How to become a real estate realtor from scratch » Where to start and what you need to know

Most people at different stages of life have to deal with the real estate market and realtors, without whom it is almost impossible to get into this market. And it doesn’t matter whether you are going to rent, rent out, buy or sell square meters, it is very difficult to complete a transaction without the help of an intermediary. Accordingly, we can assume that working in this area will bring a lot of money, and it is worth seriously thinking about how to become a successful realtor. But you will have to master a lot of theoretical aspects and learn the intricacies of real estate mediation from experienced brokers.

Who is a realtor?

A realtor is usually called an individual or organization through which real estate transactions are carried out. The name of the profession comes from the English designation for real estate “realty”.

The term “realtor” is not fixed in the current legislation of our country; people working in this specialty in the official language are called real estate agents.

Realtors act as intermediaries between sellers and buyers in the case of the purchase and sale of real estate, or when concluding a lease agreement. Brokers not only bring together the seller and the buyer, the landlord and the tenant if the proposed option meets the requirements, but also accompany the transaction, monitor the interests of both parties, the legality of the agreements and become witnesses to the transactions taking place. Therefore, the legislative framework is not all that a newbie realtor needs to know. Finding suitable options and organizing viewings of real estate are not the only responsibilities of real estate agents; before becoming a realtor from scratch, you will need to learn a lot of nuances. A professional broker accompanies transactions at the time of conclusion of the contract, participates in the process of obtaining title documents for the purchased property by the new owner, and signs the work completion certificate. Among other things, a realtor is a kind of insurance against fraudulent activities in real estate transactions. Therefore, having work experience is a must before starting a real estate business. A good realtor knows how to correctly talk about the advantages of a property and point out its shortcomings, masters successful sales techniques, and works well with objections. After working with a professional broker, clients are always satisfied with the result and are ready to recommend a good specialist to friends and acquaintances.

Realtor education

Previously, a person with suitable skills for the job could work as a realtor, even without a higher education. However, recently the situation has changed and the presence of a diploma by the applicant significantly increases the chances of becoming an employee of a real estate agency. Today there are special courses and trainings, by completing which you can gain certain knowledge and skills, as well as understand how to become a real estate realtor and where to start:

Operations with residential and non-residential real estate;
Courses for beginner brokers will explain to dummies how to become a successful realtor;
Courses for professional real estate agents. How to become the best.

Thus, specialized programs can help acquire and improve the skills of a real estate agent. However, education as a lawyer, psychologist, economist, engineer will never hurt, but will help you become a good realtor.

Many universities offer training in the specialty “Expertise and management of real estate”. Before starting to work as a realtor without experience and those who see themselves in this field, it is necessary to obtain specialized education. Of course, there are specialists who have achieved considerable heights in the field of real estate trading without having a higher education. But they are rather the exception to the rule. If you think about where to start working as a realtor, the answer will be – with higher education. People with a diploma are more trainable, easier to master new technologies, analyze information and learn from experience. The general education component is also important. People with higher education know much more, are able to competently hold a conversation on any topic, and then skillfully lead the conversation to a discussion of the clauses of the contract. Over time, it becomes clear who can count on a promotion and who will continue to do menial work. The process of becoming a realtor as a professional begins only when he begins to directly perform his duties. In practice, a novice agent hones his skills and fills knowledge gaps by self-education. How to become a real estate realtor from scratch? – Find a mentor and adopt his knowledge and experience.

Where to begin?

It is always difficult for beginners to start their own business. Be prepared for the fact that you will have to overcome many difficulties. If you have never worked independently, you should remember that now no one will mentor you or tell you anything. So get ready for free sailing. Before starting your own business, it is advisable to work in a team. Thanks to this, you can gain invaluable experience that will be useful in the future. In addition, clients trust agents who have worked in large companies more.

Realtor is a fairly profitable and successful business. This business can be done in two ways:

Private realtor

A simplified option is a private realtor. To do this, you need to have a desire, a telephone and a recent newspaper with advertisements. In addition, you should familiarize yourself with all laws relating to this area. Seek help from experienced professionals who can tell you what a realtor needs to know. Learn how to draw up sales and purchase agreements and you can get to work. The second option is to open your own real estate agency. Set a goal for yourself and work not for quick profits, but so that your business becomes successful and brings in a solid income. In this matter, a lot depends on connections, perseverance, knowledge and, most importantly, experience.

In addition, you need to decide on the direction of your activity:

Scheme: real estate business

Apartments;
Country houses;
Commercial real estate;
Rental of property.

If you take on everything at once, it is impossible to achieve a positive result. Over time, when you understand how to become a successful realtor, you can gradually expand your scope of activity.

What qualities should a professional realtor have?

Responsibility, activity, high efficiency are important qualities of a good broker.
The realtor's knowledge in such areas as pricing in the real estate market, price dynamics, and the legislative framework for the alienation of real estate must be fresh and comprehensive. And over time, a successful agent will be able to think about how to open a real estate agency from scratch and successfully apply the experience and knowledge gained to develop their own business. What does it take to become a realtor? In addition to knowledge of the legislative framework and the nuances of real estate valuation, a realtor must be:

Sociable. This quality undoubtedly plays a key role in the real estate process. The broker must successfully communicate on business issues with sellers and buyers, tenants and landlords, employees of utility services and passport offices. In addition, very often an agent needs to find the right words, support the client in a difficult situation, help make the right choice, or even just be a “vest”. A professional broker must have well-honed communication skills, be a psychologist and be able to persuade;
Organized and punctual. Lateness and inconsistencies can serve as a reason for the failure of the deal;
Be flexible and be able to achieve your goals. To find a compromise between the parties, the broker must be able to maneuver among the arguments of the parties and skillfully negotiate. However, the ultimate goal - closing a deal - must certainly be achieved. Since, excessive flexibility will not allow a novice realtor to stay afloat in the raging ocean of competition;
Tactful, well-mannered, able and willing to listen. The combination of such qualities will not harm any profession that is closely related to communication.

What to do if you can’t become a realtor yourself?

Many realtors come to AJAX who have already tried their hand at “solo sailing”: as practice shows, working for a company is much safer and more profitable. So, we really don't recommend that beginners enter the market on their own. And you need to look for an employer very carefully: it is important that the company adheres to the principles of one hundred percent transparency, works according to the standards of the Russian Guild of Realtors, and strictly maintains document flow.

To understand which agency is right for you to start with, pay attention to the following factors:

Where is the office located?

The closer the offices are to the center or the more of them there are in the city, the higher the flow of clients.

Company age

If the company is only a year old, it is unlikely that all its operating mechanisms have been adjusted: look for those who have been in the real estate market for decades. This guarantees at least quality training.

Responsibilities of a realtor

The responsibilities of a real estate agent are quite wide:

Search, study, selection of real options for purchase, sale or rental;
Consultations on certain characteristics of housing and the degree of compliance with their stated requirements;
Assistance in agreeing on controversial terms of the contract;
Assistance in collecting the necessary package of documents (certificates from the housing office about the absence of debt on utility bills, an extract from the apartment, confirmation of the absence of additional applicants for living space);
Monitoring compliance with the terms of the contract (timely vacation of the apartment);
Drawing up reports on the work done (receipt of receipt of money and no claims to banknotes);
Responsibility for the legality of the transaction.

Therefore, taking into account the list of agent responsibilities, the question is: “How to become a successful realtor in just two months and create a queue of clients?” It will be somewhat shocking for beginners.

Realtor Responsibilities Scheme

Where can I work?

Before becoming a successful real estate agent, you should work with an agency. Like any profession, the profession of a realtor requires mentoring from senior colleagues and gaining the necessary experience.

Renting residential and commercial real estate

A good start would be to conclude residential lease agreements. The housing rental industry typically concludes 10–15 transactions per month. But the commission here is low. Daily rental allows you to quickly gain experience, but at the same time it is the least profitable. Nevertheless, working in this area will help you quickly gain experience and answer the question: “How to become a private realtor?”

You will have to work in the field of commercial real estate with office premises, warehouses, stores and other similar objects. The average number of transactions is 4–10 per month. Commercial real estate specialists must know all the decrees permitting its use and the rules for the operation of non-residential premises and buildings.

Buying and selling real estate

Buying and selling real estate is the most responsible and profitable area of activity for realtors, but the number of transactions even with professional brokers usually does not exceed 2–4 per month.
Working in this area will be difficult. Real estate agents usually specialize either in the sale of apartments in new buildings (“primary”) or in the sale of “secondary” housing market properties—not new premises that are ready for habitation. Primary professionals work closely with banks, since many buyers need help when applying for a mortgage loan and carefully check the developer. And resale specialists must be able to find options for used housing that best satisfy the client’s requirements. In addition, it is necessary to thoroughly check the identity, adequacy and proof of ownership of the seller.

Work in the field of purchase and sale of countryside and luxury real estate is the most difficult and highly profitable. A realtor working with such housing must, among other things, understand land law, be able to please rich and demanding clients, and find options with an equipped entrance and developed infrastructure nearby. All of the above should be harmoniously combined with the surrounding nature and not too far from the city.

Should you work alone or for an agency to achieve success?

Before becoming a realtor on your own, a novice broker must get a job at a real estate agency. The first few years, newcomers learn from experience, master the intricacies of the profession, and gain a reputation and clients. Clients will not deal with an unknown newcomer, and a career may end before it even begins.

Advantages of working with an agency:

You only manage clients, lawyers handle the paperwork;
The employer protects newcomers from “difficult” clients;
No need to bother with taxes, the company will pay them.

When choosing an agency for employment, you need to pay attention to the length of its existence on the market, reputation, working conditions for employees, location, and frequency of the agency posting vacancies.

Before you start working as a realtor on your own, it is worth acquiring quality experience in working with real estate and building up a client base.

If your success as a real estate agent is beyond doubt, you may want to consider starting a real estate agency from scratch. After working for several years in this area, you will probably outline the field of activity for developing your own real estate business, decide on the staff and the starting client base. To open an agency you will need about 500,000 rubles. With a competent approach, the payback will be 6–8 months. The business plan of a real estate agency must necessarily take into account the costs of registering a business, certifying agents, and advertising.

How does a realtor make money?

Today, the real estate market is structured in such a way that it is almost impossible to agree on the purchase or rental of real estate directly with the owner, since emerging options instantly fall into the databases of real estate agencies and are available for viewing only with a broker. Typically, the buyer or tenant pays the commission. Therefore, it is even more convenient for the home owner to arrange viewings with a real estate agent than to answer calls and schedule viewings himself.

How to make money on real estate in Russia? The cost of real estate services is 50–100% commission on the monthly rental price or 2-5% of the purchase and sale transaction amount. Each individual real estate agency, like any broker, sets the price for their services individually. The client pays a commission for the realtor’s search for a suitable option, organization of viewing, participation in auctions, support of the transaction, and guarantee of legality.

Of course, the larger the transaction amount, the higher the income. But sometimes agents resort to some tricks that help them close deals and earn less, but more often. For example, the owner wants to get exactly $100,000 for an unremarkable apartment. The apartment has been put up for sale many months ago. But the realtor has a buyer willing to pay 90,000. He organizes viewings of the stagnant apartment with “decoy ducks” who talk about an incredible number of similar offers for 90,000, and the broker voices the opinion of experts whether it is worth selling the apartment in 2021. Over time, the owner begins to think that his option is indeed cheaper, and then the realtor brings a real buyer, closes a long-term deal and receives his commission.

When selling really bad options, professional brokers use a comparative method: they offer two “killed” apartments at different prices, focusing buyers’ attention on the obvious advantages of one and the critical disadvantages of the second. A client who wants to acquire square meters will choose something, having first listened to the opinions of experts on whether it is worth buying an apartment in 2021.

Thus, the level of earnings of a professional realtor also depends on creativity and resourcefulness.

How much can a realtor earn?

A realtor's earnings depend on the number of transactions he concludes.
According to statistics, in Russia the salary of real estate agents is 50–60,000 rubles. per month, but these amounts are very approximate and depend on many factors, including the hard work of a particular realtor. Basic earnings are a percentage of the transaction amount. However, there are realtors who manage to make good money by providing related services, such as real estate valuation. How to become a real estate appraiser? — To do this, you need to have a higher education in economics or law, then undergo training in appraiser courses, join the SRO (self-regulatory organization of appraisers) and hire an assistant to an experienced specialist to gain experience in appraising real estate.

A good appraiser earns 40–80,000 rubles. per month or more. This profession is in high demand and promising, so it is worth spending time and money on mastering it. For appraisers, reputation is also important. Since a specialist is obliged to determine the value of property as accurately as possible, deliberately overestimating or underestimating the estimated value may lead to the end of a career in this field.

What is the difference?

The difference is that to work as an agent you do not need to pass a qualifying exam. The agent has limited powers in preparing and conducting the transaction and only assists the responsible realtor.

Realtors are specialists who have passed special certification by the Ministry of Justice. They can provide the same services as agents and have greater authority in preparing and conducting a transaction. The realtor responsible for the transaction is responsible for issues related to checking the legal history of the property.

How to become a successful realtor: recommendations and tips

They say that realtors are not born, but made.
And the best achieve success. And so, how to become a good realtor and what you need to know and have for this:

Look well-groomed and neat;
Work on your communication skills;
Learn to express your thoughts competently and beautifully;
Master persuasion skills;
People like to learn;
Know how to drive a car.

It is more pleasant for buyers and sellers to communicate with a neat, competent, tactful, but at the same time confident in himself and in what he does, realtor. Having your own car and the ability to drive it well will allow a real estate agent to quickly and comfortably move from one property to another. This will save time for both him and the client, indicate a certain status of the agent and increase the level of trust.

How to become the best realtor and what you should get rid of on the path to success:

Uncertainty. A successful realtor must always be confident in himself and in what he is trying to sell or rent. Uncertainty is felt at a distance and interferes with the intermediary business. If you think that you will not be able to implement a certain object, it is better not to take it on;
Shyness. Real estate is not for shy people. You cannot become a successful agent with such a characteristic;
Impudence and rudeness. These qualities are generally unacceptable for a cultured person and must be eradicated.

In addition, train yourself to clearly plan your day, despite a free schedule, study the basics of economics, understand the intricacies of mortgage lending, learn to forgive people for their shortcomings and think positively.
In light of the unstable economic situation, you should also know the pros and cons of investing in real estate in 2021. We told you in detail how to become a successful realtor and what you will need for this. If you decide to master this profession, we wish you success.

How to become a realtor

First of all, realize that in this profession financial flows do not flow to beginners as if from a cornucopia. The phrase “beginners are lucky” is not about realtors. Therefore, take care of the financial cushion for the next two to three months while you study and build a client base.
Browse through the vacancies offered on all resources. Note which qualities are especially valued by the employer. Develop them within yourself. Well, or at least indicate them in your resume in the hope that someday you will develop these qualities in yourself.

Choose to work with a real estate agency that has been on the market for many years. It is not necessary to choose the largest; most likely there is fierce competition, and no one will just share their knowledge. It's great if the employer provides training opportunities. Most likely, this will be an experienced mentor who will teach you the basics of the profession.
Be sure to study time management, or at least start a diary. It is impossible to remember everything at once, but recording it on paper or other media is simply necessary.
Study the current legislation. There is no official real estate education in the country, so legal education is most suitable for this work. Even if you haven’t worked a day in your specialty. The Internet is full of information on how to correctly draw up a contract, how to conduct a transaction, and what documents to prepare. Read about the experiences of other specialists. Be sure to double-check their information for compliance with the law. After this, you will have a basic idea of what you should do in the first step.
Give your activities a legal basis. If you plan to work in splendid isolation, do not be lazy to register an individual entrepreneur. Clients want to understand who they are giving their documents and money to. Legally, the relationship between a realtor and citizens is not defined in any way, is not regulated by anything, and all issues and difficulties are considered in the general legal framework, so the client tries to insure against an unforeseen event by contract.
Take care of your presentable appearance. You will be greeted by your clothes at your new place of work. Therefore, be neat, elegant and not pretentious.

Learn to inspire confidence. Be open and friendly. Speak simply, but without jargon or other words. Understand the client. This is half the success. Constantly improve your persuasion and people communication skills.
Don’t be afraid to make mistakes, don’t hesitate to ask more experienced employees what you don’t understand. And don't forget to thank them for their help.