6 Things to Know Before Becoming a Real Estate Agent

You may be considering a career switch to real estate after having recent experience buying or selling a property. Perhaps you want to become a real estate agent because you have seen recent headlines about Ohio’s hot real estate market and want to take advantage of this exciting time of growth and prosperity. Regardless of your reasons for wanting to become a real estate salesperson in Ohio, here are some things to know before becoming an agent.

Key Takeaways

• It is essential to enter real estate with an understanding of income potential. Agents should be prepared for a slow start, have a financial cushion, manage taxes carefully, and consider commission splits with brokerages.
• Real estate offers a flexible schedule but requires a significant time investment, especially when starting. Success is often linked to the number of hours worked.
• Building a client base through networking is crucial, as is having a mentor to guide new agents through the industry’s challenges and help avoid common pitfalls.
• Understanding hyper-local market trends and conditions is vital for success. Agents must stay informed through various resources, including MLS data, local reports, and community involvement.

Understanding the Ohio Real Estate Industry

There are some things you need to understand about the Ohio real estate industry – and the role of an agent – before switching careers. Of course, you’ll learn about real estate laws, regulations, and processes from your Ohio pre-license courses. But here are some tidbits that could be described as “things I wish I knew before becoming a real estate agent.”

1. Income potential and financial considerations

Many people enter the real estate industry because they are drawn to the idea of unlimited income potential. There’s no cap on commissions. You can earn a great income as an agent in Ohio through hard work and determination.
However, keep in mind these key points about earning a living in real estate:

• It’s common for real estate agents to have a slow start. It’s best to have a nest egg of at least three to six months of expenses before working in real estate full-time.
• Real estate agents must pay quarterly taxes out of their earnings. You must save back enough of your commission checks to pay Uncle Sam.
• You will agree to a set commission split when you sign on with a brokerage. Carefully analyze each deal. Getting a greater percentage isn’t always the best deal since some brokerages offer many benefits in return for a greater portion of your commission.

Some real estate agents find success by focusing on a niche market, such as commercial real estate or condos. Others diversify their income streams and work for brokerages with property management services.
While working as a real estate agent gives you excellent income potential, it’s critical that you understand that real estate is a long-term game – not a get-rich-quick scheme. Perseverance pays off!

2. Time commitment and flexibility

You’ll learn more about income potential by downloading the Hondros Salary Guide for Ohio real estate agents. In this guide, you’ll notice a direct correlation between how many hours an agent works and their income.

However, real estate agents enjoy a flexible schedule. While you may be working long hours – especially when trying to get your business off the ground – you can choose when to work. This makes real estate an excellent option for those with family commitments or other jobs.

Related article: Thinking About a Career Switch? Here’s How to Get Your Real Estate License in Ohio

3. Networking and building a client base

You may have heard the adage, “It’s not what you know; it’s who you know.” While that’s not entirely true, networking is critical as a real estate agent.

The best way to get started networking is to inform your sphere of contacts and associates that you are a licensed real estate agent. To get to know others in the industry, start by attending a Hondros College Career Expo. These monthly events will allow you to network with recruiting brokers, learn about your local market, and learn tips on how to start your new career.

Related article: 5 Ways to Network as a Real Estate Agent

4. Support systems and mentorship

Having a support system and a mentor is crucial for new real estate agents as they navigate the industry’s complexities. Your support system may include friends and family, who offer emotional encouragement during challenging times. While it’s important to have these people in your corner, it’s also critical that you have a mentor who understands what it’s like to be a new real estate agent. A mentor helps new agents understand how to avoid common pitfalls while assisting them to develop the skills needed to succeed.

When interviewing real estate brokerages, ask about their mentorship programs. Having a great mentor is crucial to your success.

5. Market trends and local knowledge

Market trends and property values vary from city to city – and neighborhood to neighborhood. Becoming a real estate agent requires understanding hyper-local trends and your targeted client’s unique demands.

For example, did you know that Columbus, OH, had the fourth-highest rent increase in the country last year? Rental rates increased 17% from February 2023 to February 2024. At the same time, there is a relatively low vacancy rate. The strong rental market is good news for real estate investors and agents focusing on this niche.

How do you learn about local market trends? Here are some common ways real estate agents stay informed:

• Local Multiple Listing Service (MLS)
• Market reports
• Networking with other agents
• Attending local real estate meetings
• Brokerage resources and support
• Online real estate platforms
• Community involvement
• Continuing education
• Local news and publications
• Customer feedback
• Social media and online forums
• Real estate conferences and expos

6. Skills and qualities for success

One of the most critical things to know before becoming a real estate agent is the importance of aligning yourself with a quality real estate school. Your real estate school will help you become a real estate agent by earning your license. However, Hondros College offers so much more.

Hondros College offers advanced training opportunities in the luxury market, helping you increase your income. We provide industry insights and resources, including helpful content on the NAR lawsuit settlement. Our highly rated-instructors will support you through the licensing process and help you pass your exam while also offering insights and encouragement about succeeding as an agent.

To learn more about becoming a real estate agent, attend one of our in-person or livestream Open House events sponsored by Hondros College.

Source:
Boldizar, Ava. “Columbus among U.S. Cities with Highest Rent Increase over Past Year, Report Says.” NBC4 WCMH-TV, March 15, 2024. https://www.nbc4i.com/news/data-desk-ohio/columbus-among-u-s-cities-with-highest-rent-increase-over-past-year-report-says/.