It is a fact that real estate agents play a key role in the process of buying or selling a home. Recent statistics from the National Association of Realtors show that 89% of buyers purchased a property through a broker or real estate agent. Similarly, 89% of sellers were helped by a realtor when selling their property. It’s clear that real estate agents are necessary and those shopping around or selling in the housing market are willing to pay for the services they offer. Therefore, being an agent could be a great way to become rich in real estate.
How Much Do Real Estate Agents Make?
According to glassdoor.com, the average real estate agent salary is $50,968 per year. However, your realtor’s salary will vary depending on your education level, skills, years of experience, and location (check out the best cities for real estate agents!). Top real estate agents earn as much as $102,000 per year.
How Can a Real Estate Agent Make a Lot of Money?
With about 2 million active real estate licensees in the US, there is a lot of competition among real estate agents. To make money as a real estate agent, you will need to stand out. At the same time, you have to ensure that you get the foundations down. Here, we won’t offer you any wacky tips and tricks to making a lot of money as a real estate agent. Instead, we offer 4 tips that will help you build your real estate agent business on the right foot – this is the surest path to getting rich in this industry. Here is how to be a rich real estate agent:
1. Develop a professional image
Rich real estate agents realize that first impressions are very important. No matter how qualified or skilled you are, many clients will still judge you by your appearance.
Always look neat when going about your real estate agent career. Dressing in well-fitting, fashionable clothes and shoes will make you look professional. However, avoid clothing that is too low-cut, too short, or too tight. Make sure your hair is well done and nails trimmed. Make-up and jewelry should be worn in moderation. If you must use cologne or perfume, keep it very mild.
You should also project a professional image in all your real estate agent marketing materials. Make sure your website, business cards, and flyers are professionally designed and branded. The text should be well-written without spelling mistakes. Don’t forget to use professional images and graphics in your marketing materials. Written communications such as emails, letters, and text messages must also be well-written and free from spelling and grammatical errors.
The kind of car you drive will send a strong message to prospective real estate clients. If you can’t afford a classy car, it wouldn’t hurt to hire or borrow one once in a while. This is especially important if you are a luxury real estate agent dealing with wealthy buyers or sellers (this is a good niche to consider if you’re looking to make a lot of money as a real estate agent).
The appearance of your office is also very important. Keep it meticulously clean and organized at all times. The furniture should be simple but tasteful. All your staff must be well-trained on how to handle clients in a professional manner.
Related: 10 Reasons Real Estate Agents Fail (and How to Avoid Failure in the Business)
2. Learn how to communicate
You’ve probably heard it 100 times, but real estate is a people business. So you need to know how to communicate with clients and leads effectively. Having this skill will open up the door for you and allow you to make a lot of money through repeat and new business throughout your career.
Good communication is not just about saying the right words. It has been said that 90% of communication is non-verbal. Therefore, you need to watch your body language when dealing with clients.
To appear interested and engaged, always maintain eye contact when talking to clients. However, don’t make this a staring contest. Avoid gestures that would make you look dishonest such as scratching your nose, rubbing your eyes, or covering your mouth when talking to real estate clients in person.
When talking to clients, standing up straight with your chest out will make you appear confident. Sitting while leaning forward slightly and relaxing your shoulders will make you look attentive, thus making it easier to connect with clients. Don’t speak too slowly or too fast. When listening to clients, nodding once in a while would be a good idea.
Pay attention to your handshake. If it is too limp, the clients or real estate leads might get the impression that you don’t have confidence. If the handshake is too strong, you could be taken to be domineering. To be on the safe side, just mirror your client’s handshake. How you hold your arms will also send a strong message about you. Crossing them could make you appear defensive or closed. To look relaxed and open, simply put your arms at your side.
Related: A Guide for Effective Communication with Your Real Estate Clients
3. Stay updated on current trends and take advantage of the latest technology
The real estate industry is changing very fast. To become one of the successful real estate agents and make a lot of money, you must keep up with the latest developments. Watch the news, read industry journals, and follow leading real estate blogs. Learn about the latest tools for real estate agents and think of how they can improve your practices and processes. For example, Mashboard is a great predictive analytics tool for real estate lead generation and AI lead qualification.
To generate seller leads, for example, you can search for homeowners using filters such as location, property type, sales date, year built, and contact data (addresses, phone numbers, emails). Within minutes, Mashboard will provide you with personalized homeowner data that you can download. In terms of buyer leads, the platform can gather all the available data on a lead for you and automatically qualify them. After generating or qualifying real estate leads, you can then reach out to them directly through Mashboard using email campaigns.
4. Participate in your local community
Being actively involved in your community will help you strike a rapport with the residents, as well as expand your knowledge of different neighborhoods. This, too, will ensure new and repeat business and help you make money.
Here are some ideas for community participation as a real estate agent:
- Volunteer – Spend a few hours every month volunteering your time to local organizations and groups. For example, you can donate your expertise to initiatives aimed at providing affordable housing.
- Local sponsorship – You can support local teams or events financially or in kind. Being a sponsor provides an opportunity to get your business logo on posters, t-shirts, and social media posts related to the event. This is a great strategy for promoting your brand and building brand recognition.
- Education – Reach out to local universities or colleges that offer real estate courses and offer your expertise. You could also partner with local schools for their career days.
- Local media – Radio and television stations always need content related to real estate. Being featured on their shows as an expert means free publicity for your business.
Whether you are a seasoned or new real estate agent, you must always be on top of your game. If you apply the above tips for how to be a rich real estate agent, you will soon be one of the rich real estate agents that many look up to.
Related: How to Get Started as a New Real Estate Agent