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How to become a Real Estate Associate
Posted by Lorraine Ross on February 18, 2008Learning how to become a real estate associate requires commitment and money. The preliminary requirements for a real estate associate differ from state to state. If you are planning to move in the near future, you may want to wait until you are settled again before you look into a career in real estate. It’s essential for a potential real estate associate to understand the differences in each state, thus the reasoning behind separate licensing.
Before you enroll in courses to learn how to become a real estate associate, you must understand that this career is not a 9 to 5 job, and, if you attempt to make it such, you will not have a successful real estate career. A real estate associate must be willing to meet with buyers and sellers when it is convenient for them and not when it is convenient to you. That does not mean that you have to rearrange your schedule to accommodate your customers, but you do have to be willing to meet with them at times that are convenient for them, even if it means you forfeit some family time occasionally.
When you have made the commitment, passed the course, and passed the test to get your real estate license, you are on your way to becoming a real estate associate. For most people, the next step is securing a position with a real estate company, although some people may already have a job offer. If you want something that has more steady hours, you may want to consider being an appraiser or real estate secretary instead of a real estate associate.
It isn’t difficult to learn how to become a real estate associate, but it does require a commitment and an understanding about the world of real estate. The long hours make it worthwhile when you finally get a sale to the settlement table, but the problem is, you can’t really count on your commission until that time. Many sales have fallen through even up to the day before settlement for any number of reasons, including failure of the seller to make requested repairs and a change in the financial situation of the buyer. It’s frustrating for a real estate associate, but unfortunately, it comes with the territory.
Before you decide on a career in real estate, it’s important to understand that you are paid on commission, which means, if you don’t sell anything, you aren’t paid. You also do not earn the commission until the sale closes. If you are just beginning, and this will be your only source of income, you may want to make sure you have some money set aside on which to live, until your commission checks begin to come in. You also want to make certain when they do, put some money aside because you may not see one for another month or so, depending how your sales go.
It’s a challenge to learn how to become a real estate associate, but once you are established, it is worth it. The key is for a real estate associate to reach the point where he or she can depend on commission checks coming in every week or every two weeks, however the companies decides to pay. Working in the real estate field can be very profitable, but you have to be patient and wait for the sales to begin developing first.
From a buyer perspective I met a lot of half assed realtors. You need to listen to your customer and put in some time researching what is available that matches their needs.
Great summary of what it takes to become an agent. I saved over a year’s worth of expenses and would recommend the same for anyone considering a career in real estate. Clients can smell desperation and I’ve seen many agents come and go because they failed to properly capitalize their businesses.
Joe
Many people assume incorrectly that Real Estate is an easy businees where you can make money hand over fist. Starting out in Real Estate is not easy. You can, however, make an excellent living once you are established. One of the things people need to understand is that you don’t get paid immediatly. The typical offer to close can be a few months. You should have fall back money put aside when you 1st delve into this career.
Too many people want too much too fast - they see recognized Realtors closing a sale and think they will do as good the moment they start. They can’t see that in order to be successful in this field of work one must do a lot of research, be patient and dedicated. Success never comes overnight. Thank you for the wonderful advice, I just wish more would read it
Tom
Real estate is no easy job. You have be alert always in it and i dont think any newbie can stay for long in it without a quality mentor
All good information, it must be made clear that this is a business and not a hobby. Very few new REALTORS succeed in making it through their first year, those that do, usually do things like form a business plan and stick to it.
One suggestion I have is that when first starting you try to get with a firm that does sales and rentals. Rentals are not as lucrative, but do provide a steady sourse of income. With the current market condition here in Florida home sales are slow. Last year I made $40,000 from rentals, plus my commission from sales. The checks that I received on a weekly basis from rentals was a welcome addition. After the market picks up, I will concentrate more on sales. I am available 7 days a week at whatever time my clients need me. As you stated it is not a part time job, but a career.
I personally don’t think that this is the best time for anyone to get into the real estate business. But I agree 100%, lots of people get into real estate because they think they can have a relaxed job and make major commissions. But in all reality, after you’ve sold your friends or one of your family members houses, a few months down the road, it comes down to those who work hard, get paid.
“A real estate associate must be willing to meet with buyers and sellers when it is convenient for them and not when it is convenient to you.”
100% agree, you expect some pretty special customer service when dealing with atleast a 6 figure sales
I totally agree with the above posts.
In the Bulgarian property market there are so many ‘agents’ that have no interest in serving the customers or the client.
They just wanna make a quick buck and disappear.
Lorraine makes a very good point here. Real estate is a very rewarding industry if you will sit down, count the costs, and do your research. It will take diligence, and hard work, but the rewards of helping people attain the American dream of home ownership, as well as a great commission structure, far outweigh the work you have to put in to be successful. Payday doesn’t come every day. . . but it always comes.
I fully agree with Lorraine. It is not that easy to get the confidence of the customer. Only hard work will pay you.
I agree with most of what has been said thus far. If someone is going to take the plunge into real estate in this current market they better have at least a years worth of pay in the bank. As Lorraine stated, it will take (depending on the office you go to) up to a couple thousand dollars to get started. Some offices will make you take additional courses and training that is required because of a national branded name. If an agent does not have a way to supplement their income for the first year they will most likely, not always, not make it. I have seen a handful of agents get rather shady and bend the rules of that code they took an oath to in order to make sure that deals go through. I even had one new agent in our office ask me if there was a way to charge the buyer (his buyer) money above and beyond the normal commission. Its definitely a tough time and I would not recommend that anyone jumps into this business on a whim unless they have an already huge S.O.I. and even then….
Great list. As a buyer, I too have met many half-assed agents. Too many just pushing the sale, and not considering our needs. That is the biggest turnoff.
Good article on what it takes - most underestimate what it takes to become a real estate agent in today’s market
Nice place you have here Lorraine!
I remember sitting in my licensing class and this girl behind me was talking to her friend. “All we need to do is sell one $600,000 house a month and think about how much money we’ll make!”
They had no clue. I suspect that they are no longer in real estate….
It is very good to warn those thinking of entering this career that success is not a cakewalk. Furthermore, there are employment cycles for the macro economy and for industry segments. It is difficult to imagine that now would be a good time to enter the real estate profession anywhere in the U.S. A novice would have to compete with much more experienced personnel who have already lost their jobs. Instead, the time might be right to think about an entirely different career, or this might be a good time to get some more education in preparation for another career.
Nice summary. I think it is way to easy to get your RE license, and that too many people jump in with dollar signs in their eyes.
Real estate is not an easy job. You have be alert always in it and i don`t think any newbie can stay for long in it without a quality mentor
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