Real estate is unquestionably one of the few careers where you can work any hours you want, make as much money as you want, and run your own business. Expert real estate agents are needed to help people make one of the most important decisions of their lives: whether to buy or sell their home. The housing market is constantly changing and evolving.
But what are the downsides of being a real estate agent? Is it hard to do good in real estate? In this blog, we’ll discuss the pros and cons of the field, so you can help decide if this is the right career for you.
What are real estate agents’ duties?
Before you can decide if real estate is the path for you, it might be good to know what exactly you’ll be doing in your day-to-day life. Real estate agents are licensed professionals who facilitate the buying and selling of properties. For buyers, they identify properties that match their criteria, schedule viewings, provide expert market advice, assist with offers and inspections, and guide them through the closing process. They manage paperwork, determine competitive listing prices, effectively market properties, manage offers and negotiations, and supervise the closing process for sellers. Additionally, real estate agents build strong networks, stay updated on market trends, and provide ongoing support to their clients throughout the transaction.
Are Real Estate Agents In Demand?
The real estate market and the economy as a whole always have a direct impact on the outlook for real estate jobs. That means two things: it will always wax and wane, and predicting its future is incredibly complicated.
The good news is that, unlike industries that depend on people’s disposable income, people will always need real estate agents. Even in a poor economy, folks need places to live and work. The life events that impact their needs often happen independent of the economy – marriage, kids, empty nests, retirement, business growth, and business change.
Even though the Bureau of Labor Statistics (BLS) anticipates real estate agent employment to grow at a slower-than-average rate of 2% annually from 2023 to 2033, there will still be approximately 46,000 job openings.
Do Real Estate Agents Have a Good Salary?
Real estate agents can earn a high salary, which varies based on experience, location, and other factors.
The top 10% of real estate agents made more than $119,590 as of 2023. The yearly median pay for real estate agents was $56,620, which comes out to about $27.22 per hour, according to the U.S. Labor Statistics Bureau. That is factoring all 50 states where pay, commission, and market vary widely. Naturally, the drawback is that you could make almost nothing. The property type and value, experience, location, working hours, and networking all have an impact on real estate broker commissions. As agents gain experience, their income often increases. Cities with higher demand may pay more than rural areas. Evenings and weekends are common work hours, and networking is crucial for meeting potential clients.
Living or working in those areas with the highest market prices also pays off. We’ll break that down further in the next section.
Which States Have the Highest Incomes for Real Estate Brokers?
The top five states for real estate broker salaries in 2024 are New York, California, Nebraska, Washington, and Delaware. This is because commissions will vary based on factors such as location, market, property type, sales volume, and experience levels.
Is It Worth Becoming a Real Estate Agent?
Absolutely! First off, the initial licensing process for becoming a real estate agent is less expensive and time-consuming than a lot of careers with similar earning potential. You don’t need a college degree to work in residential real estate. A state test, background check, application, and a series of state-mandated courses are all you need to start a residential real estate career.
Typically, licensing costs less than $1,500 if you enroll in online courses. In many states, it’s well below that. For example, in Florida, it’s as little as $350.
It doesn’t take long either. In most states, you can become a real estate agent in less than six months. Many people are looking for instant money flow in real estate due to potential revenues and a short setup period. However, many new agents overlook the hidden costs of starting a real estate practice, such as negative income in the first few years due to marketing, networking expenses, fixed costs like desk fees, professional dues, and continuing education.
And the downside of working on commission is that if you don’t sell, you don’t earn. It takes new agents anywhere from six months to two years to make their first sale. And although 5% of the selling price sounds amazing, that money isn’t entirely (or even mostly) for you, because of commission splits.
When you start a career in real estate, the first few years will be spent finding a niche, learning about the industry, developing a network, and building a reputation. It’s an investment in both the best and worst senses, as new agents may need a substantial nest egg for living and startup expenses, or they work part-time.
Numerous promising careers as real estate agents have ended as a result of being thrown off guard by this reality. That’s why it’s so important to prepare for it and decide if becoming a real estate agent is worth the effort.
How Do You Become a Real Estate Agent?
Since there isn’t a national real estate license, you must comply with the particular licensing criteria of your state.
Real estate agent training typically takes a bit of time if you factor in completing a program and obtaining a license. The price may differ from state to state. Additional startup expenses include Multiple Listing Service fees, business cards, sale signs, open house signs, and a website.
Make sure you have the time and resources to get your license and pay for your first expenses when determining whether a career in real estate is the appropriate choice for you. Successfully entering a real estate agent career requires self-starting, organization, responsibility, and long-term planning.
Real estate requires a strong sense of people skills, persistence, and optimism. Clients expect good listening, understanding, and effective communication. In real estate, long-term success comes from acquiring satisfied customers who will recommend you to others. Avoid discouragement and be a good listener to clients.
