Succeeding in Real Estate
As with any new skill, practice makes perfect.
As a new REALTOR® you will need to “learn the ropes.” This means gathering as much knowledge as you can from your brokerage and your real estate classes. The most successful real estate agents usually have a coach or mentor who helps them reach their goals. Your broker should be willing to provide you with the constant support you will need in the beginning. So choose your brokerage carefully. Keller Williams is the number one real estate company in the U.S. and there is a reason we are #1. We provide tons of resources and world class technology tools for new agents. No other brokerage can compete with what KW offers its agents.
Ultimately, your success is in your hands. If you do the work, you will reap the benefits of your labor.
Working with Buyers vs. Sellers
There are two sides of a residential real estate transaction — the buyer side and the seller side. Nearly all real estate transactions have two agents, one representing the buyer and one representing the seller. While you can represent both, called Dual Agency, most brokerages do not allow it and some states forbid dual agency as well.
Working with buyers vs. sellers are very different experiences. If you love working with people, enjoy touring homes, like to get out of the house, and have a lot of patience, you may be a great Buyer's Agent. When working with buyers, an agent needs to be flexible, available, and patient. It can take 10 or even 20 or more home tours before your client finds one they fall in love with. While this can seem like a lot, it also gives new agents the opportunity to learn and grow.
Working with a homeowner who wants to sell their home requires a different set of skills. You'll need to be able to effectively market their home including holding open houses, broker's open houses, and promoting their home online. You will also need to be able to pull market comparables to help the owner determine how much their home is worth.
Lead Generation
Most real estate agents would agree that the most challenging part about being a REALTOR® — at least in the first year — is lead generation. Where do you get your clients from?
New agents usually expect their family and friends to support their new career. However, you may find this not to be the case. Most people who are looking to buy or sell want an experienced agent. Think of other creative ways to generate leads:
- Your neighborhood, church, and people you see regularly at frequently visited retail establishments and restaurants
- Door knocking (still very effective — check the do not knock registry first)
- Farming (targeting a specific neighborhood)
- Facebook advertising (affordable)
- Flea markets and other community events
- Sponsor an information workshop
How Much Does a REALTOR® Make?
Real estate commission is a percentage of the sale price of the home. Most of the time, the commission paid on your side of the transaction is 3% of the first $100k and then 2% thereafter. But that doesn't all go into your pocket — you will share your commission with your broker.
Keller Williams has a few options, with the most traditional split being 70% to the agent / 30% to the broker. You can also choose the 80% plan. And if your sales are high enough, you can earn 100% of your commission.
Example: Home sells for $200,000 → Commission = $5,000 → Your 70% = $3,500 → After 6% KW royalty = ~$3,200
After KW receives $18,000 from you in a year, you have “capped” and now earn 100% of your commission for the rest of the year!
How To Get Started
First things first — you have to take the necessary classes to sit for your real estate exam. Most people take their classes at Hondros College. Hondros also has a great crammer course to prepare you to pass your State exam!
Before signing up for your classes, read over the Licensing Requirements page to see what all is required to become a REALTOR® in Ohio. One of the things you will see is that you have to choose your broker before sitting for your exam.
Good luck in your new career!
