Introduction

The real estate market is ever-changing, and 2025 is poised to bring new opportunities and challenges. For real estate agents, navigating this landscape successfully requires preparation, focus, and adaptability. In a recent podcast, Justin Stoddard and Stephanie Peck sat down with real estate expert Briggs Elwell, who shared invaluable advice on how agents can overcome common obstacles and position themselves for success. From establishing strong business foundations to adopting an advisory role, this blog covers actionable strategies to ensure your best year yet.

1. Laying the Foundation: Start with Proper Planning

One of the most critical steps for any real estate agent is setting up the right foundation for their business. Unlike traditional employment, agents operate as independent contractors, meaning they are solely responsible for their business operations. Elwell emphasizes two key areas to address from the outset:

• Establish Legal and Tax Structures:
  As an independent contractor, it’s vital to create an LLC or S Corp to protect personal assets and maximize tax benefits. Without these structures, agents risk paying significant self-employment taxes and leaving their personal wealth exposed to liabilities.

  “We’ve seen seasoned agents lose thousands of dollars in unnecessary taxes or face lawsuits because they didn’t have the proper legal setup.”
  

• Annual Business Planning:
  Successful agents know exactly where they’re headed. Whether it’s targeting higher-end markets or expanding from rentals into sales, having a plan for the year can help you focus on achieving specific goals.

  “Preparation is twofold: you need to set up your business infrastructure and define what you want to achieve. Are you targeting $500,000 properties, or $2 million properties? Decide early.”
  

2. Mastering Back Office Operations

Distractions are the enemy of success. Administrative and operational concerns, such as managing health insurance or taxes, can drain an agent’s focus from client-facing activities. According to Elwell, agents need to streamline their back office early to focus on their core business.

• Health Insurance Simplified:
  Many agents overlook health insurance or find it overwhelming to navigate independently. Realty CO now provides access to over 260 providers across all 50 states, offering affordable and straightforward options without broker fees.

  “Health insurance is often a source of anxiety for agents. Tackling it upfront eliminates a significant distraction.”
  

• Tax Support and Automation:
  From managing deductions to filing taxes correctly, independent contractors need expert support to maximize their financial health. Realty CO offers tax solutions that simplify the process, ensuring agents can focus on their clients rather than tax paperwork.

3. Stabilizing Income Streams

Real estate commissions are notoriously unpredictable. Many agents face months without income, followed by a large commission that can be difficult to budget effectively. Realty CO’s commission financing service addresses this challenge by allowing agents to access their earnings before closings.

• How Commission Financing Works:
  Agents can receive an advance on their pending receivables to cover expenses, invest in marketing, or stabilize cash flow. This ensures agents aren’t stuck waiting for a single transaction to close to manage their finances.

• The Bigger Picture:
  Elwell shared that Realty CO is expanding its financial services, with upcoming tools for budgeting and fund distribution that aim to give agents greater control over their earnings.

4. Transitioning from Salesperson to Advisor

The days of the transaction-focused agent are fading. In 2025, clients expect real estate professionals to act as trusted advisors, providing deep market insights and strategic guidance.

• Understand the Market:
  Agents must stay informed about market trends, mortgage rates, and broader economic factors to offer valuable advice to clients.

  “Agents need to think beyond showings and contracts. You need to know the economics of the next 36 months to truly guide your clients.”
  

• Build a Professional Network:
  A strong network of tax advisors, mortgage brokers, and other professionals can help you deliver comprehensive service to your clients.

  “You may not have all the answers, but your network should. When you connect clients to the right people, your referral business will thrive.”

5. Partnering with the Right Resources

Realty CO offers tools and services that address many of the pain points real estate agents face. From legal and tax support to health insurance and income stabilization, their platform is designed to help agents focus on what they do best: serving clients and growing their business.

• Broker-Agnostic Solutions:
  Unlike brokerages, which are limited in the support they can provide to independent contractors, Realty CO acts as a partner to both agents and brokers, filling critical gaps in operational and financial management.

  “We’re not a competitor to brokerages; we’re a layer of support designed to solve the challenges brokers can’t address.”
  

6. Looking Ahead to 2025

Despite the challenges of 2024, the outlook for real estate in 2025 is bright. With inventory and transaction volumes expected to rise, agents have a significant opportunity to grow their businesses. However, success will require adaptability and a commitment to continuous improvement.

• Focus on Expertise:
  Clients want knowledgeable advisors who can guide them through complex decisions.

  • Learn about the mortgage market and its nuances.
  • Stay ahead of economic trends to position yourself as a trusted expert.

• Stay Resilient:
  Elwell encourages agents to celebrate surviving the tough market of 2024 and prepare for better opportunities ahead.

  “If you made it through 2024, you’ve already proven your resilience. Now it’s time to thrive.”

Conclusion

The challenges facing real estate agents in 2025 are not insurmountable. With the right preparation, tools, and mindset, you can turn obstacles into opportunities. By leveraging platforms like Realty CO and focusing on becoming a trusted advisor, you can ensure your best year yet.

Whether you’re a seasoned professional or just starting your journey, these insights from Briggs Elwell offer a roadmap to success in the ever-changing real estate landscape. Don’t just survive—thrive in 2025.

At ProInsight, we’re here to empower you to reach new heights. Let’s think bigger together.