The world of real estate is constantly changing. What was once a profession for millionaires has now become more accessible to the general public with the advent of online brokers and apps like Zillow.
Whether you’re thinking about venturing into real estate or are already in it, consider these pros and cons before making your final decision. To start, let’s take a look at the good news first.
The following information will explore both sides of being an agent, so be sure to read on!
Real Estate Agents
A real estate agent is a professional who helps people buy, sell, or rent properties. They work with clients to find the best property for their needs and help them through the entire process, from negotiating prices to completing paperwork.
Most real estate agents have their own schedules, like to work independently, and are self-motivated.
But becoming a real estate agent is not all sunshine and rainbows.
Many real estate agents admit that the job can be challenging, the hours are long and there is a lot of competition. Despite all of this, the real estate business remains an excellent choice for some people.
Real Estate Industry
The real estate industry has its challenging moments, but it’s still a career that many people enjoy.
The industry is always changing due to the economy, so learning new things and staying up-to-date with developments is essential for success.
Pros of Being a Real Estate Agent
Now let’s talk about the pros of being a real estate agent. Especially if you are a real estate broker, these benefits will likely outweigh the cons.
Career mobility
Once you work as an agent, you get that freedom. This means you get to develop an industry name. In other words, it’s your name that will be remembered by the industry.
You can use this as a platform for your future career advancements.
You can learn more about the property market as part of this experience. For certain careers, you may want to get an opportunity in the property industry ranging from the real estate e-marketers to the realtor.
Pro: You have the flexibility to choose your own schedule
As a realtor, you are always your own supervisor. You’ll have the option to schedule every time that fits with your work lifestyle.
Consequently, your clock will automatically close without changing or completing it to any specific deadline. Setting your work-life balance and establishing your schedule help increase work satisfaction for employees.
Business growth
It enables a company whose owner’s monopoly is yours to grow as large for itself as possible. When you invest time for your company, you can see it thrive.
Some real estate professionals start their business as merely one person, but others require additional personnel. You could get your broker’s license in your field, and create a broker business for yourself.
Business growth often comes with lots of hard work and dedication. It can be difficult to watch others gain success for their efforts while you remain stagnant, but the reward is well worth it in the end.
Referrals to clients
Referrals to clients can provide a lot of opportunities to build rapport with future customers. Even if you just meet people, they can recommend you to their friends and family so that you can continue doing business together.
Referrals are one way to expand your customer base and receive new customers from trusted sources.
For example, you can give them a referral for insurance or help with mortgages.
Even if you do not get the opportunity, you will still gain something in return, and there is no harm in trying.
The reassurance can increase your clients’ lists and thus the revenue of your home sales company. Becoming a real estate agent can be a valuable way to obtain an extra stream of income.
Not only can this translate into job security, but it also provides you with a strong source of leads for your future business.
A Reality Check to Help You Decide
The United States has more than 3 million actively licensed realtors.
Building successful realtor jobs require more effort and dedication than most people would assume though it comes with some perks. This is a quick overview of the position, which will guide you on making it to an upscale career path.
You might be surprised by the amount of entrepreneurial spirit necessary to succeed in this market. It is not an easy career to settle down on, but if you’re prepared for the challenge, it can be very gratifying.
Working with Real Estate Clients
You will spend a few hours daily managing clients who either are buyers, sellers, or renters. A last-minute mistake can affect your current plan.
You might spend years looking at an MLS listing site for any available product.
You can also demonstrate the property to buyer prospects and accompany your customers to inspections, meetings with lenders, closings, and anything else where you need a presence.
This allows agents to stay more focused on their work.
You have unlimited income potential
Real estate professionals make about 25 percent more earnings than the majority of their workers, but the maximum earnings are low. In business, the better your skill set is, the better it will pay off.
Since you control all transactional activities, you do not get paid at every job and the salary is capped or has no period before the salary.
You get to help make dreams come true
Imagine being able to show people the homes suited for lifestyles they love. A real estate agent ensures your clients have all of the most precious moments in their lives.
Your assistance may help them in their quest for the right home and capture every memory of their lives for countless years to come. Depending on whether the experience was enjoyable or motivating.
Cons of Being a Real Estate Agent
Having an interest in Real Estate has lots of advantages, especially in residential ones, but the disadvantage will be obvious to all prospective investors. Cons include:
Hard work
It doesn’t always come easy for an agent. When you’re not earning fast enough, you can get discouraged from making a property.
For attracting clients, real estate agents should work hard.
That means managing all sorts of transactions including incoming marketing, advertising, and sales from within a business unit. Thus it requires ambition and dedication to succeed in this occupation.
Slow periods
Real estate agents primarily collect earnings by managing their own real assets. In some cases, shorter months can affect people’s earnings because they lack some compensation.
If one sells real estate, they are paid no money back. If that is true, it makes sense to have a large profit potential even in low earnings, but it will fall short in the short term.
Slow periods are accompanied by lower-income, but you can make more money in the long term.
Some people need to be informed about their earning potential before they start this career.
It is not any different than other professions where you can make a good living if you do not recognize how much effort it takes to reach the top of your game.
Different personalities
In real estate, you will encounter different client groups from different personalities. Other cultures are friendly, but not always as easy to work with.
Others may feel the difference between emotions and their business.
For someone not able to handle an exchange or remain calm, that can lead to awkward and stressful events and traumatic outcomes. Real estate agents should have resilience and understanding for their customers.
Single transactions
Most of the time there will be no sales or repeat customers to your business. Your customers usually just need a simple home buying solution.
Although many clients may return to you in the future, those who use you tend to recommend your firm or family members who have not gotten in the way.
As a real estate agent, you will be competing with other agents who are also trying to make a sale, which constitutes a significant financial decision.
Longer hours
In real estate, some jobs require hours that can go on and they can work longer in other jobs. Without an organized schedule, it could take you several years if you don’t work weekends.. Even for your days off, you often miss time with family over weekends.
You must keep your own schedule, but you may frequently profit off from your own transactions due to the absence of additional services provided by another person.
Working longer hours is tough for some people.
Many agents are not able to make an additional benefit because of the inconsistent revenue stream. This can be challenging for those who are looking for more stability in their work, especially considering the potential earnings they just discussed above.
Stressful process
Though it may be fun to see a client moving into their new property, it can often be hard. Your clients may be frustrated in making difficult decisions. Although helping clients is rewarding, the profession involves many challenges.
Without fixed hours, you might end up working overtime
Flexibility will never make working in the same field as a career easier. The normal work week is 42 hours; however, many real estate agents who work during the day or night can work above nine hours for most of their clients.
When you spend time with family and friends during the day on holidays at school during the weekdays, you could forget about the family during a busy weekend. Don’t let your own business prevent you from being happy.
Transactions can be stressful for clients
Most buyers do not regularly buy a home and want more than money at their disposal. It can cause tension and confusion if a customer is confused about what to do. Working with people can sometimes provide satisfying and challenging jobs.
You have no safety net during slow periods
Because they pay you no money, your earnings vary monthly. If there are sluggish months, their takeaways may drop dramatically. The employment comes at the rate of a commission.
Such factors must be considered before taking the first steps towards becoming an agent.
Is it worth it to become a real estate agent?
Lastly, it is a question for you to think about whether or not this is a career in which you would like to invest.
New real estate agents think about becoming their own boss, which is normal when you’re working long hours, making little money, and feeling the stress of the job.
We always want to get the upper hand and feel like we can make a difference. It can be like what you want. You may not be satisfied with how much work it takes, but if you love real estate, there’s always pressure on your shoulders to shift your career forward.
Real Estate Agent License:
One of the most common questions a real estate agent asks is, “Why do I need a license?” The answer to this question will vary from state to state.
In some states, you must have a real estate license to own or manage rental properties. Other states require an agent’s assistance with buying or managing property.
In either case, it can be very advantageous to have the right to legally deal with real estate. You can be your own boss and work on your own terms.
Not all states require a real estate license to become an agent, but it is good practice to check with your state’s Department of Real Estate.
Cost of Becoming a Real Estate Agent:
The cost of becoming a real estate agent varies from state to state and among different companies that offer courses for this purpose. Many agencies have training programs that are free or very cheap, so if you’re just starting out, this is something to look into.
In most cases, you will not need any special schooling or training to become a real estate agent. Basic courses for this purpose typically cost between $100 and $300 and can be easily found in your local area.
On average, it takes about six weeks of full-time training to receive certification.
This is about six thousand dollars that you can save by avoiding the licensing process in some states.
However, if you wish to obtain a brokerage license in states such as California, this requires an average expense of $12,000, with the cost of training and classes for one week at $3,500.
Conclusion
The pros and cons of being a real estate agent can leave you thinking: Is it worth it?
After weighing the benefits and drawbacks, these conflicts will help you understand whether or not being a real estate agent is the right career for you.
The pros and cons of being a real estate agent are up to their interpretation, but after reading about both sides of the coin, it’s time to make a decision!
Having flexibility during the day is very important for some people. While you can not make as much money as a real estate agent as you would in a different career, it’s up to you to decide which is more important.
In general, the pros of being a real estate agent outweigh the cons. The real estate market is currently vibrant and offers great opportunities for those who are willing to take responsibility for their customers.
With the right training and licensing, you can have the chance to become your own boss in one of the world’s most exciting industries.
