Is a real estate agent a good job? A reality checks to assist you in making your decision. Are you looking to start a new job or a side hustle to supplement your income? You could be considering investing in real estate. After all, each month, 17,000 people in the United States Google “how to become a real estate agent.” Those who take the plunge join the estimated 2 million active real estate licensees in the United States.
Compared to other jobs with comparable earnings potential, becoming a real estate agent or broker is quite simple.
There are numerous benefits, including being your boss, meeting new people, and assisting others through one of life’s most significant milestones.
Still, many people underestimate how much work it takes to develop a successful real estate profession. Here’s a closer look at the work to see if it’s right for you to be a real estate agent or broker.
Is Real Estate Agent a Good Job?
A real estate agent is a person who helps with the sale and purchase of houses, buildings, commercial properties, etc. It’s what you always see in the movies with some woman yelling into her cell phone with an expensive handbag hanging off one shoulder. They’re making millions every year! That sounds like a good job to me!”
Real estate may not be as profitable or desirable as some think, so before you jump to any conclusions, here are some things to consider.
Real estate agents work where the market is hot, which means you’ll find many of them in places like New York or Florida. That’s because homes sell faster and for more money there than they do in other places.
If your real estate agent decided to move to a small town in a rural area, their income would decrease significantly. They also receive their pay primarily on commission, which means that they may make nothing at all during some months if houses aren’t selling. If it isn’t easy enough for them to sell a property, you’re going to end up paying their expenses until they can get something done–and that’s only if the market hasn’t crashed.
Do you know the meaning?
This means that you’re not just paying an agent but also all of the other people involved in selling a house. When you consider that many real estate agents will not accept someone’s first offer, nor will they come down significantly. It is from whatever price was listed on their cards unless the buyer is willing to move fast–things quickly become ludicrous.
The fact is there are hundreds or thousands of homes for sale in any given area at any given time. This means that it’s not only difficult to find one that suits your particular tastes, but it’s also even more difficult to even get inside them due to overpriced offers.
Things to Consider Before Jumping Into Real Estate
So before you jump into real estate as a career, think about where you want to work and how competitive your desired location may be. If you want to live in a big city with great nightlife and lots of people for networking, then you’re going to have a hard time convincing someone else that your small town is where they should open their business.
If you choose a competitive market, you must build a network as quickly as possible so that other agents will refer potential buyers to you. Without the help of others, the odds are stacked against you on every deal. Regardless of how good of an agent or negotiator you think yourself to be.
Real estate also tends not to be as lucrative as movies might lead one to believe. Some realtors I know have been involved in deals worth over $2,000,000 and still make less than $30,000 or even $40,000 in a year. There are also all of the expenses that come along with getting your license which can include everything from background checks to classes.
All in all, there are some great opportunities when it comes to real estate for those who have good networking skills and an understanding of how much work it will take to sell something quickly in a competitive market. However, suppose you’re looking for easy money in an industry that will only require part-time hours.
In that case, you may want to look elsewhere because this may prove frustrating when coupled with the fact that so many homes are being sold these days by owners who are willing to give them away at extremely low prices.
Working in this career can benefit you personally and financially, but it isn’t simple. A career in real estate entails generating leads, tracking prospects, dealing with complicated paperwork, providing customer service, and much more. Because most real estate brokers are paid on a commission-only basis, working without a paycheck is possible.
Real Estate Agents and Brokers Have a Bright Future
The number of these real estate agents and brokers is predicted to expand by 2 percent between 2019 and 2029, slower than the 4 percent average for all occupations, according to the Bureau of Labor Statistics (BLS).
Pros and Cons of Selling Real Estate
In other cases, the advantages of selling real estate may be the very reasons for doing so. In many circumstances, you may be able to choose your working hours and be your boss.
Furthermore, the potential of large commissions and the chance to meet new people can make real estate sales a delightful way to spend your workday.
Selling real estate for a living requires a lot of effort.
To make a living selling real estate, you must put in a lot of effort. It would be best if you were organized to keep track of legal documents, meetings, and all of the tasks that come with several listings. Because commission-based work is common, you may be without payment for some time. You won’t make any money if you don’t sell.
You don’t make your Schedule.
It was eye-opening to learn that a self-employed person can work as many hours as a real estate agent, at the very least, a good real estate agent. Although you can choose your Schedule, one thing to remember about being a good agent is that, while you don’t work for one person (a boss), you work for (and want to work for) many people.
Clients are the people who pay your mortgage. You could be eating dinner when a buyer calls to say their world will end if they don’t see the home that was just listed an hour ago. Put your food in Tupperware and hope it tastes good in a few hours.
Being a real estate agent is expensive.
In the current marketplace, there are many various brokerage programs, splits, commission agreements, etc. A smaller commission split combined with lower office costs may be an excellent place to start for a new agent.
You have proven yourself as an entrepreneur if you make it over the two-year mark. It isn’t easy to keep someone like this tethered, and you’ll ultimately want to stretch your wings. This involves founding a new brokerage or moving to a location with large splits but high office expenditures.
When first starting in the company, a new agent will not comprehend that it will be prohibitively expensive in either case.
Either the splits aren’t very good, meaning you’re paying a lot of money to your brokerage every time you sell a house, or the office costs and marketing are all on you. If you want to create an impression in your market, whether it’s a large office, a little office, or just you, that may add up quickly.
Real Estate Careers: The Pros
In most areas, you may finish the requisite real estate courses, become a licensed real estate agent, and begin your new job within weeks or months after completing them (depending on state regulations).
Although the process varies according to where you live, completing a course and final tests and studying for your licensure exam normally takes months.
You will activate your license after passing the licensing exam. Then you have the option of working for yourself or a brokerage as a real estate agent.
On the other hand, working with a brokerage is the finest method to test your real estate talents and expand your customer network while you’re first starting. To your knowledge, certain brokerages offer additional training to help you understand how they operate and advertise themselves.
Real Estate Careers: The Cons
Starting a career in real estate requires a significant investment of time, money, and effort. Furthermore, it is a career with no guarantees. It takes a diverse skill set and an awareness of complex topics to pass your state’s real estate licensing exam. The training and testing are costly, and you will need to devote a significant amount of time to studying.
In Minnesota, for example, the test costs $65, and the license costs $100. In California, the exam costs $60, and the license costs $200. Several wonderful basic courses start at approximately $35 if you want to test the waters in the real estate sector.
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.
Frequently Asked Questions
Do brokers hire part-time real estate agents?
Bret has seen several brokers deal with part-time agents, but it varies with each firm and depending on their business plan. “Some will cheerfully deal with rookies and part-timers,” he explains, “while others will only work with seasoned, full-time real estate agents.”
Brokers are sometimes hesitant to engage in part-time real estate agents because they must train new agents, which can be time-consuming and costly. Start your job search early in your relicensing procedure to increase your chances of getting hired.
Don’t be scared to inquire about which real estate firm is the finest for part-time agents. A smaller, independent brokerage may be more willing to hire a part-time agent than a larger, nationally recognized franchise.
Is Real Estate a Competitive Market? What about the effects of innovation on the real estate market?
Property investment is a highly competitive field. However, like any other sales position, networking and creating contacts are essential to a promising career. However, in the twenty-first century, competition comes from other realtors and technology.
Before contacting a realtor or firm, customers may obtain a wealth of information about homes online. On the other hand, technology enables brokers to use social media platforms for advertising themselves and doing business. Learn how to use the rivalry to your benefit and differentiate yourself from the competitors.
How to calculate income when selling real estate part-time?
To figure out your estimated annual salary, multiply your average income per sale (or referral) by the number of sales (or referrals) you intend to makeover the year.
For example, if you sell two houses for $500,000 each and receive a 3% commission, you’ll earn $15,000 for each house and $30,000 in gross income. If you suggest five clients to other agents, each of who purchases a $500,000 home, and you get 25% of the agent’s usual 3% fee, you’ll earn $3,750 for each client, for a total of $18,750 in gross income.
Is The Future of Real Estate Agents Doomed, or Just Different?
When you examine today’s professions, it’s evident that they’re looking for roles and tasks that machines can’t or can’t do as well as humans can.
If you’ve been banking your economic life on being able to get orders for fries and burgers or driving folks about, you’d better be expecting a sizable lotto win. Then there are neurosurgeons, fashionistas, and marketing experts, who all seem to be in reasonably secure positions. Doctors have a 0.42 percent probability of having their jobs digitized, according to the study. That, too, might change in the near future.
Drivers, cooks, and attorneys still exist, but their roles have evolved significantly.
To comprehend the fate of real estate brokers, consider how many duties can already be automated:
- Searching for a house
- Estimated home values
- Showings of properties
- Investigating localities
- A scene from the 1989 film Robocop indicated that a taped video screen would replace home showings in the future. At least in the realm of science fiction, real estate agent job security appears to be shaky at best.
- Other real estate talents that may be the most resistant to automation are:
- Negotiations on a professional level
- Creating sellable property descriptions
- Developing contracts that truly safeguard both buyers and sellers
- When challenges and conflicts develop, keeping transactions together is essential.
- Making sense of all the data and acting as a privacy shield for sellers
Can I customize your real estate job description?
Please feel free to make changes to our real estate job criteria or responsibilities to provide more information to candidates about the work at your organization. To build a descriptive job listing and start attracting top talent now, edit or add to our real estate agent job description template.
It will take a while to finish. Your first property may take six months to market if you get into property investment full-time and invest all your funds in education and start-up expenditures.
A profession as a real estate salesman may be a good choice for women with small children due to its flexibility. You can work from home (emails, calls, web marketing, and other activities). Then, leave the children with your husband or a babysitter while you’re at the cinema.
Finally, some individuals preserve their realty agent’s license and use it to purchase and sell their properties and represent a close relative on occasions.