*Wondering About Becoming An Agent*

[amberstar702]

I have thought about becoming a real estate agent for many years but never followed up on it. With all you good people in this forum, perhaps someone can give me guidance from Square One. I love working with people (always have) and enjoy selling! :confused:

[HMiller]

Terri,

I suppose the first bit of info I should give you is that it's said that approx. 80% of those who start in the business wind up dropping out within about a year. Of those 20% who survive the first year, most wind up out of the business in the next couple of years. IMO, most of those who don't make it had a couple of false assumptions about the business. They either thought that selling real estate is an easy way to make money or they underestimated the time and expense required to even begin to make money. Many new agents may not collect their first commission check for up to six months or more and when they get that first check it often has deductions from your broker for things such as E&O insurance, training, advertising,... So basically what I'm trying to say is that it's important to have realistic expectations about a career as a real estate agent. It seems like you have a successful business already and if that business can support you while you're beginning a new career then you already have a big advantage over many of those who are also new to the business.

The field is a challenge to say the least. You deal with rejection, frustration, dishonesty and other BS on a regular basis. (Sorry if that sounds so negative, I have two deals that are falling apart as we speak :( ). You also spend alot of time working with buyers who often wind up not buying and as a result you don't get paid a cent for your efforts.

With all of that said, I absolutely love what I do. Helping families buy their first home is very rewarding. When your clients send you thank you cards or invitations to barbecues or holiday parties and most importantly referrals :D, it always seems to more than make up for all of the frustrations you deal with in this business.

So, if you're self motivated, hard-working, organized (I'm not lol), thick-skinned, people oriented, ethical, aggressive (not necessarily in an A type of personality way), and willing to take the time and effort to learn the ins and outs of the business you can make a very good living selling real estate. I wish you the best should you decide to go for it.

[amberstar702]

Thanks very much for your thoughtful response. I'm sure it must be very frustrating when you put in a great deal of time and effort and the sale does not go thru. When we sold our condo in Miami on our own, we had a minor taste of that frustration. Our broker here in Las Vegas seemed to know exactly what we wanted. We looked at a few other places that day because this was the first one he took us to but made our decision at the end of the day. It was love at first sight!

If I did decide to go with real estate, what would my first step be? :confused:

Cheers,

[HMiller]

Well you first step would be to find a school (If you know any Realtors in your area ask them for references) and prepare for the test. While doing that you should also start interviewing various real estate companies in your area. There are many different companies ie. big national names, smaller companies that may be dominant in your region and small independent companies. It's most important to remember that you're interviewing them. Find out details on training/mentoring programs, commission splits, expenses (e&o ins., training, advertising, desk fees, phone fees, ...).
As far as what to look for in terms of training, generally speaking many smaller independent firms offer less training in terms of quality and time that larger companies do. I started my career with a small company and basically received very little training or mentoring. Eventually, I got wise to the principal broker's poor reputation and decided to accept an offer from a very highly respected company. After starting with the new company I realized not only how little I learned in my time with my previous broker, but also what a big mistake I made in choosing that company. If you go with a smaller independent, make sure there is a formal training program and a successful Realtor to mentor you. Many of the larger companies will charge you for your training (the company I'm with now charges $499, deducted from your first commission check). Some will also team you up with a "mentor" and that mentor may get up to 30 or 40% of your commission on your first few deals. If you manage to be paired with a highly successful mentor who actually takes the time to mentor you, it may well be worth the expense. However, I've heard stories of new agents paired up with "mentors" who barely gave their assigned protege the time of day yet still took a huge chunk of their commission.

Commission splits will also vary widely from company to company. Many companies will offer you a 50 - 60% split to start with graduations based on sales volume. There are some companies that offer 90 - 100% commissions and will charge you a fee per transaction and desk fee per month. Typically, you will also be made to pay for your share of the E&O insurance which in my area generally ranges from 250 - 300$ annually.

[amberstar702]

Thanks again for the very enlightening information. :)

[HMiller]

You're most welcome. Feel free to ask if you have any other questions.