OnTrack Agent Real Estate News

Things to know before you get your real estate license.

The Top 25 Things You Need to Consider First Before You Get Your Real Estate License!

  1. You are now a startup business! You are a small business owner. It’s unavoidable.
  2. This business is expensive. Most often, even if you do not sell any homes, you will need
    to pay some sort of fees.
  3. 80% of new real estate agents who attempt to launch as a small business owner go out of
    business by the second year.
  4. ALL startup businesses often take 3-4 years to see any profits. This will most likely be
    true of your launch as well. Prepare your personal finances so you can afford your
    business launch.
  5. You DO NOT need to “work under another agent” to start your business. You DO
    however, have to partner with a brokerage who will be in charge of checking your
    paperwork, your E&O insurance and “hold” your license in your state. However, you are still
    your own business.
  6. A brokerage owner or manager is different than a “Team Lead” or recruiter. Learn the
    difference here: https://ontrackagent.com/who-is-the-best-brokerage-to-choose/
  7. It is YOU that chooses the brokerage you want to work with. You are no longer a W2
    employee. Your first business decision is to choose what brokerage aligns with your
    value system. Meet with many brokerage owners and managers (not team leaders) and
    have a list of questions to interview them. Some of who you will interview will make it
    seem like they are interviewing you. This is not the case. Be confident, this is your
    decision!
  8. You will spend more time looking for and attracting new clients than you will selling and
    buying homes.
  9. You will get advice to either join a team, or get a Coach. There are SEVERAL different
    definitions of what a Coach is in this industry. Find one who wants to help you build your
    business, instead of hiring you to help build theirs. Look for a Coach who will teach you
    how to fish instead of give you leads.
  10. Be aware of the snake oil salesmen who calls themselves a Coach, but is actually a
    recruiter interested in making a living off the fees you’ll pay. This business is to riddle with
    people who know there is a lot you don’t know and will prey on your vulnerabilities.
  11. Learn the difference between a Realtor® and a real estate agent. You can choose which
    one you’ll be.
  12. The National Association of Realtors® (N.A.R) reports that in 2020, the average new real
    estate agent made $8,500 GCI. (Before taxes and expenses), down from $8,900 in 2019.
  13. You MUST have a plan for the launch of your business. You are now the head of your
    marketing, accounting, financing, sales, lead generation, business development, human
    resources and I.T. departments.
  14. Further, you MUST have a business plan that outlines your core values as a business, and
    why you are in business.
  15. Learn the difference between gross commission and net income.
  16. Find a peer group who wants to help your business (for free). Every business leader
    needs a solid mentor group.
  17. Building a real estate business is learning a craft. You will learn most things on the job
    and find your exam did not teach you much about the actual business.
  18. It is a lot of work to be successful in real estate. Don’t be naïve in thinking you’ll set
    hours to do it when you feel like it. You will find, as you wade into the flow of the market
    that it will dictate when you work.
  19. A real estate agent’s main duty is to help families buy and sell the biggest asset of their
    lives. For some, it will be the only savings they have to retire on. This kind of
    responsibility comes with a lot of pressure and stress.
  20. Homes are bought and sold on evenings and weekends. Your new “Saturday” is
    Wednesday.
  21. Real estate agents often keep (net) less than 1/3 of their commission check. The rest
    goes to taxes, expenses and fees.
  22. There are companies that will “advance” your commission check before a transaction
    closes. Do not do this. A deal is only final (and you paid) when it is formally recorded.
  23. According to Box Brownie, only 1.3% of real estate agents properly list and market a
    property.
  24. You will be called to ask if you want to purchase digital leads. What they are offering
    you is scraped data. The National Association of Realtors reports the odds of closing a
    digital lead is between 0.4%-1.2%: https://www.homevalueleads.com/convert-
    real-estate-leads-into-clients/
  25. The most successful real estate agents are skilled at building relationships, are nurtures
    of their communities, understand their responsibility for building financial wealth for
    their clients, build client focused experiences, and measure their success based on their
    ability to serve, not their wealth.

Check Out More Resources For New Real Estate Agents:

NA365 New Real Estate Agent Community

NA365 LIVE Joins OnTrack Agent

$179 Course for New Real Estate Agents

Shelley Zavitz
Author: Shelley Zavitz