Choosing to do real estate as a career, it’s not always easy. There are advantages and disadvantages to becoming a real estate agent, but for many, the good outweighs the bad.
As a real estate agent, you’re helping clients sell or buy homes and condos. You may also handle commercial real estate and industrial sites. Either way, a real estate agent eager to become successful must learn skills in many different areas.
Here’s an honest assessment of the pros and cons of being a real estate agent:
Pro of being a real estate agent: High rewards
Commission rates for real estate agents vary but often are in the 3.5-5% range, calculated on the selling price. You don’t need to sell many properties annually to make a very nice income. Therefore, selling a home valued at $1.2 million can earn $42,000 to $60,000.
If you sell a condo valued at $300,000, you can earn $10,500 to $15,000. There is also unlimited income potential. No cap on your earnings.
Con of being a real estate agent: Low success rate
Few real estate agents become hugely successful. That’s just a fact. It’s a tough business. Within the first five years of business, approximately 87% of real estate agents quit because of a lack of success. It takes a lot of hard work and dedication if you don’t want to be included in that percentage.
It can also take time to build up one’s annual income, meaning there may be dry periods initially where you’re still marketing and creating awareness before your first sale.
Pro of being a real estate agent: Success breeds more success
The hardest time you will have as a real estate agent is as an unknown. As you work at it and become more well-known in your community, develop your niche, and reinvest in your marketing, one sale will lead to the next.
Although real estate is very competitive, the most successful agents have been around the longest, and a reputation takes time to build. You should learn these experts, such as taking real estate agent coaching programs for your career development. Be committed. Have patience. Make being the best real estate agent you can be your biggest priority.
Pro of being a real estate agent: You choose your schedule
No one’s telling you what to do. You’re an independent contractor. You set your work hours and make your schedule. That flexibility alone is advantageous, allowing you to care for children, spend quality time with your family and friends, attend events you want to attend, and essentially plan your success. You can work part-time, full-time, more, less – whatever you want!
Con of being a real estate agent: You may work long hours
Real estate isn’t an easy job. Some real estate agents work outside of the 9-to-5 and more than 40 hours, including on weekday evenings and weekends. There is no rule saying that’s what you’ve got to do to be successful.
You can work a very rigid schedule, but the more successful you are, the busier you become. There’s also something to be said, for the more you work, the more you make. Just be careful not to burn yourself out.
Pro of being a real estate agent: You’re constantly selling
Think of being a real estate agent as being an ‘influencer who sells homes.’ You’re always marketing yourself and selling. That’s the challenge that real estate agents welcome. They constantly have to find new clients, spread awareness, and sell themselves to secure listings that could go to someone else.
It’s a hustle that isn’t for everyone, but if you’re a people person and love a challenge, real estate is the right career for you.
Con of being a real estate agent: There will be slow periods
You’re your business owner as a real estate agent. Instead of selling products every day, though, you might make a sale a month. Sometimes less, sometimes more. There will be slow periods. Those have to be budgeted for.
You’re not earning a weekly salary, and everything’s based on commission. Between those commissions, a real estate agent is working hard and budgeting carefully to ensure they aren’t financially, personally or professionally put in dire straits.
Pro of being a real estate agent: You’re providing a service
A real estate agent makes a client’s dream come true, whether selling a home for the highest possible return or helping people buy their first home. It’s a very rewarding job, and you provide a service to the community around you. That’s exciting and motivating.
Many people get overwhelmed buying or selling, unaware of what’s required of them or if their actions are right. A real estate agent is an expert, provides guidance, and makes the experience all the more enjoyable for all parties.
Con of being a real estate agent: Clients can be tough to please
Home buying is stressful. Some of your clients can be tough to deal with at times. Tensions are running high, and sometimes, client’s conflicted about what to do. For a real estate agent, patience and adaptability are important. Try not to blame the client. Instead, use solutions-oriented thinking. If there’s a problem, don’t question it. Solve it. Make quick work of any trouble, and everything will work out in the long term.
