Advice from any agents out there

[newbieinvest]

Couldn't work out which section of the forum to put this on. Sorry.

Anyway, I am currently working in the insurance industry. Have done so for nearly 15 years. My main role over this time has mainly been around the assessment of personal injury claims and settlement negotiation.

I am now 33 years old and no longer enjoy my job or the industry itself. However leaving the industry has been difficult to date because I am paid so well and to change careers means starting on the bottom again. Can't afford to lose to much money as we are a single income family at the moment. Currently earning just under $97K

I have had a small interest in getting into real estate over the years but never given it any significant thought. I am now. I think it is something I would enjoy. I have seen an online TAFE course called Certificate IV in Property Services. Completion on this course not only allows you to obtain a sales persons certificate of registration but should you choose you can use it to become a licensed agent. I plan to start this course soon. Should take me 12 months but maybe slightly more.

My questions are as follows:

1) Should I do the above course or just do the course that only allows me to obtain a certificate or registration. Am I overdoing it to just start out. Will a licence make me a more attractive employee?

2) Has anyone else started in real estate later in life. What were the pros and cons. What helped you get your first job and how did you improve your skills once employed.

3) What sort of pay can I expect. Want to work on the NSW Central Coast but will travel if needed to get my start.

4) Do you have any other advice or tips that will help me with this career change.

5) Job security. What’s it like. Do many agents get the sack in lean times?

 

[Propertunity]

1) Should I do the above course or just do the course that only allows me to obtain a certificate or registration. Am I overdoing it to just start out.

You will need the certificate as a pre-requsite to work for a REA or a BA.

Rather than pay $5K for a REA licence straight up, if you work in the industry for 1-2 yrs you can get some RPL and from time to time the REINSW and the Govt. have deals that let people do their full licence for $440.

Will a licence make me a more attractive employee?

Only if you want to work for some cheapskate REA who wants to pay you commission only.
Just because you have a licence does not make you any good at the job.

2) Has anyone else started in real estate later in life.

Yes

What were the pros and cons.

Varies from person to person. It is, or can be, 24/7. Week-end work is a given on the Central Coast - this can be a problem getting to your kids sports events etc.

What helped you get your first job and how did you improve your skills once employed.

Sales experience and a strong desire not a "small interest".

3) What sort of pay can I expect.

Look up the award. It works out about $800pw as a base salary. Commissions are on top of that. Average agents earn $60K pa. Good agents earn $120-150Kpa. Excellent agents earn $250+K pa.
If you don't earn commissions, no REA or BA will keep you on anyway.

Want to work on the NSW Central Coast but will travel if needed to get my start.

REAs like you to be local so you live in and know the area. You should not need to travel.

4) Do you have any other advice or tips that will help me with this career change.

Do something!!

5) Job security. What’s it like.

Job security is entirely up to you. If you can sell you will always have a job - anywhere.

Do many agents get the sack in lean times?

In lean times, the hopeless ones leave the industry or are sacked.
Actually, that also happens in the good times too.

 

[jclegg]

Hi there, Sorry I don't have any answers for you but I have been thinking along the same lines so I'm very interested in what the professionals have to say. I imagine it is a fairly competetive industry to work in

 

[Jacque]

Hi there Newbie

It is a very competitive industry and you need to stand out amongst your peers to achieve results. This entails working long hours (forget about retaining 2 day weekends with most REA's taking a day off during the week to compensate for Saturdays) enjoying sales (and being good at it) and accepting that selling real estate is predominantly about obtaining listings. It is not about driving buyers to pretty houses and waxing lyrical about the property's features. It is about lots of cold calling and door knocking, networking/marketing, several evening presentations to potential vendors (most of which you will initially lose to other selling agents) open houses, collecting and contacting your database regularly, sales meetings, caravanning etc etc. Once you've settled into a new office, most agents are on their own and it can be tough going for some!

Depending on where and what you sell, your commissions will vary - and depending on how you're paid (debit/credit, living wage, commission only) you may find it hard going the first 12 mths as you find your feet in convincing vendors to give the new lad a "go"

There are many selling agents who quit within the first 24 mths, as they realise the role isn't for them. It can be a hard slog, with most good agents I know working far beyond the standard working week that most office workers are used to. Mind you, it doesn't help that most agents also tell vendors and buyers to call them anytime and wonder why they burn out after 6-9 mths in the job :roll eyes:

If you are really keen to get a foot in the door, I'd do as Prop suggests and get your compulsory Cert to work in an office for 6-12 mths to first see if you do enjoy it - but CHOOSE CAREFULLY! Dare I say not all agencies are equal and I'd rather work for less for a credible and well-reputed agency than an unknown who claims to have you earning $100K+ in the first year.

Best of luck with it all and keep us posted as to when you do change over.

 

[devank]

I’m not how much this ‘event’ is relevant.
Last month I was waiting in an agent’s office sitting next to two nice sales ladies. Owner of that business came up to one of the sales lady and told her to move handbag away from the wall because it was newly painted last month! She said that with a very strong voice and also in front of everyone! To me that shows how tight they run their business and how closely each employee is watched.
So... will you be happy to work for a small company considering you have been with a larger company?

 

[pennyk]

I started down the path of becoming a REA in my late 30's... but decided not to pursue it.
I did the Certificate of Registration online, thru OTEN (NSW). It was very easy, and I think probably took around 3 months to complete part time (at the same time as managing work and family). If you are happy to pay more, there are 5 day courses, often run by the RE companies.
The reason I didnt pursue it was primarily the money. I realise now I was getting into one of the dodgy companies that Prop mentioned. I was looking at getting paid around $100/ day, because they only wanted to pay me part time (1-2 days per week), but expected me to work additional days. They also set my commission structure at the same level as a full time staff member. So, there was no way I was going to make any money.
I guess I also realised I was really going to struggle to go to the bottom of the ladder. The job was very "controlled", with certain tasks that had to be done every day, which gave you a certain number of "points", and you had to prove that you'd completed your alloted "points" each day. I'm sure it was an effective way of training new staff, and giving them structure etc...... but after running my own business and being a manager, I couldnt see myself being micromanaged in that way...

My question to you would be what do and dont you like about your current job, and what do and dont you think you would like about being a RE agent.

I could be wrong, but I would think that being an agent and being in insurance require different personalities and skills, and, since you are a single income family, I think its important to work out if you are likely to be successful in a new venture before you step into it. It may be worthwhile getting some advice/ testing done to see what your strengths are and whether they "fit" into real estate sales.

From my perspective, it would be great if there was some way to move into something more enjoyable where you can build on your experience and skills, rather than starting from scratch.

 

[Propertunity]

... it would be great if there was some way to move into something more enjoyable where you can build on your experience and skills, rather than starting from scratch.

Some agencies would probably give you a start working week-ends only (while still keeping your Mon-Fri job), so you can see if you are suited to it and they can get some help at the Opens etc.

 

[newbieinvest]

Some agencies would probably give you a start working week-ends only (while still keeping your Mon-Fri job), so you can see if you are suited to it and they can get some help at the Opens etc.

I was thinking of doing just that. This way I get some exposure to the job without making the full change. If its not for me so be it.

 

[JayOh]

I've never worked in real estate, but like you, once I became interested in property investment I thought about a job in real estate.

My background is primarily in IT - software sales / online marketing. A few years ago I took a bit of a break and sold used cars (classic and euro prestige) on a commission-only basis for a couple of years, so I'm comfortable with selling and not averse to taking a bit of a risk.

When I started looking into real estate, sales was one option, becoming a mortgage broker was another. I also had a bit of a look into becoming a property valuer thinking that this could be helpful experience and knowledge for building a property portfolio.

I can't imagine that real estate sales is an easy job - as Jacque described above the effort that goes into making money. The vendor pays your commission, so you need to be getting the listings. But the work that goes into selling a house - its a big commitment. Having been to more than a few property inspections and auctions - i don't envy these guys!

I'm a few years older than you, and I'm earning a similar amount. Building a property portfolio requires cashflow and access to finance at reasonable rates. If I were to change careers at this point in my life, both of these would take a hit - it would take several years to get my income back up to where it is now and to a lesser extent the career stability that lenders take into consideration. This would set back my portfolio accumulation by a couple of years.

So for the moment I'm thinking that I'm best off sticking to what I know to earn the cash to fund the property investment. A few years down the track I may be in a position to leave the job and spend more time on property development and investment.

I guess the point I'm trying to make here is - do you need to change your job to get into the real estate industry? Maybe look at your current job as the means to funding your future?

 

[Lil Skater]

I wouldn't do it if I was you, you'd be looking at going from a well paying $97k job to halving your wages, with barely any job security because it is such fast moving and if you can't keep up most companies don't hesitate moving you on. Plus, as stated most agents burn out after 6 months, many not making a sale at all and all working 6 or so days a week with longer hours.

If you were single and willing to take a risk, then sure, but if you are the main supporter of a family it may hurt a lot more than you think - and not just financially. It is not a 9-5 job, it's hard work for little reward and it will take time to find a good company to work for.

I'm just in property management (which also isn't 9-5 mind you, although many treat it as such) but when I first started I was doing reception/sales assistant in a small office with 4 sales staff and no property management as the office was split in two. It was okay, but even being a small office they all worked stupid hours and before the new laws came in (VIC) one of the sales guys who decided to change his career was only earning $600 p/w at about 55 years old!! Similar to what I was on at 18!

I know you said you don't enjoy the insurance industry, but is there a section of it you haven't explored which will continue to pay well?

 

[china]

Difficulties of small business owner

I’m not how much this ‘event’ is relevant.
Last month I was waiting in an agent’s office sitting next to two nice sales ladies. Owner of that business came up to one of the sales lady and told her to move handbag away from the wall because it was newly painted last month! She said that with a very strong voice and also in front of everyone! To me that shows how tight they run their business and how closely each employee is watched.
So... will you be happy to work for a small company considering you have been with a larger company?

Being a small business owner comes with its own unique set of worries and paranoias. I can empathise with the above scenario. You worry if your employee is staining the carpet, talking on the phone to their children during business hours, leaving unwashed coffee cups in the sink, using too many pieces of A4 paper to write a letter, reading sydney morning herald on internet, etc. Prior to owning my own business, I never worried about these issues. Once I started running my own office and having employees, all these little things bug me greatly as an employer.

 

[china]

I've never worked in real estate, but like you, once I became interested in property investment I thought about a job in real estate.

I can't imagine that real estate sales is an easy job - as Jacque described above the effort that goes into making money. The vendor pays your commission, so you need to be getting the listings. But the work that goes into selling a house - its a big commitment. Having been to more than a few property inspections and auctions - i don't envy these guys!

I think real estate can be an easy job if you become successful and established. I think that the agents who can get listings of prestige properties will do very well and be paid ridiculous amounts for minimal effort. At a 4 per cent commission rate, a sale of a two million dollar property will yield 80k. This could involve just a few hours work. Lets face it, ultimately, most top end properties sell themselves. In some regions of sydney, all listings are routinely in the millions. I think real estate agents can easily make more in one week than many earn in five years if the market is good and they are well established.

 

[wobbycarly]

I think real estate can be an easy job if you become successful and established. I think that the agents who can get listings of prestige properties will do very well and be paid ridiculous amounts for minimal effort. At a 4 per cent commission rate, a sale of a two million dollar property will yield 80k. This could involve just a few hours work. Lets face it, ultimately, most top end properties sell themselves. In some regions of sydney, all listings are routinely in the millions. I think real estate agents can easily make more in one week than many earn in five years if the market is good and they are well established.

Try somewhere between 1.5% and 2% commission. (Still "good" money) Depending on who pays advertising...

 

[Propertunity]

china, with respect I think that those comments are some of the most ignorant and ill-conceived that I have ever heard (with the possible exception of the last sentence) and obviously come from someone with no knowledge whatsoever of the sales profession.

Properties do not simply sell themselves.....at any part of the cycle. Getting a listing is not a few hours work.

 

[Rolf Latham]

I think real estate can be an easy job if you become successful and established. I think that the agents who can get listings of prestige properties will do very well and be paid ridiculous amounts for minimal effort. At a 4 per cent commission rate, a sale of a two million dollar property will yield 80k. This could involve just a few hours work. Lets face it, ultimately, most top end properties sell themselves. In some regions of sydney, all listings are routinely in the millions. I think real estate agents can easily make more in one week than many earn in five years if the market is good and they are well established.

yes maybe............well surely not !

and I quote

staining the carpet, talking on the phone to their children during business hours, leaving unwashed coffee cups in the sink, using too many pieces of A4 paper to write a letter, reading sydney morning herald on internet, etc.


I am not an agent, would not want to be agent, etc.

Seems to me, your conversion to a High earning REA is completed already.

So, are you going franchise or Independent ?

BTW, im not having a go, Im serious, if the grass is that much greener on the side of any sales than your current desert business landscape, surely logic would say one should try to become one of those agents that earn 5 years wages in a week ?

Even if the market is sad, and one is really really really bad at the task then maybe 6 mths work for a years wages is still good ?


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[pennyk]

. I think real estate agents can easily make more in one week than many earn in five years if the market is good and they are well established.

but how do you think they get well established? From working long hard hours and having strong sales skills, the ability to connect with people in order to get listings etc.
There are literally years of work that go into becoming "well established"... and many hours of pre-work go into getting a listing. Not so easy as you seem to think.

 

[Andrew_A]

but how do you think they get well established? From working long hard hours and having strong sales skills, the ability to connect with people in order to get listings etc.
There are literally years of work that go into becoming "well established"... and many hours of pre-work go into getting a listing. Not so easy as you seem to think.

Yes that's the catch. Instead of looking just at the possible pay packet for high end sales have a look at average salaries in the industry for a more sober perspective, no harm imagining but watch out for reality always Like a lot of industries the top performers do very well and the average performer not so well.

 

[Aaron_C]

Yes that's the catch. Instead of looking just at the possible pay packet for high end sales have a look at average salaries in the industry for a more sober perspective, no harm imagining but watch out for reality always Like a lot of industries the top performers do very well and the average performer not so well.

Indeed Andrew. Making a living purely on sales commissions always separates the boys from the men. You can really tell the difference between a good agent and a bad one.

 

[The Y-man]

Anyway, I am currently working in the insurance industry. Have done so for nearly 15 years. My main role over this time has mainly been around the assessment of personal injury claims and settlement negotiation.

I am now 33 years old and no longer enjoy my job or the industry itself. However leaving the industry has been difficult to date because I am paid so well and to change careers means starting on the bottom again. Can't afford to lose to much money as we are a single income family at the moment. Currently earning just under $97K

Maybe change job but stay in the industry?

Can you go to building insurance or landlord's insurance....? At least it keeps your foot in insurance as well as giving you exposure to real estate....

The Y-man

 

[Melbournian]

I think real estate can be an easy job if you become successful and established. I think that the agents who can get listings of prestige properties will do very well and be paid ridiculous amounts for minimal effort. At a 4 per cent commission rate, a sale of a two million dollar property will yield 80k. This could involve just a few hours work. Lets face it, ultimately, most top end properties sell themselves. In some regions of sydney, all listings are routinely in the millions. I think real estate agents can easily make more in one week than many earn in five years if the market is good and they are well established.

4% is a pretty high comission.. it is 1.8-2.5% around here.