How To Become A Real Estate Agent (With Skills And Salary)
By Indeed Editorial Team
Published 4 May 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Real estate agents help buyers find houses and commercial properties by acting as a middleman between them and property owners. They help both parties negotiate rates, finalise deals and process ownership documents. If you like interacting with people and are good at sales, becoming a real estate agent can be a good career choice. In this article, we discuss the steps that can help you become a real estate agent, explore the skills required to become one and learn about their average salary.
How to become a real estate agent
Below are the steps that can help you understand how to become a real estate agent:
1. Do your research
Like any other profession, it is important to do your research about the real estate industry before you consider building a career in the field. Look for information on the Internet, talk to other real estate agents and industry experts. Take lessons from their experience, ask about the challenges they faced and think of the ways you can overcome those challenges. If you have close connections with other real estate agents who can help you, you can accompany them during client visits and observe how they conduct their business.
2. Get relevant education
Even though there are no mandatory educational qualifications for becoming a real estate agent, you can enrol in professional courses designed for real estate agents. There are some degree courses such as BBA in real estate and urban infrastructure or MBA in real estate management. These courses can help you gain a formal education in the field and help you learn about the industry in-depth through a structured curriculum.
3. Choose a specialisation
As a real estate agent, you can handle residential properties, commercial properties or industrial real estate. You can choose a specialisation depending on your interests and on the demand in the geography you prefer. Once you have experience in your area of specialisation, you can also experiment with other types of real estate. Choosing a specialisation can ensure that you attract relevant clients only and can build your brand in that area.
4. Get the required licenses
As of 2016, it is necessary for real estate agents to register themselves under the Real Estate (Regulation and Development Act), 2016. The Real Estate Regulation Authority (RERA) then issues a RERA registration number that is valid for five years. If you decide to practise in multiple states, it is necessary to apply for a registration number in each state.
It is also necessary to apply for Professional Tax Registration, which is a tax imposed by the state government on professionals doing business with the state. This registration is valid only for a year. Registering yourself and getting the necessary licenses is one of the most important steps of becoming a real estate agent, as it can help build your credibility. It can show your clients that you are a verified, licensed professional who they can trust.
5. Create a plan
Once you have your real estate agent license, the next step is to create a plan for your business. You can choose to work with real estate firms in your initial days to gain some experience before starting your own real estate agency. You can also choose to partner with existing real estate agents, take franchises of reputed companies, become an independent consultant or a commercial broker. Irrespective of what you decide, it is important to create a plan about the path to follow, create a budget, build a business model, determine your strategy and set your objectives.
6. Market your business
The next step is to market yourself and your business. While building your real estate business, your online presence can be equally important as your offline presence. It is a good idea to create a website listing your services and contact details. Adding your license information and testimonials from clients can be a great way of getting the trust of your visitors and showing your credibility.
Create your profile on different social media platforms where your target audience may be present and share relevant updates about the real estate industry regularly. You can use paid online and offline advertisements to market your services. Once you have a customer base, you can also ask your clients to recommend you to their friends and families. Word-of-mouth marketing and referrals can play a very important role for real estate agents.
7. Build your network
Networking is an important step in becoming a real estate agent and it can continue throughout a successful real estate agent's career. Through networking, you can build connections, gain more deals, establish your brand and learn about industry trends. You can network with other real estate agents at seminars, conferences, property agent clubs and real estate gatherings.
Skills required to become a real estate agent
Here are some skills that can help you do well as a real estate agent:
The primary responsibility of real estate agents is to interact with customers and help them find a house or commercial space of their choice. Communication becomes an important skill as real estate agents interact with different types of customers daily. Sometimes, the communication may take place over the phone, in person or through emails. This makes it important for them to have good verbal and written communication skills. Being able to communicate well can also help real estate agents when they network with others in the industry.
When customers look for a real estate property, they may generally look at multiple options before making their final choice. Because of this, real estate agents often end up showing a number of properties to the clients before they finalise a property. In the initial days of their career, real estate agents may also require putting extra effort into generating leads and following up with every lead to convert them into customers. Persistency is an important skill that can help real estate agents stay determined and achieve their goals over time.
Being able to negotiate well can help real estate agents get lucrative commissions for the sales they make. Since a real estate agent acts as a middleman between the buyer and the property owner, they often negotiate with the clients on behalf of the owner. They may also negotiate with the owner on the insistence of their clients to get them the desired price.
A good real estate agent can use their negotiation skills to get profitable deals for both parties. Being able to get good deals for their clients can also help real estate agents get referrals from satisfied customers and help expand their client base. Along with negotiation skills, being good at sales can also help real estate agents shorten the sales cycle and close deals quicker.
Even though real estate agents may earn lucrative commissions by making particular deals, it is their duty to be truthful to their buyers. It is their responsibility to provide correct information to their clients about the locality and the property in which they are interested. Such truthfulness can help them build lasting relationships with their buyers and establish themselves as ethical professionals.
It is the duty of the real estate agent to solve their buyer's problems when showing them suitable properties or closing deals. Sometimes, buyers may have problems with certain aspects of a particular property. There may also be issues while finalising deals, processing documentation or liaising with both parties. Problem-solving skills can help real estate agents promptly identify solutions to the problems or recommend alternatives.
How much does a real estate agent make?
The average salary of a real estate agent is ₹23,109 per month. The salary can vary depending on the years of experience, skills and qualifications. Since real estate agents earn a commission for each sale they make, their salary may also depend on the number of deals they are able to close. Self-employed real estate agents may often earn higher than salaried professionals, as they have complete control over the types of customers they serve and the properties they choose. A real estate agent's specialisation may also influence the salary they earn.
Salary figures reflect data listed on Indeed Salaries at the time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.
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