A licensed real estate agent connects buyers and sellers for transactions and represents them in legal negotiations. Generally, agents are compensated through commission, which is a percentage of the sale of the house. The percentage agents receive depends on their state and brokerage. A brokerage is the managing house for agents, allowing the agents to use the company branding, connections, and legal team. If you’re interested in a career in real estate, read our post on top Los Angeles real estate agents.
Managing Your Real Estate Business
There are several administrative tasks a real estate agent does at a well-run real estate business. An excellent real estate agent:
- Keeps up with local and regional market activity and industry news
- Researches active, pending, and sold listings and reviews the daily MLS hot sheet or activity report
- Completes, submits, and files real estate documents, agreements, and records with the proper state agencies
- Plans and coordinates appointments, open houses, showings, and meetings with clients and other real estate agents
- Develops real estate marketing plans for listings and creates fliers, newsletters, and other promotional collateral
- Responds to incoming emails and phone calls
- Update websites, social media profiles, and blogs
Many successful real estate agents have an assistant or office manager to help with the day-to-day activities, allowing the salesperson or broker to focus on more direct revenue-generating activities.
What Does a Real Estate Company Do?
A Real estate companies Near ME can either be a property management group or a brokerage. A property management company buys commercial properties and turns them into apartments or townhomes. This work is all internal, corporate, or onsite at the property, not always buying or selling a property. On the other hand, an agent at a brokerage helps clients buy or sell a home while following the brokerage’s branding. In addition, the agent gains access to the brokerage’s resources, such as legal help and backend technical aspects of a sale.
You’re Not Just Selling Homes; You’re Selling Yourself.
Attracting clients is crucial to a real estate agent’s success. Below are some tips to attracting new clients:
- Market yourself. Competition is fierce. You need to develop your personal brand in real estate and be known as an expert in the specialization you enjoy. This will help you differentiate through effective marketing. Websites, postcards, television and radio spots, billboards, fliers, and blogs are all channels that can be utilized in effective real estate agent marketing plans.
- Lead generation. Generate leads through networking and relationship development. This starts with people you know, such as friends, family, business associates, and so on. There is little more valuable to a real estate agent than a thriving database of leads.
- Everyone is a prospect. Everyone you meet is a prospective client because most people either rent, buy, or sell a home at some point in their life. A real estate agent’s day is often consumed by cultivating leads and meeting and following up with potential buyers and sellers.
How Much Do Real Estate Agents Make?
As in any career, compensation or salary can differ between positions or even for the same position—the same is true for real estate agents. According to Andrew DePierto of Forbes magazine, on average, a real estate agent in 2019 was making $41,200 annually. However, in 2019, the demand was extremely low for moving. It wasn’t until after the pandemic’s effects subsided that the housing market took off. According to Indeed, the average established agent’s salary is $86,000 as of March 2021. Learn more about how much a real estate agent makes.
Remember, a real estate agent’s income is not limited by an hourly wage or a corporate-dictated salary range. As a real estate salesperson, your income is primarily dictated by the time you invest, how hard you work, and ultimately how many houses you sell. You can grow your real estate business (at your own pace) by adding an assistant or getting the appropriate license that allows you to build and own a brokerage.