, when the client signs the lease, but the money is usually so much less than what you would get for a sale. So I focus most of my business on sales and handle rentals usually only when they are referrals from a past or current client or for a friend.)

In reality, you probably won't have clients who are ready and able to sell or buy on day one when you start working in real estate. As an agent, you are largely responsible for generating your own business/finding your own clients. It's much easier to do that once you have a few sales under your belt, as former clients will usually refer you to new ones. Also, if you have a few listings, you will likely get more listings (and find buyer clients) from those initial ones. So starting up is the hardest part.

I found you have to spend some money in real estate to make money... if you have no marketing plan to attract clients, it will be hard to generate the clients you need to get started. And you don't have to spend a ton of money to market yourself, but you usually have to be willing to spend a little.

I started in real estate midyear (in July), and my first 6 months were pretty slow. I only did a couple of transactions. My first full year was decent money, but I knew I had to grow my business. I doubled my business between my first and second full year, and I try to increase every year. This year, I am projected to earn about 50% more than last year. So once you get started, you can definitely grow your business.

But patience and consistency are required. It's definitely not quick and easy money, as a lot of people believe. Like any other start-up business, you really need to have a business plan and the discipline to stick to it. Also, it's important to always have a lot of "irons in the fire," so to speak. If you put all your energy toward one client or one sale, it will be devastating if it doesn't work out (as it sometimes doesn't, often for reasons out of the agent's control). So it's important to always be working with multiple clients and looking for new clients, which takes time. I think real estate is tough to do as a part-time job, unless you team up with a partner (which means splitting the income).

Let me know if you have specific questions, and I am always happy to help!