Becoming a Real Estate Agent
It is very easy to become licensed to sell real estate. All you must do is fulfill the requirements of your state for class time and then take and pass the proper tests. There will be fees for the tests, of course, but for about a $1,000, you can be a fully licensed real estate agent, ready to sell land listings and homes.
Terms You Should Know
If you have finished the classes required then you already know the following terms, but for those just thinking about it, some definitions are in order.
- MLS—Multiple listing service. This is a place that realtors can access all the real estate on the market in a given area.
- Listing—This is the agreement between a homeowner and real estate agent in which the agent has the sole right to sell the home. Of course, the homeowners retain the rights to sell it themselves without paying the commission, but they cannot hire another agent.
- Land Listing—Same as above, only it pertains to the land only, no home included.
- Real Estate Agent—A person licensed by the state to sell real estate.
- Co-Broke—This is an agreement most real estate professionals enter into. It basically says that an agent can sell another agent's listing for a percentage of the commission. As the real estate saying goes, ''Co-broke or go broke''; this is an essential part of selling real estate.
While it may look like real estate listings are dismal, there remains one central fact: people will always need a place to live. Whether they are buying or renting they must live somewhere. It is at this point that investors will be looking to purchase from real estate listings. When the market is down as it is currently this is what is known as a buyer's market. Prices are down due to foreclosures and economic issues. To sell real estate in this climate you need to know where the buyers are. Right now, they are the investors looking for good rental property.
A few years ago the market was strong in people buying property to renovate and flip. The economic slowdown has made that a very risky proposition. Therefore, now that you know what kind of buyer you are likely to find you need to match the buyer with the property. This is where the MLS will come in quite handy.
MLS
A multiple listing service will have records of all the real estate listings for a specific area. Since you may be dealing with out-of-town investors, it is wise to know your way around this particular tool. Become familiar with using the tool and even do some research on some promising properties. This way when a real estate investor calls, you will be ready with all the pertinent details. In addition, you can add your own real estate listings and have them available to people all over the country.
Listing
The harder part of your job right now will be in getting listings that are reasonable. People are hard pressed and it will be difficult for them to understand that their home is valued less now than it was just a few years ago. Be understanding but frank with them; there is no point in listing a hundred homes that are overpriced and unlikely to sell. This is a delicate balancing act, to serve the homeowners' needs and make a sale at the same time. It can be done with some diplomacy and finesse.
Foreclosures
This is one area that many will not want to talk about, but it remains a promising area. The key here is to set up a win-win situation for everyone involved. If you are working with a homeowner in pre-foreclosure, you will need plenty of the above-mentioned skills. However if you can bring together a homeowner in trouble and an investor who is willing to purchase the home and save their credit, you have not only made a sale, you have also done something you can feel proud of.
Too many times people facing foreclosures are prime targets for those who want to steal their homes out from under them. Do not be one of those real estate agents; work instead to protect their interest. Do this and you can guarantee that when they are ready to buy another home, you will be the first one they call.
Conclusion
It is a tough market but not an impossible one. Know who to sell to and where to find good property for them and you will be able to stay in the game. Real estate listings need to be filled. Are you ready and able to fill them?
