How To Become a Real Estate Agent

Question

Hello everyone,

I've been looking into becoming a real estate agent in Wisconsin, and am looking for advice on how to become one, from someone's personal experience, how they went about it, what they did or didn't do, and what they like or don't like about it.

Any input would be very helpful!

Thanks,

Hannah

Nathan Gesner · Answer

@Hannah Kingslien the first thing you need to do is educate yourself on the costs. Far too many become agents without realizing how expensive it is, particularly the first couple of years. They see a 40-year-old woman driving a Lexus and wearing nice clothes and assume she must be rich. They don't realize she's working 50-hour weeks, she has 20 years experience, and her husband has a full-time job capable of supporting them during slow periods.

It can be good money but it takes 2-3 years to really build a business and be successful which is why nearly 90% will quit before getting there. You can make it as long as you go in prepared and with eyes wide open.

Hannah Kingslien · Answer

Thank you so much for all of the advice! I really appreciate it.

Heidi Selch · Answer

Hi Hannah,

I started my real estate course this summer, passed my test and am just beginning my realtor career here in WI.  It was simple and quick to do the course online through WRA.  I liked the ease of being able to complete the course online and my own pace, however there is a time limit (I think 6 months) to finish the course.  Once completed you take the licensing test, which was also a simple process to sign up and take.  Then you begin looking for a broker to work under.  This is the part I wasn't familiar with, I was under the impression that they interview me but its a bit of both.  You also can find a broker and office that you feel comfortable with and that is a good fit for you.  Please feel free to send me a message if you would like to chat further.

Good Luck!

Heidi

Corina Eufinger · Answer

I took my course through WRA.  I had 6 months to complete the 72 hours course.  I found the course good overall.  It is costly though, I believe $475 for the sales license.

There are other money factors to consider.  Continuing education is required every 2 years and you have to pay for those courses.  You will work as an independent contractor which means you will have to pay self-employment taxes out of your own pocket for the money you make.  Depending on the firm you work for you might be required to rent office desk space in their office. Then there is of course vehicle maintenance, errors and omissions liability insurance, etc.

I'm not discouraging you.  Just be sure to do your homework beyond just taking the course.  Research how brokerages function and what a sales person's role and financial responsibilities are.

Jarred Donalson · Answer

Another option you could explore would be reaching out to the successful teams/agents in your area and see if they might be in need of an office assistant or inside sales agent with the ability to move in to being an agent. That way you can learn the business and often times teams will help cover your education and start up fees. Find the agents who are successful in your area and talk to them. Real estate is hard for agents just starting out but can be rewarding if you're willing to do the leg work and stick out the slow times.

Hannah Kingslien · Answer

@Mooro El

This helps a lot, thank you!

Mooro El · Answer

Hannah,

My suggestion would be to try to find an inexpensive in-class course with a compressed schedule. In PA we need 60 hours of class work to take the test. The course I went with 10 hour sessions, Saturday and Sunday for 3 weeks and that was it. Hopefully the class will have a test prep portion to it as well to help you pass.

It's best to interview at least 3-5 brokerages to see who will be a good fit for you, your lifestyle and your personality. While interviewing them, ask them if they do reimbursement for the class, which some brokerages do nowadays. (Of course that would be contingent upon you becoming an agent at that brokerage and staying there for 6-12 months or something of that nature.)

Other good questions to ask them would be what are their commission splits, a breakdown of ALL fees (monthly or annually), what their commission cap is, whether they provide leads for you and if the commission changes if they do, how often they provide training and what the topics of the trainings usually are, do they provide mentoring to help you work through deals, etc.

Also, keep in mind that there are fees that the Broker has no control over such as MLS access, ($300/6 mo in PA), Realtor dues if the Broker is a member of the association of Realtors ($600/yr in PA), marketing materials, cost of yard signs, networking associations to network with investors, etc. A reasonable minimum to expect to pay is around $2,000-$3,000 per year as required costs.

I hope this helps!

How To Become a Real Estate Agent

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