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9 October 2008

Should I Get My Real Estate License?

By reflex the answer is “yes.” But the answer really is, “it depends.”

Now more than ever it is important that we are extremely selective when hiring new agents. We owe it to them, we owe it to our current agents and we owe it to ourselves.

For the potential new agent just entering the industry, you have to admire their courage. In spite of the daily barrage of media, people all across the country are still becoming licensed and choosing real estate as their career. We owe it to them to make sure they have all the info they need when making this decision and we owe it to them to provide them with the systems, training and support necessary to make their new career work. If you are not prepared to invest in their success to a higher degree than you’ve ever done before, don’t hire them. They deserve better.

To our existing agents, we owe them a duty of selectivity. Sure it’s great to announce a new addition to the team, but if the existing agents just roll their eyes and groan, there’s a problem. If these seasoned agents are feeling vulnerable and challenged by the current conditions, imagine the impact that will have on your new agent. Also, imagine the impact on your company if the new agent comes and goes from your office without ever making a sale or taking a listing. It is a lose-lose scenario all the way around.

Lastly, we owe it to ourselves. If you’re a brokerage owner, you are well aware of the hard costs associated with every agent in your office. Not only in fixed overhead costs; but in opportunity costs. If that untrained agent loses just one inquiry, what does that mean to your bottom line? Let’s say you bring in 5 new agents per year who lose 10 transactions for your office; that could be a loss of over $60,000 in gross commission income (assuming an average sale price of $250,000 at 2.5{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} commission). And that is just scratching the surface.

Qualifying, interviewing, and training the right recruits are critical to the success of your business.

4 thoughts on “Should I Get My Real Estate License?

  1. I am one of those couragous few in the process of my pre-licensing course now. I see this market as an opportunity to learn when the going is tough. If I can work hard and “make it now”, I’ll take nothing for granted in the future. I’m also more fortunate than most because I’ve been a VA in the industry for almost 10 years and have a lot of experience on marketing end of the business. I’ve also had the benefit of working with top notch professionals in their markets from a variety of companies. I plan to interview brokers thoroughly because I know I will be an asset to whatever company I choose and in light of this article, I hope they interview me just as thoroughly to demonstrate their desire for quality candidates.

  2. Thoughtful post, Wendy. I discovered you this morning via twitter!

    As a partner at one of the top online real estate schools in the US I found your article very interesting. Thanks for sharing your Broker Services perspective.

    I do believe that people like Pat Williams who posted above, will find great rewards in this field. It does take some bravery to enter now but I learned a long time ago that the best time to get into a thing is when it’s in a down cycle. That way you are there to take advantage of the entire upward move. A “recovery” in real estate isn’t guaranteed but history says that it is the most likely outcome. We’re seeing more and more signs of it every day and we share that news with readers at our “Good News in Real Estate” blog.

    Feel free to visit and post!

    David

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