Getting Started in Real Estate
If you are new to real estate then you are probably drowning in all the onboarding, paperwork, and fees! This is often a rocky time for a new licensee so I wanted to chat briefly about the process. Firstly, do not let anyone fool you it costs money to play the game! I tell folks to anticipate having about $1500-2000 out of pocket just to walk in the door and be a practicing broker. That may sound like a lot at first but really it is the least expensive business you can start- most require hefty start up capital! In this case though your product is you! Here is a run down of the process:
-Once you pass your licensure exam for NC you will get a license number within a couple of weeks. You cannot start your business until you have this number
-After you have your license you should shop firms. As a new agent you are in provisional status and must work under a broker in charge to become active. You may have already done some of this leg work but this is where you will encounter your first contract- the independent contractor agreement. Each agent is typically a 1099 self employed representative of their firm and when you join a firm you are going to get an independent contractor agreement. READ IT! This document will indicate how much of the commission you generate you get to keep (your split), does that amount ever cap, are there any transactions fees, what happens to your clients if you leave the firm (do you owe a referral fee, or are you even allowed to take your buyer and sellers with you since the agreements are with your firm). There should be a lot of solid info in this contract so read it and get help if you do not understand it.
-After selecting a firm you will be writing a check to sign on with them and get access to the tools you need. The most important tool in a broker’s tool belt is the Multiple Listing Service (MLS). Most MLS platforms are run through your local association of REALTORS. Many firms will require you to join and become a REALTOR member (you can be a real estate agent in NC and not a REALTOR). Why is this important? REALTORS pay annual dues for local, state, and national membership (usually all at one time bill through your local association). Your state REALTOR dues are very important in NC since being a member of the North Carolina Association of REALTORS give you access to your forms via a free platform call zipforms. Your local dues are very important since this grants you access to MLS, you will likely also pay monthly or quarterly MLS fees to use the service. The National Association of REALTORS NAR give you a lot of member benefits too including legislative efforts to protect private property rights. You first year of REALTOR dues are prorated when you join and then billed annually each year afterwards often in December or January.
-Now you have a firm, signed and independent contractor agreement, joined your REALTOR association to gain access to your NC standard forms and MLS, and you are well poised to actually start helping clients. Many new brokers tend to get bogged down with self promotion and marketing at this point. While that can be great, marketing costs money. You are new and just wrote a lot of checks to be here, why spend more money? Your cell phone will become your best friend (and worst enemy for your personal life). Go through and announce to everyone you know that you are now a licensed NC broker ready to help anyone buy, sell, or invest in real estate!
-Training is an ongoing request for any professional. Real estate brokers in NC are required to take 90 hours of post licensing class within 18 months of the date you received your license (the issue date is on the license). Likewise, all brokers must take 8 hours of continuing education (CE) every year by June 10th. You will not need CE immediately after getting your license as this will become a perpetual requirement for you only after you have passed your first June 10th as a licensee. The minimum education is probably not enough. Learning based is earning based and you likely need someone to show you how to do a comparative market analysis, fill in your standard forms, negotiate, advise your clients, discover and disclose material facts, create a business plan, lead generate, track your return on investment (ROI) for marketing efforts, and much more. This is where a strong firm with excellent training and staff can really slingshot you forward in your career. About 80% of all new brokers leave the industry within 18 months and I am a firm believer that good planning and training can keep you in the 20% go on to be successful.
Now that you are off and in the running for Rookie of the year, reach out for help if you need it! Welcome to the real estate family.
