Becoming a Real Estate Agent. Wendy Boone's Patton

      Becoming a Real Estate Agent

      by

      Wendy Patton

      Copyright 2012 Wendy Patton,

      All rights reserved.

      Published in eBook format by eBookIt.com

       http://www.eBookIt.com

      ISBN-13: 978-1-4566-0868-2

      No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems, without permission in writing from the author. The only exception is by a reviewer, who may quote short excerpts in a review.

      Introduction

      So, you are thinking about becoming a real estate agent? This eBook will give you a good understanding of all the basics and point you in the right direction to becoming a licensed real estate agent.

      Your reasons for wanting to become a real estate agent may vary. You may need extra income or want a career that allows you flexibility. You may want to learn how to invest in real estate or may have a passion for real estate, sales, or people. Whatever your reason, this book will put you on the right track to success as a real estate agent.

      For me, I became a licensed real estate agent in 1986. I had started to invest in real estate and realized that I had to rely on a real estate agent to get me in to see the properties I was interested in purchasing. Then I had to get comparable sales information from the real estate agent to see what properties in the area were selling for. After I purchased my first several homes, I decided that I did not want to wait for, or rely on, a real estate agent to buy and sell my own properties. I decided becoming a real estate agent was going to be the key to my success as a real estate investor.

      I hope you enjoy this eBook, no matter what your reason is for becoming a licensed real estate agent.

      To your Success!

      Wendy Patton

       www.wendypatton.com

      What to expect as a real estate agent

      The real estate business can be very profitable. In a short period of time, you can be earning your way to success. In order to obtain a license, you can take courses online, via correspondence or at a local real estate school. The courses must be accredited by the state in which the license is granted.

      Practically anyone can become a real estate agent. If you are outgoing, you may be more ideally suited for real estate. Being a real estate agent involves meeting people, interacting and building relationships.

      Things to be aware of

      •Real estate agents often work evenings and weekends when home sellers and buyers are usually available.

      •Although the hours may be long and irregular, most agents have the freedom to determine their own schedule.

      •Although getting licensed may be relatively easy, beginning agents often face competition from experienced agents.

      •Real estate is subject to economic conditions and factors such as interest rates. During economic decline, real estate activity and demand for real estate agents may fall.

      •Real estate agents need to be sensitive to the fact that the purchase or sale of a home or investment property is one of the most complex and significant financial events in peoples’ lives. Consequently, patience is often required when dealing with people in this circumstance.

      •Real estate is sold in all areas, but is concentrated in large urban areas and in rapidly growing communities.

      •Most real estate firms are small - many are one-person offices. Some large real estate firms have several hundred agents operating out of numerous branch offices. Many brokers have franchise agreements with national or regional real estate organizations.

      •Ambitious people who enjoy selling, especially those with extensive social and business connections in their communities have the best chance for success.

      Typical real estate agent activities

      •Agents spend a significant amount of time prospecting and marketing themselves as well as looking for properties to buy or sell.

      •When agents obtain listing agreements with sellers, they must compare the listed property with similar properties that recently sold to determine a competitive market price for the property.

      •Before showing properties to potential buyers, agents should meet with them to assess their needs and get an idea of the type of home the buyers would like, and how much they can afford to spend.

      •Agents commonly spend time working out details of agreements between buyers and sellers and assisting them in the negotiation process.

      •Agents also follow up on terms of the purchase agreements such as financing, inspections and other documentation as needed.

      •Technological advances allow many real estate agents to work out of their homes instead of real estate offices, however, they spend much of their time away from their desks - showing properties, meeting prospective or existing clients and customers.

      •Many real estate brokers and sales agents work part time and combine their real estate activities with other careers.

      Getting paid on commission

      Commissions on sales are the main source of earnings for real estate agents and brokers. Brokers determine how much their commission will be for the sale of listed properties. It can be any amount determined by the broker but usually is a percentage (often 3-10%) of the sale price of the property. The percentage paid on the sale of farm and commercial properties or vacant land is typically higher than the percentage paid for selling a home.

      Upon the closing of property sales, commissions are paid to the listing broker, who in turn, pays a predetermined portion of the commission to the agent who lists the property (brings the seller) and a portion to the broker/agent who sells the property (brings the buyer). There are numerous types of arrangements that can be made so commissions may be divided among several brokers and agents.

      An agent's income usually increases with experience, but individual motivation, economic conditions, and the local market area are all determining factors to success. Agents who are active in community organizations and in local real estate associations can broaden their contacts and increase their income. A new agent's earnings often are irregular because a few weeks or even months may go by without a sale. Therefore, new agents should have enough funds available or additional income to live on until sales increase.