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Encumbrances are quite common in real estate transactions, and because they affect the legal right of a person to buy or sell properties, every real estate enthusiast needs to understand them.
Although encumbrances can include monetary claims (like mortgages and other liens), many encumbrances are non-monetary restrictions on use or access—such as easements, deed restrictions, HOA/CC&Rs, and encroachments.
In this article, you would get to know what an encumbrance is, the various types of encumbrances, and how to discover and remove them to avoid complications down the road.
In real estate, an encumbrance refers to any claim on a property that prevents its owner from fully utilizing and benefiting from it.
This claim is usually placed by a third party who is not the owner of the property. Claims like these, when filed, can restrict and limit the ownership and/or use of the property.
An encumbrance on a home could be a result of anything, ranging from a loan agreement to a type of restricting license.
Depending on what type it is, legal processes may be necessary to address encumbrances. The existence of an encumbrance on a home has major consequences that could prove unpalatable for homeowners. Some of these effects are:
One effect of encumbrances is their limitation on ownership. This can result from a debt, legal contract, or a transfer of property ownership when given as a gift.
In many cases (like a mortgage or deed of trust), the homeowner still owns the property, but the property is subject to a lien or security interest. That lien can limit what the owner can do (for example, selling without paying off the lien at closing).
If extremely restrictive, an encumbrance on a home may make the property's title unmarketable. This simply means that the property cannot be sold or bought.
“Unmarketable title” usually means there is a title problem (a claim, defect, or uncertainty) that can prevent a normal sale or financing until it’s resolved—not that the property can never be sold under any circumstances.
As a result, it is extremely important for anyone looking to buy or sell a house to carry out findings into the property’s title to make sure it is not in any way encumbered.
There are various types of encumbrances in real estate. However, all of them have the same effect -create restrictions on a property.
Here are the four most common types of encumbrances that can be found on real estate properties:
An easement is a permission given to another party that grants them access to the home owner’s property for a specific purpose. It is created by an easement deed that is recorded in the public records of your county and becomes part of the title.
Easements are often recorded and show up in public records/title reports, but depending on the situation and state law, they can also arise through other legal methods (such as necessity, implication, or long-term use).
Easements sometimes ensure public services are available to all and are sometimes voluntarily granted to help another person. For example, a landowner may allow a neighbor to construct an on-site well to avoid the cost of extending sewer lines to the property, or a driveway could be constructed through a person’s property to provide easy access to another location.
An encroachment occurs when a part of the property extends beyond its boundary and onto another property. This is often unintended and may not be detected until a survey is conducted.
Encroachments can be resolved in different ways depending on severity and local rules—such as removing the encroaching structure, negotiating a boundary line agreement, granting an easement or license, or using legal remedies when the parties can’t agree.
An example of an encroachment is when barns, fences, backyards, and sheds stretch beyond their boundaries into someone else’s property.
Deed restrictions are contractual promises that bind a buyer to be subject to certain terms and conditions on a property.
Deed restrictions (often called restrictive covenants) commonly limit how a property can be used—for example, restrictions on building types, setbacks, business use, rentals, or architectural rules.
They are different from a purchase contract contingency (like a financing contingency). A financing contingency is typically part of the buyer/seller contract, not a deed restriction that runs with the land.
An example would be a restriction that prohibits the construction of certain structures on a property.
Generally, if a deed restriction is too restrictive, many buyers may be unwilling to purchase the property.
Liens are one of the most common types of encumbrances in real estate.
A lien is a legal claim against property to secure payment of a debt. A mortgage or deed of trust lien typically exists as soon as the loan is created and recorded, not only after a borrower defaults.
Other common liens include property tax liens, mechanic’s liens (contractors), and judgment liens.
A lien doesn’t automatically “transfer ownership” by itself. If the lien isn’t resolved, it can lead to a foreclosure or sale process, which varies by state (some judicial, some non-judicial).
Knowing if a property is encumbered is important to understand the restrictions and determine if they wouldn't interfere with your real estate plans.
The following are a few ways through which you can find out if a property is encumbered.
A title search is an investigation into the history of a property to ascertain and reveal any claims or restrictions and who the legal owner is. A title search reveals every detail about a property, including its transfer of ownership over the years, making it one of the best ways to discover if a property is encumbered. To carry out a proper and in-depth title search, it is best to hire the services of a title company.
Another way to learn more about the encumbrances on a property is to talk to a real estate professional.
A good and experienced real estate attorney will be able to detect and interpret any encumbrances on a property, as well as advise you on whether the property should be purchased or not.
Removing encumbrances is essential to the full utilization and benefits of your property. There are different ways to remove encumbrances, depending on the type.
In some cases, it could be as simple as destroying a structure from the property, while in other cases, it could be complicated enough to require legal action.
In the case of a lien, paying it off (or otherwise settling it) typically results in a document that releases the lien—often called a satisfaction, release, or (in deed-of-trust states like California) a reconveyance. This usually clears the lien from title rather than “transferring ownership back,” since the owner generally held title subject to the lien.
Likewise, for an encroachment, solutions can include removing the encroachment, negotiating an easement or boundary agreement, or resolving the dispute through legal channels if needed.
Although encumbrances may appear to be terrible because of their restrictions, they serve to safeguard the property and can be advantageous to both owners and buyers.
Sellers who fail to disclose encumbrances to potential buyers expose themselves to severe legal action and buyers who fail to take note early may need additional funds to remedy encumbrances.
Encumbrances are one of the many ways the real estate industry regulates and monitors the sale and purchase of properties to ensure equity.
Understanding the different types of encumbrances will enable you to make informed decisions regarding buying or selling properties.
It will also provide you with an easy way out when you find yourself with an encumbered property on your hands.
Just like in every other industry, some real estate agents are super nice, some of them are incredibly helpful, and -- let’s be honest -- some of them are downright rude, mean, or incompetent.
The party you’re representing in the transaction is called your principal. Don’t ever forget that you are acting with their best interests in mind. Remember, there are multiple people involved in a real estate transaction, all of whom want the escrow to close.
There is the escrow officer, looking for his or her job to be complete. There may be a transaction coordinator looking to get all the documents signed cleanly. There are two interested agents looking for commission checks -- don’t let that process get held up! And of course, the sellers want to sell, and the buyers want to buy. You may not be able to control other people’s behaviors but you can control your reactions.
“You can't always control circumstances. However, you can always control your attitude, approach, and response. Your options are to complain or to look ahead and figure out how to make the situation better.”
― Tony Dungy, Quiet Strength: The Principles, Practices & Priorities of a Winning Life
There are two main ways real estate agents can make a situation more messy than it ought to be.
It’s important that you reach out frequently, and especially so if you’re not hearing back promptly. Your clients will appreciate you for it, and your commission check will come on time -- we call that a “win-win situation!"
When working with another agent, they are literally called your “cooperating broker." If they are not cooperating, though, there is a lot 1600risk. If the other agent is not being reasonable, it’s time for you two to have a one-on-one conversation, not in front of the principals and not at the house for sale.
You need to remind the other agent of a few things. First, you should always maintain a professional and friendly demeanor between each other. Second, you both have a lot riding on this sale, so it’s best to focus on the end result and put aside any differences you may have. Third, you MUST communicate openly and frequently about any issues that may occur. Neither of you want this escrow to fall through!
As they say, “it takes two to tango.”
Sometimes the other agent is simply unwilling or unavailable to be a good and thorough agent. As a last ditch effort, you can go to the broker of record on the transaction. This person, the head of the office at the brokerage, will be able to put some pressure on the agent to be a better representative for their principles.
They have a brand at stake, and they want to maintain the reputation of that brand with the clients and within the neighborhood.
So, as a recap, there are plenty of good agents out there. However, some of them are simply irresponsible -- whether uncommunicative, incompetent, or simply rude. You want to avoid them when possible. Stay professional, communicate constantly, and take them aside if necessary. If all else fails, go to their broker. Just don’t get discouraged!
You can own a property outright and still be legally required to let other people use part of it. That's what an easement in real estate does, and it trips up more exam takers than almost any other encumbrance question.
This guide explains what an easement is, how easements work, the main types you'll see in practice and on the exam, and when an easement can be removed.
An easement is the legal right to use another person's property for a specific purpose without owning any part of it. An easement is a nonpossessory interest in land, which means the holder can use the property but has no ownership claim to it.
Easements are one of the most common types of encumbrances on real estate, alongside liens, deed restrictions, and encroachments. Most easements are created in writing, recorded in public records, and referenced in the property deed. The owner keeps the title. The easement holder gets a defined right of use, nothing more.
You see easements everywhere once you know to look: power lines crossing a backyard, a shared driveway between two homes, a path that lets a landlocked neighbor reach the road, or a city sewer line running under a front lawn. Cornell Law School's Legal Information Institute defines an easement the same way: a right to use another's land that falls short of ownership.
An easement works by splitting one property's use between two parties: the owner keeps title, and the easement holder gets a limited, legally enforceable right to use the land for a defined purpose. The owner still holds fee simple ownership, but they can't interfere with the easement holder's rights. If your neighbor has a recorded easement to cross your lot to reach their home, you can't fence off the path.
Most easements are created by written agreement between the owner and the party requesting access, and the terms live in that agreement. Some easements transfer when the property sells, so the new owner inherits them whether they like them or not.
Two pairs of terms come up constantly here, and both are exam favorites.
Ingress is the legal right to enter a property, and egress is the legal right to exit it. An access easement grants both. These rights matter most when a property is landlocked. Without ingress and egress over a neighbor's land, the owner would trespass every time they came home.
The servient tenement is the property burdened by an easement, and the dominant tenement is the property that benefits from it. If your neighbor crosses your land to reach theirs, your lot is the servient tenement and theirs is the dominant tenement. Memory trick: the servient property serves the other one.
The four main types of easements are easement appurtenant, easement in gross, prescriptive easements, and easements by necessity. Here's how they compare:
An easement appurtenant attaches to the land itself and transfers automatically when the property sells. It always involves two parcels: a dominant tenement that benefits and a servient tenement that carries the burden. Appurtenant means "belonging to," and that's the idea: the easement belongs to the land, not to whoever happens to own it.
An easement in gross benefits a specific person or company rather than a neighboring parcel. There's no dominant tenement, only a servient one. Utility easements are the classic example: the power company holds the right, not the lot next door. Commercial easements in gross, like utility rights, transfer when the company changes hands. Personal ones, like letting a friend hunt on your land, usually end when the owner sells or the holder dies.
A prescriptive easement is created when someone openly uses another person's land, without permission, continuously for the number of years set by state law. No document creates it. Long-term use does. Don't confuse it with adverse possession: prescription earns the right to use the land, while adverse possession can take ownership of it. That distinction is a favorite exam question, and our prescriptive easement video breaks it down in under five minutes.
An easement by necessity is created by a court when a property has no legal access to a public road. Courts grant it because land without access is nearly useless. Unlike a prescriptive easement, it doesn't require years of use. The necessity itself creates the right, and the easement ends if the necessity ends.
Easements aren't bad by default, but every easement limits how the owner can use their property. A utility easement might stop you from building a pool over a buried line. An access easement means you can never block the shared driveway. Some owners never notice their easements. Others feel them every day.
Easements can also affect what a buyer will pay. The practical move is to find easements before you buy, not after: they show up in the preliminary title report and the recorded deed. If one looks restrictive, have a title officer or real estate attorney walk you through exactly what it allows before you commit.
An easement can be terminated five main ways: release, merger, abandonment, expiration, and the end of necessity.
Easements show up on the national portion of the real estate exam in every state, usually inside property ownership and land use questions. The exam rarely asks "what is an easement" straight up. It tests whether you can tell the look-alike terms apart: appurtenant vs. in gross, dominant vs. servient, prescription vs. adverse possession, ingress vs. egress.
If you can define each pair in one sentence, you'll pick up these points fast. If you want to drill them, our 25 must-know national exam questions cover this territory.
An easement gives someone a legal right to use land they don't own, and it stays enforceable no matter how the owner feels about it. Know the four types, know who benefits from each, and know the five ways an easement ends. That covers you as a buyer, an agent, and an exam taker.
Easement questions are point-scoring opportunities on exam day. The terms are learnable, and the patterns repeat. The USRT Exam Prep package drills them with practice questions and vocab until the look-alike terms stick. Start the Exam Prep package and lock in these points before test day.
Starting your journey as a real estate agent can be scary.
From adopting the right frame of mind to understanding your finances, there are many challenges that new agents face. In this survival guide, we'll share practical advice to help you navigate your first year successfully.
The first year in real estate is full of challenges, and the right mindset can make all the difference. It's common to feel overwhelmed when progress seems slow, but instead of getting discouraged, you need to get M.A.D.
Managing finances is crucial for new real estate agents. It's important to understand where to invest and how to plan for expenses.
Since Aug 17, 2024, if you’re working with a buyer you must have a written buyer-representation agreement in place before touring a home (in-person or live-virtual). Also, offers of compensation are no longer shown on the MLS—compensation is still negotiable, but it’s handled off-MLS between clients and brokers. Learn your local forms and scripts so you can explain options clearly at your first consult.
Budget for several months of ramp-up. NAR reports median gross income for REALTORS® was $55,800 in 2023; new agents typically earn less while building a pipeline. Plan a 3–6 month reserve and track fixed (dues/MLS/E&O/phone) and variable (marketing, photos, staging) costs.
Setting realistic goals is vital to tracking your progress and maintaining momentum. Both short-term and long-term goals are essential for guiding your career.
Goal setting keeps you focused on growth and helps you avoid wasting time. With clear objectives, you can work towards specific achievements, ensuring that you're on the right path.
Setting goals that are too ambitious can lead to discouragement if you fall short. Instead, break down your larger goals into smaller, achievable milestones. For example, instead of aiming to make $100,000 in your first year, set a goal of earning $25,000 per quarter.
This makes it easier to stay motivated as you achieve smaller successes.
As a new real estate agent, it's important to stay organized and focus on the essentials that will help you succeed. Here is a checklist to guide you through your first year:
The only way to earn clients is through consistent prospecting. Networking and building relationships are fundamental to building your career as a real estate agent.
To generate leads, you'll need to actively meet people and get referrals. This process, known as prospecting, is the foundation of any successful real estate business.
Your sphere of influence includes your immediate network of friends, family, and acquaintances. These people already trust you, making them a valuable source of potential leads and referrals. For instance, if someone in your network is planning to sell their home, you can leverage your relationship to gain their business.
Advertising and marketing are also effective for expanding your network beyond your immediate sphere. Paid ads, digital marketing, and in-person promotions can help you generate fresh leads and build your reputation.
Your first year as a real estate agent will be full of ups and downs. Challenges, setbacks, and successes are all part of the journey. The key to success is staying disciplined and refusing to give up.
Patience and perseverance are essential traits for surviving and thriving in your first year. Many new agents enter the industry expecting instant success, but the reality is that building a successful career takes time and consistent effort. Stay patient, stay committed, and remember that hard work always pays off.
Encroachments are one of the most common encumbrances in real estate, and one of the easiest to miss. Most owners find out about one mid-sale, when a survey turns it up and the clock is already ticking.
This guide covers what encroachments are, the most common examples, how they're discovered, how to fix one, and how the topic shows up on the real estate licensing exam. Quick answers first:
An encroachment is the unauthorized physical intrusion of a structure or improvement from one property onto a neighboring one. The key word is physical. A fence, a garage wall, a concrete patio, overhanging branches: something you can touch is sitting on land it doesn't belong on, without the neighbor's permission.
That physical element separates an encroachment from other property issues. An easement is a legal right that exists on paper. An encroachment is an actual object crossing the boundary line.
Intent doesn't matter, either. Most encroachments happen because an owner built an improvement without confirming the boundary with a survey, not because anyone set out to take land. The encroaching owner is still responsible for the intrusion, whether they knew about it or not.
The most common encroachments are fences, driveways, garages, sheds, decks, retaining walls, tree branches, and landscaping that cross a property line.
Severity matters. Overhanging branches are usually solved with pruning shears and a friendly conversation. A garage sitting a foot inside your neighbor's lot is a different problem. It can hold up a sale until it's resolved, and removal may be the only clean fix.
Most encroachments are discovered through a professional boundary survey or a title review during a sale.
A boundary survey maps the legal property lines and shows exactly where structures sit relative to them. If you're buying, this is your best protection. According to Angi's 2026 cost data, a residential boundary survey typically costs $450 to $900, which is cheap insurance against inheriting a neighbor dispute. Surveys can also settle boundary disputes between neighbors.
A cloud on title is any claim or defect that puts an owner's clear ownership in question. An undisclosed encroachment creates one. Because of that cloud, lenders often treat the property as unmarketable and may refuse to fund a buyer's loan until the encroachment is removed or legally resolved. That's why encroachments stall sales: the deal waits until the title is clean.
You can fix an encroachment five ways: talk it out with your neighbor, remove the structure, sell the strip of land, grant a written easement, or take legal action. Start cheap and escalate only if you have to.
Many encroachments end with a single conversation. If the intruding item is easy to move, like branches, a garden bed, or a section of fence, most neighbors will handle it once they know it exists. Put any agreement in writing.
If the encroaching structure is yours, moving it back inside your boundary is the cleanest fix. Get a survey first so you're working from the surveyed line, not a guess.
If the structure is too expensive to move, you can sell the encroached-upon strip to the neighbor. You get paid, they get clean ownership, and the boundary is redrawn. Consult your mortgage lender first, since your property secures your loan, and use a real estate attorney and an updated survey so the records stay accurate.
You keep ownership of the land but give your neighbor documented permission to use it. This converts an illegal intrusion into a legal, recorded right. It also stops the clock on prescriptive easement and adverse possession claims.
Court is the last resort. If you can't reach an agreement, a real estate attorney can pursue a quiet title action or a court order requiring removal. It works, but it's the slowest and most expensive route.
The difference between an encroachment and an easement is permission. An easement is a legal, usually recorded right to use another person's land for a specific purpose, like a shared driveway or a utility line. An encroachment is a physical object crossing the property line with no legal right behind it.
Encroachments and easements both involve someone using land they don't own. But an easement is disclosed, documented, and survives scrutiny during a sale. An encroachment is undocumented and clouds the title. Same land, opposite legal footing.
Yes. An encroachment that goes unchallenged for years can ripen into legal rights for the encroacher, depending on state law:
The required time period varies by state. In California, adverse possession requires five years of continuous possession plus payment of the property taxes. In Texas, the standard period is 10 years. Other states run anywhere from five to 30 years. The lesson is the same everywhere: the longer you wait, the stronger the encroacher's position gets.
Exam questions about encroachments usually test three things: encroachment vs. easement, how encroachments are discovered, and their effect on title. Here's one in exam format:
During a routine property survey before a sale, it's discovered that the neighbor's driveway extends three feet into the seller's property. How is this issue best classified, and what is the typical result?
The answer is B. A physical object crossing the line is an encroachment, and until it's resolved, it clouds the title. That can make the property unmarketable in a lender's eyes.
If you're studying for the exam, our Exam Prep package includes thousands of digital flashcards, unlimited practice exams, study guides, and video explanations for questions exactly like this one.
Encroachments start small and get expensive. A fence a few inches over the line costs a conversation today. Ignored for a decade, it can cost you the land itself. If a survey turns one up, deal with it early: talk first, document everything, and bring in a real estate attorney when money or structures are involved.
Want more real estate concepts explained like this? The video above is from our exam crash course series, and the full Exam Prep program covers every topic you'll see on test day.
Deed restrictions can quietly decide what color you paint your house, whether you can rent it out, and even where you park. If you're studying for the exam or helping a buyer, you need to know what they are before a client signs anything.
Here's what you'll get: a plain definition, real examples, how CC&Rs and HOAs enforce these rules, and a simple way to check for restrictions before a purchase closes.
A deed restriction is a recorded rule that limits how a property owner can use their land or home. These rules live in the deed itself or in recorded community documents, and they transfer with the property no matter who owns it next.
A deed restriction is a private, recorded limitation on land use, separate from government zoning laws. That distinction matters. Zoning comes from the city or county. Deed restrictions come from a developer, a prior owner, or a homeowners association, and they're enforced privately.
Deed restrictions are one of the most common types of encumbrance on a property. They can dictate what gets built, how a home looks, or how the land can be used. A restriction can apply to a single lot or to an entire subdivision.
For example, a neighborhood of look-alike homes may require every house to keep a matching roof color or setback. That rule limits what any one owner can change, and it stays attached to the property when it sells.
Deed restrictions work by attaching legal rules to the property itself, not just to the current owner. When you buy a restricted property and sign the deed, you agree to follow those rules, and so does the next buyer.
Restrictions usually do one of three things:
How long a restriction lasts depends on its source. Some expire after a set number of years. Others run indefinitely until they're formally removed. The two most common sources are CC&Rs and homeowners associations.
CC&Rs are the written rules of a planned community that govern how homes and shared spaces can be used. They're recorded with the county, and they're legally binding on every owner in the community.
CC&Rs often cover home appearance, short-term rentals, pets, satellite dishes, trash cans, and parking. If a community says all cars must be garaged overnight or all fences must match, that rule almost always comes from the CC&Rs. Because these rules limit daily use, they count as a type of deed restriction.
A homeowners association is the legal entity that manages a community and enforces its CC&Rs. When you buy in a planned community, you automatically become a member and agree to follow the association's rules.
HOAs are the main enforcers of deed restrictions. They can issue fines, place a lien on your property, suspend community privileges, or file a lawsuit when an owner breaks the rules. That enforcement power is why buyers need to read the CC&Rs before closing, not after.
You check for deed restrictions by reading the title report and pulling recorded documents from the county. Both are public, and both should happen before you close.
Use this simple three-step routine, which we call the USRT Deed-Restriction Check:
Run this check every time. A clear title today doesn't mean the property is free of restrictions, and a recorded rule you skipped is still binding.
Deed restrictions are private rules tied to the property, while zoning laws are public rules set by the government. People mix these up constantly, so here's a side-by-side.
Both can limit what you do with a property, and a home can be subject to both at once. When they conflict, the stricter rule usually wins, so always check for each.
Deed restrictions aren't good or bad on their own. They're limits, and whether they help or hurt depends on the buyer. Someone who wants a uniform, well-kept neighborhood may love them. Someone who wants to run a business from home or rent on a short-term basis may find them a dealbreaker.
The real risk isn't the restriction itself. It's buying without knowing the restriction exists. As long as you check the records first and read the rules, you can decide whether a restricted property fits the client's goals. This connects to fee simple ownership, which gives owners broad rights but still leaves them subject to recorded restrictions and local law.
Deed restrictions are recorded rules that follow the property, usually enforced by an HOA, and binding on every future owner. Know what they are, know where to find them, and read them before anyone signs. That habit protects your clients and shows up on the exam.
Deed restrictions, encumbrances, and clouds on title are the kind of terms that trip up first-time test takers. If you want them to stick, drill them until they're automatic. Our exam prep package includes vocabulary flashcards, practice exams, and question-and-answer videos built to lock in terms exactly like these.
Nobody can predict the future of real estate. With the popularity of new websites like Trulia and Redfin, you don't need a crystal ball to see the impact they’ll have on the industry. Technology and websites are making real estate research, purchasing, and selling easy and accessible to everyone.
California real estate education is important to being a successful agent. But, some people are getting discouraged from entering a career path that could become obsolete.
This leaves people questioning the relevance real estate agents have in the next few decades. More people than ever are using websites to answer questions and to sell or buy property.
Despite some people’s expectation of an inevitable real estate agent demise, the future might not be as bleak as they think.
Third party aggregators like Trulia, Zillow, and Redfin have made their presence known in the real estate industry. However, they can’t replace the work of a Real Estate Agent. When selling a property, there’s information the regular buyers and sellers don’t know.
This is the data accessible to the Real Estate Agent; information the websites don’t distribute.
Real Estate Agents help clients through the entirety of the property transaction process. From the legal issues involved (such as disclosure reports) to filing the correct paperwork, buying or selling a home turns into an overwhelming process.
Real Estate Agents lessen the burden of the legal hoops clients have to jump through.
Real Estate Agents share a common feeling that websites are stealing clients. When a property is listed on a website like Trulia, Zillow, or Redfin, the client will bypass the agent to go straight to the property owner or buyer.
What most agents don’t realize is this isn’t a case of losing clients, but an opportunity to make the transaction process efficient.
Instead of spending days - even weeks - browsing through property listings, clients have the opportunity to come prepared into a meeting with a Real Estate Agent.
Less time is spent on client-agent property searching, and more time on the transaction. When you have prepared, decisive clients there becomes more room to take on additional clients.
You will have more clients, commission, and time to run an efficient business.
The presence traditional Real Estate has in a digital world doesn’t change. Despite owning a website, you still have to go door-to-door finding leads. Currently, the digital world doesn’t have the services available to remove traditional Real Estate Agents from the transaction process.
Real Estate Agents have to shift their mindset when working with clients. Instead of looking at websites as a lead thief, they should use them as a tool to expand their clientele. Moreover, the transactions in Real Estate are extremely complex.
This kind of intricate transaction can’t be done behind a computer.
Real Estate deals need to be done between people due to the extensive amount of paperwork, negotiation, and relationship building involved. A good Real Estate Agent will have skills in bringing people together and being the mediator between two parties.
Their goal, in the digital world, is to ensure buyers and sellers are both happy.
Online discount brokerages, such as Purplebrick and Redfin, are websites that list houses for a substantially less amount of money than you can with a traditional Real Estate Agent. This type of business discounts people’s ability to make money. Essentially, it’s a discounted service.
This might sound like a great deal, however the quality of service reflects its costs.
When selling or buying a property, the current tech and website climate will only get a client so far. If a client is serious about buying or selling, they need to hire a real estate agent.
Whether you’re a real estate agent or a first-time homebuyer about to go through the process, following the proper ethics around kickbacks will help you navigate the transaction easily.
Kickbacks are illegal payments or gifts that occur during the transaction. These laws were put in place to avoid any bribery and protect consumers in the process.
While not all gifts or rebates fall under the illegal kickback category, it’s essential to understand the complexity and how the law defines kickbacks.
A kickback in real estate is when a real estate agent, who has a fiduciary responsibility to the client, receives benefits or items of value for referring certain businesses or services.
These are usually illegal and considered bribes, as it is often in the form of cash or something of value like a gift.
If your agent recommends additional real estate services like escrow companies, title companies, inspection companies, or other businesses that are involved in the real estate transaction, they have to comply with the law and not be bribed to refer business.
This helps maintain the integrity of the transaction and ensures consumer’s interests are protected.
A piece of law called the Real Estate Settlement Procedures Act (RESPA) was put in place in 1974 to prevent unethical or illegal actions between real estate service providers and their clients.
Real estate agents and mortgage brokers must abide by this, and it falls under the jurisdiction of the Consumer Financial Protection Bureau. Under RESPA section 8a, giving gifts or kickbacks in exchange for business is illegal.
Specifically, it prohibits any “unearned” fees or bonuses paid for services that weren’t performed.
RESPA is civil law that applies to all federally regulated mortgage loans, including purchase loans, refinances, home improvement loans, land contracts, and home equity lines of credit.
RESPA will not cover transactions like all-cash offers or rental transactions where a mortgage is not involved.
If you are caught violating RESPA as a real estate agent or mortgage lender, you can face severe consequences such as:
These kickbacks, in certain situations, can also be considered tax evasion since they are unreported income for the agent.
If you have any concerns about when or who can give gifts during the transaction, it’s best to confirm with your broker or a real estate attorney to ensure you’re not violating any RESPA laws.
One key exception to RESPA is when a referral fee is paid between two licensed real estate professionals.
This can be done when one real estate agent refers business to another agent and end up doing a transaction with that client. Sometimes known as a “finders” fee, it is not uncommon for a real estate agent to pay a small percentage of their commission for referring a client to another agent.
This can be anywhere from a few hundred dollars to 25% of their commission, depending on the state they’re in and the agreed-upon fee between the parties.
Each state has different regulations that outline what constitutes a referral fee and how much an agent is able to give, so check with your local state’s board of realtors to confirm. Most states require you to be a licensed real estate agent to receive a referral fee.
But a few states will allow unlicensed individuals - like previous clients - to receive a finders fee for sending business to an agent.
However, this does not apply between mortgage brokers and real estate agents. It is considered an illegal kickback when a referral fee is paid between a real estate agent and another service provider. But if it’s a referral fee between two real estate agents, it is permissible.
While providing gifts in exchange for referrals violates RESPA, not all credits or gifts to clients are against the rules.
A mortgage lender or agent can offer the buyer or seller a closing credit or gift for using them as their service provider — just as long as there are no expectations to refer other businesses to the lender.
RESPA allows for gifts, refunds, or discounts to the client if it doesn’t involve referring business to that provider.
In this case, an agent might offer to refund part of their commission in the form of a “closing credit” that can go towards the client’s down payment and closing costs.
These credits are legal in 40 states and allow agents to give their clients a little money back at the closing table if necessary.
Giving gifts to a client at the closing table or after they move into their new house is a common practice in real estate.
But does that count as a kickback? According to RESPA, as long as there are no strings attached to the gift, agents can give gifts to their clients.
These would be considered more of a thank-you gift and is a way to build a relationship with clients.
These types of gifts and rebates are okay, so long as the client is not expected to get a referral out of it. Remember that next time you want to thank a client for choosing you as an agent!
While Kickbacks are illegal and unethical in real estate, there are some exceptions to gift-giving for your clients, and from agent to agent.
RESPA was created to ensure that buyers and sellers have full transparency and trust in the transaction. If you’re a real estate agent, make sure you’re following proper procedures to avoid violating RESPA laws.
Make sure you have a complete understanding of the law so you can avoid any RESPA-related issues!
While technology has changed a lot in the real estate industry, open houses are one of the most popular “traditional” tactics that real estate agents use to sell homes.
But does hosting an open house and having strangers walk through actually help sell the house? Well, that depends.
An open house is a publicly marketed event hosted by a real estate agent that allows prospective buyers and their agents to tour the home during set hours.
Agents will often host these on the weekends, and they’ll last anywhere from 1 to 3 hours. During that time, the agent will show people around the house, answer any questions and hopefully, find a buyer for the house.
When you get ready to list a property, the agent and the seller will discuss ways to market the property to get the most exposure.
Once the seller agrees to allow the agent to host an open house, the agent can begin marketing it to their network and sharing publicly.
They can also include it in the MLS description of the property, so other agents are notified that an open house will be held. If the open house is entered officially on the MLS, it will also show up as an upcoming event on sites like Zillow, Redfin, and Realtor.com.
On the day of the open house, it’s strongly recommended that the seller of the property is not present. This will prevent any awkward scenarios where the potential buyer meets the current owner.
Once the owner has left the property, the agent will stay at the house and greet any visitors or agents that attend.
Usually, you can expect a wide variety of people attending, ranging from neighbors, real estate agents, home buyers that are starting to look, or sellers in the area who want to look at comparable homes.
As a buyer, when you visit an open house, you’ll be asked to likely sign in and share some information with the listing agent. This can help the agent determine if you’re already working with an agent or might be looking to hire an agent to help in your home search. As a newly licensed agent, hosting open houses can be a great way to generate buyer leads.
There are a lot of benefits to having an open house, and when done correctly, they can generate a lot of interest in the property.
It’s hard to exactly attribute the percentage of homes that sell from an open house, but it can be an effective tool to gauge interest and get more eyes on the property.
While most sellers start their home search online, they will need to see the home in person to make a final decision.
Having an open house to welcome prospective buyers is often a much more relaxed and less formal way to view a house instead of scheduling a formal showing.
It also is more convenient, allowing buyers to visit several open houses throughout the course of the weekend.
While touring, they can ask questions, visualize themselves in the space and get an idea of whether the house is a good fit for them.
According to a 2018 Zillow study, 72 percent of sellers in urban areas host open houses, 63 percent in suburban areas, and 42 percent in rural areas.
Depending on your seller’s situation or the home's condition, it might not always be in their best interest to have an open house.
Make sure you weigh the pros and cons with your seller to ensure everyone is on the same page.
If you want to get additional traffic to your property without opening the door to the public, hosting a broker’s open might be a better fit.
At a broker’s open, only other licensed agents or brokers can attend, providing a more intimate and exclusive setting for agents to preview the property.
From there, they can consider whether they have a client who might be interested in viewing it.
Depending on the property, your seller’s wishes, and your local market, a broker open could be a better fit for you.
While they’re not necessarily any better than an open house, they accomplish the goal of getting additional traffic to the house from professional real estate experts.
This can give you, the seller’s agent, great feedback about the home and the opportunity to network with other agents.
A broker open is a great way to provide your client feedback from other industry professionals.
If, ultimately, your seller isn’t comfortable having strangers come through their house en masse, you will have to conduct private showings with potential buyers.
This is when prospective buyers and their agent will schedule a time to view the home without other buyers or the current owner present.
Most serious buyers will plan a private showing where they can have the house to themselves and ask the seller's agent specific questions.
At the end of the day, hosting an open house is an individualized decision you and your client should discuss. While there are plenty of benefits, there are certain situations where it might not make sense:
Ultimately, it’s up to the seller whether they feel comfortable with an open house. Make sure you walk your clients through all the pros and cons so they can make an informed decision that works best for them.
Your clients might have an urge to find houses for sale by owner to avoid working with real estate agents now. To be the best Realtor® California has ever seen, you must follow a strict code of ethics. This means, when there’s property for sale, the client is the agent’s priority.
Your client shouldn’t learn how to buy a house on their own because they worked with a dishonest real estate agent.
Sticking to the ethical code that was created by the National Association of Realtors® is important to maintaining an agent’s moral integrity. Without it, the industry will get filled with low value agents trying to make a quick buck.
The National Association of Realtors® changed the industry in 1913 when they developed a code of ethics. By doing so, they solidified the ethical duties and responsibility that agents uphold in their profession.
The goal of the code of ethics is to create cooperation among real estate agents to further meet the client’s best interest.
The NAR® code of ethics is used as a moral compass for agents. Even going as far as to say that agents “...connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.” Agents must put aside the idea of earning a few extra dollars to stay true to their moral integrity.
Those who are loyal to the real estate agent’s mission will respect the client’s best interest and work for them. Unfortunately, a few agents will stretch the truth with the client.
The reason why agents mislead a seller or buyer is because they’re desperate to earn their commission. Most of the time, the agent will try hyping up their client when finding homes for sale in California. They do this by promising fantastic - but unattainable - deals on their home.
This is to excite the client so they will hire the agent.
The agent will be desperate for clients depending on their current level of success and the size of their clientele network.
If the agent is unsuccessful in their career, they’ll have more desire to manipulate the truth. The same goes for an agent with a small network. When they hype up their client, they’re trying to grow the amount of connections they have.
You can avoid this low status agent behavior by committing to the NAR® code of ethics.
Deciphering the difference between truth and “untruth” can be complicated for the client. Telling the truth is always the best policy.
This allows clear, unaltered, real information to be exchanged between the client and agent.
When an agent chooses to lie or give false information, they’re being untruthful. For example, an agent might tell a client to raise the price of their home to create a sense of excitement towards the agent.
The client will be more inclined to work with someone who could make them more money.
Agents know this and will leverage this desire in their favor. When agents sugarcoat information as a way to be more marketable, they are being deceptive.
As an agent, you should always be supporting and honest to your client.
Always play fair in real estate. Being dishonest and corrupt in your business is a great way to lose your license, but it’s also a morally irresponsible characteristic for a person.
The California Association of Realtors® (CAR) handles investigation into any ethics violations. This means brokerages are investigated when an agent has committed an action deemed immoral or unethical.
Agents sign with the brokerage, so the actions of the real estate agent reflect that of the brokerage.
When unethical behavior is reported, CAR undergoes an extensive process investigating the report. Depending on the severity of the report, CAR could warrant the suspension or revocation of the perpetrating agent’s license.
When you put your client first, everyone will notice.
Practicing clear, transparent communication is an effective way to show the client you respect their time and business. When you are open, honest, and communicate your goals, they will reward you with their loyalty.
You should also keep your word. Holding yourself accountable to provide quality service is important to building trust between you and your client. If you promise to sell their home after raising by $50,000, you should do everything in your power to do so.
Agents can build strong relationships when they are honest with their clients. When they do, there’s immeasurable returns.
When you practice honest habits as a real estate agent, you’ll earn a larger network of clients.
This happens because people want to work with you. When a client finds a real estate agent they trust, they’ll most likely hire them for future deals or recommend them to a friend and family. A successful real estate agent grows their network quickly through referrals.
Avoid falling into the vicious circle of dishonesty by holding yourself accountable to being an honest agent. Doing so will decrease the incentive to lie or tell “untruths” to future clients. As a result, your network will grow - so will your commissions!
If you're selling a house, what kind of brokerage should you work with? Ideally, convenience is best. You may turn to online brokerages.
Online brokerages like Redfin provide convenience and lower fees. But are the services better?
This article walks you through the advantages and disadvantages of using an online real estate brokerage.
Sure - listing houses for sale with an online brokerage can help you save money. Instead of breaking off 6% of the sale with a traditional realtor, you could be spending around 1% with an online brokerage.
This small percentage change means monumental savings.
But, like any discount brokerage, you get what you pay for. Using an online brokerage could mean you lose the opportunity to work with a real estate agent.
In fact, online brokerages like Redfin and Purple Bricks are directly competing with the brokerages you see today. The reason being: saving money is great!
But, when you spend less, you may want to expect less. Real estate agents prefer higher commissions.
When a commission of 1% is split between the broker and real estate agent, the agent will be less likely to work with you.
Sellers can undoubtedly save money using an online brokerage.
Compared to a brick and mortar brokerage, the amount of money that one can save is highly apparent. Companies like Redfin or Purple Bricks will charge the seller around 1% when selling their house.
If the value of the house is $1,000,000, then that’s only $10,000 spent for listing.
A traditional real estate agent will charge the seller 6% for selling the house. Taking the same property value, that’s $60,000.
With $50,000 at stake, making the decision of who will sell your house becomes pretty simple.
Online brokerages make selling and listing the home easy for the seller. They also make the service charge affordable.
This sounds too good to be true, right? Well, there’s one, large downfall that makes this great deal, not so great.
When you’re working with an online brokerage, you get what you pay for.
Paying a lower amount of money to sell and list your property will bring less buyers and a lower quality of buyer.
You don’t have the opportunity to filter the right person for your home. Additionally, buyer agents will not take interest in your property, because they’ll have to share the 1% commission.
The buyer’s agent will be deterred, because they don’t want to invest their time to split $10,000 with an online brokerage. They could be earning more money for themselves and client by working with traditional real estate agents.
As a result, online brokerages could make the selling process more challenging.
When a traditional real estate agent charges the seller 6%, they’re committing to a promise of quality service. The agent will make the process of selling a home simple by finding valuable buyers for their client.
By paying the extra 5%, you are agreeing to hold the agent to a standard that will pay dividends when finding your buyer.
This means they will be working for the seller.
By looking out for your best interest, they will go above and beyond what an online brokerage is able to do. By meeting your needs and finding the right buyer for your home, your sellers agent will show you why the 6% service charge is necessary.
You can save money with an online brokerage, but it might cost you much more money down the line.
Homebuyers stress over finding the absolute perfect home. When they purchase a property, they want to know everything there is to know about it.
But, when the seller withholds a real estate disclosure, the buyer could find these imperfections after the purchase.
Without a property disclosure form, the seller could be held responsible for fixing these issues that creep up after the transaction - especially when they had already known about them. A seller’s disclosure agreement helps make all issues with a house apparent to the seller.
By signing a sales disclosure form all parties are legally aware of the property problems before closing the purchase.
Yes - buyers always have the right to know about issues with a piece of real estate. This is because the homebuyer may not want to purchase the home if they had known about the property’s defects.
With this in mind, it would be unethical to knowingly withhold information from them.
A house disclosure informs the buyer of every defect. Some agents might think this is a bad thing, as it will deter buyers from making a purchase.
To some extent, this is true.
But, buyers will be more eager to work with an agent, if they’re upfront and transparent with the house issues.
The best way for the buyer and seller to communicate the problems with the property is through a real estate disclosure form.
Also known as the seller’s disclosure form, this legal statement reports the condition, well-being, and material defects of the home.
The seller’s property disclosure statement is usually found in the transaction document. This will have a complete description of the defects of the property and ensure the buyer is aware of these problems before completing the transaction.
When the buyer reads the disclosure statement, they will be informed about the property issues.
When the seller or agent intentionally withhold information on the property problems, there will be a chance of legal repercussions.
There will be legal backlash for the real estate agent - and especially the seller - if problems are knowingly withheld from the buyer.
In some situations, buyers are even suing sellers for nondisclosure of latent defects.
Latent defects are problems that are not obvious during the house inspection. One example of a latent defect in the house having a coat of led paint.
This isn’t something that would be obvious during the initial inspection. Therefore, the buyer will have to be told about this information.
However, the seller and agents are not responsible for sharing patent defects. These are the issues that are apparent upon a normal inspection of the property.
This could be apparent house blemishes, such as damaged material property.
So, who’s responsible for fixing the issues with the property? Moments like these are why real estate agents are important.
Disclosures can be used as negotiation power during the transaction. That’s why most sellers are afraid to share them.
A real estate agent will leave a major impact on their client if they’re able to negotiate in their favor.
If you’re representing the buyer in a transaction, and you’re able to convince the buyer needs to fix the issues with the property, you’ll be doing the buyer a major favor.
Putting the needs of the clients first is one of the characteristics of a successful real estate agent.
There are thousands of experienced real estate agents who will happily share their best method of selling real estate.
Filtering through the noise of empty real estate tips can be a challenge. However, there’s one piece of advice that will always outperform other real estate agent tips.
You’ll find the best selling tips by discovering what makes a good real estate agent a great one. Instead of researching overnight hacks, there’s one strategy that will change your real estate career for good.
The right way to sell a property is with grit, tenacity, and - most of all - passion.
Passion is real estate isn’t just a motivational hack. It’s a measurable characteristic that clients and peers will notice. People who are passionate will always be more likely to succeed in their careers. Here’s how you can stay passionate to sell a property.
Becoming a real estate agent takes discipline and stamina. Holding yourself accountable is a challenge that most agents struggle with. As a result, they find themselves in 3 different levels of effort.
Most agents will fall into the level of doing the bare minimum in their careers.
These are the people who will learn the course material, pass the real estate state exam, and sign with a brokerage, but fall short of excelling in their careers. They follow the same motions day-in and day-out.
The next level is for the agents who perform above everyone’s average. You will find these people closing more deals, developing a brand, and being well versed in real estate knowledge.
Finally, the best real estate agents are the ones who perform well in their jobs and show passion. These are the agents who have a superb reputation.
They work hard in their careers and they stay invested with their clients. These agents will go the extra distance that most choose not to.
People always want overnight success. They believe finding that one tip or trick to better their real estate careers will fall into their lap. Then, they expect to have instant success by following a strategy guide or scheme.
In real estate, there are no overnight success tricks.
The best real estate selling tips to make you successful are: working hard and showing passion. People want to work with those who are invested in their careers. When you are dedicated to doing the best job you can, you will attract clients and professionals to you.
Passion is the strong, emotional drive that makes you invested. When passion is described like this, it might sound unattainable if you don’t have it. Passion is something that comes to you when you’re able to shift your mindset.
When you figure out what makes you care - you will find it easier to feel passionate about your career. In regards to real estate sales, you will feel passionate about finding the best deal for your client, when you've invested in ensuring they have the best property at the best price.
This is why building strong relationship with clients and peers is a vital part of being a real estate agent.
Discovering why you care about your job will always lead to being invested in your career. When you are invested in your career, you will become passionate. Therefore, the right way to sell or buy property is to, firstly, care.
The first step to combat discrimination in the United States was the Civil Rights Act of 1866. However, neighborhood discrimination wasn’t addressed until the Civil Rights Act of 1968.
Also known as the Fair Housing Act, this legislature made “refusal to sell or rent a dwelling to any person because of his race, color, religion, or national origin” illegal.
Real estate agents can’t determine where the home buyer can or cannot live. That’s why choosing your client’s future home should be handled with caution.
In 1968, The Fair Housing Act was passed to counteract discriminatory behavior that controlled the ethnic makeup of neighborhoods.
This legislature was to provide equal housing opportunities to everyone, no matter their race, religion, or national origin.
This landmark regulation wanted to take the discrimination out of the housing.
This was an expansion of the Civil Rights Act of 1866, which didn’t enforce federal action against discriminatory behavior in housing.
The major acts in housing discrimination were steering and redlining. Each attempted to serve the real estate agent to make a sale or fragment neighborhoods based on ethnicity.
Steering is the act of guiding home buyers to neighborhoods based on their race, ethnicity, or religion. It also worked in guiding home buyers away from neighborhoods.
This practice was used by real estate salesperson agents and urban planners.
Racial steering is used to segregate neighborhoods.
Steering as an act is something that hasn't gone away since the early 1900s. One of the most recent national cases occurred in 2006.
When dealing with a client, you should always consider where they want to live. Never outright choose the location for them without hearing their interests, tastes, and needs.
Therefore, the best way to avoid racial steering (even inadvertently) is by asking the client “where do you want to live?”
Redlining is another discriminatory behavior in real estate. This is the act of segregating neighborhoods based on race, ethnicity, and religion.
Redlining was used most often with banks in the mid to late 1900s to avoid financial investment in minority-populated neighborhoods.
This form of discrimination accounts for the devaluing of land and property by encouraging a negative stigma.
For example, in the late 1900s, banks wouldn’t give loans to residents of redlined zones, causing the well-being of houses and property to drastically diminish.
This resulted in the well-being of land decreasing as well.
Real estate agents must show the property in a variety of neighborhoods. In other words, steering a client to a redlined neighborhood is illegal and must be avoided.
When a client asks about the racial makeup, crime rate, or education rate of a neighborhood, always direct them to resources that will help answer these questions.
Advertising property must be handled with care. Promoting a property could result in excluding certain populations from the property. This won’t only be considered illegal practice, but it could harm your business whether intentional or not.
You must be conscious of advertisement phrasing.
Aside from being aware of race, ethnicity, and religious practice, you should consider how you speak to people of a specific gender, disability, and familial status.
Here’s one example of unaware exclusionary phrasing: When advertising a property with a great hiking trail, you might say, “This home is fantastic for hikers.”
What you might not realize is this is excluding people who cannot hike, because of a disability.
They will be less likely to work with you, because of being excluded from your advertisement.
When you’re in doubt about whether or not something could be exclusive, you should omit it from the advertisement. Also, always be aware of how your speaking to others, whether through a listing or in person.
Inclusivity goes a long way - especially in real estate.
To become a successful real estate agent, you don’t need to close the biggest million-dollar listing (it couldn’t hurt, though!) Success isn’t based on a real estate agent's salary. To thrive, you’ll have to do more than finding real estate for sale.
You have to focus on the fundamentals that make you an unstoppable agent.
These are the foundational elements that make up a successful agent's professionalism and work ethic. In other words, success is more than just dollar signs.
Here are the characteristics of successful real estate agents:
Real estate motivational quotes can only go so far. There’s a number of ways to keep yourself pumped up to work every day. One of the best ways is to keep an open mind about your career.
Staying open-minded is the best way to invite opportunity into your life.
In real estate, you experience hurdles that will ruin your momentum to grow. Trying new strategies to sell a home or to market your services will help you maintain a competitive edge amongst others.
Adopting new, inventive ways to conduct business will not only help feed your open-mindedness, but it will help you build passion.
When you’re passionate about your career, you’ll naturally find yourself motivated to excel.
Agents who are active in their careers will, sooner or later, find success. When you put in the extra work and go beyond what is expected, your success doesn’t become a matter of “if” but a matter of “when.”
Here’s why going that extra mile in your career will always lead to success:
Whether you’re negotiating for your client or - literally - going the extra distance to attend a real estate class, you’re showing people you have an excellent work ethic.
This will make you adopt the reputation of being a hard worker. When people hear you take yourself seriously, they’ll be more likely to work with you. It will also keep you from slacking off in your career.
You’re your own boss in real estate, so you have to hold yourself to higher standards.
This is why discipline and commitment play a big role in your success.
To stay disciplined and committed in your career, you - simply - can’t give up. That’s easier written than done. You need to go through the daily work, always be networking, and choose to work when others aren’t.
Commitment to maintaining an excellent quality of work is also an important part of being a real estate agent. Some people cut corners or practice unethical behavior.
When you practice unethical behavior, people will have a negative opinion about you. Nothing is worse for your success than a bad reputation.
Always stay disciplined to do the work and stay committed to doing it with excellence.
The real estate industry is always changing. That’s why staying updated on trends, news, and practices is the best way to remain a cutting-edge real estate agent.
Having sharp, updated information about markets, the economy, and the greater industry will keep you competitive. You will never be out of the loop and run the risk of being an obsolete real estate agent.
You will also have the authority and knowledge to help you excel in your real estate career.
The final step is to change your frame of mind. Instead of listening to the inner monologue that makes you second guess yourself, remind yourself that you can achieve success as a real estate agent.
Whenever you have the thought “What if I can’t do it?” remember to ask yourself “What if I can do it?”
Taking the time to change your mindset will give you the confidence you need to close deals, negotiate, and find leads.
The successful real estate agent doesn’t become successful by hacking the system or practicing unethical work behavior. They become successful by choosing to go the extra mile because they feel passionate about their career.
This is an internal change that everyone has to go through in order to become lucrative in their career. You can start becoming successful today by adopting these characteristics.
Becoming a real estate agent is daunting. You have the onus of finding your own clients, negotiating with heated personalities, and handling confusing legal work. There’s plenty to fear.
How to be a successful real estate agent is dependent on how you overcome these common fears. When you find yourself avoiding responsibilities in your career, you could be putting them off because you’re fearful of tackling the challenge.
Finding how you can connect with a client or managing a heated negotiation isn’t easy. These are skills that you develop over time, and overcoming your fear of failure is a major part of getting better.
You might even find out that once you start breaking down these fears, they aren’t so scary after all.
Residential purchase contracts, deeds, and leasing agreements—oh my!
These are just a few of the forms you’ll handle as an agent. At first they can sound intimidating, but the more you work with them, the less daunting they become. In fact, you’ll soon realize these documents are easier to master than you think.
Since the National Association of REALTORS® settlement, every REALTOR® representing buyers must secure a written buyer‑representation agreement before the first home tour (virtual or in person). The agreement must outline the services you’ll provide, its time frame, and—crucially—that your compensation is negotiable.
Before you dive into real estate, make sure you understand (or at least brush up on) the contract types you’ll encounter. Doing so will help you manage the paperwork smoothly when you’re handling real‑world transactions.
One of the biggest problems real estate agents face is talking to clients.
More real estate agents than you think to struggle with their fear of working with another person. They might think they’ll say something that ruins the client relationship.
These are the inner fears that creep up in most careers. The reason: being likable and professional is important to your success.
Exposing yourself to more professional interactions is the best way to overcome this fear. You will be surprised at the sight of your shy personality shift into a charismatic socialite. When you do, you’ll attract more leads and retain more clients.
The most popular fear that real estate agents (and most people) experience is rejection.
Prospecting and door-knocking make you vulnerable. You’re putting yourself out there and, more often than not, you’ll be rejected. There’s no way to avoid people turning down your services as a real estate agent.
When you experience rejection while prospecting or door knocking, remember they aren’t rejecting you: the person. They are expressing how they are not interested in your services. In other words, try not to take it personally!
Easier said than done, right?
Remind yourself that a “no” doesn’t mean the client is angry with you. There’s no animosity or hatred projected. They simply are not interested in working with a real estate agent.
And that’s okay! Every time you experience a “no” from a prospect, you’re one step closer to the one that will give you an excited “yes!”
The only way to overcome the fear of rejection is to expose yourself to rejection.
Everyone wants job security, but that’s not always guaranteed in real estate.
Because agents work on commission, you may go months before seeing your first paycheck. That’s why it’s smart to secure another income stream before you jump in.
If you’re moving from a stable 9‑to‑5 into full‑time real estate, expect some long nights at first. To reduce financial stress, take small, intentional steps: keep a part‑time job, pick up weekend shifts, or complete your licensing classes online while you still have steady income.
Remember, today’s market is different. Thirty‑year fixed mortgage rates have hovered around 6.7 %, more than double the sub‑3 % rates of 2021, so buyers are extra payment‑sensitive.
New agents who thrive now lean on AI‑powered CRMs and chatbots for low‑cost lead nurturing, and they use remote online notarization (RON) where it’s available to shave days off the closing timeline. Building these tools into your business plan can cushion the cash‑flow gap while you ramp up.
Most fears you experience as a real estate agent will dissipate with exposure. When you confront these fears head-on, you’ll realize they aren’t as scary as you think. And, when you do overcome these fears, you’ll find yourself excelling in your real estate career.
What’s a time when you overcame fear in your professional career?
As a real estate agent, you’re your own boss. This sounds wonderful, but you also have to play the role of the boss when holding yourself accountable. You can lose track of projects, client relationships, and listings when you don’t practice excellent real estate agent time management strategies.
Top real estate agents all have one thing in common: time management skills. Becoming a real estate agent will require you to develop great habits that keep you progressing through your career. Below is actionable, real estate agent time management advice that you can apply to your career right now.
Goal setting will help you visualize what needs to get done. What people don’t realize is that the majority of goal setting is done wrong. You might have an idea of what you want to accomplish, but if it just remains an idea, you’ll never accomplish it.
To practice efficient real estate agent time management, you should set realistic, tangible goals. The best way to do this is, to be honest with yourself and your capabilities of completing a task. Writing “becoming a successful real estate agent” is great for dreams, but don’t expect to reach this goal without simple action steps.
When you have a big project, break it down into as many small goals as possible. Doing so will help you identify every action item you need to complete to meet your goal.
You could knock a bunch of items off your to-do list, but still, get nothing done. Productive procrastination is the phenomenon of working on simple, mundane tasks to avoid the bigger, more daunting task. It’s a symptom of not having a clear action plan for tackling the bigger projects.
Prioritizing your work will help you alleviate those busy days with low results. According to the 80/20 rule, 20% of your projects will produce 80% of the results you’re looking for. Therefore, focusing on the 80% of projects that produce 20% of the result, will be using your time unwisely.
Breaking down the bigger projects into smaller steps will help you not feel so intimidated in getting those priority tasks done. This is efficient real estate agent time management.
We like to think we can do everything, but the truth is: we can’t. Sometimes we have to ask for help - and that’s okay!
Taking on more work than you can handle is a sign that your brand is growing. That means it’s time to grow your team. There’s plenty of benefits in delegating responsibilities to another person. When your business grows, you’ll have more real estate jobs for people who could use the extra work. This will grow your network and help you take on more clients.
Delegating will help you manage your time better by setting your schedule free from the confines of repetitive tasks. This means you can focus on the important work.
Managing your time and beating procrastination is all about creating clear objectives. Making a list of the action steps you need to complete in order to finish a project is just as important as setting deadlines. When you give yourself deadlines, you create a timeframe for when a project must be completed.
This will keep you from lallygagging.
People with clear deadlines will have more drive to finish their tasks within the timeframe. This is because they have a clear objective to follow. By removing any room for procrastination, you will be able to finish any project you start - in a timely manner.
Distracted working is inefficient. Avoid multitasking when you can, because the added stimulus will distract you from the priority tasks. According to the American Psychological Association, multitasking reportedly decreases productivity by 40%.
Sending emails to clients, while showing off a property to another client, might sound like efficiency, but you’re actually hindering yourself by doing this. Therefore, you should focus on one thing at a time. You can fully immerse yourself in the work and produce a higher quality result than you would when you’re multitasking.
One of the best real estate agent time management strategies is keeping a Rolodex of your contacts. Whether it's a spreadsheet of names and phone numbers or a fully functional contact management system, you should always keep your contacts nearby.
This will decrease the amount of time you take searching through your phone or a piece of paper, that you lost long ago. Having your contacts organized and well-managed will also keep you from procrastinating from reaching out to leads.
One of the reasons why real estate professionals procrastinate is because we fear failure. What’s even more confusing is that we often subconsciously lie to ourselves about why we procrastinate. Often times we will use the excuse “now’s not the best time” or “I’ll do this tomorrow,” when we are avoiding the possibility of failing.
If the task is a priority, then you should plan on doing it immediately.
You can overcome this fear by accepting the fact that we all fail at some point. This is okay because failure is a natural part to becoming a successful real estate agent. Overcoming this fear becomes easier the more often you expose yourself to failure.
Batching your work is a quick way to optimize your work schedule. Real estate agent time management is easier when you're creating a schedule to focus on one project. This will keep you in the same mindset as you complete your project. One of the reasons why we fall off our productive workflow is because we have to shift gears from one project to another.
For example, you could switch from sending emails to showing property and then back to sending emails. Batching your work in timeframes throughout the day will optimize where you allocate your time. For example, you can reserve the morning for showing property and the afternoon for sending emails.
Don’t forget to reward yourself for completing projects. This form of positive reinforcement will encourage you to work towards rewards. Whether it's sleeping in a little the next day or enjoying a few hours at the spa, giving yourself a treat is a great way to show self-appreciation.
Moreover, you should schedule time for play. This can be grabbing lunch with a friend or decompressing with a walk through a park. Scheduling time to relax and not think about work is important to stay productive. Without play, you’ll burn out and grow resentment for your own career.
Scheduling, prioritizing, and creating a list of what needs to be done might seem like simple things to do, but they go a long way in boosting your productivity. Since you’re your own boss, you have to act like a boss. By managing your time wisely, you won’t let yourself slip.
What’s a simple real estate agent time management tip that’s helped you finish your work?
Yes, real estate is a good side hustle. But it's not the passive income most people picture.
This isn't drop-shipping. You won't wake up to commission notifications from work you did last week. Real estate rewards people who show up, build relationships, and learn the business. A real estate side hustle has a real runway before the payoff. The payoff can be big, and the barrier to entry is lower than almost any other licensed career.
Here's the honest breakdown: startup costs, time commitment, income reality, the referral-agent shortcut, and how to know if it's worth it for you.
Real estate is a good side hustle for anyone willing to treat it like a real business instead of a hobby they dip into when convenient. A part-time agent can earn real money, but the timeline is longer than most side-hustle articles admit.
According to the U.S. Bureau of Labor Statistics, the median annual wage for real estate sales agents was $56,320 in 2024, and the top 10% earned more than $125,140. Those are full-time numbers. Part-time agents close fewer deals, but even one transaction in a mid-range market can put thousands of dollars in a single commission check.
Here's the honest caveat: the first year is hard. According to the National Association of REALTORS 2024 Member Profile, REALTORS with two or fewer years of experience had a median gross income of $8,100. That's not a typo. Building a client base takes time, and most agents don't hit their stride until year two or three.
If you can handle a slow ramp, the upside is real. If you need income in 60 days, look elsewhere.
A real estate side hustle works best for people with a strong local network, the patience to wait months for their first check, and real availability on evenings and weekends.
The hours are rarely the hard part. Working 20 hours a week is doable. Being available when your client needs you is the real test. Your client is making the biggest purchase of their life, and they want to feel like your top priority. Picture buying a home and hearing your agent say they can't make the tour because of their other job. That's how you lose a deal.
It's a strong fit if you:
It's a harder fit if you:
The part-time model is also one of the smartest ways to go full-time later. You keep your paycheck, build a pipeline, close a few deals, and make the leap with momentum already behind you. That beats quitting your job and hoping clients appear.
Yes, and there are no workarounds. A real estate license is the state-issued credential that legally lets you represent buyers or sellers and collect commissions. Without it, you can't earn from a sale. Every state requires one.
The process follows the same basic shape in most states:
Some states move faster than others, but getting licensed is a fixed cost of admission, and it's lower than almost any other licensed profession.
Most people get licensed in 3 to 6 months, depending on the state and how fast they move through the coursework. States with shorter requirements (45 to 60 hours) can be done in a few weeks. States with longer requirements (90 to 135 hours) take closer to 4 or 5 months of part-time study.
The timeline usually breaks down like this:
Online pre-license programs let you move at your own pace. Start your coursework today, and you could be licensed before the end of the year.
Getting licensed costs between $300 and $1,200 in most states, and total first-year costs usually run $1,500 to $3,000 once you add brokerage onboarding, professional dues, and basic tools.
Here's how the costs typically break down:
That's a real number, but context matters. A single commission check on a mid-priced home usually covers it entirely.
A part-time real estate agent's income depends entirely on how much they sell, but even one deal can out-earn months of a typical side gig. The BLS and NAR figures above set the floor and the ceiling. What lands in your pocket comes down to commissions.
Real estate agents earn a percentage of a home's sale price, paid out through their brokerage. The total commission is split between the buyer's side and the seller's side, and your brokerage then splits its share with you. New and part-time agents often start near a 60/40 split, though splits range from 50/50 to 70/30 depending on the firm.
Say you help a buyer purchase a $400,000 home and the buyer-side commission is 2.5%. That's $10,000 to your side of the deal. After a 60/40 split with your brokerage, you'd keep about $6,000 from one transaction. Want the full math? Here's how real estate commissions work.
Since the National Association of REALTORS settlement took effect in August 2024, buyer-broker commissions are negotiable and no longer posted on the MLS, and buyers sign a written representation agreement before touring homes. In plain English: you and your buyer agree on your fee up front, in writing. Set that expectation early and it's a non-issue.
A real estate referral agent holds an active license and earns a fee for sending clients to other agents, without ever managing the transaction. A referral agent connects a buyer or seller with a working agent and collects a cut of that agent's commission in return.
This is the lowest-effort path in real estate. If a friend, family member, or neighbor wants to buy or sell, you hand them to an agent you trust. That agent does the heavy lifting, and you collect a check. The referral fee is usually 20% to 25% of the receiving agent's commission. On the $6,000 example above, that's roughly $1,200 to $1,500 for one introduction.
There's a quiet perk almost nobody mentions: referral agents skip most local REALTOR association and MLS dues, which saves hundreds to thousands of dollars a year. Two rules matter. Your license has to stay active and hang with a supervising broker, and the fee has to be paid broker-to-broker. An inactive or expired license can't legally be paid.
See all the ways a real estate license can generate income.
Part-time agents work mostly evenings and weekends, which is exactly when most buyers are free. Your clients work 9-to-5 jobs too, so they can't tour homes or take calls on a Tuesday afternoon. That makes the part-time model a natural fit for both sides.
A typical week looks like this:
What real estate is not is passive. Agents who get their license and wait for business rarely close anything. The money goes to people who prospect consistently and protect their client's time like it's their own.
Selling real estate part time comes down to three things: generating leads, managing your time, and choosing quality over quantity.
One more thing: tell your brokerage your plan during the interview. Whether you want to stay part-time, transition to full-time, work referrals only, or represent your own investment deals, the right brokerage will back you. If you're picking one, here's how to choose the right brokerage.
The first step is getting licensed. Everything else follows. You enroll in a state-approved pre-license program, finish the coursework, pass your exam, and join a brokerage.
From there, the strategy is simple: tell everyone you know. Your first deal almost never comes from a cold lead. It comes from a coworker, a cousin, or a neighbor who's buying a house and didn't know you were licensed. The fastest way to close your first deal is making sure your network knows you're in the business.
Real estate is one of the few side hustles with no income ceiling, a schedule you control, and a clear path to full-time if you want it. The catch is the runway. Expect 3 to 6 months to get licensed and another 6 to 12 to close your first deal.
The people who know that going in, treat it like a real business, and stay consistent can build something that outpaces their day job within a couple of years. Your move is to decide whether you're one of them.
Ready to start? US Realty Training offers state-approved pre-license courses online, with the structure and support to help you finish your coursework and pass your exam the first time. Enroll in your pre-license course and start building toward your license today.
Money is one of the most important resources a real estate agent can have. Having great real estate budgeting habits will help you save up when times get tough. This might sound obvious, but some agents blow through their savings with negligent spending habits.
When they do, they have to adopt another form of income or give up on the real estate agent lifestyle for good.
Real estate budgeting habits will keep you from ruining your career with a few purchases. With the right kind of budget for real estate, an agent can turn their entire business around. Adopting the right habits starts with creating a foolproof real estate budget.
The best way to start your budget is to plan month-by-month.
Planning a monthly budget gives you a clear idea of where you are allocating your money. Using an excel budget template or another form of tracking is a beneficial tool in visualizing your expenditures.
While creating a monthly budget, you should have a clear goal of how much money you are willing to spend. The best way to determine the amount of money you’re willing to spend each month is by listing the accrued monthly costs.
To list your costs, you will have to track where you spend your money month-to-month. Keeping receipts, transaction documents, payment records, and any other receipt form are integral to any money management plan.
When you have the appropriate documentation, make a list of your monthly expenditures. This should include every product or service that you spend money on.
Plan on being honest with yourself about your spending habits. Remember, it’s always best to err on the side of caution when listing your costs. You should also plan on listing the money you will be putting away in investments, retirement funds, and your emergency fund.
Investments and retirement funds should be included in your listing costs. This is because you are completely responsible for your own investment and retirement. You don’t have the security of a company to help you reserve funds for the days you will no longer be working.
The real estate agent's salary is entirely dependent on a commission-based income. Therefore, planning for the future is a vital part of saving money. If you don’t put away funds into investments or a retirement plan, you won’t have any money to fall back on when (or if) you decide to retire.
Making an emergency fund is an excellent safety net for rainy day situations. When a drastic, unexpected event occurs that siphons your money, you’ll want to have the security of an emergency fund to help finance your living conditions.
Reserving some of your money for a bad scenario is standard practice for real estate professionals. Your salary is unpredictable and inconsistent. Having as many safety nets in place to catch you when you fall will make or break your career.
Paying with cash is an old, traditional trick. When you strictly use cash for the payments of goods and services, you will spend less overall. The reason being, paying with cash is harder than paying with a debit or credit card. Transparent money transactions (such as paying with a credit card) cause you to be less averse to payments.
Therefore, when you pay with cash, you’re less likely to overspend. This will help you stay within your real estate budgeting limits - especially if you run out of cash in your wallet.
When you’re paying with credit cards, you’re more likely to spend more money. However, there’s plenty of benefits to making payments using a credit card. One of the major benefits is accruing points over time. This will make you eligible for special perks and rewards with your bank provider.
Another benefit of using a credit card is accumulating good credit for making payments on time. This will help you on down the line by building an excellent credit score.
Finally, you should always keep the receipts of payments, money transactions, or over-the-counter deals. This is an old-school habit that helps you collect a history of your payments. Doing so serves well when calculating your monthly expenditures and gauging how much over (or under) you are with your spending.
Keeping a record of your transactions will greatly benefit you when doing taxes too. Tax season is a headache - especially for real estate agents. You can make the process simpler by keeping your receipts organized.
Being conscientious about your real estate budgeting habits will help you survive as a real estate agent. This is especially true for your first year. Adopt these healthy habits now, so you growing your business is easier in the long run.
If we created a downloadable real estate budget template, would you find it useful?
If you’re reading this, chances are you’ve wondered how to become a successful real estate agent. Achieving success in real estate takes dedication and hard work, but there are a few tips that can make your journey a little easier.
We sat down with CA Realty Training owner and head trainer, Robert Rico, to learn the best advice for new real estate agents and the tips that helped him build a successful career.
Producing wholesome work will set you apart from every other real estate agent in the industry. In the words of Robert Rico, “Don’t half-a** it.” Every task deserves your full attention and energy. Without this commitment, you risk producing subpar work, which often leads to the reputation of an inexperienced agent.
Imagine you’re preparing a marketing package for a new listing. Instead of quickly throwing together some photos and a description, you take the time to create high-quality images, an engaging property video, and a well-written description. You hold an open house that’s well-promoted, with snacks and a welcoming atmosphere. The result? Your clients are impressed, and your extra effort sets the standard for future referrals.
Tip: Always go the extra mile and commit to delivering quality work. This commitment will differentiate you and help you build a reputation as a professional real estate agent.
Scheduling everything you do will help you stay organized, increase productivity, and improve time management. By keeping an organized schedule, you’ll be able to track appointments, meetings, and commitments on a visual calendar.
A new agent relies on their memory for appointments and meetings. After double-booking two important clients and missing an open house, they quickly realize the importance of scheduling.
Tip: Plan your days, weeks, and even months in advance to stay on top of your workload. This practice will help you take on more responsibilities without feeling overwhelmed, and it will greatly reduce stress.
Not building relationships is one of the biggest mistakes a real estate agent can make. The agent with the biggest network gets the most work and the most referrals.
An agent works with a first-time homebuyer and takes extra time to answer every question, follow up regularly, and take note of their preferences. After closing, the agent sends a thoughtful thank-you gift and checks in periodically. A year later, that same client refers a friend because they felt so valued.
Tip: Take time to show your clients you care. Taking notes after conversations and setting reminders about their needs can help you prioritize them. When clients feel remembered and valued, they are more likely to refer you to others.
You can’t rely on your memory alone. Writing everything down—from client details to important meetings—will help you stay organized and avoid missing crucial information.
An agent fails to write down key client preferences discussed during a call. Later, they present the wrong type of property, which frustrates the client and causes them to look elsewhere.
Tip: Keep a notepad, tablet, or digital tool handy to record all important information. Documenting conversations and client preferences ensures nothing gets overlooked, helping you deliver better service.
Becoming a successful real estate agent isn’t about luck—it's about effort, strategy, and dedication. By taking the time to thoroughly execute your responsibilities, you can transition from wondering “if” you’ll be successful to “when” you will be.
When you build a professional lifestyle based on fundamentals like quality work, scheduling, relationship-building, and consistent note-taking, success becomes inevitable.
Nobody wants to make mistakes, but they can be unavoidable at the start of your career.
If you dream of building a successful real estate career, there are some common pitfalls to avoid. Here, we share the biggest mistakes new real estate agents make and how to avoid them.
Lead generation is one of the backbones of a successful real estate career. By not actively generating leads, you miss out on potential clients and risk having an empty sales pipeline.
Imagine starting out and deciding to put off lead generation because you think you need to learn more first. A few months in, you find yourself with no prospective clients and an empty calendar. The truth is, by the time you realize you need leads, it's often too late to fill your pipeline quickly.
Solution: Begin lead generating as early as possible—even while you're in real estate school. Create an engaging website, run ads, connect on LinkedIn, and reach out to your sphere of influence. The more consistent your lead generation, the better prepared you will be when opportunities arise.
Leave secrecy to actual secret agents. In real estate, you need to be visible and present in your community to build familiarity and attract clients.
A new agent hesitates to share their profession with friends or on social media, thinking it's too "pushy." A friend ends up using another agent for a home purchase simply because that agent was vocal about their business.
Solution: Put yourself out there consistently. Attend community events, engage in local businesses, and share your career updates. By staying top of mind, you'll be the first person clients think of when they need a real estate agent.
The real estate industry has its ups and downs, which is why proper financial management is crucial for long-term success.
An agent lands a few early sales and starts spending their commissions on luxuries, assuming the money will keep rolling in. A few months later, the market slows, and they struggle to pay their bills.
Solution: During periods of plenty, set aside a portion of your income for savings, retirement, or investing. This financial cushion will support you during slower times, reducing stress and ensuring your business can continue to grow.
Communication is key to client satisfaction in the real estate industry. When clients feel left in the dark, it leads to frustration and mistrust.
An agent closes a deal but fails to keep the client informed throughout the process. The client becomes frustrated and, even though the transaction is successful, decides not to refer the agent to others.
Solution: Set clear expectations for communication. Agree on how often you'll update them and which channels you'll use. Scheduling regular check-ins—like a weekly update—can help keep clients in the loop and feeling valued.
Your brokerage offers valuable resources like in-house software, information portals, and experienced mentors.
An agent ignores the training resources offered by their brokerage and tries to figure everything out independently. They make several mistakes that could have been avoided with the proper guidance.
Solution: Take advantage of your brokerage's resources. Observe experienced agents, learn from their successes and mistakes, and leverage available tools to stay informed on industry trends.
Proper planning is crucial for success. A lack of a clear plan will lead to wasted time, energy, and missed opportunities.
An agent starts their career without a clear business plan, hoping to "figure it out as they go." Months later, they realize they have no direction or strategy for generating steady business.
Solution: Treat your real estate career like a business. Create a detailed, written business plan with defined goals and strategies to keep you on track and motivated.
Goal setting goes beyond random aspirations—it involves setting specific milestones and planning your career trajectory.
An agent sets an unrealistic goal of closing 10 sales in their first month, but ends up discouraged when they don’t achieve it. They start doubting their potential in real estate.
Solution: Set realistic, achievable goals. Break larger goals into smaller milestones—for instance, aiming to close your first sale within two months. This approach will help maintain motivation and build confidence as you achieve each milestone.
The real estate market is constantly evolving. Staying updated with industry trends is crucial for maintaining your edge.
An agent doesn’t keep up with the latest market technologies or trends. Eventually, they lose potential clients who prefer tech-savvy agents with up-to-date marketing strategies.
Solution: Be a lifelong learner. Stay informed about industry updates, learn new skills, and seek out information about emerging trends. The more you learn, the more value you can bring to your clients.
The idea that you need to "pay your dues" by taking on low-value work or accepting less than you deserve can hold you back.
A new agent agrees to a lower commission split than they deserve, thinking it's part of paying their dues. They end up feeling unappreciated and resentful, which affects their motivation.
Solution: Know your worth from the start. Negotiate for a fair commission split and don’t be afraid to advocate for yourself. You deserve to experience success regardless of how new you are to the industry.
Your "why" is the reason you became a real estate agent, and it will keep you going even when the road gets tough.
An agent hits a rough patch and begins to doubt their decision to enter real estate. Without a strong "why," they decide to quit after facing a few setbacks.
Solution: Identify your "why" early on. Whether it’s financial freedom, helping people find their dream home, or building a legacy, a strong purpose will keep you resilient during tough times.
Most brokerages rolled out AI platforms in 2024, and top-producing agents now generate listing descriptions, video scripts, and comparative market analyses in minutes instead of hours. Sticking to manual copywriting signals to tech-savvy clients that you’re behind the curve and wastes time you could spend prospecting.
Solution:
• Block one afternoon to test at least one AI CMA generator (for example, Cloud CMA Live or Delta Pitch).
• Create three reusable prompt templates—listing description, price-adjustment email, and buyer search alert—so you can drop in property data and hit “send.”
• Connect the tool to your CRM so every new listing automatically produces a marketing packet ready for review.
Short-form video reach peaked late in 2024; the 2025 algorithms reward saves and direct-message shares over raw views. Flooding your feed with daily clips while neglecting email, blogs, and open-house follow-ups leaves big holes in your funnel and accelerates audience “reel fatigue.”
Solution: Adopt a 30-30-30 content mix:
• 30 percent short-form video for reach
• 30 percent long-form authority pieces—blog posts, podcasts, market reports—for depth
• 30 percent direct engagement—email sequences, neighborhood events, personal calls—for relationship building
Repurpose each reel’s script into a quick blog paragraph to capture long-tail search traffic and reinforce your expertise across platforms.
Avoiding these common mistakes can make a huge difference in shaping your real estate career.
Beyond simply avoiding pitfalls, taking proactive steps to develop good habits and skills will help you stand out in the industry.
Remember: nothing can stop you if you refuse to let anything hold you back.
How to get real estate clients is a question that plagues the minds of many agents in the industry. To answer this question, you must critically assess how you cultivate your real estate client relationships.
Herein lies the foundation of a successful real estate agent career.
When you foster relationships with your clients, you create a network of leads and testimonials that provide you with limitless opportunities. Imagine never feeling the stress or anxiety of finding your next client—when done right, the clients will find you.
Maintaining relationships with past clients is the cornerstone of a successful real estate career. By staying in touch with those you have worked with, you keep yourself at the forefront of their minds when they, or someone they know, need real estate services.
People are more likely to work with someone they already know and trust. By maintaining regular communication with your clients, you ensure that they think of you first when they have a real estate need. This approach not only helps secure repeat business but also encourages your clients to refer their friends and family to you.
Clients who feel connected to you will be more inclined to refer others to you when the opportunity arises. This is why maintaining client relationships is so crucial—it keeps you top of mind and ensures that your name is the first one they mention when discussing real estate needs with their network.
Strengthening your client relationships begins by building personal bonds rather than purely business connections.
A strong relationship is built on authenticity. Genuinely caring for your clients will show them that you are invested in their lives beyond just a transaction. One simple way to demonstrate this is through gift-giving—sending a thoughtful gift during a holiday or special occasion shows that you care.
A well-timed gift serves as a pleasant reminder to rekindle the personal connection. It doesn’t need to be expensive—the key is that it is heartfelt and meaningful. Gift-giving encourages your clients to see you as a genuine individual rather than just a businessperson seeking a commission. This approach strengthens the bond and builds loyalty.
If gift-giving isn't feasible, sending a letter is another powerful way to maintain a client relationship.
The truth about maintaining client relationships is that small gestures can go a long way. A handwritten letter adds a personal touch that will make your clients feel valued. Sending a letter around special events, like a home purchase anniversary, can have a profound impact.
A well-written letter reminds your clients that you are thinking of them and adds a personal dimension to your communication. This personal touch can help keep you top of mind, making them more likely to reach out to you for future real estate needs.
Finding the right frequency for communication is essential for fostering strong relationships.
Too much communication can come across as pushy, while too little can cause the relationship to fade. The key is to find the sweet spot—reaching out around holidays or special occasions is an effective way to stay in touch without overwhelming your clients. Remember important dates like home purchase anniversaries or birthdays, and use them as opportunities to connect.
These principles don’t just apply to professional contacts—they work in your personal life as well. Cultivating relationships with thoughtfulness and care will make you more authentic and approachable in all areas of your life.
Maintaining strong client relationships is vital for building credibility and generating new leads.
People want to work with agents who genuinely care about their well-being. By maintaining authentic connections, you not only secure repeat business but also encourage clients to provide testimonials and referrals. These are essential for building credibility and attracting new clients.
Successful agents are those who have built a solid foundation of client relationships. They understand how to be human with their clients—creating and cultivating relationships that lead to long-term success.
Getting real estate clients doesn’t have to be a challenge. Many agents overcomplicate the process by searching for gimmicky strategies. The honest and secure way to build a thriving client base is to cultivate and maintain meaningful relationships. By being authentic, staying connected, and showing genuine care, you become the agent that clients trust and recommend. At the end of the day, people want to work with people—so focus on building relationships that last.
What’s holding you back from connecting with clients?
You’ve almost closed a deal on that house—the buyers are happy and so are you. But before you sign the deed over to the new owners, a real estate home inspection is necessary.
You as a realtor need to do more than the routine repair check, the thorough house cleaning, and instilling that “spic and span” feeling.
You should also involve a real estate home inspection service which makes sure that the house is free of routine pests. If you have a pest infection in the house, it can devalue the property. Here are a few ways this can happen:
Pests can pose a health threat to potential buyers. Cockroaches can cause many allergies and bee stings can cause adverse reactions. Potential buyers may shy away from making a deal if they spot a potential health hazard.
Health effects aside, there are some pests that will cause structural damage to the house. Such as:
German cockroaches damage books, wallpapers, and similar items by feeding on them. Unless proper cockroach control is implemented, German cockroaches can also produce foul-smelling secretions.
Carpenter Ants
Carpenter ants tend to hollow out tunnels in decaying wood to nest inside.
Bed Bugs
Though bed bugs are far from causing any structural damage to a house, an infestation can impact its value since bed bugs are notoriously difficult to get rid of.
Honey Bees
Honey bees can enter your home from small openings in your house and can construct honeycombs that can fill the whole wall cavity. These colonies can grow to such an extent that they can damage walls and roofs of the rooms they reside in.
Fire Ants
Fire ants can cause electrical malfunctions by swarming electrical devices in large numbers.
Powderpost Beetles
Powderpost beetles can cause structural damage by destroying wood-based furniture, support beams and other random objects.
Termites
Termites are the most feared pests as they can lower your home’s aesthetic appeal. Termites reduce the value of your home by eating away through the wooden structural support system of the house.
Things the Inspector Will Check During a Pest Inspection
A pest inspection is necessary to eliminate the possibility of these bugs causing any damage in the future. A pest inspector will carry a moisture meter, thermal imaging camera, torch, ladder, binoculars, knife, magnifying glass, long handle probe to check the house. Though all companies are different, here’s a general overview at what an inspector looks for during a pest inspection.
When you are closing a home, a routine real estate home inspection is important before you make the final sale. A pest inspector will evaluate each room in the house, the roof, the fences in the garden, outbuildings (like sheds and stumps) to check for a pest infestation in your house.
Having a readymade pest inspection report before making the final house sale will give you an edge in the competitive real estate sales market, and will give the potential buyers peace of mind.
Social media beats every other technology at generating real estate leads. According to NAR's 2025 Technology Survey, 39% of Realtors call it their best source of quality leads, ahead of CRMs at 23% and the MLS at 17%. Most agents still post at random and hope.
These five real estate social media marketing tips give you a system instead: what to post, where to post it, and how to turn comments into clients. Each one works whether you got licensed last month or last decade.
Social media works for agents because buyers and sellers now vet you online before they ever call, and it's where they spend their attention every day. Real estate social media marketing is the practice of using platforms like Instagram, Facebook, TikTok, and YouTube to build trust with your market and turn attention into leads. The numbers back it up: NAR's 2025 Technology Survey found 75% of Realtors use social media in their business, and more of them name it their top source of quality leads than any other technology.
Before you post anything, pick one goal to measure: follower growth, engagement, website clicks, or leads generated. One goal per quarter keeps your content honest, because you'll know within 90 days whether it's working.
Instagram is the best single platform for most real estate agents in 2026, and Facebook is a close second for local groups and referral business. The right answer depends on where your future clients spend time, so match the platform to your market instead of chasing all five.
Pick one primary platform and commit for 90 days. Expand only when posting there feels automatic.
Short-form video is the highest-reach content type on every major platform in 2026, so it comes first. Reels, TikToks, and Shorts put you in front of people who have never heard of you, which is exactly what a new brand needs.
Keep it easy or you'll quit: 30-second neighborhood tours, one-question answers ("What does earnest money do?"), listing walk-throughs shot on your phone, and market updates in plain English. Polish matters less than showing up weekly. Save long-form for YouTube, where a good buyer-education video keeps pulling search traffic for years.
Local content wins because most of your future clients live within a short drive of you. Post about the farmers market, the new coffee shop, school events, and what homes near them sold for. Nobody scrolls past their own neighborhood.
Three habits make local content compound. Collaborate with local business accounts so their followers meet you. Write captions using the words people search ("homes near downtown Plano") instead of hashtag walls, because platform search now matters more than tags, though a few local hashtags still help on Instagram and TikTok. And keep your Google Business Profile complete and current. It's not a social platform, but it's the profile buyers see first when they search your name.
A complete, consistent profile converts more lurkers than any single post. Before you chase followers, finish every field: professional headshot, a bio that names your area and niche, contact info, and a link to your site. Then make every platform match: same photo, same name format, same colors, same fonts, same logo.
That consistency is what makes people remember you after they scroll past. Our guide to real estate agent branding walks through the full system, and the supporting guides on the 5 best real estate fonts and real estate logo ideas cover the visual pieces your profiles reuse everywhere.
In 2026, social media leads start as conversations, not form fills. The algorithm shows your content to more people when it sparks replies, and the replies are where clients come from. So end captions with a question, answer every comment, and move real conversations to DMs.
Speed matters most. Reply to comments and messages within a few hours, because the person asking about a listing is asking other agents too. For one quick way to start conversations with new followers, watch our short: Crazy social media hack for realtors.
Client proof outperforms self-promotion on every platform. A closing-day photo, a 20-second "we got the keys" clip, or a screenshot of a five-star review builds more trust than anything you could say about yourself.
Make it a system: ask every closed client for a review and a photo, get written permission to share, and thank them publicly. Then repurpose each one across formats: a reel, a story, a carousel. Our guide on using your real estate client testimonials shows how to collect and deploy them without feeling pushy.
Start with one platform, three posts a week, and a 90-day commitment. Here's the whole plan:
New agents don't need listings to post. Your licensing journey, local knowledge, and the buyer questions fresh from your exam prep are content nobody established can fake.
Social media rewards agents who treat it like prospecting: scheduled, consistent, and measured. Pick your platform, run the five tips for 90 days, and let the data tell you what to do more of.
Attention is only half the business. Turning followers into closings takes buyer consultations, listing presentations, and lead follow-up systems, and that's what our career courses teach, taught by top-producing agents. Explore US Realty Training's career courses and put a business behind the audience.
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