Getting started in real estate isn’t always easy. As a first-year agent, you must learn to adapt to a variety of circumstances. Otherwise, you risk becoming a salesperson with little to no sales. While there is no foolproof method or model, busy agents share similar characteristics and procedures.

We’ve compiled a short list of quotes from professionals who share what they’ve witnessed or experienced during their real estate careers.

I think the perfect combination is an agent that can read an individual and adjust to that particular client. Being able to know your audience and adjust is crucial. For those that can’t pivot…..Join a team. Take your best feature and make yourself indispensable!! Are you a phenomenal writer? Then be the designated listings writer. Are you a fantastic negotiator? Then be the one to explain the numbers. etc. Play up your strength.

Sarah F. Bandy, The Lifestyle Group @Jason Mitchell Real Estate

[I] feel the most important personality trait is that the real estate agent/broker should be a creative problem solver. Every new day there might be a new challenge awaiting you, the problem that doesn’t have any straightforward answer or textbook solution.

Nathaniel Ramirez, Good Neighbor Home Buyer

A true producer will find, nurture, and convert leads into clients. If you do not naturally have these traits the real estate industry’s characteristically high attrition rate will be nipping at your heels. In order to avoid this, you can join a team as a buyer’s agent or assistant. Although you will not be working directly on your own business while being on a team the opportunity to learn proven systems will be at your fingertips.

Yannick Guillou, Mobile Bay Realtor

The most highly successful agents at our company are those who continually farm their local market by calling, emailing, and going door-to-door. At the end of the day, real estate is a sales job and it’s about numbers. The more phone calls you make and the more potential clients you connect with, the more business you will create.

Michele Harrington, First Team Real Estate | Christie’s International

[A] person who tends to be socially well-connected and adept at interpersonal communication is going to have an easier time jumping in. You can be gregarious and you can be hard hitting, but if you can’t be nice and you don’t seem to know what you’re doing, then people aren’t going to be drawn to you in an impactful manner.

Court Maynard, First Team Real Estate

Don’t focus on things that don’t get leads or appointments for potential business. Have the personality and mindset that will treat it like the business that it is, not a hobby. Another key factor is being humble enough to admit when you don’t know something but having the initiative and dependability to promptly find out the answers.

Donnie McGriff, Echo Properties, LLC

It doesn’t matter if you’re an introvert or extrovert as long as you can adapt to the character that your client needs. I find that some clients need talkative agents, especially if they want to learn more about real estate procedures, the property, and other processes. Other experienced customers would like intelligent insights, and some are not even too conversational. You have to gauge which personality your customer needs to give them the best experience.

Chris McGuire, Real Estate Exam Ninja

Probably one of the most obvious traits real estate people have is that we are detail-oriented. If we weren’t before, then we had to learn to be one. A single, small mistake can have gigantic repercussions, which is why we should be careful when it comes to details.

Kris Lippi, I Sold My House

In real estate, you are your own boss and rarely is anyone breathing down your back or managing you. That means there is no one to hold you accountable but yourself. You must be able to push yourself to get your work done every day and always be on the lookout for ways to improve and grow your business.

Richard Connelly, Connelly Team | Coldwell Banker

Are you a new real estate agent? Save money while you build your brand and client list. Check out Park My License℠ to become a referral agent.

Do you know someone who wants to “park” their license? Enroll in our affiliate commission program to earn $25 for agents who sign up for a paid membership.

Tips for New Real Estate Agents was originally published in Park My License℠ on Medium, where people are continuing the conversation by highlighting and responding to this story.

A lead reaches out to another agent, then the agent contacts you because they do not work in your area or work solely as a referral agent. They’re willing to pass on the client to you for a fee.

Why would you pay another agent 25% or more to get a new client?

• Without the referral, you would earn zero dollars. With the referral, you get an extra commission — even if it is smaller.
• It’s another form of ‘ad’ spend. Without leads, you can’t close on transactions, and with no deals, you make no money.
• You can build a long-term relationship with the client. Then you’ll get a chance to represent their family, friends, and colleagues.
• It’s a two-way street. When a client of yours wants to buy or sell property in another region, state, or country, it’s your opportunity to earn an agent referral fee.

Real estate professionals share their experiences with real estate referral fees, including how it helps advance their careers.

Finding clients is the #1 most difficult and time consuming part of an agent’s job and if you can outsource that for a 25% cut, it’s a no-brainer. Referral fees have easily the highest ROI (return on investment) of any type of marketing spend and agents should be thrilled to pay them. Imagine if you had an unlimited pool of referrals, all available for a 25% referral fee. You could stop doing anything but working with clients and closing transactions. Yes, your commission per transaction would go down 25% but the increase in the number of transactions would more than make up for it. You could also eliminate all other forms of advertising and marketing, saving you money elsewhere too.

James McGrath, Yoreevo, LLC

I’m not sure why any agent would ever turn down a referral. Sure, you don’t get as much money but it’s usually a client coming in from it of town that you would not have the opportunity to meet. Even though you don’t cash in big on this transaction, you’ll likely have them as a client to sell that house and buy another in the future. If you accept a referral, the other agent is depending on you to provide great service to their client. Their business reputation is still on the line and it’s your job to take great care of their people.

Tomas Satas, Windy City HomeBuyer

It helps me to increase my network and brings more business opportunities. Moreover, if the client is a first-time homebuyer, the lifetime value will be high. I would be prepared to pay more than average fees for such referrals.

Mitchell G. David, BeachLifeOceanCity.com

A percentage of a commission is always more than zero. I believe that taking in a referral is worth it for the experience and the fact that with that one new client will now turn into many, many more referrals for you.

Megan Gallagher, DEN Property Group

Referrals are probably the second best type of lead other than your own network. Referrals are much better than internet leads in terms of probability of closing with buyers or sellers. A cost per lead when advertising can cost hundreds to thousands of dollars. There is no guarantee that a lead will close from advertising but a referral is only paid out to the referrer if the buyer or seller closes.

Ed Frowley, We Buy Houses Western Mass

There are times when another agent has the skill set and expertise that you do not have, so I have referred that client to the person who can help them better than I can. I am so grateful to have agents that I have built a relationship. I feel good knowing that I provided the best service to the person.

Kristy Painter, Exp Realty

I like to always say that a percentage of any business, even if miniscule, is better than no business at all. Another positive reason to work referral leads is that when you provide the client amazing service, who are they going to think of when they need to buy or sell in the future?

Donnie McGriff, Echo Properties, LLC

If you’re getting a referral and have to pay a referral fee, then it’s completely worth it, because you’re establishing that you are a good agent in that area and more referrals will come your way. This is great Bread and Butter money!

Patricia Love, Sterling Johnston Real Estate

It’s better to take on a referral even if you have to pay a large referral fee because if the client enjoys working with you, they are likely to recommend you to their friends and family. Word of mouth is how most real estate agents grow their business so even if you only make a small profit on the referral transaction, it is likely that particular client will spread the word about you which will lead to additional transactions in the future.

Tyler Forte, Felix Homes

I gleefully offer and pay a 25% referral fee to agents inside and outside of the company. When you consider the prospecting efforts (translate: time) spent on cultivating a new client, this is a low price to pay for qualified business.

Aaron Weiner, Weiner Property

Are you ready to become a referral agent? Check out Park My License℠. You can pause your real estate career while still earning commissions.

Do you know someone who is ready to quit real estate or “park” their license temporarily? We pay $25 when they sign up for a paid membership. Enroll in our affiliate commission program to get your unique affiliate link.

How to Use Referral Fees for Lead Generation was originally published in Park My License℠ on Medium, where people are continuing the conversation by highlighting and responding to this story.

According to the National Association of Realtors, an agent’s median tenure at their brokerage firm is only five years (Source: nar.realtor, Quick Real Estate Statistics).

Why would a sales agent want or need to switch brokers? Let’s review some key factors.

Training

When you become a real estate agent, you need a lot of support to ensure a successful transition into the industry. “New agents likely put more emphasis on the training aspect, especially when choosing the brokerage to house their brand new real estate license,” explains Michael DiSchiavi of EXP Realty BKNY.

Although professional guidance is a crucial benefit for new or less experienced agents, it will become less critical. “As I started to get up to speed, the training opportunities dwindled,” says AJ Chinn of Phenomenal Homes with AJ Chinn | Platinum Realty, LLC. It becomes a challenging situation when the broker doesn’t offer fresh content for all experience levels.

Johnny Richardson of The Richardson Group at EXP Realty, LLC adds, “[i]t’s okay to make a switch in a real estate company, especially when you have met your max capacity, and you aren’t learning any more or adjusting to growing in the business.” Sometimes it’s no longer a good fit.

Compensation

As with any other job, you need to pay close attention to your compensation rate. While working under a broker, you won’t receive the full commission. So you’ll want to calculate your take-home pay to determine how much you can expect to earn.

Most agents share their revenue via a commission split, a transaction fee, a monthly desk fee — or all three. “Seasoned agents are much more likely to put emphasis on compensation (commission split, overrides for recruiting new agents, revenue share, etc),” DiSchiavi says. It’s one reason agents consider transferring their license.

Chinn describes his experience, ‘I was only taking home about 65% of the commission, and this started to add up quickly. Also, I was paying a rather large monthly “desk fee” that started to feel unwarranted especially when COVID hit and agents were no longer going into the office.’ Your business finances play an essential role in your decision-making.

Resources

Technology, marketing, and brand recognition are other aspects to consider when you choose a real estate brokerage.

User-friendly apps, IDX portals, and websites provide the best agent-client experience. You also want access to appealing marketing templates for business cards, postcards, and flyers. Established brokerages require their agents to use an approved kit for uniformity.

Brokers with brand recognition often get more leads as opposed to lesser-known brokerages. Like other industries, clients opt for highly reputable or recognizable service providers. While smaller brokerages may use low-cost models, they may not get the same volume of calls and emails from prospective leads. These are all factors to consider before hanging your license with a new broker.

Ready to end all the high fees as an active sales associate or broker associate? Go to Park My License℠ to take a “pause” from your real estate career. We offer our referral agents 90/10 commission splits and continuing education credit hours.

Not ready to park your license? Earn $25 when agents sign up for our paid membership. Join our affiliate commission program to get a unique affiliate link.

Why Do Real Estate Agents Switch Brokers? was originally published in Park My License℠ on Medium, where people are continuing the conversation by highlighting and responding to this story.

Entering the real estate field requires a long-term commitment.

1. First, you submit a sales associate application, which includes a background check and fingerprinting.
2. After the state’s approval, you may take the real estate exam.
3. Before you can schedule your exam appointment, you must complete the pre-licensing course using an approved education provider.
4. Upon passing the test and getting your real estate license, you need to finish a post-licensing course.
5. Then, you pay a renewal fee and complete continuing education annually or biennially.

Now that it’s over, the last thing on your mind is repeating the process to become a broker or broker associate. But after only a few years of experience as an active agent, you might qualify to take the broker’s exam.

What’s the difference between sales agent and broker?

Both real estate licenses allow you to help clients buy and sell property. One key difference between the two roles is that brokers can earn money on their transactions and get a slice of the agent’s transactions. With two sources of revenue, it allows them to boost their annual earnings.

Why would you want to upgrade your license?

To run a brokerage, enhance your skill set, get more leads, or better position yourself in the market. If you’re not ready to use the broker license, you can work under a real estate brokerage as a broker sales associate. Then you can continue focusing on sales rather than taking on the traditional responsibilities of being the boss.

How long should you wait to become a broker?

If you’ve met the minimum qualifications of your state’s licensing board, get it as soon as you can. Letting too much time pass after the initial exam could make it harder for you to ace the next one. Or you may get too busy to make time for it.

What are the pros and cons of getting the license?

Nearly every job has upsides and downsides. The best way to make an informed decision is to get different viewpoints — speak to your colleagues, do your research, and then decide what’s best for you.

Below is insight from a few agents who got their broker license.

Pursuing my Real Estate Broker’s License is one of the best decisions I’ve ever made. Upon becoming a Broker Associate, I instantly felt more confident and credible when advising clients (probably because I had more education and a better title), and in turn, that mindset has certainly led to more business opportunities coming my way. Being the Broker of Record comes with a tremendous amount of responsibility and liability that I’m just not ready to take on just yet. For now, I want to focus on selling and growing my brand with an eye towards becoming the best Broker I can be one day.

-Brian LeMay, Roman Realty Group, LLC

I upgraded my license as a way to differentiate myself from a standard salesperson’s license. It has not increased my volume, but it does provide a conversation piece on my qualifications over someone else. For me, it is a better business decision to let someone else handle all of the back end work that comes with running a brokerage while I focus on sales.

-Rick Albert, LAMERICA Real Estate

My biggest fear and reluctance to get my broker license originally, was concern of lawsuits and liability. I was afraid, like most agents, to become the “boss”. I left a major real estate firm to open up my own boutique real estate office shortly after obtaining the broker’s license and outgrowing my fear of the unknown. For me, the shift to broker was natural and much easier than I expected. You continue to work together in a team manner helping your co-worker although with the new setup you are actually their boss, broker of record or owner broker.

-Adrean J. Rudie, Rudie Home Loans

Looking for a real estate brokerage to “park” your license while you save up to become the Broker of Record for your company? Park My License℠ offers attractive commission splits, plus you get continuing education hours.

Not ready to park your license? Get $25 for agents who sign up for our paid membership. Join our affiliate commission program to get your unique affiliate link.

Is It Time to Upgrade Your License From a Sales Agent to a Real Estate Broker or Broker Associate? was originally published in Park My License℠ on Medium, where people are continuing the conversation by highlighting and responding to this story.

A real estate agent or broker’s life is not as glamorous as you might see on television. It’s a demanding line of work that doesn’t always lead to a hefty paycheck. Every real estate professional shares the same struggles, whether they have one or twenty years of experience. And most of these difficulties go unnoticed by clients who think an agent’s life is easy and profitable. We dive into the five most prevalent topics of an agent’s daily routine, as discussed by colleagues from across the spectrum.

1. Finding Clients

MYTH: Agents and brokers have a long line of clients waiting to buy or sell real estate.

REALITY: It takes hard work and sometimes years to build a steady flow of transactions.

[W]hen I first got licensed, I thought I would sit, wait for the sales to come in. I truly believed it was a passive type of income.

-Denise Supplee, Long & Foster

You need to attract clients in order to earn those lucrative commissions on transactions. A lot of newer agents expect to come in and start cashing commission checks right away but don’t realize that they need to be effectively marketing themselves everyday.

-AJ Chinn, Phenomenal Homes with AJ Chinn

This career is a daily grind and not a get-rich-quick situation.

-Su-Foun (Debbie) Liu, Atop Real Estate

When just starting, no one knows you are an agent….it can be extremely discouraging, hence why most agents quit during their first year. Most do not get their first client for at least six months to a year, if at all. We are in the information age, so finding newer ways like facebook ads, groups, instagram, google ads, starting a blog, etc. is a must.

-Ed Wheeler, Iron Valley Real Estate

To be successful, agents/REALTORs have to have a constant stream of up-and-coming buyers and sellers. Examples of lead generation include building an online presence, managing lead response and follow-up, maintaining a CRM system, planning and budgeting for marketing.

-Jen Stark, JASP Real Estate LLC

This could mean cold calling, putting together mailings, and hounding your family and friends to buy a property. While commissions for real estate are great, you only get out of it what you put in. If you don’t put in the marketing/lead generation, you won’t make any money.

-Ryan Whitcher, Harmony Home Buyers

It takes about 10 years to build a solid real estate business, but once you do that, it will pay for your lifestyle for the rest of your life.

-Michele Harrington, First Team Real Estate | Christie’s International

2. Work-Life Balance

MYTH: Agents work whenever they want.

REALITY: Not exactly. Pros must be available at a moment’s notice to make a living wage.

Most successful agents work well over 40 hrs per week and most of their work is done in the background.

-Ed Wheeler, Iron Valley Real Estate

There are no “set hours” for Realtors. We work nights, weekends, holidays, bad weather, good weather, during their kids sports games etc.

-David Nations, The Nations Network — powered by Keller Williams Realty

The most difficult thing about being a real estate agent is that you have to be available twenty-four hours a day, seven days a week. If you want that commission, you have to be available when the client wants you. That means; if a client is ready to put an offer on a property on Friday night and you have dinner reservations guess what you’ll be doing? Putting together the contracts and catching everyone for dessert. Granted, this doesn’t happen often, but it can happen, and you have to be ready for it.

-Ryan Whitcher, Harmony Home Buyers

We have to balance our work with our lives, and it can be hard, especially because buyers (and sellers) are VERY invested in the process emotionally and financially. Clients often want us to respond immediately and don’t understand if we don’t answer their questions during our “off” hours.

-Tony Mariotti, Ruby Home

We work around the clock. Clients don’t know that we work until late in the night and get up early to negotiate, research, and keep deals from falling apart.

-Brad Pauly, Pauly Presley Realty

Now that our day in the office is over, most people would believe we get to go home to our families. They would be wrong. Now it’s updating websites, blogging, working on our Social Media Presence.

-Eric Nerhood, Premier Property Buyers

As a real estate agent, sometimes it can feel like days never end and just merge together. On one hand you have banks, title companies, and other professionals that stick to a 9–5, M-F, work day, and on the other hand you have a real estate industry that is pretty much working 24/7/365.

-Al Wisnefske, Land & Legacy Group

3. Maintaining Client Relationships

MYTH: Anyone can do an agent’s job.

REALITY: Not everyone can deliver exceptional customer service. Most real estate pros spend countless hours on lesser-known tasks to keep their client happy and satisfied.

Going the extra mile is vital in this business and is why clients refer me to their friends and family. For instance, recently a condo was going to market and when I arrived to let the photographer in, the cleaning wasn’t ideal, so I always have wipes, paper towel and cleaning supplies and took 20 mins to get it in top shape.

-Nick J. Kyte, Coldwell Banker | First Ottawa Realty

There are literally hundreds of steps taken by real estate agents. The tasks run from helping to clean out someone’s home to minor repairs (I always keep a set of tools in my car) to taking out the trash and stashing laundry before a showing. I’ve made beds, cleaned up bathrooms, cleaned trash from around the outside of a house, cleaned the kitchen sink, etc.

-Jamie Grossman, Gibson Sotheby’s International Realty

*Making sure that all walkways and driveways are free and clear of ice

*Cleaning up homes, making beds, cleaning dog poop prior to a showing

*Staging a home myself with the storage room of items I have personally from Home Goods

-Ellen Schwartz, Compass

There are so many different hats that one must wear as an agent. You are a taxi driver as you drive all over town many days to show properties. You are a clerical expert as you write up various contracts and offers for your clients. You are an educator as you are continually teaching your clients about real estate and the processes of buying and selling. You are a therapist to your clients as you ease their anxieties and concerns throughout buying or selling. You are a liaison as you facilitate a smooth transaction between your client and another agent’s client.

-AJ Chinn, Phenomenal Homes with AJ Chinn

Over the course of my career, I have discovered that no two transactions are ever the same. There are some that seem to coast along the “normal” course of a transaction while others may have some bumps along the way. Navigating each client through their process is truly a skill that constantly and consistently needs to be honed and perfected.

-David Zeff, Allan Prigal and Associates | RE/MAX Realty Group

Client happiness and satisfaction are such an important aspect of the process and outcome, which in turn sometimes requires me to continue work well into the evening, doing comps, finding new and ideal properties, negotiating, ensuring inspections are smooth and up to the standard, communicate with the many players involved in the transaction, and ultimately close any loops.

-Su-Foun (Debbie) Liu, Atop Real Estate

4. Closing the Deal

MYTH: Real estate agents hand off the file once you sign on the dotted line.

REALITY: Nope. In most cases, they keep the transaction moving, so their job has only begun.

One of the biggest myths about what real estate agents do is that they only put a sign in the yard and locate a home buyer.

-Jason Gelios, It’s All About The Real Estate

There are many pieces to a sale. There are inspections, appraisals, mortgage commitments and much more. If you drop the ball on one, it could literally break a sale. Not to mention the hours of texts and calls with vendors and nervous clients.

-Denise Supplee, Long & Foster

There are over 180 tasks from start to finish to list a property. If you are a solo agent or on a team these tasks need to be completed for every listing.

-David Nations, The Nations Network — powered by Keller Williams Realty

When purchasing, during due diligence, we are constantly communicating with lenders, attorneys, inspectors, other agents, and our clients to keep all in order. When selling your home, quality agents have an in depth marketing, advertising, and sales strategy that goes into the sale of your home.

-Will Hedrick, Speek Real Estate

I like to compare my job to a conductor of an orchestra. We spend hours on the phone with title companies, lenders, other agents, contractors, inspectors, and our clients making sure that everything works in harmony. We are the glue that keeps all parties informed, working together, and happy.

-Brad Pauly, Pauly Presley Realty

[I]t takes numerous phone calls, text messages, emails and sometimes taking days to coordinate.

-Veronika Badzgon, Century 21 PowerRealty.ca

5. Commissions & Fees

MYTH: Agents make a lot of money on the commission.

REALITY: Not always. As independent contractors, agents juggle many expenses.

If I work with sellers and they do not sell their home, all my expenses are out of my own pocket and I do not get paid.

-Veronika Badzgon, Century 21 PowerRealty.ca

We live client to client and since we don’t get paid unless a client closes on the purchase or sale of their property, we can find ourselves doing work for someone up to 60 or 90 days only to not have it close and earn an income.

-Alex Young, Keller Williams Green Bay

As a real estate agent you only get paid if the transaction closes. You could show a hundred homes to a client, make offers but not close, and real estate agents would make nothing.

-Ed Frowley, We Buy Houses In Western Mass

It is very common for clients to change their minds after they have been working with an agent and no longer buy/sell a property.

-Bill Samuel, Blue Ladder Development

I get to work with clients to understand their desires and pull together a strategic plan. I work with some folks for years until they are ready to pull the trigger seeing dozens of homes.

-Kristen Stuecher, Compass

The commissions may seem big, but remember that the 5–6% commission is split between the Buying agent company and the Selling agent company. Then each company takes fees off the top and the agent gets their split. It can take months of showings to get a sale. I just showed one couple over 50 homes before they found the perfect place.

-Jamie Grossman, Gibson Sotheby’s International Realty

The commission is also typically misunderstood. Many people think the agent gets paid 6% (avg commission in our area). What they don’t realize is that we split that commission (3%) with a co-broker who most likely brings the buyer and both agents have a split with their brokers. The agent also pays to market the house and needs to pay taxes so after everything is all completed the agent probably really nets 1% of the commission for all the time and effort they are putting into helping someone buy or sell a home.

-David Nations, The Nations Network — powered by Keller Williams Realty

Real estate agents are independent contractors so any expenses they incur on the job they have to pay for out of pocket. Overall the commission an agent receives from one successful transaction may seem high however it doesn’t take into account all of the other time the agent spent working on failed transactions they spent their time and money on.

-Bill Samuel, Blue Ladder Development

[T]here are MLS fees, website fees, Realtor fees if applicable, continuing education fees, and of course all of the advertising expenses.

-Ed Wheeler, Iron Valley Real Estate

A real estate agent will also foot the bill for services — like professional photography and advertising — that would otherwise fall on the seller.

-Tyler Forte, Felix Homes

Are you a licensed real estate agent or broker associate and ready to “park” your license? We help you pause your career while you regroup, save money, and come back stronger. All while earning referral commissions. Go to our website for more information about our membership.

Not ready to park your license? Get $25 for every referred agent who signs up for our paid membership. Join our affiliate commission program to get your unique affiliate link.

A Day in the Life of a Real Estate Agent: The Underappreciated Facets was originally published in Park My License℠ on Medium, where people are continuing the conversation by highlighting and responding to this story.