By Phil Immel
Question: I’m thinking about a career change. I have always been fascinated by real estate. I am seriously considering becoming a real estate agent. What should I know?
Reply: You should always pursue your dreams and passions. In my more than 40 years of experience in residential real estate, I have been fortunate to have many friends and family members who have come to me for career advice.
If you haven’t taken an online career assessment test recently, I will. Myers & Briggs does it for $50.
Selling houses sounds easy and glamorous, especially if you watch TV shows. Unfortunately, I must point out that reality TV is an oxymoron. The reality is different. Some people want to know more about the industry, even if they never sell real estate.
Some just want the education and financial knowledge to buy and sell their own home or invest in real estate.
As with any career, there will be pros and cons. You should ask yourself the following questions to see if this is the right career for you.
- Do you like people?
- Are you outgoing and social?
- Do you know a lot of people and how to create lead generation?
- Do you plan to work full-time or part-time?
- Are you an entrepreneur or do you prefer normal structured work (9-5)?
- Do you have a strong work ethic?
- Do you have great tenacity?
- Are you a self-starter?
- Are you organized?
- Are you a quick study and love to learn?
- Are you a good multi-tasker?
- Are you proficient in business plan design and financial management?
- Do you have at least a year of savings in place to switch careers?
- Do you understand general business and global/domestic financial markets?
- Do you have a well-maintained car?
- Are your personal image and wardrobe professional?
If you answered yes to most of these questions, then you would be a good candidate for the industry. Real estate is a cyclical business with fluctuating income in amazing markets and slow markets. Income is inconsistent and you need to be a good saver to survive.
To pursue your career, the State of California requires you to be at least 18 years old. You must also take courses in real estate practices, directors, and an elective, such as real estate law. You must also pass the 150-question state exam and score 70% or higher.
Studying for the exam can be done online or maybe in a classroom setting. There are final exam preparation books with a myriad of answers to questions for the self-test. Plus, there are weekend immersion classes presented by expert trainers. This process can take three to six months.
Once you pass your exam, you must work for a real estate broker or brokerage firm, licensed by the State of California.
In California, like most states, there are two levels of licensing. A vendor license, which means you must work for a broker, and the highest level license is a broker. A broker has much more experience and education and is responsible for supervising your activities.
You also need to decide if you want to be a solo agent or work in a real estate team. In this market and the years to come, I would recommend joining a team.
Additionally, you must join the local council of real estate agents and the MLS service. Total annual fees are approximately $2,000 per year.
The advantage of a team is the generation of leads, the experience of a primary partner, and the observation of how other agents operate and how transactions unfold.
Most successful team leaders will retire within the next decade. You might want to consider buying a practice that is already established and well-known in town.
A real estate question? Email Phil Immel at [email protected]. Visit realestateguru.com. The Guru has over four decades of experience listing and selling homes in Southern Orange County. As a licensed real estate broker, Phil majored in real estate at San Diego State University and is also an expert in mortgage, title, escrow, appraisal and negotiations.