There is no doubt that a career in real estate can be a lucrative endeavor. The market has recovered from severe shocks, and things are looking up. Still, the success in this competitive arena does not revolve around merely passing a licensing test.
Besides, big money commissions cannot be counted on right away. There are many steps on the journey to financial greatness and numerous pitfalls to steer away from. So, start by performing a reality check and seeing how your dreams and hopes hold up.
1. Financial hiccups
Many people are driven by the lure of easy money, but this is not the right motivation to start your real estate adventure. Namely, working on commissions can be much tougher than having a regular paycheck.
Starting a real estate career is stressful enough, so you should not add fuel to the fire with a financial hassle. Thus, agents must be careful when it comes to budgeting or even seek another source of income. This kind of sound approach goes a long way in promoting a long and fruitful career.
2. A game plan
Planning ahead of time pays dividends later. That is to say one has come up with a business plan. Factor in all the expenses including transportation, food and all other personal expenditures. Plan your income for the first year as well and utilize a sales funnel method.
Carry out a research to locate the best broker for you to get started. Focus on companies that have online tools, mentorship programs and classes. It is also advisable to find an organization that fits your personalities and ambitions. In any event, a great partner can really help you make headways into the sector of real estate.
3. A complex matrix of responsibilities
What people tend to overlook is the fact that apart from entrepreneurship, the real estate encompasses marketing, customer service and sales. So, the real question is whether you are prepared and able to tackle all these aspects.
I would put a special emphasis on the customer service, an element that can make or break your career. It is of the utmost importance to build a database of contacts and prospects you can reach out. In addition, you must get to know their neighborhoods, visit open houses and check the local prices.
One of the basic choices you have to make is between the commercial and residential market. There are some important distinctions between the two. When searching for commercial property, your goal is to find a space that promises a great rental return. The sales cycles are slower here and to close the first sale, you may have to wait for a year.
Property prices are higher, but so are areas per-deal commissions. On the other hand, residential property is bought because of its capital appreciation. It is easier to break into and the profits come sooner. Then again, the annual average income is $39,000, which is significantly less than $85,000 a commercial realtor makes.
5. The only constant is change
Another thing to note is that the property market is a highly dynamic landscape. Tools of the trade are not only numerous and multifarious, they also change quickly. So, you have to learn the ropes and educate yourself on a regular basis.
The policy climate is shifting and rules are not set in stone. Apart from that, every state has its own requirements for becoming a real estate agent and getting licensed. At last, customer preferences are volatile, and staying on top of them – an ongoing task. That is a lot to take in, is it not?
6. Tech demands
The best illustration of these kinetic patterns is the fact that nowadays, real estate agents do not compete against each other, but also marvels of technology. Digital hubs like Zillow have changed the game and many people flock there to find their dream home or office.
What is more, agents are under a strong pressure to adopt new communication channels such as messaging and social media platforms. Finally, virtual reality has entered the spotlight and many customers are tempted by the notion of going on a cyber home tour without actually leaving their home.