As we all know, real estate is an expensive field to enter into! Luckily, there are many ways to get started as a real estate agent while staying within budget. The most common way to start your career as a realtor is as a sales associate. This will likely not be your former career path, but it can still set you up for success if you’re willing to put in the effort.
As a sales associate, your goal will be to sell as much property as possible within a limited time frame. You will also need to keep the properties’ owners informed about potential offers so that they do not retain the services of other agents.
If you want to grow with us, then you must become familiar with the term “active listing.” An active listing is when one house or lot is listed for sale, and lots of people try to make an offer on it. If someone does manage to make an offer however, the sellers may choose to accept a lower price from another seller instead. This happens because they have accepted a lower price before, and now they feel like they cannot afford their own home anymore.
By accepting a low-ball offer, the sellers save money by paying less than what the homes market value is. They can then spend this money on something else – perhaps buying a new car!
This article will talk more about becoming an active listing professional, along with some helpful tips and things to look out for.
Low interest rates
With low interest rate policies of the major banks, there is an ever-increasing number of people that are offering loans to purchase a home. While this may seem like a good thing, it can also mean that there are more individuals trying to get a house loan than houses for them to buy!
Banks will only give you a mortgage if they feel that you can pay your monthly payments without being in debt. They will want to make sure that you can afford to live in your new home so that you do not go into debt beyond your means.
If you have received a lot of referrals from colleagues or members of communities that you belong to, then these professionals must believe that you will be a reliable income source after buying a house.
These lenders will work with you as long as you are able to prove that you have a steady job and enough money saved up to cover your next payment.
Technology has completely transformed the way we live, work and interact with each other. It is quickly becoming the go-to tool for everything from creating content to finding new jobs. Real estate is no exception!
With the ever-growing demand for homes across the country, it makes sense that real estate agents are experiencing a boom as well. Online tools have made it possible to offer your services virtually anywhere at any time.
You can create your own profile on all of the major real estate platforms (including Zillow, Redfin, RealtyTrac, etc.), manage your listings, respond to messages and perform basic tasks like closing documents and sending emails.
The one thing that many people don’t realize about online real estate agents is that they still must meet federal regulations regarding licensure, insurance, and moral integrity.
The current market
This year, there are an estimated 19 million licensed real estate agents in America. That’s more than one for every four households! And while that may sound like a lot of people, it is actually only about 5% fewer than in 2007, when there were 20.5 million.
Why the drop? Because not all states require licensing to be a professional Realtor. About half do! Plus, some states have limited licenses or no license at all for individuals. (They can still represent sellers or buyers but they cannot advertise themselves as being a broker or agent.)
And just because you want to call yourself a “realtor” doesn’t mean you are. In many states, anyone who represents either party in a sale or purchase is allowed to use that title.
There are many other reasons
As we continue to navigate our lives in this pandemic era, one of the main things that people are struggling with is how to find a real estate agent or even if they should hire one at all.
There you have it — why it’s important to be your own sales force when buying or selling a home.
Not only will having your own real estate agent help you feel more confident in the sale of your house, but it will also save you money in the long run. You don’t need to pay someone else to represent you!
And while there are an estimated 1.6 million active agents in the United States, not everyone needs their services. In fact, according to some estimates, over 70% of homes go unlisted and sellers who want to keep their houses off the market often times don’t need the service of a broker.
There will always be a need for agents
As more individuals choose to live online, there is an ever-shrinking demand for professional real estate agents that can meet at least half of this need. Online listing services have totally replaced having your house show up under market listings in magazines or newspapers.
Agent websites and apps now offer direct access to all of the listings you want by paying a monthly subscription fee. This removes one of the major reasons why people hire agents — they must advertise their property in various media to find a buyer.
With so many ways to search for a home directly from your phone, agents are being left in the dust when it comes to finding new clients. Technology has made it easy to look up homes even with no smartphone!
There are only two places where most people still need an agent – for very expensive homes and for sellers who do not use any online listing tools themselves. These are the same situations where agents make the biggest money years into the future.
Agents who specialize in these markets will still have work in the coming year. However, other areas of the industry should see a drop in business as technology takes over.
The industry is recovering
As we all know, real estate has been hit hard due to the spread of COVID-19. Luckily, this health crisis is drawing our attention to how big the real estate industry really is. There are over 2 million licensed agents in America!
That’s more than one agent for every 300 people in the country! It seems crazy that you can’t find someone who actually represents your best interest when buying or selling a home.
While some agents focus heavily on getting their sales quota each month, very few actually help you achieve YOUR goals. And unfortunately, there’s a reason most agents don’t work very well; they’re not necessarily trained in business skills like marketing, negotiation, etc.
So what about if you DON’T want to be stuck with an inexperienced broker? What if you wanted an agent who would put YOU first?
Well, you’re in luck because I’ve created an exclusive community of smart, informed real estate investors just like you! I’m investing my own money into creating this tool so it’s free for you.
You should become a licensed agent
Even if you don’t plan to be a millionaire, real estate is a great way to make money. But before you can start offering your services as an agent, you will have to get certified by either REI or The National Association of Realtors (NAR).
Both organizations offer licensing through their educational programs. Both require at least one year of pre-licensure studies and two years of practical experience under someone who has been approved as a professional agent.
After that, agents are allowed to use the designation “Realtor.” Only then can you take responsibility for other people’s properties and negotiate on their behalf. This is what makes it possible to earn a decent income from real estate.
But only those who pass both exams and go through all of the certification processes mentioned above can call themselves professionals and help others find homes and sell houses. What we recommend is to become a Licensed Agent with NAR first and then Certification.
There are many locations in the U.S.
Almost half of all real estate agents work for just one company, making it very difficult to find someone outside of the brand you choose to work with. This is not only expensive, but also potentially dangerous as there could be issues when you choose to buy or sell a home!
There are over 2 million licensed Realtors in the United States which makes sense since most people start their real estate career by getting their license before going into business for themselves.
However, only about 200,000 agents actually have their own broker’s licence, leaving more than 1 million professionals without this key credential.
Fortunately, there are ways to become an agent even if you don’t have your licence yet. By working as a consultant instead, you can still help sellers and buyers find a house they want and learn how to do it well.