Real Estate — a career often associated with entrepreneurialism — can seem daunting for newbies. That’s why Redfin created a career acceleration program for real estate agents.
Redfin, wanting to take a step further, created an agent acceleration program launching in Seattle and Washington, D. C. metro areas. Some 50 new-to-the-business agents will receive training, mentoring, a $1,500 signing bonus, health insurance and paid leave through the accelerator program. Redfin has a business model that pays real estate agents a salary.
Real estate is an expensive business and not everyone has the capital to begin. Many expenses go into being a licensed broker. According to the National Association of Realtors, the largest expense category for most Realtors is for vehicles at around $1,200 a year. Training can cost upwards of $500 or more a year. Plus, there are marketing expenses and advertising expenses to consider. That’s why many brokerages are turning to real estate training programs to get new agents up and running. An acceleration program can give agents the training and help they need to be successful.
According to Relitix’s Founder Rob Keefe, new agents are going to take a while to get paid. How long? The statistics suggest that the first dollars won’t come in for three to four months, and it could take a couple of years to make a steady income. Brokers should make sure new agents are aware of the realistic timeline and have the savings or outside income to support themselves during this transition period.
He says, “Expect steady attrition of agents from the business. Nearly 20% of all real estate licensees will exit the business every year. Newer agents and low-producing agents will leave at higher rates. Factor this into your recruiting and retention planning.”
Senior director of real estate operations Kathryn Rion understands most new agents can burn out their wallets quickly.
“Many people who want to pursue a real estate career are dissuaded by the start-up costs, financial insecurity, lack of benefits, and sink or swim mentality that is common in the industry,” she said.
Participants will have until the end of October to complete their licensing coursework and pass the licensing exam. Once licensed, members will start in November as full-time real estate agents with Redfin and receive the signing bonus to cover the early expenses.