Is Being a Real Estate Agent Worth it?
- No Boss
- Flexible Schedule
- Unlimited potential
- Minimal Education
- Building your own brand
- Knowledge and Reputation
- No Weekly Paycheck
- No Insurance
- No Guaranteed Income
- Independent Contractor
- No Trainings
You’re probably asking yourself, is being a real estate agent a good career choice?
Becoming areal estate agent may be a good career for you but there are pros and there are cons that you must know first before you decide. Real estate is saturated with so many people. The whole realtor and real estate agent label have become diluted and almost become cliché.
A lot of people talk about it but they don’t do it right. They’re not actually pursuing it hard and passionately and with a level of dedication, some are just saying it to sound cool.
The majority of Realtors are amateurs because they don’t take it seriously.And because so many people are going to get their license because of this great market we’ve had for the last few years,people are becoming jaded and it’s almost like a driver’s license that almost everybody has one.
You have to understand the first fact that people need a home to live in and number two is we cannot fall into the category where agents don’t take helping others buy on sell a home seriously and are not dedicated.If you’re going to come in and not be fully committed, nobody will care. If you’re a part-time that’s fine. There are many real estate agents who are part-time but are dedicated.
Now,let’s talk about becoming a real estate agent and the pros and cons.
1.) The first pro about it is a real estate agent doesn’t require a college degree.
Any educational level can join the ranks of being a real estate agent. You have to beat least smart enough to pass the state exam. 50% of the people who take the exam fail it the first time. So, you have to have at least some intelligence to get into real estate.
2.) Second is that is it seems cheap and has a relatively short education period.
In some states, it’s only two classes. You take two classes and then you pass two measly tests that are pretty easy to pass. Then you pass the state and the national test and your license. You can get it done in two weeks if you’re working hard at it!In two weeks, you can have a real estate license then now, your professional. You’re a real estate professional in just two weeks of education.
It’s amazing that you can get a license for that little of time investment but the funny thing is this business involves more knowledge than many people think anything they teach in colleges. You need to know a lot about real estate contracts, you need to know how to solve people and property problems, you need to know how these real estate work and a lot more.
Taking the pre-licensing education classes is highly recommended. The best tip for this is to search for the best school out there that has a high passing rate for their graduates. You can also ask the successful Realtors in your area about what schools they recommend.
The downside we see on taking pre-licensing classes is that it maybe not enough education. There are also some schools who make money on those who keep on failing because they have to retake the classes to try and pass the real estate exam.
Now let’s start the about the facts you must know before diving into real estate.
The very first of its good side is that there’s no income ceiling to real estate–the sky is the limit. Those huge paychecks you see on reality TV shows about real estate agents making money? Those are actually for real.
Some people will say that it’s a lie because either they’ve never earned that or they don’t know anyone who has made that much money.You can make a lot of money. Your commission is based on the sale of the house. So, if you sell a house for $2.5 million, your commission is going to be a lot.But this means that you have to work hard, work smart, marketer better and this needs dedication and commitment.
The next good side is very much connected to the first,opportunities and deals.If you’re an investor or you have aspirations of being an investor, you’re going to put yourself in front of a lot of deals out there by actually working and doing what you should be doing to find deals for yourself and other investors.
You can kill two birds with one stone. You’re going to be making money off of the sales and the commissions and then you’re going to run into deals that are going to make you even more money.
Next is the Flexible schedule.You make your own hours. This is the way a lot of entrepreneurs would want to work and it’s another great thing about real estate. You can schedule your days the way you want to –to a larger degree.
But this means that if you’re not working, you’re not getting paid. It doesn’t mean that you can just work whenever you feel like it and not.
You have to understand that there are some demanding clients that will call you and they want to see a house today at noon and it’s 9:00, you roll out of bed because if you don’t get up and show that house,you may not be making money.You have to weigh whether it’s worth it for you to change your schedule to meet the demands of that client or whether you have already scheduled an appointment that is more important.
You always make sure you’re staying busy and you’re putting the right money making events in your schedule.
You don’t also have to sit at a desk all day. Many agents sit at the desk,a few do paperwork but the way many successful see it is if you’re sitting at a desk, you’re not making money. The only way to make more money is to get out into the marketplace and meet people. Some people call them leads while some call them clients. For example you’ll be doing open houses and you’re checking outhouses that might becoming available in the future.
Next is you can build your own brand or join an establishment team and adopt their branding. You choose to be part of a world-class team or you can build your own team.You have options and flexibility when you do. Once you get your agent license and eventually you can start or buy your own Brokerage. That is one of the most beautiful parts of real estate.
The next pro is that real estate opens so many other doors through networks.You’ll meet amazing people and forge great relationships. You’ll be able to meet people who are rich and famous. Who else is doing that right?Where else or what other career(besides banking and investments)would give you the opportunity to move in these social/economic networks?
And next, you’re not just learning in general but learning the local real estate market conditions and being actively involved in the market.This allows you to learn what is going on in the different neighborhoods and know what a property’s going to get value-wise. So as an investor and a real estate agent, you’ve got the best of both worlds.
Next is the No boss and you don’t have to wear a tie or a power suit –the wardrobe is your choice.You are the boss. If you don’t have a boss then who’s holding you accountable to meet your goals and to make money and actually close deals? The only person who’s holding you accountable is yourself.
However, a lot of successful real estate agents find they need a mentor or they need a coach in order to hold them accountable. So,when it comes to setting and sticking to your goals, have an accountability partner can help you make sure you have somebody who’s holding you accountable.When you interview successful agents, they pretty much all have one or more coaches!
Now, let’s get into the downside and reality of real estate.
The very first on our list is the Negativity that comes with dealing with people. And a lot of the negativity comes from friends and family.
It’s the people who have never done it or failed. You will be told about all the negative possibilities, particularly about being a real estate agent. They will tell you that you cannot do it. You’re too young, you’re too old. You have never made any sales. You are too tall.You are too short. Whatever it is.
When you hit the crossroads,realize this is not some get-rich-quick scheme and you’re not just going to show up in a suit like they do on TV and make a lot of money and negotiate 10 million-dollar deals over the phone.
What’s an agent to do about the negativity?
If you’re looking to be productive,you need to separate yourself from a lot of gossips and a lot of complaining about discount companies.There’s a lot of gossiping and worries, especially when you listen to the low producers or “slackers” in the office. Stay away from them!
You will face many criticisms and negative criticisms because it is a sales career. Unfortunately, most people become a statistic and fail. That’s just the fact.So watch out for yourself –you can do it –with help.
You get no weekly paycheck.This is a shocker for some people but real estate is 100 percent commission. Most new real estate licensees are only in the business for three to six months before they give up (a year at the most)then they’re out of the business. If you start out in real estate on the right foot, on the right grounding knowing what is expected of you, you’re going to make a ton of money.So the best way to combat this is to have at least 6 months of living expenses banked.
Another con, there are no clients unless you’re prospecting.Some brokerages that you work for may give you some leads but if they’re going to give you leads, they’re going to take a lot more of your commission.Because when you work for a real estate company, you get a commission split and you’ll probably get a lot lower commission because they’ll take usually 25% of the commission for the lead.
Another con is there’s no health insurance. So, if you’ve always worked fora company that provided health insurance,you’re going to have to purchase your own health insurance for real estate. That’s a shocker for some people and you may have to work weekends or late hours to compensate and earn more commissions to pay for that.
Next is the competition.Like we mentioned earlier, real estate is a very easy career to enter. You will be surrounded by people who are mediocre and whose advice will not be the best. Make sure you follow the advice of the right people. The numbers of agents who are average amateurs or mediocre are rampant.
In the industry, many agents are not serious about real estate and end up only working with a half hearted effort. Potential customers get angry at the fact that these agents don’t take them seriously and their needs.
But this competition has a pro side as well and that is the competition might be very weak. There are only a few who do it really well. So depending upon your outlook, the competition might be a con or pro to you.
Next,when you’re getting in started,there is no expense account and you will likely need to have a lot of money. There are always ways to start in the business for those who have no budget, but you’ll need to spend money to level up everything you do in this business. You’re going to buy things like websites, yard signs, lock boxes and you’re going to pay for professional fees and for service providers. It usually costs you a couple of thousand dollars to join the board and pay local/state/federal fees and your Realtor dues.
But that’s the overhead, you’ll have to get started and if you’re without a budget/savings, start using word of mouth.Call your sphere of influence, call your friends and family and start generating business that way and you might not see no budget as a problem.
The con side here is if you’re broke or if that seems like a lot of money to you,then it adds before you even start. Stressors could be tough to you and you may quit.
The next con would be the lack of adequate training. As you will know, when you get a regular job for nine to five years, there’s a career path in clerical, service, trades, medical, engineer, lawyer, whatever job it is, you will receive a certain amount of formal training.
Training is very deficient in real estate in most cases. Often when you enter an office on your first day, they will just lead you to your desk, your cubicle, your phone,tell you to work and they leave you sitting there.
Another one and this happens no matter at what level you are in real estate. It’s no reward for your efforts. You will work with clients sometimes for months, picking them up at the airport,taking them out to lunch,showing them house after house after house, then the next weekend doing the same thing. And then guess what,they end up not buying.Or…
You were really hard for a client and then they go and buy a house with another agent. They just changed their mind, don’t want to buy a house anymore, all those hours that you put into that client –you’re getting zero.
The last con, you may have a listing and it might not sell. That listing you might have advertised locally; you might have taken out high-end advertising in magazines (that might cost you a thousand or twelve hundred dollars for the advertisement in the magazine),you’ve run online ads, called past and present clients for a potential buyer and on and on.
If the house doesn’t sell, the seller’snot going to reimburse you. Unless you somehow put that into a contract. You eat all those costs. Some brokerage firms split those costs with you and some even advertise your properties for you which is a good thing. But if they don’t,if the house that you’re representing doesn’t sell. You’ve even eaten all those charges.
Knowing those facts, do you think this will be the best career for you?
Every day in Real Estate could be something new and every deal is also something new. So, if you love the variety and you want to do something new every day,this is a great business to be in.
Opportunity is one of the things you’ll love about real estate in general but it can be stressful for you. You’re going to be dealing with stress every single day.
If you’re a self-motivated person then you’ll be able to come into this business and be successful at it.If you’re not self-motivated and you still want to get into this business,come into the business and hire a coach.
You can make a lot of money in real estate but on the other side of that big pay could be 90 days or more with no pay. So, you may work for 90 days, you might work for six months on a deal and it doesn’t payout. The whole thing about real estate is that you do not get paid unless you close the deal.
Know the reality and what you’re going to face. You never count your commissions until you get that check in your hands.
We don’t want you to get discouraged. When you do sell a house, you make a lot of money. It’s all worth it in the end. It is frustrating but the way most agents look at it is that’s just part of the business.