Can You Be a Part-Time Real Estate Agent?

Can You Be a Part-Time Real Estate Agent?

October 10, 2019

6 Minute Read

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Transitioning into a career as a real estate agent can be daunting — most new agents don't actually receive a paycheck until they close a sale. To help keep themselves financially stable, many people start out as a part-time real estate agent and keep another part-time job to ensure a steady income. 

Whether you're looking into real estate as a side job or are launching a part-time real estate career before jumping all the way in, there are certain challenges you should consider before you start. Our director of industry outreach, Bret Calltharp, spent years training real estate agents and has plenty of experience with part-time agents. 'It's not uncommon for someone to begin their real estate career as a part-time agent while still working another job,” he says. “Likewise, many full-time agents pull back to part time when they're headed toward retirement.'

How to become a part-time real estate agent

Requirements for being a real estate agent part time are the same as the requirements for full-time agents. While state requirements vary, you will generally have to:

  • Meet your state's licensing requirements
  • Complete real estate prelicensing courses
  • Pass your state's real estate license exam
  • Submit a real estate license application
  • Create a real estate marketing plan
  • Build your network of connections and referrals

Some states may require you to work under a licensed broker to gain experience and an understanding of the industry before you’re allowed to branch out on your own. With a broker, you'll have access to mentors, training and an office with the tools and marketing materials you need to succeed.

Do brokers hire part-time real estate agents?

It varies by brokerage and depends on their business model, but Bret has seen many brokers work with part-time agents. 'Some will happily take on newbies and part-timers, while others will only work with experienced, full-time real estate agents,' he says.

Since brokers have to train new agents, which can be time-intensive and costly, they're sometimes more hesitant to invest in part-time real estate agents. To improve your chances of getting hired, start your search early on in your prelicensing process. Don't be afraid to ask around to find out which is the best real estate brokerage for part-time agents. You may find that a smaller, independent brokerage is more willing to take on a part-time agent than a nationally recognized franchise.

How much do part-time real estate agents make?

Just like full-time agents, there's no salary for part-time real estate agents. Real estate agents earn commissions when they close a sale or when they refer someone who closes a sale. Most real estate agents earn a commission of 2.5% to 3% on each sale, and 25% of the commission on a referred sale. The referred commission is negotiable, however, and can vary depending on the situation. 

Referring clients to other agents is a popular source of income for part-time real estate agents, because it's less time-intensive than representing clients. Bret recommends working to build your sphere of influence, which in turn will help you get referrals. 'You can usually make some decent money as a part-time real estate agent through referrals and the occasional deal where you actually represent the client,' he says.

How to calculate income when selling real estate part time

To calculate your expected annual salary, you can multiply your average income per sale (or referral) by your expected number of sales (or referrals) for the year. For example, if you sell two houses at an average price of $500,000 each and earn a 3% commission on them, you'll earn $15,000 per house and have a gross income of $30,000. If you refer five clients to other agents, and those clients each buy $500,000 homes and you get 25% of the agent's standard 3% commission, you'll earn $3,750 per client and have a gross income of $18,750.

You can use our Home Values tool to determine the median home value in your market.

How to be a successful part-time real estate agent

A part-time real estate agent typically spends less than 30 hours per week on the job. You'll be competing against those who work 40, 50 or even 60-plus hours a week. To become a successful part-time real estate agent, consider:

  1. Creating a monthly business plan
  2. Using a customer relationship management (CRM) tool to segment your leads
  3. Establishing a block schedule to stay on track
  4. Continuing to educate yourself about the real estate market, tools and laws
  5. Finding a mentor or training program
  6. Building a strong referral network by connecting with other agents
  7. Budgeting your expenses for the year
  8. Marketing yourself online and off
  9. Setting clear expectations upfront about your availability
  10. Establishing effective communication with your clients

'I've seen agents be successful in many different ways,' says Bret. 'However, consumers have lots of options for real estate agents, and many choose to work with the agent who has the best availability throughout the week.'

There are benefits and disadvantages to being a part-time real estate agent instead of a full-time agent. While real estate as a whole allows a flexible work-life balance, the job can often be more demanding than anticipated. Weigh these pros and cons to help determine if being a real estate agent part time is right for you.

Pros of doing real estate part time

You'll receive additional income. If you're working real estate part time as a side job, it can be a good way to supplement your regular income.

You'll gain experience in the industry. Working real estate part time will allow you to learn from other real estate agents, which can help you determine if you want to start doing it as a full-time job.

You'll build new connections. You'll not only connect with clients, but also other agents and local businesses. By expanding your sphere of influence, you're also broadening your social circle.

Cons of doing real estate part time

You'll have upfront expenses. To pursue a part-time real estate career, you'll need to cover the costs of licensing, education and training, advertising, marketing and even transportation. 

You'll have steep competition. As more and more people become licensed real estate agents, buyers and sellers can choose to be picky about whom they hire. According to the Zillow Group Consumer Housing Trends Report 2018, 47% of first-time sellers consider multiple agents.

You'll have time constraints. Working fewer business hours can make it difficult to meet clients at their preferred times — and even to respond quickly. We found that 81% of sellers and 80% of buyers rate an agent's responsiveness as a very important characteristic.

Considering becoming a full-time real estate agent? Zillow Premier Agents have access to tools to convert leads, like a professional website and CRM, as well as exclusive branding and insights into the homes your connections have viewed and saved on Zillow.

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