December 27, 2023 | Being An Agent
5 Things to Consider When Becoming a Real Estate Agent
Embarking on a career in real estate is an exciting journey, but the path to success requires careful navigation. Whether you’re exploring licensing requirements, understanding local market dynamics, or fine-tuning your networking and marketing strategies, each decision plays a pivotal role in the success of your real estate career.
In this article, we will explore a few of the key factors that should be considered to ensure your real estate career starts on the right trajectory.
Thinking about a career in real estate? Click here to read our guide on obtaining a real estate license in Massachusetts.
1. Educational & Licensing Requirements
In order to become a licensed real estate agent, requirements vary by state; however to obtain a Massachusetts real estate license, you must be at least 18 years old, have a high school diploma or GED, and possess a valid social security number.
Massachusetts has a 40-hour pre-licensing course requirements This course covers essential topics such as real estate principles, contracts, and finance, providing you with the knowledge and skills necessary to obtain your real estate license and pass the Massachusetts real estate exam.
Courses can be done either online or in person. Online pre-licensing courses offer several advantages, including cost efficiency, flexibility, and ease of access. On the other hand, in-person real estate classes provide increased interaction and adaptability, essential factors when pursuing a real estate broker license.
For those who have fewer time commitments and want to expedite the pre-licensing process, going the in-person route is typically most advantageous as you are able to complete the course in as little as 1 to 2 weeks. Whereas online options typically take a longer period of time to complete the required 40 hours.
The cost of pre-licensing courses for a Massachusetts real estate license can range from $200 to $700. For more information on the real estate licensing process, be sure to check out our recent blog on ‘How Long Does it Take to Become a Real Estate Agent in Massachusetts’.
2. Choosing A Market
When starting your real estate career, it’s extremely important to strategically determine what geographic areas you will serve. Oftentimes, agents make the mistake of “selling everywhere” which at surface level sounds like a wise decision however it can’t have a negative impact to the long term viability of your real estate business. By being more focused on where you’re able to operate, you can be more efficient with your time, become a true market expert in the core areas that you serve and ultimately provide a higher level of services, and value, to your clients.
Focusing on a concentrated geographic area can enable agents to build greater brand recognition and market share in certain markets, rather than being spread so thin that they aren’t able to build a significant presence anywhere.
Some factors to consider when determining where you want to start your business are understanding local market trends, property values, and economic indicators. A thriving market with a steady demand for housing is more likely to provide a solid foundation to build your business. Additionally, consider your own interests, expertise, and network—aligning your business with areas where you have knowledge or existing connections that you can leverage to gain a competitive advantage.
If you plan to relocate in the near future, you will want to be tactful about investing too much time, energy and financial capital into building your presence in an area that you don’t plan to live in for an extended period of time.
By being an expert in the markets you serve, you’ll know the neighborhoods, property values, market trends, and other relevant factors that can impact the success of your clients who are buying and selling real estate in your area.
3. Time Commitment
Several agents get into the real estate industry for the flexibility it can provide. However, often overlooked is the time commitment that is required in order to build a successful and sustainable real estate career. Real estate is a demanding industry that requires hard work, discipline and consistency. While there is some level of flexibility in terms of the hours that are worked, the hours can be irregular, requiring evenings and weekends, to accommodate clients’ schedules.
The hallmark of a real estate agent is that they want to “get out of the business what they put into it, and that they want their income to directly correlate to the amount of work they put into the business.” Therefore, in order to truly build a strong real estate business, agents should expect to commit to a full-time schedule. Agents who only put in part-time effort, generally receive part-time results.
In a saturated profession where there is an abundance of real estate agents, those who aren’t able to commit to a full-time schedule have an uphill battle to compete against other real estate agents who treat their business as a full-time profession.
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4. Financial Preparation & Expectations
Real estate can be an extremely lucrative business, however it takes time, energy and hard work in order to actually realize the fruits of your labor. It typically takes some time before you start earning a consistent income, which is something that needs to be accounted for, prior to getting into the business. Even real estate agents who have success right out of the gate, likely won’t actually receive their first commission check for up to 2 to 3 months, based on the length of the closing process, especially if you are focused on real estate sales vs. rentals.
Industry averages typically recommend that someone who is looking to jump into real estate sales as a full-time career should have at least 4 to 6 months of financial reserves saved up in order to give themselves enough of a runway to start receiving consistent income.
In addition to having financial reserves set aside, agents also need to be aware that there is typically no base salary for real estate agents. Aside from a few brokerages, nearly all real estate agents are independent contractors that are on 100% commission. With no base salary, and often no benefits such as health or 401k, agents need to make sure that they are comfortable with that type of lifestyle, and the risks associated with it.
Managing expectations and having a mindset focused on learning and growth for the first few years, is typical of the most successful agents who are able to build a strong foundation and long-term real estate career. Trying to take shortcuts to success can work in some markets, however can make it a challenge to thrive in a dynamic real estate market that is always evolving. There are no shortcuts to success when building a long-term business that is resilient in a shifting real estate market.
5. Joining A Team
In such a highly competitive industry, it’s no wonder that there are thousands of companies and options to choose from when determining where to start your real estate career. From completely virtual offices to full-service real estate teams, there is a wide range of models to accommodate your goals and what type of environment you are looking for.
When real estate agents embark on the journey of selecting a brokerage, it’s essential to look beyond the tempting allure of high commission splits. While competitive commission structures are undoubtedly appealing, they should not be the sole determining factor. A thoughtful decision should encompass a comprehensive evaluation of the brokerage’s reputation, training programs, support services, and company culture. Consider whether the brokerage aligns with your professional goals, provides valuable mentorship opportunities, and offers the tools and resources crucial for success in the ever-evolving real estate landscape.
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A brokerage with a strong brand, a collaborative environment, and a commitment to ongoing education can significantly contribute to an agent’s long-term success, even if the initial commission split may seem less favorable. After all, a high commission split only matters if you end up actually selling something. If a brokerage offers a very high commission split, be sure to understand what they will actually provide you in return for that low cost, which is essentially what a commission split is.
As with most things, you get what you pay for. For some agents who don’t want a high level of support, training or resources, this might be the best option. However, for agents who value hands-on training, mentorship, and a collaborative environment with a high degree of leverage in terms of marketing, opportunities and leads, a more full-service team or brokerage might be the better option.
As you can see, there are several factors to consider prior to determining whether becoming a real estate agent is the right path for you. Several people get into the real estate industry with high aspirations, however, very few are actually able to build a long-term career as a real estate professional. By taking the time to do your research upfront, you can help to ensure that you get started off on the right foot, which is critical to having a successful real estate career.
Are you ready to turn your real estate aspirations into reality? Discover how Andersen Group Realty can propel you towards a great career. Click here to send us an email or call 781-729-2329 to get in touch.
