Phase 1: Legal & Brokerage Onboarding

Before you can even think about showing a house, you have some administrative mud to wade through. The most critical decision you'll make right now is choosing a brokerage. It’s tempting to look purely at the commission splits, but as a rookie, you should be prioritizing training and mentorship. A 100% split of zero transactions is still zero dollars. Look for a broker who offers the support you need to write your first contract with confidence.

Once you’ve signed the independent contractor agreement, you need to activate your license with the state commission immediately. This usually happens in tandem with joining your local board of Realtors. When you join the local board, you also automatically join the state association and the National Association of Realtors (NAR). This isn't optional if you want access to the Multiple Listing Service (MLS), which is the lifeblood of your daily operations.

• Interview multiple brokerages: Ask about mentorship programs, not just splits.

• Pay your dues: Expect to drop $500 to $1,000 upfront for board and MLS fees.

• Get access: Secure your login credentials for the MLS and any broker-specific portals.

Phase 2: Financial Business Setup

Welcome to the world of being a 1099 independent contractor. Unlike a W 2 job, nobody is withholding taxes for you, and your "paycheck" only comes when you close a deal. The biggest mistake I see new agents make is commingling funds. You need to head to the bank and open a dedicated business checking account. Every commission check goes in there, and you pay yourself a salary from it.

From that business account, you need to be disciplined about taxes. A good rule of thumb is to instantly move 25 to 30% of every commission check into a separate "tax bucket" savings account that you do not touch until quarterly estimates are due. You also need to map out a 12-month budget. You are essentially a startup, and startup costs in real estate, like marketing, gas, and dues, can easily run $1,500 to $2,000 or more in your first few months before you see a dime of income.

• Protect yourself: Purchase Errors & Omissions (E&O) insurance if your brokerage doesn't fully cover it.

• Track everything: Use an app or spreadsheet to log every mile you drive for work.

• Run lean: Audit your personal expenses so you know exactly what your "survival number" is while you build your pipeline.

Phase 3: Essential Tech & Hardware

You don't need the flashiest gadgets to succeed, but you do need reliable tools that make you look professional. At a bare minimum, you need a functioning laptop and a smartphone with a high-quality camera. You will be living in your car a lot, so having a mobile office setup is crucial. You’ll also need to get an electronic lockbox key, like a Supra eKey, from your local board so you can actually access homes for showings.

On the software side, get organized immediately. You might think you can manage your contacts in your phone's address book, but that won't scale. Research the top real estate CRMs and pick one that fits your budget. This is where your business lives. Pair that with a professional email address, ideally a Google Workspace domain rather than a generic Gmail account, and cloud storage so you can pull up contracts from your phone while standing in a driveway.

Phase 4: Branding & Marketing Assets

Now that you are operational, you need to let the world know you are open for business. Your visual identity is often the first handshake you have with a potential client. Start by investing in professional headshots. No selfies, and no cropping your spouse out of a wedding photo. A clean, professional photo builds immediate trust.

Next, draft an agent bio that focuses on your Unique Value Proposition (UVP). Don't just say you love houses; explain why you are the best person to help a buyer or seller navigate this specific market. Once you have your assets, claim and verify your Google Business Profile. In 2026, local SEO is non-negotiable, and having a verified profile ensures you show up when people search for agents in your area.

• Print materials: Order business cards and at least a few "Open House" signs.

• Social setup: Create dedicated business pages on LinkedIn, Facebook, and Instagram.

• Digital footprint: Ensure your bio and headshot are consistent across Zillow, Realtor.com, and your brokerage site.

Phase 5: Lead Generation Strategy

You have the license and the logo, but now you need clients. For most new agents, the "Sphere of Influence" (SOI) is the absolute best source of business. This is simply a list of everyone you know, family, friends, former coworkers, and neighbors. Your first job is building your sphere of influence database and letting them know you are now in real estate. Send a formal "New Agent Announcement" letter or email, but keep it personal, not salesy.

If your pipeline is empty, borrowing inventory is a smart play. Ask busy agents in your office if you can host their open houses. It gets you face-to-face with active buyers without needing your own listing. Also, commit to time blocking. Set aside 1 to 2 hours every single morning specifically for prospecting. If you don't schedule it, it won't happen.

Phase 6: Education & Contract Mastery

Confidence comes from competence. Nothing destroys a deal faster than an agent who doesn't understand the contract they are asking a client to sign. Before you ever work with a buyer, print out every standard contract, addendum, and disclosure used in your market. Read them blank to blank. You need to know what happens if the financing falls through or what the inspection contingency actually covers.

While you are learning the paperwork, immerse yourself in the market data. Study the inventory levels and average price points in your focus neighborhoods. When a client asks, "How's the market?", you shouldn't just say "Good." You should be able to quote the average days on market or list to sale ratios. This data mastery is what separates the pros from the hobbyists.

FAQs

What is the very first thing a new real estate agent should do?

Your priority is interviewing and selecting a sponsoring broker. You cannot legally activate your license or solicit business until you are hung with a brokerage, so finding the right fit for training and support comes before ordering business cards.

How much money should a new real estate agent save for startup costs?

It is smart to have at least 6 months of living expenses saved, plus about $2,000 for immediate business startup fees. Dues, insurance, and marketing costs hit your bank account long before your first commission check does.

Do I need a CRM immediately as a new agent?

Yes, using a CRM from day one prevents your database from becoming a chaotic mess. It allows you to automate follow ups and track details about your leads, ensuring no potential client slips through the cracks.

How do I get my first client as a new real estate agent?

Focus on your existing relationships by announcing your new career to your friends and family. Simultaneously, host open houses for other agents to meet active buyers who are currently looking in the market.