Recent TV shows featuring real estate agents who sell multi-million-dollar listings in exotic locations have inspired many to become agents themselves. Others get into real estate because they enjoy the flexibility and unpredictability of the work. Still many more simply love the idea of helping people find the perfect property for their homes or businesses.
The inspirations for becoming an agent are unique to each person. While there are many reasons for becoming a real estate agent, there are also common reasons why so many agents fail. If you have goals in mind for your career as a real estate agent, you may want to consider the following questions.
Have you accurately assessed the market?
You are probably competing with dozens of other agents in your area, so it will be important that you know everything about your market. Who are your clients? What are they looking for? What are the trends? What is the economic climate in your area? Knowing the answers to these and other questions will help you make the most of your time with your clients.
How realistic are your expectations?
Your expectations are too high if you plan to sell a million-dollar listing right away or earn six figures in the first year or two. Despite what you may see on reality TV, most real estate agents earn about $60,000 a year minus the many expenses related to the job. Additionally, it is hard work. If you plan to rely on your friends and family for the bulk of your business, you may find the well running dry pretty quickly.
Are you financially prepared?
Did you quit your job to go into real estate? Hopefully you have put some money aside to get you through the first few years. It is not uncommon for new agents to work quite a while before earning their first commission, and you do not want to be struggling personally while trying to build your business.
Did you include marketing in your budget?
If you work for a broker, you may get a few leads. But you shouldn’t rely on those prospects alone if you hope to grow your reputation as a top seller. A marketing budget will allow you to find your own clients and build a base, and some agents find it is worth going into debt.
Are your clients overworking you?
Eager agents afraid of losing a sale may allow their clients to drag them from house to house week after week and still end up with no sale. This takes up time you could be spending with other clients and can be physically and emotionally exhausting. Instead, develop a list of questions that can help you tactfully narrow down choices for the client.
Are you ready to stay motivated?
Real estate is hard work, and you may find yourself growing weary even if you have had some successful transactions. One way to avoid burning out is to continually update your skills and remain informed on the latest trends and methods. Your continuing education as an agent will play an significant part in keeping you excited about the important role you play in helping others through the challenges of buying and selling real estate.