Can You Be a Real Estate Agent Part Time? (2024)
Go Back To Previous PageThe real estate industry is known for its dynamism and diversity. People often wonder if they can pursue real estate as a part-time job and have a license as a backup option while continuing with their primary job. The answer is yes, but it requires careful planning and a thorough understanding of the complexities involved. We will discuss real estate agents as
part-time jobs and explain how to close as many real estate transactions as possible.
A career in real estate often attracts people looking for a second job. It offers a way to earn extra income flexibly and enjoyably. In real estate, you can choose your path.
You can set your goals and decide how much you want to commit. You can also enjoy unlimited earning potential. “Can I be a part-time real estate agent?” The short answer is: Yes!
Many individuals looking to advance their real estate careers may start as part-time agents to build their networks. Others might sell real estate part-time to supplement their income while maintaining their primary jobs. Becoming a real estate professional can be a rewarding experience, mainly because of this industry’s flexibility.
Understanding the Basics of Part-Time Real Estate Practice
Becoming a part-time real estate agent is allowed, as no laws restrict an agent’s work hours.
This flexibility can be attractive for those who want to supplement their primary income. However, it’s crucial to approach part-time real estate work realistically. Although the profession can be lucrative, it requires a level of commitment that many people underestimate.
If you want to be a part-time agent, don’t expect to earn commissions just by having your license. You need to do the necessary work.
Joining the Right Real Estate Brokerage
If you want to become a real estate agent, getting a license is mandatory, whether you work full-time or part-time. You must complete the required pre-licensing courses, obtain licensure, and pass relevant exams, such as the state and real estate licensing exams.
You must keep learning to keep your license active. This helps you stay updated with the latest changes in the field.
NestApple is unique in the residential real estate industry for its welcoming attitude towards part-time agents. Unlike most brokerages, NestApple is open to working with part-time agents, and over half of our agents maintain part-time status across NestApple and our partner brokerage brands. This is a testament to our flexible approach and understanding of our agents’ diverse backgrounds and commitments.
Choosing the right brokerage is crucial when balancing real estate with other commitments. It’s about finding work and receiving support, mentoring, and guidance.
Challenges for Part-Time Real Estate Agents
Understand the challenges that part-time agents may face. A significant issue is potential clients’ skepticism. Many clients prefer agents who can devote themselves fully to a transaction.
As such, a part-time agent may seem to have divided loyalties, which could affect their credibility with clients.
In addition, having a limited presence in the office or the field could pose difficulties for lead generation in the real estate industry. Networking, connections, and regular communication are crucial elements for success.
While working part-time in real estate is possible, it requires careful planning and practical time management skills.
Strategies to Thrive as a Part-Time Real Estate Agent
Embarking on a part-time real estate venture without a clear strategy can be daunting.
To maximize your time and capitalize on your existing networks, it’s essential to formulate a comprehensive business plan that provides a roadmap. This plan should outline how to leverage various marketing strategies to establish a strong presence in the industry. With a well-crafted business plan, you’ll be better equipped to achieve your goals and succeed in your real estate venture.
- Building and maintaining a strong network is crucial in the real estate industry. Your connections, acquaintances, and peers can be valuable assets in generating business. Informing them about your venture and how you can assist with buying or selling property can be the first step in securing deals and increasing your net worth. Remember, engaging with your network is critical to success in real estate.
- Advertising and marketing are crucial aspects of the real estate industry, especially for part-time agents. Proactive promotion, such as leveraging social media platforms, engaging in local newspaper advertising, or collaborating with other agents, can be the key to staying relevant and successful. Agents must remain up-to-date with the latest advertising trends and strategies to promote their listings and services effectively. Marketing a tenant-occupied property for sale requires specialized strategies to establish expertise and differentiation.
- Delivering Exceptional Service: A successful transaction can lead to referrals and repeat business. For part-time agents, the emphasis should be on quality over quantity. Offering impeccable service, understanding client needs, and ensuring smooth transactions can bolster reputation and credibility. Remember, doing well with your first client is how you get referrals and your second client.
Earnings and Compensation
The majority of earnings in the real estate industry come from commission-based sales. This is true whether you work part-time or full-time. Commission rates usually range from 2.5 percent to 3 percent of the sale price of a property.
As a result, a small number of successful transactions each year can lead to significant income. Earning potential varies greatly in real estate careers.
To calculate your expected annual salary, follow these steps. First, find your average income from each sale. Then, multiply that amount by the sales you wish to make in a year. If you sell two houses for an average price of $500,000 each and earn a 3% commission, you will make $15,000 for each home.
This means your total income will be $30,000. You can earn money if you refer five clients to other agents, and each client buys a $500,000 home. You will get 25% of the agent’s 3% commission. This means you earn $3,750 for each client. In total, you will make $18,750.
How Is Your Real Estate Commission Determined?
As a part-time real estate agent, your commission on the sale of a property depends on several factors. The primary determinant of your commission rate will be the agreement you establish with your broker.
After a real estate deal is completed, the commission percentage from the listing contract will be paid. This payment goes to the broker and others listed in the document. Your commission share will then be distributed to you according to the contract terms.
The commission from a real estate sale can be split among several people, including the buyer’s broker and agent, and the seller’s broker and agent.
So, can you be a part-time real estate agent?
In summary, becoming a part-time real estate agent can be profitable but comes with challenges. A part-time real estate career remains challenging.
Planning, learning, and improving your skills are essential to succeed, leveraging your existing networks, and providing exceptional client service. If you develop a passion for this field, you might be able to move into a full-time job. This could make real estate your primary career instead of just a way to earn extra money.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
