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After taking the real estate exam you should have a clear picture of what your new career will look like. Here are questions you should ask yourself to help you succeed as a Real Estate Agent.
Having a business plan will guide you to where you want to be in the next two to five years. You don't have to write a twenty-page business plan but you should have a picture of where you want to be. For example, how much do you want to make the first year will? The answer to this question will determine how many homes you must list and/or how many homes you must help clients buy that first year. Your business plan needs to have clear goals with realistic deadlines. Keep in mind that its good practice to revisit the business plan every 6 months to make any changes based on new information and experience
Tip: Start with the end-goal in mind. For example, I want to sell 20 homes the first year. Then write down what it will take to sell 20 homes and work backward to the starting point from there.
There are many small to large national real estate firms to choose from. You have to ask yourself if you want the small firm or the large national brand. The biggest difference between large brands and small boutique firms are the resources they will have available for you. Ultimately, you should select the one that fits your personality and is aligned with your values.
Tip: Make sure you interview with different real estate brokers and make a list of the advantages and disadvantages of working with them.
Marketing yourself is one of the most important aspects of business. There are many ways to market yourself online and offline . Social media and real estate sites such as Zillow and Realtor (dot) com are good places to start. Offline, you can join community service organizations and participate in local events to give yourself exposure to the general public who can become your future clients. The more people know you the more comfortable they are with allowing you to participate in these sorts of life changing decisions.
Tip:Tip: Marketing yourself is about creating your own personal brand-something people can connect with and remember you by.
In order to start any business you need a circle of influence. If you don't have one then you need to find people and create one. For example, as a real estate agent, you want to make sure you get to know some escrow officers, title officers, tax attorneys and home inspectors. A circle of influence should include people who will help you in the transaction process and people who can refer you clients that you would also be able to refer clients to. It will make your life much easier when trying to close escrow on a home.
Tip: Remember, real estate is all about relationships. Once you have built trust within your circle of influence it will be much easier to ask for favors, get information and referrals.
Hosting open houses yourself, not sending an associate will help you get more prospects and get offers quicker. It allows you to connect face to face with people wanting to buy which can set you apart from those who don't host open houses frequently or use associates to host on their behalf. It's a numbers game, the more open houses you have the more chances you have of meeting new people and getting the home sold.
Tip:Most people view homes online before going to an open house so make sure the house is priced right and is well staged.
Real estate agents are independent, which means they have to wait until escrow closes to get paid. Your commission can vary from one to six percent of sales price. While some homes can sell in days, others can take a lot longer. If you don't complete any real estate transactions then there is no pay-it's simple as that. Knowing this will allow you to plan in saving money for your personal and business expenses to hold you off for those rainy days when there are no deals.
Tip: Having pre-approved and approved borrowers will save you time. Some real estate agents don't show homes unless borrowers have been pre-approved.
Just because you know a lot of people it doesn't mean that they will trust you to sell their home or help them find a new one. It will take a while to build the trust of people you have just met, friends and family. Once you have built a name for yourself people will start looking at you as an expert and may even come to you for advice. Giving people information and being a resource means that you will have more opportunities to gain clients through the reputation you are building.
Tip: Making a name for yourself will depend on the consistency of your marketing and the quality of your advice and work.
Real estate agents work a lot of weekends, so you have to be ready to wake up early and go put those sale signs up. Partner up with other real estate agents to collaborate in helping one-another host or prepare for open houses, this way you can have some weekends off if and when necessary.
Tip:Tip: Get everything prepared ahead of time for the weekend. For instance, you can put all the sale signs up on Friday evening or maybe you can have an open house by appointment only.
Social media is so important for showing homes and telling potential clients that you have new listings. It is a must do in today's market. You can use social media to post: new listings, video tours of the homes, neighborhood tips, market news, ect. Make sure to give your social media a personality so it doesn't seem like you're just doing sale pitches all the time.
Tip:Join groups on Facebook or other social media groups to make sure you get the maximum exposure. Remember to comment and interact with people, it's a social network after all.
In order for you to be successful you have to invest time and money. Aside from investing a lot of time without pay, you should ask yourself ''how much money are you willing to burn in the first year?'' Again, this is why having a business plan will help you see where you're going because you will have to answer all of these questions within the plan before you even hit the ground running. How long will the money last before you start breaking even or becoming positive cash flow? Have a timeline.
Tip: If you don't have a lot of money to invest, find out what you can do for free that doesn't cost money. For example, you can do the marketing yourself, you can help other real estate agents do their marketing until you can start building your client base.
As a real estate agent you are your own boss and anytime you're your own boss you call the shots and gain all the benefits, but you also deal with the ups and downs of the business. Again always have a plan so when the market is slow you have a something to fall back on. Good luck in your new journey as a real estate professional!
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