In this post
- Ready to unlock your next career?
- Real Estate Agent Definition
- Residential vs. Commercial Real Estate
- The Real Estate Industry: Downwards Spiral or Positive Outlook?
- Real Estate Industry Statistics
- The Role of a Real Estate Agent
- Do You Have What it Takes to Become a Real Estate Agent?
- Jobs in Real Estate for New Professionals
- How to Become a Real Estate Agent in Australia
- Getting your Real Estate Licence
- Browse The Age of Digital Disruption: Becoming a Real Estate Agent in 2024 Results
The Age of Digital Disruption: Becoming a Real Estate Agent in 2024
Published on July 31, 2020In this post Show
- Ready to unlock your next career?
- Real Estate Agent Definition
- Residential vs. Commercial Real Estate
- The Real Estate Industry: Downwards Spiral or Positive Outlook?
- Real Estate Industry Statistics
- The Role of a Real Estate Agent
- Do You Have What it Takes to Become a Real Estate Agent?
- Jobs in Real Estate for New Professionals
- How to Become a Real Estate Agent in Australia
- Getting your Real Estate Licence
- Browse The Age of Digital Disruption: Becoming a Real Estate Agent in 2024 Results
There’s a little bit of magic in turning houses into homes.
People love the concept of taking a bare-bones house and filling it with laughter, love, and happiness. Houses are the foundation for so many memories. It’s likely you can still remember your own childhood house – maybe not the colours of the walls, or how many meters-squared the living room was, but certainly the games you played, the friends you had over, and the special moments that occurred within it.
Selling real estate is selling the promise of memories. Real estate agents do this every day, and if there’s one thing these competitive professionals agree on, it’s that handing the keys of a house to the people who will make it a home is incredibly rewarding.
What's in this guide?
Becoming a real estate agent is an ideal option if you love houses and people. It’s a career that opens many doors – not just literally. You’ll open the metaphorical doors of uncapped earning potential, choosing your working hours, and deciding the kinds of properties you want to sell.
If you’ve been researching “how to become a real estate agent” online, you already know there’s a lot of repetitive information on how to get into the industry. And they all make it sound so simple, right? However, what they don’t tell you is this grim statistic:
75% of new real estate agents fail in their first year.
But we’re not trying to scare you. The reason it’s a short-lived career for so many people is that they simply aren’t prepared for the challenges of the industry. In order to be in the 25% that succeed, you need to understand how to overcome the adversities, and that’s exactly what this comprehensive guide will help you do.
If you’re serious about becoming a real estate agent and want honest insights to prepare you for an exciting, fast-paced career in real estate, we can answer your questions, including:
- What a real estate agent does in 2022
- How do I become a real estate agent in Australia?
- What challenges are currently faced by the industry, and how do I overcome them?
- Do I have the skills to thrive in this career?
- How much do real estate agents earn?
Buckle up, because we’re about to give you the keys to succeeding in this competitive industry.
Ready to unlock your next career?
In this complete guide we’ll cover:
The real estate industry
Discover how digital disruption is changing the field.
Real estate industry statistics
Discover the average salary, gender and age split, and the overall outlook for real estate.
What does a career in real estate involve?
Learn insights from an industry professional, and see what an agent does on an average day.
Do you have what it takes to become a real estate agent?
Let’s talk skills, resilience, and industry challenges.
Jobs in real estate for new professionals
Any of these three roles will give you a solid foundation for starting in real estate.
How to become a real estate agent in Australia
Learn how to stand out as a job applicant, and how to get the one qualification you need.
Getting your real estate license
Got big dreams for your future in real estate? A license will bring them to life.
Real Estate Agent Definition
A good real estate agent has a vast knowledge of the property market and uses this to guide clients towards the house, land, or workspace most suited to their needs and within their budget.
In Australia, agents can specialise in:
- Residential Sales
- Commercial Sales
- Auctioneering
- Property Management (residential or commercial)
- Buyer or vendor advocacy
- Business Broking
Residential vs. Commercial Real Estate
Residential real estate agents, an agent works closely with their clients to help them find homes. Their clients are often families or individuals, and the agent uses their knowledge of the property market to find places that suit the clients’ wishlist and budget.
Commercial real estate agents, on the other hand, specialise in selling properties like offices, whole apartment complexes, shops, hospitals, and so on. However, a commercial agent is qualified to sell residential as well, so often they’re able to make bigger sales on large properties that a residential agent would not.
Other differences between the two include working hours, whereby commercial agents tend to work standard working hours, while residential agents take more after-hours appointments and are never really “off the clock”. Commercial agents are also expected to have higher qualifications in finance or business, as their work requires an in-depth understanding of these fields, whereas residential doesn’t require as much training or experience.
The Real Estate Industry: Downwards Spiral or Positive Outlook?
Some people would have you believe real estate agents are becoming obsolete. It’s an industry facing some major challenges, many of which have been amplified by the coronavirus pandemic and digital disruption.
Keeping Up with the Digital Transformation
Before the internet, the value of real estate agents was their insider knowledge of real estate listing data. The industry wasn’t very transparent, so people needed agents to help them find and purchase properties.
However, the internet has disrupted that, essentially taking the power away from agents and putting it directly in the hands of potential buyers. While some parts of a real estate agent’s role aren’t so relevant anymore, there are ways professionals – especially new ones – can differentiate themselves and offer new kinds of value to buyers.
Keep up with technological trends
Since about 70% of prospective buyers jump online to browse properties, technologies like VR and AI are becoming increasingly important for agents to understand and utilise in their marketing. Finding ways to get prospective buyers to click on your advertisements online is one of the most important aspects of an agent’s job.
Offer a human experience
With most real estate sales – especially residential – there’s an element of emotion attached for the client. It’s important to show clients you care by taking the time to understand why they’re selling, what’s important to them in the sale process and what you can do to ease their stress or worries. Clients may be highly emotional in certain stages of selling, but by being there for them and supporting them through the process, you’ll have offered unique value.
Stay abreast of market trends and laws
It sounds like an obvious one, but one of the key areas agents can offer value to their clients is through a sound understanding of trends in the market, laws and property values. This kind of research is quite complex and involved for people not well-versed in the area, so your knowledge will help sellers and buyers. This is knowledge you’ll develop through your career, and the ongoing learning element of it requires you to have a passion for real estate.
Real Estate Industry Statistics
$50,568
Average real estate agent salary in australia
Salary Breakdown
There are a lot of conflicting figures floating around. It’s important to note that salaries in real estate vary significantly, often depending on experience, location, and the agency. Since the majority of real estate agent salaries are made up of the commission, the average salary is elevated by the agents who sell many properties and make a lot of commission. This means the pay gap spans between $47,875 and about $250,000 (Indeed’s average for agents located in Queensland).
Data from Indeed estimates a typical taxable income across Australia of $193,916 per year, based on the salaries of 298 real estate professionals as well as job advertisements over the last 36 months. Seek also averages out data from job postings, estimating a typical real estate agent’s salary at $103k.
According to Payscale, full-time real estate agents usually make around $47,875 per year, not including commission.
Industry Statistics
Let’s Talk Commission For Real Estate Agents
Real estate agent commission in Australia is deregulated, meaning agents can set their rates at whatever they like. However, you won’t be able to set yourself 3% commission rates as a new professional – your rates should reflect your experience.
Commission fees differ based on the agent, location, the agency, and whether you’re selling residential or commercial properties. Staying competitive is also important, so you’ll find rates are often based on the state average.
2.04%
VIC
2.02%
NSW
2.59%
QLD
2.42%
WA
2.01%
SA
2.17%
ACT
2.63%
NT
2.87%
TAS
Source: Local Agent Finder
Those percentages might not seem like a lot, but let’s put it in perspective: 2% of $864,000 (Melbourne’s median house price) is $17,280.
In Australia, it’s pretty rare for agents to work solely for commission. The more common practice is a “debit/credit” system of pay, where you bring home a monthly base salary, and any commission you earn exceeding that salary gets added to your paycheck.
This system offers better financial security than a purely commission-based role. However, you’ll still have to work hard at selling properties if you want to keep your earning potential essentially uncapped and bring home a hefty paycheck.
The Role of a Real Estate Agent
Competitive, dynamic, fast-paced, and autonomous are the key adjectives that would describe your career in real estate. No matter what area of real estate you specialise in, your role will require you to be driven and passionate.
Isabel Lambrou has been in residential real estate for four years as a Property/Leasing Consultant. At the age of 18, after just starting a law degree, she took an interest in the field because of conveyancing law. “I thought it would be a great industry to have a background in with relatively entry-level skills,” she says.
“For a lot of people, real estate is a stable career with heaps of opportunity to grow and expand, but for a small segment of the industry, it’s what you would call a ‘stepping stone career’. It’s a great way to develop interpersonal skills that can be translated into other industries.”
In her role, she says her day-to-day responsibilities include taking calls and inquiries, following up with clients and potential tenants, processing applications, and organising inspections.
“Organising inspections involves seeing what needs to be shown, mapping the inspections out, and coordinating times. If I’m showing tenanted properties.
I have to call the tenants and get consent, but that was pre-coronavirus – we can’t do that anymore.
“We can only do private inspections now, taking people in one at a time.”
Isabel says the real estate industry has changed exponentially due to the pandemic causing legislative changes, and this has led to confusion and frustration from property managers and tenants alike. However, despite the added stress in the current environment, she says her passion for helping people pulls her through.
“There’s a large social aspect which I love. Interacting with clients and helping them find properties which are suitable for their needs makes me feel like I’m accomplishing something.”
Regardless of whether your client is a millionaire or a young family, your job in helping them find a home is quite literally life-changing.
Some other tasks real estate agents perform day to day are:
- Evaluating buyers’ needs and finding properties/businesses for them to consider
- Conducting inspections
- Preparing listings for properties and businesses for sale and lease
- Offering valuations and advice
- Instructing vendors of sales and marketing options such as sale by auction and open house inspections
- Liaising with tenants
- Creating and executing business plans, budgets, and practices for the real estate group
- Arranging terms of the settlement
What Does a Career in Real Estate Involve?
Take an in-depth look at what’s involved in this exciting yet competitive career, including daily duties and key knowledge areas.
Real Estate Myths and the Reality for New Professionals
“Since the job requires no experience, anyone can do it.”
This is technically not a myth, since anyone can enter the field as long as they have the correct qualifications. However, about 75% of agents leave the industry in their first year. Luckily, it’s commonly thought that the 75% are people who don’t really have the passion for the industry, meaning if you’re choosing this career for the right reasons, you’re already ahead of the pack.
“It’s easy money.”
There’s definitely money in real estate, but it’s not easy. Especially as a new agent, you’ll have to put in hard work and long hours to make sure you’re securing deals and getting the best price for properties. The glamorous side of the job – think property showings and negotiations – only makes up one part of the job. While the work is tough, the financial incentive is well worth it, especially when it starts to pay off in big sales.
“You can work your own hours.”
Again, technically true. But also, not necessarily a wise idea if you’re starting out in the industry. If you’re a new agent, you’re going to be working harder than experienced professionals to secure sales, and that means you need to put in the time. The average real estate agent works about 46 hours a week, but one in five agents works over 55 hours – that includes weekends. If you’re not prepared to give up your Saturday brunches for a while… well, you might want to find a nine-to-five. At the end of the day, the long hours you put in making your sales that much more rewarding.
Do You Have What it Takes to Become a Real Estate Agent?
The skills of a successful real estate agent are a mix of technical and human-centric skills. It’s not enough to be a good negotiator or salesperson. You need to show you care about your clients if you’re going to get anywhere in the industry.
Good real estate agents have a lot of charisma and know how to use it to keep their clients happy. They’re also great educators – they teach their clients property knowledge and negotiation skills, which allows them to feel in control and build greater trust.
The Skills You Need
Technical Skills
- Negotiation skills
- Time management
- Proactive
- Interest in local knowledge and industry trends
- Ethics and honesty
Human-centric Skills
- Excellent listening skills
- Networking skills
- Take the time to understand why clients are selling/buying
- Great teaching skills
- Tact and empathy
The Skills That Will Make You Stand Out
- Tenacity
- An outgoing personality
- Good attention to detail
- Great communication skills
- Keen interest in research
- High energy
- Strong understanding of technology
7 Valuable Qualities That Make a Great Real Estate Agent
Think you’ve got what it takes to succeed in this fast-paced role? Let’s take a deeper look at the qualities that will set you apart in the industry.
The Challenges Real Estate Agents Face
It’s not all million-dollar listings and champagne from the beginning.
In fact, many experienced real estate agents say starting out will require grit, resilience, and a genuine passion for people and properties. You’ll be working long hours, trying to forge and maintain client relationships, and creating a trustworthy reputation for yourself. And you’ll be juggling all this while getting told “no” on a daily basis.
The rejection-heavy role requires professionals with thick skin and the right amount of tenacity. Think: “I won’t give up, but I won’t push too hard.” It’s actually a fine line to balance, but you have to find it if you want to maintain a healthy client relationship.
Another challenge can be the people aspect of the job, particularly when it comes to managing client emotions and being upfront with them. It’s your job, to be honest with people. No one wants to hear you say their house is worth less than they need, or the property they want is out of their budget, but you have to be upfront and manage their emotions in the fallout.
You’ll need tact and patience to pull this off well, and if you don’t think you can manage that, you’ll find it difficult to keep clients. Luckily, if you’re an empathetic person this should come naturally to you, and if not, it’s definitely a learnable skill. Plus, you can ask for mentorship from experienced agents.
Perhaps the biggest challenge, however, is that it takes time – to start making sales, to build a strong reputation, to define yourself as successful in the industry. It’s something professionals say again and again. It can be demoralising for young professionals.
This is the challenge that trips up a lot of new starters in the industry. But, you have to be persistent even when things don’t seem to be working. If you can maintain your drive – even on your worst days – and push on, you will find the rewards come flooding in.
It’s an industry where persistence and resilience really are the keys to success.
Jobs in Real Estate for New Professionals
If you’re looking to enter the real estate industry, these three roles are ideal for new professionals looking to find their feet.
Administration
- Greeting clients as they walk into the office
- Interpreting and reconciling verbal and physical information flows in the office
- Taking messages
- Sorting mail
- Responding to client emails & phone calls
- Maintaining an efficient filing system for essential documents
Check Out Real Estate Administration Courses
Property Management
- Attending rental inspections and appraisals
- Preparing proposals for landlords
- Undertaking property research and analysis to estimate the selling price of properties
- Filling out client authorities
- Attending property management meetings
- Completing inspection and condition report when a tenant moves in
- Monitoring tenant applications
- Following up with all parties, including landlord and tenants
Check Out Real Estate Property Management Courses
Sales
- Undertaking property research and analysis to estimate the selling price of properties
- Filling out client authorities
- Using a Customer Relationship Management (CRM) database
- Assisting in the development, ordering, and follow up of marketing materials
- Checking properties are online, descriptions and prices are aligned as approved by the Officer in Effective Control and client on the Agency Authority
- Prospecting for clients by phone or in-person
- Property appraisals
- Property sales inspections
- Negotiating
- Exchanging contracts
- Following up with all parties, including the vendor, buyer, and conveyancer
Check Out Real Estate Sales Courses
Source: Connect Skills Institute
How to Become a Real Estate Agent in Australia
In an industry where no experience is required, how do you stand out and actually get a job?
Complete an Agent’s Representative Course
In Australia, the government has strict guidelines for entering the real estate industry as a professional. The first step is to complete an agent’s representative course. There are no prerequisites for it, and once you’ve successfully finished it you’ll be qualified to work in any role within a real estate agency, including administration, property management, and sales.
The units that are offered in these courses and must be completed are:
- CPPDSM4007A – Identify legal and ethical requirements of property management to complete agency work
- CPPDSM4008A – Identify legal and ethical requirements of sales to complete agency work
- CPPDSM4080A – Work in the real estate industry
The only requirement for the course is that you be over 18 years of age.
Build an impressive resume
On average, a recruiter will spend six seconds looking at your resume, so it needs to be a clear, concise record of your skills, and why you’re suited to the job. Even without experience in real estate, make sure you highlight relevant skills you’ve honed from other jobs, such as customer service or sales experience.
The key thing is to make sure you tailor your resume for each job you apply for. Different companies will be looking for slightly different skills and qualities – in fact, 63% of hiring managers want to see resumes tailored to the job they’re advertising. So, don’t expect a generic resume to catch anyone’s eye.
Some things to include in your resume are:
- Contact information
- A personal statement
- Professionals Skills
- Qualifications and education
- Work history
We’ve got a full list of what to put on your resume and how to write it, as well as some downloadable templates.
It’s also in your best interest to include a riveting cover letter. Unlike your resume, which should be a clear, concise factual account of your professional skills and abilities, your cover letter should show a little bit of your personality. It’s a chance to stand out to a hiring team, and to show them why you really want the job. It can mean the difference between having your name shortlisted for an interview or not.
Crafting the perfect cover letter is pretty simple too, plus we’ve got some tips and templates to help you out.
Stand out in Real Estate Job Interviews
As with any job interview, the first thing you need to do – before you even sit down in front of the hiring team – is put on your research hat and learn everything you can about the company you’re interviewing for. Check out their website, find out how they operate, discover their values and company culture, and then think about how you fit into them. Even go to an auction or inspection and look at how the employees act and what they do.
If you can show the interviewer you have a good understanding of the company and can explain why you’ll be a great fit by backing yourself up with your research, you’ll be miles ahead of other applicants already.
But, no matter how strong your pitch is about your company fit, you’ll also have to answer their other questions. Naturally, it can be stressful going into an interview unsure of what questions they might hit you with. But we’ve got a list of the most commonly asked interview questions, with tips on how to answer them.
How to Become a Real Estate Agent
Read job reviews, get salary and trend insights, and discover the skills and qualifications you need to succeed.
Read MoreGetting your Real Estate Licence
Obtaining your real estate licence means you’ll be able to operate your own real estate agency, so if you’re dreaming big, it’s definitely something to keep in mind.
There are a few steps involved in getting your licence.
The first prerequisite is that you must have completed 12 months work experience as an agent’s representative.
Make sure you understand the State requirements of getting a real estate licence – each state has specific education requirements.
You’ll then need to complete the course relevant for your state:
- E.g. A Certificate IV in Property Services (Real Estate), known as CPP40307 for Victoria, or a Certificate IV in Real Estate Practice known as CPP41419 in New South Wales.
- The course must be delivered by a registered training organisation.
After successfully completing the course, you can apply for the licence that applies in your specific state.
The key to this career is in your hand.
As a real estate agent, you’ll be helping people with one of the biggest (and arguably most important) financial transactions of their life.
A career as a real estate agent isn’t a walk in the park. You’ll come up against challenges, rejection and long hours. This lucrative role isn’t for everyone, but if you’ve got the drive and resilience for it, you’ll find rewards you wouldn’t get in any other career. It’s certainly a changing industry, but the role of a real estate agent isn’t dying, and you’ll have many opportunities for career growth.
You could become a qualified real estate agent in a matter of weeks and dive into this unique, exciting industry.
Think you’ve got what it takes?
Browse The Age of Digital Disruption: Becoming a Real Estate Agent in 2024 Results
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