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Why NOW is the best time to get your real estate license

Posted on October 17, 2023 by Real Estate Like a Boss

If you’ve ever dreamed of a career in real estate, the fourth quarter of 2023 may be one of the greatest times in history to start getting your real estate license. While there is no shortage of negative news in the housing market about inventory shortages and plummeting mortgage applications that suggest a recession is imminent, here are five major reasons why 2024 will be a great year for real estate and why now is the perfect time to get ready for it.

1. January is the busiest time of the year

As the calendar flips to a new year, the real estate market comes alive in January. Historically, this month has proven to be one of the most active periods for both buyers and sellers. It’s a time when people set fresh goals, including homeownership, and are eager to make a change in their living situation. This surge in activity provides newly licensed agents with a wealth of opportunities to jump into the market with enthusiasm. It’s your chance to get in on the action and start building your real estate career from day one.

2. The licensing process takes 2- 3 months

Getting licensed to work in real estate doesn’t happen overnight. The process typically takes approximately 2-3 months. This includes fulfilling the educational requirements, passing your state’s licensing exam, and submitting the necessary paperwork. By starting the process now, you position yourself perfectly to capitalize to hit the ground running when it’s busy at the first of the year.

3. A recession will lower interest rates

Demand is down now, but market experts are anticipating a mild recession soon, which will force the Federal Reserve to lower interest rates. As interest rates fall, it can make homes more affordable for buyers. The Mortgage Bankers Association anticipates this will spark a huge housing rebound and mortgage origination volume to surge 19% next year. It’s the perfect time to guide buyers through the process and secure their dream homes while the cost of borrowing remains attractive.

4. Huge pent-up demand

Even though real estate sales have been down in 2023, there is never a shortage of demand for real estate property. Everybody wants to own a home. Most people are just being forced to sit on the sidelines until the market conditions improve. According to Bank of America, there is a whopping $5.3 trillion sitting in money market funds. When interest rates begin dropping next year, there will be a flurry of activity and people lining up to buy.

5. Biggest discounts at real estate schools

Real estate schools are seasonal with their promotions and offer the best deals in the fourth quarter. On top of that, they have been feeling the pinch this year along with the rest of the real estate market. As a result, they have been giving out bigger promotions and lowering their prices. The cost to complete your real estate courses has never been lower!

While the market may not seem great right now, the stars are aligning for a remarkable year in real estate next year. Since it takes a few months to get licensed, if you start now, you will be in a perfect position to catch the momentum going up when the market rebounds.

Best Real Estate Schools In North Carolina For Your Personality

Posted on August 27, 2023 by Real Estate Like a Boss

Real estate schools come in all shapes and sizes. Similarly, each student has their own preferred way of learning. Some people prefer to learn by sitting in a classroom while others may want to study independently and at their own pace from home. That’s why the best real estate school you can choose to get your real estate license in North Carolina is the one that matches your own personality and study habits.

To find out which school is right for you, we’ll need to determine what kind of personality you have. Below are the major personality categories from the well-known Myers–Briggs Type Indicator test. You will most likely associate with more than one category, so just pick the one that you feel is most dominant in your overall personality.

Extroverts love being around people all the time.
Introverts may enjoy being around other people but definitely need alone time as well.
Sensors prefer to see things with their own eyes. They stick to practical activities that engage their five senses.
Intuitives look at the big picture rather than small details. They are dreamers who see endless possibilities.
Thinkers love to analyze lots of data and numbers to form an objective opinion.
Feelers are a people-person who make decisions based on gut feelings and personal values.
Judgers are highly organized and prefer structure and planning.
Perceivers go with the flow. They are spontaneous, open-minded, and can adapt to their environment.

Now that you’ve identified the type of person you are, we can review the best real estate schools that match your personality that will help you successfully obtain your real estate license.

Best School for Extroverts and Feelers

Superior School of Real Estate

Extroverts
Extroverts will feel energized and motivated by attending one of Superior’s live classes in North Carolina. Not only are the instructors engaging and involved within the local communities, many of them are active brokers themselves.

Their physical classrooms are located in Greensboro, Cornelius, Raleigh, Charlotte, and Winston-Salem. The classes run Monday through Wednesday every week, Thursday through Friday every week, weekends only, and more. There are morning sessions, night sessions and all-day sessions to choose from as well. Depending on what schedule you choose, it will take between 5 to 8 weeks to complete the entire 75-hour course.

If driving to one of their locations every time is going to be too much of an inconvenience, they do offer a livestream option that you can take from home. You will just need a reliable internet connection and can virtually attend the class from anywhere on your laptop or computer. This alternative gives you the best of both worlds by giving you the real-time engagement of a classroom instructor without the hassle of the commute.

Feelers
By attending one of the live classes offered at Superior, Feelers will be able to cultivate new relationships and form connections with their peers. Being able to make new friends in class will make learning a lot more comfortable and inviting. Role-playing scenarios, group discussions, and sharing stories can enhance the learning experience and make studying enjoyable.

Best School for Introverts, Intuitives, and Perceivers

Aceable

Introverts
Aceable has a program that would be great for Introverts. It is a 100% online only course where you are essentially reading the whole time. This allows you to study independently and at your own pace. It is mobile friendly, so you can study from your smartphone, laptop, or even tablet.

Intuitives
Intuitives will love the audio and video lessons that Aceable offers with their premium study aids. They cover key concepts and areas that you need to know to give you a broader perspective of real estate law and establish a firm foundation of knowledge. If you already have a full-time job or simply a busy schedule, this will save you a great deal of time by curating the most relevant topics for you and keeping you away from areas that aren’t really that important.

Perceivers
Aceable is also a good option for Perceivers for its open learning environment. You can study at your own speed and access a wide assortment of tools as needed. In fact, they are one of the few schools that actually have a mobile app that you can download on your phone so you can study easily on the go. They also provide a wide range of support options that include live weekly webinar sessions to one-on-one individual tutoring.

Best School for Sensors, Thinkers, and Judgers

The CE Shop

Sensors
Sensors will thrive with The CE Shop’s structured learning environment. There are a wide variety of interactive exercises to help you learn through repetition and memorization. They have one of the hardest programs in the real estate industry, so it may take you longer to finish the course. However, you will come away having mastered the material and will be able to pass the exam with ease.

Thinkers
The CE Shop seems to be just as analytical as Thinkers are themselves. They built their own custom learning platform called LEAP 2.0 from scratch. It is an inquiry-based model that gets your feedback as you study. This helps it generate test questions tailored specifically to you to make your learning experience as optimal as possible.

Judgers
Judgers will prefer the clean interface and organized format from The CE Shop. They walk you through the material one slide at a time and allow you to easily monitor your progress along the way. They also actively track how well their students performed on the actual exam so they can fine-tune their courses to get the best results.

Unveiling the Shadows: Potential Fraud in Real Estate Transactions

Posted on August 20, 2023 by Real Estate Like a Boss

Real estate transactions are significant financial endeavors that involve buying, selling, or leasing property. These transactions can be complex, involving various parties, legalities, and documentation. Unfortunately, the lucrative nature of real estate also makes it a breeding ground for potential fraud. In this blog post, we will delve into the world of real estate fraud, exploring its various forms and providing specific examples to raise awareness about this critical issue.

I. Identity Fraud

Identity fraud is a prevalent form of real estate fraud where criminals assume the identity of property owners or buyers to carry out illicit activities. For instance, an individual could impersonate the rightful owner of a property and attempt to sell it to an unsuspecting buyer. The criminal might create counterfeit documents, forge signatures, and even establish fake companies to give their scheme an air of legitimacy.

Example: In 2017, a New York-based fraudster used forged documents to transfer ownership of a vacant property to his name. He then sold the property to an unwitting buyer for a substantial amount. The true owner only discovered the fraud when attempting to sell the property years later.

II. Title Fraud

Title fraud occurs when someone fraudulently obtains the title of a property by forging documents or manipulating records. This type of fraud can lead to wrongful transfers of ownership, resulting in innocent homeowners losing their property.

Example: In a notorious case from 2006, a Californian couple faced foreclosure after fraudsters obtained a mortgage on their property using forged documents. The fraudsters sold the property to a third party, leaving the original homeowners to fight a lengthy legal battle to reclaim their home.

III. Mortgage Fraud

Mortgage fraud involves misrepresenting information on a mortgage application to secure a loan under false pretenses. This can range from inflating income figures to submitting fabricated employment histories. Such fraud can lead to financial loss for lenders and borrowers alike.

Example: A group of real estate professionals in Florida orchestrated a scheme in which they recruited individuals with good credit to purchase multiple properties. The professionals then falsified loan applications, inflated property values, and pocketed the excess loan funds. The borrowers, who had no knowledge of the fraud, ended up defaulting on the loans, while the fraudsters disappeared with the profits.

IV. Rental Fraud

Rental fraud takes place when scammers pose as property owners or landlords, advertising properties they do not actually own or have authority to rent. Unsuspecting renters may pay deposits and sign leases, only to discover that the property was never available for rent.

Example: In a case reported in 2020, a scammer listed a vacant property for rent on various online platforms, targeting desperate renters seeking affordable housing. The scammer collected security deposits and first month’s rent from multiple tenants before disappearing, leaving the renters without a place to live.

V. Foreclosure Fraud

Foreclosure fraud occurs when fraudsters prey on homeowners facing foreclosure by offering fraudulent assistance in exchange for fees. They promise to negotiate with lenders, delay foreclosure proceedings, or modify loans, but often deliver no real results.

Example: During the 2008 financial crisis, a surge in foreclosure fraud cases was reported. Many homeowners paid substantial fees to companies promising to save their homes from foreclosure, only to discover that these companies provided little to no assistance, exacerbating their financial woes.

VI. Online Listing Scams

In the digital age, online listing scams have become increasingly prevalent. Scammers create fake property listings with attractive prices to lure potential buyers or renters into sending money or personal information.

Example: In a recent case, a scammer copied a legitimate property listing from a real estate website and reposted it on another platform with a significantly lower price. Several hopeful buyers contacted the scammer, only to be asked for upfront payment to secure the property. The scammer vanished after receiving the payments, leaving the buyers empty-handed.

Final Thoughts

Real estate transactions, while potentially rewarding, also carry significant risks due to the possibility of fraud. The examples provided in this blog post shed light on the various ways fraudsters exploit the complexities of real estate to deceive unsuspecting victims. To safeguard against such fraud, potential buyers, sellers, and renters must remain vigilant, conduct thorough due diligence, and seek legal advice when necessary.

Additionally, regulatory bodies, law enforcement agencies, and real estate professionals play a crucial role in identifying and preventing fraud to ensure the integrity of the real estate industry. By staying informed and cautious, individuals can minimize their vulnerability to real estate fraud and protect their investments and financial well-being.

Everything You Need To Know About The California Real Estate Broker Exam

Posted on August 2, 2023 by Real Estate Like a Boss Leave a comment

It takes a lot of pre-requisites just to be able to sit for the California broker exam. Not to mention that it’s a long test that will require you to be there all day. So, if you are thinking about “winging it,” you may want to know what you will be going up against first.

This comprehensive guide will walk you through all the details you need to know (except for the actual questions on the test) about the broker state exam. .

Application

After you’ve met the pre-requisites for education and experience, you’ll need to mail your application, along with the $60 exam fee, to take the broker state exam in California.

There are two ways to file your application:

Broker Examination Application (RE 400B) – This is the standard application form.
Combined Broker Examination and License Application – This is the “fast track” option where you pay all fees upfront. This cuts down on the paper-shuffling, and you end up receiving your license faster. However, keep in mind that all fees are non-refundable, so if you fail the test or change your mind, you will not get your money back.

Scheduling

The broker state exam is administered by the Department of Real Estate about once a month. You can see the current schedule of availability on their website here.

You can schedule your exam through the eLicensing online system very easily now. This allows you to schedule your test all the way up until 6am on the day of the exam.

The exams will begin promptly, so it’s important to be punctual and arrive at least 30 minutes early.

Basic calculators will be provided, so you will not be allowed to bring your own.

Locations

There are 5 exam sites available:

Los Angeles and surrounding areas
1 Centerpointe Drive
Suite 370, 3^rd Floor
La Palma, CA 90623

Fresno and surrounding areas
2550 Mariposa Mall
Room 3070
Fresno, CA 93721

Oakland and surrounding areas
1515 Clay Street
Suite 702
Oakland, CA 94612

Sacramento and surrounding areas
1651 Exposition Blvd
Sacramento, CA 95815

San Diego and surrounding areas
7630 Carroll Road
San Diego, CA 92121

Note: The DRE has an office in Los Angeles that is not an exam site.

Format

The exam consists of 200 multiple-choice questions and is broken up into 2 parts.

There is a 2.5 hour morning sessions with 100 questions, and a 2.5 hour afternoon session for the remaining 100 questions.

You will need a score of 75% or better to pass. You will be notified of the examination results immediately after you finish. They will also mail you a formal notice within 5 business days by mail.

If you fail the exam, the easiest way to re-apply is through the eLicensing online system. You can try to pass the exam as many times as you need within 2 years of filing your initial application. After the 2 year mark, you will have to re-qualify for the experience and fill out a new application along with the test fee.

Content

The law requires that broker license applicants demonstrate in a written examination:

Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.
An understanding of the principles of real estate and business opportunity conveyancing; the general purposes and general legal effect of agency contracts, deposit receipts, deeds, deeds of trust, chattel mortgages, bills of sale, mortgages, land contracts of sale, and leases; and of the principles of business, land economics and appraisals.
A general and fair understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner.

Here are the 7 sections covered in the state exam and how much each section is weighted:

Property Ownership and Land Use Controls and Regulations – 15%
Laws of Agency – 17%
Valuation and Market Analysis – 14%
Financing – 9%
Transfer of Property – 8%
Practices of Real Estate and Mandated Disclosures – 25%
Contracts – 12%

Here’s a detailed breakdown on what’s covered in each section. This is for informational purposes only, and is subject to change.

Property Ownership and Land Use Controls and Regulations

Classes of Property
Property Characteristics
Encumbrances
Types of Ownership
Descriptions of Property
Government Rights in Land
Public Controls
Environmental Hazards and Regulations
Private Controls
Water Rights
Special Categories of Land

Laws of Agency and Fiduciary Duties

Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents
Creation of Agency and Agency Agreements
Responsibilities of Agent to Seller/Buyer as Principal
Disclosure of Agency
Disclosure of Acting as Principal or Other Interest
Termination of Agency
Commission and Fees
Responsibilities of Agent to Non-Client Third Parties

Property Valuation and Financial Analysis

Value
Methods of Estimating Value
Financial Analysis

Financing

General Concepts
Types of Loans
Sources of Financing
Government Programs
Mortgages/Deeds of Trust/Notes
Financing/Credit Laws
Loan Brokerage
Types of Loan Originators

Transfer of Property

Title Insurance
Deeds
Escrow
Tax Aspects
Special Processes
Transfer through Court Supervision
Types of Vesting

Practice of Real Estate and Mandated Disclosures

Trust Account Management
Fair Housing Laws
Truth in Advertising
Record Keeping Requirements
Agency Supervision
Permitted Activities of Unlicensed Sales Assistants
DRE Jurisdiction and Disciplinary Actions
Licensing, and Continuing Education Requirements and Procedures
California Real Estate Recovery Fund
General Ethics
Technology
Property Management
Commercial/Industrial/Income Properties
Specialty Areas
Transfer Disclosure Statement
Natural Hazard Disclosure Statements
Disclosure of Material Facts Affecting Property Value
Need for Inspection and Obtaining/Verifying Information
Reports
Servicing Diverse Populations

Contracts

General
Listing Agreements
Buyer Broker Agreements
Offers/Purchase Contracts
Agreements
Promissory Notes/Securities
Purchase/Lease Options
Advanced Fee

Some Final Thoughts...

It is extremely important that you do not try to cut corners and cheat. If you get caught, they will charge you with a misdemeanor. Do not talk to other test takers, copy answers, bring unauthorized personal items to the test, or try to game the system in any way.

You’ll want to reserve a sufficient amount of time to prepare for the exam. There are a lot of education providers available nowadays with practice tests and crash courses. This is a big test, so I advise doing it right the first time.

Demographics of a Real Estate Agent

Posted on July 10, 2023 by Real Estate Like a Boss

- Gender: 56.6% of real estate agents are women, while 43.4% are men.
- Race/ethnicity: 70.3% of real estate agents are White, 13.0% are Hispanic or Latino, 6.8% are Asian, and 5.2% are Black or African American.
- Age: The average real estate agent age is 49 years old.
- Education: 66% of real estate agents have a college degree.
- Homeownership: 78% of real estate agents are homeowners.

The real estate industry is a diverse one, with agents from all walks of life. However, there are some clear demographic trends that can be seen among real estate agents in the USA.

Gender

The most significant demographic trend in the real estate industry is the gender gap. According to the National Association of REALTORS® (NAR), 56.6% of real estate agents are women, while 43.4% are men. This means that women make up a majority of the real estate workforce, and the gender gap is only getting wider.

There are a number of factors that contribute to the gender gap in real estate. One factor is the traditional view of real estate as a male-dominated field. This view has been slowly changing in recent years, but it still persists. Another factor is the lack of female role models in the industry. There are not as many female real estate agents at the top levels of the industry, which can make it difficult for women to break into the field.

Race and Ethnicity

The racial and ethnic demographics of real estate agents are also somewhat diverse. White real estate agents make up the majority of the workforce, but there is a growing number of Hispanic or Latino, Asian, and Black or African American agents. This diversity is likely due to the increasing diversity of the US population as a whole.

According to NAR, 70.3% of real estate agents are White, 13.0% are Hispanic or Latino, 6.8% are Asian, and 5.2% are Black or African American. This means that the real estate industry is more diverse than many other industries in the USA.

Age

The average real estate agent age is 49 years old. This suggests that the industry is aging, as there are not enough young people entering the field to replace those who are retiring. However, there is a growing number of millennials who are interested in real estate, so this trend may change in the future.

According to NAR, 23% of real estate agents are under the age of 35, 40% are between the ages of 35 and 54, and 37% are over the age of 55. This suggests that the industry is starting to attract younger people, but there is still a significant number of older agents in the field.

Education

The majority of real estate agents have a college degree. According to NAR, 66% of real estate agents have a bachelor’s degree or higher. This suggests that real estate agents are well-educated and have the skills and knowledge necessary to succeed in the industry.

Homeownership

The majority of real estate agents are homeowners. According to NAR, 78% of real estate agents are homeowners. This suggests that real estate agents have a good understanding of the real estate market and are able to use their knowledge to their advantage.

Conclusion

According to the National Association of REALTORS® (NAR), the typical REALTOR® is a 56-year-old white female who attended college and is a homeowner. 66% of all REALTORS® are female, and the median age of all REALTORS® is 56.

The gender and demographic breakdown of real estate agents in the USA is diverse. However, there are still some disparities, such as the gender gap and the lack of young people in the field. It will be interesting to see how these trends change in the future.

Additional Resources

National Association of REALTORS®: https://www.nar.realtor/
Zippia: Real Estate Agent Demographics: https://www.zippia.com/real-estate-agent-jobs/demographics/
Data USA: Real Estate Brokers & Sales Agents: https://datausa.io/profile/soc/real-estate-brokers-sales-agents

How To Be Ready When The Real Estate Market Bounces Back

Posted on June 13, 2023 by Real Estate Like a Boss

The real estate market has been on a roller coaster ride in recent years. After a sharp decline during the Great Recession, prices began to recover in 2012 and have been on an upward trend ever since. However, the market has cooled in recent months, with home prices starting to decline in some areas.

There are a number of factors that are contributing to the slowdown in the real estate market, including rising interest rates, a shortage of inventory, and concerns about the economy. However, many experts believe that the market is simply correcting itself after a period of rapid growth and that prices will eventually start to rebound.

If you are thinking about a career in real estate, now is a great time to prepare. The market is likely to pick up again in the near future, and by being prepared, you can position yourself for success.

If you are completely new to the real estate industry, here are a few things you can do to prepare for a real estate career:

Get your real estate license. This is the first step to becoming a real estate agent. You will need to pass a state-approved real estate exam and meet other requirements set by your state.
Get experience. The best way to get experience in real estate is to work as an assistant to a real estate agent. This will give you the opportunity to learn the ropes and see how the business works.
Build your network. Networking is essential in real estate. Get to know as many people as you can who are involved in the real estate industry, including other agents, lenders, appraisers, and title companies.
Get certified. There are a number of certifications available for real estate agents. These certifications can help you differentiate yourself from other agents and show potential clients that you are committed to your profession.
Stay up-to-date on the market. The real estate market is constantly changing, so it is important to stay up-to-date on the latest trends. You can do this by reading real estate publications, attending industry events, and networking with other agents.

Here are some additional tips to help you take your career to the next level:

Get a mentor. A mentor can provide you with guidance and support as you start your career. Look for a mentor who is experienced and successful in real estate.
Take advantage of training and education opportunities. There are a number of training and education opportunities available for real estate agents. These opportunities can help you learn new skills and stay up-to-date on the latest trends.
Be professional. In real estate, it is important to project a professional image. This means dressing appropriately, being on time for appointments, and communicating effectively.
Be persistent. Real estate is a competitive business, so it is important to be persistent. Don’t give up if you don’t succeed right away. Keep working hard and eventually you will achieve your goals.

The real estate market will bounce back eventually. By following these tips, you will be fully prepared to take advantage when the market turns around and will set yourself up for future success.

How To Stage Your Home For Sale

Posted on May 25, 2023 by Real Estate Like a Boss Leave a comment

Selling your home can be a daunting task, but there are a few things you can do to make the process easier and more successful. One of the most important things you can do is to stage your home properly. Staging is the process of preparing your home to sell by making it look its best. This can involve decluttering, cleaning, and making minor repairs. It can also involve rearranging furniture, adding new décor, and depersonalizing your space.

There are many benefits to staging your home. First, it can help you sell your home faster. Studies have shown that staged homes sell for an average of 7% more than unstaged homes. Second, staging can help you get a higher price for your home. Buyers are more likely to pay top dollar for a home that looks its best. Third, staging can help you avoid having to make major repairs. Buyers are more likely to overlook minor flaws in a staged home.

If you’re thinking about selling your home, here are a few tips for staging it properly.

1. Declutter

The first step to staging your home is to declutter. This means getting rid of anything that you don’t use or need. This includes furniture, appliances, décor, and personal belongings. The goal is to create a sense of spaciousness and airiness in your home.

2. Clean

Once you’ve decluttered, it’s time to clean. This means cleaning every nook and cranny of your home. This includes the floors, walls, ceilings, appliances, and windows. You should also make sure that your home smells fresh.

3. Make repairs

If there are any repairs that need to be made to your home, now is the time to do them. This includes fixing any cracks in the walls, repairing any leaky faucets, and painting any scuffed or faded walls.

4. Rearrange the furniture

Once your home is clean and repaired, it’s time to rearrange the furniture. The goal is to create a flow in your home and to make the most of the space. You may want to consider hiring a professional stager to help you with this.

5. Add new décor

If your home is looking a little bare, you can add some new décor to liven it up. This could include things like fresh flowers, new throw pillows, and artwork. You should avoid using too much décor, as this can make your home look cluttered.

6. De-personalize your space

When you’re selling your home, it’s important to depersonalize your space. This means removing any personal belongings, such as family photos, religious symbols, and political paraphernalia. You should also avoid using any strong scents, as these can be off-putting to buyers.

Additional Tips:

Hire a professional stager. A professional stager can help you declutter, clean, and rearrange your furniture to create a space that is both stylish and inviting.
Take good photos. High-quality photos are essential for attracting buyers to your listing. Make sure to take photos of all of the rooms in your home, as well as the exterior.
Price your home competitively. Buyers are more likely to make an offer on a home that is priced competitively. Do some research to find out what similar homes in your area have sold for.
Market your home. Once your home is staged and priced competitively, it’s time to start marketing it. You can list your home on real estate websites, put up signs in your yard, and tell your friends and family about it.

By following these tips, you can increase your chances of selling your home quickly and for a profit.

Is Real Estate The Right Career For You?

Posted on February 7, 2023 by Real Estate Like a Boss Leave a comment

Many people are attracted to the profession of realtor because they believe it brings easy money for them. There is no doubt that successful realtors earn a lot of money, but it is equally valid that their percentage is tiny, and they can make so much cash after having worked hard for many years.

Another category of people taking up the career of real estate is those who are lured by the prospect of flexible working hours and the opportunity of becoming their own boss. They see it as an escape route to get rid of their 9-5 office job and a chance to enjoy free time with their loved ones.

No matter how you look at the profession of a realtor, it is essential to look at yourself first before joining the bandwagon. Are you the right person to become a real estate agent? Let us find out in this article.

Do you have a likable personality?

Being a realtor involves working with not just the clients but also other realtors, brokers, lenders, contractors, and vendors. People who have a likable personality and who get along well with other people are more likely to succeed in this career.

Of course, you can do well even if you are an introvert, but you must learn to be comfortable in dealing with other individuals if you want to succeed as a realtor. You can easily fit in this profession if you are an extrovert and have an outgoing personality.

Are you motivated to be your own boss?

If you are excited about the prospect of being your own boss, real estate is a profession for you. Though most realtors start by working under an experienced realtor in the beginning, they ultimately set up their own independent business. You will enjoy the freedom that comes with being your own boss such as a flexible schedule and hours of work.

However, it also brings added responsibility of managing everything on your own. You must be ready to work according to the schedules and needs of your clients. It would be best if you also made efforts for marketing of your business such as socializing and spending time with prospects, understanding their needs and advising them on real estate decisions.

You must be ready to put in time at odd hours of the day and also weekends if you really want to be successful in this career. If you think you can manage all this, real estate is undoubtedly an excellent career for you.

Earning potential can be high, but you must be patient

There is no question that you can make a lot of money as a real estate agent. Only the sky is the limit for you as far as the money you can earn is concerned, but for that to happen, you need to be patient.

Many new realtors become frustrated when they do not see any money coming their way in the first 6-8 months of working as a real estate agent. To sustain as a realtor, you must be prepared to spend money from your own savings account in the initial period of the first few months.

If you think you can be patient and willing to work hard, this is undoubtedly a right career for you.

Do you have excellent communication skills?

Excellent communication skills are a significant prerequisite for being a real estate agent. You will find yourself talking directly to not just your clients but also the contractors, investors, lenders, brokers, and lawyers.

Your ability to develop strong and meaningful relationships with others will play a crucial role in ensuring your success as a real estate agent. Having a helpful personality and an attitude of gratitude will be very helpful in making you a favorite realtor.

You will be required to build contacts and maintain relationships with all your past, and present clients as most of the business in this profession come through referrals. This is possible only when you have excellent communications skills.

If you are a good listener and pay attention to the needs and requirements of your clients, you will be able to earn their trust and confidence.

Are you prepared to work hard?

Most people think there is easy money to be had by working as a realtor. Yes, you can earn a lot of money eventually but to get to that stage, you must work hard to develop your reputation as a knowledgeable, honest, and reliable realtor.

It takes time to build a positive image for yourself, and you must be ready to work hard. However, once you establish yourself as an experienced and reliable realtor, you will find that you start to get work easily through your referrals.

Do you enjoy marketing?

An important question to ask yourself is whether you love challenges or not. Of course, your knowledge of real estate is essential, but you will find that this profession throws new challenges at you now and then.

You must use your resources and your network of realtors and other professionals to overcome these challenges. Real estate is going to be an excellent career for you if you are not bothered by new problems and willing to take them in your stride.

Do you love challenges?

5 Reasons Why Realtors Fail In The First Year

Posted on January 18, 2023 by Real Estate Like a Boss Leave a comment

A real estate career can be one of the most rewarding jobs that you will ever have, but it won’t always be a walk in the park. Some of the reasons why a career in real estate is popular are its flexibility, potential to give you unlimited income, as well as the fact that you will be working with people from all types of background.

Many people rush to get their real estate license and become an agent without thinking things through. Their minds are so preoccupied with thoughts of grandeur that they get lost in a fantasy world. Within a year, reality kicks in and brings you back down to Earth. Some will be able to pick themselves back up and keep going, while others will give up.

In this article, we will concentrate on the reasons why real estate agents fail in the first year. We are not trying to sound pessimistic. Rather, we are aiming to help those venturing into this profession so that they will be better prepared to handle the obstacles that lie ahead.

1. Not Working Hard Enough

As the saying goings, “No pain, no gain.” If you are looking to be a successful real estate agent and avoid being just a mere statistic, be aware that we are told that a high percentage of people who start their businesses will not hit the one year mark as they will have given up.

You can avoid being among those who will close their doors if you work hard enough. Just like any other business, as a real estate agent, you will need put in long hours, leave late, and work on weekends and holidays to chase those deals.

It is not easy. If you come in with a mentality that this is easy, you will be disappointed. You will sweat, maybe cry, and will definitely get let down. Your social life may not be as active anymore. Most of your free time may be taken up by trying to drum up business.

However, at the end of the day, your hard work will eventually pay off and you will close deals. You will be able to wipe those tears and sweat off with your fat commission checks. I can tell you from personal experience that one of the greatest feelings you will have is holding your first commission check in your hand.

2. Doing It For The Wrong Reaons

“Everybody is doing it. Why don’t I try it.”

This may be the right attitude, but real estate is not a business that you venture into just because others are doing it. Also, getting involved for the purposes or making a killing will get you very disappointed.

This is a business that is started by those who are passionate about helping people invest or find properties they are looking for. You need to be driven by something more than just the commissions that will be earned.

This is what will motivate you to wake up every day, even when you do not feel like it. And if you ask around, you will have several of such days in your career. If you do it for the passion of helping people, you will not feel disappointed when a deal you are about to close is canceled. You will live to fight another day, and hope to get an even better deal.

3. Running Out Of Money

Like any other business, a real estate career does not promise a regular income. There will be really good months, where your commission check is so big you can live off of it for months. However, there will also be down days, where you will not take home anything. Moreover, if the market is terrible, then you may even go months without closing a deal. Most veterans of the real estate industry will tell you they’ve had to tap into their savings a couple of times to pay expenses when they first started.

I’m not going to sugarcoat it. You will have a lot of anxiety and frustration when you aren’t bringing in any income, and you are watching the expenses start to pile up. You may have to resort to borrowing money with your credit card, asking friends and family members for help, or using coupons to buy groceries.

It will take the average person about 3 months to 6 months to close their first deal. With this in mind, you should have enough saved up to hold you over in the beginning. This will help you sleep at night. Trust me.

4. Not Being Organized

As a real estate professional, there will be mounds and mounds of paperwork you will have to keep track of. There are contracts, expenses, financial statements, agreements, applications, etc… If you aren’t organized, you will be prone to not only losing important documents, which wastes a lot of time later on, but filling them out incorrectly as well.

To avoid this, set up a filing system that is labeled and organized clearly. Make sure that all documents that need to be updated on a regular basis are within arms reach. This will save you time and sets you apart from the other rookie real estate agents who are busy ruffling through their paperwork.

5. Not Being Fully Committed

In life, you get what you put in. Real estate is no different. If you get into this part-time, you will reap part-time results. If you are okay with that, then great.

However, if you want to be a top producer or just make this into a career, you will need to commit to this full-time. You need to be available for your clients, who will be calling you at odd hours of the day. If you are busy at another job and can’t take their call for a few hours, or even days, that will look bad. Your other employer will also not like that you are being distracted as well.

Real estate can be a cutthroat industry. You have to remember that you are going up against other real estate agents who are putting in 100% of their effort 100% of the time. In order to truly be successful in this profession, you will need to be 100% committed to working full-time as a real estate agent.

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