California Real Estate Exam: Everything You Need to Know
6 min
Homeownership comes with major perks. It allows you the freedom to create your own unique living environment and an increased level of financial stability. It also offers you the ability to build equity in your home.
This article will outline everything you should know about home equity, how to build it, and the best way to use it.
Homebuyers are driven by several factors, including a desire for independence, control, and self-expression, which can be summarized in an acronym known as U.P.T.E.E., which refers to a property owner’s bundle of rights.
These rights are as follows:
With these rights comes the possibility to build value, or home equity, in your home. That equity allows the homeowner’s right (and defined by the right to “encumber”) to borrow money against the property to secure a loan.
Equity is the difference between the amount of money that you owe the mortgage lender and the amount of money that your home is worth.
Over time, you will make mortgage payments on the house, reducing the loan’s principal balance, thus building equity by increasing the percentage of the home you actually own.
If you were to purchase a home worth $300,000, for example, using a $30,000 down payment, you would automatically have $30,000 of equity at closing.
As you make each payment toward your mortgage, your loan balance will decrease. This builds more equity as long as the value of your home remains the same or increases over time.
Once you pay 100% of your mortgage, you will have 100% equity.
Sometimes, home prices can drop sharply, and a homeowner may owe the lender more than what the home is actually worth.
Using our example, if the home’s value dropped to $200,000 and you still owed $240,000, the loan would be considered “underwater,” or you would have “negative equity.”
There are several different ways to build equity in your home, including:
You can tap into the equity of a home you have built as a low-cost and convenient way to borrow money and take advantage of great interest rates.
Depending on a person’s credit score and financial history, a lender will generally want to see a loan-to-value (LTV) ratio of 80% or less. That means their home equity is at 20% or more before the lender allows them to borrow against the equity in their home.
Lenders will typically let you borrow up to 80% of the total value of your home.
Most home equity loan terms will range between five and 20 years. But borrows can take 30 years to pay a home equity loan.
Because a significant amount of a borrower’s monthly loan payment goes directly to interest payments at the beginning of the loan term.
It can take five to seven years before a homeowner can reach the 20% equity threshold.
There are several reasons why you would use your home equity to borrow money, such as…
Many small business owners will tap into home equity and use the money to help grow their business. The move is particularly advantageous when avoiding higher interest rates associated with a small business loan.
Emergencies happen. Most financial advisors suggest having an emergency fund covering six months of your living expenses. But that’s hard for most people to do. A home equity loan may be your best choice when faced with an emergency and no way to get the finances you need.
Home equity loans can be great tools for consolidating high-interest debts at lower interest rates. You can use this method to help you pay off personal debts like credit cards and car loans.
If the lender approves, you can use your home equity for covering college expenses. Although student loans are usually your best bet for paying college expenses, home equity loans can sometimes offer better low-interest options.
Home equity loans are most commonly used for home improvement projects because, in addition to making your home more livable, comfortable, and desirable, the upgrades that you make can potentially raise the house’s value, thus building more equity. It can really be a win-win.
There is no doubt that most Americans who can purchase a home do so to put a roof over their heads. Still, through equity, homeownership truly becomes an investment.
A home equity loan serves as a valuable tool for the responsible homeowner who needs access to cash. Low-interest rates and tax deduction opportunities make a home equity loan an excellent choice for any homeowner.
They just have to make sure they have a steady income that can repay the loan.
Starting a career in real estate can be exciting. But choosing the best brokerage for new real estate agents is one of the most important decisions.
With so many options, from big name firms to innovative new models, finding the right fit requires careful consideration.
Whether you’re looking for the best real estate brokerage for part-time agents, a firm that offers comprehensive training, or a place with competitive commission splits, understanding the pros and cons of major brokerages is essential.
This article explores the top real estate brokerages for new agents in 2025, helping you navigate through the most reputable names in the industry.
eXp Realty operates with an 80/20 commission split, meaning agents keep 80% of their earnings while the company retains 20%. Once an agent pays $16,000 into the brokerage (the cap), they earn 100% commission for the remainder of the year.
After capping, agents only pay a small transaction fee of $250 per deal, which reduces to $75 after contributing $5,000 in total transaction fees.
New agents go through a mentorship program with a temporary 60/40 split on their first three transactions to ensure they receive guidance during onboarding.
eXp Realty continues to attract new and seasoned agents with its innovative, agent-first model, providing a unique combination of virtual work flexibility, stock incentives, and a growing support network.
This brokerage appeals especially to tech-savvy new agents seeking autonomy and unlimited earning potential.
Compass operates on an agent-specific commission split, meaning the terms are often negotiated based on the agent’s experience and production levels.
However, many agents report an average split of 80/20, where agents keep 80% of their commission and Compass takes 20%. The structure offers flexibility, but new agents may face challenges in securing favorable terms initially.
Compass remains a top choice for agents focused on luxury markets, offering unique benefits and tech-driven solutions.
However, the brokerage’s performance-based splits and evolving financial strategies require agents to carefully assess whether it aligns with their business goals.
Coldwell Banker typically offers a 60/40 commission split, where agents retain 60% of their commissions and the brokerage keeps 40%.
However, splits may vary depending on the region and office, with some new agents starting at a 50/50 split.
There is no company-wide cap system, meaning agents continue sharing commissions with the brokerage regardless of performance levels, though top producers may negotiate more favorable terms, such as 70/30 or even 90/10 splits in certain offices.
Despite the commission dilemma, agents benefit from a strong brand presence. This is beneficial especially for new real estate agents.
Realty ONE Group is the first brokerage on the list that operates on a 100% commission model. This allows agents to keep all of their commission earnings.
Instead of taking a percentage from transactions, the brokerage charges agents a flat monthly fee along with a nominal transaction fee.
This setup appeals to agents seeking to retain maximum earnings while benefiting from the company’s marketing, tech tools, and support network.
Realty ONE Group is ideal for agents seeking to maximize earnings while enjoying autonomy over their business operations. Its growth and success demonstrate the appeal of the 100% commission model in today’s competitive real estate landscape.
Redfin operates under a unique structure where agents are W-2 employees instead of independent contractors.
The Redfin Next compensation plan offers commission splits of up to 75% on self-generated transactions and 40% on deals sourced through Redfin’s platform.
Additionally, agents benefit from covered business expenses and perks, such as marketing support, health insurance, 401(k) matching, and stock purchase options.
Redfin stands out as a tech-powered brokerage, offering a blend of job security, lead generation, and comprehensive benefits.
This model is ideal for agents seeking a stable, benefits-rich environment with a focus on closing transactions rather than traditional business development tasks.
Century21 typically starts new agents with a 50/50 commission split, meaning agents take home half of their earned commission, while the rest goes to the brokerage.
Additionally, agents are subject to an 8% franchise fee, which is either partially or fully covered by the agent, depending on the franchise location.
However, experienced agents can negotiate more favorable splits—potentially reaching 70/30 or even 100% commission after meeting certain performance goals or revenue thresholds.
Century21 is an attractive choice for agents looking for a strong brand and structured support, particularly those just starting in the industry.
Its mentorship programs and extensive network offer valuable learning opportunities, though agents must carefully weigh the franchise fees and split structure against their earning potential and long-term career goals.
Berkshire Hathaway HomeServices typically offers a 60/40 commission split to new agents, meaning 60% of the commission goes to the agent and 40% to the brokerage.
However, experienced agents with higher sales volumes can negotiate splits as favorable as 80/20 or even 90/10, rewarding top performers.
Agents also pay a 6-7% royalty fee, which is standard for franchises, and the split may vary slightly by location and office policy.
Berkshire Hathaway HomeServices is ideal for agents seeking to work with a globally recognized luxury brand. Its commission flexibility and extensive resources attract seasoned professionals, while new agents benefit from structured training.
However, those just starting may need to evaluate if the brand’s fee structure and luxury focus align with their business goals.
At Sotheby’s International Realty, agents typically start with a 70/30 commission split, where they take home 70% of the commission while 30% goes to the brokerage.
In some cases, experienced agents with high sales volumes can negotiate more favorable splits, such as 80/20 or better. Although there is no formal cap, the split improves as agents demonstrate strong performance and close higher-value deals.
Sotheby’s International Realty stands out as an ideal choice for agents seeking to work within the luxury segment.
With its expansive network, prestigious reputation, and advanced tools, the brokerage provides significant opportunities, though it may suit more experienced professionals better than those just starting in real estate.
RE/MAX is renowned for its 95/5 commission split, where agents retain 95% of their earnings while the brokerage takes only 5%. However, this plan comes with monthly desk fees that vary by office, typically ranging from $300 to $2,500. For agents looking to avoid these fees, RE/MAX offers an alternative payment plan with a lower split, such as 80/20 or 70/30, until they meet a yearly cap of $23,000. After reaching the cap, agents switch to the 95/5 split for the remainder of the year.
Performance Metrics
Pros of RE/MAX
RE/MAX offers two main commission models. The first is the 95/5 split, where agents keep 95% of their commission, with only 5% going to the brokerage.
However, this plan requires agents to pay a monthly desk fee, which varies by location and can range from $300 to $2,500 per month.
For agents who prefer to avoid the desk fee, RE/MAX provides an Alternative Payment Plan, which offers a lower commission split but no monthly fee, allowing greater flexibility for newer agents.
RE/MAX remains an attractive option for agents seeking autonomy. For new agents, they may benefit from the great commission split too.
Keller Williams Realty is the largest real estate franchise by agent count, with over 191,000 agents across 1,100 offices worldwide.
Known for a culture centered on education, technology, and profit-sharing, Keller Williams ranks consistently high in transaction volume and agent satisfaction.
The education aspect is what makes Keller Williams a great real estate brokerage for new agents.
Agents at Keller Williams typically operate on a 70/30 commission split—70% of the commission goes to the agent, while 30% goes to the brokerage until a cap is reached.
Once the agent reaches the cap (which varies by market), they retain 100% of commissions for the rest of the year. Additionally, the company’s profit-sharing model allows agents to earn passive income based on the brokerage’s profitability.
In recent years, Keller Williams agents have consistently exceeded 1.1 million transactions annually, closing over $470 billion in sales volume across North America.
This high transaction volume underscores its effectiveness in empowering agents with tools and training to succeed at scale.
Keller Williams boasts 1,100+ offices and 191,000 agents, making it not only the largest franchise by headcount but also a leader in units sold across the U.S. and Canada.
This balanced approach makes Keller Williams an attractive choice for new agents, especially those seeking a strong support network and opportunities for growth.
However, potential agents should carefully evaluate market conditions and cap rates in their area to ensure the best fit for their business goals.
Choosing the right brokerage is a crucial step for new real estate agents looking to build a successful career. Each of these top brokerages—whether it’s the virtual flexibility of eXp Realty, the tech-driven approach of Compass, or the luxury market focus of Sotheby’s International Realty—offers unique advantages and challenges.
Agents must carefully weigh factors like commission splits, fees, training programs, and market specialization to find a brokerage that aligns with their goals.
By evaluating their priorities and understanding each company’s strengths, agents can position themselves for growth, profitability, and long-term success in the competitive real estate industry.
Whether you passed the state exam or you are still studying, you might have thought about the brokerage interview process.
It deserves a moment of recognition before you trudge onward in your path to become a real estate agent.
After passing the state exam, you’re given your real estate license but nowhere to hang it. That’s why you have to sign with a brokerage.
Signing with a brokerage is the final step to becoming a real estate agent.
Also known as “hanging your license,” signing with a brokerage contractually employs you. Every agent signs with a brokerage.
People will often become timid or nervous before their big interview.
Those feelings are natural, but you should know there’s nothing to fear. Real estate agents don’t need previous experience or a flourishing work portfolio to impress the hiring team.
When you interview at a real estate brokerage, there are 4 tips you should remember:
Now, let's explore what each one of these tips means in more detail.
From the moment you walk in the front door, look around the brokerage office. Feel the environment, meet the people, and look at the decor.
What kind of coffee do they have in stock? Is the office pet-friendly? Are people genuinely disgruntled to be there at the start of the week?
These are simple questions and observations to feel the office culture.
Little do most newbie agents know, but the office culture is among the most important parts of the interview process.
The brokerage should help you grow and become a professional, so being stuck in an environment that doesn’t fit your culture will stiffen your development.
Feel the brokerage culture. If you like what you see and hear, then the brokerage will be a good fit for you.
Don’t settle for the first brokerage you interview with. You have all the power to find the best place to hang your license.
When you interview with a brokerage, you will be meeting the team that dictates the business’s direction. During your interview, they will ask you questions to learn more about you.
What they are looking for is your passion behind your career.
Questions like “Why are you interested in us,” “Why real estate,” or “Where do you see yourself in 5-years” are common questions that come up in an interview because they help vent the applicants.
Brokerages seek people who have the drive to excel in their careers and help generate revenue.
You don’t need the experience to show them passion.
Becoming your authentic self by answering these questions honestly will help them understand who you are, which is the goal of the interview.
Don’t be afraid to show them your personality and who you are – so long as you remain professional.
Most interview applicants will forget to ask questions. Asking questions is the best way to show passion, drive, and enthusiasm.
Questions pertaining to the brokerage’s goals, success, and environment are helpful to ask.
But, the two important ones to bring up are:
Brokerages serve you, the real estate agent, just as much as you serve them.
They should provide you resources to develop professionally and grow as an agent.
If you feel like you won’t have access to these resources, then you should critically assess if you want to work with this brokerage.
Interviews are two-way streets. Use this opportunity to ask questions and figure out if the brokerage is the right fit for you.
This won’t seem interrogative from the broker’s perspective, because it will show off your passion.
Dressing well for the environment will always show the brokerage that you match the culture and you’re a professional.
Showing up in clothes that match the office culture will reduce the barriers you place between yourself and the interviewer.
Finding out the brokerage dress style can be done with a little research on their website.
They might have images posted that will give you clues on how the office dresses.
The worst-case scenario: dress professionally with a splash of color. You’re a professional, but more importantly, you have a personality.
Brokerages hire real estate agents who will represent their brand well.
They don’t want to hire someone who is unprofessional and will tarnish their reputation.
Showing up to the interview and with a warm, friendly personality will go further than you might think.
You don’t need the experience to become a real estate agent, so showing the brokerage that you’re able to abide by the brokerage style, culture, and values will help you pass the interview.
Brokerages take responsibility for the agent’s actions.
During the interview, the broker will be vetting you to make sure you will properly represent the business.
If you can show them that you will always be professional and have the best interest of the brokerage and your professional development, then you can do no wrong.
We want to hear what’s on your mind before an upcoming interview.
A real estate license creates money-making opportunities for you.
Of course, many people get into real estate to broker deals between buyers and sellers and gain a commission.
But, there are other powerful ways to make money with a real estate license.
Here are 6 ways you can make money with a license that we will talk about in this article:
So, let’s look deeper into each idea to see how you can start making money. Let’s jump in.
What exactly is a Referral Agent?
How do agents make money if they aren’t involved in the transaction?
Referral Agents make money by sending their clients to another agent that they know and trust.
The other agent handles the transaction. Because they brought the business to the other agent, they receive a referral fee when the deal closes.
It’s as simple as that.
The typical referral fee is 20-25% of the other agent’s commission. So let’s say if their commission is $50,000 and you get a 25% referral fee, then that’s $12,500 in your pocket.
Boom.
You might wonder why someone would want to be a referral agent.
Some people get their real estate license to find clients in the field that they work in. Let’s say you work with professional athletes. You find out that an athlete is looking for a new home.
Not only can you refer them to someone who can help them but you can get paid for it too.
Why not get paid to refer your clients to a trusted agent?
It all starts with joining an office that you genuinely enjoy working at.
Find an office that is supportive, has great training, and offers a good commission split.
Creating a downline means you recruit others to your office. When you’re excited about where you work and what your brokerage offers, it’s easy to recruit for them.
You might wonder how you can make money doing this.
Typically, most brokerages reward agents for helping in the growth of the company.
They do this by offering you a small percentage of the profits. When agents you recruited have closed a deal, and the office is profitable that month, you get rewarded.
The more people you recruit to an office, the larger your downline becomes.
This gives you a greater chance of receiving passive income when those agents close deals.
So, creating a downline can be a lucrative way to make money with your license.
Many real estate agents become investors.
They flip houses or buy income property to make a profit. When you find the right listings it’s very easy to make a profit.
One of the great advantages of being a real estate agent when investing is this: first dibs.
You get notified when properties first come on the market. You can easily identify which properties are a great deal and make an offer on them before others have a chance to. When it comes to investing, this is crucial.
If you’re investing in real estate, represent yourself!
Let’s talk about one of the advantages of representing yourself in the transaction.
You can use the commission you received as the buyer’s agent as a down payment. This is a great tool to help you buy additional investment properties as well.
But you don’t have to be an investor to take advantage of representing yourself.
When you’re selling your home, you can save on the commission given to the listing agent. If you’re buying a home you can pay yourself as the buyer’s agent.
Representing yourself: it’s a great opportunity to save on costs and commission.
You already know that being a real estate agent is a great way to make money.
That’s why you got your license.
Do you have bigger goals of leading other agents or growing a team in the future?
Instead of hanging your license at an office, you can become a broker.
After you meet the educational requirements and pass the state test, you can get your broker’s license.
Having a broker’s license means that you can work independently. It also means that you can have sales agents under your license.
As a broker, when you have other agents closing deals, you get a percentage of the commissions. It’s a great opportunity to lead other agents to succeed while growing your own wealth.
There are many ways to monetize your experiences as a real estate agent.
Here are a few ideas on how you can use your credentials to make money in real estate:
As a REALTOR®, you can use your credentials as an educator. You can become a mentor to other agents. You’ll get a percentage of the deal for your guidance through the transaction.
Do you have a passion for teaching? You can become a trainer at a real estate school.
Another great option is to become a real estate consultant. This model will allow you to consult with clients on an hourly basis.
Usually, consultants will offer their services as it relates to investing or financial planning through real estate.
Real estate blogs and websites are becoming more popular in this digital age. Freelance real estate writing is another great way to get paid for sharing your expertise.
Having a real estate license is not limited to helping others buy or sell properties.
The real estate field gives you creative ways to utilize your license and make a living. So, take advantage and explore your options.
Did this inspire some ideas? Let me know in the comments below!
How do I find who owns a house? If you are a newly licensed agent, you may also be asking, “Why would I need to know how to do this?”
There are many reasons why knowing how to find the property owner is valuable. The most obvious reason would be for prospecting new leads. Maybe one of your buyers wants to make an offer on an off-market listing. You may be working with investors who are interested in a vacant house.
So, how do you find the property owner? You can accomplish this in several ways. Some are simple and some require some extra effort, but all are effective methods.
As a real estate agent, you have several resources you can tap into to get this information. We have listed 4 ways you can go about finding the owner of a property. The first two don’t even require having a real estate license!
This one is simple. Just knock on the door and ask!
It might feel awkward to just knock on a stranger’s door, but as a real estate agent, this is considered a lead opportunity. If the owner is not home, leave behind your business card or door hanger with your contact information.
If you are targeting a specific home for a buyer and the owner isn’t home, don’t leave just yet.
Go knock on the neighbor’s door!
Remember: be prepared before you walk up to their door. Announce that you are a real estate agent and have your business cards ready and your name badge on.
Most neighbors are receptive and friendly. They will know who is living next to them and offer you the property owner’s name. But, be respectful of those neighbors who are not comfortable and may not want to share that information with you.
Another way to find who owns a home is to use the County Recorder’s Office.
Technically, you don’t need to have a real estate license because it’s of public record.
This method will require a little more effort on your part.
You will have to physically go down to the county recorder’s office and request the records for that specific property. Here you will find all the information like the owner of the record, liens against the house, and title transfer.
So, if you are unlicensed and just need this information for whatever reason, this is a great option.
The MLS stands for the Multiple Listing Service. It is an online database of all the properties that are listed on the market. Agents can find all the details on a property by using the MLS including the property owner.
While its primary use is to find listed properties, you can also search public records on the MLS for properties off-market. The search criteria will allow you to enter either the address or the APN number if known.
What is an APN? The APN is the Assessor’s Parcel Number and it’s a unique code given to each lot when subdivided by the county Assessor.
Using the MLS is extremely helpful when you are trying to locate the owner on a specific off-market property. This will be invaluable when working with an investor interested in making an offer on one or more homes.
Most agents will use the public records on MLS to create an opportunity when the listed inventory is scarce. It allows the agent to create targeted marketing specifically for the owner of the home letting them know they have a buyer.
While the public records on the MLS are practical, it does not have a comprehensive overview of the property.
This brings us to the other effective method used by real estate agents.
This is the best way to find out who owns a house.
A title company has access to all the same public records but it’s online and more comprehensive. This makes finding information way easier!
You can get access to do a title search online with the help of a title representative. They are crucial to your business as a real estate agent. This is why most agents will form a relationship with a title rep that they can count on and trust.
They can give you access to their title search system by giving you your own login info. You can search by address or by APN number. If you have the owner’s name, you can also enter it to see what other properties they may own.
The title search will give more detailed information beyond the owner, such as year built, bedrooms, bathrooms, and square footage.
Also, it will tell you all the recorded mortgages on the house, what position they are in, when they were started and when they end, information about current and past owners, and liens. The title report will also disclose assessed property values, current tax information, and delinquent tax information.
Pulling a title report is extremely thorough. It’s probably why it’s the most commonly used method by real estate agents.
Doing a title search is also a great way to send targeted marketing information. Here is an example:
You are an agent who wants to send postcards to all property owners who have 3 bedrooms, 3 bath homes in Beverly Hills because a buyer is interested in that area but there’s no inventory.
A title representative can pull a mailing list specific to match those criteria.
Once you have a list of all the homeowners, it’s just a matter of connecting with them and opening escrow.
Finding the owner of a property just became a lot easier now that you have the tools and resources. Let’s review the methods that you have at your disposal and when you would want to use them.
Keep it simple and start by knocking on the owner’s door. If they’re not home, ask a neighbor.
When going to the property is not an option, take a trip to the County Recorder’s Office. You will be able to make your request for the details on the property in question.
If you are a licensed real estate agent, remember you have access to the public records on the MLS for a simple search and use the title for a more detailed search on the property.
Congratulations, you have buyers!
They’re motivated and excited to go house hunting. Before you just pile everyone in a car and hit the ground running, take a moment.
You want to do this the right way.
What’s the biggest secret to success in real estate? Being prepared! So, how do you prepare for buyers to be shown properties?
There are a few things you need to consider to make the process more seamless and convenient.
We’re going to discuss the 9 tips to help you effectively show properties.
Before you take your clients out to preview homes, do the research. Research the properties the day before taking your clients out to ensure that you have the latest listings.
If you research these properties too far in advance, these homes may have already been sold.
Especially if it’s in an area that is high in demand.
You don’t want to disappoint your clients by presenting any properties that are no longer available. Not being prepared will leave your buyer uncertain that you are a capable and professional real estate agent.
Make sure you know the route to the properties. How embarrassing would it be to get lost on your way there?
Do a test run.
It’s a good idea to drive the routes to all the listings the day before you show the property to your clients. If there is construction or an unforeseen road closure you can prepare to alter your route.
It makes it easier for when the time comes and proves that you are an area specialist.
Use the navigation on your phone or in your car to plan the order that you’ll be seeing the homes. It will maximize how many properties you can see in one day and be more time-efficient.
If you are not taking your client in your car, you can share the directions with them.
Have your buyer’s packet printed and ready when you meet with your client. This way you and your client will be able to reference the same information when previewing homes.
The buyer packet is a list of all the properties that you will preview that day. It will list all the pertinent information about each property. This includes the price, how many bedrooms and bathrooms, and the square footage.
Your buyer can take notes directly on their packet. If they are viewing multiple homes on one day, this will make it easy for your buyer to remember what they may have liked or disliked about each of the properties.
It’s important to keep safety in mind for both you and your client. Make it a habit to announce yourself when entering a property. Don’t assume that no one is home, even if you ring the doorbell or knock and no one answers.
There may be instances where someone may still be on the property at the time of your arrival. Announcing your presence will make sure you don’t alarm anyone or take them by surprise.
This will also help you avoid any awkward encounters.
While not common, occasionally a transient or homeless person can be in the property. Especially if the home has been on the market for a while and is known to be vacant. The practice of announcing yourself will ensure your safety.
To keep a home, REALTORS® use a lockbox to gain access. Every opening is documented so that all parties know who accessed the property. Each real estate agent will have their own passcode that they will enter.
A lockbox is a container that holds a house key. Only real estate agents who are members of the local real estate board will have the ability to enter the home by using this lockbox.
Typically, a real estate agent will sync their phone to a lockbox so they can put in their pin. Although this will depend on the type of lockbox being used. Sometimes the listing agent will require an additional code to gain access, so be prepared.
It is very unprofessional when you can’t open the lockbox to retrieve the house key. Make sure you are thoroughly reading the property showing instructions and get all the information ahead of time.
In general, be sure that everything you are using to conduct your real estate business is working. Whether it’s your lockbox, your cell phone, or your car be as prepared as you can for a trouble-free experience.
It’s important to shift your focus once you enter the property. You don’t need to be a salesman once you’re in the house. Let the house sell itself! Let your client form their own first impression on whether it will be a good fit for them.
Instead, give your client advice and your opinions on the home based on what you know they are looking for. Again, buying a home can be a very emotional experience. Many buyers may have trouble determining if a particular home will suit their family.
Be attentive to their comments and assist them with their decision. This can also help you identify other properties if you need to do another round of previewing homes. After all, that’s what you’re there for.
While it’s important to make sure that your buyer takes their time while previewing the home, sometimes they will tend to linger in one area of the house.
There is no need to rush them, but provide a gentle reminder to keep them moving from one room to another. You want to make sure they are leaving themselves enough time to see the rest of the house. Remember, you’re on a schedule and it is important to be, and stay, on time.
If you are seeing multiple homes in one day, it may be helpful to estimate how much time can be spent in each home. This way you can remind your buyers as well during each appointment.
Before you leave, make sure the property is left exactly how you found it when you arrived.
For example, a popular area for buyers is the kitchen. It is not uncommon for buyers to open and close items to check on their condition. Make sure all the cabinets and drawers are closed. If they opened the refrigerator, make sure that the door was closed properly.
Do a sweep of the entire house. Make sure if any items were picked up, that they were placed back in their original position. Check that if any windows, room doors, or fences were opened that they are now closed and secure.
After you’ve shown all the properties, take the time to sit with your clients. This is an opportunity to discuss the properties they have seen. Review the notes that your client took to understand what they liked and didn’t like.
You may find that your buyer has zeroed in on the perfect property and is ready to call it “home.” There is no need to hesitate if they are interested in making an offer. Always have a copy of the contract available with you to get the process started.
This is especially important if the property is in high demand and has other interested buyers.
Remind your clients that there is a lack of inventory in today’s real estate market. It’s in their best interest not to delay and move forward in submitting an offer.
If they weren’t interested in any of the properties that were shown to them on that day, there is no need to worry. Purchasing a home is a huge decision and it may be necessary to take your clients out to preview homes more than once.
Be proactive and schedule a new time to preview more homes.
Buying a home is not only a big investment financially, but emotionally. So, it’s no surprise that previewing homes has the potential to turn into a stressful ordeal. Not only for both your buyer, but for you. You can avoid this with a little preparation.
A lot of a buyer’s worry and emotion tend to come from not knowing what to expect or not being in control of the situation. Address those concerns by informing your buyer about the process and arming them with information.
By following these 9 tips for showing property, you can be a more efficient and effective real estate agent. Your buyer will feel they are incapable and reassuring hands. This will lead to happy buyers becoming happy homeowners.
Having a career in real estate can be rewarding and exciting. In real estate, your earning potential is limitless, and being your own boss will give you a lot of financial freedom. Being a real estate agent starts with getting your real estate license.
But before you jump in, let's talk about some steps you can take beforehand to ensure you will become a successful real estate agent.
Knowing what to expect and having a plan is paramount to your success. Being prepared will help lay down a solid foundation for your future career and create a nice transition. Let’s go over the top 7 things to do BEFORE you get a real estate license.
Start by building your database. Out of all things we will be discussing, this is the most crucial of the top 7. Why? Because your database is where all of your potential business will be coming from. A database is built from everyone you know, that you’ve met or haven’t met, or that you know of or knows of you.
If there is one thing you should do before you get your real estate license, it's this.
The easiest way to build your database is by starting with the people you know. Also called your “sphere of influence” or SOI. This means adding people to your databases like friends, family, people at your place of worship, and parents and teachers from the PTA meeting.
Think about adding everyone you meet and know from networking and social interest groups as well. For instance, people from the bowling league and the softball team. Think about everyone you have contact with, like your hairdresser or dry cleaners.
Don’t forget to share with everyone that you’ll be getting into the real estate field! Let them know that soon you will be there to help them with all of their real estate needs or questions. Plant that seed that you will be their top real estate resource.
You may be asking yourself where you should be putting all these contacts. Don’t overthink it. You don’t have to invest in anything fancy right away. Your database can be a simple spreadsheet or the “contacts” area within your email system.
Keep in mind that growing your database will be an ongoing process. But starting this process early makes the difference in how soon you get your first client when you get your real estate license. The more people in your database means increasing your odds of capturing more potential business in the future.
When you your real estate license, you have the option of doing residential sales or commercial real estate. Although each sector will allow you to work with buyers and sellers, there are a few differences between the two, such as training and day-to-day practice.
For instance, residential real estate is a good choice if you enjoy connecting with people on a personal level. When practicing in this sector, the focus is more on knowing the demographics of an area and being more hands-on with your client.
The focus of commercial real estate is primarily for investment. This sector is great for people who enjoy analyzing properties for their profitability and dealing with data, such as statistics. Transactions in commercial real estate are usually more complex and time-consuming than in residential but yield higher commissions due to price points.
There are other factors to consider, so do a little research before getting a real estate license to see if you would prefer one over the other.
Let’s be clear, “to brand” yourself is not coming up with a great logo. That’s marketing, which is important too, but let’s focus on developing your brand. Simply put, your brand is how people will instinctively feel about you and the service you’re providing.
The best way to develop your brand is to start thinking about how you want to be perceived in real estate. Fun and personable? Straightforward and no-nonsense? Do you want to be known as an “expert” in a specific area? As you know, there are many people in the real estate field, and developing your brand will help you stand out from the competition.
This will be important because, when you get licensed, you don’t want to be a secret agent. Have a social media presence, and remember to share with everyone that you are in real estate.
Being financially prepared before you start practicing real estate is vital. Why? Because you don’t know how long it will take to get your first deal. Typically it can take upwards of 3-6 months before you receive your first commission check. Create a reserve of your living expenses during this time so you can focus on your new career and not your bills.
Other fixed expenses that you can plan for will be the costs associated with being a real estate agent. These include joining a Board of Realtors (inclusive of C.A.R. and N.A.R. dues) and a Multiple Listing Service where you can search for properties.
Yearly, you can expect to pay an average of about $1000 for all these expenses, depending on which Board or MLS you join. When you start practicing real estate, these fees are usually paid immediately, so be proactive and have the funds ready.
Start thinking now on whether you want to work solo or on a team. Both have pros and cons, but one is not better than the other. You simply have to evaluate the benefits to decide which works best for you.
If you are self-motivated and confident, working solo is the way to go. It will allow you to make your own schedule, answer to yourself, and when you earn a commission, it won't be shared with team members. If the idea of handling all aspects of your business on your own gets you excited, then working solo is a good choice for you.
As exciting as it may be to be starting your new career in real estate, perhaps you feel that you’ll need some support. Being part of a team will give you stability and structure. You may not get as much of the commission when you close a deal but being on a team means you will get handed leads, have accountability, and have someone there to keep you on track.
Where you decide to hang your real estate license can really make a difference. Training, agent support, and in-house services like marketing and escrow will vary from brokerage to brokerage. More importantly, so will the energy. Remember that a brokerage is still made up of people, and you want to make sure that you are comfortable with the vibe of the office.
When you are interviewing offices, take that into consideration. A brokerage that has great positive energy not only will inspire you but will keep you motivated. You will want to be at the office, which means you’re more likely to take advantage of all the services.
So, remember this when it comes down to choosing a brokerage: if all things are equal, base your decision on the office vibe and the people want to surround yourself with.
We’ve all heard the great saying, “You can learn a lot from your mistakes.” But, in this case, we want to flip it. Like we discussed earlier, there are many real estate agents in the field.
Watch the ones that are doing it right!
Take note of what successful real estate agents are doing so you can implement the same strategies and tactics. Watch what they are doing on social media regarding content and posts. If you have received print marketing or emails from a real estate agent that really made an impression, use that and make it your own.
Researching the competition before you are licensed will help you get a leg up in your success as a real estate agent. Keeping up with it after you're licensed, will help with your continued success.
There you have it! Having a plan and being prepared is the best way to succeed in real estate. Doing these 7 things before you get a real estate license is a great way to prepare for an exciting career. So, remember to be proactive, have a positive mindset, and start laying down the foundation for your future career in real estate.
What else would you do BEFORE getting licensed that would get you more prepared? Share it with us!
If you’re looking for a fulfilling and exciting career, with every day different than the last, you might be thinking about becoming a real estate agent.
There are over 3 million people across the country with active real estate licenses, all working to help their clients buy or sell a property.
Before diving headfirst into the real estate industry, there are a few things you should know and consider.
Relationships are at the heart of the real estate business — and who you know can be the jump start to launching your career as a real estate agent.
From your hairdresser to your old elementary school teacher, everyone can be a potential client that opens the door for future transactions.
If you’re getting started in real estate, you should also create a database to manage and grow your network of contacts.
Your database, otherwise known as a client relationship management system (CRM), is where you can manage, organize and build a strategy around your current network.
It serves as a great starting point for outreach and often can serve as the “home base” for your business.
While there are multiple strategies in place around managing a database, the key is to simply start one.
As you add contacts and grow your business, you can do in-depth marketing campaigns, reach out regularly, and ensure you’re staying in touch with past clients.
A common saying in the industry is "you are unemployed until you you have a client." That means that you won't get paid until you find work. The work that gets you paid is representing clients in a transaction.
Just because you have a real estate license doesn't mean people will come to you. Every real estate agent must find their own clients. Either through door knocking, cold calling, or talking to their sphere.
Established real estate agents will often have clients find them. The reason why is because they have helped a good amount of people and those past clients referred their friends.
When you set a goal, it’s essential to create a plan on how you’ll achieve it. By crafting a real estate business plan early in your real estate career, you’ll have a guide to achieving your goals and navigating your career's early days.
Having a plan in place can help you grow your business, stay up to date on current market trends, and provide you with measurable metrics to track over time.
A real estate agent’s business plan is specific to your individual goals and should also outline your personal mission, strategies, and guiding principles.
This is an excellent place to identify your target client and how you’ll reach them through your marketing and communication.
The document can serve as a blueprint for your business growth and ensure you stay focused on your goals without getting distracted by lower-priority items.
If you’re used to working in large companies or big teams, you might be surprised when you become a real estate agent and learn you are suddenly your own boss.
The prospect of running your own business is why many get into real estate, but it can also be intimidating if you don’t know what to expect.
For those ready to take on the challenge, you’ll get to work your preferred hours, set your own goals and call the shots.
Keep in mind though this also means having to do the cumbersome aspects of running a business like taxes and other administrative work.
Real estate agents don’t make money hourly or annually like most professions. Instead, real estate agents make a commission off of their sales and transactions, usually anywhere from 2-3% of the sold home’s value.
Because of this structure, your paycheck as a real estate agent is determined by how many transactions you complete.
On the one hand, this means there is unlimited earning potential as a real estate agent. On the other hand, it means that your income can be unpredictable and vary over time.
Since your income is commission-based, experts recommend that new real estate agents set aside some money while starting their careers.
When you factor in the expenses needed to start and the nature of unpredictable income, it can be easy for new agents to run through their savings quickly.
One way to prevent this is to ensure you have a plan for bringing in a regular income — whether through another job or by building a small nest egg to get you started.
A lot of the transactions in real estate are done on weekends or after hours, leaving time during the day for a part-time job until your real estate commissions start to have an impact.
A big mistake that new real estate agents make when they start in the industry is not telling everyone that they are a realtor.
These “secret agents” don’t disclose that they sell real estate and, in doing so, miss out on opportunities to grow their network and their business. As previously mentioned, working in real estate is a relationship business.
Real estate agents have to be engaged, personable, and always on the search for the next deal.
Why is it so important to put yourself out there? Word-of-mouth marketing is key to helping grow your business.
When one person in your network refers you, you are cheaply getting new business and a thumbs up from a valuable client.
The real estate market is constantly evolving, and as a real estate agent, you’re expected to know all about it.
It’s essential to stay up to date on the industry by taking ongoing training courses and workshops after receiving your license.
Investing in your continued education will ensure you’re informed for your clients and able to speak to the latest industry requirements.
The best real estate agents never stop learning — they’re always working to improve their knowledge to better serve their clients in this ever-changing industry.
Imagine this. You're buying an expensive house for you and your family. This is the most money you have ever invested. You rely on your agent to help you through the unknowns and close the deal so you don't lose money on this.
When you call your agent, they don't respond. You follow up multiple times and eventually they get to it. This isn't the first time they haven't back to you in a reasonable amount of time. Now, you start to doubt if the agent is in it for you or the commission check. Is this a good idea?
This is the worry that most buyers and sellers have. A good real estate agent understands this and knows the client is a top priority. Clients pay a premium to have the agent help them, so they expect premium service. Agents can make flexible schedules but this doesn't mean they can't ignore their clients.
If the agent is at a baseball game or working another job, they have to be honest with themselves: are they putting the client first?
While much of real estate is a singular business, you are not alone. The real estate industry is vast in its reach, and the amount of resources available to agents is limitless.
Your closest resource throughout your career will be your broker or sales manager, that will sponsor your license.
This person can act as a mentor and guide you through the transaction from start to finish. Also along the way are coaches and other agents that you can work to learn from and build your business off.
Becoming a real estate agent is an incredibly rewarding career, but also requires hard work and determination to succeed.
It’s important to understand what you can expect early on in your career.
Having the proper knowledge and expectations before diving headfirst will help prepare you to be the best real estate agent you can be!
To become a real estate agent in California, you must obtain a real estate license.
In this article, I will tell you the 5-steps you must take to get your RE license. Also, I've included frequently asked questions that students have asked me. Let's jump in.
In California, you can get your license in 5 steps:
That’s it! Once you complete all 5 steps, you’re an active agent ready to launch your real estate career. Now, let's examine each step deeper so you understand exactly what to do next.
To get a California salesperson license, ensure you meet the following requirements:
The Department of Real Estate (DRE) created these requirements to maintain the real estate industry's integrity.
If you are not a U.S. citizen, you can still become a real estate agent in California. Once you meet these basic requirements, it's time to move onto step 2.
You must enroll in a DRE accredited school. This is to complete the required pre-licensing education.
For more than 10-years, CA Realty Training has been the trusted, accredited real estate school of choice for THOUSANDS of students. We make it easy to get your license and become an agent.
Every accredited RE school provides the same courses. Although, they teach them differently. The Department of Real Estate (DRE) approves these salesperson pre-licensing courses. All students must complete 3 courses:
The elective courses include:
When you complete a course, you will receive a certificate of completion. This certificate is proof that you have passed your course from an accredited institution.
Students must complete all 3-courses within 1-year of their enrollment date to be eligible for the state exam.
Once you collect all 3-course certificates, you can apply for the exam.
To apply for the California real estate exam, you must submit an application including:
You can apply for the exam online through the DRE's eLicensing portal. Create an account and submit the documentation from the list above – all online.
Below is a video on how to submit your application. I recommend that you watch it (or save it for when you get to this step in the future!)
Part of the application process is a live scan background check. This background check reviews your background for any criminal history.
If you have a criminal history, the best thing you can do is discuss it with the DRE. They will decide whether or not your history disqualifies you from becoming a real estate agent. If you have a felony, you risk facing a ban on becoming an agent.
This doesn't mean all felonies immediately disqualify you.
When your application is approved, you can schedule your exam testing date. You complete this through the eLearning portal.
The state exam is rigorous. It's 3 hours long and consists of 150 multiple choice questions. You must pass with a 70% or higher.
Studying for the exam can get overwhelming. Reviewing notes, watching YouTube videos, taking freebie practice exams will only get you so far. Not to mention, it's hard to organize your resources.
We've create an in-depth guide on the best way to study for the real estate exam. Use it to make studying easy and pass the first try!
If you fail, you can always retake the exam. But, retaking the exam can become expensive. I always recommend that people join our exam prep and crash course program.
This is the best way to make studying easy and effective. We've already helped thousands of students pass the exam in our program.
The final step to becoming a real estate agent in California is to sign with a brokerage. After passing the state exam, the DRE will email you a copy of your real estate license. Once you sign with a brokerage, you're an official real estate agent!
This is just like finding a job. You will have to apply, interview, and sign the paperwork. It might sound hard, but it's easier than it sounds. Agents are always in demand at larger brokerages.
Getting an interview with a real estate brokerage is simple. All you have to do is contact the front desk, let them know you're licensed, and you want to join a brokerage.
If you need help getting an interview, contact our student advisors. They'll put you in contact with our brokerage partners.
The following are the most common questions I receive about getting a real estate license in California.
A license comes with a lot of benefits. We all know that real estate agents make a lot of money. They also get workplace freedom. They can choose to work from anywhere in the world – from the brokerage office, sofa, even at the beach.
Finally, this is a people-focused business. Meeting new and interesting people every day is exciting. You get to help them accomplish their dreams. Growing your network is a must – this job incentivizes you to be social.
Nothing feels better than helping a family move into their dream home. You have the ability to leave a massive imprint on the lives of the people you help.
If this sounds like something you would enjoy, then check out one of our free intro sessions. The intro session will show you what it’s like to work as a real estate agent and gives you a sneak peek of how our program works.
A real estate license, also known as a salesperson license, is a state government certification that grants the holder the legal authority to represent clients in the home buying or selling process. This license is obtained by following the steps above.
Some people find it advantageous to get their license to buy or sell their home. Here's why: you don't have to hire a real estate agent, you can do the work yourself, and you get a small commission check.
You can use the commission check to go toward the home payment or home sale. You can use it to pay for home improvements, like updating the exterior paint.
You can become a referral agent. Referral agents recommend clients to another agent and collect a small portion of the commission. This means you can help a friend or family member when they want to buy or sell a home. But at that point, you might as well represent them yourself.
How much agents make depends on three factors: frequency of home sales, the value of the homes sold, and the commission rate. In reality, there is no limit to how much money real estate agents make.
The average home value in California is around $700,000, which means you could earn $14,700 after selling it (given average 3% commission split and 70% brokerage split.)
$14,700 is a lot of money in one check. At that value, you only need 7 deals in one year to make $100,000. That's great!
Keep in mind that real estate agents and brokers do not receive a salary or hourly wage. There area few brokerages that provide that, but make sure you read the fine print. You could cap your earning potential.
The fastest you can get your license is in 135 hours. In other words, about 8 weeks.
Compared to other careers, this is a low barrier of entry. Someone can go from knowing nothing about the industry to representing high-end clients in about 6-months.
That’s impressive!
After you complete your schooling and apply for the real estate exam, you must wait for the DRE to schedule your test date. This takes about 3-months. During this time, we recommend studying as much as possible.
A real estate license in California costs between $477 to $740. This list itemizes the fees and costs associated with your real estate license:
If you get your license, there are tons of schools you can pick. Each one has its own program price.
Of course, we recommend enrolling in our program. Self-plug: We offer competitive prices and provide the most trusted, comprehensive program in the entire state.
Getting your real estate license in California can feel overwhelming. The hardest part is passing the exam. But, with proper preparation, it's possible.
This requires you to understand common practices in the industry. With that said, the real estate licensing exam has around 53% passing rate.
You can many options in California. Of course, I'm biased when I say that you should pick our school. Many students agree we're the best option for pre-licensing education and exam prep.
CA Realty Training has more reviews than any other real estate school in California. We offer better education, resources, and support for our students. Simply put, we're the most trusted program in California.
Real estate license reciprocity allows agents to transfer their license from one state to another. This means a licensed agent in one state can work as a licensed agent in another state without obtaining a new license.
California is among the few states that do not have reciprocity with other states. If you are a licensed agent in another state, you must go through the California's licensing process and pass the state exam.
After you get your license, make sure you do the following: First, find a brokerage where you can hang your license. All agents must join a brokerage before they can practice real estate.
Next join your local boards and get access to the Multiple Listing Service (MLS). This gives you the credentials as Realtor® and access all the local listings in your area.
Find your support team. Join a team, go solo, and find a mentor. Your brokerage is a great place to find the needed support.
You just need to start scheduling coffee dates with your sphere of influence. This is a great way to get quality, face-to-face time with your leads.
Picking your preferred real estate brokerage comes down to personal taste more than anything. Ensure the "vibe" of the brokerage fits your personality and your ambitions.
Also, consider the commission split. Some brokerages will offer a lower commission split because you are a new agent. Understand it may be worth it for some brokerages but don't discount your services too much.
Consider one important thing: training and mentorship. Find a brokerage that offers training and mentorship programs that helps their agents succeed. As a new agent, learning as much as you can is paramount.
A long, successful career consists of two things: education and training.
In California, licenses must be renewed every four years. The renewal process includes:
If you don't renew a salesperson license by the deadline, it becomes inactive. If that happens, you will have to reapply for a new license.
California salespersons should regularly check the DRE's website for updated information on license renewal requirements.
In California, a felon may be able to obtain a real estate license. Depending on the severity of their criminal record, authorities may bar them from practicing real estate.
The (DRE) considers each application on a case-by-case basis. They may deny a license if the applicant's criminal history includes fraud, embezzlement, or theft.
If you think your criminal history may impact your eligibility, consult with the DRE before starting the licensing process.
The best way to look up a license number is to use the free tool on the DRE website. You can enter the person's first name, last name, or number. This is a great way to find out if an agent has their up-to-date certification.
Yes, your license can become suspended or revoked. This happens when you break the code of ethics. When someone suspends or revokes a license, that person can still reinstate it.
You may need to wait for the suspension period to end. You might also have to take some steps to request the revocation. You may have to undergo investigation and pay a fee.
No! There are tons of ways you can make money with an RE license. Many students get their license and become property managers, teachers, or referral agents. They may even do it to as professional development or as an interesting project.
A real estate license helps you enter different fields and new careers. You can use it whenever the opportunity calls for it.
A career in real estate is best for those who enjoy working on their own terms. Simply deciding to become a real estate agent is easy. But, you need gusto to create a successful career.
A real estate career requires hard work and self-investment. The results are life-changing. By following these steps, you can enter a life-changing career.
If you're not careful, you can become a statistic—an agent who quits real estate within the first year. The last thing you want is to earn a California real estate license just to leave the industry a few months into your career.
If you're unaware of the challenges that come with being new to real estate, it can happen to you.
The best way to prevent this is by understanding what to expect and learning some effective strategies to stay on track.
Here are 10 reasons why most new real estate agents fail in their first year and how you can avoid the same fate.
Lead generation is the lifeblood of your real estate business. If you're not diligently working to generate leads, you won't have any business. When you're new to real estate, you need to create opportunities from scratch.
How to Avoid It: Create a game plan. Decide who you'll contact—focus on niches like first-time homebuyers or renters, or network with investors. Determine how you'll generate leads, whether it's through cold calling, door knocking, or social media marketing. Consistent lead generation is key to building a thriving business.
Most new agents begin by growing their business through people they already know, known as the "sphere of influence." While this is a great starting point, it's important to reach beyond this group if you want your career to progress.
How to Avoid It: Step out of your comfort zone. Make a habit of talking to new people wherever you are. Expanding your network and growing your database will help you build a steady flow of clients.
Real estate offers freedom—no boss, no set schedule. However, this freedom can easily lead to poor productivity if you lack discipline.
How to Avoid It: Practice good self-management by creating and following a schedule. Incorporate activities like lead generation, network building, and database growth into your daily routine. Time blocking and effective time management can help you achieve more in less time.
Some people enter real estate thinking it's all glamour, inspired by TV shows featuring agents selling multi-million dollar homes. However, if your motivation is simply to "make a lot of money" without a strong work ethic, real estate may not be the right career for you.
How to Avoid It: Know your "why." Understand why you wanted to start a career in real estate. If you genuinely want to help people and are willing to put in the work, you'll be more likely to succeed.
Many new agents run out of money in their first year because they fail to manage their finances properly. Budgeting is critical to staying in the game.
How to Avoid It: Lead with revenue. Avoid spending money on unnecessary items like paid leads. Set aside funds from your first deals to cover living expenses for the months ahead. Financial planning will help you sustain yourself while you build your business.
One of the most common mistakes new agents make is not letting people know they're in real estate. Real estate is a numbers game—the more people who know what you do, the more opportunities you'll have.
How to Avoid It: Spread the word! Talk about your career with everyone you meet, use social media to promote yourself, and let your excitement show. Don’t be a "secret agent."
Goal setting gives you direction and helps you focus on the actions that lead you to success. Without clear goals, new agents often waste time and energy.
How to Avoid It: Set SMART goals—Specific, Measurable, Attainable, Relevant, and Time-bound. For example, instead of setting a vague goal like "make calls every day," set a SMART goal: "Make 25 cold calls a day to secure 1 appointment a week." This gives structure and clarity to your actions.
Fear of failure is common, but it can stop you from moving forward. Many new agents quit in their first year because the fear of rejection becomes overwhelming.
How to Avoid It: Understand that rejection is not personal. People aren't rejecting you—they're simply not ready to buy or sell at that moment. Separate yourself from the rejection, and keep pushing forward. True failure comes from inaction, not rejection.
Attitude is everything. A negative attitude can lead to giving up when challenges arise, while a positive attitude helps you stay motivated and engaged.
How to Avoid It: Embrace the entire process of becoming a successful real estate agent. Be "all in" when it comes to learning, training, and generating leads. A positive attitude will keep you focused and committed.
Self-doubt is another killer of real estate careers. When things get tough, new agents often start questioning their abilities.
How to Avoid It: Remember that tough times are part of the journey. Be confident in your training, skills, and knowledge—the very things that helped you get your real estate license in the first place. Combat self-doubt by focusing on the progress you make each day.
If you're not yet licensed, choosing the right real estate school can make all the difference. A strong foundation will help you launch your real estate career successfully.
How to Avoid It: Choose a real estate school that provides not only licensing courses but also ongoing support and training. For instance, CA Realty Training offers experienced trainers who share real-world examples and act as unofficial mentors, helping you apply concepts effectively. Resources like CA Realty Training's YouTube channel provide on-demand learning and valuable insights.
Avoiding these common pitfalls can prevent you from becoming a statistic and set you up for an amazing first year in real estate. Knowing what challenges to expect is part of the battle; having the right tools to overcome them is what will set you apart.
Once a home buyer and seller have agreed on an offer, the real estate transaction enters the escrow period.
During this period, there are a few contingencies to clear before the parties close the sale.
On closing day the parties meet to sign formal documents to legally transfer the property.
The escrow agent expects the buyer to finance two fees at escrow. One fee is the closing cost and the other fee is the down payment.
Closing costs and down payments are conflated in a real estate transaction. In reality, they are different costs in the mortgage lending process.
In other words, the down payment and the closing cost are not the same.
Prospective buyers are expected to have the funds for both when they close on a home. The buyer’s agent educates their client on what to expect in the home buying process.
Therefore, that includes what they can expect to pay for the closing cost and down payment on a home.
Let’s take a look at which fees are associated with closing costs and down payments.
The closing costs for a sale are typically due once the seller accepts the buyer’s offer.
The buyer goes to the lender to complete the process or close the loan. At this point, the seller is required to pay closing costs. The closing costs of a home are various fees associated with the loan.
The closing costs usually amount to 2 – 5% of the purchase price. Setting aside 3% of the purchase price is a good amount to finance closing costs.
So, what are the closing costs when buying a home? Closing costs are the fees a party accrues throughout the transaction and must be paid on closing. Buyers can expect many of the following fees:
Most lenders will charge an origination fee, which covers the cost to open a loan.
Other associated loan fees include the document review and processing fees to cover the cost of assembling the documents for the mortgage application.
Lenders also charge underwriting fees to pay the underwriter for evaluating the mortgage loan application.
While companies charge different amounts for these fees, homebuyers can expect to pay around 1% of the home’s purchase price in loan fees.
The transfer of title is an important legal aspect of purchasing real estate.
Many lenders will require a title examination, or search of public records for any documents, liens, or judgments, to ensure that there are no impediments to the title transfer process.
Also, lenders will require that borrowers purchase a title insurance policy to protect the lender’s investment.
It is wise for homebuyers to obtain their own title insurance policy as well. During closing, the parties are expected to pay fees to the agent coordinating the closing process.
Mortgage lenders also expect buyers to pay some bills a couple of months ahead of the first payment.
On average, buyers are expected to pay the entire annual homeowner’s insurance premium at closing.
The average annual cost of homeowner’s insurance is $1000. But, buyers will also pay the interest that accrues between the loan closing and the first monthly mortgage payment.
This is why many closing days are scheduled for the end of the month – to cut down on the prepaid interest due at closing.
Real estate sales are subject to local and state taxes.
Many municipalities charge a real estate transfer tax when a property is transferred from one owner to another. Therefore, this tax is usually a percentage of the purchase price.
Similarly, recording fees are charged by the county clerk’s office to record the sale in the public record. But, property taxes are collected at closing as well.
The party who pays the closings cost is typically the buyer. However, buyers can request the seller to finance the closing costs. By doing this, the seller will give the buyer an incentive to buy the house. This doesn't always happen, but it is possible.
Whoever pays the closing on a home is outlined in the initial purchase agreement so, when the time comes, it's clear who pays what.
Mortgage companies expect buyers to put their own money down toward the loan at closing.
The down payment is separate from closing costs, but this payment is also due on closing day.
The amount of the down payment depends on the type of loan that the buyer and lender decided to use. Many people believe that they must have 20% of the home price as a down payment for a home loan.
This is a good general rule of thumb. But, the average down payment for first-time homebuyers is 6% of the purchase price. Also, there are common down payment home loans that require smaller payments.
Finding a down payment home loan is typical when buying a home. But, there are few types of home loan options that are available for home buyers.
The Federal Housing Administration (FHA) began backing home loans for U.S. citizens in 1934 as a response to the Great Depression.
The goal was to increase access to homeownership and create construction jobs.
Today, FHA loans are a perfect option for buyers who have smaller down payments or average to below average credit scores.
The minimum down payment required for people with credit scores above 580 is 3.5% and 10% for those with lower credit scores.
VA (Veterans Affairs) loans are backed by the U.S. Department of Veterans Affairs. VA loans were designed to assist veterans to transition to civilian life after World War II.
The government guarantees loan repayment for part of the amount if the borrower cannot make mortgage payments.
With this insurance for lenders, VA loans allow borrowers to secure home loans with no money down.
Today, veterans, active duty service members, and qualifying surviving spouses are eligible for these loans.
USDA (U.S. Department of Agriculture) loans are another common loan option for homebuyers.
The aim of this loan program is to encourage rural development through home loans that support low and middle-income homebuyers in underdeveloped areas.
Down payments are not required with USDA home loans.
Many first-time homebuyers may not have a clear sense of what is involved in the mortgage loan process. As a buyer’s agent, you’ll excel if you understand the process and can expertly navigate your clients through it.
Remember that both the closing costs and the down payment are expected when the buyer is ready to close the loan.
The amount expected for the closing costs is approximately 3% and the percentage of the down payment depends on the type of loan the buyer chooses.
As an agent, when would you discuss closing costs and down payments with your buyers?
You want to become a real estate agent, but you don't like the financial risk involved.
When you go "all-in" on becoming a real estate agent, you put yourself at losing a lot of money. Whether it's investing in the start-up costs to get a license, investing in marketing material, or just paying rent, there's a ton of expenses in the industry and your paychecks could be few a far between.
Some people have all the luck. They have a nice little nest egg and are able to transition full time into being a real estate agent. Those people are able to sustain themselves for the coming months – no problem.
But you on the other hand, not so much. You might have a small saving (or none at all!) and you will might not be able to afford the financial risk involved. I get it!
Lucky for you, there's a solution that thousands of people rely on to become a real estate agent. This guarantees a steady flow of income while pursuing your career as an agent.
It's called: becoming a part time real estate agent. Yes, it's possible to do real estate part time! This article will show you how to become a part time real estate agent and give you insights on how you can earn like a full time agent.
But, first, let's talk about whether or not becoming a part time agent is right for you.
Becoming a part time real estate agent isn't right for everyone. There's a few things that all part time agents must commit to. Such as:
Often times, working 20-hours a week isn't the hard part for part time agents. The hard part is being available and prioritizing your client above all else. They are making their biggest investment and want someone who will make them #1.
How you would feel if you were buying a house and your agent kept telling you they can't make it the home tour because they're working their other job? Exactly.
That's why it's important to know that hours invested is easy. It's hours available that's hard. This is why most people end up becoming a referral agent.
A simple alternative to the active life of an agent, referral agents work on referrals only. They refer a client to another agent and collect a small percentage of the commission in return.
Referral agents can let the leads come to them.
If they have a friend, family member, or an acquaintance looking to buy or sell a home, the referral agent can recommend them to their business partner.
Their business partner will do all the heavy lifting and give you a small percentage of the paycheck. Easy!
There's also a secret perk that nobody ever tells you about referral agents.
Referral agents have less license fees and costs. What this means is that referral agents can let their license become "inactive" and still make commission from the referral. This makes becoming a referral agent much more cost effective than traditional agents.
You can work your full time job and, when a lead comes your way, it's an easy paycheck. Just make sure you partner with someone who you can trust.
To become a part time real estate agent, you have to fulfill the Department of Real Estate’s requirements.
This goes for people who want a side income, to get referral fees, or to collect commission from representing themselves.
In other words, you have to get a license and sign with a brokerage.
To become an agent or referral agent, you need a real estate license.
You become a legitimate, legal agent when you receive your license. This shows everyone that you have the training to represent them in a transaction.
So, if you work part time, want a new side hustle, or want to get a referral fee, you need a real estate license.
Here’s how you get your real estate license:
That’s it!
The Department of Real Estate mails your real estate license to your home address after you pass the exam.
That last thing you need to do is sign with a real estate brokerage.
The real estate brokerage is your workplace hub. This is where you get training, legal resources, and even your morning joe.
Brokerages give you resources because they invest in you.
So, telling them your intention is vital during the brokerage interview. This is where you tell them why you want to become a real estate agent.
Becoming a part time agent looks different for everyone. That’s why you should tell them that you want to be one of the following:
A good brokerage accepts you. So, if at first you don’t find one, don’t give up hope!
Now comes the hard part. How do you sell real estate part time?
Selling real estate in a part time worker’s hours is a challenge. You balance and track many moving pieces during your job. 20-hours will go by faster than you realize.
With a structure change and priority realignment, you can balance the job. Here’s how you can sell real estate part time:
When you work part time, you should aim to make the most of what you have. Let’s see how this is possible.
The bulk of your work lies in lead generation. This is the core of your job as a part time real estate agent.
Without generating new leads for your business, people won’t know about your service and you will have no new clients.
So, when you focus on lead generation, you spend more time creating business for yourself. Ultimately, that leads to more commission checks.
You should spend the majority of your hours finding new clients. When you start earning more clients, you should still find time to lead generate.
But, be aware of your other responsibilities.
That’s how we get into…
Time management is an art.
Knowing where to focus your time and for how long is a skill that even long term agents have a hard time mastering.
During your week, be realistic with your goals and how you manage your time.
The best way to manage your time is with calendars and to-do lists. This helps you identify what needs completing and when.
When you work with clients, you do paperwork, follow-up calls, commuting, home prepping and so much more. So, creating time for each task during the week is important.
For you, time is a limitation. 20-hours isn’t much to work with. That’s why you have to be intentional with your time investment.
For most real estate agents, focusing on quantity is a great strategy. That’s the case for part time agents too–especially for lead generating.
But, when you work, prioritize quality hours as opposed to quantity hours.
In other words, don’t dilly-dally.
How you spend your time is vital to your success. Focus on the quality leads, the quality clients, and the quality real estate.
Therein lies the key to your success.
When you have limited hours, you need to use it wisely.
As a part time real estate agent, you will need to figure out how to create a day-to-day schedule that lets you be flexible. The reason why is because you will want to work when your client is available.
As mentioned earlier, if you're working your first job or you're traveling when your client wants to tour a house, they will feel disrespected and second rate.
This is why you need to hone in on your schedule. Full time agents have flexibility to drop everything and help their client. Part time agents need to be able to do the same.
People who become a part time agent will do it for their family, friends, or for themselves. This way, they have more flexibility with their client and their own time. Don't forget to prioritize your client, it could cost you the sale!
Now, you might be wondering if working as a part time real estate agent is worth it.
If you’re going to work hard in a short period of time, is your time investment worth the compensation?
That’s a great question.
How much you make depends on how much you sell.
Real estate agents get paid a percentage of the amount of final sale price. Typically that percentage is 3%.
The brokerage splits this 3% with the agent 60/40.
So, to keep it simple, let’s say a part time real estate agent closed a deal on a $1,000,000 house. The brokerage will cut that agent a commission check for $18,000.
That’s pretty good money for a part time job. It’s even better if being a real estate agent is your side income job.
A real estate license is your opportunity to get a big check when the opportunity arises.
In other words, you can choose to be an agent when you want. If you want to represent when you have a friend or family member searching for a new home, you can.
You can work a full time job and only represent people in your immediate network.
Some part time agents only refer clients to other real estate agents.
They spend their time lead generating and passing the nitty gritty to someone else.
In return, they get a small percentage of the other agent’s commission check. That percentage is between 20-25%.
Let’s look at our previous example’s commission. If a referral agent recommended that agent to their client, the referral agent made $3,600-$4,500.
That’s pretty good for finding one client.
Some part time real estate agents want to only prospect. By doing so, they can still make a great commission check.
Becoming a part time real estate agent isn’t easy.
Being a real estate agent is like running your own business. So, when you work part time, you run a business part time.
Let’s look at how hard it is to make a part time job in real estate work.
As a part time real estate agent, your job consists of lead generating. That’s how you draw in business.
A prime method of generating new clients is through your sphere of influence.
This is where most part time agents start. They either know someone or know someone who knows someone who is buying or selling property.
When the connection happens, you are one warm meeting from your new client.
Some part time agents will only work within their sphere of influence. So, they could work a full time job while they keep their real estate license in their back pocket. Then, when they hear a friend or family member wants to buy or sell, they can lend a hand.
This passive method of lead generating works for you.
Cracking the code on working part time as a real estate agent is tricky. It requires flexibility and prioritizing your client. But, if you're able to figure out a schedule and routine that works for you, you'll be able to work less and earn more than most other agents.
Remember to focus your time on what works and what will lead you to the next paycheck. There's a lot of unimportant tasks that can make us feel productive, but contribute little to our overall business.
If all else fails, shorten the sphere of people you work with to friends, family, and yourself. At the end of the day, you can always fall back on becoming a referral agent.
A real estate agent is a licensed professional that organizes and assists parties involved in a real estate transaction. All real estate agents work for a brokerage firm or under a licensed real estate broker, and they work on commission.
A real estate agent plays one of two roles in a real estate transaction:
But, this simple explanation doesn’t do justice to all the daily work that a licensed real estate agent does. This article will offer greater insight into the role of licensed real estate agents in buying and selling properties.
Licensed real estate agents do a lot more than help people buy and sell properties and homes.
This next section will break down some of the most common roles and responsibilities of being a licensed real estate agent.
To be successful, a licensed real estate agent needs to generate leads. That means they need to find clients, whether buyers, sellers, or both. Some of the most common ways that a real estate agent will generate leads are networking, reaching out to friends and family, joining professional organizations, and advertising.
The role of a real estate agent is to act in their client’s best interest, regardless of whether they are buying or selling a property. The licensed real estate agent will serve as a liaison between both parties involved in the transaction and be available to the client by answering any questions throughout the process.
A real estate agent’s job typically entails dealing with many “third parties” involved in the real estate transaction. In simple terms, a third party is an individual or party involved in the transaction that is not the buyer or the seller (or their agent).
For example, the real estate agent’s job is to coordinate property appraisals, home inspections, and other similar services from third parties. Over time, real estate agents will build relationships with reputable third parties in the real estate industry, providing these services.
Of course, whether the agent is acting as a buyer’s agent or a seller’s agent, a critical function will be coordinating with the other agent involved in the transaction.
The purpose of staging a home is to prepare it for sale by making it as appealing as possible to the maximum number of prospective buyers. Staging typically involves rearranging furniture, redecorating, cleaning, and employing other strategies to present the property in the best light possible.
Staging is usually done in preparation for an open house, which is a scheduled time when the property is available to potential buyers for viewing. The ultimate goal of holding an open house is to find a buyer.
Preparing a listing takes a lot of research and is essentially the framework for “presenting” the property for sale. Listing preparation will include researching tax and property history, performing a market analysis, and preparing a marketing package. When it comes to preparing a property listing, the devil is in the details.
Whether acting as a buyer’s agent or a seller’s agent, the licensed real estate agent’s primary concern should be their client, which is why agents need to be prepared to answer any questions that their clients may have about the real estate process. If you don’t know the answer, it is your job to find it on their behalf.
As we mentioned earlier, agents can generate new leads through networking, reaching out to family and friends, joining professional groups, and advertising. Licensed real estate agents typically work for a brokerage and often, especially early in their career, generate many of their leads through the agency where they work.
In addition to generating new leads, networking, and building influence around one’s real estate career can mean the difference between success and failure. Networking and building your sphere of influence will also include connecting with others in the industry to provide clients with everything they need for a successful real estate transaction.
With so many hats to wear and roles to play, each day can be like embarking on a new adventure for most real estate agents. Here are just some of the tasks that a licensed real estate agent may perform on any given day:
When looking for new clients, real estate agents will need to branch out in many directions, that includes reaching out to family and friends, keeping in touch with those in your social circle, exchanging information with people they come in contact with, and partnering with related businesses.
The licensed real estate agent is the go-to person for buyers and sellers. In addition to answering industry-related questions for their clients, the real estate agent will set up lockboxes, coordinate open houses, and market listings.
If they’re acting as a buyer’s agent, they’ll be focused on helping their client find the home of their dreams, setting up appointments, pulling property records, and scheduling third-party services.
As we mentioned before, a real estate agent will be the point person coordinating with all of the different parties involved in real estate transactions. Some of these other parties may include:
Real estate agents have to fill out a lot of paperwork as part of their job. From disclosure forms to sales contracts and everything in between, real estate agents are essential in ensuring that all of the Ts are crossed, and the Is dotted before closing. Some critical paperwork associated with a real estate agent’s job includes:
Real estate agents can work from anywhere. However, they typically work out of their home or on-site at the brokerage firm for which they work. Like any job, there are pros and cons to working from home or at the office, and it depends on the real estate agent’s preferences to find the right fit for them.
To be successful in real estate, the licensed agent needs to possess certain specific knowledge, including a fundamental understating of:
There are four steps to becoming a real estate agent in California, and the process takes approximately six months to complete. The steps include:
When buying or selling a house, no requirement says you need to hire a real estate agent. Depending on your situation, if you are resourceful and savvy, you can undoubtedly buy or sell a home on your own.
However, it takes time, confidence, and know-how to handle the process, which is why most people hire a licensed real estate agent who understands the industry to represent them. In the end, it can pay off.
Commercial agents do everything that a residential real estate agent does, except with commercial properties. Examples of these include: apartment complexes, office buildings, warehouses, industrial factories.
They often work exclusively with real estate investors. Also, they work with a substantially higher range of money. This means that the stakes are higher and the clients are more serious.
Commercial agents make great money, but there is fewer inventory and clients.
While you can indeed become a real estate agent for the sole purpose of buying or selling your own home, it may be slightly counterproductive, especially if you have no intention of starting a career in real estate.
The time and money you expect to save by being your agent will be spent on the front end when you have to spend the time and pay the fees associated with becoming an agent.
Speaking with a potential client for the first time is a lot like that first phone interview. This is your one shot to make a good and lasting impression.
That's why some realtors want to know how they can talk like a real estate agent.
Sounds crazy, right?
Well, real estate agents do have a specific way they talk to their clients. That's because they have found out a way to effectively communicate with clients to make sure everyone is on the same page and happy with the progress.
And this is what we cover in this article. After reading this, you'll have a blueprint you need to speak with anyone as a real estate agent – and be effective at it too!
People like to think that they are talking to the real you, and not a persona you are putting on for show or sales. Make sure you keep your interactions real and personable, and don’t overpower people in the conversation.
It’s also very important to be grateful - people like to think they are helping you. Showing your gratitude, even taking a moment in a phone conversation to express it, can lead to more positive results when interacting with people.
Nobody likes to be “ambushed” with a call or a slew of emails if you haven’t cleared it with them first. Try to keep your first few interactions low-pressure and friendly, and ask if you can get in touch with someone more.
Also, at the end of each interaction, ask your lead when the next best time is to get in touch with them. If they are a forgetful person, they might want to be contacted later that week - if they are a slow decision-maker, they may need a few weeks or a month. Let them dictate the schedule.
Many people tend to “listen” without really hearing what the other person is actually saying. They might be focused on who else is in the room, what other things they have to do, and more. It is important to make sure you listen actively when a client is speaking to you, and occasionally paraphrase their words back to them to ensure you are both on the same page.
Everyone likes to feel that they are being heard, so taking this step can really benefit your client interactions. Also, this tactic avoids any confusion mid-conversation if you are repeating their words and understanding them on your own. Good communication skills is key!
Humans are not perfect creatures, yet salespeople often like to put up a veneer of perfection to show that everything is great. That’s a good tactic, but can sometimes come across as insincere. Make sure to communicate to your client that you are on their level, and that you are also an imperfect human that might not know everything.
For example, if you make a small mistake on the MLS listing when you first post the property, correct it, then take responsibility to it immediately and apologize. However, don’t berate yourself or allow your client to be mad at you - you are human and they should understand that you may make small mistakes sometimes.
If you know of an issue with a cracked slab or termite damage, definitely be honest to help out the buyers or sellers. Even though you may not want to be the bearer of bad news, honesty is always the best policy. Also, if sellers have a truly ugly home that would make it hard to sell, a little honesty can go a long way towards raising the selling price!
People will remember your honesty and help the next time they are doing a transaction, and trust capital goes a long way toward Earning Repeat Business. Always try to be honest during all your transactions for the best future results.
Ending every conversation on a positive note, no matter how short the interaction, is a great way for your sphere to associate you with positivity and happiness - an addictive combination (think emotional contagion)! When you end each conversation on a positive note, it also gives you a chance to talk to the person about following up with them.
Following up is crucial in the real estate industry, so never forget to follow each positive conversation with another one in an appropriate amount of time. Whether that’s an hour, a day, or even a year, make sure you follow up with a genuine, positive contact that reaffirms your upbeat attitude.
Being aware means staying up-to-date. There’s nothing wrong with doing a little online research on your client’s recent activities before picking up the phone - in fact, nowadays it’s almost expected! Check Facebook and other venues to see if someone’s children recently graduated, if they recently got a new car, or other large life events that you can use as a jumping-off point for your conversation.
This quality will also contribute in part to being genuine, as your interactions will be much more authentic when speaking about someone’s passions (their children, their hobbies, etc). As you gain more and more skill doing this, it won’t be long before you can redirect the conversation to real estate and push your value while still catching up with them!
One of the best ways to impress your clients is to be attentive to when your clients reach out. This is less about how you talk to clients but when you talk to clients.
When real estate agents respond quickly to their clients emails, messages, texts, phone calls, it leaves an unforgettable impression. That's because doing so shows that you care and you have everything under control.
At the end of the day, clients just want to feel like they are being taken care of.
Being direct and straight to the point does not leave any room for interpretation. In other words, there is less confusion on what is going on with the transaction or what you can provide for your clients.
Being direct with your clients shows that you know yourself and you have a plan.
You want to avoid beating around the bush or taking the long way to inform or explain something to your clients. If you do that, it could annoy or just flat out confuse people – not a good look for you.
So, always be direct, to the point, and most of all honest!
At the end of the day, you want to make sure that you're taking care of your clients. The best way to show them that you care and you have their best interest is by being clear, concise, direct, and honest with them. It also helps to give your clients up to date news and insights on what's happening the transaction.
When you do all of this, your clients will have a great experience with you. And, in turn, will result in repeated business. At the end of the day, that's how you build long term success in real estate.
Being a new real estate agent is both exciting and sometimes daunting. With so many agents in the market, you might doubt the value you can bring compared to someone with decades of experience.
But don't be intimidated—every successful agent started somewhere. Here’s how to sell yourself and stand out as a new agent.
As the saying goes, if you don't believe in yourself, why would anybody else? This is especially true in real estate. As a new agent, it's crucial to articulate why clients should choose you and the unique value you bring.
Take time to explore your unique selling proposition—what sets you apart from the competition—and practice how to communicate this with potential clients.
Consider what specific advantages you offer over others in your area.
For instance, maybe you have an intimate knowledge of your neighborhood, a strong passion for community involvement, or experience with social media marketing that older agents might lack. Use these to craft your message with confidence and authenticity.
Tip: Be confident that you are uniquely you, and that is why clients will be drawn to work with you.
Regardless of experience, clients expect real estate agents to be experts in the market they serve. Years of experience don't necessarily mean more market knowledge, but studying and understanding your area does.
A new agent dedicates time to researching their community—learning which neighborhoods have the best schools, current market trends, how home features impact value, and average time on the market for different property types.
They are then able to provide informed, confident guidance to clients, making them stand out despite their limited experience.
Tip: Study the market thoroughly. Know details like how fast homes are selling, key school districts, and what features affect home values. This knowledge will boost your credibility.
Most real estate agents come from other industries, which means they bring valuable transferable skills that can help them excel. Skills like customer service, project management, or sales are incredibly useful in real estate.
If you previously worked in hospitality, use those customer service skills to create a seamless experience for clients. If you worked in sales, highlight your negotiation skills.
One agent, for example, previously managed a retail store, and now uses their experience with inventory and managing expectations to effectively manage client needs and timelines.
Tip: Think about how your previous experience benefits your clients. Skills like listening, managing expectations, and customer service are all valuable in real estate.
Even if you’re new, the training, certificates, and designations you’ve earned can help establish credibility. Certifications can show potential clients that you have specialized knowledge in specific areas, such as working with veterans or first-time homebuyers.
A new agent earns a certification in working with first-time homebuyers and proudly displays this in their marketing materials.
When speaking with new clients, they emphasize their expertise in helping first-time buyers navigate the process smoothly, leading to increased trust and more clients choosing to work with them.
Tip: Lean into your education. Certificates and specialized training can be particularly compelling to clients looking for specific expertise.
In sales, being genuine and unique is often more important than experience. Clients can tell when an agent is being authentic versus using a sales pitch. Your personal story can be your greatest selling tool.
Create an elevator pitch that explains who you are, what you do, and how you can help.
For example, "I'm Alex, a new real estate agent with a passion for helping young families find their dream home. My background in marketing helps me get homes sold quickly, and I pride myself on clear, honest communication."
Tip: Work with mentors to refine your story. Persuasive storytelling is powerful in real estate and will help clients remember you.
You’re not in this alone! Behind you is a team of mentors, resources, and vendors that help guide you and your clients through real estate transactions. Choosing the right brokerage is essential, as you want a team that aligns with your goals and supports your growth.
A new agent is proud to be part of a well-respected brokerage and introduces clients to experienced mortgage brokers, home stagers, and inspectors from their network. This helps clients see the agent as a well-connected resource.
Tip: Highlight your network to clients. Let them know they are getting not just you but an entire team of professionals working on their behalf.
One of the biggest advantages of being new is that you’re adaptable and open to new strategies and technologies. Established agents can sometimes be resistant to change, while newer agents have the freedom to innovate.
A new agent uses digital marketing strategies, such as social media ads and virtual tours, to appeal to tech-savvy clients.
Meanwhile, established agents in the area rely on older, less efficient methods. As a result, the new agent attracts more first-time homebuyers and young clients looking for an agent who is up-to-date.
Tip: Take advantage of new technology and innovative marketing techniques. Not being tied to the old ways can be your greatest strength.
With the right mindset and practice, you can compete with the most seasoned real estate agents in your market. Focus on what makes you unique, build strong client relationships, and adapt to industry changes.
Ultimately, being a successful agent isn’t about years of experience—it's about guiding your clients through an exciting life change with confidence and expertise.
Is it worth becoming a real estate agent in 2024? If you follow the real estate industry, you might know about the factors that make it unstable.
This is concerning for people in the industry and who want to join it. But, these concerns could be sensationalized hype used to by clickbait headlines.
In this article, I explore the current state of the industry and whether or not it's a good time to be an agent. Let's get into it!
In 2024, we see a transitionary market. There are buyer's markets, seller's markets, and balanced markets. The prior two are referred to "unbalanced markets." When the market is balanced, we see roughly equal demand to buy and sell real estate. You might have already guessed that seller's markets mean more leverage for sellers (fewer supply of homes.) Buyer's markets are the opposite: more leverage for buyers (more inventory of homes.)
Today, we are transitioning into slower market. For the past few years, we saw ourselves in a seller's market because there was more demand for homes. This was because of lower interest rates. In the last year or so, interest rates have increased, which has made owning a home less desirable. Thus, a transition into a buyer's market because there is less demand to buy.
But, home prices are still high. As we see the inventory increase, the price of homes could come down. But, right now, we're seeing high prices and low demand.
Keep in mind, this not the case everywhere. Every state, every city, and every town has their own local economy that dictates demand. This is just broad overall observation. Take it as you will.
Let's now explore how this current state of the real estate market affects real estate agents.
A real estate agent's job never changes. An agent's job is to represent buyers and sellers through the transaction process. No matter what, there is demand to either buy or sell property.
As I mentioned in the previous section, there are times when sellers sell homes and times when buyers buy home. Then there's times when they want to do both! Those are good times.
No matter what the state of the market is, there are people who need real estate agents. A good agent will know this and adapt their business to the market. Instead of representing sellers, you represent buyers, vice versa.
I've been doing real estate since the 90's. Whenever there is a shift in the market, people always do the same thing: freakout and dropout! Don't let a changing tide get to you, just ride the wave. That is the job of the agent.
That's why now is always the best time to become a real estate agent. Not yesterday, not in another year. Now! The industry will always change. That's part of the job.
Recently, the National Association of Realtors® (NAR) resolved in court that their practices around commission sharing and competition in the real estate market was unfair.
This legal case resulted in a modification to the practice of how agents earn their commission checks. Now, buyers are required to disclose how they are compensated and sellers are no longer obligated to provide commission to the buyer.
How does this affect real estate agents?
In reality, very little has changed. The buyer is now informed on how their agent is compensated and can make a decision based on this information. The major argument against modification is buyers will have to finance their agent and therefore will stop them from buying a home.
However, this case doesn't prohibit buyer's agents from accepting a portion of the listing agent's commission. It stipulates that the buyer's agent must inform the buyer of this. The buyer is free to make their own decision based on this information.
People may be misinformed and not understand the full effect. As we mentioned earlier, there will always be demand to buy or sell real estate. There will always be this demand no matter how agents are compensated.
The reaction for some is to freakout and dropout. For others, it's to stay in the industry and run a successful business helping clients. As the months go on, we may see less real estate agents in the industry because they left it or they chose not to become an agent.
This is great news for those who stay in it, because they get more market share.
So, is now a good time to be a real estate agent? There is a lot of uncertainty as the industry involves. It's hard to predict where it will land but I can assure you that it's just part of the job.
It is always a good time to get into real estate. People will always buy and sell real estate. The change to the market and the change to commissions just means our business follows a new system, and that is just part of the job of the agent.
There are so many real estate jobs, you might not even know some of them even exist. Below you’ll find descriptions for the real estate jobs you can expect to see in the industry.
For example, if you’ve ever wondered what do real estate agents do for a living, you’ll have a full grasp of the job description. Alternatively, you’ll learn the details of specific career descriptions, such as a real estate broker description.
Deciding what career in real estate to choose is daunting. The sheer amount of options is overwhelming to everyone.
To choose the right career path in real estate, you’ll have to do your research. This list of the types of real estate jobs will make choosing a career path easier:
Getting your real estate license will open the door to more than one job. Some job titles require a license in order to qualify to fulfill the role. In this section, we'll explore what real estate jobs require a license.
The residential real estate salesperson facilitates the home buying process between sellers and buyers. Having a mediator is a valuable part of the transaction, because, without one, the transaction will have a higher chance of dissolving.
The success of a residential real estate salesperson is dependent on how well they meet their client's needs. Along with this, agents conduct their own methods of finding clients. This is why having great customer service skills are essential to the agent’s success.
Since the agent’s income is commission-based, they will earn more when they find more leads. That’s why growing your network as a salesperson and putting your client first are the most important parts of the job.
The commercial real estate salesperson is similar to the residential real estate salesperson, but they are focused on the commercial sector of the industry.
Instead of houses, townhomes, and condos, a commercial real estate agent will sell the property to businesses.
Working in the commercial sector means you’ll need to have analytical knowledge in business and finance. This is because you will be working with gross rent multipliers, capitalization rates, and internal rates of return.
Regarding their salary, a commercial real estate agent has commission-based earnings.
However, according to the National Association of Realtors® (NAR), an agent working in the commercial sector earned twice as much as an agent working in residential during 2017.
A real estate broker and agent are very similar in their job. The only difference is who they work for. Real estate agents sign with a brokerage. Therefore, agents work for the head broker, also known as the broker of record.
Brokers, on the other hand, have the option to work independently or start their own brokerage. So, if you have an entrepreneurial drive, consider a career as a broker.
For those interested in becoming a broker, you will need a real estate broker license. According to the Labor of Statistics, the average real estate broker salary in 2017 was $57,730.
The goal of the property manager is to ensure the financial and physical well-being of the property. They also have to ensure the tenants of the property are satisfied.
Similar to the real estate broker, property managers must also own a broker license. Along with this, they should have great customer service skills, managerial skills, and have the ability to problem-solve while on the go.
The manager works with the property owner to ensure everything is functioning smoothly.
For some people, managing a property is daunting. However, others will jump at the opportunity to ensure the security of the property, work with tenants, and collaborate with an owner.
If you’re interested in a property management position, you’ll need a fair understanding of finances, marketing, facility operations, and documenting important information. When you’re not managing the property, you’ll be managing your own time.
A leasing agent is responsible for finding the perfect tenant to lease a property. They work directly with the property owner. They also have the choice in choosing the sector of real estate they want to work in.
When working on the commercial side, they work with businesses as opposed to individual tenants.
For those who want to work in the field with clients and potential tenants, becoming a leasing agent is a perfect career choice. Because of this, you’ll need great interpersonal communication skills.
There’s plenty of face-to-face time with the client and tenant, so you’ll need to know how to navigate negotiations and conversations.
Real estate listings play an important part in the leasing agent’s career. These listings help drive leads and promote the property.
This is why having a fair understanding of marketing and promotion will help excel you in a career as a leasing agent.
The real estate transaction coordinator is responsible for assisting the real estate agent and broker through filing a transaction.
In which case, the coordinator will have to oversee and track the valuable documents. Purchase agreements, titles, escrows, and broker documents are a few of the assets the coordinators will manage.
Having great organization, scheduling skills, and attention to detail is a necessity for this job.
Transaction coordinators will also keep track of client information, and help grow relationships between the client and brokerages. This can be done by scheduling 30, 90, and 120-day customer service follow-ups.
You don’t need a real estate license to be an assistant. However, having one will help you perform in your job. That’s because real estate assistants are the administrative support to agents and brokers.
Most of the time, an assistant will be filing documents, answering phone calls, and posting property listings. On paper, the job doesn’t sound the most glamorous. However, they’re an important part to any real estate operation.
Having an understanding of how real estate works will help you perform your responsibilities quickly and efficiently.
Agents and brokers both agree that assistants are irreplaceable. They’re a necessity if an agent or broker wants to grow their business. By tackling administrative projects, agents and brokers can focus on finding clients, marketing their services, and other aspects of their business.
Showing assistants work almost entirely in the home showing process. They are responsible for presenting the house to the home buyer and providing them with information about the property.
They’re the perfect resource for home buyers.
However, without a real estate license, they are limited in how they can interact with the client. For example, a showing assistant cannot discuss pricing or conduct a sale. They would need a salesperson license in order to do so.
The showing assistant doesn’t just work with prospective home buyers.
They work hand in hand with the lead agent to update them on the status of listings and client development. They also help promote the larger team or brokerage.
A large portion of this job includes scheduling showing dates and times with the buyer. Therefore, you should have the ability to consistently keep people up to date.
You’ll be working as the middle man between the agent and the buyer, so having great communication skills and knowledge in real estate is recommended.
Real estate financial analysts and consultants research current market trends and statistics to predict the future of the industry. Analysts and consultants will not commonly work in the commercial sector. These predictions help decide investments, sales, and lendings.
The financial analyst and consultant work behind the scenes.
They’re most comfortable in an office environment, where they can conduct research. When they work with others, they are providing valuable information regarding important investment decisions.
They’re an asset to any real estate company that needs financial recommendations. This is especially true with investors.
A real estate investor or entrepreneur is someone who invests in land and property. They try to maximize profits by buying then selling land. However, there’s more to the position than just transactions.
Understanding where and when to purchase land is important. Over time, land appreciates, but its appreciation rate depends on several factors.
One of them is whether they purchased a dud piece of land. That’s why investors and entrepreneurs are dealing with high financial risk in their jobs. A person who is interested in becoming a real estate investor or entrepreneur can make serious money.
However, they have to be comfortable with the risk involved with the career.
They may also want to force equity by improving the land they purchased. But, doing so will cost more money.
This requires them to have extensive knowledge of real estate.
Buying land that people will want to use is the best way to earn a living as an investor or entrepreneur. However, if you blindly purchase land, you run the risk of losing out on cash.
Becoming a real estate investor or entrepreneur has a high barrier of access. Not just anyone can walk into this position. Someone who wants to purchase and own land will need the property funding to do so. In this market, that can be a lot of money.
It helps to have the funds before trying to make a career out of it.
Real estate marketing specialists are the professionals who execute marketing duties. Their goal is to get a brand seen by the public. Without them, agents and brokerages will experience a dramatically less amount clientele.
The marketing specialist will often manage social media, create digital content, develop printed materials, write campaign emails, and manage the overall brand.
In other words, they touch up the presence of the agent or broker’s business. The reason why this is necessary to so many agencies and brokerages is that, without marketing specialists, the business will have a hard time generating leads and clients.
This includes marketing the property to prospective clients.
The marketing specialist works behind the scenes. They don’t usually have the opportunity to interact with buyers or sellers. They will also need to have detailed knowledge of the industry they work in. Without that, the marketing specialists will have a hard time marketing to their target audience.
This is why having a real estate license will help a real estate marketing specialist.
Real estate developers create the buildings on any given property. This includes everything from office buildings to a 4-bedroom house for a family. Their mission is to coordinate the construction of these buildings on raw land.
The real estate developer also works with existing constructions on properties. They can re-lease buildings and the sale of already developed land.
They’re heavily involved with everything development-related.
This means that real estate developers also have the opportunity to work with architects, engineers, and construction teams. They also work alongside the contractors, leasing agents, and lawyers surrounding the legal aspects of the property.
Overall, the real estate developer is always involved in the planning and building process.
Having skills in multitasking, interpersonal communications, and project management is a necessity to excel in this career.
The value of a commercial or residential real estate property is determined by the appraiser. They are most often used before the property is sold, taxed, or developed.
An appraiser will decide the value of a property based on its characteristics and where it’s located.
They’re also able to determine the value by comparing it to other, similar, properties.
You’re not required to have a real estate salesperson license, but you are expected to own an appraiser's license. This is done by completing 75 hours of basic appraiser education and passing an exam by the state.
You will also work in finance and economics, so having an educational background in these areas is helpful.
According to the national average, a real estate appraiser's salary in 2018 was $52,512.
They also have the option to work independently or with a larger business. No matter where they work, they will be collaborating with agents, buyers, and sellers.
Escrow officers serve the closing transaction in real estate by acting as the third, neutral party. A real estate escrow officer is familiar with the overwhelming headaches of closing a real estate transaction - and how to manage it. These professionals work closely with agents, lenders, and other service professionals.
The experience needed to become a real estate escrow officer is rigid.
You must become a licensed professional, have training in escrow, and have served as an apprentice in the field. To get your license, you will also need to enroll in a specific school.
You will need to be familiar with handling money on a large scale. Having good attention to detail will help you keep track of fees, commissions, and payoffs. It also doesn’t hurt if you are familiar with the law surrounding escrows and funds management.
A real estate inspector examines a property for any defects or issues that will cause problems for the purchaser, seller, and agent. Inspections are a critical part of the transaction.
This is because inspectors help point out faults and blemishes that might go unseen.
In the state of California, you do not need to be licensed to become a real estate inspector. However, the requirements to be an inspector changes depending on your state. Therefore, you need to always check the requirements.
Despite not needing a license in California, you should still have the proper training in real estate to meet your client’s expectations.
Real estate inspectors need to know every aspect of a house. This means they have to be familiar with roofing, wall structure, plumbing, and electricity - just to name a few. That’s why most home inspectors seek out trusted training before they jump into the career.
The real estate or loan officer helps clients with obtaining a loan to purchase a home. They strictly collaborate with the buyer to finance their dream home while working with their budget.
Real estate loan officers must be registered with the Nationwide Mortgage Licensing System.
In order to become registered, you must meet the qualifications. In addition to becoming registered, you must also have knowledge of finance.
As a loan officer, you will need to help the client navigate the financial waters of their real estate purchase. You’re their guide through the stress that follows money problems. Along with having knowledge in real estate, loans, and finance you’ll need to have excellent customer service.
Real estate title officers conduct searches on the title of a property. They look for problems associated with the house or land, that would deter a buyer’s purchase. After doing a background check on the title, they report their findings to the property buyer.
They also provide information and resources on title insurance to protect the buyer.
To become a real estate title officer, you would have to earn a title agent license or a notary license. The requirements of becoming licensed depend on your state, but you should always expect a state exam.
Title officers are detailed oriented. Having attention to detail in writing, research, and communication is expected if you want to be a successful title officer.
You will also have to be familiar with insurance and closing practices.
Real estate attorneys are professionals who apply their skills to the legalities behind property disputes. When there’s speculation or issues with the title, documentation, transfers, or other legal problems, the attorney’s job is to step in and settle the tension.
Attorneys are the most helpful when they’re providing their client's guidance during the transaction process.
They want to ensure the sale of the home is legal. Then, if any legal issues pop up, the attorney is there to help serve the best interest of their client.
To become a real estate attorney, you will have to undergo the extensive educational experience. You need to have graduated with a bachelor's degrees, pass the LSAT, earn a Juris Doctor degree, and then pass the bar exam. In total, this process could take upwards of 6-8 years to complete. This is before you spend another 2 years accumulating experience as a lawyer.
A real estate paralegal is similar to a real estate attorney. You can expect to find the paralegal working closely with the attorney and the real estate agent in the transaction process. They're responsible for preparing the proper documentation and drafting agreements, letters, and insurance.
The real estate paralegal must have an understanding of taxes, title insurance, and the transaction process.
This is because the majority of their work will center around the closing deal. Paralegals are a cost-effective alternative to hiring an attorney.
To become a real estate paralegal, you will have to go through a certified paralegal training program. People interested in becoming a paralegal will have to take paralegal studies at an accredited school, college, or university.
Overall, having a wholesome understanding of law, finances, and real estate is necessary to become a successful real estate paralegal.
From time to time, Real Estate Agents may meet a cash buyer that is interested in purchasing real estate property, but the majority of the time, buyers take out home loans to purchase their homes. Since home loans are very common, home buyers typically look to their real estate agent for a lender recommendation. Therefore, the lender-agent relationship is extremely crucial for all parties involved to succeed with the home purchase at hand.
To put it simply, a real estate agent representing a buyer will have a successful transaction and earn their commission if their client is ready, willing, and able to purchase a home, whether it be an all-cash purchase or a home loan. Typically, most clients need the assistance of a home loan. This is where the Lender (or loan officer) provides the financial help! A Lender’s job is to get their homebuyers approved for a mortgage loan, thus purchasing their home becomes a reality. The lender is compensated for their services by charging the buyer points, or fees. This three way relationship helps the process of home buying run smooth and efficiently.
Communication is key. Always keep the client in the loop of your conversation with the lender.
Real estate agents can refer their homebuyers to the lender, and vice versa. In this way, by both parties promoting each other, they help each other with leads and thus help each other build their careers. Teamwork!
Quick pro tip and warning- be careful not to use any transactional benefits (kickbacks), between real estate agents and mortgage lenders since The Real Estate Settlement Act (RESPA) does not allow this. It is against RESPA regulations for any lender to provide real estate agents with any kickback, as the lender should be selected purely for their abilities, not for the gifts provided to real estate agents. The focus should strictly be on the borrower, and provide them with quality, lending service.
To avoid wasting the buyer’s time and the agent’s time, it is best to have the buyers prepared for home financing. A pre-approval letter from the lender will ensure you that the buyer can afford to purchase a property with a maximum loan amount, thus providing you with a price range when house hunting. A pre-approval letter also demonstrates that the buyers are serious about purchasing a home. In general, finding the right lender is important! One that remains in constant communication with the real estate agent and informs them about the status of the loan throughout the process. This will make the purchasing experience pleasant.
There are several lenders available to real estate agents in the real estate world. But how can an agent locate an effective and efficient lender? One of the best ways to find a great lender is to communicate with your colleagues within your brokerage and ask for a recommendation. Word-of-mouth is extremely helpful.
Mortgage brokers are the middlemen between banks/mortgage lenders and borrowers. This is a good option for borrowers who have trouble qualifying for loans or if they are simply searching for the best possible interest rate. Mortgage brokers communicate with numerous banks and lenders on a daily basis to help get their clients a mortgage loan.
Your buyers have no obligation to use your preferred lender. Many buyers have existing relationships with certain lenders through past transactions and prefer to utilize their services. However, a first time buyer typically does not have a previous relationship with a mortgage lender and depends on the real estate agent for a recommendation. Either way, once a lender is chosen and a pre-approval letter is presented to the buyer, the real estate agent can begin their search for a home for their client.
As an intending home buyer, the first thing you need to know is that financing is the most vital aspect of acquiring a property. It might interest you to know that in the US, about 42% of homes are financed by mortgages. This figure serves as a source of hope to many buyers who do not have the financial means to purchase a property.
If you are looking to get a home soon, this article will help you understand the most common types of home loans and give you some insight into which might be best suited for your needs.
A mortgage loan is a sum of money that a homebuyer will borrow from a lender (such as a bank or credit union) to finance the money needed to buy a house.
The mortgage market is divided into two basic categories: the primary and the secondary mortgage market. The primary mortgage market allows homebuyers to borrow mortgage loans directly from primary lenders such as banks, mortgage brokers, mortgage bankers, and credit unions.
The secondary mortgage market, on the other hand, is a large market with several participants where mortgage loans and servicing rights are bought and sold by various entities. Some of the participants involved include investors, mortgage originators, mortgage aggregators, and securities brokers.
One factor that markedly influences your chances of obtaining a mortgage loan is your credit score.
Many lenders use credit scores to measure the risk involved in lending people money. Typically, a high credit score implies low risk, while a low credit score implies high risk.
This implies that the higher your credit score is, the more likely you are to get easy approvals, lower down payments, and favorable interest rates, and vice versa.
Credit scores below 580 are generally considered to be low, while credit scores of 700 and above are considered high.
Take, for example, a buyer with a high credit score of 760 who gets a 30-year, fixed-rate mortgage for $200,000. With this credit score, he or she might get a low interest rate of 3.612%.
At this rate, the monthly payment would be $910.64, and the buyer ends up paying $127,830 in interest over 30 years.
However, with a lower credit score of 635, the interest rate will likely be high at perhaps 5.201%, which might seem negligible until the numbers are added up.
The buyer’s monthly payment is $1,098.35, which is an extra $187.71 monthly and the total interest for the loan is $195,406, of which an additional $67,576 has been added.
The conventional home loan is the most common mortgage type available to buyers. This type of home loan is not financed by any government agency but is made available through private lenders such as banks and mortgage companies.
It is important to note that the conventional mortgage has strict rules that guide its lending system hence, not everyone qualifies to obtain it. To be a well-qualified buyer, one must have a solid financial foundation evidenced by:
Once an investor has met the listed criteria, he or she is required to fill out an official mortgage application, pay the necessary fees and then supply the lender with the necessary documents to conduct a thorough check on their background, credit history, and current credit score.
Here are the great benefits of a conventional home loan for home buyers:
An FHA home loan is a government-backed home loan insured by the Federal Housing Administration and issued by an approved lender such as a bank.
This type of mortgage is popular amongst first-time buyers and low-to-moderate-income earners because it is specially developed to help applicants with low financial standing.
FHA loans require a lower minimum down payment than several conventional loans and applicants may have lower credit scores than are typically required.
However, borrowers are required to pay FHA mortgage insurance, which is put in place to protect the lender from a loss in case the borrower defaults. This insurance premium is approximately 1.75% of the total loan amount.
To qualify for an FHA home loan, home buyers must meet the lending requirements guiding an FHA mortgage. These requirements include:
Here are the great benefits of an FHA home loan for home buyers:
A VA loan is a mortgage option available through a program established by the U.S. Department of Veterans Affairs (VA). It enables veterans, service members, and their surviving spouses to purchase homes with little to no down payment, no private mortgage insurance, and get competitive interest rates.
While the U.S Department of Veterans Affairs sets the qualifying standards, decides the terms of the mortgages offered and backs the loan, they do not offer the financing. Instead, approved private lenders, such as banks and mortgage companies, provide the loans.
To qualify for a VA home loan, here are the criteria that must be met by home buyers:
Here are the great benefits of a VA home loan for home buyers:
According to most lenders, a FICO credit score of 580 or less is considered poor or bad credit and the buyer has a minimal chance of getting a mortgage. However, this does not automatically mean you can not qualify for mortgage loans as there are several loan options and mortgage lenders who cater to buyers with poor credit scores.
Some of these options include:
A secured personal loan is a loan that is backed by collateral. This means that the borrower must pledge an asset or collateral to obtain the loan. There are several kinds of secured loans for bad credit, including mortgages, auto loans, and home equity loans.
An unsecured personal loan is a loan that does not require the borrower to pledge any asset or collateral to obtain a loan. This is the most common type of loan option available for bad credit. Lenders who offer unsecured personal loans include banks, credit unions, and some online lenders. The repayment terms of unsecured loans typically range from two to seven years.
While funding is an essential part of acquiring a home, it is also an aspect that confuses a lot of buyers. As an intending buyer, you should carry out thorough research on each home loan option available to you before making a choice. It might also help to consult with a professional, such as a real estate agent.
In this insightful interview, Richard Shulman, a highly successful real estate agent who was once ranked the #2 agent in the U.S., shares valuable advice for new agents on how to succeed in the real estate industry.
Shulman emphasizes the importance of prospecting, mindset, mentorship, and continuous training to build a sustainable and thriving career.
He also discusses the new course he developed in collaboration with U.S. Realty Training to provide agents with a practical roadmap to success.
A recurring theme throughout the interview is the need for relentless prospecting, especially in the first few years of a real estate career.
Shulman explains that agents must make consistent outbound calls to build a solid pipeline, even if results don’t come immediately.
He shares an example of advising a new agent to make 5,000 calls over two months, underscoring that this daily effort, though difficult, is essential for long-term success.
Shulman warns that without this commitment, many agents quit prematurely.
Shulman also highlights how effective prospecting requires learning and iteration.
It’s not just about volume but quality—agents need to refine their scripts, practice objection handling, and experiment with different techniques to find what works best for them.
Mindset plays a critical role in real estate success. Shulman stresses that flexibility in the job can sometimes lead to complacency.
He advises agents to treat real estate as a full-time profession, setting clear goals and routines, such as making 50 to 100 calls daily and scheduling at least two appointments.
Drawing from his own experience, he shares how shifting to a structured 40-hour workweek was a pivotal moment in his early career.
Shulman notes that many new agents struggle with mental challenges, such as self-doubt, especially when the first deal takes time.
It took him nine months to close his first transaction, and he emphasizes that perseverance is essential during this initial phase.
He encourages agents to stay motivated and develop a passion for the process, rather than focusing solely on the financial rewards.
Shulman recommends that new agents consider joining a team or working under a mentor, particularly for guidance through their first few transactions.
Teams provide valuable support, ensuring agents don’t make critical mistakes that could harm their clients or reputations.
He emphasizes that while brokerages offer limited hands-on training, teams are better equipped to help agents develop practical skills.
He acknowledges that success is possible without a team but requires exceptional discipline and self-motivation.
We've partnered with Richard to create From Rookie to Rockstar. This is a real estate training program that helps you become a high earning agent in your market.
Richard teaches the fundamentals of building a real estate career. This 6-hour video program covers how to find more clients, provide top-tier service, close more deals, and earn bigger checks.
Check out From Rookie to Rockstar to learn more.
Real Estate Agent, REALTOR®, Broker, Broker Associate. There’s enough titles in real estate to make your head spin!
When you’re not familiar with the world of real estate, the titles and designations get confusing.
Real Estate Agent, REALTOR®, Broker, Broker Associate: they all sound like the same job. People who are unfamiliar with the industry really don’t know the difference or why it matters.
But, there’s a big difference between these titles. Especially when it comes to what they actually do while practicing real estate. So, let’s begin by defining these titles and talking more in detail about how they differ.
A real estate agent is anyone who has completed the three required pre-licensing courses and passed the state exam. That means that they are licensed in real estate. Real estate agents are also known as a real estate salesperson.
But it doesn’t mean that they can legally negotiate a deal and write contracts.
In order to properly represent a buyer or seller, an agent must first join a local board of realtors. The board of realtors is how an agent gains access to the contracts. The contracts are what legally brokers the purchase or sale of a property.
So, let’s back up and talk about what a real estate agent can do if they’re not a member of a local board of realtors.
This is a great way to make money as a real estate agent. When you get a lead, the buyer or seller is given to another REALTOR®. Then the real estate agent gets a “referral fee” for sending the client. Referral fees are typically 20-25% of the sales price but can be negotiated higher.
This is possible because the real estate agent is not writing contracts or negotiating terms.
Some people earn their license and decide to work with a REALTOR® or a real estate team as their assistant.
As a licensed assistant, you can do virtually everything related to the real estate deal short of negotiating terms and writing contracts. Licensed real estate assistants are also eligible to receive referrals.
You do not need a license to be a real estate assistant. But, without one, you are limited in what you can help the REALTOR® with. That’s why getting a license as a real estate assistant is recommended.
While each brokerage is different, generally commercial real estate doesn’t require agents to become a member of a local board. The contracts used for commercial deals are different so most commercial agents are considered real estate agents.
With the exception of working in the commercial sector, the main factor about being a real estate agent is not having the ability to write contracts and negotiate terms.
So, what’s the difference between a real estate agent vs REALTOR®?
All real estate agents are not REALTOR®. But, all REALTORS® are real estate agents.
Both an agent and a REALTOR® have a real estate license. Agents who are members of the National Association of REALTORS® (N.A.R.) are REALTORS®.
Usually, when an agent joins their local board, fees will include membership to both the California Association of Realtors (C.A.R.) and the National Association of Realtors (N.A.R.).
N.A.R. is a trade association that represents agents across the country. The term REALTOR® is a designation given to agents who have membership. That designation informs the public that they practice real estate with ethics.
Members follow a strict Code of Ethics and pledge to abide by them. There are 17 articles within that Code of Ethics that they follow at all times. They speak to how they treat their client, the general public, and colleagues.
Also, members get access to perks and resources that supplement their career.
Most agents realize the benefit of having the designation of REALTOR® and will become a member of N.A.R.
So, if you hold the title of REALTOR®, you are able to fully represent a buyer or seller in a transaction. You will also be seen as upholding the ultimate standard of ethics.
Let’s talk about what a brokerage is first. A real estate brokerage is a firm that has the capability of legally brokering a real estate transaction.
So what is the difference between a real estate broker vs REALTOR®?
A real estate broker is an independent agent who has the capability of brokering a real estate deal independently. Unlike a real estate agent or REALTOR®, who are required to hang their license at a brokerage firm.
To become a broker you must start as a real estate agent or REALTOR®. The Department of Real Estate then requires a certain amount of experience:
After gaining the required experience you will also need to satisfy the education requirement. This is usually the 5 remaining elective courses.
The last step is to take the brokers exam. Once you pass the exam, you are considered a real estate broker and can run your business independently from a brokerage.
There are many advantages to being a real estate broker. The title itself lets others know that you have more education under your belt.
As a broker, the biggest benefit is earning commission on all your deals and not splitting them with an office. That means more money in your pocket.
Another advantage of becoming a broker is the capability of having other real estate agents under your license. Why would brokers want to do this? Because as the broker, they are entitled to a portion of their agents’ commission.
Being a real estate broker is a great way to work independently or have a team under their licence to create passive income.
A real estate broker associate has the same license as a broker, but works for another broker as a salesperson. While being a broker does have its advantages, it also means having all of the liability as well.
When you are operating on your own as a broker, you are solely responsible. That means handling all the costs associated with lawsuits, compliance, and insurance.
This is why some brokers choose to join a traditional brokerage. When a broker decides to hang their license with an office, the broker is then known by the term broker associate.
While being a broker associate may not have the same freedoms as a broker, there are benefits to joining a brokerage. When a broker associate runs into an issue with a transaction, they have the resources provided by the brokerage firm to help resolve it.
A traditional brokerage will have a broker of record to answer any contract questions. They also employ a risk management company that agents have access to for legal questions. A compliance officer reviews their transaction files to ensure they are in order in case of an audit.
Due to their experience, broker associates may also enjoy a higher commission split.
So, one of the main advantages of a broker joining a brokerage firm is to limit their liability.
As with many industries, there are titles that help differentiate a person’s skill level or education. They also speak to their responsibilities within that role.
In the food industry, there’s a difference between a short order cook, a cook, and a chef.
While each may have a different title, what do they all have in common? They all prepare and cook your food.
Understanding the difference between a Real Estate Agent, REALTOR®, Broker, Broker Associate helps you know what you want in your career. These positions each have different responsibilities or limitations within their title.
The most important takeaway? Whatever the title, each is able to help with buying and selling real estate.
I got started in real estate about 20 years ago, and I got right into real estate after I finished business school. I realized I had a passion for helping people and I originally was looking to get into commercial real estate but decided I can help more people by getting into the residential side first.
In business school, I realized I had a good act for business and I thought that this industry needed people in a higher level and it was a great opportunity for me to come in and make a change. I saw this as an opportunity to really grow, develop and make good money while I could also help people.
I had great mentors. First thing I would say for a new person is that they should get a great mentor. Mentorship is critical. I got the best training and really focused on generating leads. We’re in the real estate business but it’s really about lead generation. Lead follow ups get you the business. You can do all the real estate in the world, but if you don’t have a client, you’re not gonna make money. That’s my motto.
When I first got approached to being the first agent in Los Angeles for Keller Williams, I saw it as an opportunity to have a business model that really supports my real estate sales career. And then I saw the bigger opportunity, which is why I went to business school and own my brokerage. I always had that vision and this became the right platform for me to exercise that vision and I now own 20 Keller Williams offices in California and Hawaii.
It’s not simple, but I am very determined. The way I ran my real estate business is the same way I run my real estate companies. It’s all about how I help the agent, consumers and how I provide the best level of support so that my agents thrive and be successful as well.
They have to have passion and drive. You can’t motivate people, they have to love the business. The skills can be learned, but you have to have passion. Passion can’t be learned.
I learned early on that it’s all about who you’re in business with that matters. Whether that’s a client, people that support you or who you help support. I’ve learned how to develop people. I believe in investing in people and those people invest back in me and because of that we’ve grown an incredible business. There’s no way I can run these many businesses without the help and support of others.
Yes of course, there’s Gary Keller who built Keller Williams- one of the people I look up to for inspiration. He’s an incredible leader and not just in real estate, he’s written all these books, and he really looked at this business in a different way, and because of that I respect what he’s done.
And there are a lot of people, like John Maxwell, Tony Robbins and others that influenced me as well. I learned to create habits when I want to get better at certain things, whether it’s personal or business.
I put sticky notes on my mirror. And I do it for 30-40 days. It’s the first thing I see in the morning and the last thing I see at night. It’s a constant reminder. I don’t put more than three things at once and I succeed at more than 90% of it. I believe a habit is developed over 26-27 days. Creating those habits becomes a pattern.
If you want to make money in the real estate business you need to be disciplined in the most important areas. That’s lead generation, lead follow up and really being focused in certain areas.
Constant balance is important. I work really hard and I make sure I’m playing really hard too. I work at the extremes, but my family is important and at certain times my phone gets turned off and everything else has to wait. You got to be present at work and you got to be present at home.
If you’re really effective the first four hours of the business day you can accomplish a lot and become one of the top agents in the entire city. It’s about laser-focus for at least part of the day.
I define success by less monetary and more about when people recommend me to others. It makes me feel like I’m accomplishing something. I’m making a difference in people’s lives, I’m making a difference in my own life, and the money is the bi-product.
We’re due for more interest rate hikes because the economy is actually doing well and I feel like we’re going to have a pretty good period right now, but I think that’s a short window because we’re due for a downturn in the market. We will stay strong because of the lack of inventory right now, but that’s the only thing really that’s propelling us through what should’ve been and already is a downturn market.
I believe we saw part of it last Fall and even into January. I think we’re having a robust Spring because the fundamentals in the difference of government is causing part of that, and the fact that we have a 4.8% unemployment rate really helps so people can buy. The problem is when interest rates start going up, the affordability changes and causes a problem.
There is another big issue too, which is the affordability in the new construction development to meet the demands of first time home buyers. There’s so much demand and not enough supply and mainly because the cost of land, the cost of development and entitlement is so expensive that why build a lower income project when you can build much more expensive homes.
If you look at the cap rate of apartment buildings, it’s unprecedented numbers. It’s probably because of the lack of supply. Until they allow for more building to go on or create some sort of government sponsored thing in order to create more supply necessary for our economy to support that growth, we’re gonna have a really tight and difficult market.
Be in it for the passion or don’t be in it (at all).
As a mother, Veronica wanted that freedom to be able to work from home. She also gravitated towards the great financial aspect tied into being a Real Estate Agent.
Veronica’s career began at CA Realty Training. She went to in-class training sessions at the Westwood location. She goes on to say that this decision was the best decision she has made for herself. She explains that the support, the courses, and the schedule that CA Realty Training provided all worked out very well for her.
Veronica explains how she felt an abundance of emotions- from excitement to doubtfulness. Now that she got her license, she quickly wondered what her next step was and knew she had to get to business!
The reason for doubtfulness was due to the fact that she did not truly believe that she could do it. However, the support from CA Realty Training has helped her get perspective and gave her the confidence to get out there and begin her career. Her new-made connections and co-workers provided her support and influenced her to get started.
The first people that Veronica approached before getting any clients were her sphere of influence. She goes on to say that her last client was actually from her part-time job at the retail store she worked at prior to getting her Real Estate Agent Salesperson License. Alvarez tells Robert that she told people in her sphere of influence that she had her license, and two months later she got clients!
Veronica advises people that want to get started in this career that they should strive to get past insecurities and doubts (because fear is what ultimately limits people from becoming successful). Alvarez also advises people to pick the right brokerage for them- which will encourage them to stay focused and determined.
Veronica has zero regrets about her decision and career change. She is happy with all of her decisions and with the path she chose for herself. Next time this year, she hopes to have more listings and sales, and will work hard to ensure her goals are achieved.
One of the most critical choices you will make at the start of your career as a newly licensed or potential real estate agent is whether to work solo or alongside a team.
This decision is crucial because it shapes the entire future of your practice and determines how much financial and professional success you can gain.
Let us take a quick look at the advantages and disadvantages of joining a real estate team:
Pros of Joining a Real Estate Team
Cons of Joining a Real Estate Team
As a new agent, you are bound to be faced with a lot of challenges, including:
Let’s face it, handling all of these could get overwhelming. Many experts say new real estate agents should work in a team. Let’s take a look at some of their other reasons:
A real estate team consists of a group of real estate agents working together under a brokerage. These agents do everything together, including managing listings and collecting commissions.
While it might seem like a wrong idea to team up with your competition, you should know that joining a real estate team might be a good idea – especially if you are a new agent.
Working in a team allows you to be closer to other agents, some of which will be more experienced than you are.
You get to see how they handle their leads and clients and learn things from them, thus helping you to become a better realtor.
Additionally, the leads given out by the team leader are pooled together. With a combination of effort from every team member, it is easier to find and land a client.
As a new agent, it could get overwhelming trying to keep afloat. But, if you work with a team, you get professional support from other agents and your team leader. You can also enjoy proper training and education that benefits your career.
Like any business, being a real estate agent comes with its expenses. These include licensing fees, brokerage fees, operation costs, continuing education, marketing materials, office supplies, self-employment income taxes, MLS fees, and lots more.
However, in a real estate team, all these expenses are shared amongst everyone, thus helping each teammate to save some extra money.
Some expenses you get to share with your teammates include MLS fees, office supplies, marketing material, operation costs, and others.
In the real estate industry, the competition is usually agent against agent, and in the case of a team against team.
This simply means that rather than working against your teammates, you are working with them, thus giving you fewer people to compete against.
This way, you get to pool together resources and marketing power to land clients. And suppose one teammate is unwilling to work with a particular client. In that case, the client can quickly be passed on to you rather than have them go to the competition.
While working alone allows you more control of your time, it also gives you the chance to become lazy by dilly-dallying and procrastinating.
However, suppose you are working in a team. In that case, you are automatically accountable to your team leader and teammates. You will thus be pushed to work harder and be more productive.
When working as a team, your sphere of influence is no longer limited to the people you know.
Instead, it spreads to include everyone your teammates know, which increases your chances of landing a client.
While joining a real estate team might be the best for new agents, the same cannot be said for experienced agents.
This is because they might be looking for more independence and freedom that a team cannot give them since they have more experience.
While sharing expenses with your teammates will help you cut costs, it will also mean you get a smaller commission cut. Unfortunately, this will limit your earning potential.
Real estate teams always have team leaders who are in charge of running the entire team.
When working in a team, you don’t get to be your own boss and call the shots; you have to answer to the team leader and other teammates.
This loss of independence and decision-making makes you less of the entrepreneur you would be if you were working solo.
When you work in a real estate team, you put all your efforts into building another person’s brand rather than yours.
Unfortunately, this means you might not get the chance to pursue your interest because you are pursuing that of the brand and team leader.
It also means that if you ever decide to go independent, it might seem like starting from scratch.
Personality is so important in a team that some teams won’t accept agents based on their personality. Different people have different personalities, and when working as a team, you have to deal with all these personalities, good or bad.
While some teammates might have personality types that agree with yours, others might be more difficult to work with. This affects how well you can get along with your team and produce results.
Joining a real estate team is not a prerequisite to success in the real estate industry. But, it has many benefits that could help you kickstart your career as a real estate agent.
If you are a newly licensed agent, joining a team is advisable. But, in the end, whatever decision you make, just make sure you consider both your short-term needs and long-term goals and ensure you are getting the most out of it.
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