The Pros and Cons of Being A Real Estate Agent

Is being a real estate agent a good job? The real estate industry has long captured the imagination of those seeking financial freedom and a career full of exciting challenges. As shown in multiple TV shows and channels, real estate promises lucrative deals, flexible schedules, and the thrill of helping people find their dream homes. But like any profession, the life of a real estate agent comes with its share of highs and lows, triumphs and tribulations. Are you truly prepared for what lies ahead?

We’ll take you on a journey based on our experience gained as one-time novice agents ourselves to launching a multi-million dollar producing brokerage. This guide will provide valuable insights to help you make an informed decision about real estate as a career. Whether you’re a seasoned professional considering a transition or a newcomer eager to enter the field, becoming a business owner takes hard work and skill.

The Advantages

First, let’s delve into the bright side of being a real estate agent. The compelling perks can lead to personal and professional satisfaction. Here are some of the advantages of pursuing a career in real estate.

Flexibility

Ditch the 9-5 or negotiating with the powers that be to keep your remote work schedule. Real estate agents have total control over their schedules. Plan around personal appointments and vacations without seeking permission or taking time off–as long as it doesn’t interfere with client meetings and deadlines. Work from home or come into the office. It’s really up to you! Working on your schedule is one of the major benefits of being a real estate agent.

Unlimited income potential

The real estate industry has no ceiling on your earning potential because it’s primarily commission-based income. The more effort you put into it, the greater your income will be. As you gain experience and build a client base, the earnings potential grows exponentially. With commissions usually in the thousands of dollars, there is high income potential for those who put in the work.

Sample Average Salary:

Be your own boss

Tired of micromanagement? Stuck down by red tape? As a real estate agent, you are an entrepreneur who can set your own goals. Set the rules, determine what process works for you, and make the crucial decisions that will shape your career. Perhaps one day, you’ll be in charge of a powerhouse real estate team with dozens of employees working under you.

The power to help others

There’s something special about helping someone find their dream home. Buying property is a substantial financial investment, the largest one most people make in their lives. The ability to help that young couple find their first home or to bring fulfillment into people’s lives by helping them land their dream home on the waterfront–that’s priceless.

Diverse career directions

The real estate industry is not just selling homes to people. Once you get your feet wet, you’ll see how having a real estate license can take you in many directions. Sure, you can stick with residential real estate and represent buyers or sellers. Become a leader in your local office or advance your licensing to launch your own real estate brokerage. 

Others pivot into commercial real estate, which is incredibly diverse and specializes in properties (retail, hospitality, medical, etc.) and niche branches like Capital Markets. Become a property manager of a multi-family complex or a shopping mall. 

And there’s always real estate development, where your inside knowledge of trends can guide the look and purpose of new buildings and whole communities. Along the way, you may become a real estate investor, using your industry know-how to find investment properties, rehabilitate them, and build your wealth while housing your community.

Easy On Ramp

You don’t need to go to college to become a real estate agent. While every state has different licensing requirements, the basics are a high school degree, taking pre-license real estate courses, and passing a real estate license exam. You can be at work selling homes to clients within a few months, and usually for just a few thousand dollars invested in training.

The Challenges

As with any profession, there are career challenges. Be aware of these potential drawbacks to working as a real estate agent. They can be surmounted by having a business plan in place. But if you don’t like these drawbacks, a real estate career may not be best for you.

Commission-based pay

While the earning potential is unlimited, the real estate commission structure means you fish to eat. Translation: your income is directly tied to your performance. Sometimes, deals fall through, or you don’t have any sales for an extended period. 

That means you’ve got to be adept at budgeting and saving for a rainy day. You also need reserves for fronting costs, like paying photographers for those home photos.

And not all of that commission check will be yours. Depending on the contract terms, it could be split between the seller’s and buyer’s representatives. Real estate broker’s fees and business costs will further reduce your cut. That’s the marketing costs incurred in the sale, the gas driving clients around, and funding all your lead generation efforts (website, social media ads, group memberships, etc.). 

Upfront investment in yourself

Becoming a real estate agent means outlaying cash on your initial licensure and training. While the entire process shouldn’t break the bank, you will need to budget for it. 

Generally, the costs include:

• Real estate school courses.
• Licensing exam fees.
• Membership in a local Multiple Listing Service (MLS) board.

These fees happen well before your first commission check. 

The exact amount to get a real estate license varies by state. For instance, your background check, exam application, exam fee, and license fee total $173 in South Carolina as of 2023. In North Carolina, the license application and exam fees total $156. Neither amount includes the required pre-requisite courses, where costs vary by their provider. 

Plus, once you are licensed, there are ongoing expenses of professional development classes, license renewal fees, professional organization membership fees, and networking events to pay for. Some of these, like continuing education courses, are required and help keep your skills sharp. 

Independence can lead to isolation

Sure, being able to work whenever and wherever you want is one of the biggest benefits of being a real estate agent. But that doesn’t negate the fact that it can also lead to feeling isolated. You’ll spend a lot of time working solo between meeting clients. That’s time spent doing paperwork and marketing tasks. 

Finding ways to stay connected with colleagues and build relationships within the industry is essential. And as a new real estate agent, you’ll want to be around more experienced professionals to glean their tips and tricks. Having a mentor or a coach is vital to long-term career success. 

High competition

Some markets are saturated with real estate agents who want your clients. Get ready to compete against other agents, national agencies, and online platforms, where you’ll have to pay to be promoted as an agent. 

To rise above, differentiate yourself from the competition by developing a unique selling proposition and building strong client relationships. Learn how to achieve five-star reviews and leverage them to grow your real estate business. Grow your sphere of influence and reputation keep leads coming your way.

Constant learning

Real estate laws, regulations, and market trends can change without warning. Successful agents must stay on top of industry changes and continuously educate themselves to stay ahead of the game. Upskilling is how you become a better professional and provide more value for your clients.

Plus, all states require real estate agents to take specific continuing education hours to keep their licenses. 

These real estate education requirements vary by state. In South Carolina, it’s ten hours every two years, including one four-hour mandatory course as set by the Commission. You’ll need to make the time for professional development before the deadline creeps up on you.

Irregular hours

While the flexibile hours of real estate life is appealing, it also means working non-standard hours. Accommodating client schedules and making property showings often means working evenings and weekends. That can interfere with family time.

It’s essential to maintain a healthy work-life balance and set boundaries for yourself, but you also need to be available to clients. Not everyone can find that happy middle ground where they nurture relationships with clients while having a fulfilling personal life.

Client personalities

There are all kinds of people out there, as you’ll learn quickly when selling homes to clients. Part of becoming a licensed professional is learning to manage client expectations and working with different personalities. Some clients expect a more hands-on approach than others. Real estate is a people business first, so you’ve got to be comfortable working and communicating with people.

Market fluctuations

Experienced agents will tell you how dramatic changes to the economy can derail a stellar business cycle. There may be times when the market is booming and other times when it’s a competitive market to find listings or home buyers. Massive shifts in the economy also directly impact real estate markets, changing the number of buyers or homes for sale.

To be ready, have a financial plan in place for these fluctuations. Diversify your services to help weather any downturns. Leverage networking opportunities when things are going well so you have options in leaner times.

Pros and Cons of Being A Real Estate Agent

From the rush of closing a deal to the hurdles of market fluctuations, the life of a real estate agent is multifaceted and dynamic. But for some, it is a life-changing career opportunity. Becoming a licensed agent requires hard work, determination, and a passion for helping others. With the right mindset and a strong understanding of the challenges and rewards, becoming a real estate agent can be a fulfilling and lucrative career choice. 

If you’re ready to take on these challenges and embrace the opportunities of being your own boss in an ever-evolving industry, welcome to the real estate industry. Your journey as a rewarding career begins now!  Check out a few of our most recommended resources for newer real estate professionals:

• Your First 100 Days As a Brand New Real Estate Agent
• Master Your Public Speaking
• 4 Must Have Tools To Enhance Lead Generation
• Back to the basics