Selling real estate is a difficult career. So, teaming up with a company that offers top-notch training vastly increases the chance of a new agent succeeding. Three realty companies, in particular, are known for their programs and dedication to investing in their agents' success.
- A career in real estate can be rewarding, but agents typically work on their own to find their own clients and earn only commissions on closed deals.
- Several real estate groups that employ realtors have established comprehensive training and mentorship programs to help get you going.
- Even with rigorous training and knowledge, real estate agents must be independent and entrepreneurial to achieve success.
Real Estate Career Stats and Facts
As of 2017, the U.S. Bureau of Labor Statistics (BLS) reports that there were over 440,000 real estate brokers and salespeople in the United States. Their median pay was $47,880 per year, or $23.02 per hour. The pay distribution, however, is broad. Top agents regularly earn in excess of $200,000 per year. The lowest-paid agents, by contrast, work 40 hours per week or more to make under $20,000, effectively earning minimum wage.
For many new agents, the most difficult part of the job is not passing the state exam. Prospective agents must learn about the mountain of paperwork involved with closings and understand their relationships with mortgage lenders and title companies. The most challenging aspect is finding clients. Agents with broad social networks or expansive warm markets have a better opportunity. The key to real estate sales is that you need clients to make money.
Consequently, the best agent training programs focus on marketing and procuring business. Other characteristics to look for when seeking a place to hang a new real estate license include training on local market trends, access to the latest technology, and access to a broker who can assist and support.
The Bureau of Labor Statistics expects employment of real estate brokers and sales agents to grow approximately 6% between 2016 and 2026.
The world's largest real estate franchise by agent count, Austin, Texas-based Keller Williams offers a training program that has been recognized in the industry as second to none. Its seven-week BOLD program pairs new salespeople with experienced agents and walks them through real-world situations, such as sales calls and closings. New agents learn marketing techniques and how to position themselves as real estate experts in their local communities. They are divided into groups of 10 agents and expected to hold each other accountable for meeting personal expectations.
On average, an agent who completes the BOLD program closes 12 deals per year and earns $70,000 in commissions, which is 40% more than average U.S. earnings.
Weichert was founded by Jim Weichert in 1969. Its training philosophy centers around seeing potential clients as people first and customers second. This mindset enables agents to connect with people on a more personal level and gain a deeper understanding of their needs and wants. Jim started as a real estate salesperson, and the training program is infused with his mantra that "people buy people before they buy products and services."
Training at Weichert is made up of a mix of classroom and online learning. The Morris Plains, New Jersey-headquartered company is big on team-building. Established agents are expected to offer their knowledge and expertise to new team members to ensure their success.
One of the scariest aspects of starting a real estate career is working on commission only. It takes most agents two to three months to close their first sale. Unless they maintain another job on the side, they go without a paycheck during that time.
Unless they work for Redfin. In 2014, the Seattle-based, publicly traded company announced its Redfin Agent Development (RAD) program, an 18-month apprenticeship that teaches new agents the business through classroom learning, role-playing, and on-the-job training—and pays them salary and benefits. In other words, they are considered full-time employees while they train. Their responsibilities gradually increase during the program, and their earnings are augmented with commissions and bonuses when they begin closing sales.
The Bottom Line
Keller Williams, Weichert, and Redfin all provide career support and training to new agents, eschewing the traditional sink-or-swim model that characterizes the real estate industry. Which company has the best training depends on the agent's experience level, the type of guidance that he needs, and, of course, the sort of agent he wants to be.