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So You Want to Become a Realtor

By
Industry Observer with The Wine Siren & Agent Caffeine

Looking at real estate as an industry and as a profession can be a pretty intimidating thing.  Unless your family was involved in investing and bought multiple properties, chances are you hadn't been exposed to much of the how to's of the profession.  It took me years of consideration before I finally decided to take the plunge and if I can share with you a few things I've learned along the way, I hope it will help you undertand what it's like to start and how you can be successful.

Trees, pink cloud and a sunset in Nuuanu

In this land of over 6300 licensee's what you won't hear when you go to real estate school is approximately 35% of all the agents on Oahu will do 2 or less transactions within a 12 month period.  Had I heard this when I started, I probably would've headed for the door, but my goal is not run you out the door but to give you a real world idea of what to expect and some ideas to put you well past the two transactions a year (or less) track.

1)  Choose the right school. Even if you have a business degree (in Hawaii you can waive the classes with a BS/BBA) there is so much to learn, if you skip the class you will miss out on key points that will make your life easier later on.  Training is crucial in this business.

2)  Save enough money or prepare to be supported by friends, or family while you begin your business.  Becoming a realtor is not a job, you are starting a company.  In that vein you must act and respond as an Entreprenuer.  Meaning, you live, work, eat and sleep the business until it is no longer a start-up.

3)  Choose an excellent company to hang your license at.  Excellent companies don't hire just anybody.  They INTERVIEW you to make sure you are a good fit, and you should also INTERVIEW them to make sure they are a good fit with you. An excellent company will be well established, have full time, extremely experienced management, coaches and support, as well as systems and technology you can use to build your business.

Kelly Mitchell & Bill Chee Prudential Locations

4)  Sundays are your friend, your very best friend.  One of the best ways to get better versed on your real estate dialogue is to work open houses (every Sunday at least initially), practice presentations on friends and family and have regularly scheduled business appointments with prospects and or busines contacts that can provide you with referrals. Help other agents with their open houses if you don't have a listing.  It's a great way to meet buyers who don't have an agent.

5)  This business is constantly evolving.  You will be evolving too!  Training is ongoing and what you don't have to take you should consider as an addition to your arsenal. Recognize your shortcomings and develop those skills that are weak.  

6)  Set goals for your business and your personal life.  Without goals you have nothing to achieve, no benchmark.  Strive for balance - it can be a saving grace.

7)  Embrace technology.  It's not an option if you want to survive in the Internet era.

Tmobile Pocket PC

8)  Know that nothing says more about you than your clients.  Treat them well, have a good sense of Ethics, integrity and do the right thing.  It goes a very very long way.

9)  If you are worried about money, prospects and people can sense that and will not respond positively to you.   

10)  Make your work fun and understand that you are making a difference in people's lives.  You are helping them with the single most important investment in their life.

It can take up to two years, for some even longer, to get their businesses to a point where they are making enough money to make them comortable.  A real full time agent is one who makes their bread and butter from real estate, they invest in real estate and they do what they tell their clients to do.  This is an amazing business and it takes guts, a desire to learn and a need to do the right thing to be truly successful.

Comments (19)

Boomer Jack Boardman & Carl McIntyre, the Codgers
Noted Curmudgeons - Saint Paul, MN

Kelly: Since you were kind enough to stop by the Codger’s™ Cyber-Café, the least we could do is visit your blog. Clever photo that, featuring the backside of the phone—eye-catching.

Jay
Jan 04, 2007 09:49 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
This is one of the best KISS plans put together for someone that is considering entering the industry that I have ever seen!
Jan 04, 2007 11:43 PM
Home Design
Alpharetta, GA
Home Design and Real Estate
Nice Post, it's crazy that everyone thinks this business is so easy.  With a 80% fail rate within 2 years, how can that be?
Jan 05, 2007 12:10 AM
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate
Excellent post Kelly and good information.  I would like to add one thing...don't get into it unless it's your lifelong passion.  It doesn't make a good job...it makes a wonderful career.
Jan 05, 2007 01:35 AM
Laura Monroe
Inman News - San Francisco, CA
Dir. of Industry Engagement & Social Media
Frankly, I don't know how you all do it! I admire each and every one of you Realtors. If only consumers had a larger understanding of what goes on behind the scenes, and the amount of hard work it truly is!
Jan 05, 2007 03:44 AM
Barb & Jennifer White
Re/Max Xecutex - Centreville, VA

Kelly Thanks for the great post.  You brought attention to ver yood things.

I strongly agree that everyone looking to jump in to real estate must be technology friendly.  I think internet is the future of this business.

Thanks & Good Luck!

Yasir 

Jan 05, 2007 03:53 AM
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert
Kelly great post....every now and then when I do a contract, there are someone out there who feels that they should be doing what I'm doing.  Though there is nothing wrong with that.  I believe that everyone should go into any business because they love it and like working with people.  It's not just about the money because if you don't service your customers, there will be no income.  Good reflections for everyone to think about
Jan 05, 2007 03:59 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Totally agree with Number NINE!!!  It is the biggest killer for new agents.  Most who leave, fail due to this item.  It's a Catch 22, those who need the money most can't make any because their anxiety is written all over them.

Great Article! 

 

Jan 05, 2007 04:05 AM
Teri Isner
Keller Williams Realty at the Lakes - Orlando, FL
GRI, CRS, CIPS
Might help if we start charging 25K to get into the business then at least the prospect would think twice and we wouldn't get every relative and friend getting into business without enough $$ to really compete in the business.
Jan 05, 2007 04:43 AM
Kelly Mitchell
The Wine Siren & Agent Caffeine - Napa, CA
TheWineSiren.com Food | Wine | Fab *Napa Valley

Hi Jay,  Thanks for stopping by.  You guys are great!

Renee, I appreciate your kind words.  KISS seems to work best for newbies.

Jennifer, You're absolutely right.  I didn't even mention the stress part, which probably has a good influence and leaving the business.

Chris, Great point.  This is a career, not a hobby or a job.  Having passion for this career, truly makes a difference in how well one does.

Laura, I truly believe sometimes we don't know how we do it all.  It must be directly tied to having passion for the career, and caring about the people involved.  Chris had a great point about that.

Barb & Jennifer, Thank you for your feedback on technology.  Have you seen the Take the Tech Plunge by Chris Bonita?  What a wonderful reminder of what we should be doing. 

Netta, If they only new what really goes on behind the scenes!  Thank you so much for stopping by.

Ardell, It's almost like they can smell the fear isn't it.  Thanks!

Teri, Now that would put it along the lines of a country club admission.  Hmmmm. It is definitely an exclusive club of sorts.   Not sure if I would have still put out the blood sweat and tears plus the 25k.  But there has got to be some sort of litmus test beyond the initial exam.

 

Jan 05, 2007 05:43 AM
GA-agent.com Georgia Real Estate Directory
GA-agent.com - Canton, GA
I wish I had read this a long time ago!
Jan 05, 2007 05:45 AM
Marisa Ladd
Austin Texas Homes, LLC - Austin, TX
Austin, TX Real Estate
Great article, Kelly.  It's so hard to get advice like this starting out -- I wish I would have gotten some good honest advice before I took the plunge.  I couldn't be happier in real estate but there were certainly a few surprises along the way!  Number 9 is so true --  the second you start counting that commission check, things always fall apart.  
Jan 05, 2007 07:53 AM
Teresa Boardman
Boardman Realty - Saint Paul, MN
Real estate companies churn then and burn them.  There are some important things all new agents need to know.  Your real estate company is used to new agents failing and will just recruit more.  Knowing how to use technology is not an option.  People who are not comfortable working on the interent should not go into real estate.  The biggest reason for failure that I see is under capitalization.  Sure there are stories where new starving agents go wealthy but it is rare, which is why the stories are so popular.  People think they can start a business with nothing, they can't.  You need at least six months income in the bank and enough money to pay your business expenses.  Kelly - your post is one of the few that mentions the fact that you do need money.
Jan 05, 2007 09:30 AM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

Kelly:

I think you highlight that a real estate practice is truly a business venture, not unlike a new physician, chiropractor, attorney, or dentist.  Small cash reserves and poor planning contribute to the downfall of most new businesses. 

Jan 05, 2007 04:00 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Kelly - I find

6)  Set goals for your business and your personal life.  Without goals you have nothing to achieve, no benchmark.  Strive for balance - it can be a saving grace.

To be the most tricky by far to integrate.  Thanks for the reminder.

Jan 06, 2007 12:24 AM
Craig Bartels
The Indy Realty Shop - Indianapolis, IN

another amazing statistic is that 80% of realtors will no longer be in business 2 years after they start. And that 90% of the transactions are done by 10% of the realtors.  

I would like to think that the people on activerain will be different then the average!

 

 

Jan 06, 2007 01:00 AM
Shane Sarae
Honolulu, HI
Thank you very much for sharing, very useful information!
Jun 24, 2007 06:45 PM
Pete C
TBA - Kailua, HI
Hawaii Mortgage Loan and Refinance
Good stuff, especially #9.  When I am in a slump, clients can sense the desperation.  When I'm doing well, business just keeps coming.  That whole law of attraction thing I suppose.  Good post.
Jul 02, 2007 01:42 PM
Bruce Bourgault, Vice President, Mpro
Central Pacific Homeloans - Honolulu, HI
Hi Kelly -This is a  great post and could apply to loan officers as well as realtors.  You are your own company and you need to act that way from th eonset.  Thanks for this post.  Aloha
Jul 15, 2007 07:43 AM