Is This Career Right for You?

You should have the following attributes if you hope to succeed as a realtor, and enjoy what you do:

 

• You aren't afraid to pick up the phone and cold call

• You’re willing to be on-call for clients on evenings, weekends, and holidays

• You aren’t afraid of long hours and paperwork, including preparing contracts

• You’re interested in a career with exceptional income potential 

• You’re willing to devote a few years and a decent amount of money to getting established in your field

• You're willing and able to endure periods where you don't have money coming in

• You don’t expect to succeed right away

• You’re willing to represent the interests of clients and negotiate on their behalf

• You have a keen interest in the property market, local economic trends, current income tax regulations and purchasing arrangements 

 

 

Putting it all Together: Steps for Becoming a Realtor

To sum all of this up, here are the essential steps you’ll need to take to become a realtor:

 

 

Step 1. Make sure you're well suited: Determine if you have the right personality.

 

Step 2. Talk to realtors: Contact realtors You know (even those you don’t) to find out how they got in, what they like/don’t like about the career, and other tips.

 

Step 3. Budget for it: Make sure you have a spouse, savings, or a second job to help you through your first few months of trying to get established

 

Step 4. Make sure you meet the basic licensing criteria: Contact your local real estate association for exact licensing requirements.

 

Step 5. Get schooled: Get an education in real estate (optional, but recommended)

 

Step 6. Get licensed: Attend and pass the training to get your license

 

Step 7. Get a job: Sign on with an established brokerage, which will involve starting at the bottom.

 

Step 8. Establish yourself: Work long hours, network, and learn from successful realtors.

 

 

 

 

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Details of the Work Itself: Job Description

As a realtor, you would be responsible for assisting clients in finding, renting, buying and selling property. You would act as your client’s representative in order to assist them in navigating the murky waters of property transactions.

 

 

General Job Duties

Although your duties from job to job (and from transaction to transaction) could vary, you would generally be responsible for the following:

 

• Meeting with clients in order to gain understanding of needs and wants

• Providing potential clients with information regarding what they can expect from the you and the brokerage you represent

• Search for properties that match the client’s needs and wants, such as size, price range location, and other features

• Provide client with suggested sales price for their home based on comparable properties which have recently sold in the area

• Negotiate pricing on behalf of client

• Advertise client's property for sale on the open market

• Facilitate completion of paperwork related to transaction

• Recommend to the client to seek client legal advice when appropriate

• Provide names and contact information of local home inspectors, lawyers, and other service providers

• Market services in community in order to expand client base

 

 

Typical Salary for Realtors

The salary level you could earn as a realtor can vary substantially, typically depending on the following factors:

 

• The region in which you work

• The scope of your job duties and functions

• The amount of deals you close

• The size of your client base, and how well you market yourself 

• Whether you earn a salary or commission

• Your monthly expenses (such as ‘desk fees’, gas for driving clients around, etc.)

 

Commercial Realtor Salary in Alberta: According to the 2015 Alberta Wage and Salary Survey, the average salary level of Albertans working in the Real Estate Agents and Salespersons occupational group is $106,351 per year.

 

Salary in Canada: According to Service Canada, the average salary level of Canadians working in the Real Estate Agents and Salespersons occupational group is $52,800 per year.

 

Salary in the United States: According to the U.S. Bureau of Labor Statistics, the median salary level of Americans working in the Real Estate Brokers and Sales Agents occupational group is $45,610 is per year. 

 

 

Some Notes on Income

Successful realtors can earn upwards of $1,000,000 per year (almost every major city has several who earn 7 figures per year).

 

It’s also important to realize that this career involves a lot of out-of-pocket expenses, such as marketing, gas for driving clients around, and ‘desk fees’ to be associated with your brokerage, which can cost between a few hundred and a few thousand dollars per month. In fact, you might actually earn a negative income when trying to market your services and establish yourself (similar to starting any business). 

 

 

Tips for Succeeding as a Realtor

It’s important to keep certain things in mind when you’re starting off as a realtor; your licensing coursework may or may not make mention of the following points, but they are crucial to have in mind to set yourself up for success.

 

• Be patient; count on not making any money for at least 6 months

• Have a spouse, saving or second income to get through the first few months of not making an income

• Like starting any business, it will take time to establish yourself as an expert and gain a large client base

• Re-invest money from every commission into marketing yourself

• Consider starting a website or blog to market your services, complete with testimonials from clients for whom you’ve successfully closed deals

• Determine a niche, whether it’s a neighbourhood, a type of property, or a price range for properties (such as starter homes or million dollar listings)