Welcome to the world of real estate sales! Maybe you’ve recently passed your real estate exam and obtained your license, or maybe you’re simply thinking about becoming a real estate agent. While real estate prelicensing schools will teach you how to pass the test, there’s a lot that they don’t teach you.
Real estate is very much a “learn on the job” career, but luckily, there are many agents (like us!) who have already learned on the job, so we’re able to share these real estate agent tips with you. Let us help you become successful faster with our top 19 tips for new real estate agents.
1. Have at least six months of savings in the bank
Selling real estate takes time. It can take weeks or even months to find your first client, weeks or months to go under contract on a property, then typically another six to eight weeks until closing. That’s when you get paid, not before then. So plan ahead. Have at least six months’ worth of living and business expenses in the bank before you quit your other job and go all-in on your new real estate career. This is one of our best real estate agent tips for starting out and making sure you’ll be ok financially.
2. Save money for taxes
Once a new real estate agent has their first closing, it can be tempting to go on a shopping spree and celebrate. Don’t fall into this trap! You’ll be a 1099 contractor instead of a W2 employee and will need to pay taxes on your earnings – they won’t be automatically withheld for you. Get into the habit of setting aside about 30% of your real estate income for taxes (check with your accountant on the exact percentage you should set aside).
Pro Tip
Open a separate bank account just for taxes. This will help you avoid the temptation to dip into your tax money to lease that new Mercedes.
3. Tell everyone you know that you’re now a real estate agent
One of my favorite real estate agent tips for beginners is this one. The fastest way to find clients is by working through the people you already know: friends, family, coworkers, neighbors. Let them know about your exciting new career path and ask for their help.
You’re not asking them if they want to move (the answer is likely no), but you’re asking them to keep an ear out for people they know who need to move. Ask for referrals. People will want to help you, especially the people who already know you and like you.
4. Interview multiple brokerages
I can’t tell you how many times I’ve heard an agent say they joined a specific brokerage because they had a friend who worked there. That is not a good reason to affiliate with a company to start off your career.
Do your due diligence and meet with several brokerages in your area – large and small, franchise and independent. Ask about their training (that’s key for new agents), their support and their splits, of course. Then ask to speak with a few of their agents and really dig deep to find out what they think of the brokerage. Yes, this takes time, but it’s well worth the effort to ensure you’re with the right company for you.
5. Follow proven models for lead generation
No need to reinvent the wheel. If you’re wondering where to begin to find leads, check out all the proven models other agents have developed already and choose one or two that sound enticing to you.
Here are some of the best proven methods for finding your first clients:
- Network with your sphere of influence, the people you already know. Tell them you’re launching your real estate career and ask for help by keeping an ear out for anyone looking to move.
- Host open houses to find potential buyer (and seller) leads.
- Become involved in your community. This will give you exposure and position you as a leader.
- Join your local chamber of commerce to build your network.
- Start a YouTube channel focusing on relocation buyers, sharing all the features of your local area.
Another quick and easy way to get leads is to purchase them. Although this will cost money, it will guarantee leads right to your inbox. For $189 per month and approximately $30-$50 per lead each month, Market Leader will do the hard work for you. Plus, you’ll get a CRM, marketing suite, lead capture forms and more.
There are many other ways to find clients, and if you’re looking for more ideas, check out these resources:
6. Treat your real estate career like a job
Get up every day, get dressed and show up like you’re going to a regular job – because it is a regular job, you’re just not a salaried employee. Although you won’t have a boss looking over your shoulder, the top agents are in the habit of showing up to their business day in and day out and doing the right activities to build it. These include following up with leads, prospecting for new leads, studying the market, serving your current clients and practicing your skills.
A morning routine can help with this, especially at the beginning of your career as you build new habits. Wake up at the same time, do something to get into a healthy mindset (listening to a podcast or meditating can help), move your body in some way (a full gym session or simply some stretching) and get ready for the day to go to work.
Check out the book “The Miracle Morning for Real Estate Agents” by Michael J Maher and Hal Elrod (available on Amazon) for more details on how to create your morning routine. Also, real estate rockstar Glennda Baker shares her best advice for agents in this article:
7. Find ways to stay motivated
The real estate industry is not an easy one, despite what some TV shows would have us believe. It’s a lot of work, and there will be lots of times when you feel discouraged. I’ve felt discouraged and almost given up many, many times. The trick is to find ways to keep yourself motivated.
Here are some suggestions:
- Check out the Pivot: Shift Ahead call that happens every weekday (and is free). This call happens at 8 am and is a great way to start your day with an extra dose of motivation.
- Find a buddy in your office and agree to call or text each other whenever one of you is feeling discouraged.
- Hire a coach to be your sounding board and cheerleader during tough times.
- Listen to a real estate podcast as you get ready for the day.
8. Think about your WHY
What made you want to enter the real estate industry in the first place? What is your ultimate goal? How will selling real estate impact your life and your family’s lives? Consider these questions as you think about your WHY, the driving force behind your desire to succeed in real estate sales.
Much of what determines a new real estate agent’s success is mindset, and keeping your ultimate goal top of mind will help pull you through the daily grind of finding and serving real estate clients.
9. Create your business plan
Another one of our top tips for real estate agents is to create a business plan. With so many different ways to find clients, it’s very important for agents to create a specific business plan that lays out exactly which activities they’ll do each day.
Are you going to focus on door knocking? Hosting open houses? Working with your sphere? Joining networking groups? Your business plan will be your guide to achieving your goals and preventing you from trying too many lead gen strategies at once.
Most real estate brokerages teach business planning workshops once or twice a year, but if you’re looking for help creating your plan and there are no upcoming classes available, find a coach or mentor who can help you. I offer a service to real estate agents to help them create their business plans from scratch: Click here for more details.
10. Time block your calendar
To help you stick with your business plan, I always advise agents to time block their calendars. This means determining in advance how you spend your time and actually putting those activities in your calendar.
Example:
- 9 am – 11 am: Reach out to your existing network
- 11 am – 12 pm: Follow up with all new leads
- 12 pm – 1 pm: Break for lunch
- 1 pm – 3 pm: Preview new listings in your area
- 3 pm – 5 pm: Go on appointments
By taking the time to be very purposeful with how you spend your time, you’ll set yourself up for success by controlling your schedule. It also saves you time because you won’t have to figure out what to do each day; simply start working on your plan and follow your schedule.
11. Track your business expenses
There will be expenses as you launch and grow your real estate business. Starting with your prelicensing courses and exam, start tracking every single dollar you spend on your business. You can write these off and lessen your tax burden. Opening a separate business bank account and an interest-free credit card are great ways to help keep your expenses separate from your personal finances. You don’t need any fancy software; a simple Excel spreadsheet will do the trick.
At the end of the year, you (and your accountant) will be glad you tracked your expenses throughout the year, instead of having to go back and track down all your purchases. Save your receipts and don’t forget to track your mileage, as well. MileIQ is my favorite app for easy mileage tracking.
12. Don’t compare yourself to others
I fell into this trap, as many new real estate agents do. I always give this advice when I give real estate tips for agents: your business will look different than everyone else’s, and that’s ok! Don’t compare yourself to others. Focus on your plan and doing the best job you can for your clients.
13. Find a mentor
Real estate school doesn’t even scratch the surface of all you will need to know as a real estate agent. Partnering with experienced agents in the beginning for your first few deals is invaluable and well worth the commission split you’ll pay them.
A good mentor will be there to answer your questions, give you advice when you don’t know what to do or say and guide you through the transaction from start to finish. They may even go on the initial appointment with you and help you land the client (prepare to pay a higher split for this additional service).
Ask your office manager who would be a good mentor for you. It’s also worth asking the brokerages you interview if they have a mentorship program in place and what it looks like, before you join an office.
14. Preview homes and study the market
It’s not enough to focus solely on finding clients. It’s also important to become the local expert, the local economist of choice. How?
- By previewing homes. Real estate agents can tour active listings by attending broker open houses, public open houses or simply scheduling an agent preview. This is important because it will allow you to learn the available inventory and get a first-hand look at your local market. Pay attention to location, size, condition, asking price and days on market to get a better understanding of the area.
- By studying the market. This can be done from the comfort of your home or office. Each day, log into MLS and see what’s new. Your MLS may have a “hot sheet” option – a quick link that pulls up the latest activity in a particular area. Look for what just came on the market, what went under contract, what closed and anything that expired. Doing this research each day doesn’t take long, yet it’s the best way to truly learn your local market. Create a time block in your calendar for it!
15. Practice, practice, practice!
With practice comes confidence, and when agents exude confidence, that builds trust with everyone they talk to. Here are items you’ll want to regularly practice (again, put these in your calendar with time blocks):
- What you’ll say to a buyer or seller lead to set an appointment with them
- The actual appointment, both buyer and seller
- Every single form – you’ll want to know your documents inside and out, so when your client has a question about them, you will be able to answer confidently and correctly
- What questions you ask buyers at an open house you host
- CMAs – practice doing comparative market analyses on your friends’ homes, so you get comfortable doing this. Have your mentor or another agent in the office take a look and get their feedback until you master pricing.
You can practice by yourself in the car or in front of the mirror, but the best way to practice is to role play with others. Find a friend who’s willing to let you do a fake listing appointment with them and treat it like a real appointment. Do the same with a buyer consultation. Soon, you’ll speak like a pro!
Pro Tip
Record the role play conversation and play it back for yourself so you can evaluate and revise your tactics.
16. Always be learning
No matter how big your business grows, always be learning. Take classes, attend real estate conferences, read books and listen to podcasts. Learning will not only keep your skills sharp and up to date, it will help you stay focused, motivated and humble. Look for classes outside your brokerage, as well. Most training is open to all agents, and it can be valuable to gain different perspectives.
Don’t forget about online education resources like Colibri Real Estate. Keep your license active and your skills up to date from the comfort of your couch. Colibri’s continuing ed online courses are a great value, as well: the Massachusetts CE package is just $129! Check out the cost in your state by clicking on the button below.
17. Build your vendor network
One of the best values you can bring to your clients and leads is recommending a fantastic vendor to them. Lenders, attorneys/title companies, insurance providers, even handymen and painters – when you can be the one who connects a client with a great vendor, everyone wins. You save your client the hassle of finding their own vendors and potentially ending up with one that’s less than stellar. Also, if you send business to someone in your network, you look like a hero.
The easiest and most strategic way to find amazing vendors is to ask the top agents in your office who they use, then ask for an introduction. Do your own vetting, of course, but working by referral in this way will save you a lot of time and effort.
18. Prioritize your time
A common mistake I see new real estate agents make is spending too much time designing the perfect business card or website and not enough time learning the business or finding new clients. Things like shadowing other agents, practicing filling out the forms and exploring listings in your area are seemingly small items, but really important to your success.
The truth is: working on your marketing pieces is an easy distraction from the challenging tasks of mastering the skills needed to be an excellent agent, lead generation and lead follow-up.
Pro Tip
Set a time limit on these less-important but necessary tasks. For example, spend no more than 30 minutes designing your business card. Get it to a place where it looks good enough, then stop.
19. Take time for yourself
As your business grows, it will be more and more important to set boundaries for yourself to avoid burning out. I see this with new agents often, once they have a few clients. They are so excited to have real estate clients that they start neglecting their own well-being. Be sure to set boundaries and take time off regularly. Here are a few examples:
- Stop checking email and texting after a certain time each night
- Take at least one day off per week – it’s ok if it’s a weekday
- Plan time with family and friends
- If you’re an introvert like me, plan time alone to recharge your energy
- Be intentional about doing activities that bring you joy
FAQs
How long does it take to get my first sale?
It depends on three things: your existing network, your work ethic and a little bit of luck. I’ve seen agents sell just one house their entire first year in real estate, then go on to become a top producer in their office (like me!). I’ve also seen agents come into the business with several friends and neighbors in a luxury neighborhood who are all ready to sell immediately. Keep in mind: How you start off in the business does not determine where you’ll end up, so if you’re off to a slower start, stick with it and don’t give up.
Should I join a team?
It’s always worth exploring the option of joining a team as a new agent. Yes, you’d have a boss and you will net less income on each deal, but with the right team, the experience and knowledge you’ll gain could make it worthwhile. Be sure to interview several teams before choosing one, to make sure it’s the right fit for you.
Do I have to cold call to be successful?
Nope! You do not. Cold calling is one strategy out of hundreds that are proven to work, so if it’s not for you, skip it and focus on other lead generation methods. Even though it’s a commonly taught tactic, there are plenty of top agents who do not cold call.
The full picture
There’s a lot more to selling real estate than opening up doors and pointing out shiny kitchen appliances. When you treat your new real estate career like the small business it is, you’ll find success faster. Learn as much as you can, find the people who need your help to buy or sell and enjoy the ride along the way. You’ve got this!