You want to become a real estate agent, but you don't like the financial risk involved.
When you go "all-in" on becoming a real estate agent, you put yourself at losing a lot of money. Whether it's investing in the start-up costs to get a license, investing in marketing material, or just paying rent, there's a ton of expenses in the industry and your paychecks could be few a far between.
Some people have all the luck. They have a nice little nest egg and are able to transition full time into being a real estate agent. Those people are able to sustain themselves for the coming months – no problem.
But you on the other hand, not so much. You might have a small saving (or none at all!) and you will might not be able to afford the financial risk involved. I get it!
Lucky for you, there's a solution that thousands of people rely on to become a real estate agent. This guarantees a steady flow of income while pursuing your career as an agent.
It's called: becoming a part time real estate agent. Yes, it's possible to do real estate part time! This article will show you how to become a part time real estate agent and give you insights on how you can earn like a full time agent.
But, first, let's talk about whether or not becoming a part time agent is right for you.
Should You Become a Part Time Real Estate Agent?
Becoming a part time real estate agent isn't right for everyone. There's a few things that all part time agents must commit to. Such as:
- Being responsive to their client
- Making time to run open houses for their client
- Perform walkthroughs when your client wants
- Put your client above other priorities
Often times, working 20-hours a week isn't the hard part for part time agents. The hard part is being available and prioritizing your client above all else. They are making their biggest investment and want someone who will make them #1.
How you would feel if you were buying a house and your agent kept telling you they can't make it the home tour because they're working their other job? Exactly.
That's why it's important to know that hours invested is easy. It's hours available that's hard. This is why most people end up becoming a referral agent.
What is a Referral Agent
A simple alternative to the active life of an agent, referral agents work on referrals only. They refer a client to another agent and collect a small percentage of the commission in return.
Referral agents can let the leads come to them.
If they have a friend, family member, or an acquaintance looking to buy or sell a home, the referral agent can recommend them to their business partner.
Their business partner will do all the heavy lifting and give you a small percentage of the paycheck. Easy!
There's also a secret perk that nobody ever tells you about referral agents.
The Secret Perk That Referral Agents Have
Referral agents have less license fees and costs. What this means is that referral agents can let their license become "inactive" and still make commission from the referral. This makes becoming a referral agent much more cost effective than traditional agents.
You can work your full time job and, when a lead comes your way, it's an easy paycheck. Just make sure you partner with someone who you can trust.
How to Be a Part Time Real Estate Agent
To become a part time real estate agent, you have to fulfill the Department of Real Estate’s requirements.
This goes for people who want a side income, to get referral fees, or to collect commission from representing themselves.
In other words, you have to get a license and sign with a brokerage.
How to Get Your Real Estate License
To become an agent or referral agent, you need a real estate license.
You become a legitimate, legal agent when you receive your license. This shows everyone that you have the training to represent them in a transaction.
So, if you work part time, want a new side hustle, or want to get a referral fee, you need a real estate license.
Here’s how you get your real estate license:
- Enroll in an accredited real estate school
- Collect your 3 course completion certificates
- Pass the state exam
That’s it!
The Department of Real Estate mails your real estate license to your home address after you pass the exam.
That last thing you need to do is sign with a real estate brokerage.
How to Sign with a Brokerage as a Part Time Real Estate Agent
The real estate brokerage is your workplace hub. This is where you get training, legal resources, and even your morning joe.
Brokerages give you resources because they invest in you.
So, telling them your intention is vital during the brokerage interview. This is where you tell them why you want to become a real estate agent.
Becoming a part time agent looks different for everyone. That’s why you should tell them that you want to be one of the following:
- Permanent part time real estate agent
- Start part time and transition to full time
- Referral agent who only does referrals part time
- Part time side hustle to get another revenue stream
- You are an investor and you want to self represent
A good brokerage accepts you. So, if at first you don’t find one, don’t give up hope!
How to Sell Real Estate Part Time
Now comes the hard part. How do you sell real estate part time?
Selling real estate in a part time worker’s hours is a challenge. You balance and track many moving pieces during your job. 20-hours will go by faster than you realize.
With a structure change and priority realignment, you can balance the job. Here’s how you can sell real estate part time:
- Focus on lead generation
- Practice time management
- Prioritize quality over quantity
When you work part time, you should aim to make the most of what you have. Let’s see how this is possible.
#1 Focus on Lead Generation
The bulk of your work lies in lead generation. This is the core of your job as a part time real estate agent.
Without generating new leads for your business, people won’t know about your service and you will have no new clients.
So, when you focus on lead generation, you spend more time creating business for yourself. Ultimately, that leads to more commission checks.
You should spend the majority of your hours finding new clients. When you start earning more clients, you should still find time to lead generate.
But, be aware of your other responsibilities.
That’s how we get into…
#2 Practice Time Management
Time management is an art.
Knowing where to focus your time and for how long is a skill that even long term agents have a hard time mastering.
During your week, be realistic with your goals and how you manage your time.
The best way to manage your time is with calendars and to-do lists. This helps you identify what needs completing and when.
When you work with clients, you do paperwork, follow-up calls, commuting, home prepping and so much more. So, creating time for each task during the week is important.
For you, time is a limitation. 20-hours isn’t much to work with. That’s why you have to be intentional with your time investment.
#3 Prioritize Quality over Quantity
For most real estate agents, focusing on quantity is a great strategy. That’s the case for part time agents too–especially for lead generating.
But, when you work, prioritize quality hours as opposed to quantity hours.
In other words, don’t dilly-dally.
How you spend your time is vital to your success. Focus on the quality leads, the quality clients, and the quality real estate.
Therein lies the key to your success.
When you have limited hours, you need to use it wisely.
#4 Prioritize Your Client First
As a part time real estate agent, you will need to figure out how to create a day-to-day schedule that lets you be flexible. The reason why is because you will want to work when your client is available.
As mentioned earlier, if you're working your first job or you're traveling when your client wants to tour a house, they will feel disrespected and second rate.
This is why you need to hone in on your schedule. Full time agents have flexibility to drop everything and help their client. Part time agents need to be able to do the same.
People who become a part time agent will do it for their family, friends, or for themselves. This way, they have more flexibility with their client and their own time. Don't forget to prioritize your client, it could cost you the sale!
How Much Do Part Time Real Estate Agents Make?
Now, you might be wondering if working as a part time real estate agent is worth it.
If you’re going to work hard in a short period of time, is your time investment worth the compensation?
That’s a great question.
How much you make depends on how much you sell.
How Do Real Estate Agents Get Paid?
Real estate agents get paid a percentage of the amount of final sale price. Typically that percentage is 3%.
The brokerage splits this 3% with the agent 60/40.
So, to keep it simple, let’s say a part time real estate agent closed a deal on a $1,000,000 house. The brokerage will cut that agent a commission check for $18,000.
That’s pretty good money for a part time job. It’s even better if being a real estate agent is your side income job.
A real estate license is your opportunity to get a big check when the opportunity arises.
In other words, you can choose to be an agent when you want. If you want to represent when you have a friend or family member searching for a new home, you can.
You can work a full time job and only represent people in your immediate network.
How Much Do Referral Agents Make?
Some part time agents only refer clients to other real estate agents.
They spend their time lead generating and passing the nitty gritty to someone else.
In return, they get a small percentage of the other agent’s commission check. That percentage is between 20-25%.
Let’s look at our previous example’s commission. If a referral agent recommended that agent to their client, the referral agent made $3,600-$4,500.
That’s pretty good for finding one client.
Some part time real estate agents want to only prospect. By doing so, they can still make a great commission check.
Is it Hard to Be a Part Time Real Estate Agent?
Becoming a part time real estate agent isn’t easy.
Being a real estate agent is like running your own business. So, when you work part time, you run a business part time.
Let’s look at how hard it is to make a part time job in real estate work.
Is Being a Real Estate Agent a Good Side Job?
As a part time real estate agent, your job consists of lead generating. That’s how you draw in business.
A prime method of generating new clients is through your sphere of influence.
This is where most part time agents start. They either know someone or know someone who knows someone who is buying or selling property.
When the connection happens, you are one warm meeting from your new client.
Some part time agents will only work within their sphere of influence. So, they could work a full time job while they keep their real estate license in their back pocket. Then, when they hear a friend or family member wants to buy or sell, they can lend a hand.
This passive method of lead generating works for you.
Final Thoughts on Becoming a Part Time Real Estate Agent
Cracking the code on working part time as a real estate agent is tricky. It requires flexibility and prioritizing your client. But, if you're able to figure out a schedule and routine that works for you, you'll be able to work less and earn more than most other agents.
Remember to focus your time on what works and what will lead you to the next paycheck. There's a lot of unimportant tasks that can make us feel productive, but contribute little to our overall business.
If all else fails, shorten the sphere of people you work with to friends, family, and yourself. At the end of the day, you can always fall back on becoming a referral agent.
