FREE APPRAISAL

04 801 8550

8 Kent Terrace, Mount Victoria

office@loweandco.nz

How to become a real estate agent?

30 May 2024

How to become a real estate agent?

The New Zealand property market is a dynamic and exciting space, and a career as a real estate agent can be both rewarding and lucrative. But before you dive in, it's important to understand the qualifications, experience, and skills required to be successful in this field. This guide will walk you through everything involved in becoming a licensed real estate agent in New Zealand.

What is Involved in Becoming a Real Estate Agent?

 Role of a Real Estate Agent

Responsibilities and Daily Activities

Real estate agents act as mediator between buyers and sellers of property. Their responsibilities range across a wide range of tasks, including but not limited to:

  • Marketing and Listing Properties: This involves creating compelling property descriptions, sourcing high-quality photos, and conducting open homes.
  • Negotiating Deals: Real estate agents act as advocates for their clients, ensuring they get the best possible outcome in negotiations.
  • Market Analysis and Research: Understanding property trends and valuations is crucial for effective pricing and marketing strategies.
  • Client Communication and Management: Building rapport and trust with clients is essential. This involves keeping them informed throughout the process, addressing their concerns, and exceeding their expectations.

 

Key Skills of Real Estate Agents

Success in this field requires a unique blend of skills. Here are some of the most important:

  • Communication and Negotiation: The ability to clearly articulate information, actively listen to clients, and negotiate effectively is paramount.
  • Sales and Marketing: Understanding marketing principles and employing effective sales techniques is crucial for attracting buyers and sellers.
  • Interpersonal Skills: Building strong relationships and fostering trust with clients is key.
  • Problem-Solving and Resourcefulness: Real estate transactions can be complex, requiring adaptability and resourcefulness to overcome challenges.
  • Time Management and Organisation: Juggling multiple clients, deadlines, and property viewings demands excellent organisational skills.

Requirements for Real Estate Agents in New Zealand

It's important to remember that while qualifications and licenses may seem like hurdles, they are essential safeguards for both you and your future clients. The thought of selling properties privately without a licence can be tempting. However, the risks involved can be significant. Unlicensed sellers may miss critical steps in the legal and disclosure processes, potentially leading to costly delays or even legal challenges. Effectively marketing the property also requires a deep understanding of the local market and the ability to attract qualified buyers. The decision to become a licensed real estate agent is an investment in your professional development and your clients' security.

Qualifications and Certifications

To become a licensed real estate agent in New Zealand, you'll need to complete a formal qualification. The minimum requirement is the New Zealand Certificate in Real Estate (Salesperson) (Level 4). This program can be obtained through various tertiary institutions, such as polytechnics and private training providers.

Getting Licensed as a Real Estate Agent

The Licensing Process

The Licensing Process

Once you've completed the necessary qualification, you can apply for a salesperson's license from the Real Estate Authority (REA) [REA New Zealand]. This process involves meeting specific criteria, including:

  • Being over 18 years old
  • Passing a criminal history check
  • Having a valid driver's license
  • Completing a professional practice course approved by the REA

Costs and Timeframe for Obtaining a Real Estate Licence

The cost of obtaining your real estate qualification and license can vary depending on the institution you choose. Generally, you can expect to invest around $1100 to complete your Salesperson License. The timeframe for obtaining your license will also depend on your chosen course structure, typically ranging from 12 to 18 months.

Gaining Industry Experience

Importance of Hands-on Experience

While qualifications and licenses are essential, gaining hands-on experience is equally as important. Most real estate agencies require new agents to work under the supervision of a licensed agent for a minimum of three years. This allows you to develop your skills, learn the ropes of the industry, and build a network of contacts.

How Much do Real Estate Agents Make?

Real estate agents typically work on commission and there is no guarantee of income. Commissions can vary depending on the property value and the agency's commission structure. Real estate agents in New Zealand can range anywhere from $50,000 to $150,000 per year. However, it's important to remember that income can fluctuate depending on market conditions and individual performance.

How Many Houses Does an Average Real Estate Agent Sell?

The number of houses an agent sells can vary greatly depending on factors such as experience, location, market conditions, and workload. Industry benchmarks suggest that a successful real estate agent in New Zealand might typically sell anywhere from 10 to 20 properties per year.

What makes the Best Real Estate Agent?

Qualities of a Top Performer

Beyond qualifications and experience, the most successful real estate agents share some key characteristics:

  • Passion for the Industry: A genuine enthusiasm for the property market and a desire to help clients achieve their real estate goals is a powerful motivator.
  • Market Knowledge: Staying informed about market trends, local demographics, and property valuations is essential for providing sound advice to clients.
  • Strong Work Ethic: The real estate industry can be demanding, requiring long hours, consistent hustle, and the ability to manage multiple priorities simultaneously. Successful agents are self-motivated, proactive, and possess the drive to go the extra mile for their clients. They understand that success comes from dedication and consistent effort.

So, if you're driven, possess excellent communication and interpersonal skills, and have a passion for the property market, a career as a real estate agent in New Zealand could be a fulfilling and rewarding path. Remember, success requires dedication, ongoing learning, and a commitment to exceeding client expectations. By investing in the necessary qualifications, gaining valuable experience, and honing your skills, you can position yourself for a thriving career in this dynamic industry.

For those interested in taking the first step, our team at Lowe and Co are always happy to connect with potential future real estate agents who share our passion for the industry. We can provide valuable insights and guidance on navigating the licensing process and launching a successful real estate career.

If you are interested in starting a career in real estate do not hesitate to contact us on office@loweandco.nz.

RECOMMENDED READS

What is a Reserve Mortgage?
Traditionally, mortgages involve borrowing money to purchase a property, with repayments made over...
Read more
Why it's critical to think outside the square?
In real estate, following the herd can lead to less than stellar decision-making. The term...
Read more
How High Will Interest Rates Go?
What Are Interest Rates? When you borrow money from a bank, financial institution or other type of...
Read more