If you’re thinking of selling real estate part-time, it can be a lucrative side business. As with other business opportunities, it takes time and money. Are you already a real estate agent or thinking about starting a new career? Do you want to go back to school and become a licensed real estate agent? Selling real estate part-time without giving up your day job can be a fun financial journey; but is the second job or a new career move worth it? Read on to find out.
How To Get Started
Get Licensed
Educational qualifications vary, but it requires you to take pre-licensing classes and an exam to become a real estate agent. You may do your coursework online. Find out exactly what you need to do in your state to get your license. Look for these on the state’s real estate commission website. Enroll in and finish your coursework. Pass the real estate prep exam and apply to your state’s real estate board for a license. It takes up to a month to get your license approved.
Find A Good Brokerage
Brokerage support varies. As a part-time agent, you want to work somewhere where you’ll be able to develop your skills and keep your business on solid ground. You will want to interview the list of candidates and get to know each one of them. When you have a brokerage, don’t forget to complete your license with proof of employment.
Time Management
Selling real estate, even part-time, can be a lot of juggling. You have your full-time job and family, yet clients want a real estate agent on call. That means last-minute appointments, working early or late hours, and trying to fit as much as you can into one day. But you can do it. Here are a few tips to make the most of your time selling real estate.
Lead Generation
Take two hours a day to lead generating activities. Go over your list of past clients and see if you can get any referrals. Work on your blog. Read over your reviews to make sure your reputation is spotless, post to social media, or schedule an open house. Whatever you do, just try to find new clients.
Set Expectations
When you find those new clients, you need to be clear about when you’re available. If you have to take the kids to soccer practice every week; you are not on the clock.
Find Administrative Help
Paperwork will not sell houses. Join a real estate group that will handle the administrative tasks for you. Concentrate on finding new business and working with the clients you have. An administrative team will also help you schedule appointments and give you a more professional presence.
How Much Money Can Part-time Agents Make?
Real estate agents work on commission. It could cost you up to $2,000 for license fees and other expenses associated with the business. Selling real estate isn’t a guarantee you will make any money.
According to one study, real estate agents who worked less than 20 hours a week earned an average of just over $31,000 per year. The number is definitely better than working in fast-food or delivering groceries, but it’s not something to leave your full-time income for.
Real estate agents who worked between 21 and 40 hours per week earned roughly $56,000 a year.
It may take years before you can leave your other employment and sell real estate full-time. Many people sell real estate as a second career. According to one survey, only 4% of people said that real estate was their first career choice.
Factors That Determine Your Earning Potential
The Real Estate Market
It may be fairly obvious, but the stronger your real estate market is, the more likely you are going to earn money. During Spring of 2019 some of the hottest real estate markets were:
- San Francisco-Oakland-Hayward, California
- Modesto, California
- Columbus, Ohio
- Boston-Cambridge-Newton, Massachusetts-New Hampshire
- Midland, Texas
- Colorado Springs, Colorado
- Odessa, Texas
- Sacramento–Roseville–Arden-Arcade, California
- Stockton-Lodi, California
- Lafayette-West Lafayette, Indiana
The Niche You Are In
Your chosen real estate niche can positively or negatively affect your earning power. Some more lucrative niches are catering to buyers who are downsizing. Baby Boomers and Gen X are becoming empty nesters. Millennials and Gen Z want a minimal lifestyle. All groups want to take up less space.
Vacation rentals are also a money maker. But if you specialize, give it some thought. It could make or break your part-time business.
How You Market Your Business
It takes marketing money to make money. Real estate agents spend money to get clients, list and show properties, and build their brand. But you want to track and test what you spend and the return on your investment.
Your Longevity
Just like any other career, getting over the learning curve in selling real estate takes time. But the longer you stick with it, the closer you get to making a decent income. Don’t let the short-term money crunch keep you from your long-term goals.
Is Selling Real Estate Part-time the Right Move?
- You might be the right person to be a part-time real estate agent if:
- You are a shift employee working part-time at another job
- You have children in school and are a stay-at-home parent
- You are already working for a real estate office, but not selling real estate
Pros and Cons
For those of you who like list the pros and cons of any decision, here are the pros and cons of selling real estate part-time.
Pros
- More income
- Skill building
- Expand your social circle
Cons
- Upfront expenses
- Clients don’t like part-time
- Time crunches
Being a part-time real estate agent has its perks. You have the flexibility to work the hours but fit into your already busy schedule. You have the opportunity to help people find the home of their dreams. But it is not without its sacrifices. You have to take a leap of faith into the exciting world of selling real estate. Only you know for sure if you are ready.
