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19 real estate agent tips for beginners to kickstart their careers by Ashley Harwood, Gina Baker for HousingWire

HousingWireHousingWire

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.

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