30 Things You Need to Know About Getting Your Real Estate License
- Real estate should NEVER be a part time job indefinitely. (Some start out part time, and that is ok.) You are helping people with the single biggest financial decision most people will ever make. You should never do this halfway.
- You need to plan on working EVERY SINGLE WEEKEND the first year. Not all day, but working in some capacity.
- Many people want to get in real estate because they don't know what else to do. It shouldn't be a last resort decision.
- It is a huge committment of time, energy, answering phone calls and taking care of other people. Email and texting help a lot.
- You need to plan on working about 60 hours every week the first year, much of that is studying with no pay.
- It is a lot more paperwork than most people realize. You MUST be able to take care of your paperwork or hire someone else to do it.
- The hardest part is actually finding people who want to use you. The average person knows 10.2 Realtors. Why will they choose you? You are responsible for your own leads, not your Broker. Your Broker or company does not give you leads.
- You will have continuing education that will need to be done every 2 years.
- You will get your feelings hurt A LOT. You will find that your friends and family may not want to use you. They may not want you in their business.
- You may find that other people don't really value what you do and think you are over paid. You will also find people want your information, knowledge, experience and skills, but don't want to pay you for it.
- You will have people stand you up for appointments. You will have people lie to you about their circumstances.
- You must be self disciplined and able to create sales and run a business on your own. It is a very cut throat business, and people are not sitting there waiting to help you.
- You must be able to budget your money and monthly expenses even when you don't have closings for months.
- The average Realtor makes $37,000 per year. Everyone thinks you make a lot more than this!
- Most homes that are sold or listed are done with only 20% of Realtors working in this business.
- Your time is your own. You MUST be able to work independently and wisely, but you are accountable to your Broker for everything you do. Your Broker is liable for you.
- You do not get paid by the amount of work you do. You get paid by the closings you create.
- You will get to meet a lot of people if you network properly.
- You will no longer have nights or weekends "free". People buy and sell when THEY are off from work, not when you are.
- You will always be at the mercy of: Buyers, Sellers, Home Inspectors, Appraisers & Lenders. You must be able to go with the flow and adapt easily and learn to be a problem solver, not a message taker.
- You really do need a home office with a printer, scanner, copier, email, smart phone, CABLE internet and a computer.
- You may be working many times while other people are out having "fun". This includes holidays.
- You need to be able to stand up for yourself and not let people walk all over you. This is not for the weak.
- You must be willing to spend MANY, MANY, MANY hours, days, weeks and months learning your craft.
- You must have a decent, reliable vehicle.
- You are seldom appreciated for the work you do. Afterall, it's your job. It's what you get paid for.
- Expect to have monthly expenses for things like CRM software, realtracs (mls), lead generation, website, gas in your vehicle, lock boxes, yard signs, advertising, printing materials etc.
- You will need to file quarterly taxes, you are now self employed.
- Group or employer insurance is not available for you.
- 3% is never your commission. There is always a split with "the house" and the cost of running your business that comes out of your check.
While all of this may sound bleak or daunting, it is the realistic end of it that no one really knows until you are knee deep in it with a lot of money paid out. 80% of Realtors "quit" in their first year.
Real Estate can also be VERY rewarding. You get to meet a lot people. You have a lot of freedom, and it's nothing like a 9 - 5 job.
If you can handle all of the above, you might be a good candidate for a real estate license.
Would I do it again? ABSOLUTELY! If I knew starting out what I know now, it would have been easier. I will teach you what no one taught me!