how to become a real estate agent
 

Just wondering if anyone here is a real estate agent and could give me some info and advice on how to get started in this career path.

A list of the pros and cons of the job would be great too.

Thanks so much.

I have a question regarding real estate as well. Sorry to hi jack thread but an older family member i know is a very talkative/networking person and EVERYONE suggested to her that she should be a real estate agent. Is it true that you have to pass high school in order to be a top agent?? My family member unfortunately did not pass high school in the early 2000's lol

Just need to take the real estate course @ UBC and pass the exam.
There's a book of ~1000 possible questions but if you know it inside and out you'll pass the exam (according to my gf)

Real Estate Division | Sauder School of Business at UBC, Vancouver, Canada | Sauder School of Business at UBC, Vancouver, Canada

Super competitive field + monthly dues aren't exactly cheap either
You only make money if you sell houses, its 100% commission based and the buyer's agent and the sellers agent usually split the commission. Commission varies but can be anywhere from $2000 to upwards of $50,000 on a single sale. Commission is usually structured around selling price i.e. 3.5-7% first $100,000, 1-3% remainder

Lots of websites like this popping up:
http://oneflatfee.ca/

^ This guy is hated by a lot of real estates because he lists properties onto MLS for next to nothing lol.
Once your house is listed on MLS any real estate can view it and show it to his/her clients

There are over 16,000 realtors in Vancouver alone and only 10% of them make a decent and very comfortable living.

I have been in real estate during my first year in post secondary (06) and it has been tough to say the least, but compared to others it hasn't been that bad ONLY because I had help from my dad. At first I worked in presales (Sales Centre rep) which wasn't bad at all (my fave actually) and then made the switch to REsale in 2010 as my dad is slowly retiring. So many realtors get into the business thinking it's going to be easy and they're going to make millions. WRONG.

They say over 50% of realtors in their first year drop out of the business or have to find a 2nd or 3rd job to make ends meet. THis job is costly with the amount of money you have to drop for the following:

-Hanging your license with a brokerage
-Paying your licensing fee with the board
-Advertising to break your name onto the scene which could take a long time
-Time and effort to land your first sale which could take months

IF you're a new realtor, feel lucky if you even make 2-3 sales in a year.

Now back to my dad for second. THe reason I said he was a major help to me and my business is because he has been in the business himself for a long time. For the first 18 years of my life..I barely saw my dad because he was always out there working his ass off. My childhood wasn't rough but I know we struggled at times with our finances at home. His work ethic and patience was what made him successful in the long run and now my parents (here comes the pros) take vacations every 3 months at a month at a time, is putting my brother through med school, is able to support my niece with private school and all her needs because her parents are a mess, and just PROVIDE for their children. But granted, this took 18 years to build. 18 HARD EFFING YEARS TO GET TO WHERE HE IS TODAY. (I have so much respect and love for my dad and what he did for us :) )

Now he's in the top 1% of realtors in Vancouver and he was a sales rep as well for Concord Pacific and basically sold the whole YT/False Creek area since 2000. Because he is well known and has housed so many clients I get to meet these past clients and start a relationship with them so when my dad bows out completely..I can take over while I am still learning from him to gain my own clients as well.

It is hard. SO FUCKING HARD. If you're not up for the challenge and patience..this job will not be for you. I'm not trying to discourage you or anything but it pains me to see people get into this business with such ill-realistic ideas, drop a ton of money, and have it not work out.

However, if Real Estate is something you REALLY do have an interest for..I'd suggest perhaps teaming up with a top producer in the office. Whether it's to be their assistant or someone who helps them hold open houses on the weekends..it can help you a lot. Learning from someone who has been in the business and done well can be a huge stepping stone in your RE career.

And yes to the 1000 questions book. If you do those questions front to back a few times..you'll pass the test with flying colours. Trust me. This is what I did.

And now to the commissions. Typically it is:

Listing COmmission (Sellers Agent): 7% on the first $100,000 and 2.5% on the balance
Selling Commission (Buyers Agent): 3.2% on the first $100,000 and 1.15% on the balance
(The selling commission can differ depending on the agent but the listing commission is standard at most agencies)

Now, if you are able to sell the property as both the sellers and buyers agent, you take the full 7% on the first $100,000 and 2.5% on the balance. But majority of the time you will probably have to split your commissions with an outside agent.

THen don't forget that your commission split will also have to be split with the OFFICE. Usually it's 60/40 but if you're a high grossing realtor you can probably get 95/5 or 90/10 split with your office. It just depends.

OH and 1 more thing, TAXES!! Because we are our own "bosses" you have to pay your GST every few months as the office won't subtract it from your pay. So you can't dip into those funds as they are technically not yours.

All in all, I wish you the best of luck and really take the time to think it over. If you have a job right now I'd suggest keeping it as a steady paychq will help LOADS if you do decide to take Real Estate to the next level.

If you have any questions let me know!

Actually, 1st year Realtors have a dropout rate north of 80%, 2nd year another 80%. If you've been in the business for at least 5 or more years you are probably doing at worst alright. If that doesn't scare you off, consider Crayon's testimony.

If you don't want to jump in to this industry with both feet, start out working with a developer/project marketer in a pre-sales presentation centre or as an unlicensed assistant on a wage/salary, notably the latter. I've found that many people find out that the business does not work for them after doing the grunt work for a producing agent.

It's also one of the few industries out there where hard work does not necessarily equate to anything but you can also hit a streak of doing little work and reap the rewards. The industry is evolving and the general public is ultra savvy these days so your ability to build and retain good relationships is vital for long-term survival.

Be prepared to have some readily available money set aside for licensing courses, exam, the license itself and 6mos-1yr worth of living expenses: you will unlikely do any deals in your first 6 months unless you have family or friends as clients.

Also make sure you change your Facebook education status to state you went to UBC Sauder Business school after you finish your course.
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I wish I could thank you a million times

You need to ask yourself this question. WHERE DO YOU FIND YOUR CUSTOMERS?

oh, can't you just find all those foreign investors from Asia??? sureeee of course you can. but where????? this is what people keep asking and wonder. It mingling, taking clients out, outgoing ain't your shit, then you ain't going to be able to make it. People ain't just going to call you out of the blue asking you to buy a 2.6 million dollar house or looking for a million dollar condo in Richmond.

OH... when I have ads in the newspaper, they will call me. SURE. That's a great idea. but what are you going to put in your own news ad when you have NO listings. That's the most common misconception about inbound leads. Business has to come somewhere.

For those who don't understand, aside from your normal monthly LIVING expenses, your monthly ads in the newspaper,
and fees you pay to your office are not cheap.

The money is not bad, but my buddy works crazy long hours.
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You have to be a people person, think on the spot, able to put up BS with a smile, work crazy hours, always networking, and always have a mindset to keep climbing up up and up.