What Happens After Earning Your Real Estate License?

Earning a real estate license is a significant milestone, but it’s only the beginning of your career in real estate. After all the coursework, exams, and regulatory hurdles, what happens next? Whether you’re planning to become an agent, broker, or investor, understanding the next steps after obtaining your real estate license is critical.

This guide covers everything you need to know, from choosing a brokerage to building your client base and advancing your career.

Table of Contents

1. Choosing the Right Brokerage

Once you earn your real estate license, the first step is to affiliate with a brokerage. Real estate agents must work under the supervision of a licensed broker, so choosing the right brokerage is crucial for your success. Here are some factors to consider:

Brokerage Size: Larger brokerages often offer more resources, training, and brand recognition, but they may come with less personalized attention. Smaller brokerages might provide more mentorship but with fewer tools and a smaller client base.
Commission Structure: Brokerages have different commission models, typically falling into one of three categories: a traditional split, a desk fee model, or 100% commission. Research each to see which best aligns with your financial goals.
Training and Support: As a new agent, you’ll need ongoing training to succeed. Look for brokerages that offer in-depth onboarding programs, mentorship, and continuing education opportunities.
Company Culture: The brokerage’s environment should match your work style. Whether you prefer a competitive, fast-paced setting or a collaborative, supportive environment, finding a good cultural fit will help you thrive.

2. Completing Post-Licensing Education and Continuing Education

In most states, obtaining your real estate license is only the beginning of your education. Many states require new agents to complete post-licensing education within the first year or two of earning their license. This education covers advanced topics and practical applications that weren’t included in the pre-licensing coursework.

Additionally, real estate agents must complete continuing education (CE) throughout their careers to maintain their licenses. CE requirements vary by state but usually involve a set number of hours every renewal period. These courses help agents stay up-to-date with changes in laws, regulations, and industry trends.

3. Building Your Client Base

Once you’re affiliated with a brokerage, it’s time to start building your client base. As a new agent, you may not have a large network of potential clients, so you’ll need to be proactive in marketing yourself. Here are some strategies to get started:

Leverage Your Sphere of Influence: Reach out to friends, family, and acquaintances to let them know you’re a licensed agent. Offer your services for any real estate needs they may have, and ask for referrals.
Online Marketing: Create a professional website and establish a presence on social media platforms like LinkedIn, Facebook, Instagram, and YouTube. Consistent posting, engaging content, and targeted ads can help attract potential clients.
Networking: Attend local events, join community organizations, and participate in real estate networking groups. Building relationships with other professionals in the industry, such as mortgage brokers, home inspectors, and attorneys, can lead to referrals.
Cold Calling and Door Knocking: Although it may seem old-fashioned, cold calling and door knocking are still effective ways to find clients. Develop a script, target specific neighborhoods, and remain persistent.
Open Houses: Hosting open houses allows you to meet potential buyers and sellers face-to-face. Even if you’re not the listing agent, offering to help other agents in your office with their open houses can lead to new client opportunities.

4. Navigating the First Few Transactions

Your first few transactions can be both exciting and nerve-wracking. Here’s what to expect during your initial deals:

Guidance from Your Broker: Your broker or a mentor within your brokerage will likely guide you through your first transactions. This can include helping you write offers, navigating negotiations, and managing paperwork.
Learning the Transaction Process: Each transaction will involve several key steps, such as listing agreements, buyer consultations, showings, inspections, appraisals, and closings. Familiarize yourself with these processes to ensure smooth transactions for your clients.
Dealing with Challenges: Real estate transactions can be unpredictable. You may encounter challenges such as low appraisals, difficult negotiations, or financing issues. Learning to manage these situations effectively is a critical part of becoming a successful agent.

5. Managing Your Finances

As a real estate agent, you’re essentially running your own business. Managing your finances is crucial to long-term success. Consider the following financial aspects:

Budgeting for Expenses: Real estate agents have various expenses, including licensing fees, MLS dues, marketing costs, and office fees. Creating a budget and sticking to it will help you manage your cash flow, especially in the early stages of your career when income may be inconsistent.
Taxes: As an independent contractor, you’re responsible for paying your own taxes. Set aside a portion of each commission check for federal, state, and local taxes. You may also want to consult with an accountant to ensure you’re taking advantage of any tax deductions available to you.
Saving for Lean Times: Real estate is a cyclical business, and there will be periods of time when deals are harder to come by. Having a financial cushion in place can help you weather these lean times without feeling pressured to take on every potential deal, even if it’s not in your best interest.

6. Developing Your Real Estate Niche

As you gain experience in the industry, you may find that certain types of real estate transactions or clients resonate with you. Developing a niche can help you stand out in a crowded market and build a reputation as an expert. Common niches include:

Luxury Real Estate: Specializing in high-end properties requires knowledge of the luxury market, as well as the ability to cater to affluent clients.
First-Time Homebuyers: Helping first-time buyers navigate the home-buying process can be rewarding, and these clients often refer others to you if they have a positive experience.
Investment Properties: If you have an interest in real estate investing, working with investors to find rental properties, fix-and-flip opportunities, or commercial real estate can be a lucrative niche.
Relocation Services: Assisting clients who are moving to or from your area can be a valuable service. Establishing relationships with corporate relocation companies can help you attract these clients.

7. Leveraging Technology and Tools

The real estate industry is becoming increasingly tech-driven, and agents who leverage technology effectively can stay ahead of the competition. Here are some essential tools and technologies to consider:

Customer Relationship Management (CRM) Software: A CRM system helps you manage your contacts, track leads, and automate follow-ups. This can be especially useful as your client base grows.
Real Estate Listing Platforms: In addition to using the Multiple Listing Service (MLS), platforms like Zillow, Realtor.com, and Redfin allow you to market your listings to a broader audience.
Digital Marketing Tools: From social media schedulers to email marketing platforms, there are a variety of tools that can help you automate your marketing efforts and reach more potential clients.
Virtual Tours and 3D Showings: Offering virtual tours and 3D showings can attract buyers who may not be able to visit a property in person. This is especially useful for out-of-town buyers or during times when in-person showings are limited.
Real Estate Transaction Management Software: Platforms like DocuSign, Dotloop, and TransactionDesk streamline the transaction process by allowing you to manage contracts, signatures, and communications in one place.

8. Continuing to Grow and Advance Your Career

After you’ve established yourself as a successful real estate agent, you may want to explore opportunities for further growth and advancement in your career. Here are some potential paths:

Becoming a Broker: If you want to take on more responsibility and have greater control over your business, consider earning your broker’s license. This allows you to open your own brokerage and hire other agents to work under you.
Specializing in Commercial Real Estate: Transitioning to commercial real estate can be a lucrative move, but it requires a different skill set and knowledge base than residential real estate. Consider taking additional courses or earning certifications to prepare for this transition.
Earning Designations and Certifications: Continuing your education and earning designations, such as Certified Residential Specialist (CRS), Accredited Buyer’s Representative (ABR), or Certified Commercial Investment Member (CCIM), can help you stand out as an expert in your field.
Building a Team: As your business grows, you may find that you need additional support. Building a team of agents, administrative assistants, and marketing professionals can help you manage your workload and scale your business.
Investing in Real Estate: Some agents choose to invest in real estate themselves. Whether you’re interested in rental properties, fix-and-flip opportunities, or commercial real estate, your experience as an agent can give you an edge in the investment market.

Conclusion

Earning your real estate license is just the beginning of your journey in the real estate industry. From choosing the right brokerage and building your client base to navigating transactions and advancing your career, there’s much to learn and do after obtaining your license. By staying informed, continuously learning, and adapting to the ever-changing market, you can build a successful and fulfilling career in real estate.