Have you been thinking of changing your career? Are you sick of being another 9-5 drone? Have you thought about becoming a real estate professional? If you have, here are some things you need to consider before taking the plunge.
The first step is getting your license.
In order to get your license in Utah, you must complete a 120 hour training course. You can attend a class here in Logan at The Bridgerland Applied Technology College. You can also attend the program online through a real estate online training program. If you learn better hands on, doing the class in person is probably the right angle. If you have time issues, taking the class online may be the best bet. Before taking a class, it would be a good idea to read this and this about licensing laws in Utah.
No matter what class form you decide to enroll in, you will be required to take a state exam. After the exam you are required to pass a federal background check. Being a real estate agent grants you a lot of responsibility. The background check will be reviewed by the Utah division of real estate, and if they don’t like what they find, they will deny your license even after all the time spent educating yourself. If you think there is something in your background history that would prevent you from being licensed, don’t even bother taking the test, it will waste your time and money.
The second step is to prepare.
Most people in the real estate business will tell you that in order to be successful, you need to be prepared to wait. On average, you won’t receive your first paycheck for up to six months. It’s very important to budget for this time frame. Knowing that it can take up to 90 days to close on a home and knowing it can take months of showing a prospective client multiple homes, as an agent, you have to be financially prepared to handle the expenses it takes to complete these tasks.
Paying for gas to shuttle your clients around town, car maintenance, food, office space, and advertising expenses can add up quickly. Before you quit your job and become a full time agent, be sure that you are prepared to go without a steady income for at least 6 months.
Pay Your Dues.
Becoming a REALTOR(R), which you have to be in order to have access to Utah’s MLS the WFRMLS system, you have to pay your dues. You have to pay the National Association of REALTORS(R), the Utah Association of REALTORS(R), as well as your local boards yearly fees to have an active license. You also have to pay the WFRMLS a monthly fee to have access to their data. These fees are about $1000 a year for your NAR, UAR, and local board fees plus $30 a month to the WFRMLS. Oh, you also have to pay an upfront processing fee in order to get your license!
Being an active REALTOR(R) is not cheap. There are always people trying to get into your pocket in this business, and it’s important to budget these yearly expenses.
Getting up and running.
Now that you received your license and paid all your dues, your now ready to go Broker shopping! Whether you have a brokerage you want to work with or you are completely clueless to where you want to work, I would recommend you interview multiple brokers. Every brokerage is different, different personalities, different programs, and different splits with your commission. (Click to see every brokerage in Cache Valley.)
Some brokers offer a very nice split such as 85%/15% or maybe even a 100% with just a desk and transaction fee. Other agencies offer a 60%/40% or even 50%/50%. Usually the difference between having a high split is the amount of help the agency offers. The brokerage that offers you 100% of your commission usually won’t help you with any of your advertising expenses and won’t give you any leads to work. The 50%/50% brokerages usually justify such a high split because of the extras they offer. They may pay for all of your advertising, give you leads to work, and provide you with a desk free of charge.
If you feel you can afford the advertising costs it takes to maintain a respectable market presence then the smaller splits might be best for you. If you want training, leads handed to you, paid advertising, and a free desk the higher splits would be the best way to go. The best thing you can do is interview as many brokers as you can, talk to the agents that work for the company, and decide which one would be best in your situation.
Knowledge is power!
Just because you have your real estate license doesn’t necessarily mean you know anything about selling real estate. The more real estate training you can obtain, the better chance you have at succeeding. Your clients can tell if you are full of it or if you actually know what you’re doing. Nobody in their right minds is going to trust you with the largest purchase they will ever make in their lifetimes if they don’t believe you know the process.
What you learn in real estate classes is the tip of the iceberg. You’re going to need some quality training on contract law, dealing with inspections, mortgage programs, and your knowledge of the local market conditions should be the number one priority. Viewing homes in your market, knowing home prices, and staying up to date on contract law is paramount to your success.
Being a successful agent.
First off, being a real estate agent isn’t all about buying and selling houses. All successful real estate agents that I know are people persons. Real estate is all about people and the more people you know, the more you have a chance at succeeding.
When we bring a new agent into our brokerage, the first thing we do is go through every contact they have. Everyone they know is added to a list, and from then on we create a strategy to inform those people the new agent is now in the business. The more people you know, the more chances you have at helping them buy or sell a home.
Success is a direct reflection on your worth ethic. Real estate is a lead generation business. There are many forms of generating leads from internet to door knocking. You will have to generate leads day in and day out in order to make a descent living. That means showing up to work everyday, returning phone calls in a timely manner, acting professionally, and getting out of your comfort zone in order to drum up business.
Still want to be an agent?
Don’t get me wrong, becoming a real estate agent is one the most satisfying decisions I have made in my lifetime, but you have to be well prepared in order to succeed. Being a real estate agent allows me to make my own hours, allows me an unlimited earning potential, and I get to help people through the hardest decision most make in a lifetime. It can be very rewarding.
Nothing beats the smile on a first time home buyers face at a closing table when I hand them the keys, or when a past client calls me and says they want me to help their child buy their first home. The benefits to being an agent far succeed the nuances, but in order to enjoy these benefits, you have to be well prepared.
If you truly have a passion for helping people make their dreams come true, have a strong worth ethic, and are prepared to start a career with unlimited potential. Maybe it’s time for you to drop the 9-5 and step up to the plate of becoming a REALTOR(R).
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