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How To Become A Successful Part-Time Real Estate Agent
Written by Dee Kumar & Kate Tofuri
Real estate is a very lucrative field. The market is continuing to boom, and prices look to rise for the foreseeable future. There’s an opportunity there for those looking to pursue real estate. However, you may be hesitant to pursue it without the security of your current full-time job.
The answer lies in pursuing real estate part-time. With this guide, you’ll learn everything from getting a license to building your network of clients. It's possible to earn a significant income with real estate, even working part-time.
Two Paths To Take
There are two paths to take when you want to pursue a real estate career, whether you’re selling real estate part-time or full-time. You’re either an agent or a broker. The difference lies in each job’s focus. An agent focuses more on selling real estate, facilitating transactions. A broker, on the other hand, focuses more on managing a team of agents.
Both earn their income primarily from commissions. There’s no set number for commissions, but the standard around the country is 3%. You’ll also be parting with a small percentage of that to your broker unless you’re an independent contractor.
Getting a License
To legally practice in the real estate field, you need to complete an exam and get licensed in the state the real estate is located. Each state has different requirements. Doing a bit of research to find an appropriate course can help you learn the subjects you’ll need to study.
After completing the exam and getting your license, you need to sign up with your local Multiple Listing Service (MLS). The service helps by providing you vital information. It includes properties, other agents, and relevant statistics. You can check online and then pursue a broker.
A broker is an organization you’ll work for. You can choose big brands which offer recognition and other benefits. You can also opt for a smaller broker which may have an advantage in the community you want to work in. Check their options for commission, their desk fees, and the like to gauge if they’re worth it.
Starting Your Real Estate Path
Now that you’re a licensed agent or broker, you need to determine a schedule. You won’t be earning big commissions right away, so maintaining a continued commitment to your full-time job is essential. The best thing you can do is dedicate a few weekly hours to part-time realtor work. It may take some time, but you need the diligence to succeed.
Lets Consider Costs
Real estate license renewal: Varies depending on the state.
MLS monthly/annual fee: Varies.
Broker costs: Also called desk fees, the value depends on your broker.
Lead generation and marketing costs: The average will be $150-$300 when you’re starting. It can decrease or increase over time, depending on your strategy.
Operating costs: Depends on the market you’re catering to and the cost of living in your area. The average part-time real estate agent starts with around $50 a month.
Transaction Fees: Most brokerages have a fee per transaction. This can bet a set fee or a percentage of the total commission. You’ll want to be aware of these fees before signing on with a brokerage because they can add up over time especially if there is no “cap”.
Now that you know the monthly costs, you can then match them up against your potential earnings. To get an idea of how much you’ll be earning, you need to know the average sales price in your area. Browse MLS listings and check recent sale prices of properties in your area. Get an idea of the median sale price for an estimation of your possible commission for each sale.
There are no set commission rates for real estate agents. Typically, both the buyer and seller agent will get around 5 to 6% in commissions. Expecting the lowest scenario, you get an average of 2.5% in commission. For example, if you sell at $300,000, you get $7500 in commission. That doesn’t take into account the split with your broker.
Your broker will likely take a percentage of your commission. It varies depending on your broker. For example, you may have a 60/40 split. In that case, you get 60% of the $7500 commission, or $4,500.
Building a Network
On your path to success, you need to put most of your effort towards building a network in your first few months. Here are some things you’ll need to do during this period to establish your business.
1. Create online channels: Set up numerous platforms where you’ll be visible. You can create a Facebook page, profiles on listing sites, and other relevant websites. Make sure to put in a bit of content to show you’re active.
2. Connect: You can reach out to friends and family members. Let them know that you’re a real estate agent. Their referrals will be a big part of your business early on.
3. Learn from veterans: Connect with an experienced agent in your brokerage and ask him/her out for lunch or coffee. Ask your questions about the job and try to get some tips to help you with future transactions.
4. Get to know the market: Take some time to learn the listings in the area and the market trends. You can get an idea of what people are looking at based on sales and current listings. You can also connect with developers of new constructions and other planned projects.
5. Begin marketing: Use your online channels as a way to communicate your passion and knowledge of the market. Writing blogs and giving updates on real estate will establish authority.
6. Paid leads: Set a budget for buying real estate leads. Popular websites include Zillow, RedX, and BoldLeads.
Stay Diligent
Diligence is the key to building your part-time job in real estate. Things may start slow, but once you get your first transaction, it will have a ripple effect. You can get to a point where you’re sustaining yourself through commissions. Even if you’re only doing real estate part-time, the returns you get for the effort you put in are massive.
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About the author
dee kumar
Dee founded Host Group Academy in 2008 and since then, has seen thousands of students successfully complete our program and launch their careers. From day one, you will see that his passion for teaching is unsurpassed. It matters deeply that his students pass their exams & succeed in this life!
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