Starting a real estate business can be a rewarding and lucrative venture. There's a reason why a real estate career is one of the most popular tracks in the United States! However, doing so requires a significant investment of time, energy, and resources. We have outlined some of the basic steps to take in order to begin your journey to become a real estate agent.
Get licensed
In most states, you will need to obtain a real estate license in order to legally buy and sell properties. There are certain technical complexities to real estate transactions that require specific knowledge, so it makes sense. Think about it -- if you're a home buyer or seller, you'd certainly want your agent to have taken some real estate course. (You'd also want to see your agent is in good standing with the leading trade association, the National Association of Realtors).
Naturally, this does usually involve completing a certain amount of education and passing a licensing exam. You should be prepared to spend a few weeks preparing and studying, as well as a couple hundred dollars in associated costs. Don't be totally deterred; real estate schools and a state exam still pale in comparison to the costs of private or community colleges. Nowadays online courses are even an option so you can pursue your degree on your own schedule.
TIP: Don't Want to Become a Licensed Real Estate Agent?
Perhaps you want to want to manage, buy, and sell real estate purely as an investment strategy. Then you don't need any real estate license or traditional classroom setting; all you need is a successful agent to help you navigate the sales process efficiently. Check out the top agents in your area on TrueParity; it is not a real estate brokerage, it's a platform for only the best of the best.
Choose your focus
There are many different areas of the real estate industry you can specialize in; a real estate agent generally carves out their own specific niche to thrive in.
Some avenues to investigate are residential sales, commercial real estate industries, property management, or real estate investing. Decide which area you are most interested in and tailor your business plan and marketing efforts accordingly.
Develop a plan
A business plan will help you define your target market, set goals, and outline the steps you need to take to achieve them. A veritable real estate professional works strategically; they have drafted what they need to accomplish and back-calculated the resources and time required to get there. Everyone wants to be their own boss, but many real estate agents, especially new real estate agents, struggle to find a foothold because they have no growth or marketing plan.
An experienced broker also follows larger trends stay ahead of the game. Continual research and monitoring of activity is an oft understated part of the regimen of successful agents. Following the housing market, staying abreast of legislation for new real estate laws, and more actions are part of the daily recipe for success.
Build a network
Real estate is a people-oriented business, so it's important to build relationships with potential clients, other professionals, and industry experts. Join local real estate organizations and attend industry events to network and make connections.
Obviously, one of the first steps a new real estate agent may take is to tap into their personal network of friends and family; however, this can be a crucial mistake. As a newcomer, you may not be experienced enough to handle their largest assets and you could potentially sour the relationship by putting them in an awkward position; you could ruin a friendship and your business! We recommend that new agents join an established team first; that way, they can not only learn under the mentorship of an accomplished real estate broker but also benefit from the introductions to potential clients down the road.
Market your business
Use a variety of marketing tactics, such as social media, networking events, and advertising, to promote your business and reach new clients. It may sound easier said than done but the quicker you get started on the learning curve, the quicker you'll start understanding how to become successful.
An average real estate agent just gets their real estate license then throws things at the wall hoping they'll stick. An elite agent has a handful of targeted marketing strategies and channel activations to push potential leads further down the sales funnel to convert them to paying clients. You'll want clear and persuasive marketing materials to concisely communicate your message. Demonstrating deep insight into the housing industry is crucial; you should build a reusable financial model to rapidly perform market analysis for any new lead. You should master the latest digital practices and platforms, from SEO (search engine optimization) to TrueParity's platform. In fact, staying on top of new tool is the true continuing education of an agent.
Summary
Starting a real estate business requires hard work and dedication, but with the right planning and execution, it can be a rewarding and successful venture. Begin by getting all the necessary accreditation, figure out the niche you want to specialize in and formulate a plan of attack, join an established team to learn the ropes and start amassing a network, then deploy strategic marketing initiatives to continue to reach more clients and maintain success.
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