How to be a realtor agent: The Brutal Truth About the First Year

How to be a realtor agent: The Brutal Truth About the First Year

Everyone thinks it’s all open houses and sunset views from a balcony. You see the shows. You see the staged photos on Instagram with the shiny keys and the "Sold" signs. But honestly? Learning how to be a realtor agent is mostly about managing rejection and navigating a mountain of paperwork that would make an accountant dizzy. Most people quit within the first twenty-four months. That is a real, documented statistic from the National Association of Realtors (NAR). It’s not because the work is impossible, it’s because the gap between "getting a license" and "making a living" is a canyon.

You're basically a small business owner from day one. That’s the first thing you have to wrap your head around. You aren't "getting a job" at a brokerage; you are paying a brokerage for the privilege of hanging your license there.

The Licensing Gauntlet (It’s Boring But Mandatory)

Before you can even think about commissions, you have to pass the state exam. Every state is different. In California, you’re looking at 135 hours of pre-licensing education. In Texas, it’s 180 hours. Florida is a bit more relaxed at 63. You’ll sit in a room—or more likely, stare at a screen—and learn about things like escheat, fiduciary duties, and the Real Estate Settlement Procedures Act (RESPA).

It's dry. It's incredibly dry.

But you have to pass it. Once you do, you’ll take a state-proctored exam. Don’t get cocky. Many people fail the first time because the questions are worded to trick you. They want to make sure you won't accidentally get sued or violate a Fair Housing law. Once you have that piece of paper, the real work starts. This is where most people get stuck because they think the license is the finish line. It’s actually just the starting block.

Picking a Brokerage Without Getting Ripped Off

You cannot work alone. Not at first. You need a "Managing Broker" to supervise your work for the first few years (usually two or three depending on state law). This is where you’ll hear a lot of talk about "splits."

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A 70/30 split means you keep 70% of the commission and the house takes 30%. Sounds simple, right? It isn't. You also have to look at:

  • Desk fees (monthly rent just to have a chair).
  • Franchise fees (often a flat 6% off the top).
  • Marketing costs.
  • Errors and Omissions (E&O) insurance.

Some places like eXp Realty or Keller Williams have very specific cultures and training programs. Others are "boutique" shops where you might get more one-on-one time with the boss. If you’re figuring out how to be a realtor agent who actually survives, don't pick the brokerage with the highest split. Pick the one with the best mentor. A 50/50 split on a closed deal is better than a 100% split on zero deals. Honestly, the mentorship is what keeps you from accidentally committing professional malpractice in your first six months.

The Lead Generation Grime

Where do the clients come from? They don't just walk into the office asking for you. You have to hunt.

Most new agents start with their "Sphere of Influence." This is just a fancy way of saying your friends, family, and the guy who cuts your hair. You have to tell them—repeatedly—that you are now in real estate. It’s awkward. It feels salesy because it is. You’ll probably spend your mornings "cold calling" or "door knocking."

Wait, people still door knock? Yes. It still works in certain neighborhoods, even if it feels like a relic from 1985. You’re looking for "expired listings" (homes that didn't sell) or "FSBOs" (For Sale By Owner). These people are usually frustrated. They might yell at you. You have to be okay with that.

Understanding the "Realtor" vs. "Agent" Distinction

People use these terms like they're the same thing. They aren't. A real estate agent is anyone licensed by the state. A REALTOR® is a member of the National Association of Realtors and agrees to abide by a strict Code of Ethics.

Why bother paying the dues? Access to the MLS (Multiple Listing Service). Without the MLS, you can't see the full data on what’s for sale or what actually sold for what price. You’re flying blind. You also get access to standardized contracts that have been vetted by lawyers. If you try to write your own contract, you're asking for a lawsuit. Stick to the forms.

The Financial Reality Check

You need a "runway." This is the amount of money you have in the bank to live on while you wait for your first check. It usually takes 60 to 90 days to close a deal once you find a client. If you find a buyer today, and it takes 30 days to find them a house, and another 30 to 45 days for the bank to process the loan, you’re looking at three months without pay.

Can you survive six months without a paycheck? If the answer is no, you might want to start part-time, though many brokers discourage this. It’s hard to show a house at 10:00 AM on a Tuesday if you have a 9-to-5 job.

Expenses You Didn't See Coming

  • National/State/Local Dues: Usually $600–$1,000 a year.
  • MLS Access: Often $50–$100 a month.
  • Signage and Lockboxes: These aren't always free.
  • Gas and Car Maintenance: You will live in your car. Your mileage will skyrocket.

Tech Tools That Actually Matter

Don't buy every shiny "lead gen" tool that gets emailed to you. You’ll be bombarded by companies claiming they can give you "guaranteed buyer leads." Most of them are selling you junk data.

Focus on a good CRM (Customer Relationship Management) system. Follow Up Boss or LionDesk are popular. You need a place to put every phone number and email you get. If you don't follow up, you lose the lead. It’s that simple. Most agents fail because they forget to call someone back six months later when that person is actually ready to buy.

Mastering the "Art" of the Showing

Showing a house isn't just opening a door. You’re a detective. You should be looking for water stains on the ceiling, checking the age of the HVAC unit, and noticing if the floors are uneven. Your job is to protect your client, not just sell them a pretty kitchen.

If you're representing a seller, you're a stage manager. You’re telling them to hide the dog bowls and take down the family photos. You have to be honest with them when their house smells like old gym socks. It’s a delicate social dance.

Why Contracts Are the Most Important Part

When you're learning how to be a realtor agent, you’ll spend a lot of time on "marketing," but the money is made in the contracts. You need to know the "inspection contingency" inside and out. You need to know exactly how many days your buyer has to get their appraisal done before they lose their earnest money.

If you miss a deadline, it’s your fault. Your client could lose thousands of dollars because you forgot it was a bank holiday. This is where the stress comes from. It's high-stakes legal paperwork disguised as a sales job.

Handling the Emotional Rollercoaster

You will have deals fall apart at the very last second. A buyer might lose their job the day before closing. An inspection might reveal a cracked foundation. A seller might just change their mind because they're sentimental.

You have to be the calmest person in the room. If you freak out, your client freaks out. You become a therapist, a negotiator, and a project manager all at once. It’s exhausting, but when you finally hand over those keys, it’s a massive rush. That’s the "why" that keeps people in the industry.


Actionable Steps to Start Today

  1. Check your state's specific requirements. Go to your state’s Real Estate Commission website. Don't rely on third-party blogs; get the primary source info on how many hours you need.
  2. Interview three different brokerages. Don't sign with the first one that offers you a desk. Ask about their training for new agents specifically. Ask to speak to someone who joined a year ago.
  3. Audit your finances. Total up your monthly bills and multiply by six. That is your "survival fund." If you don't have it, start saving now before you quit your day job.
  4. Clean up your social media. People will Google you the second you send them a business card. Make sure you look like someone who can be trusted with a $500,000 transaction.
  5. Study your local market. Start looking at Zillow or Redfin every single day. Look at what’s selling and how long it’s sitting on the market. Become an expert on your own neighborhood before you even have your license.