“a real estate agent is someone who has the license from the state authorities to make a property transaction possible between two parties.” According to INVESTOPEDIA,
The basic income source for agents is commission so, it is important that you know what it takes to increase your clients. Try to adjust your approach accordingly in order to finalize the maximum number of deals possible.
Real-estate agents are becoming the essential part of our lives because of the increased amount of people wanting to start out a new business or moving to different cities for new career opportunities. You will need a different type of agent depending on the kind of property you want to trade. There are usually two types of estate agents.
Types of real estate agents
There are usually two kinds of properties that clients often want to trade – commercial and residential. To meet the requirements of both the categories, realtors can also be divided into two categories.
- Commercial – A commercial agent is responsible for completing the commercial property transaction between two parties. These kinds of transactions may take longer than usual because they involve the selling/leasing of commercial properties. On the other hand, residential real estate revolves around the transactions of property that is mostly used for the individual use.
- Residential – As said above, the residential real estate is used for non-business purpose, the transactions regarding commercial property can be done quickly. The commission in these transactions is less than that of commercial properties but it gives the agents more opportunities to make more deals since they take less amount of time to complete as compared to the commercial property. The difference of income between the two properties can be seen below.
How much do real estate agents make?
It is commonly known that the realtors are the big fish of the pound based on the amount of money they make. However, it is not true for everyone. How much do real-estate agents make per year depends on their work ethic and the effort they put. However, the annual rate of income is different for both categories of agents.
The average income of a commercial estate agent is estimated to be around $66,000 – according to a research done in 2016. The estate agent salaries vary from state to state in U.S.A. Lowest figure recorded in that research was $55,000 in Pennsylvania while the highest was around $165,000 in New York.
Residential estate agents earn lower than their commercial counterparts. The average salaries for the agents in this category are about $44,000.00 with the numbers ranging from $24,000-$98,000.
The basic source of estate agents’ income is based on the commission per house they sell. If you want to know how much these agents earn per sale – The details are given below.
How much do real estate agents make per house:
The amount of commission made by realtors per sale is based on actual price of the house. It can vary from 1-10% of that price. If the agent is working for a broker, usually 50% of the commission goes to him.
For example, if an agent sold a house for$200,000 and takes 7% commission on it, the commission he gets would be $14,000, of which %50 goes to the broker. After deducting that percentage, the final amount he earned is $7000 from that deal.
However, it is important to know that estate agents, realtors and brokers do not belong to the same category and the amount they earn also differs from each other. Now you might be thinking how to differentiate between a realtor, broker and an estate agent? Don’t worry, your answer is given below.
How to differentiate between a Realtor, Broker and Real Estate Agent?
For someone who is new to the real estate Industry and has no idea about its terminology, the terms realtor, broker and an estate agent might sound the same or he may struggle to differentiate between them. If you want to know the difference between the three – realtors.com describes it as.. :
- Realtor – A realtor is someone who belongs to the National association of Realtors which is the largest trading group in USA. Some realtors work as brokers while some as real-estate agents.
- Broker – A broker usually runs an agency or have multiple agents working for him. These agents are licensed and have passed some particular exams to keep their brokerage.
- Real estate agent – They usually work for brokers. Their work mostly include selling the properties on behalf of their brokers.
The Characteristics of Successful Real Estate Agent:
According to “kapre.com”, top ten characteristics of a successful realtor are:
- Knowledge of the industry – keeping yourself updated with all the latest trends in the market and acting accordingly is important for the growth of your business.
- A vast network – having a vast network is also helpful to achieve your business goals. The more people you know, the more progress you are likely to make in your business.
- Understanding of the housing market – having good understanding of housing market is an essential ingredient. Being able to know the needs of a client and talking them into buying a certain property is of great significance.
- Attention to detail – a good agent always pays close attention to every little detail. He pays attention to the clients, communicates well with them and is likely to close more deals.
- Engaging personality – Real estate industry is not just about selling the property. It is about selling yourself. It is important that people like your personality. If you are confident in your abilities and have a good attitude, people will feel pleasure in making their transactions through your firm.
- Interest and devotion – It is important that you are interested towards real estate industry. If you are dealing with it as a hobby and act careless, the business will do the same in return and you will fail eventually.
- Determination – There are always ups and downs in a business. When you are having good days, set your goals even higher. When you are having bad days, it is important that you don’t lose hope and be determined to turn it around.
- Honesty and integrity – Being honest and integral is always the most significant characteristic of a realtor. If you have a good reputation among your clients and industry, more and more people will want to work with you. As result, your business will reach the new heights.
- Self motivation – when you meet successful agents in the real estate industry you will find one thing in common among all of them – that is the desire of not having to compromise their freedom, which in other words can be described as they always wanted to be their own boss. Being your own boss means you should be able to handle all the hurdles with brilliant decision making and not losing hope when things are not going your way.
- Problem-solving mindset – You must have a problem-solving mindset in order to succeed in the industry. If you love challenges and like to work them out, real estate industry is the right choice for you.
However, having all these characteristics, you must also know about the nature of business since it is not going to be an easy road to succeed.
Is being a real estate agent worth it? Pros And Cons :
You might be wondering why should you join the real estate industry or, whether being an estate agent is worth it? But, just like every other industry in the world, real estate also has its pros and cons and it is recommended that you know all the positives and negatives that this industry holds for you. Some of them are discussed here.
- Positives – Getting a license to start your career means that you are required to take a few classes in order to prepare for the test and after passing the test, you can become a licensed real estate agent.
- Negatives – You also need to remember that the exam is usually difficult and it takes your time and effort to understand the complex topics.
- Positives – Being a real estate means that you are running your business as an independent individual. The amount you earn is directly proportional to the amount of effort you put in. This is not possible for someone who is working for a fixed salary and no matter how much he works, he is always going to get paid a only a fixed amount.
- Negatives – Being your own boss also means that you are on your own to learn everything. Most the decisions you make might go wrong and cost you at the beginning but your bad experiences will give the lessons that you need to become a successful agent.
- Positives – As an estate agent, you will meet many people that are in an urgent need to buy a house to sell their property to move on with their current life and fulfill new dreams. Serving those people gives you an inner satisfaction and gives your life a purpose to live.
- Negatives – Meeting the clients can also be stressful at times since it involves huge amounts of money being delivered from one client to another. You can’t afford anything to go wrong with it. It will dent your credibility and you are likely to lose reputation of being a good agent.
If you have read all the positives and negatives and still want to become a real estate agent, the requirements that you will need to fulfill are given in the next part of the article.
What do you need to be a real estate agent?
Being a realtor involves following 5 steps:
- You must be at least 18.
- Legal US resident.
- Pass the required test.
- Get a license.
- Complete the training
Real Estate Agents Training:
You need to go through certain steps to complete your real estate agent training. You are supposed to go through different courses and a real estate exam to get your license. Having a license means you have the permission from state to become an estate agent. But before you get the license, you need to take a certain number of classes that prepare for the test.
These classes can be taken either online or by registering yourself at some institute that meets the requirements of the course. To take this course, you need to have a fair amount of money that you will need to pay for the expenses. The fee for this course varies in different states.
For example, in Atlanta, Georgia the pre-license course hour limit is 75 hours while the exam fee is $115.00. However, after getting the license it is not guaranteed that you are going to be successful realtor. You will have to make a humble start and be patience to see the success.
What it takes to be real estate agent:
- Tough start – It is always going to be tough when you start out as an estate agent. First, you will have to find a broker with a good reputation. But it is not easy to find a broker as well, as they always look for certain qualities in person before they hire them as agents. Some of those qualities are motivation, communication skills, personality, professional appearance and organizational skills.
However, it is important to know that you are the right person to become a real estate agent. Some people give their time, effort and money to get a license only to realize they do not have the right personality for this career when they get into practical field.
- Right personality – Having right personality is first and foremost attribute that you need to posses. The real estate business involves a lot of outings, spending a lot of time with clients either in the office or by showing them around new properties.
If you are a kind of person who is afraid of meeting new people and likes to work behind the scenes. This career is not for you.
- All that glitters is not gold – if you look at real estate business from a neutral point of view, you might think it’s easy earning. But it’s not! Making the property transactions between buyers and sellers is never easy. It requires to you have the right communication skills, a lot of effort and energy in order to achieve your business targets.
Although many agents are earning fat amounts of money through this business but it is a very small percentage that is making the full use of potential that real estate industry posses. Most fail for not having the right attitude required to become a successful realtor.
How flexible is being real estate agent:
- You are your own boss – being a real estate agent means you are your own boss. You don’t have to answer anyone whether the business is performing good or bad. But it is also important to keep in mind that when your business is having a bad time, no one is going help you. You will have to sort out all the problems by yourself. Also, you are supposed to be available for your clients 24/7, and the stress that comes with it can be huge too.
- Flexible schedule – Being a real estate agent means you have the luxury of a flexible schedule since you are not bound to an office from 9-5. But having flexible schedule means you will have to utilize it well. You are supposed to meet a lot of clients in one day. You will have to make sure every client is given proper time and their problems are listen carefully.
However, if you are doing all this and still struggling with your business, here are some tips that can help you improve your business performance.
Tips to become a successful real-estate agent:
There are some tips to become a successful real-estate agent. By following these tips, you can witness an impressive growth in your business. Some of them are given below:
- Find the leads
To be a successful real estate agent, you need to get as many leads as possible. A lead helps you find new clients. It can either be through an introduction to someone you have not met before or by different advertisements that you see social media, print media etc. The more number of leads you have, the more likely you are to make new clients and close out deals.
- Advertise yourself
Advertisement is important for your business. It helps more people to know about you. You can advertise your business through social media, digital media, print media or through traditional methods such as leaflets and postal cards. Also, stay in touch with your clients and make sure they are inspired by your services. As a result, they will keep coming to you with more potential clients in the future.
- Good knowledge
Having proper of the local market is a must. You might get a lead but to turn your lead into a client, you must have comprehensive knowledge about all the restaurants, hotels and properties available in the neighborhood. It can be done by spending your time with local brokers and the owners with different budget capacities.
- Social media
Social media is considered to be the most popular form of advertisement. If you are not using it to advertise your business, DO IT NOW! As Majority of the people are on social media nowadays and you can get their attention by creating interesting content on Facebook, Google+, LinkedIn and YouTube to highlight your business.
However, it is not all about the agents. Clients are the key factor for the success of Industry. In fact, they are like oxygen and if not for them, your business wouldn’t grow at all. Hence given below are some tips for the clients while looking for an estate agent.
How to find a right real estate agent
If you are a client looking to sell or buy a property, you will often find yourself asking how to find a right real estate agent. Well, no one can blame you since you are looking to make a big investment and want financial security. To find a right agent, you must make sure they have the following attributes before you finally start making your deals through them.
- He must have a likable personality. You are probably going to spend a few months with them with your property transactions. If don’t feel comfortable around them, they are not the right agent for you.
- A good agent is trustworthy. Someone you can rely on. His attention will be focused on what you need and will not waste the time on a property that does not contribute to your requirements.
- Always ask your friends and family before you start working with an agent. Visit at least 3 or 4 or may be more and sign up with someone who has the right attitude and skill to fulfill what you are looking for.
Lastly, if you live in Atlanta GA or want to make your property transactions through a credible firm, you will find many websites/firms claiming that they provide the best real estate agents in Atlanta GA. However, from my personal experience, I will suggest that you go to the Chris Lazarus – one of the most iconic figures in the real estate industry of the Atlanta, Georgia. He is the Chief Operating Officer of “Sellect Reality”. The company was formed a mere 6 years ago and its annual sales have surpassed the $90million mark. It’s clients include business tycoons, entrepreneurs, and former Olympians. Sellect Reality ranks amongst the top 5% real estate firms in Georgia with over 150 employees across the state and is still growing at a rapid rate.
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