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California Real Estate Exam: Everything You Need to Know
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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.
The business of real estate is now conducted largely online. Rather than opening their Sunday papers to look at homes, or perusing realtors in the Yellow pages, folks are heading to Instagram, Facebook, and other social media pages.
Realtors know that they can use social media to build trust, generate leads, and create relationships with potential customers. Social media is also the path to building thought leadership, branding, and connecting with influencers. The only problem is that so many realtors aren’t using social media to its full potential. Some still aren’t using it at all.
The good news is that you can create a great social media marketing strategy for your real estate business, and the process is quite painless. Whether you’re starting from scratch, or revisiting an existing strategy, check out these five tips to start your real estate social media marketing today.
Social media marketing efforts are never static. They change over time as you learn more about what works for your business and what doesn’t. They also evolve as your goals do the same. These goals are often referred to as key performance indicators (KPIs). These should be matched to your social media marketing efforts, and might include:
Once you establish your goals, you begin to form your social media campaigns around them. Setting goals also gives you a way to establish metrics. Then, by collecting data and analyzing it, you can determine what is working and what isn’t.
Now, onto the tips…
87% of online marketers are using video. You don’t want to be one of the 13% who is still lagging behind. Another 51% of marketers cite video as the content type with the best ROI.
Video can jumpstart your social media presence. It can also help you do a better job of meeting the needs of your clients. For example, you can use video to:
Chances are, many of your potential clients will be local. Those that aren’t will still be interested in news, events, and information about the areas in which they are searching for properties to buy and sell. People from both groups will use locally optimized keywords to search for information. Naturally, a good portion of your content should be focused on local audiences.
Here are a few things you can do to optimize for local:
If you operate in multiple locations, you might consider creating an independent social media presence for each location. Finally, don’t forget to create and optimize your Google my Business profile. It isn’t directly related to social media but will improve your overall local optimization efforts.
It’s time to embrace hashtags. They can help you improve name recognition, boost your branding, and make it easier for social media users to find your content. Yes, there’s potential for hashtag overuse, but the potential benefits make these little additions to your content so worthwhile.
Start by creating a handful of branded hashtags. You’ll use these in your posts, and encourage your followers to do the same. A branded hashtag is an original hashtag that you create to be directly associated with your business. These might include, #youragencyname, #youragencynamecity, #youragencynamehomes, #youragencynamecommercial, #youragencynamesells.
Next, you’ll want to learn about industry-relevant hashtags. There are several that are popular in the real estate niche. These are perfect for making your social media content more visible to potential followers and customers. Here are some of the more common tags:
Use these and other tags to attract people who may not be aware you exist.
Finally, you can use hashtags that aren’t directly related to your business or real estate but are relevant to a particular post. For example, if you’re agency is in Chicago, you might use the tags #Cubs or #WhiteSox if you share local sports news. Used sparingly, they make your content fun, and more engaging.
The trick to getting the most traction with your hashtags is understanding how to use them in your content naturally. This starts with writing posts that are engaging and relevant. Try using a few tools and resources to help including, Hemingway, Grammarly, and Hot Essay Service.
Before you get started on any social media platform, you have to fill out a profile and create an account. You may be tempted to rush through this process, providing only the mandatory information. That way, you can get down to posting great content, right?
Don’t do that. A complete, carefully crafted profile can really make a big difference. It’s also imperative that you update your profile if you make any changes. Take the time to ensure that all of the following information is complete and up to date:
Next, you’ll want to add any other information that you can. Depending on the platform this will be your bio, story, business hours, services offered, etc.
You can leverage user-generated content in the form of testimonials, positive reviews, and shared images and stories to create great social media engagement. User-generated content also helps you to build trust and credibility. You can encourage your audience to share by:
You can also share and link to customer-generated content such as reviews and photos. Just be sure to get the appropriate permissions, and to thank the customer for their positive feedback.
Finally, remember that everyone loves a good story. If you’ve got a customer with an amazing home buying or selling story, write it down. Share it with your followers to boost goodwill, and show what you can do for them.
Your social media presence can lead to great things for your real estate business. Apply the five tips here, and watch your traffic and engagement grow.
An online directory will make you easy to find online. As a real estate agent, this is imperative for a successful career. There’s no point in making your services difficult to discover.
Prospective clients already become fatigued rummaging through catalogues of real estate agents in their area.
The market can feel oversaturated with hungry agents, and a directory will help you stand out among the crowd. Previous clients can rate and review your services, and, assuming you do a great job, it will work in your favor. Positive reviews champion your name and show prospective clients why you’ll be the best fit.
One more thing: you can start using online directories right now. The moment you finish reading this article, you can get yourself listed on a directory. In fact, that’s the goal. It’s to encourage you to start your online directory journey, so you no longer sweat over finding your next client. But more on that in a moment.
If you never heard the term “online directory” before, it can sound convoluted and overwhelming. But, they can be a simple and intuitive part of your online marketing. In fact, you use an online directory just about every day of your life.
Directories are mediums that list businesses and names in a specific order. The most common directory is the phone book. These were (before the meteor that is the internet rendered them extinct) used to find the names and phone numbers in your town or city. One would consult the phone book if they needed a phone number for a business or person. Today, they’re mostly used to prop up your uneven table leg or as paper weight for your doormat. These artifacts are outdated and have been replaced by their efficient predecessor: the online directory.
Similar to how phone books work, online directories are used to discover businesses, companies, and independent contractors. For real estate agents, this changes the way they market their business. Here are common online directories:
For simplification sake, we will focus on the first three: Yelp, Google My Business, and Facebook (when we say Facebook, we mean creating a business page to list your business information and accrue reviews.) People use online directories to find restaurants, entertainment, services, stores, and more. They judge businesses based on the poetic reviews of previous clients in the form of 1 to 5 colorful stars.
Directories are popular for a reason. They save us time and energy when we research the best business match for our needs. For business owners, they provide endless returns on making your brand accessible to more prospective clients. In the next section, things get technical – so bare with us for a moment.
Online directories help people find your services in two ways. In one way, they include you on a list and allow previous clients to review your services. When prospective clients visit the directory, they will see your glimmering reviews and – hopefully – give you their business.
They also help improve your SEO. Every directory allows you to backlink to your own website. Backlink is a digital marketing term that describes the process of linking from another website to your own website. A directory backlink makes your website accessible to those who discover you through the directory. Therefore, visitors access your website by clicking the link. No more typing the URL in the nav bar at the top of the screen. Aren’t computers great?
The perks don’t end there. Adding your business to a directory will boost your domain authority. Here’s another digital marketing term. The domain authority refers to your rank score in search engine results. For example, when people search for “Real estate agents in [insert your city or town name here]” real estate agents with the highest domain authority will be at the top of the list. The more backlinks to your website, the more domain authority your website will posses.
Now that you know what an online directory is and how they help you, the next topic to tackle is how you can get listed.
Websites like Yelp, Google My Business, and Facebook are prime directories that most businesses and individuals use. Searching for a business will produce results on these directories, if they exist. This way, if the quality of your service blow, people will know.
Getting started with online directories is as simple as creating a business account with the directory you’re choosing. Once done, fill out the required information and backlink to your website. Like we said earlier, this helps with your domain authority. Another thing: don’t forget to include a nice photo of yourself or your business. This helps clients recognize you.
Don’t be coy about promoting your listings either. When you tell clients you have a Google My Business or a Yelp profile, they’ll likely review you. The more reviews you earn the more credible your business becomes in the eyes of prospective clients.
Online directories are a free, simple way for clients to find your services online. They’re also an effective way to present testimonials through glowing online reviews. So, if you’ve been pondering how you can start getting more leads, then consider listing yourself on an online directory. As a real estate agent, becoming easier to find online is never a bad thing.
Selling a home is a formidable process for homeowners. To them, there’s too many unknowns. There’s things they don’t know that they don’t know. What they do know is they want to sell or buy a house. Either they want to sell the home they built memories in or purchase a home to build heartfelt memories in. This house is irreplaceable to them. It means the world to them.
So, imagine hiring a real estate agent to help you on your home-memory-building journey. Finding the right agent is not just important to finding the best house, but important to helping you feel confident in your purchase. This means the first impression is make or break. The first time you meet your new real estate agent, you see someone dressed down, difficult to talk to, and doesn’t know too much about the industry let alone their career. Not only that, but they seem kinda sketchy. How would you feel trusting this agent with the future of your home?
For some, this is a reality. Bad real estate agents hurt everyone. They don’t just have sloppy presentation, but they waste the time of their clients, service partners, and other real estate agents by being a bad real estate agent. Agents should always strive to embody professionalism in their business. Doing so instills trust and security in the client’s eyes.
That’s why you should always avoid the bad habits of unprofessional real estate agents. There’s plenty of signs that make a real estate agent a bad one, and the most jarring are also the most common. that’s good news for you, the reader, because they’re easy to spot so you can avoid them in the future.
Before you read on, why don’t you send this to the real estate agent who’s just starting out? It’ll help them more than you know.
So much of a real estate agent’s career is built on productive communication. It’s the cornerstone of your success when you’re representing a client, collaborating with services, and working as a member of your brokerage. Communication skills will make people gravitate to you, both in your personal and professional life. That’s why having them in your career will help you become a successful real estate agent.
When you communicate clearly and thoroughly, you will create a sense of trust with your client. This small characteristic has monumental benefits on your career. One of them being the confidence you earn from working with your client. When they feel like the experience with you is productive and valuable, they will feel inclined to recommend you to their network. This includes family members and friends.
Learning how to communicate gives your client peace of mind that they can trust you as a real estate agent. Unfortunately for you lazy communicators, the way you communicate can send your client into a spiral of worry. They will distrust you and feel like this home selling process was a major oversight. This can be easily remedied by practicing great communication skills with your client.
Lazy communication can exist everywhere. You can spot it in interpersonal interactions, responding to your client’s inquiries in a timely manner (such as a lingering email or a frantic phone call), or even representing the client in the transaction process. Being accessible to talk through your client’s concerns is one way you can be a proactive communicator.
The “secret agent” lifestyle is glorified by films as thrilling and adventurous, filled with high-tech gadgets, and intercontinental love stories. In real estate, “secret agent” is a colloquial term used to describe an agent who doesn’t market their services.
Their presence in the industry goes unseen and unheard which denotes the title of “secret agent.” They are literally a secret because they don’t produce any noise in the public. Therefore, people, agents, and service providers, won’t know if an agent is active or not.
This is a sign of an unprofessional real estate agent. Marketing your services is vital to the success of your career. If you can’t promote your services as a real estate agent, you’re not truly embodying the presence of the agent. You appear uncommitted to your profession. Moreover, you will not generate any leads or land a single client, because “secret agents” can’t be found.
To avoid becoming an industry mystery, you should always promote your services and presence as a real estate agent. You could always market your services online. But, taking a digital approach to marketing isn’t the only way to spread word about your services. You can use testimonials and word-of-mouth to help build your network and develop buzz about your new career. There’s no need to keep your professionalism and wonderful services a secret.
As a homeowner or a prospective homebuyer, nothing will ruin your enthusiasm like seeing your real estate agent step through the door wearing sweatpants, a sweater, and a head full of disheveled hair. Turns out you have a difficult time earning trust when you look like you just got out of bed. We all love sleeping, but waking up helps you stay alert and help your client. That’s why it’s important to stay conscious about your appearance as a real estate agent.
First impressions are a major part to building trust and credibility with your client. You can create client reassurance by dressing for the job with a business professional wardrobe. Don’t forget to use a comb to take out the knots, tangles, and disheveled look in your hair.
Dressing for the job shows the client you’re making them a commitment even during the first impression. This is the best visual way to avoid looking like a sloppy, unprofessional real estate agent.
You don’t have to be a professional real estate agent. Really – nobody is telling you how to function at work. The unfortunate part of being an unprofessional real estate agent is that you will be at higher risk of repercussions.
Working with a bad real estate agent is challenging for others because they can be unreliable. Agents who are unreliable build bad communication habits and are aloof when conducting business. In real estate, having someone who is engaged and interested in conducting business will turn any challenging project into a delight.
People won’t have any desire to do business with those who make work difficult with their lack of professionalism. That’s why conducting yourself in a professional manner and doing everything you can to ensure a standard quality of work is imperative to your success.
Building a successful career will be a difficult if you’re balancing a lawsuit. Which will happen to some real estate agents who have a poor quality of work. If a client thinks you’re not meeting their needs, they could hire a lawyer to help pursue charges against your services. However, becoming a professional who practices a high quality of work will help avoid lawsuits altogether.
Some common reasons why agents will get sued are:
The very least, this could result in getting reported to the Department of Real Estate (DRE).
Become a real estate agent requires hard work and dedication to the to the job. There’s a commitment you must make to your client if you want to perform well in your career. Some people have large expectations for themselves when they become agents. This backfires when they lack professional development. The good news, becoming a professional can be done by anyone. If you’ve noticed you have unprofessional habits, it’s okay. All you have to do is be honest with your professionalism, and choose to make a change in yourself.
Okay – we want to hear your horror stories. What’s been a time you dealt with an unprofessional real estate agent?
A real estate agent license is a person's key to a lucrative career as a salesperson.
But, some careers don’t require a license, like real estate investing. So, why do investors get a real estate license, if they don't need it?
Owning a real estate agent license comes with advantages—especially for investors. A license helps investors access resources that provide convenience and investing information.
You can maximize your returns and shrink your expenses with a license in a few ways. One way is by representing yourself in property transactions.
When you buy or sell a property, a real estate agent guides you through the transaction.
They handle the heavy lifting—paperwork, property marketing, and coordinating with services. Working with real estate agents is convenient. Investors can buy and sell a property and let a trained professional handle the heavy lifting.
Real estate agents get paid with a commission after the escrow ends, which is typically 6% of the selling price.
But, the agent doesn’t take the full 6%. They have to split it with the other agent and their respective brokerage. So, this 6% commission gets split four ways.
If you’re familiar with the transaction process, you can remove the costly middleman by doing the heavy lifting yourself. This is one reason why investors get their real estate agent license.
As salespeople, they can represent themselves during the property transaction. Doing so forgoes the help of an agent and lets the investor earn a sales commission.
The money you earn in commission helps reduce any transaction fees, despite splitting it with your brokerage. It can reduce your purchase costs or boosts your sales profits.
Investors buy and sell properties more often than the average homeowner. This causes extra fees. Instead of spending, investors can be earning if they represent themselves.
The money won’t go into another real estate agent’s pocket as a commission, because the investor is the acting agent. So, when they buy or sell a new property, they can put their commission towards their next big investment.
The big lure for investors is access to the MLS. The MLS is an acronym for Multiple Listing Service, and it’s the largest property listing database in the country.
Every real estate agent uses this service to discover properties for sale in their area.
This helps them collaborate with other brokers and agents to start the transaction. Real estate investors use this tool to feel the property listing’s pulse in a neighborhood.
They can find the listing price, square footage, and address through their portal because the database is continually updated.Investors can write purchase offers for the property they think is a good investment. If the purchase offer is accepted, they can use their license to represent themselves.
The MLS is an irreplaceable tool for investors.
It helps find properties and provides valuable data to whittle down the best investment.
Earning your real estate agent license is a lifestyle change. You need to keep your license status active to have access to its perks. So, you must commit to selling and listing the property with the brokerage you’re signed with.
Don’t underestimate the time commitment, because you will be taking on—at least—a part-time job.
Your career changes when you use a real estate license to fuel your investor lifestyle. You need to keep up with the fees and work to keep your license active. Becoming a licensed real estate agent doesn’t do squat if you’re an inactive agent, because you can’t represent yourself or access the MLS database.
To keep your status as a real estate agent, you need to work full-time or part-time with a brokerage.
This requires continual upkeep with brokerage connections and commission earnings. Those who discredit the work involved to keep a real estate agent license will get the boot.
Investors should earn a license if they enjoy selling and listing homes with a brokerage. If this sounds like unnecessary work that will stiffen your career, then you shouldn’t pursue it.
Don’t let that discourage you from earning your real estate agent license. There are plenty of perks in a salesperson agent career—including financial gain.
A real estate agent license could be the next best step because it could lead to an extra revenue source that compliments your portfolio. If you aren’t investing, but plan to in the future, becoming a real estate agent first is a smart step into the investment world.
Some prospective investors choose to earn a real estate agent license before they start investing.
If you want to start a career in real estate investing, a career as a salesperson can help you in your career. Real estate agents familiarize themselves with the industry, home buying process, and they network with people who can influence their careers.
Learning on the job is part of becoming a real estate agent. Agents learn from brokers and professionals with years of industry experience. So, they inherit knowledge that serves as the basis of their investment success.
As an agent, you can tuck away part of your commission per sale as investment money. This becomes a comfy cushion needed for when you’re ready to jump into an investment career.
A real estate agent career is a worthwhile stepping stone to becoming an investor. You can secure funds from your commission and learn while doing it. Then, when you’re ready, you can walk into an investment opportunity with the funds and knowledge to make it profitable.
A real estate agent license can only help an investor in their career. But, the amount of work to maintain an active license could be a deal breaker for most people. Weigh the perks of becoming a real estate agent and become familiar with what you want in your career. If selling and buying property excites you, then earn your real estate license.
Careers in real estate don’t always follow a traditional path, from different salaries to working hours, and having no fixed office. This doesn’t mean your resume should suffer though, and you should always keep it in great shape and frequently updated. Here are some suggestions for having an effective real estate agent resume.
Real estate brokers already know why you want a job, but it’s your job to convince them why they should hire you. By having a professional profile and avoiding a career objective, you’ll show them that it’s worth reading through your entire resume. A professional profile will have in the first line the most critical information: that you are licensed and experienced.
By putting this from the very start, you’re setting yourself apart and above beginners exploring the market, and you’ve also indicated the types of sales you have experience in. This means that you should also only be applying for sales positions that fit your interest and experience. After this line, add some information about what your strengths are, your skills, and notable achievements and awards.
Your resume should be using active verbs to show strength and determination and self-confidence. Using a passive voice will not draw in potential employers and they will overlook your resume for more self-assured options. Use verbs like advise, conduct, evaluate, close, negotiate, sell, generate, and more. These denote action and shows that you are a go-getter in the industry.
A real estate agent is at their core a salesperson, and what they’re good at is making deals. As a real estate agent, the expectation is that you will close deals and earn your company some money, and the best way you can showcase that on your resume is by providing actual numbers. This includes using quantitative information like “closed on average 20 transactions every year”, and it means you’re giving your potential employer an idea of your abilities.
You can also use numbers to show more than completed transactions but also how you maximize earnings for the firm. According to George MacLennan, a recruiter at Academized and Ox Essays, “this can include raw data showing by what percentage you increased average selling prices from the initial appraisal, for example. Quantitative data should also include all of the training, leadership and mentorship you were a part of, such as the frequency of training sessions you organized, or how many seminars your firm entrusted you to lead to train new agents.”
Even though you mentioned that you are licensed at the beginning of your professional profile, the additional skills section should indicate where you’re licensed and when you received it. You should also include here all notable clubs or organizations that you are a member of. This is also the place to indicate any relevant skills that you have, like computer applications for research, or marketing certifications. A lot of your time is spent communicating, marketing, and researching with your buyers and sellers, so these are critical things to indicate.
Additionally, you should have many skills and traits listed that real estate employers will look for, such as the ability to negotiate, interpersonal communication, math skills, knowledge of real estate laws, marketing techniques, customer service experience, flexibility, trustworthiness, resourcefulness, and good networking skills. You should also show that you’re actively involved in the real estate community so you can demonstrate your dedication to the industry.
Your resume should be brief, kept to one page if possible. You only need to list the last two or three positions as anything older is not relevant. Use bullet points to make the information more readable and concise. If you need some help with the drafting, consult these online tools:
It may be evident, but it’s worth mentioning that your name and contact information should be very visible so they remember your name. Time and again, resumes will have this information only in small font at the top, but you should choose a large, attractive font for this information at the top of the resume. Use a different color for your name, something subtle that will draw the eye to it, and prospective employers will be sure to remember it.
By following these tips, you’re sure to make your resume stand out from others in the real estate industry.
Content marketing for real estate involves using content published across a variety of platforms to build customer relationships, establish thought leadership, and grow your brand. This approach can be used in any industry, however, it is particularly well-suited to real estate. In fact, you probably use many of the elements of content marketing already. You likely use videos and photographs to get prospective customers interested in properties, for example. You may even have a newsletter you send out to your customers each month.
What you need now is a strategy that allows you to get the most out of your current efforts, and to identify new opportunities to use content to your advantage. After all, 90% of consumers use the internet when searching for a new home. Keep reading for some tips for developing a powerful content marketing strategy for your real estate business.
You have several social media platforms and apps to use in your digital marketing efforts. Each one of these serves a unique function. Don’t spread yourself too thin initially. Instead, learn what you can do with each platform, then participate accordingly. Here’s a quick overview:
Whatever you do, choose something and get going. 58% of marketers who have gotten active on social media have increased their rankings.
Use a variety of content types to appeal to different members of your audience. It will help you to connect with people who have different needs, and who are at different stages of the customer journey. Here are some of your options.
Blogging
This is your opportunity to share your knowledge and insights. Establish your thought leadership by educating your audience, and answering the questions you know they have. In fact, you should consider making your blog the center focus of your content marketing efforts. Just know that your writing must really be on point to gain subscribers, and earn engagement. Consider using a professional resource like TrustMyPaper for writing, editing, and proofreading support.
Video Tours
Use Facebook Live or other tools to take real estate customers on detailed tours of properties. You can also record video tours, then share them on various social media channels.
Photo Sets And Collages
Visual content will always serve you well. Post these on your website, and share them across your social media feeds.
Thought Leadership Articles
Build your reputation as a source of information and insights by writing articles for niche publications in the real estate industry.
White Papers
Don’t miss out on the opportunities that you can gain through long-form content. Share white papers with low funnel customers, or provide them as a helpful resource for educating potential clients.
Your success depends on your ability to create content that is relevant to your audience. Write about what matters to them to get the engagement you need. Start by finding trending topics by using tools like BuzzSumo and AllTop.
If you haven’t already, subscribe to industry relevant websites and publications. Follow real estate influencers on social, and use their posts as inspiration. Finally, take a closer look at your customer support tickets. Use these to learn the most common questions and concerns your target clients have.
Once you know the topics to cover, and where you will share your content, invest in an editorial calendar. This will help you to create an ongoing content plan.
There’s a wide variety of tools to help you create great content, share great visuals, and get the furthest reach possible. You don’t have to do this alone. Use these tools to your advantage. There are visual content tools that allow you to create amazing content with great production values. These include video editing tools, photo editors, and tools for creating infographics and other engaging content.
If you use video or plan to share high-quality photos, it may be time to invest in some new video and photography equipment. You can even seek out the services of a drone photographer to capture those cool aerial images everyone seems to be sharing of their properties.
Finally, there is a slew of free and reasonably priced tools that you can use to manage your presence on social media, promote your content, etc. Don’t forget about analytics tools. These help you to track your content marketing efforts, and see what is working for you. Check out this list of powerful content marketing tools for 2019.
You can use content marketing to generate leads, develop long term customer relationships, get the attention of real estate industry influencers, and establish yourself as a thought leader. Use the tips above to create a solid strategy that allows you to get the most out of your content marketing efforts.
California's dynamic real estate market offers many incredible opportunities, and with the right knowledge, anyone can unlock the door to a rewarding career as a real estate broker in the state.
Whether you're an aspiring entrepreneur, a seasoned agent looking to level up, or simply someone with a passion for properties, this step-by-step guide will teach you everything you need to know to obtain a real estate broker’s license in California.
If you’re looking to get licensed as a real estate broker in California, there are certain criteria that you have to meet and steps you have to take. They include:
To qualify for a real estate broker’s license in California, you are required to have a certain level of experience or education in real estate. The state requires all broker license applicants to have one of the following:
If you are a licensed full-time agent, you will be required to submit an Employment Verification form duly signed by a brokerage. If you’re claiming to have equivalent experience, then you have to submit an Equivalent Experience Verification form with a detailed description of your experience, as well as 2 signatures from people willing to vouch for you.
All applicants for a broker’s license in California must have successfully completed 8 statutory college-level courses. The only exception to this is if you’re a member of the California State Bar. These courses include:
Three courses from the following list of elective classes
Note that if you take both Real Estate Economics and Real Estate Accounting, then you will only need to select two courses from the electives list.
The courses above are to be taken at an institution of higher learning that’s accredited by the Western Association of Schools and Colleges or a private real estate school that’s accredited by the California Department of Real Estate (DRE). Each course should be a minimum of 45 hours long, and depending on the education provider, can either be three semester-units or four quarter-units.
After taking these courses, you must also sit for and pass a final exam conducted by your education provider. After this, you will be provided with your transcript or course completion certificate, which will be needed during your broker application.
After completing your courses, the next thing to do is apply for the state’s real estate broker’s exam. This can be done by filling out a Broker Examination Application, which should be submitted to the DRE, alongside supporting documentation and an exam fee of $95.
On your application form, you’ll be given the choice to either self-schedule or have the DRE schedule the exam for you. If you choose the latter, an Examination Schedule Notice will be sent to you, containing the date, time and location of your exam. If you choose to self-schedule, however, you’ll be notified about when you can. To schedule your exam, you’ll need to register for or log in to an eLicensing account.
You must pass the California real estate licensing broker exam within 2 years of applying for it. This exam is held every day of the week at testing facilities across the state, located in:
The exam consists of 200 multiple-choice questions, covering the following topics:
Each candidate will have a total of 5 hours to complete the exam. Once you are finished with the electronic test, your results will be displayed on the screen. To pass, you need to have answered 75% of the questions correctly. If you didn't pass the exam, don’t worry, you can retake it as many times as needed within the 2 years.
After passing your exam, you can then submit a Broker License Application to the DRE. This application should contain all supporting documents that show that you meet the education and experience requirements of the state. You will need to pay a license fee of $300 either by credit card, check, cashier’s check, or money order.
The paperwork you need to submit during this application depends on your experience qualification but generally includes:
The above documents should be submitted to:
Department of Real Estate Examination Section P.O. Box 137001 Sacramento, CA 95813-7001.
Note you are required to complete a fingerprint-based background check regardless if you have already completed one to become a salesperson agent. To do this, fill out a Live Scan Service Request Form and take it to an approved live scan service location in the state. A fingerprinting fee of $49 will be required. You may also have to pay any additional service charges to the live scan provider.
After submitting your fingerprints, you should also submit a copy of the Live Scan Service Request Form to the DRE.
Here are answers to some frequently asked questions you may have regarding becoming a licensed broker in California:
The truth is, although being a broker comes with many exciting career opportunities, it also comes with lots of responsibilities that could be overwhelming. It might therefore help to consider the pros and cons of becoming a broker, as well as your unique characteristics, such as your industry knowledge, entrepreneurial spirit, leadership skills, and your risk appetite.
If the pros outweigh the cons for you, and if you possess the basic characteristics needed by a broker, you should consider becoming a real estate broker.
The entire process of getting a broker’s license in California will typically take anything between 3 - 6 months. The activities that account for this timeframe include completing the pre-licensing courses, passing the exam, and submitting an application to the DRE for review. You should however note that this timeframe may vary depending on the DRE, as well as your personal circumstances.
To quicken this process, you can try to finish your pre-licensing education course in the shortest time allowed. You should also get all the necessary application documents ready for submission to the DRE as quickly as possible.
Yes, you can get a real estate broker’s license without 2-year salesperson experience in California. Although this requirement is a major one, the DRE has provided other alternatives for people who do not have 2 years of experience as a licensed salesperson. They include:
If you have any of the above-mentioned requirements, then you can apply for a real estate broker’s license.
The amount a California real estate broker’s license will cost you depends on a few factors. These include your choice of a pre-licensing education provider or how many times it takes to pass the broker’s real estate exam. That being said, here are some fees you should expect to pay during the process of getting a broker’s license (Note: that prices are only attached to fees with fixed prices):
Getting a real estate broker’s license is a considerably difficult task. Not only does it require a lot of background experience, but it also requires hundreds of hours to learn real estate concepts in order to qualify. Perhaps the most difficult part of the process is passing the broker’s licensing examination.
This examination requires a lot of planning and studying if you have any hopes of passing it. Ideally, the more time you spend studying and planning for the exam, the less difficult it should be.
The California real estate broker’s examination consists of 200 questions with a total of 5 hours to complete. These questions are based on various real estate topics, including Contracts, Financing, Laws of Agency, Practice of Real Estate and Mandated Disclosures, Property Ownership and Land Use Controls and Regulations, Transfer of Property, and Valuation and Market Analysis.
This exam requires a minimum score of 75% to pass and has a passing rate of 50%. This implies that the exam is quite difficult, and requires extra effort to pass. We recommend a real estate broker’s
No, you cannot transfer a broker’s license from another state to California. Every license applicant must meet experience and education requirements, as well as pass the state’s broker’s examination before qualifying for a license in California.
If you’re a new broker, then it might be better for you to stay at your current brokerage for a while before going off to start a new one. This is so that you can get accustomed to the responsibilities of a broker and gather all the necessary knowledge and financial resources needed to successfully establish and run a new brokerage.
However, if you intend to get your broker’s license to start your own brokerage, then you’ll have wind at your back to launch into an exciting business endeavor.
In California, you are required to renew your broker’s license every 4 years before the expiration date listed on the license. Note that to qualify for a license renewal for the first time, you need to complete 45 hours of post-licensing education in California.
The ideal real estate school is one that meets your learning needs at the right price point. Therefore, when choosing a real estate school, here are some factors to consider:
CA Realty Training is one of the best real estate schools to enroll in while completing your broker’s pre-licensing education. We offer a high-quality and personal approach to assisting each of our students throughout the learning process.
You can also purchase our exam prep package to get a plethora of valuable resources to help you pass the broker’s exam on your first try. Included at an affordable price are:
Real estate brokers are professionals who assist their clients through the buying, selling and transferring of real estate property. Brokers perform a wide range of duties, a few of which include:
In the US, the average annual salary of real estate brokers is $68,256 per year. In California, this will be skewed on the higher end as the property value is significantly higher than the rest of the country. A broker’s salary can differ based on their specialty, the size of their brokerage and the state within which they operate.
The article above has discussed in great detail the four major steps you need to take to get your real estate broker’s license in California. With dedication, hard work, and the right knowledge at your disposal, you can embark on this journey to growing a fulfilling and prosperous career in the real estate industry.
When looking for real estate, most buyers tend to first look online rather than anywhere else. This means that the better your listing looks, the more chances you have for them to get interested. One of the most important parts of your real estate listing is the description, which is actually not that difficult to write!
Here are eight steps that will help you make your real estate listing creative and appealing.
Your number one priority must always be accuracy. You should remember to describe everything accurately and include only the details that are true for your real estate. If you don't, you might look like a liar and that would only show you in a bad light to your potential buyers.
Don't set unrealistic expectations for the buyer. If your home has many flaws, try to focus on its benefits sides. In fact, you should try to turn your home's flaws into positives. But, of course, don't lie about anything as it won't work well for you in the end.
While writing your listing, it is important to choose the right words for your sentences. For instance, too many adjectives will distract your readers from important information. Once again, don't use words that don't reflect reality. Keep in mind that some words and phrases mean other things (e.g. "cozy" is associated with "small space").
To help you in writing your real estate listing, here are some tools and services:
WOWgrade: This is another online writing service that will write your listing for you.
Another important linguistic feature is a number of words that can be dangerous for your real estate listing. You mustn't use words and phrases that signal as red flags.
At the same time, some words may affect your final selling price. For example, "TLC and "cosmetic" are both words that will make your real estate lose value.
This is quite simple, isn't it? Instead of using dangerous words, use the ones that add value and are the opposite of red flags. Some words such as "luxurious" and "landscaped" can help your listing.
In addition to the previous tools and service to help you, here are a few others: Google Docs (an online equivalent of Microsoft Office Word that is great for teams), Studicus (an online writing service that can write your listing), Thesaurus (an online thesaurus to aid you in writing), and Best Essay Education (another online writing service).
In order to stand out of the crowd, you have to show that your home is different from others. Mention features that give your home a voice. Ask yourself whether your home has special characteristics that others don't. Maybe it's a fireplace that could be used in winters. Maybe there is a balcony that could be used in summers. These are just some examples, but special characteristics can be anything as small as a royal-size bed and as big as a medieval-themed design of your home.
It's funny how bad sellers are with punctuation when it comes to writing a proper real estate listing for their home. Just look at most of the listings and you will notice a tendency: a lot of them have chaotic punctuation marks.
First of all, use proper punctuation. Second of all, don't put an exclamation mark at the end of each sentence! If you emphasize every single piece of information, none of it will be important anymore.
This may come as a surprise to some sellers, but including the basic information about your real estate is pointless. That is if it appears elsewhere in your listing.
Usually, real estate websites provide you with a form to fill out. This form has blanks for different details and a separate one for the main body text. The details you enter in these blanks don't need to be repeated in the main body text. Rather than writing about the basic information, focus on the juicy details.
Last but not least, don't forget to include high-quality photos. Your listing can be beautifully written and you may be the best writer in the world, but nothing can beat good pictures. After all, an image speaks a thousand words.
Try to take photos of the highest quality you can. If you don't have a good camera, borrow one from a friend or hire a professional photographer. A good idea would be to take pictures from different angles in order to show the size of the apartment properly. If you only make pictures from one side, it may give the wrong impression to potential buyers.
Ideally, you would want to take photos in daylight so that everything is properly lit, but if you notice that your images got the wrong colors, you can edit them with the help of one of these programs:
All in all, writing a creative real estate listing is not that difficult once you follow several basic rules. Carefully review this article before sitting down to write your listing and then you will be all set to start.
One of the first things people do every morning while drinking their coffee is to check their emails. Companies send emails to their newsletter subscribers for all sorts of reasons. From advertising new products to offering exclusive deals or simply sharing personalized content, email marketing helps businesses create a closer relationship with their customers.
When it comes to the real estate field, keeping in contact with both buyers and sellers is one of the top priorities for agents and email marketing can help them achieve that with minimum resources. A survey reveals that most real estate businesses have already picked up on that, with 63% of surveyed agents already engaging in email marketing and 22% of them planning to do so in the near future. The other 15% who don’t plan on running an email campaign have not yet picked up on the tremendous benefits it can have on their business. So, here's why a real estate email marketing strategy will transform your business.
For clients to start trusting a business, they need to feel like they matter. Nobody likes to feel they are just part of a long list of numbers that are just added up at the end of the year.
Real estate email marketing can help you achieve just that, by targeting potential clients and sending them customized content that appeals to their needs.
Not all people are interested in the same things. Some of your clients may look for a great family house, while others want a studio apartment that is budget-friendly, so if you just send the same content to everyone, you may not get the results you’re expecting.
If you tailor the content to appeal to the clients’ needs, you will get a much higher chance to develop a closer relationship with them. You can customize the content based on age, status, type of property they are interested in or even location.
You can also include a direct link to your website, or a contact button. Clients can send a request to be contacted and you can get back to them.
Make sure that all your content is well written and edited before pressing the send button. You can use platforms such as TopWritersReview to find the editing or writing services that best suit your style and will appeal the most to your clients.
To see if a marketing campaign is successful, you need access to a variety of data and reports. After you’ve run a real estate email marketing campaign, you can check to see how many people were actually interested in the campaign.
You get access to information such as how many of the clients read the email, how many of them actually clicked on the featured links and how many went on to make a purchase or request to be contacted for more information.
Such insight is extremely valuable for future campaigns. If, for example, only 30% of the audience actually opened the email, maybe you need to work on the subject line, to make it sound more engaging.
On the other hand, if they were not interested in making a purchase, it may be because the audience was not properly targeted and the content may not interest them.
If you pay attention to the way clients engage with your emails, you will be able to better your future campaigns.
You can also encourage clients to send their feedback, by including a link to a section of your website, where they can briefly complete a survey.
The ultimate goal of any marketing campaign is to increase sales. Given the fact that real estate email marketing is highly inexpensive, the return on investment will be much higher than for any other marketing strategy out there.
To put it simply, all you need to run an email campaign is a list of email addresses, you can get from your customers.
By simply requesting their email address when you get their contact information, you ensure that you can get your newsletter in their inbox at any time.
This way, you can keep them up to date with new additions, exclusive deals, or luxury properties that are not yet on the market.
When it comes to email campaigns, really, the sky is the limit.
For example, you can implement a campaign where clients who agree to receive your newsletters will be the first to know about new properties that may interest them. This way, they will feel like they get something in return for subscribing to your newsletter.
A traditional marketing campaign can get pretty expensive. The costs for designing and printing billboards, flyers or brochures can be quite high, not to mention what you have to go through to mail these brochures to your clients.
Some realtors also choose to go old school and mail their own magazine-like brochures to customers. While this was an interesting idea a few decades ago, it kind of lost its purpose today.
The content found in these magazines can easily be featured online, in a blog section on your website. Then, you can go ahead and send customers emails regarding new content and invite them to check it out on your website.
Not only is it cost-effective, but it will also increase the number of visitors to your website.
Emails can reach recipients in a matter of seconds, which means the information will get to your audience much faster than using any other method.
In the time spent mailing promotional materials to your clients, you can compose, send and track the results of an entire real estate email marketing campaign.
Mail does get lost, whereas emails are much harder to get misplaced and not reach their recipients, not to mention it is much faster to read.
People check their emails multiple times a day, so you have a much higher chance for someone to receive and read the email on the same day.
If done correctly, real estate email marketing can be much more effective than other traditional marketing strategies.
Email marketing can help you cut down on costs and time spent reaching your clients, as well as provide a much higher ROI and give you insight into the way clients react to the content they receive.
Even more, email marketing can help you develop a stronger relationship with your clients, by providing them with customized content that appeals to their needs.
Even if you seem to know so little about real estate agent branding and its building, it’s because you haven’t been paying attention to it. Today, everyone working with people cares about creating a brand. Creating a real estate agent brand is the best investment you can make in your future career.
Branding matters for many professions from the most obvious such as singers or book authors to doctors, nannies, tour guides, and real estate agents. For the latter, branding is no longer an option, it's a must.
Why is that so?
Because many people are now searching for information before actually paying for products and services. As a real estate agent, you have your reputation that is your personal brand. Failure to make it clear and available to the public means having a smaller customer base, poor word of mouth and a lower income.
However, real estate agent branding is not only about that. It has at least 6 other reasons why it matters.
The business has become more human now. People are interested in finding out who is behind the company and who is actually doing things. Your values and principles matter to people looking for an agent to help them sell their homes or find the best ones for them and their families.
Thus, it is important to tell people who you are, whom you want to help and why, and what you have to offer. Try to make sure people see what makes you different from others.
Real estate agent branding helps you define your value as a professional. People who will see a visual representation of it will become more inclined to trust and be loyal to you. Such a relationship will help you act independently, growing your personal sales and creating new sales leads.
Word-of-mouth marketing also changes if you have your personal brand. All reviews and recommendations that you get will become visible to others. People will see your success, analyze your service and expertise, and spread the word about you rather than the company you work for.
With your real estate agent brand, you can develop your own voice. You can talk to your potential customers, not through the lens of a big and dehumanized business structure, but as if you are already partners.
A powerful way to show your voice is through a digital presence such as social media or a website. Both allow you to create your own content share your professional or personal life. By doing so, people can get to know who you are. This let's them relate to you, which is a fundamental of building a connection with people. When people are drawn to you because they have a personal connection, they are more likely to do business with you.
It is important to make people comfortable with choosing you as a representative of their property interests. Your personality should be able to speak from the webpage you create because you are your own business.
Building a real estate agent brand can help you solve several problems along the way. Apart from following your own marketing strategy, you get a chance to create a pricing scheme that would best represent your financial goals.
By doing this, your branding will gain the features of a business venture where all terms and conditions for cooperation are crystal clear. Needless to say, it will give extra credit to your business, but it will also showcase you as a serious and reliable partner.
Real estate agent branding helps to demonstrate your webpage visitors and potential customers what you intend to provide them with. In other words, you can list the names of services you are willing to help them with. Moreover, you can define your niche, professional interests and level of expertise so that those interested in hiring you could see what you offer.
It really speeds up the negotiation process and helps in reaching a mutual understanding. When it comes to real estate, people tend to be extra cautious. Maximizing your sincerity and clarity through branding can help you win more clients.
It is often hard to find clients to ensure your work is consistent. You can lead several clients at once or eventually end up with no client for a week or two. This is the main flaw of being a real estate agent, especially a newbie.
Building your own brand can help you minimize or resolve this problem completely. All you have to do is to advertise a visual representation of your brand real estate to the right audience. Once you do, no doubt you will have a consistent stream of new projects.
Real estate agent banding changes the way you are perceived as an agent. It gives you more credibility as a person and as a professional. People always need to rely on something to make sure that they will receive the best service possible.
As a real estate agent, you must have experienced the problem of trust, pricing, etc. Until you have something as clear as a brand to represent you, potential customers will keep looking for other options. A visual representation that speaks your values and showcases your previous success is the best way to generate new leads.
Real estate commissions are the way that most real estate agents get paid. This means that an agent will be paid an amount of money relative to the price of the home sold.
For some people, this is extremely exciting. Alarms might be going off in their head because they know that there is no limit to how much money they can earn. Nobody dictates how much money a real estate agent can earn in a year.
For others, it might be terrifying knowing that they won't have a yearly salary. Although, there are some brokerages that will pay you a yearly salary.
In this article, I will explain to you how the real estate commission works and whether or not it's actually a lucrative deal.
Real estate agents are paid on commission. A commission is a small percentage of the earnings made from selling a home. The average income real estate agents in California is $95,624.
A real estate agent’s yearly earnings will depend on several factors, including the overall number of sales they complete, commissions on those sales, and the percentage of that commission that they pay their broker.
The commission earned is determined by the following factors:
As example, the buyer's agent could have agreed with their client on a 2% commission rate on a house. That means, the buyer's agent will receive 2% of what the home sold for. If the home sold for $700,000, the buyer will pay their agent $14,000.
Use our real estate agent commission calculator below to see how much money you could make.
In 2024, there were changes to how commissions are regulated. The agent's commission is financed by their client. This means the buyer's agent is paid by the buyer and the listing agent is paid by the owner of the property.
However, when the party's agree to it, the listing agent can finance the buyer's agent. This is more similar to how commission have historically worked.
What this means is that each party's agent must negotiate with their client on the commission rate. There is no set or "standardized" commission rate.
There is no cap on how much a real estate agent can make. So long as the agent represents clients through the deal, they will earn a commission. The only limits is how much the agent is willing (or capable of) to sell in year.
This is what attracts a lot of people to the industry. They are able to have complete control over their own working schedule and their yearly earnings is determined by how much they sold. Total work freedom.
The real estate agent's commission will get split between the agent and their brokerage. This is referred to as the commission split or "split." Typically, the split for a new agent with no experience will be 60/40, favoring the new agent. However, for more experienced agents who bring in a lot of money, they could be looking at an 85/15 or even 90/10.
Let's calculate how much a real estate agent will get paid on a $1M deal where they agreed to 3% commission:
So, the agent will walk away with $12,000 on their deal. Most escrows last 30 days, which means that agent made $12,000 in one month.
Sometimes a real estate agent can get paid by the other agent. This is similar to how commission were traditionally earned. A small percentage of the listing price would be given to the listing agent, who would then split it with the buyer's agent.
In these situations, the listing agent would negotiate the commission rate with the buyer agent. So, when agents find themselves in deals where the other agent is paying them, make sure you are being fairly compensated.
The typical commission split between a new agent and broker is 60/40 in the agent’s favor. This ratio could increase in the agent's favor with experience over time. But a new agent with little to no experience could expect to receive 60% of commissions earned.
Of course, this isn't a hard set rule. You can be a new agent with a higher split, so long as you are able to make a compelling case for yourself.
An agent can negotiate a higher commission split with a brokerage the same way they would ask for a raise in a more traditional job. Performance, experience, productivity, and even better offers from other firms are solid arguments for negotiating a higher commission split.
California is unique because the price of land is higher than most of the country. This will mean that agents are expected to earn more money than they can in other states. A fluctuating commission rate will also be a factor in the average real estate agent commission in California. But, let's just assume the agent earns 3%.
The average salary of a California real estate agent is around $99,575. However, there is a wide gap in the salary range, with the lowest earners making $24,970 and the highest earners topping out at $123,700 per year.
California, and at least 39 other states, allows agents to share their commission with buyers and sellers. It may act as an incentive for the client to work with the agent. Another motivation may include lowering your commission rate. Since there are no set commission rates, agents can negotiate their fees.
How this works is as follows:
The money moves through a few parties before coming back to the client.
This is advised against, though. Ultimately, the agent will be lowering the amount they get paid and therefore this deal won't be a priority for them compared to other, most lucrative deals. Therefore, agents should always stick to their gut and use this in specific situations.
While being a real estate agent does require hard work, the payoffs can be phenomenal. Since agents work on commission, there is no limit to how much they can make in the industry. Agents set their own hours, work at their own pace, and ultimately control their own commission rates.
An agent gains will experience and be more successful over time, thus allowing them to negotiate lower brokerage fees and higher commission rates. So, their potential for a higher salary increases over time.
For agents working in California real estate, the sky truly is the limit.
Looking to start a career in real estate? This guide will walk you through everything you need to know about real estate school—from costs to course length.
Whether you’re curious about what you’ll learn or want to know if online real estate schools are a good option, we’ve got you covered.
Real estate school is an educational program designed to teach students the fundamental knowledge to pass the real estate exam.
These programs cover a range of topics, including real estate principles, property law, contracts, and ethics.
Most real estate schools offer flexible learning options, such as in-person classes or online. Online real estate schools allow students to complete the required coursework at their own pace.
After finishing a real estate school program, students are eligible to take the real estate state exam. By passing the exam, the state will issue the student their real estate license.
While it does share similarities with trade schools—like focusing on preparing students for a specific profession—real estate school is not traditionally classified as a trade school.
Trade schools often focus on hands-on skills for fields like plumbing, electrical work, or cosmetology. Real estate school focuses on theoretical knowledge, legal requirements, and market analysis.
Do you have to go to real estate school? Yes—completing a state-approved real estate school program is mandatory in all states.
You can often choose between various real estate schools and formats. This makes it easier to find one that suits your learning style and schedule.
The cost of real estate school can vary widely depending on your location, the type of program you choose, and whether you opt for in-person or online classes.
On average, you can expect to pay anywhere from $100 to $500 for a pre-licensing course. This price usually includes access to textbooks, study materials, and exam prep resources.
How much real estate school costs depends on the program and school choice.
How much is real estate school online? Online real estate schools tend to be more affordable. Prices range from $100 to $250, depending on the state requirements and the level of support provided by the program.
Online real estate schools have flexibility in terms of scheduling and learning pace, making them a popular choice for busy professionals.
The cost for California real estate schools is generally between $100 and $500. CA Realty Training is the most trusted real estate school in California.
Our online courses start at $154.99 and include our popular exam prep package. You can get our video add-ons, too. These are videos of our trainers teaching our curriculum in front of a live classroom. If you prefer to learn from a real person, we offer in-person and live webinar classes.
The length of time it takes to complete real estate school depends on the state's specific requirements. Generally, most states require anywhere from 60 to 150 hours of coursework, which can take anywhere from a few weeks to a few months to complete.
Typically, the length of real estate schools is around 3 months. Some programs allow you to take upwards to one year to complete the program.
In California, the state requires a minimum of 135 hours of pre-licensing coursework with the requirement of at least 54 days. CA Realty Training’s program allows you to complete your online real estate course requirement in the fastest amount of time in California.
The difficulty level of real estate school depends on your prior knowledge and how comfortable you are with studying new topics.
The coursework covers subjects like real estate law, contracts, property management, and ethics, which may be unfamiliar to some.
With a dedicated study plan and consistent effort, most people find that they can keep up with the material. It’s important to approach the classes seriously, as the goal is to prepare you for the exam..
So, how hard is real estate school? While it can be challenging, it’s definitely doable. Many schools offer resources like exam prep tools and tutoring to help you along the way.
The following are questions we frequently receive about our real estate school.
Yes, most states require you to complete a real estate school program before you can take the licensing exam. The coursework provides the necessary foundation in real estate principles, laws, and ethics. So, do you have to go to real estate school? Absolutely.
Real estate school teaches you topics like property law, real estate contracts, finance, and ethics to prepare you for a career in real estate. You’ll learn terminology, financing, and local and state regulations. This knowledge equips you with the skills needed to pass the licensing exam.
Typically, you do not learn hands-on skills. That’s where CA Realty Training stands out. Our live training component provides students with the in-the-field knowledge that most schools do not provide.
Having a high school diploma or an equivalent (such as a GED) is a basic requirement to obtain a real estate license in most states. So, do you need a high school diploma for real estate license eligibility? Yes, this is typically the minimum educational requirement needed before you can enroll in a real estate school.
However, a GED or high school diploma is not required in California. You just have to be at least 18 years old to enroll.
Once you’ve graduated, you can enroll in a state-approved real estate school to begin your coursework. CA Realty Training is the best real estate school option in California. Our parent, US Realty Training has hand-picked affiliates throughout the country to aid people in getting their real estate school in any state.
The best high school classes to take are economics, business, and communication classes. The same goes for college students. Consider joining extracurricular activities like debate or business clubs to further develop skills that will be useful in a real estate career.
These subjects help build a strong foundation in understanding market trends, managing finances, and improving your interpersonal skills—all of which are crucial in real estate.
Can you do real estate school online? Yes, many accredited real estate schools offer online courses that cover the same curriculum as in-person classes. Online real estate school provides flexibility, allowing you to study at your own pace.
CA Realty Training provides both online and in-person courses. You can join our program and begin your journey today.
There may be opportunities for the military to pay for your real estate school. This is highly dependent on the resources available to you.
CA Realty Training provides free video add-ons for military members. A deal that you can’t get anywhere else.
There’s one easy way to know if a real estate school is accredited. Check if the school is approved by your state’s real estate commission or licensing authority. They will list accredited programs on their official website.
You can also look for endorsements from reputable organizations like the Association of Real Estate License Law Officials (ARELLO). If in doubt, contact the school directly.
CA Realty Training is ARELLO endorsed and approved by the DRE as an accredited California real estate school.
What are the best schools for real estate? The best real estate schools offer comprehensive courses, strong student support, and high exam pass rates. CA Realty Training fits the bill. We’re the #1 real estate school in California. US Realty Training has hand-picked affiliate programs for every state in the US. For our recommendations, visit us over at US Realty Training.
Choosing the right real estate school is an important first step toward a successful career in real estate.
From understanding how much real estate school costs to knowing how long it takes to complete, this article has covered everything you need to know about real estate education.
With the right school and dedication, you’ll be well on your way to becoming a licensed real estate professional.
Real estate lead generating websites are powerful resources for attracting more potential clients to your services.
It all comes down to leads. Success in real estate hinges on how many leads you can get and convert into sales.
Many people ask, “What’s the best way to get leads?” There are various ways to generate leads—networking, tapping into your sphere of influence, and buying them.
One effective method to buy leads is through lead generating websites.
In this article, we will discuss some of the top real estate lead generating websites and how they work. Let’s dive into Real Geeks, Ylopo, Zillow Premier Agent, SmartZip, and Market Leader to explore how each platform can support your real estate business.
Real Geeks is a popular lead generation platform for real estate agents.
Real Geeks uses an all-in-one system that includes lead generation, website management, and CRM (Customer Relationship Management) tools. The platform helps agents create IDX websites, run targeted Facebook and Google Ads, and capture leads through customized landing pages. Real Geeks also provides tools for lead nurturing, making it easier to convert prospects into clients.
Real Geeks’ pricing starts at around $299 per month, and this includes tools for lead generation and follow-up. With its comprehensive features, it is an excellent choice for agents who want an all-in-one lead generation solution.
Ylopo is a digital marketing and lead generation platform specifically designed for real estate agents.
Ylopo leverages digital marketing tools, such as Facebook Ads, Google Ads, and retargeting, to attract buyer and seller leads. The platform also features dynamic remarketing campaigns that help you stay top-of-mind with potential clients. Ylopo integrates with multiple CRMs, providing an efficient way to nurture leads over time.
Ylopo also includes “Ylopo Stars”—a lead nurturing system that uses AI to monitor and evaluate lead behavior. This helps agents determine the best time to reach out and follow up with prospects. Ylopo's pricing varies depending on the package you choose.
Zillow Premier Agent is one of the most well-known lead generation options for real estate agents.
Zillow Premier Agent allows agents to buy leads and boost their visibility on Zillow's platform. Agents become "Premier Agents," and their contact information appears next to listings. This helps agents attract leads from buyers and sellers who are actively searching for properties on Zillow.
The cost of Zillow Premier Agent varies depending on the zip code and the number of impressions you purchase. Pricing can range anywhere from $0.02 to $0.30 per impression, depending on the market.
SmartZip is a lead generation platform that uses predictive analytics to target likely sellers.
SmartZip focuses on predictive marketing and seller targeting. The platform analyzes data to determine which homeowners are most likely to sell soon, allowing agents to target those leads with marketing campaigns. It also offers a variety of direct marketing tools, such as automated email campaigns, to help agents reach potential sellers effectively.
By targeting likely sellers, SmartZip helps agents find high-quality leads and focus their marketing efforts on the right audience. The pricing for SmartZip is tailored based on the level of services selected and the specific market area.
Market Leader offers an integrated system for generating leads and managing client relationships.
Market Leader provides agents with buyer and seller leads, along with a customizable IDX website and a powerful CRM to manage leads effectively. The platform allows agents to purchase exclusive leads in specific geographic areas, ensuring there is less competition for those leads.
The CRM offered by Market Leader helps agents track lead activity, automate follow-up, and organize contact information. The cost of using Market Leader varies depending on the lead volume and market area.
Real estate lead generating websites can be used at any stage of an agent’s career.
Starting early with lead generation websites helps real estate agents build momentum over time. New agents should take advantage of these platforms to establish their presence and grow their client base. By combining lead generating websites with other prospecting strategies, agents can lay the foundation for a successful career.
Spending time generating leads is the best way to grow your business. It’s also one of the hardest things to do. Lead generating websites are valuable tools that make this process easier, providing agents with passive opportunities to attract clients and increase conversion rates.
Lead generation is the lifeline of any real estate agent’s career. By using as many lead generating websites and tools as possible, agents can make their business more efficient and productive.
While traditional methods like door knocking and cold calling are effective, they can only yield so many leads. Lead generating websites help passively attract clients and provide the additional support needed to build a successful career.
What is a Virtual Home Tour, and how is it different from an in-person property tour? A Virtual Home Tour is an online experience that can be accessed from a computer, laptop, tablet, or mobile device.
Prospective buyers can view all the features of a property without needing to set up an appointment—they can do it whenever, wherever, and with whomever they want.
In this article, we'll explore how Virtual Home Tours can benefit real estate agents, the best platforms to use, and the reasons why this technology is a must-have in today's market.
Virtual Home Tours can save real estate agents a significant amount of time and effort.
Imagine you are an agent trying to show 10 potential properties to a client. Instead of filling up your car with gas, picking up the client, driving all over town, dealing with parking, and visiting each of the 10 properties, you could send your client the links to the Virtual Home Tours first.
This allows clients to easily view all the properties and narrow down their options to the top 2 or 3 they are truly interested in seeing in person. Virtual Home Tours can reduce the number of wasted viewings by up to 40%, saving agents a massive amount of time and energy.
If you are the listing agent, there are many tools available to help you create a Virtual Home Tour for your property. From professional services to easy-to-use apps, here are some of the top Virtual Home Tour platforms to consider.
Matterport is one of the most well-known Virtual Home Tour companies for real estate agents. Using 3D photography, Matterport creates a digital version of the property that allows viewers to "walk" through each room.
The resulting immersive experience can be published on popular home search sites and your agent-branded website. Agents can either use a 360 camera to create the Virtual Tour themselves or hire Matterport to handle everything. Pricing can range from $0 to $300+, depending on the features needed.
RealtyTours offers real estate agents a professional solution for creating Virtual Home Tours. This platform provides high-quality visuals, easy sharing options, and the ability to brand the tours. RealtyTours makes it simple to create engaging content that attracts potential buyers.
Invision Studio is a virtual tour platform that offers advanced photography and video services. It provides agents with stunning 360° virtual tours, which can be highly effective in attracting buyers. Invision Studio's services are ideal for those looking to create high-quality, immersive experiences that stand out.
LA360VR specializes in creating Virtual Home Tours for luxury listings and high-end properties. With professional 360° videos and virtual reality capabilities, LA360VR helps showcase properties in an immersive way that attracts affluent buyers looking for their dream homes.
Virtuance is known for its high-quality photography and Virtual Home Tours that help listings stand out. The platform combines stunning images with easy-to-navigate virtual tours, providing an engaging way for buyers to view properties online. Virtuance offers agents a way to create polished and professional virtual content without the need for specialized equipment.
Vizit.co is another platform that offers Virtual Home Tour solutions, allowing agents to create visually appealing 3D tours. This platform also integrates with other marketing tools, making it easy to share and promote your listings across various channels.
Real5D allows real estate agents to create interactive virtual tours that are both engaging and easy to navigate. With Real5D, prospective buyers can explore properties in detail, making it a great tool for providing an immersive experience and helping clients visualize their future homes.
Virtual Home Tours are here to stay, and there are three important reasons why they are a must-have tool for real estate agents.
More people are using the internet to search for homes than ever before. Having a strong online presence is essential to ensure that potential buyers can find you.
Google reported a 253% increase in real estate-related searches between 2013 and 2017, and in 2019, 32% of buyers found their home online.
By posting Virtual Home Tours online, you provide an easy way for potential buyers to engage with your listings.
Listings with Virtual Home Tours receive 40% more views than those without. The simple addition of a Virtual Tour can make your listing stand out among the many available properties, increasing exposure and interest from prospective buyers.
Potential clients are more likely to engage with an agent who appears tech-savvy and uses the latest technology. Using Virtual Home Tours helps position you as an agent who is current and knowledgeable, gaining the confidence of buyers and potentially leading to more clients.
With the trend of online home searches on the rise, Virtual Home Tours are here to stay. They offer convenience, save time, and make the home buying process easier for both buyers and agents.
Virtual Home Tours increase engagement, boost listing reach, and help you generate more leads, ultimately leading to increased revenue.
If you are looking to grow your real estate business, investing in Virtual Home Tours is a smart move that will set you apart from the competition.
What is a short sale? In simple terms, a short sale is when the borrower or homeowner sells a property for less than what they owe on it. They’re “short” on the amount to be repaid to the bank. You may have heard the term but passed over it because you didn’t know much about it.
There’s plenty to learn about a short sale because of it’s legal and economic influence on the real estate industry. So, let’s first discuss the factors that may lead to a short sale.
When we fall into a recession, it causes an overall slowdown in economic growth and job growth. Many people can lose their jobs and find it difficult to make their mortgage payments.
Even a two-income household may struggle to make payments if one person is no longer employed. This would now become a financial hardship.
We saw evidence of these factors in 2006 when the residential housing boom came to an end, and the subprime mortgage crisis was in effect. Many found themselves victims of predatory lending and in need to sell their homes for less than what they were worth.
People who can’t keep up with their mortgage payments may decide to sell their home. The problem is, their home may not have appreciated and is now worth less than what they owe the bank.
So, if the homeowner paid–let’s say–$1,000,000 and their home is now worth $600,000, that’s not enough to settle the remaining $400,000 they would owe the bank. This is the issue that homeowners run into when short sales become the only viable option.
The homeowner no longer has to pay the remaining $400,000 on their loan. But, the collateral was their home. This is an unfortunate way to forgive the loan debt and could be the only effective way to settle the debt.
But, what would happen if the homeowners didn’t settle for less and instead chose foreclosure? That becomes a different story with different consequences.
People have the option of letting the home go into foreclosure, but why let it get that far? The foreclosure process has extreme ramifications on your credit, it could have tax implications, and foreclosure may make finding a new home harder since most banks will consider you a higher lending risk.
If at all possible, it’s best to avoid foreclosure because of the long term negative effects it has on your personal record.
Let’s play out the scenario with all the factors in place. So, let’s say the economy changes, you unfortunately lose your job, and now you can’t make your payments. Your property is worth less than what you owe and the bank has agreed to a short sale. Remember, that’s the key. The bank has to approve a short sale.
The short sale process isn’t simple but it’s very beneficial to the borrower. If the bank approves a short sale, they forgive the difference owed to them on the property. In some instances, the amount can be upwards of a million dollars. So you get to sell the house for what it’s worth and the difference of what you owe is gone.
It’s important to know ahead of time that the short sale process can take months or maybe years from start to finish, so have patience. This will not be the usual timeline of a traditional listing where it takes about 30 to 45 days to sell.
You move forward in the process. Now, what happens? The bank will require you to fill out and submit a number of documents and may request other information as well. It may be challenging on all sides but the real estate agent is there to facilitate all this between the client and the bank.
Now you have to find a buyer that is willing to purchase a short sale home. Most buyers are not prepared for the additional paperwork, meeting the qualifications, or waiting the additional time to acquire a short sale home. Most find the process too challenging or frustrating and won’t even consider it.
The time frames for a short sale will differ from a traditional sale. Once you have an accepted offer, it will go to the lender/seller to accept and approve. The average timeline is about 60 to 90 days. That means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.
In a perfect world, the economy is stable, properties will always appreciate, and, when it’s time to sell, you get over asking price. But, we all know that’s not reality and complications in life will arise. In the real world, things happen, people lose their jobs, and sometimes you just need a second chance.
Thankfully, in the real estate world, the short sale is the second chance. You may lose your home but you don’t end up in debt.
By the way, if you're studying for the real estate exam, we have an exam prep and crash course to help you. Studying for the exam is easy and we can make it easy for you.
Click the button below to find out how.
Steering in real estate is one of the ethical topics that pop up during a real estate agent’s career. Whether it’s understanding the topic to pass the state exam or identifying it being practiced in the world, knowing what steering is will help a better, more ethical conscious real estate agent.
So, let’s explore what steering is and how it affects the industry.
In the real estate world, “steering” is when an agent or broker tries to guide a buyer to or away from a particular area or neighborhood based on their race or religion. This practice is discriminatory and is an infringement of rights. The reason why is because discrimination is illegal, unethical, and racist.
This form of discrimination was prevalent in the 1960s when we were living in a world that was largely segregated. That changed and we enacted the Civil Rights Act in 1968 which included the Fair Housing Act.
The Fair Housing Act made it illegal to discriminate against anyone based on their race, religion, or national origin in relation to the sale, rental, or financing of housing. The Fair Housing Amendment Act of 1988 widened it to include age, sex, and handicap status.
This eliminated a lot of real estate steering in the housing market and redlining activity in lending. Redlining is a discriminatory practice where mortgage lenders refused to give loans or extend credit to borrowers in certain areas of town.
Believe it or not, real estate steering still occurs today although sometimes it’s purely unintentional. Imagine you have a Latin family as your client. You think they will be more comfortable in a Latin community so you plan to show them houses in that area. You don’t mean any harm but you’re actually steering which is illegal and unethical.
Because you were only showing your clients houses in Latin communities, this is an example of steering them toward an area or neighborhood.
Let’s say your client asks for a great school district on the west side. There happens to be two but one is in an area that is predominantly Asian and your client is white. You make an assumption that your client will not consider the Asian district so you don’t present it to them.
This is an example of steering them away from an area. You can avoid steering in this situation by presenting both districts to your client and letting them decide for themselves.
As a real estate agent, how can you make sure that you’re not breaking the law and genuinely servicing your client? To overcome this, agents must first become aware of this form of discrimination and understand how they can avoid it while working with the homebuyer. There are some simple and basic things that you can do to achieve this.
It all starts with having good communication with your client. Start with listening, which will lead to understanding. When speaking, be clear and concise. To ensure you are hearing someone correctly, summarize what you have heard in response. Practicing all of these skills will make sure you’re always on the same page as your client.
Ask questions that are specific when it comes to where they want to live. If your client says they want to live on the “west side,” ask for a particular street or a district they might be familiar with to narrow it down. Asking specific questions will help you create parameters. This way you can zero in on where they really want to live and help you avoid steering.
You won’t get into trouble with steering when you present all home opportunities to your client. Focus on finding the properties based on the criteria set by your buyer. Don’t make assumptions on whether your client will want to see a property in a particular area. Simply present all the properties in every area, district, and neighborhood and let your client decide where it’s most appealing to live.
Remember, it’s up to your client to make the choice of where they do or don’t want to live. Stay out of trouble and don’t make the choice for them! The only steering you should focus on is steering yourself away from discrimination.
Have you ever experienced “real estate steering” while searching for a home? Share your encounter and thoughts with us.
What are liquidated damages? Most real estate transactions follow the same structured procedure to meet the needs of the home seller and the homebuyer. If everything goes well, both parties walk away happy.
However, there are instances where something erupts in the transaction causing disparity between the parties and damage could be dealt. The good thing is, real estate agents and the real estate transaction process has procedures in place to compensate for damages dealt to a party.
In this article, we explore the power of liquidated damages and the role they play in the real estate transaction.
Liquidated damages is a legal clause that protects the real estate agent’s client from additional exorbitant fees. In the event of a contract breach, the injured party is compensated with the funds that are set aside in an escrow account that are equal to the amount of damage caused by the offending party.
So, now that we know what liquidated damages are, let’s explore when and how liquidated damages come into play during a real estate transaction.
When a real estate offer is made and accepted by both parties, the seller will require the buyer to make a deposit, typically 3% of the purchase price, into an escrow account as financial security. The purpose of this deposit is to alleviate any damages a seller incurs if the buyer backs out of the deal.
At first glance, the damages caused with backing out of a deal might be hard to discover. But, let’s dig deeper to see the full picture and how these expenses add up for the home seller.
So, why is the liquidated damages clause important? Let’s lay out a scenario. A buyer and seller have entered a contract on the sale of a one million dollar home. As part of the contract, the buyer deposits $30,000 dollars into an escrow account.
While waiting for the deal to close, the buyer requests some repairs on the property. The seller deems the requests reasonable and performs the repairs. In the meantime, the seller is preparing to vacate the property (scheduling moving services, making large purchases, etc). At some point in the process, the buyer calls off the deal.
What happens now?
The seller has already spent money making expensive repairs and preparing to close the sale. At this point, all of the contingencies have cleared. The seller has jumped through all the hoops. Does the seller just lose out on all the money promised in the sale?
This is where the liquidated damages clause comes in. The buyer can recoup their losses with the money in the escrow account. However, it’s not a simple process.
Neither party is automatically entitled to the money in the escrow account. The buyer and seller must negotiate and agree on what to do with the money. Sometimes, the two parties can’t come to an agreement. What happens at this point? This leads to arbitration – which is an entirely different ball game.
It’s important for agents to make sure the liquidated damages clause is included in the contract for every sale because it acts as a final protection for the seller in a real estate transaction. In the event that the buyer backs out of the contract, the seller can collect escrow funds as reimbursement for paid expenses during the closing process.
Have you or a client ever needed to enact the liquidated damages clause? Tell us about it below?
What is Mello-Roos? For those who have never heard of this real estate term, Mello-roos is an additional tax or special assessment on a property at purchase, aside from the property tax. Who is subject to Mello-Roos? What are the taxes used for? How is it beneficial to homeowners? Let’s explore this fascinating tax and how it affects the way you interact with clients.
Some communities are brand new or rather new. We can consider a community new if it’s been in existence for 5-10 years. These communities might have Mello-Roos or that additional tax or special assessment.
When these little districts were first built, they needed their own fire stations, schools, roadways, and other services. They would need people in these new communities to help pay for them. How? They would pay for them as a bond. This bond would usually last anywhere between 20-40 years. Although, not all taxes have an expiration date.
Paying more taxes to live in a neighborhood might sound like a turn off but this could be a preferred feature for some people.
On the surface, you wouldn’t think that people would want to pay more in taxes or on anything else for that matter. But in a way, Mello-Roos comes with some advantages and benefits.
Think of Mello-Roos as investing in a seat upgrade on a plane flight. Everyone on the flight will get to the destination but your upgrade to 1st class just made everything a little better. A larger seat, more legroom, better food, and free drinks make it worth spending a little more on the ticket.
Now, let’s think about what that means in the new community you just moved into. Mello-Roos allows for better schools, new roads, perhaps more police and other government services. That being said, as a buyer you have to ask yourself if you are willing to pay that extra Mello-Roos to live in a district where you’ll get those benefits.
The answer to the question “Is Mello-Roos Worth it?” lies with the individual buyer and what’s most important to them in their new home.
In some cases, buyers are more than willing to pay the Mello-Roos tax for that perfect property. Especially if it gets them in a community that may be more modern, well maintained, or in an exclusive area. They could see the benefits that a Mello-Roos brings to the community and see it as a worthy investment for themselves or–potentially–their family.
For some, the answer is clearly no. For example, let’s say the buyer is single and a new school district is not the driving force for where they would like to purchase a home. Perhaps for them, the overall benefits of Mello-Roos aren’t enough to justify paying the extra taxes. In this case, the homebuyer would be interested in a different neighborhood that meets their wants.
How does Mello-Roos affect you as a REALTOR®️? Let’s say you have a buyer with a budget of one million dollars. The lender has approved your buyer and the maximum monthly payment your buyer can afford is $5,000. You’re able to find the perfect property within the budget and your client is excited. But then you find out the house has Mello-Roos.
So now your client’s payment has gone from their maximum $5,000 to–let’s say–$6,000. Now we’re beyond what they can afford. So they no longer qualify for this house because Mello-Roos has tipped the scale over their maximum allowed by the lender.
As a Real Estate Agent, it’s important to understand what Mello-Roos is so that you can better serve your clients and prevent any unnecessary drama. Before showing properties to your buyer, find out ahead of time if any of your listings are subjected to the neighborhood tax. You can easily check by contacting a local title representative. If they are, your buyer may not qualify, and you will know that going in.
Taxing is an effective method for newly formed communities or districts to finance improvements to create an appealing area for homebuyers. Oftentimes, the money goes to fund schools, hospitals, police stations, road construction, and sewer maintenance. As a result, these amenities help attract families or individuals who can not only afford to pay the Mello-Roos but actively seek out these characteristics.
A Mello-Roos tax can pose a potential issue for some home buyers. If the additional tax is high enough, it could make the property unaffordable for the buyer. That’s why it’s important to know what your homebuyer wants in a property. The last thing you want to do is to pull the rug from under their feet with the Mello-Roos tax when they find their dream home but can’t afford the tax.
Overall, it’s important to know the pros and cons of this tax before searching for a home. This will allow the buyer to make the best decision for their lifestyle and finances.
So, now that you have more of the facts, what do you think about Mello-Roos?
Your first real estate client is a BIG deal. As a new real estate agent, your first client ignites your entire career and gives you the confidence to propel you forward. It is the motivator that tells you “yeah, I CAN do this.” The reason why your first real estate client is a big deal is because they are a precursor for what is to come in your career.
Most new agents have the same realization at the start of their career. They realize they don’t know how or even where to start to get their first real estate client. If you have been an agent for several months and still have not gotten a client, don’t panic.
It is normal for most new real estate agents to go long periods of time at the start of their careers without a client. That’s why the first year is the hardest.
There’s good news. You can practice the fundamental methods of getting your first real estate client. These methods are not flashy or revolutionary. They are the fundamentals that, when put into practice, are proven actions you can do right now to get your first real estate client.
Prospecting is a necessary part to growing your business–especially when you are a new real estate agent. At first, these methods are hard. They put you, the new agent, into a vulnerable position because you will experience failure through rejection.
Coping with rejection is hard. Moreover, the fear of rejection keeps us from action. But, overcoming this fear is paramount to building a successful career.
So, let’s get started. Here are the top 5 most effective ways you can get your first real estate client:
Prospecting does not get more fundamental than this. Door knocking is the oldest prospecting method in the book. Every real estate agent has been told, at some point in their career, to practice door knocking. Door knocking involves knocking on homeowners’ doors to see if they would like to sell their home or buy a new home.
Door knocking is a common prospecting method because it is an effective way to find new leads in a targeted neighborhood.
Surprisingly, most new real estate agents door knock ineffectively because they miss one important ingredient. They should always bring value. When you give value, the interaction becomes worthwhile even when they are not interested in your service.
Contrastingly, if you do not offer value, the homeowner will not have gained anything from the interaction if they are not interested in your service.
Value can be anything that will benefit the homeowner’s well-being. One effective gift you can provide is the gift of knowledge. You can show homeowners what their home is worth. This might not convince anyone to make the decision to list their home in the moment. However, this knowledge can incentivize them to list in the future.
At the very least, the lead will now have a document that tells them how much money they can earn. Therefore, they will contact you when they are ready to list.
Oftentimes, homeowners are surprised to see how much money they can make from selling their home. They might be in the midst of thinking about upgrading houses or downsizing to a smaller house. That is why giving them the gift of knowledge can inspire them to take action.
Cold calling is like door knocking but done over the phone. It involves contacting leads, often without a rapport (hence the term “cold”). The goal is to see if they would like to sell their home or buy a new home. Cold calling can be done from your home, office, or your favorite coffee shop.
Just like door knocking, cold calling is quantity driven. The more people you call, the more likely you will find a prospective first real estate client. Cold calling is a common method to discover clients from a list of leads. The reason why this is common, just like door knocking, is because it is an effective method to find interested home buyers and home sellers.
Similar to door knocking, the chances of building a rapport increases when you give value. Value piques the interest of the lead. You contact leads cold and without warning. Therefore, you should give value to warm up to the conversation. You giving the contact value–in the form of a gift–is a great way to incentivize them to list. This value being the gift of knowledge.
The contact will know how much their house is worth and how much money they can make, therefore incentivizing to sell their home. The contact might not sell their home right away, but they will have your contact information when they are ready.
However, you might get lucky. You could contact someone who is already thinking of selling their home and this gift is the extra encouragement for them to sell their home or buy a new one.
Your sphere of influence is another fundamental method of finding your first real estate client. Most agents recognize this term because your sphere of influence has a high success rate. So, what is the sphere of influence and how does it work?
The sphere of influence is your immediate network of people you know. You might think “I don’t have a network–I’m new!” This is a common fallacy. Everyone has a sphere of influence, but not everyone knows what it looks like.
Your sphere of influence consists of family members, friends, people in your volunteer group, people who you are acquaintances with, etc. Every person you know can be in your sphere of influence. Therefore, you already have an advantage to work with them when they need a real estate professional’s opinion or help.
When someone in your sphere of influence needs help selling their home or they are looking to buy a new home, you have a warm connection to them. This connection increases their likelihood of hiring you.
Here is an example of using your sphere of influence. You contact acquaintances, friends, and family members to tell them that you are a real estate agent working at the local brokerage. When an acquaintance hears your career update, they inform you that they want to sell their house and buy a new one. You offer your services and they sign with you.
This is just one example of how the sphere of influence can work in your favor. You never know what people in your sphere of influence need until you put yourself out there. When you do, you may find that some people in your sphere are interested in listing or buying a home.
In an interview with Richard Schulman, Keller Williams real estate agent and top producing KW agent in the country, he explained “as humans, it’s our natural instinct to work with someone we trust.”
He continued to explain, top producing agents will always lose business to their client’s friend, no matter their qualifications. The people in your network will have more trust with you than someone they don’t know. Therefore, you can use this advantage to bridge a connection with them.
That’s what makes the sphere of influence such a powerful way to prospect for new leads.
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Creating a digital presence helps agents find their first real estate client passively. A digital presence creates familiarity and a sense of connection through content distributed on social media. Such social media channels include Facebook, Instagram, Twitter, LinkedIn, YouTube, and their own personal website.
Some agents discredit the importance of having a strong digital presence. They think a better investment of your time is to interfacing with leads face-to-face. Interfacing examples include door knocking or cold calling. Interfacing with leads is always effective. However, they overlook the power of social media ads and creating a digital connection.
Using social media advertising is a smart way to advertise to home buyers and home sellers. This is the digital equivalent of seeing an ad of a local real estate agent’s service in the newspaper. A social media ad can target leads based on qualifiers (age, geography, interest, etc.) to help you find the perfect client.
Let’s analyze what this looks like with Facebook. Facebook is a commonly used social media platform by people of all ages. When someone in your targeted geographic location scrolls through their social feed, they will see a promoted ad of your services.
Informing the user that you can help them sell their home or find a new home to purchase. Coincidentally this has been on their mind. Because of their need, they can click on the ad and have their contact information forwarded to you. This creates a warm lead that you can contact in the future.
Therein lies the power of social media advertising that people overlook. Taking time to focus on developing a strong funnel system for warm leads increases your lead to client conversion rate.
A digital presence is a creative approach to booking more clientele. The result of creating a digital presence is brand recognition and credibility in your sector. At the core of creating a digital presence, real estate agents are simply building a personal connection with their sphere of influence.
You can maintain your sphere of influence by interacting with people on social media. The simple idea behind this is an earnest one. Social media makes communication easy. When your goal is to make new friends and be a good friend, retaining clients no longer becomes a concern. People will naturally work with you when they need an agent.
You can take social media a step further by building a brand around your name. This is an effective way of letting your sphere of influence know about your career, achievement, and progress without contacting them one at a time.
Additionally, this will remind people in your sphere of influence that you are a real estate agent doing great things with your career. When they need an agent, they will think of you because they will associate anything real estate related with you.
Let’s discuss the power of content marketing. The reason why YouTube and real estate agent celebrities are closely connected is because celebrities know the influence of creating content. Creating content increase your reach and influence to people who are outside of your sphere of influence. When the content created is high quality, people will share it. This is how your reach and influence grows.
Let’s see an example of this in the real world. Ryan Serhant is a popular name among real estate agents because he’s a known celebrity. Part of his following includes people inside and outside of the real estate industry. There are thousands of people who know this specific real estate agent because of the content he creates.
The reason why so many people know about Ryan Serhant is because he has created copious amounts of content. He has done this with videos, television interviews, broadcast shows, social media posts, tweets, instagram posts, and more. He has attracted more people to his brand and style, which is evident in everything he creates. Therefore, he has created a reputation, also known as a brand name.
So, how does this translate to finding new leads? Content marketing will help you build an audience of people. A few of these people will seek out your services. This is passive lead generation.
People who see your content will seek you out because they are in need of a real estate agent. They saw your content and turned to you for professional help. Again, when they think of real estate, they will think of you.
Although attaining celebrity status is unlikely, you can build local recognition through content marketing.
Agents can use lead generating websites and online directories to passively find their first real estate client. The great part about using websites and directories to market your services is that it does not require extraneous attention. Lead capturing websites and online directories passively give you leads. In other words, they exist as a funnel to your website or lead capture.
Lead generating websites can exist in many forms. Websites such as Trulia, Redfin, and BoldLeads let you set up your presence online with little effort. Each offer a different advantage for agents. These websites are widely accepted as a method of lead generation because digital prospecting is a necessity for agents.
Online directories are a passive way to find leads online. Directories such as Google My Business or Yelp serve as a review aggregator. In other words, people review your business.
The more high quality review, the easier you are to find online and the more likely people will work with you. Although using online directories effectively will be hard when finding your first real estate client, they serve as a powerful tool to grow your business over time.
You should encourage clients and to review you online after working with you. The earlier you start, the greater the growth.
Now, more than ever, people are turning to the internet and social media to find services. A lack of digital presence or lead generation is neglecting a fundamental of finding your first real estate client.
At first, prospecting may seem daunting because it has such a low success rate. The great part about prospecting is you will not run out of leads. Therefore, the low success rate translates to a few clients over a large pool lead.
The hardest part of prospecting is not the act of prospecting. It is more subtle. The hardest part of prospecting is surmounting self-doubt. Most new real estate agents experience self-doubt when they encounter constant rejection.
This feeling festers and manifests into phrases like, “this won’t work…” or “why don’t I try another career” or even “I’ll never find a client.”
To ward off these negative thoughts, new real estate agents should develop a sense of awareness. This is to identify hurtful thoughts that could sew doubt. You will prevent thought spirals from festering when you reinforce your attitude with healthy self talk. This prevents the creation of mental barriers that hold you back from success.
Also, always remember one simple thing: you have to keep prospecting to find your first real estate client. The good news, if you keep doing it, you will find them. Every rejection gets you closer to the one client that will work with you.
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Escrow is commonly associated with real estate but it’s not exclusive to it. Escrow is a neutral third party used to hold and distribute money or property once contractual obligations are met. Escrow is used across many fields of business such as banking, the buying and selling of intellectual property, and in mergers and acquisitions of large companies. But let’s talk more about how it’s used in real estate.
Now maybe you have heard the term but you’re not exactly sure what escrow does in a real estate transaction. In simple terms, escrow in real estate is a neutral third party that protects the integrity of the transaction. So what does this mean? Let’s explore how escrow in real estate plays a part in that.
It starts with you as a real estate agent getting a buyer and a seller together. That can be to either acquire or sell a property depending on who you are representing. When everyone is happy and in agreement, both parties will enter into a legal and binding contract called the RPA or Residential Purchase Agreement.
The RPA is integral to the transaction because it covers all the terms, conditions, and stipulations that have to be met according to what the buyer and seller have agreed upon. It acts as the blueprint for escrow to carry out.
When you have a fully executed contract that’s when escrow steps in. A “fully executed” contract means that the buyer, seller, and their respective agents have all signed off the Residential Purchase agreement as well as any other addendums or amendments that include the conditions of the sale.
The main purpose of an escrow company is to now take the RPA and make sure that all the conditions are met in the transaction. As a matter of fact, escrow will not close until that happens. Not only will they make sure that all the stipulations are met, but they are also responsible for keeping everything on schedule and accounting for every penny.
So what happens if you’re going through escrow and a condition has not been met? What happens then? Does escrow still close? As we just discussed it’s escrow’s responsibility to make sure that all conditions are met. Let’s talk about how escrow handles the situation when they aren’t.
So, let’s say we have opened escrow and so far everything has been on schedule. All items have been accounted for, we’re nearing the close and everyone is happy. Escrow is reviewing their final paperwork to make sure all stipulations have been met and they happen to notice that the seller agreed to give the buyer a termite report. It was never ordered. Now we have a problem.
Or do we?
A missing termite report could be considered a minor issue. This is not an expensive report and can be obtained fairly easily. Should escrow worry about it or just close the deal?
Knowing what you do up to this point, what do you think needs to happen? If you said, “Get the termite report done,” then you are right! Why? Because it’s in the contract. So even though you may have been near the end, everything has to stop. It’s a stipulation and all stipulations need to be met before escrow can close.
Remember, escrow will uphold the integrity of the transaction regardless of whether the stipulation or condition is small or large. This is escrow’s primary purpose. So what else is escrow responsible for?
Let’s talk about the other aspects that escrow is responsible for in a transaction. Aside from the stipulations that have to be met, they are involved with other areas of the transaction such as:
What is the property title? The property title is the transfer of ownership from the seller to the buyer. Escrow is in communication with title to get the property information and to make sure that all the information is accurate.
The Grant Deed is a document that ensures the new buyer is clear to hold the title of the property. Escrow prepares the grant deed and sends it to the seller. The seller signs it in front of a notary and returns it to escrow. At close, the escrow holder will record it.
During escrow, they will receive and hold funds for the seller’s existing loan. Escrow is also in contact with the buyer’s lender. This is to ensure that everything with the loan is on track. This also allows escrow to be aware of any issues that may arise to prevent the closing of escrow.
They prepare the Final Closing Statement for the buyer and seller. This is an accounting of funds made to the seller (seller’s statement has proceeds amount) and to the buyer (buyer’s costs and credits). This is prepared before escrow formally closes escrow or funds the loan.
Escrow is an excellent resource for both you and your client. All you have to do is reach out to your escrow officer and they can let you know everything they can do for you.
As you can see, escrow is a vital part of the real estate process. Because they are a neutral third party, you can be assured that everything is on the up and up in the transaction. Escrow makes sure that everything in the contract is honored and frees up the real estate to do what they do best. Getting more deals!
Have you had an encounter with an escrow company that went above and beyond? Share your experience with us.
Addendum vs amendment–what’s the difference? The addendum and amendment are two important terms related to the Residential Purchase Agreement (RPA) or contract in real estate. These are typically used when you need to add or modify terms or conditions that have already been agreed upon.
We will discuss what these terms mean and when to use them. They are similar but knowing the difference between an addendum vs amendment will help you to use them correctly.
Let’s start with the contract also known as the Residential Purchase Agreement. The Residential Purchase Agreement is used to create a legally binding agreement between the buyer and the seller. Within the RPA are all the terms, conditions, and stipulations agreed upon by all parties in the transaction.
Occasionally, these terms may have to be changed or modified. Sometimes the negotiation of terms will continue even after you have a fully executed contract and have opened escrow. This is when the addendum and amendment come into play. Let’s get a little more detailed about what these terms mean and when you would use them.
In some cases, you are adding conditions to the contract. When the contract exists and we add something new to the terms, we want to use the addendum. This addition could be the inclusion of real property or the addition of an inspection or report. Just remember, when we ADD to the contact, we use the ADDendum.
For example, let’s say during the escrow process there’s some damage to the carpets done by the pet or child of the seller. The seller agrees to then add a $5,000 credit for new carpet at the close of escrow. Because we are adding a credit to the agreement, we would use the addendum to account for this.
Other times, you may be amending terms within the contract. Amend means to change or modify. Let’s talk about the RPA again. So we’re starting with the agreement of terms and conditions. Now you want to take something out or change something within the terms. In this case, we’re going to use the amendment.
So, a good example of when to use an amendment would be if you wanted to take something out of the agreed terms. Maybe the seller originally agreed to include the living room furniture in the purchase. The original agreement included the sofa, coffee table, love seat, and recliner. But, now, the seller has second thoughts about the recliner for sentimental reasons. You would then use an amendment to change the terms omitting the chair.
There may be situations where you may not be sure whether to use the addendum vs amendment. There could be times where you’re both adding as well as changing conditions that already exist. How do you categorize this? It seems to get tricky at this point. What form do you use? When in doubt, always use the addendum.
The addendum is a flexible document. Although you would primarily use this for adding a new condition, you can also use the addendum to exclude terms and document a detailed change or addition. The addendum has extra space so that you can get specific with line items. Remember that it’s important to be specific so that there are no misunderstandings on either side of what items were agreed upon.
Let’s circle back to the example of the living room furniture. This is a great example of using the addendum for inclusion, exclusion and detailing items. Let’s say it gets more complicated than one chair that needs to be excluded. You could then use the addendum to document exactly what the buyer is asking for.
Simply writing in, “Buyer wants all the real property in the home” is too vague. This could cause potential issues between parties so get specific and clearly outline all the buyer wants.
For instance:
As you can see, this is clear and more detailed leaving no doubt what the buyer is requesting from the seller.
Now that we know more about the differences between the addendum vs amendment and how to use them, what do we do with these changes?
Did you know that anything you put on an addendum and send to escrow will formally get put on an amendment? Yes, whenever a change is implemented and sent to escrow, they will create an amendment and add it to the escrow instructions. Actually, the addendum is the preferred way that escrow would like to receive changes in a transaction.
So using the addendum will ultimately make it easier on you as a real estate agent. You create the addendum, you send it to escrow and escrow creates the amendment to the deal and includes it in the escrow instructions.
The addendum and amendment are great sidekicks to the Residential Purchase Agreement. In real estate, you never know what’s going to happen during a transaction and the most well-written contract may need to be changed or modified. Even the Constitution has amendments!
So, remember that when you add to the contract, use the addendum. When you’re removing from or changing the contract, use the amendment. When you’re not sure, play it safe and default to the addendum.
As an agent, what’s the most creative item you’ve had to put on an addendum in a transaction? Share it with us!
A termite inspection in real estate is done to make sure that a home is free of termites and other damaging elements. What you may not be aware of is how that termite report is broken down and what those sections mean. We’re going to talk more about Section 1 and 2 of a termite inspection, what they mean, and the differences between the two.
So when would you need a termite report?
Let’s start with your client that’s interested in buying a home. You show your buyer houses and they finally find the one they want. You make an offer and it’s accepted. Escrow is open and everyone is happy so far.
As with any property, we want to make sure there are no underlying issues. Your buyer has the right to a home inspection in a real estate transaction. Along with that, your client has the right to a termite inspection. In some cases, if the buyer is dealing with a lender the termite inspection will be required as a condition of the loan.
The next step would be to hire a termite inspector that will go into the home and inspect for any infestations. If necessary, the inspector will also go under the home to check for subterranean termites. This to make sure the house is free and clear of termites.
If there is no evidence of termites, this is called having clearance and the lender will need to be provided with this information to satisfy the condition of the loan. The reason some lenders require this report is to ensure that they are issuing a loan on a property that’s a good investment.
Along with termites, the inspector is checking for things like dry rot, fungus, and any other issues that come with damage to wood. The inspector will look at the interior and exterior areas of your home and check for any visible signs of a termite infestation.
Having a termite inspection is vital, especially in places like California where most homes are made from wood and stucco. Unless the home is new construction, don’t forgo having a termite inspection. This will ensure that the investment in the home is sound and alert you to any problems from pests.
As you can imagine, this is extremely important because no one is going to want to invest in a home that has been structurally damaged. You want the report to disclose that the home is solid and has good structural integrity.
So the termite inspector has viewed the property, made his notes, and created the termite report. The findings will be important to you as the real estate agent, to your buyer, and to the lender for the loan. The inspector lists that there are Section 1 items in the kitchen, the bathroom, and under the house. Further along in the report, he lists that there are several Section 2 items.
Whoa, ok. At this point you may be asking, “What are Section 1 and Section 2 items?” Is one worse than the other? Will these findings affect the sale of the home or conditions of the loan? Now let’s talk more in detail about what these terms mean, the differences between the two, and the impact they may have on the home.
If the termite report comes back with Section 1 items, that means there is an actual infestation of termites. That is the most important thing to know about what Section 1 means on the termite report. It’s fairly straightforward. Termites are there and are existing.
We know this because the inspector enters the home and visually sees termites or evidence of termite damage. That is Section 1 of a termite report. So let’s move on to what Section 2 means on the report.
This is when the inspector notes potential damage to an area. If it is not treated or repaired in the near future, it can become a Section 1 item. These areas are considered hotspots and generally refer to where termites can flourish or elements that can cause wood damage. So what does this mean exactly? Let’s talk about a Section 2 example to make things more clear.
The inspector is viewing both the interior and exterior of the property and notices that the home has wood siding. Alongside the home is the sprinkler system. When it comes on, one of the sprinklers hits the side of the house slightly warping the wood.
The inspector notes that it hasn’t damaged the side of the house yet; it still has structural integrity. But he also notes that if the sprinkler head is left unchecked it has the potential to turn that wood siding into dry rot. So again, it has the potential of turning into a Section 1 item.
As you can see Section 2 items are not as serious as Section 1, but just as important when you are looking at the Termite Inspection Report overall. Your buyer will want to be made aware of these potential issues to protect their investment.
Buying a home will be one of the most important investments you’ll ever make. You will want to safeguard that investment. Getting the termite inspection is just one safeguard that you should definitely invest in.
Remember, findings of Termite Section 1 may mean taking a more serious look at the property. Addressing the infestation should prevent more extensive damage. If the report finds Termite Section 2 items, take that into consideration to avoid these issues becoming problems.
Would you purchase a home with no Section 1, but a considerable amount of Section 2 Items that would have to be addressed? Share why or why not with us!
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