7 Tips for Making Money as a Real Estate Agent

By definition, real estate agents are licensed professionals who represent buyers or sellers in real estate transactions. They also carry out negotiations and arrange for sales under the supervision of a real estate broker. Though a time-consuming profession that requires complete dedication, a career as a real estate agent can be very rewarding.

Plus, as the world’s population continues to rise, so does the demand for housing and accommodation. More people want to rent houses and buy property, while an even more significant number want to invest in real estate.

Here are seven tips for making money as a real estate agent in this ever-evolving and highly lucrative industry:

1. Actively Seek New Clients

Being comfortable is one of the reasons people fail to grow in their career. You need to go the extra mile and continuously be on the lookout for ways to increase your client base, especially if you are just starting out. Making money as a real estate agent is based on how proactive you are in securing new clients.

You can achieve this by networking, going down to the neighbourhoods you serve and having one on one interactions with the people, engaging in community activities within your area of service, and advertising your services in reputable and professional real estate publications, among other outlets.

2. Have a Social Media Presence

When you think of real estate agents, the first thing that comes to mind is a person physically going to different places and showing properties to high profile clients. In as much as this is the case, today’s real estate environment has evolved to include the online buying and selling of properties. It is one of the many sectors that are taking advantage of social media to grow their market share while at the same time increasing the visibility of the real estate brand.

As a real estate agent, you need a strong social media presence. The more you project yourself as an authority in this area, the more you are likely to attract clients. Besides having a website, you could also look into sharing valuable real estate content on your blog. You can blog about anything from financing, legal issues to consider when buying property, home decoration tips, the list of potential topics is endless.

3. List Homes for Sellers

While a buyer’s agent seeks to help a client secure a property, handling every aspect of the buying process to the conclusion of a transaction, listing agents work hand in hand with those seeking to sell their property. They work with the sellers to determine the market value of a property, prepare it for sale, and then advertise it in multiple listing marketing databases.

They are also expected to negotiate with potential buyers to come up with a deal that is favourable to both parties. Remember, your commission depends on the price at which you close the sale and the number of transactions you close. Some commission plans are flexible though, and real estate agents have the option to advance their commission if they prefer.

4. Go for Short Sales

A short sale refers to a situation where the net proceeds from a property sale are below the total debt secured in lien with the property as collateral. If a lien holder agrees to be paid less the amount owed on the mortgage, the property is sold.

For instance, if you are a homeowner with a home loan and you are unable to sell your home at a price that can pay off the loan, you can involve a listing agent to convince your lender to take less money.

5. Become a Commercial Real Estate Agent

Making money as a real estate agent is especially lucrative if you work in the commercial sector. The difference between being a commercial real estate agent and a residential property agent is that, with the former, you are paid monthly as opposed to a commission, which the latter attracts. Commercial real estate agents have in-depth knowledge of the going value of various commercial properties.

6. Become a Broker

Brokers are people or firms that facilitate transactions between buyers and sellers in return for an agreed commission once a deal has been closed. If the broker also doubles as a seller or buyer, they are considered a principal party to the agreement.

As a broker, you may also be in charge of the real estate agents operating from your office. In most cases, you get a percentage of the commission earned by the real estate agents in addition to charging them a desk fee. However, most states allow you to become a broker after a certain period has elapsed from the date you received your real estate agent license.

7. Invest in Real Estate

If you are looking to add another stream of income to your commission as a real estate agent, consider investing in real estate. This is an even better proposition since, unlike other investors, you have intimate knowledge of the sector. You know a good deal when you see one, and you understand what the real market value of a property is. You are, therefore in a better position to make significant income from property deals with the best return on investment.

Making money as a real estate agent is a no-brainer if you follow the above seven tips. Since this is a market for willing sellers and buyers, your role as a real estate agent is to bring the two to the deal-closing table. Once the ‘deal is done,’ you get to walk away with a commission that could run into thousands of dollars.