Key Tips To Set Up And Build A Real Estate Career
One of the few sectors around the globe on which the pandemic did not cast a shadow is the real estate business. Yes, like other businesses, there were initial challenges, but surprisingly this sector managed to not only maintain a steady course in terms of business but also actually managed to record an increase in business over the previous year.
Despite the initial dip in the second quarter of 2020, the real estate sales picked up in the following months. Approximately 6.5 million homes were sold in the U.S. in 2020. This figure is projected to surge and the expected sales for 2021 stands at 7.1 million homes. The real estate market has continued to rise steadily since 2011, and the year 2020 was no different.
With such strong growth predicted in this sector, it makes sense to consider building a career in this field. However, many young professionals are not exactly sure where to begin and what are the requirements to become a REALTOR®. In this article, we are going to take you through the steps required to becoming a professional REALTOR®.
How Do You Build A Successful Career In Real Estate?
One of the most common queries our experts are asked by young professionals is whether they can learn to become a good REALTOR® or if they have the skills to be one, which may be something that an individual possesses naturally.
Let us put to rest this question once and for all. Yes, certain skills come in handy if you wish to build a business in the real estate field, such as the ability to communicate well, be a people-oriented person, have a friendly manner. etc. However, all of these are skills, and as such, all skills can be learned if an individual puts in the maximum effort. So, our experts all agree that you can learn to become a successful agent.
How To Become A Real Estate Agent?
Now, the first step to start your journey as a real estate agent is to verify the requirements of your state for obtaining a license. There are primarily three things you have to check to begin the process.
- The mandatory requirements to obtain a license.
- The number of hours required for real estate agent training.
- The procedure to apply for the examination and the details of the exam. Let us take you through each of the following in more detail.
The Mandatory Requirements To Obtain A Real Estate License
In the US, there is no federal body governing the requirements of the real estate business as such there is no national license. Each of the states has its own requirements and rules governing the real estate business. So you need to check your state's real estate official website which will have all the regulatory information. You can also pay a visit to the Association of Real Estate License Law Officials (ARELLO) to obtain this information.
All the states have their own specific requirements for:
- Age (Usually 18 years).
- Education requirements (Minimum of a school diploma or GED).
- Particulars about the Pre-licensing courses you have to attend and the post-licensing requirements you have to fulfill.
- Details regarding the exams and rules about the exam eligibility.
- The cost for the application process and the total fees you need to pay.
- Details about the background verification process and the fingerprint submission process (Both digital and manual)
- Rules about the continuing education you are expected to complete.
- How to achieve the next level of licensing for progressing in the business.
- Submitting details about any criminal history. Once you have gathered all this information you can move to the next step.
The Number Of Hours Required For Real Estate Agent Training
All the states have different requirements, however, the time required to finish the pre-licensing course can range very widely, from as little as 24 hours to even as high as 180 hours. Remember, you can go over the minimum number of required hours to get a better understanding of the course material.
You will have to enroll in a real estate school and undergo the training for this. You also have a choice of enrolling for traditional in-person instructions or online real estate classes. Do make sure you are enrolling in an accredited institution.
The Examination Procedure And Details Of The Real Estate Licensing Exam
The course instructor will help you understand the details of the licensing exams and help you prepare for the same. The exam generally has two sections. The first section has questions regarding all the national real estate laws and regulations. The second section has questions regarding your state-specific real estate laws, regulations, and principles. Both sections are in the multiple-questions choice format.
Each section of the exam is scored individually and once you have cleared the exams the next step would be to submit an application, required documents and pay the license fee to get your official real estate agent license.
Start Your Real Estate Business
Once you have obtained your real estate agent license, you are ready for the next stage of your real estate profession. Always remember that the initial one or two years are going to be challenging, but if you plan for it and work your way systematically, then you can lay the foundation for a successful career. In this portion, we will give you the major tips which will help you navigate this initial period and create success for yourself.
Join A Professional Brokerage
It is mandatory for all new real estate agents to join a brokerage and undergo further training by working under a broker. You need to find a mentor and get to learn to handle the complexities of real estate dealings. Once you find a mentor, you can also learn from them to widen your sphere of influence. You will learn how to conduct proper market research and how to find potential clients. It is important to learn how to be a successful REALTOR® and how to run your small successful real estate business from someone who has experience over the years.
Your mentor will introduce you to other professionals and brokers. It is essential to keep networking. You will also get a lot of networking opportunities with your brokerage team.
Invest In A Customer Relationship Management (CRM) Tool
Now depending upon the kind of brokerage you have joined, you may be either provided a CRM tool or you may need to get one yourself. Successful real estate agents agree that this is one of the most vital tools needed in the real estate business.
A CRM tool basically helps you systematically arrange all your leads in a proper manner and come up with proper actions suitable for each client. It will let you at a glance see the progress of each deal and what are the next steps or strategies needed. This tool will ensure that you are on the top of each step of a successful real estate deal as the process of buying or selling a house involves a lot of steps and procedures. A CRM will enable you to focus on all your real estate clients properly without missing out on anything important. It is also very useful to build long-term relationships with your clients.
Create A Proper Business Management System
Always remember that becoming a REALTOR® means that you are in business for yourself. As such, you will have to learn to view and think of everything from a business point of view. You should craft a plan to grow your business. Take advantage of the initial years where you will have the support of your brokerage and lay the foundation for your future independent business. You must have ready strategies for the growth of your business. Whether it is creating a proper budget to having a clear plan for your future income and expense.
Consider how much money you wish to make? How many hours a day do you wish to work? What are your 5 year and 10-year plans? It is important for all new agents to have a business mindset right from the beginning.
Build A Clear Marketing Plan
The next step would be to create a clear-cut social media marketing plan for your business. To get started ask yourself, what is going to be your niche? Which area of real estate would you like to represent? It is important for all new agents to create a personal brand. Your mentor broker could always guide you in this matter. Think about all of the aspects, such as how to incorporate social media into your business plan. In the real estate industry, like any other industry, the importance of technology and social media is rising day by day.
Once you have identified your focus real estate area, then start gathering as much knowledge as you can about it. Remember, for success, you need to have all of the local real estate information at your fingertips. This is what is going to get you more clients.
Have Your Own Real Estate Website
One of the crucial things that you can do to jump-start your success in the real estate world is to create a personal branded real estate website. You can use technology to bring you the customer. Develop a professional real estate website, provide the customers with information about the local real estate market and related information. Have a section outlining the real estate client services that you provide. You can include a section for a real estate business blog and every time you write a new blog article, do remember to post about it on all of your social media platforms. It will help you attract more buyers and sellers. These could turn into potential clients.
You need to present yourself to your customers as someone who has all of the required knowledge about house selling or buying, that you are thorough with your research and will help them sell their house at a good price, and that you have all the strategies needed and a wide network to help them sell the house at the earliest.
Register On An Online Real Estate Platform
Another way in which technology can help you is through online real estate platforms. Online real estate seller lead generation platforms like Dorrmat help you in multiple ways. The primary benefit is that it becomes easy to generate leads as the site provides a registered real estate agent with qualified seller leads.
Now, apart from lead generation assistance, Dorrmat also provides a robust CRM tool with backend support. So if you are a real estate agent whose business budget is on the lower side, then you can save some cost by opting for Dorrmat. You also get a branded and professional RELATOR® page, which can help you a lot if you want to avoid the cost of creating your own website. This can be really helpful when you go to meet potential clients. As a small business owner, you must market yourself in all the ways that are possible, and registering on Dorrmat could be one of the smartest things to do to achieve that.
Join National Association Of Realtors® (NAR)
Our final tip would be to consider joining the National Association of Realtors® (NAR). It is the largest trade organization in the US. This is a pan nation body of certified Realtors®. The real estate broker for whom you work should be a member of the NAR for you to become a registered member. You need to prepare and appear for the test and then follow all the codes of conduct and adhere to the ethics prescribed by NAR.
Becoming a member of NAR will help you get access to governmental real estate data, widen your opportunity for networking because you get to attend exclusive business seminars, and attract more customers as only members are allowed to use the term, Realtors®.
Even small real estate businesses come with their own set of challenges but if you have a proper business plan then it is very much possible to gain success in the real estate industry. Like all businesses, there is a certain amount of learning curve for all real estate agents, but those who put in the required hard work do become successful professionals with their own thriving real estate business. The bottom line is it is all about attracting clients and potential buyers or sellers and coming up with strategies to help each customer in such a way that there is financial benefit from the sales to everyone. By following the above-mentioned tips you can ensure that you are gaining career success.