Working as a real estate agent is not the easiest job in the world. Many challenges come with this line of work, but there are also many benefits. If you’re considering becoming a real estate agent, here are some things to think about. What type of person do you need to be? Do you have good people skills? Do you have the time and patience for paperwork and closing deals? Is it worth your while financially? Let’s find out the pros and cons of working as a real estate agent.
It’s important to consider these questions before making any decisions about what career path to take. After all, if at first, this doesn’t sound like something that would interest you, then perhaps it isn’t for you!
Selling real estate appears to be the ideal job:
- Flexible hours.
- The potential for large payments.
- No training to obtain a license.
- The ability to work with anyone.
These are all good reasons to enter into real estate sales, but success is not as straightforward as it appears.
First and foremost, if you want to be a real estate broker, you must devote your entire time to it. Real estate is not a part-time career, and attempting to do so would certainly fail. You have a decent chance of succeeding if you approach it as if you are beginning your own business and bring a lot of enthusiasm and effort.
Real estate is a rewarding career that also comes with many problems. It can be rewarding, but it involves a lot of hard work and sacrifice. If you’re considering a career in real estate, we’ve put up a summary of the benefits and drawbacks of doing so.
Pros of Becoming a Real Estate Agent
Becoming a realtor agent has a lot of advantages. Most people begin this career because they are unhappy in their current position or desire the endless freedoms of becoming a real estate agent.
So, here’s a rundown of the advantages of working as a real estate agent:
One of the most important facts of becoming a real estate agent is the possibility of earning an unlimited amount of money. As an agent, you can make as much money as you want.
The agent receives around 2.5 percent to 3 percent of the property’s sale price. You can get a high commission depending on the local home market pricing. For example, in areas where the average home price is $1,000,000, the agent gets $25,000 to $30,000.
That is for a single transaction.
Real estate agents choose how many clients to take on, determining how much money they can make every year.
Real estate agents have complete control over their schedules. Because of this flexibility, agents can fit work around their lives more easily than other professionals. Flexibility is a big feature of the job for agents with children. Parents will attend significant events and spend more time with their families.
You are a business owner.
Agents in the real estate industry are business owners. They run their own business, even though they must work under the supervision of a broker to lawfully sell real estate. Agents have complete control over their schedules, which clients they work with, and how much time they work.
Many brokerages have marketing and lead creation services to assist their agents. However, each agent determines how these resources will be used in their business plan.
It’s a People Business.
Real estate is a relationship between agents who like collaborating with others perform at their highest level.
When you work as an agent, you meet people from various walks of life. Many clients have a real estate demand, ranging from first-time homebuyers to investors. Agents can’t sell real estate unless customers are willing to purchase or sell. As a result, prioritizing your clients is critical.
You assist others in achieving their goals.
The reward is one of the most underappreciated aspects of becoming a real estate salesperson. Agents can assist others in achieving their goals.
They assist sellers in obtaining the greatest possible price for their property and assist them with the next stages. Working with house buyers and sellers is a gratifying experience.
Many of them are attempting to accomplish a significant life goal. People can take advantage of a plethora of options by becoming homeowners. It’s heartwarming to see how grateful they are when they receive the keys to their first home.
Closing escrow is, of course, a fantastic experience because everyone leaves happy and grateful.
Cons of Becoming a Real Estate Agent
Becoming a real estate agent, like anything else, has its drawbacks. Don’t let these drawbacks derail your dream job. Instead, consider these to be the items you’ll need to get started.
The disadvantages of a real estate career are listed below:
Patience is required for success.
The amount of patience necessary is one of the most important drawbacks of this activity. Finding a first client or finalizing a contract can take months for a fresh real estate salesman.
Prospecting, advertising, and hosting open houses are just a few of the tasks that real estate agents put in before they see any money. Real estate agents tend to depart the industry after their first year on the job. However, they decided to give up due to a lack of a plan.
Bonus tip: Get your roadmap for success in your first year as a real estate agent by reading The First Year Real Estate Agent Survival Guide.
You Have Been Rejected
Dealing with rejection is another difficult aspect of becoming a real estate salesperson. Agents are frequently rejected.
They’re looking for strangers as well as those in their area of influence. Not everyone will require the services of a real estate agent.
Real estate agents will be successful if they don’t let rejections stop them from chasing fresh leads.
This is a competitive job.
In California, there are thousands of real estate agents. Buyers and sellers in any particular location will have various real estate agent options.
Agents must work hard to set themselves apart. Finding a niche, a specific area, a specific sort of buyer, or a specific style of property is one method to do this. However, tapping into your sphere of influence is the greatest place to start. Agents should inform their friends and family about the opportunity. Those in their area are frequently the source of their first deals.
Escrows can be difficult to work with.
Regardless of the contract, they could take longer than 30 days to close. Agents must roll with the punches, deal with challenges as they arise, and retain their focus on escrow closing. Agents must do everything possible to keep escrow intact and serve the client’s best interests.
The issues will be resolved as long as agents remain professional.
Working with People Is Difficult
Finally, working with people has its drawbacks. They aren’t always simple to work with.
Agents will contact other agents, clients, or third-party businesses that aren’t their cup of tea. People have different ideas about doing business, which may or may not align with those they operate. While upholding their professional standards, agents must learn to negotiate, collaborate, and diffuse problems.
Frequently Asked Questions
Is Real Estate a Competitive Market? What about the impact of technology on the real estate sector?
Real estate is a competitive marketplace, but much like any other sales job, networking and building relationships are crucial for a successful career.
However, in the twenty-first century, competition comes from more than simply other agents; it also comes from innovation. Customers may find a plethora of information about homes online before calling a real estate agent or agency.
Technology, on either hand, enables agents to market themselves and conduct business via their social media platforms. Learn how to take advantage of the competition and set yourself out from the crowd.
Are You Ready to Be a Real Estate Agent?
You should carefully consider the following benefits and drawbacks to see if you can overcome the obstacles this industry presents.
There are several incentives for those ready to put in the effort and remain committed to the cause. Still, even the most successful agents can experience periods of inactivity during which they may not receive a salary for an entire month.
If you decide to be a real estate agent, you will discover that many individuals are drawn to the benefits of doing so. To overcome the obstacles and ensure that your work has a lasting impact on your community, you must develop into a dedicated professional.
Can I Buy a House Without a Realtor?
Yes, but there are certain drawbacks. If you’re ready to start looking at houses, you might be considering hiring a real estate agent. Finding an agent has some advantages, but there are times when going it alone is the best option. It has the potential to save you time, money, and aggravation. So, what are your options?
Here’s how to get started: Examine the option even more closely, and assess the benefits and drawbacks of buying a home without the assistance of a real estate agent.
How to Be a Successful Part-Time Real Estate Agent?
It is doable, but you must be aware of the risks.
Working as a real estate agent needs a lot of tough effort behind the scenes to make the magic happen, even though it’s thrilling to close deals and to reward helping clients. You can’t expect to be successful if you only work a few hours every week. Working part-time as a real estate agent usually entails only a few hours per day. That’s on top of (and occasionally in addition to) your full-time job.
What Is the Job Outlook for Real Estate Agents?
The real estate market is now hot, and many individuals are hunting for homes, but there aren’t enough available on the market. Because of the scarcity of homes, many are selling for more than the asking price.
The real estate market is solid, and when post-pandemic development picks up and supply shortages fade, the business will boom.
Keep in mind that obtaining a real estate license does not automatically entitle you to work as an agent. You can work as a title examiner, property manager, loan officer, and more with a real estate license.
Before deciding whether or not to become a realtor, you should carefully consider the following advantages and cons to see if you can overcome the obstacles this sector presents.
Numerous benefits are available to those ready to put in the effort and remain committed to the cause. Still, even the greatest agents can have periods of inactivity during which they may not receive a salary for an entire month.
If you decide to pursue a career as a real estate agent, you will discover that the benefits of doing so attract many people to this field. To overcome the obstacles and ensure that your work has lasting power in your community, you must become a dedicated professional.
Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.
She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.
As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.