The Age of Digital Disruption: Becoming a Real Estate Agent in 2024

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.

In this complete guide we’ll cover:

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

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.

Real Estate 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.

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
Property/Leasing Consultant
MICM Real Estate

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

Real Estate Myths and the Reality for New Professionals

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

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

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.

Getting 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 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?