Can I start my real estate career as a part-time agent?

Perhaps the first quandary that we face in looking at this question is to define what it means to be a part-time agent. The National Association of Realtors, at one time, defined a part-time agent as someone who worked less than 20 hours per week. Some brokers define part-time agents by some minimum income standard. For practical purposes let’s assume that being a part-time agent in real estate means that you are gainfully employed full-time somewhere else in a non real estate occupation. When you're not working at your full-time job (i.e. nights and weekends) you will while away your spare time dabbling in the profession of real estate.

However you define the term “part-time agent” the reality is that working less than full-time will make your success in this industry much more difficult. Full-time agency means that “this is what you do for a living.” You are a professional real estate salesperson, employed by a broker, assisting buyers and sellers reaching their real estate goals.

Let me share with you some of the facts of life with regard to the real estate profession:

1. The gap between part-time and full-time agents is getting wider and wider. The start-up costs to enter the real estate profession are much higher today than they have ever been! Licensing requirements, including the costs of pre-licensing and post-licensing courses, are escalating. Entry fees for the local Board of Realtors and participation on the MLS can be staggering

2. While we have been experiencing a boom in the real estate industry of late, the reality is that there are more and more real estate people available to assist those buyers and sellers that are currently in the market. Consequently, this makes it much more difficult for the part-time agent.

3. While the educational requirements to enter the real estate profession have not suffered a dramatic change over the years, the educational and professional expertise has changed considerably. It is not unusual for experienced, seasoned agents to have a number of designations on their business card. More and more clients are expecting to do business with those agents who have taken the time to the further education within the profession. As such, part-time agents usually are not taking the time or spending the money necessary to achieve those designations.

4. The public is demanding more and more from their agent. They want a higher-quality agent than ever before. Clients are looking at resumes and testimonial letters as they review the qualifications of their perspective choices. Candidly, why would a client pay a full fee for only part-time representation? Wouldn't you expect a full-time agent when you're paying a full commission?

5. Lastly, there are fewer and fewer brokerage firms that are willing to hire a part-time agent because the costs of doing business are increasing. Operational costs such as ground rent, telephone charges, Internet fees, utilities, advertising… as well as costs associated with legal protections, errors and omissions insurance premiums, etc. demand that the broker seek out and affiliate full-time agents.

Let's also take a look at the perspective of part-time agent from different situations.

1. You're at your other job and diligently engrossed in a major project when you receive a telephone call from the buyer client you met this past weekend. He is very interested in seeing a property that has just gone on the market. He’s lost out on a couple of other properties and so he is very anxious to have his offer written up immediately and presented as soon as possible. But, it's only 1:15 p.m. and you have to stay at the office until at least 5:30 p.m. What will you do?

2. An offer to purchase is ready to be presented to your seller. The buyer's agent would like you to present the offer immediately. Your seller is quite anxious to get the house sold. Everyone would like to meet at 7 p.m. but, your supervisor has just informed you that you must work till 9:30 p.m. that evening. There is no one else who can cover your shift. Is this the quality of representation that you want to provide your client? I hope not!

3. As a part-time sales associate how will you ever generate enough prospects to earn sufficient income in the first few months of your new career to facilitate your transition from part-time to full-time agent?

4. As a part-time sales associate how will you build the relationships within the office and real estate community that are necessary ingredients of marketing your listings? When will you go on the property tours that are required to build a working knowledge of the available inventory?

There are no easy solutions to this dilemma; should I go full-time or can I ease into the profession as a part-time agent. Although in no way a perfect answer to the question, I suggest your consideration of the following possibilities:

1. Jump head-first into the sales arena! Don't look back! Just do it! This is perhaps the most radical solution imaginable, but it does work for many people. Often the difficulty of getting into the business… is getting into the business! Clearly however, you must have sufficient capital in the bank and emotional support from your family and friends to make this transition successful.

2. Perhaps the less stressful way to enter the profession might be to consider working a second job (non real estate) that pays a salary or hourly wage and then banking that income until you have a sufficient sum set aside to finance your entry into the profession as a full-time agent.

3. Consider putting your real estate license into our referral network. Refer to your buyer and seller prospects/clients to another agent and earn a referral fee for making a simple phone call! While you are working on building up your client base you can set aside some funds (see option #2 above) or put those earned referral fees in the bank to aid you in your ultimate goal of becoming a full-time agent. Once you have sufficient funds and/or a large enough client base established, you can easily make the move to the big-league!