Your First Year in Real Estate Sales

I started my real estate career in 2001 with little more than $2000 in my bank account and a whole lot of ambition. Good thing I had that drive to succeed. It helped me a lot! I learned quite a bit about what to do and, more importantly, what not do to "make it" in the business. It is often said that only 1 out of 3 new real estate agents will make it their first year. I've found that to be quite true.

Contrary to popular belief, I believe it's actually a very good time to start a career in real estate. Of course, the market is down. However, by starting in a down market, you have the assurance of knowing that it can only get better. And if you can make it in a down market, you can certainly make it in a growth market. Many people choose to start a career in real estate part time. That way, you can keep your day job and segue into full-time work once you have built up your business and established a clientele. Give it 3 - 6 months before going full time.

I'll skip the obvious things like getting your real estate license. Every state is different, so check your state's department of real estate for the requirements.

That being said, here are my tips for your first year in the business:

1) Have some reserves in your bank account

Unlike how I started out, I would not recommend starting out if you only have $2000 in the bank. Try to have at least 6 months in reserves. This will give you some breathing room. If you have some breathing room to start out, without adding the financial stress to it, you will be much more likely to succeed. Real estate is a 100% commission-based business. There is no salary. No benefits. You will be self-employed with a sponsoring broker (i.e., where you 'hang' your license).

2) Interview a few brokers

This is important. The first broker I worked with, I went there because I had a friend working there. But, the company wasn't very focused on continued training and development. Things that were important to me as a new agent. So, after about 6 months, I switched brokers. And, I'm happy to say, I still work with the same brokerage firm.

3) Find your niche

What type of homes or areas appeal to you? Too many agents try to be everything to everyone. While it's great to be 'hungry' for the work, it will be to your benefit if you can be an area or niche specialist. If the area you live in is not already overly-saturated with agents already "farming" the area, the most logical place to start is where you live. Homeowners like to list with someone who lives in and knows the community well. If the area you live in already has a well-established agent (or two or three!), it can be very difficult to try to compete with the already-established agents. I'd recommend finding another neighborhood nearby that isn't already tapped out.

There are ways other than becoming a neighborhood specialist to find your niche. Personally, my niche was first-time buyers. I was 28 when I started selling real estate, and I found that by working with buyers who were around my age, it created a sense of ease. They were able to relate with me and vice-versa. Plus, these first-time buyers eventually become first-time sellers and move-up buyers. Its built-in business for years to come!

4) Marketing your business

Don't forget, this is your business. It isn't just a sales job. Don't make the mistake of thinking that your broker will be giving you sales leads. You must be prepared to prospects for clients, which means having a marketing plan. Again, many new agents try too hard to do it all. Believe me, you will go flat-broke if you try every type of marketing available. I tried the "throw it on the wall and see if it sticks" approach. And what I found is that I wasted a lot of time and money. I was doing postcards, farming, working FSBOs and expired listings, online lead generation programs. You name it, I tried it!

What I learned is that, you need to focus on three primary forms of marketing and put your time, money and focus into making those things work. A Website is a must in this day and age. You must have an online marketing component to your business and build an online presence in your market area. Additionally, focus on what interests you and works well for you. For example, if you're not a phone person and don't enjoy making cold calls, while that it is a very cost-effective way to get things started, you are probably not going to be very successful at it if you do not like doing it.

Open houses are another extremely cost-effective way to meet new clients. As a new agent, you may not have a lot of listings. However, there are probably many agents in your office who will allow you to hold their listings open. Book your Sundays with open houses and you will surely meet new buyer prospects!

And of course, be sure to work your Sphere of Influence (SOI). This is friends, family, co-workers, your hairdresser, the postman, basically anyone you know. Let them know you're in real estate. Keeping in touch with and working these contacts will really help as you start building your clientele.

Overall, stay positive. Stay focused. If you can make it through your first year in the business, you will be well on your way toward a successful career!