If you are interested in become a real estate agent, focus on classes in real estate, business administration, marketing, and finance. Check if your school offers courses that involve real estate law, land-use planning, ethics, and environmental issues. Additionally, you will also want to have a strong background in statistics and English.
One good estimate is that you will need to be able to cover six months of living expenses to account for the time when you won’t be pulling in an income.
Each state has a variety of laws involving real estate practices, licensing requirements and fees, and regulations involving commerce. Your best bet for specific information is your state’s real estate commission. If you live near a state border, it might be beneficial to get licenses in several states. For most states, a portion of the exam covers national real estate law, so your additional studying will only need to cover differences in state laws. [3] X Research source
While individual rules may vary by state, real estate classes taken in college can cover state requirements. If your college doesn’t have all of the required classes, you can taken them through an approved provider, which can be another college, a trade association, or other licensed on-site or correspondence schools. These other methods are useful if you are becoming a real estate agent as a second career. In some states, like California, you may be able to get the required hours through an online course you can complete in 2 ½ weeks, while Texas requires up to 180 classroom hours (six courses of 30 hours each). Real estate coursework covers a variety of topics dealing with the principles of real estate work, including contract and agency law, contract forms, and real estate financing. [4] X Research source [5] X Research source
Exams contain questions that cover information related to both state and national real estate laws. California’s exam covers several broad areas that demonstrate an understanding of the linguistic and mathematical skills of real estate, knowledge of the profession’s practices, and recognition of the agent’s obligation to a client and other ethical practices. The state also points out that these are all potential topics, and the exam will not cover all of them, only a selection. [6] X Research source The point of the exam is to show you have mastered the minimum amount information needed to understand the real estate process. Because there is a lot to the process, it is better to take the exam shortly after finishing the course. [7] X Research source
You can find employment with a broker through a variety of means. Many post agent openings through employment pages in newspapers and internet job sites, as well as on their own website. In addition, larger brokerages give you the opportunity to apply for an interview to see what is available. [9] X Research source Some brokerages will require you to take additional coursework and continuing education to further your development while you are working for them. [10] X Research source Remember that the state requirements are only the minimum, and if your brokerage is a good one, they may expect more. Make sure you discuss those requirements and are prepared to meet them before signing up.
For example, in New York, you must have at least 2 years of experience as a licensed salesperson, or 3 years in the general real estate field. You must complete a 45-hour real estate broker class, then pass a state-administered qualifying exam. If you are not a licensed agent already, you will also need to complete the 75-hour qualifying salesperson course. [11] X Research source
One good rule of thumb, especially when you are getting started, is to look for niches you already know. These can be areas you have worked in before, or things you are familiar with through your own personal life. This will give you an advantage in marketing your business to certain types of property owners without much new research. For example, if you have previously worked in the hotel industry, you will be able to speak to the concerns of hotel owners in a way that other real estate professionals cannot. Another place to look is finding something you love, and look for a niche to serve similar people. You may not know everything about real estate in that area, but you’ll probably have some background into what people are looking for. If you like spending time outdoors, you probably have already thought about the things you would look for in a property that would aid in hunting, farming, or other similar activities. It will be much easier to learn more about that type of property, and market your skills to potential customers, if you are interested in the topic. It is better to find a niche rather than try to be a “one size fits all” company. This will help you target your marketing, and prevent you from taking on clients whose needs are too diverse.
As your business will eventually expand to hire more agents, you’ll want to make sure your plan mentions them. Be sure to explain how you intend to recruit and train them, as well as how you intend to keep them. Remember to be clear about your mission statement and goals. Your mission statement should be brief, and quickly explain what you do and how you intend to do it. Your goals need to be clear and measurable, and have definitive time frames for achieving them. [12] X Research source A real estate business plan needs to consider the number of clients you will need to reach in order to reach your goals. Remembering that not all of your contacts will lead to sales, multiply your expected sales by 2 (3 if you are a relatively inexperienced seller) to account for the sales you won’t make. Dividing this number by 40 gives you the number of new clients you will need to acquire each week.
Some cities and counties will have additional requirements and fees. For example, in San Francisco, you will need to register with the city office, pay a fee based on the type and amount of business you do in the city, and provide information on your business’ legal structure. [14] X Research source
Get an Employer Identification Number (EIN) from the IRS. You can apply through the IRS website, or you can fax or mail a completed SS-4 form. Filing online will get you an EIN immediately, while the mailed or faxed form should return a number in about four business days. Filing for an EIN is free. [15] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source When you incorporate as a business, and register in your state, you should receive a state-level tax identification number. Each state has different obligations and requirements, so make sure you know your state’s relevant laws.
The most obvious hire is new agents. You can consider older, more established agents, who may be able to come with their own clients. They will also probably command a higher salary. You can also look at newer agents, who will cost less, but also require training and experience. Since a lot of real estate business is done offsite, and outside of regular business hours, good real estate agents should be hard-working, independent agents who can relate well to your customer base without your presence. You should take an active role in training and improving your agents. You’ll want to make sure they are all doing consistent, quality work as part of building your brand. Some of the best ones will eventually want to leave. While you may be able to encourage some to stay, you should be willing to let them leave to pursue their dreams of independent success. Other aspects of your business like taxes and payroll are every bit as important as the actual real estate work, and you need to make sure they are taken care of professionally. Better to hire an accountant than have you or one of your agents take on that task in addition to their regular job.
Advertise. Find ways to get your name out there. Consider the type of audience you want to reach, and the mediums that are most useful for getting their attention. Because of the variety of people searching for real estate, both online and traditional print forms are likely to be useful for getting your business out there. If you are worried about how advertising will affect your bottom line, consider different ways to promote your business for free. Not all of the people you contact will need your services, at least right away. This will start getting the word out, and let them think of you when they do need to get involved with real estate.
The best time to ask for referrals is right after you have closed a sale or provided a major service to a client. Your client will be in a good mood, and more likely to help. Plus, doing it sooner could jeopardize a sale.
When you build the database, you should include as much important information as you can about each customer. Remember what kind of things they were looking for in property, who they might know, and any other information that might be useful in staying connected with them and building your network.
Create a set of standards and best practices for your employees to follow. These can be steps to working with clients or reaching out to new customers that everyone in the business will know and follow. This will help create consistency across your business, and allow you to think ahead rather than try to micromanage each transaction. Give yourself tasks to accomplish. If you are the manager, you will need to be proactive about your workload. Rather than focusing on closing sales, think about ways you want to attract new clients, or better promote your business. Review your business’ activity, and try to find ways to make it more efficient. You should not be waiting for things to come up so you can resolve them.
Join the National Associate of Realtors. This is a national organization of real estate agents that helps to drive the profession. Its members set a code of ethics, and will provide associations that can increase your knowledge of national and local industry conditions. To become a Realtor, you need to take additional coursework and demonstrate skills in a specific area of real estate. [19] X Research source Some of the NAR’s listed specializations include knowledge on green (eco-friendly) real estate and real estate technology, or dealing with specific customer bases such as seniors, minorities, or military relocation. [20] X Research source
Look at population and business trends in your area. New businesses opening means new people, many of whom will be looking to buy homes. On the other hand, if the population is older, you’ll have more people wanting to sell. Social media relationships with your customers are another good way to notice market trends. Always remember to listen to your clients, and don’t be afraid to engage your customers about things they see in the neighborhood. [21] X Research source Keep an eye out for foreclosures, auctions, or other property sales. Even in a strong market, these kinds of things happen. Someone’s misfortune could be your economic opportunity.
Make sure you have a website that includes basic information about your business and the customers you want to reach. Make sure it includes current information on your location and contact information. Twitter is an excellent resource for a real estate business. Create a handle that reflects your business name or what you do. Make sure to use your tweets to drive traffic back to your website and other social media platforms, including links back to new things you have like blog posts. Twitter is a good way to highlight outside information or links that may be of interest to your clients, even if you didn’t write them. [22] X Research source Make sure you have a strong online presence on other social media sites like LinkedIn, Facebook, and Google+, as well as service review sites like Angie’s List.
As you expand, make sure you keep track of your business’ and employees’ tax information. Make sure your workers fill out both the I-9 Form (for employment eligibility) and W-4 Form (for taxation). Keep all your employees’ tax forms filed for easy reference. [23] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
