Even if you just work part-time as a real estate agent, you may still earn a high salary. Here’s how it works and what you’ll need to do in order to achieve your goals. In the United States, real estate is one of the country’s most significant sectors. In 2019, 5.34 million existing houses were sold, according to the National Association of Realtors. Real estate agents were engaged in the bulk of these transactions. A real estate agent or broker helped 89 percent of buyers and sellers in 2019.
How To Make Money As A Real Estate Agent? A real estate agent might be one of the most lucrative side businesses. People who work full-time or are parents can augment their income by selling real estate in their leisure time. This requires far less effort than starting a business. Find out what it takes to become a real estate agent, how much money you can expect to make, and some helpful hints.
Why working as a part-time real estate agent is an excellent side hustle
There are many people that work in real estate full time and earn a career doing so. That doesn’t imply you have to pursue it as a full-time job in order to make a decent living. As a part-time real estate agent, you can still make a respectable living wage. It’s one of the few well-paying part-time occupations around. In addition to spending time with friends and family, a couple of weekends of filming can also free up time for other responsibilities. Then there are methods to save, pay off debt, go on vacations, or spend money on other things.
There is work to be done before earning money, but it does not have to consume your entire life. Commissions, rather than hourly salaries, are how real estate brokers make their money. In order to earn more money as a real estate agent, one must understand how to utilize their time.
Real estate agents who work part-time might design a timetable that suits their individual needs. You may have to balance your full-time job or family life to make time for showings and client communications, but it’s up to you how much work you take on. A real estate agent can accomplish most of his or her job from the comfort of his or her own home, apart from showings.
Having a better grasp of your local home market is an added benefit. Whether you’re looking to purchase or sell your own house, invest in real estate, or serve as a resource for family and friends, you may benefit from this information.
What does it take to become a real estate agent?
To become a real estate agent, you’ll need to put in some time and money upfront. If you want to become a real estate agent, the following are the steps you need to take:
- Check with your state’s laws.
- Complete pre-licensing courses in the field of real estate
- Become a licensed real estate agent.
- Submit an application for a real estate broker’s license
- Build a customer base by promoting yourself.
Let’s take a closer look at each one of these processes.
1. Know the state requirements
To get started, look into the specific regulations of the state in which you hope to find employment. In some jurisdictions, a licensed broker is required to sponsor the application for an active license. Fingerprinting, a background check, educational requirements, and an exam are likely to be part of the process.
2. Complete real estate pre-licensing courses
Many pre-licensing courses are required to become a licensed real estate agent. Your education in real estate will be bolstered by these classes, which cover everything from best practices to regulations, contracts, and finance. The majority of states need a minimum of 60 credit hours of education.
Ohio’s current list of necessary real estate pre-licensing courses is as follows:
- Real Estate Principles and Practices for 40 hours
- Ohio Real Estate Law for 40 hours
- Real Estate Appraisal for 20 hours
- Real Estate Finance for 20 hours
Your state’s real estate commission can provide you with a list of courses that are approved by the commission. It is not usually necessary to attend these classes in person. Pre-licensing requirements in Texas, for example, include a number of online and mail courses. Pre-licensing classes can range widely in price, so do your homework and get the best deal.
3. Pass the real estate license exam
Take the real estate licensing test once you’ve finished all of the needed classes. The website of your state’s real estate commission has details about testing hours, locations, and expenses. To become a licensed real estate agent, you must pass both the state and national exams. The test usually takes around three hours to finish both parts.
Each time you take the exam, you will be charged a price. Each state has its own set of fees. To administer the exam, a third-party vendor charges $60 in Virginia, which covers both the state and national components. In Iowa, the test costs $90.
The number of times you can repeat the test is restricted in some states. To reapply for a license in Texas, you may be required to finish extra coursework.
4. Submit a real estate license application
You can become a licensed real estate agent after passing the state’s licensing test. There is a charge involved with obtaining a license, as there was previously. The charge for a salesperson’s license in New Jersey is $160, whereas the fee in Louisiana is $90. You’ll have to provide evidence that you’ve met the educational prerequisites and passed the licensure exam in your application.
For licensing in every state, a criminal background check is necessary, albeit the timing of when it’s required may vary slightly. Please add any background checks you’ve previously had conducted in the application process. Background checks usually come with an additional cost, which varies from state to state.
It might take anywhere from two to eight weeks to receive your license after you’ve completed the criteria and filed your application. You’ll be able to call yourself a real estate agent as of that moment.
The exam and licensing procedure vary from state to state, so it’s important to know what to expect. Before applying for a license in your state, familiarize yourself with its licensing requirements.
5. Market yourself and build a client base
The actual labor begins as soon as you become a licensed real estate agent. You must advertise yourself if you want to make money. You’ll want to hire a real estate broker as soon as you’re licensed in most states. Don’t allow the fact that some brokers are wary of dealing with part-time agents to dissuade you from pursuing a career in real estate. There has never been a greater number of people doing part-time employment as agents.
As a result of being a competent broker, you’ll have the leads and resources necessary to succeed. However, you’ll also have to spend money on your own marketing. Getting your name out there as a real estate agent may be done through advertising, social media, networking events, and even email marketing.
Real estate agents vs. Realtors
A real estate agent and a realtor are often used interchangeably, but there is one major distinction between them. A realtor is a member of the National Association of Realtors and a duly licensed real estate agent or broker.
In addition to paying dues, a realtor commits to adhere to the standards and ethics of the association. The ability to present oneself as an expert and win the trust of additional clients may be enhanced if you decide to become a realtor, however, it is not essential.
What does it take to be a successful real estate broker?
Real estate is a noble profession, but to make a living at it, you’ll need to excel as an agent. As a real estate agent, here are some best practices and recommendations to help you succeed and make more money:
- Be willing to change your mind. A career in real estate isn’t like a conventional 9-to-5 profession. Showings and meetings may be requested at night or on the weekends by clients. Being adaptable will increase your chances of meeting their wants and closing the transaction.
- Be on the lookout for possibilities to recommend others. A personal connection or a fortuitous meeting are both good sources of referrals. People who are in the market for a property or know someone who is are a great source of referral business for real estate agents.
- Improve your interpersonal abilities. As with any profession, the people you deal with play an equally important role in real estate. Develop your reputation as an excellent customer service representative and someone who can be counted on for honesty.
- Pay attention to those you’re trying to serve. There is no guarantee that every showing will result in a sale. Instead of relentlessly pursuing a transaction, put the needs of your consumers first.
- Take care of your job as if it were a business of your own. The vast majority of real estate agents are self-employed, rather than salaried employees. Real estate is a business, and you should treat it as such.
- Taxes should not be overlooked. Because you aren’t an employee, your broker won’t deduct taxes from your salary. As a result, you’ll have to deal with paying taxes on your side hustle as well as making projected tax payments to the Internal Revenue Service. These quarterly tax payments can be found on the IRS website or with a tax expert.
It is possible to deduct many work-related expenses, such as marketing, transportation costs, home office expenses, and more from real estate brokers’ taxes. Real estate transactions should be documented in great detail. Hiring a tax professional to assist you if you aren’t sure how to file your taxes is a good idea.