Part-Time Vs Full-Time Real Estate Agent – Have you been considering a career in real estate? There are a lot of questions and things to consider when you’re choosing a career in real estate. Do you want to work part-time or full-time? Why are you getting your real estate license? Are you doing it just to buy and sell your own property or to actually have a business? And, speaking of business, are you looking to have a business or just provide a service to friends and family? Part-time or full-time?
Real estate is not for the faint of heart. You have to deal with a lot of different individuals with each transaction and because the dynamics vary based on everyone involved, each transaction is going to be different. No amount of real estate education is going to prepare you for hands-on training that you’ll get through actual experience. This is why experience is almost more valuable than just basic knowledge and book smarts.
In this article, we’re going to talk about the differences between part-time and full-time agents, what might work best for you, and how much money you can make doing either.
Part-Time Vs Full-Time Real Estate Agent
Is being a part-time real estate agent worth it?
Disadvantages to being a full-time real estate agent.
You will have a full schedule. You have to manage your time effectively otherwise you will be at people’s back and call all hours of the day and night. Real estate agents tend to work around the clock because nights and weekends are the prime time for showing buyers different homes. But, this also means that you could be working when you don’t want to or setting your hours to work when you want, even though that might actually cost you some business.
Being a full-time real estate agent is a financial commitment. With prelicensing fees, state exam fees, renewal fees, and of course all of the upfront costs, marketing, and desk fees that a lot of brokerages charge, it could be a while before you actually make a profit.
How a real estate agent gets paid is usually by making a commission when they sell a home. Once you close a transaction they you usually have to split that commission with your broker. Each brokerage is different so it is hard to say what that split is going to be for you. When I started out I was with Berkshire and was on a 60/40 split and they took 7% franchise fee and I had a $21,000 cap. What that means is 60% of the commission check was mine 40% was the brokerages up to $21,000 and an additional 7% of my 60% went to the franchise and there was no cap on that 7%. Once I hit the $21,000 then they just took the 7%.
I switched to eXp Realty where they had no franchise fee and everyone is on an 80/20 split up to 16k cap. Click here to learn more about eXp Realty’s commission. At exp realty, there are no desk fees, no franchise fees and you have the opportunity to earn stock in the company. Click here to find out how much eXp real estate agents actually make.
Once you become a broker you can create your own company or you can be an associate broker for an already existing company. Click here to learn more about brokers vs associate brokers. You have to be a licensed real estate agent for a certain amount of time before you can even get your broker’s license, which means you’ll need to hang your license with a brokerage like eXp Realty.
Advantages to being a full-time real estate agent
You can get ahead of the competition by knowing the market better by being a full-time real estate agent. As a part-time agent, you may miss some of the nuances to what’s going on in the housing market, especially in niche markets, certain neighborhoods, and communities. When you are a full-time real estate agent, you stay up on these a lot better having a clear and distinct knowledge base to help buyers and sellers. As a full-time agent you’ll spend a significant amount of time focusing on market trends, inventory, and local home values as well as when things sell and how they sell. You’ll have a better understanding of the industry, which will gain you more clients and a better salary.
You probably have an easier time picking the right brokerage. Brokers want to know that you are in it to win it. Even if they have to train brand-new agents, training full-time agent means they’re likely to get the value back out of the agent. By putting in a ton of training hours for an agent that might sell one or two houses a year and do it on the weekends when they feel like it, may not be worth it. When your broker knows you are all in, they usually will be all in in backing you.
You’ll have a better schedule. If you are a part-time agent, chances are that means you are a part-time or full-time employee somewhere else. This can be difficult to make listing appointments, schedule showings, and working your day job around a real estate schedule. When you work full time, you are in control of your schedule, the hours you work, and your income and this also means that you can earn as much as you like. Your financial potential can be unlimited.
Related: 100 Things I Wish I’d Known Before Getting Into Real Estate
Do part-time real estate agents make money?
I know part-time real estate agents that make $100,0000 a year, and I know part time agents that make 10k per year. I have worked with 100’s of real estate agents and it always comes down to these factors. What’s your brokerages split? Does your brokerage charge a franchise fee? What does your brokerage have monthly fees? What kind of training does your brokerage offer? Are you willing to work? There is so much that goes into being a real estate agent that making a 100K your first year is hard but with the right training you can do it but chances are, you’re going to be giving that money away in the form of split commissions and transaction fees. By working full time, your income potential is unlimited and once you meet your cap at whatever brokerage you are at like here at eXp Realty it is $16,000, meaning you’ve paid into the brokerage $16k and you then get to keep 100% of your commission. There are very few if any brokerages that actually allow that allow you to keep 100% of your commission once you hit that cap usually they all have some kind of franchise fee.
More: How to Make 100K Your First Year in Real Estate
Is it hard to be a part-time real estate agent?
Being a real estate agent regardless of full-time or part-time is a giant leap of faith and a lot of investment in your time and money. Starting off as part-time might be ideal while hanging onto the steady income of your “day job”. You may not be able to make a full salary by selling real estate part-time. You will need to manage your time, budget, and effort in a variety of different ways even if you don’t have another job.
You want to dedicate at least an hour or two a day for lead generation, stick to your schedule, set clear expectations about your availability to clients, and work with a mentor to help map out your business. Make sure you get proper training even if you’re planning on doing it part-time. You want to build a concierge list of real estate professionals like handymen, appraisers, and inspectors.
More: 20 Questions to Ask When Interviewing Brokerages
How much money does a part-time real estate agent make?
It really depends on how much each agent is willing to put in and what part-time looks for you. Is part-time 20 hours a week or 30? Five hours a week or 10? Real estate truly is one of those industries that the harder and longer you work the more your potential income can grow. But, it’s important to work smarter, not necessarily longer or harder. Having a mentor map out your business plan ahead of time regardless of however many hours you want to work will put you in the right direction and maximize the time that you do work on your business.
What does it mean to be a full-time real estate agent?
I would say there are two things that really matter when it comes to a full-time real estate agent; income potential and knowledge. The longer you’re in real estate the more you learn, the more experiences you have, and the more problem-solving techniques and negotiation strategies you acquire. Plus, the more hours you put in the more earning potential you could gain.
For more information on eXp Realty and how commission splits work, what it’s like to join eXp Realty, eXp Realty Stock Options and fees, and more Part-Time Vs Full-Time Real Estate Agent Contact me below at any time.
More: The Pros and Cons of eXp Realty
