MORE INFORMATION FOR NEW REAL ESTATE AGENTS

MEMBERSHIPS

Typically, a new real estate agent joins the local Board of Realtors and the National Association of Realtors. Other things to do are addressed below.


EQUIPMENT/SUPPLIES

In addition to a cell phone and a computer, other types of equipment/supplies you may choose or need to purchase include:

  • Business cards
  • Signs and sign riders
  • Lockboxes 
  • Infrared Keys (to open lockboxes)
  • Real Estate Calculator

SERVICES

Examples of services you may need to purchase include:


  • Multiple Listing Service (MLS)
  • Internet Service
  • Cell Phone Service
  • FAX Service (outside the office)

LEADS GENERATION

Some types of lead generation sources are provided below:


  • Subscribe to one or more Online Lead Generation Capabilities (e.g., realtor.com, zillow, trulia, etc.)
  • Send introduction letters to your Sphere of Influence letting them know that you are in the real estate business
  • Cold Calling: This is an old, perhaps difficult method of getting leads for some people, but it works. If you make enough calls, you will get listings.
  • Knocking on Doors: Again, this is a method that nay be difficult for many people, but if you knock on enough doors, you will get a listing. 
  • For Sale By Owners (FSBOs): Contact FSBOs and offer to help them sell their home (free advice and assistance). This may seem odd, but it it has its benefits, especially, if the seller can't sell his/her home and turns to you to list his/her home.
  • Expired Listings: Check expired listing in MLS daily,. Contact the owners whose listings are expiring and tell them why they should relist their home with you.
  • Media Advertising: Purchase advertising spots on the local radio and/or TV stations.

EXPENSES

All the items in the Membership, Equipment/Supplies, and Services categories  above cost money, and all of them are necessary except the real estate calculator and perhaps FAX service outside the office. Some of the items in the Leads Generation category mainly require just "good ole" hard work and little or no money (e.g., letters to your sphere of influence, cold calling, knocking on doors, working with FSBOs, and contacting owners of expired listings). However, online leads generation subscriptions and media advertising do require that you spend some money. Do your research and get costs from vendors/companies that provide the products and services you intend to use in your real estate business.

BUSINESS PLAN

Develop a Business Plan for your real estate business.

  1. Identify the types of clients/customers that you plan to pursue in your business.
  2. Identify the areas, subdivisions, and business areas where you intend to work.
  3. Estimate the price range of properties you plan on listing and selling.
  4. Using the results of steps 1, 2, and 3, estimate the number of listings and sales you think you will make per month. 
  5. Put the results of steps 1 through 4 above into a spreadsheet under REVENUES.
  6. Review the items in the Membership, Equipment/Supplies, Services, and Leads Generation categories above and select the items in each category  you plan to include in your Business Plan.
  7. Brainstorm and identify additional items (e.g., activities, tasks, processes and procedures, etc.)  you plan to use in your real estate business.
  8. Synthesize the results of Steps 1 and 2 into the components of your Business Plan.
  9. Assign estimated costs to each expense item and list them all in a spreadsheet under EXPENSES.  
  10. Review your actual results versus estimated REVENUES and EXPENSES each month and make corrections as required.