It’s that time of the year again—New Year resolution time.
You’re looking at your wallet, all those presents need to be bought, and you’re just wondering why you’re not a millionaire yet?
Like every rational human, you decide to change your career. What could go wrong, right?
Your friend Bob is a realtor. He’s making a pretty good buck. He didn’t even finish college!
So you google “should I become a real estate agent,” and this article pops up.
And in true radarlogic.com fashion, we’ll do our best to tell you the truth about being a real estate agent and what to expect.
Pros And Cons Of Becoming A Real Estate Agent
Let’s start with the cons. Because if you don’t like the cons, there’s really no point in reading pros since they’re not going to change the facts.
Cons Of Being A Realtor
1. Slow Start
- You can’t just wake up and decide you’ll become a realtor today.
- Although from the outside, it looks just like any job where selling is involved, you actually need a license.
- Which means going to classes and then passing an exam.
- So the first hurdle you have to jump over is bureaucracy.
- The license costs somewhere between 300 dollars and 1000 dollars, depending on where you live.
- But, for the sake of argument, let’s say you knew you needed a license.
- You took the time, educated yourself, and passed the test.
- Now, as a licensed real estate agent, you should be good to go, right? If only…
- Remember that savings account you made ten years ago? Yeah, me neither. Well, you’re going to need one.
- It takes around 3 to 7 months to get your first commission, sometimes more, but rarely less.
- Even when you get that first commission, it won’t necessarily be an astronomical number.
- Unless you plan on being a part-time real estate agent, something we wrote about in the past, you’ll need money to survive.
- The initial costs of being a realtor can be pretty high.
- When you get your license, you’ll start spending money on advertising.
- The more ads you have out there, the bigger the chance you’ll find a client, but it also costs more.
- Becoming excellent at managing money is highly recommended here.
- Unless you have a rich uncle who believes in you, you can run out of juice pretty quickly and find yourself flipping burgers at McDonald’s.
- I love burgers, but I’d rather you start penny-pinching wherever you can if you want this career to get off the ground.
3. Astrology Expert
- Just like Yoda said: “Predictable, this job is not.” He didn’t say that, but it’s true.
- Remember the 2008 housing market crash?
- Yeah, just like that, a bubble popped, and you had so many vacant houses, you could hook up every Mexican immigrant with a crib.
- There’s even talk of something similar happening in 2021 (I won’t provide any sources to back this up since it’s still just a prediction).
- People usually don’t have money to buy houses during a global financial crisis.
- Now, that’s just globally speaking. What about on an individual level?
- Well, there could be months where you’ll earn the majority of your yearly income.
- And then, there are months where you won’t make literally anything. The worst thing is, you can’t predict that.
- This is tied to the previous thing we mentioned.
- If you’re not good at managing money and don’t save most of the commission you earn, you can go from rags to riches every few months until you run out of gas at some point.
- Financial security is kind of a big deal to most people; the real estate business won’t provide that in the traditional sense of the word.
4. Yes Dear…
- If you don’t have clients, you’re not making money. Shocker, I know.
- Besides advertising, you’ll have to become a people person to get clients.
- If you’re not into hanging around other people, making small talks with strangers, and just being social in general, this line of work is not for you.
- In the beginning, you’ll have to contact everyone you know in search of a potential client.
- If you don’t have that many friends, the chances of getting a client will be slimmer, but you can meet new people and expand your social circle.
- If you don’t have friends because you hate spending time with other people, well, chances are practically non-existent.
- Sure, you can fake niceness, though that’s something a sociopath would do, but why torture yourself with something you hate?
- If you need to earn a lot of money, there could be better options for you out there.
- Then there’s the fact that when someone has to spend their life savings, they can get nervous, very nervous.
- Buying a house is a big decision. You’ll have to have great social skills and even be a pseudo psychiatrist of sorts.
- It’s like being in a relationship for a few months, then everyone goes their separate ways, but nobody bears a grudge.
- Even though most clients are just one time customers, a good recommendation goes a long way.
5. You’re Late, again!
- As a real estate agent, there’s one thing you’ll chase more than money, and that’s time.
- People are usually available to look at houses during evenings and weekends. That means you’ll have to give up some of that time for the sake of business.
- Money management was mentioned earlier; well, time management might be even more important.
- If you’re making all the right moves, the money will inevitably come.
- However, you could still be making those right moves but spending way too much time every day in order to make them.
- Depending on your current marital status and if you have kids, that could be a big deal.
- This hustle culture we’re living in often neglects the fact that at the end of the day, we are social beings.
- If you’re struggling to spend time with your family or friends as it is, being a real estate agent will make that problem even bigger.
- Fifty hour plus work weeks are not uncommon among realtors. Keep that in mind.
Pros Of Being A Realtor
Congratulations, you’ve made it to the pros section.
It’s time we shed some light on why some people love being a real estate agent and should you become a real estate agent.
1. Early To Bed And Early To Rise
- One thing this industry appreciates is hard work.
- Many people give up in the first few months since, as we discussed earlier, it’s not an easy profession.
- However, if you push through that initial phase, you will be rewarded handsomely.
- Depending on the state, some real estate agents earn upwards of 100 thousand dollars annually.
- That’s quite a bit more than the average American salary.
2. The Sky Is The Limit
- If you prove to be good at being a realtor, you can open your own agency.
- You could hire staff and start earning way more.
- This is what’s great about this job. It’s not a job.
- It’s more like a business that has the potential to grow exponentially if that’s something you want.
- If you decide you’re happy with staying where you are, that’s also an option. But be careful.
- It’s getting more competitive out there.
- Sometimes, when you think you’re not moving, you’re actually going backward.
3. My Man!
- After being a successful realtor for a while, people in your community start to notice.
- At one point, you’ll meet so many people and sell homes to them that they’ll start to appreciate you.
- This is one of those unseen benefits of being a realtor.
- You get to help others find a place where they’ll probably spend the rest of their life.
- Most of them will be grateful.
- If you live nearby and make a good impression, expect an invitation to a few barbecues and football games.
4. I Am The Captain Now
- We mentioned that time management is of the utmost importance here.
- If you’re good at it, you’ll love this job.
- Creating a good schedule and sticking with it will sometimes let you have more time than the regular 9 to 5 job would.
- Probably the most appealing thing is that you get to be your own boss.
- Although clients are sort of like bosses, you get rid of them eventually.
Pros And Cons Of Becoming A Real Estate Agent – The Conclusion
You probably noticed that we put more cons than pros, for a good reason.
This job takes a while to take off. But pros, although fewer, outweigh the cons in the long run.
There’s no such thing as get rich quick schemes, but if there were, a realtor wouldn’t make the top 100.
It takes time to find good clients, to find the right marketing strategy, and to have your name out there for people to see and recognize.
We’re not discouraging people from becoming realtors. Far from it, it’s a rewarding job, one that gets better over time.
We just want to properly inform those who are thinking of taking this road.