When you entered the real estate industry you probably did it with one primary goal in mind: to make money. A six figure salary is difficult to attain as an agent though. It takes years of building your network, constant hard work, and dedication to achieve the monetary return you dreamed of when you entered real estate. So what can you do to help accomplish that? “How to increase your income as a real estate agent?” is a question that has plagued many new and experienced agents alike. Lucky for you though some of the most effective and efficient ways to accomplish that are explained below.
Broaden Your Expertise
A majority of agents have a specialty they focus on primarily, or in addition to accepting general clients. This is such a widespread practice because when you gain expertise in a specialty, you become more valuable. For example, many agents gain experience being a property manager, relocation specialist, or rental property agent. These specialties can become extremely profitable, and the work for them can be done in addition to serving the clients you already have.
Being able to successfully represent and serve niche groups will open up your options for clients. Attracting more clients to your business is a reliable way to start increasing your income as a real estate agent.
Perform Third-Party Price Analysis
Banks, insurance companies, municipal governments, and construction companies all need the services of a real estate agent more than you would think. These entities often need a price analysis on homes, which is where you come in. Say a property owner defaulted on their loan and now the home will be sold by the bank. Oftentimes the bank will reach out to multiple local agents in order to attain an accurate comparative price analysis to determine the value of the home.
The trick to landing this type of work is to get your name in with a company early. Reach out to local banks, construction companies, etc. and start networking with them. Make sure they know that you are ready and eager to help them with their business endeavors. These types of companies can offer you excellent work that would help you achieve your salary goals. This is especially true if you are able to make a strong relationship with a construction company.
Construction companies are unique regarding third party work because they could need your services in two different ways. They need your expertise to consult on the potential placement, as well as build features of a home. Then once the home is built someone has to be the listing agent for it. If you know the home best, you can easily advocate yourself to be the listing agent on the property. So take some time to research the local construction companies and the builds they take on. You may be able to find the best partner in real estate that you never saw coming.
Invest in Real Estate
Investing in real estate is a way to increase your income as a real estate agent that you definitely should be pursuing. As an agent you are in the perfect position to be a successful investor. You already have a great understanding of the local market, and you have access to properties before they become popular. Thus allowing you to determine when a home is a good investment, and then snatch it up before someone else takes it.
Now, as you know investing in real estate can be extremely expensive. That is why it is a good idea to take on your first couple investments with a team of other real estate professionals. Together you can build your funds faster than you would be able to alone. You will also be able to benefit from their market knowledge, and differing perspectives. It would be a good idea to bring on an attorney, contractor, and banker, in addition to yourself. Giving you a well rounded scope of knowledge for anything that would happen to come up throughout the course of your first few investment properties.
Lastly, becoming a real estate investor yourself would give you the preparation and experience needed to effectively start serving other investors. Investors are often a difficult clientele base, but with personal experience in their field of interest you will be able to understand, and serve them better than an agent without that experience. Surely catching the attention of investors all over your local area.
Continue Your Education
It is not required to have a bachelors or masters degree as a real estate agent, but it is still a good idea to pursue at least your bachelors degree. Many agents hold degrees in fields relating to business, marketing, or sales. The experience and knowledge a degree offers you puts you in a position to grow your business exponentially. It is also a major selling point for clients. Advertising the fact you have a degree will catch clients attention, establish trust faster, and could be the deciding factor between you and another agent.
Data and analysis produced by the NAR shows that agents with degrees earn at least 5% more than their counterparts. There is also evidence that more degree holders make over $100K, compared to those without a degree. Earning your degree can truly put you over the top as an agent, but if college isn’t your thing you have another option.
Real estate continued education courses are constantly available, and a more cost-effective option than college. Some of these courses are required to maintain your license, but you have the opportunity to take as many as you want. You won’t earn a formal degree from taking these courses, but you will gain more knowledge and expertise. Setting you up to better serve your clients.
Study Under an Experienced Mentor
If the option is available to you it is always a good idea to study under a mentor. Mentors, especially one specializing in your field of interest, can give you the experience you need to take your business to the next level. Agents with decades of experience know the ropes, and rules of the game when it comes to real estate.
Studying under one of these agents gives you the opportunity to skip over the trial and error entry period of real estate. They can tell you what will work and what won’t before you invest your time and money into an idea. Thus giving you a headstart on how to be successful in a specialty. That kind of headstart is definitely an opportunity you want to seize. So go out and search for a mentor, it may be the best decision you ever made for your career.