Pros And Cons Of Real Estate Agent Career – You may love the idea of making real estate your main career, but you may not be in a place where you can do it. Why not start with real estate as a side hustle and see where it takes you before going all out? We’ve gathered the information you need to become a part-time real estate agent and increase your chances of success once you get your license.
If you’re looking for a side hustle that’s flexible, starts quickly, and allows you to earn significant extra cash, look no further than becoming a part-time real estate agent. With low entry barriers (typically three to six months of training) and high earning potential, this alternative career path is a popular choice for ambitious workers with extra time on their hands.
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However, becoming a part-time real estate agent is not a walk in the park and requires considerable time and effort to see real results. Here’s what you need to know if you’re considering this career path.
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Yes, you can work as a part-time real estate agent. The process of becoming a part-time agent is the same as a person training to become a full-time agent. The only difference is that some brokers usually do not hire part-time people. Below are the basic steps to help you become a licensed part-time or full-time real estate agent.
The first thing to understand when getting a license is that each state has different requirements. For this reason, it is important to do your own research on your state’s specific regulations. You can usually find this out with a quick Google search. In total, becoming an agent will probably take about six months and cost about $2,000.
Step 1: Take a pre-licensing course. In any state, the first step is to enroll in a real estate agent course. Many cities will offer face-to-face classes at local business schools or community colleges, and many online courses are also available. Given the dangers of the pandemic in many states today, you may prefer to take classes online even if face-to-face classes are available. Some of the most popular include:
Depending on your state, you may be required to take anywhere from 45 to 120 hours of pre-licensing classes. Some states also require you to pass an initial licensing exam.
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Step 2: Join a brokerage company. A real estate brokerage is a government-sanctioned organization that employs and supervises real estate agents to ensure that all transactions are conducted legally. As an agent, you have to work under the direction of the broker. Some states require you to actually apply and join a brokerage.
Take the exam to get a state license. This can be beneficial because once you become a licensed agent, you already have contacts in the industry, so you will likely be able to get started right away.
Step 3: Take the real estate license exam. The next step in your journey is to register and pass the state exam to get your license. Many real estate schools will provide you with practice exams, which are very helpful in preparing for the real test. Again, each state administers the exam differently and through different providers, so check with your specific state board for more detailed registration instructions. Most states will allow you to retake the exam two or three times if you don’t pass the exam on the first try before additional study hours are required.
Step 4: Register with your local real estate board. Once you receive your license, you will need to register and pay a registration fee to join your state’s real estate board. A quick online search for your specific state should show you how to sign up.
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Step 5: Become a registered Realtor (if you choose). Although the terms “Realtor” and “real estate agent” are often used interchangeably, “Realtor” is actually a copyrighted term owned by the National Association of Realtors (NAR). To position yourself as a certified Realtor, you must pay an annual fee and join the NAR. There are other benefits, including access to continuing education courses and proprietary market research. It’s up to you to decide if the extra cost is worth it.
Now that you understand the basic steps required to become a part-time agent, we will look at the advantages and disadvantages of choosing this career as a side business.
As we mentioned at the beginning of this article, there are many benefits to pursuing real estate as a side hustle. Some of the factors that most often draw people to this area include:
Yes, you can absolutely work as a real estate agent part-time and full-time as long as you have excellent time management skills and don’t mind being busy. The most popular open house times are evenings and weekends, since most people looking to buy or rent a new home probably also work a 9-5 schedule. This is good news for part-time agents, because the timing of the appointment is the best for you the client will, in most cases, be the best for you.
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However, being a real estate agent requires more than just holding open houses. Finding and attracting potential customers is a big part of the process; This is not a source of passive income. If you’re on this career path, between prospecting, open houses, and your full-time job (not to mention other commitments to family and friends), you probably won’t have much free time.
Some people like to stay busy and thrive in this lifestyle, but to make sure you’re prepared, ask yourself the following questions:
If you answered yes to all of the above, then read on to find out what you’ve been waiting for: a part-time agent salary.
Calculating how much you can earn as a part-time real estate agent is actually quite simple. As we discussed earlier, the average weekly salary for a part-time agent is $1,100, and this can vary depending on how many hours you work, what market you’re in, and how you typically make sales (commission or referral). . The average hourly rate for a real estate agent is $40 an hour.
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A commission is a fee your client pays you for your services in finding their home and negotiating an agreement with a seller or landlord. According to RedFin, the average real estate agent’s commission is 2.5 to 3 percent of the total home price.
For example, say your client buys a house for $350,000 and you agree to a three percent commission rate. The calculation will look like this: X (income) / 350,000 (total house cost) = 3 (commission percentage) / 100. Then you need to cross multiply 350,000 x 3 to get 1,050,000 and then divide by 100 to get your income. from $10,500. Using this method, you will be able to calculate how much you will earn with each customer.
Another common income strategy used by part-time real estate agents is referral fees. This is when you refer an interested client to another agent, either because you don’t have the time to devote to their home search or because another agent is a better fit for their needs. In this case, usually the referring agent (you) receives 25% of the total commission earned by the other agent as a reward for referring a warm customer.
Continuing the above example, let’s say you refer the client to another agent, who then earns a $10,500 commission. To calculate 25% of this amount, you must use the same basic equation: X (income) / 10,500 (total commission) = 25 (referral commission) / 100. Then you must cross multiply 10,500 x 25 to get 262.500 and then divide by 100 to get a referral commission of $2,625.
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If you’ve decided that being a part-time real estate agent is the side career for you, check out our additional resources below to learn more about what it takes to get started, connect with new prospects, and grow your brand. over there:
Once you get started in real estate and potential tenants start coming in, we’re here to provide a seamless online screening and rental service. Contact us to learn more or set up a demo to see how these tools can make your job easier.
Enter the information in the fields below to calculate the property’s comparative value and decide if it would be a good investment for you. If you are considering a career in real estate, it is important to understand whether you are a real estate professional. agent is a rewarding career.
This includes guiding clients through the home buying process, marketing properties for sale and negotiating contracts on behalf of clients.
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The purpose of this article is to provide an overview of what it means to be a real estate agent, including the pros and cons of the job, as well as the challenges faced in the industry.
By the end of this article, you will have a better understanding of whether becoming a real estate agent is the right choice for you.
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