Becoming a real estate agent can give you access to an exciting and rewarding career. Every day, you can look forward to new challenges and experiences as you help people find their dream homes or property.
Still, just like with any vital career move, you should take the time to plan and contemplate before deciding. You must be aware of relevant factors and consider them before entering the real estate industry.
Keep in mind that a thriving future in this industry is not only based on passing the licensure exam or attending training events and seminars that aim to prepare you to become a real estate agent in the Philippines.
Many aspiring real estate agents invest time and energy in taking the necessary exams and accreditations but then fail in their practice because they didn’t create and stick to a plan that would make them successful realtors. In fact, being an accredited real estate agent doesn’t always mean that someone has a thorough understanding of the industry and possesses relevant skill sets to navigate the world of real estate.
So, as much as passing a licensure exam is mandatory, remember that educating yourself in other essential areas such as soft skills development, networking with prospects, finance management, and the like are just as crucial. With that said, let us delve into critical considerations before you establish a career as a real estate agent.
5 Factors to Consider Before Deciding to Become a Real Estate Agent
Identifying the essential skills of a real estate agent
Being a real estate agent can be both thrilling and demanding. As much as this profession isn’t for everyone, it can be a perfect fit if you have particular skills and traits. The following are three essential skills to thrive in this business.
- Communication and negotiation skills
A skilled real estate agent can negotiate about anything with anyone and has excellent interpersonal communication skills. You will find these skills valuable as you work to get your clients the best offer on the house they want. Working in real estate is an excellent fit for you if you have a natural talent for persuasion and are exceptional at convincing others.
- Time management skills
Most real estate agents set their own schedules and act as their own bosses. As such, they practice excellent time management skills to help them attend to their daily tasks, which can vary from day to day. Properly managing their routine allows them to consistently give their clients top-notch service, fulfill all deadlines, and arrive at every appointment on time.
- Problem-solving skills
Real estate agents should be adept at problem-solving because they will unavoidably encounter issues throughout their careers. When something goes wrong, they must be able to respond quickly and come up with innovative solutions for various challenges. They must also manage their client’s expectations. A real estate agent who cannot resolve issues won’t be of great value to clients.
Read more: Assessing Three Types Of Risk In Real Estate
Knowing how much you can make
As a real estate agent, your earning potential is limitless. However, it works both ways—part-time work will result in part-time compensation. Your earnings increase with the amount of time you invest in real estate. Newbie real estate agents must anticipate working longer hours to learn the basics and get the hang of it.
A real estate agent’s potential income is also greatly influenced by where they live and work. Since real estate is a commission-based industry, your income depends on the sale price of a home. Therefore, bigger cities are an excellent place to land higher commission checks.
Real estate success mainly depends on strategically approaching the market while keeping your financial objectives in mind. Take the time and effort necessary for network and real estate business building.
Willingness to build relationships with other real estate agents
Real estate agents should develop relationships to succeed in this line of work. Every industry that offers high commissions becomes exceptionally competitive, occasionally encouraging unprofessional behavior.
As the market downturns and sales become fewer, the pressure rises and causes a high stress level that might bring out the worst in people. As such, building positive relationships is critical.
Here are some tips on how to establish rapport and foster strong connections with fellow real estate agents:
- Be trustworthy
Any connection must start on a foundation of trust. You must develop contacts in the real estate industry, but that is easier said than done. Trust-building takes time and effort. You need to earn the trust of your coworkers, rival agents, and property sellers and buyers.
It’s preferable to close a transaction than not make a sale, even if that means splitting the commission with an outside agent. You must gain external agents’ trust by conducting business with them to persuade them to introduce you to potential buyers. If they feel confident in you, they won’t hesitate to recommend more buyers for your subsequent listings.
- Cultivate a good reputation
Establishing and preserving a solid reputation is essential for success in the real estate industry. Having a positive reputation with current and former sellers who can refer you to prospective buyers can help you get more listings. Past customers are in the same boat. If they are pleased with your services, they will tell other potential customers about you.
- Maintain civility with your competitors
Being friendly with your rivals allows you to learn from them and advance your career. Real estate agents must share knowledge and ideas to improve the services they offer clients as the business continues to expand and undergo changes. The referrals you can receive from other agents are another benefit of establishing good relationships.
Positive values and personality
For real estate agents to be deemed the best in their field, they must exhibit several traits. Even though different real estate markets exist, buyers generally look for the same qualities before choosing whether they can trust a real estate agent.
These characteristics speak for themselves and provide clients with a sense of reassurance. The following are some traits that great real estate agents have in common:
Success as a real estate agent demands incredible innovation and creativity to remain a top player in the industry. These qualities can be valuable in positioning yourself as an industry authority, what with the increased market competition and consumers being exposed to an expanding number of options to choose from.
Closing a transaction may require a lot of patience. All clients demand a strong work ethic, which they measure by how driven and committed you are to close the sale. To successfully promote your real estate company’s properties, you will need the determination to overcome any obstacles that stand in your way.
- Attention to detail
Real estate transactions involve a lot of fine print, including financial information, contracts, signatures, and banking details. One mistake or missing piece of information could have grave implications for the company you represent and your client.
- Industry knowledge
You can serve clients better if you are well informed about the latest trends in the real estate market. You could pursue continuing education and professional development to increase your mastery of the industry.
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- Interest in houses and architecture
You may have an advantage over other brokers and salespeople if you’re genuinely interested in houses and architecture. Your clients will recognize that you are interested in the real estate field if you can carry on conversations that tackle topics like architecture, interior design, etc.
Familiarity with rules and regulations
It is natural for every real estate transaction to have legal implications, but you’ll find agents and brokers who don’t place a high focus on following real estate laws. In extreme cases, buyers and sellers are compelled to file lawsuits against their real estate agents to protect their stake in a property.
Therefore, understanding common legal problems and how to avoid them are essential if you plan on becoming a real estate agent. Every agent should be aware of these real estate rules to avoid common pitfalls:
- Disclosing accurate information
More lawsuits are brought against real estate agents for giving false information about a property than under any other law. You must provide your client with all the necessary information about a property before finalizing a deal to purchase it. Giving the client inaccurate or insufficient information could lead to legal action being taken against you after the sale.
- Fair housing opportunities for all
Lawsuits also commonly arise from violations of the equal distribution of real estate units. Real estate agents might face costly damages if they discriminate against prospective buyers. Your name is your brand if you’re a real estate agent. Don’t risk your reputation for a single transaction that could ruin your career.
- Upholding environmental safety
Another legal issue that agents must deal with is environmental safety concerns. Brokers and agents should insist that property developers hire environmental specialists to inspect these problems. If you disregard ecological regulations, you might face legal consequences. Therefore, it is prudent for you to become familiar with the common environmental issues that affect your area.
You Can Do It
Indeed, working as a real estate agent is fulfilling, but you must try to learn and improve. The real estate industry is an exciting and challenging field where your job as an agent can directly impact the lives of those you work with. It will be a difficult task, but the result will be worthwhile.
Read more: How to Choose the Right Real Estate Agent when Selling a House