The real estate industry offers one of the most rewarding careers in the market today. Helping families and individuals find their dream houses and turn them into comfy homes is a very rewarding task. Becoming a real estate agent also comes with its challenges.
There are many pros and cons of becoming a real estate agent that you may need to review before venturing into the industry. While the career has promising and lucrative returns, it requires ongoing sacrifice, hard work, and a lot of patience. Read on below to understand the pros and cons of joining the real estate industry.
The Pros of Becoming a Real Estate Agent
A career in real estate is life-changing and will offer you an opportunity for growth. There are many advantages to becoming a real estate agent. Some of these include:
Has a Greater Income Potential
The biggest benefit of joining the real estate industry is the infinite earning potential. Real estate agents don't have a limit to the amount of money they can earn. This is because they are paid on a commission basis.
Generally, a real estate agent is paid between 4%-6% of the total property price. This commission may be considerably large based on the current housing market values. For instance, if the average price of the home you're selling is $2,000,000, you will likely be paid $80,000 to $120,000 for selling a single home.
As an agent, you will also decide the number of clients you would like to serve. This means that you are responsible for how much money you can earn annually.
You Will Have a Flexible Schedule
Setting your own schedule is one of the benefits of being a real estate agent. You will have more flexibility as an agent than other professionals in different industries.
This flexibility allows you to balance your work and personal life and spend ample time with your family. As a parent, you can plan your schedule to allow you to spend time with your kids and attend major events in their lives.
It's an Opportunity to Be an Entrepreneur
Real estate agents operate like business owners. While in most states, an agent must work under the supervision of a broker, the agent runs their own business.
The agent will decide how many clients to serve, create a schedule, and set their working hours. The agent also decides how to divide available resources for maximum sales.
It's Easy to Get a Real Estate License
Are you wondering how to get your real estate license? Unfortunately, most people don't know how to become a realtor. The first step is ensuring you have a license to sell houses in your state.
Different states have varying real estate license requirements. However, you will need to fulfill your state's pre-licensing educational requirements, take the pre-licensing course and pass your state exams. You will then need to register with your respective state for a real estate license.
Knowing the steps to take to acquire your license helps the process go smoothly. Remember to check whether your state requires you to register with a brokerage firm before issuing the license.
The Disadvantages of Becoming a Real Estate Agent
The real estate industry operates like everything else in the world. Thus, there are numerous disadvantages to joining the industry. However, don't be discouraged because of these cons; use them to prepare yourself for a career in the industry.
Below are the cons of joining the real estate industry:
You Will Need to Be Patient to Succeed
The real estate industry will not offer you immediate gratification. You will need a lot of patience and hard work to succeed. Closing a deal may take months, and finding a client as a new agent may take even longer.
You may need to put in a lot of work, conduct open houses, and advertise your current listings to find prospective buyers. Unfortunately, most agents quit their careers within the first year.
You Will Experience Some Rejection
Rejection is one of the toughest aspects of joining the real estate industry. Most agents experience a lot of rejection from prospective clients. Approaching a stranger to offer your real estate services may not always go well.
Some people may not need your services. Others may already have their own agents. Rejection may leave you feeling unsuccessful and unproductive.
It's a Competitive Industry
According to statistics, there are over 1.3 million real estate agents in the U.S. Property sellers and buyers will always have a pool of options to choose from. Thus, you will need to work extra hard to stand out from your competitors.
The best way to achieve this is by defining your goal, finding a niche, and targeted advertising. Start by selling property to the people closest to you. Most agents sell their first home to their inner circle.
Working With People Is Challenging
Working with people is very challenging. In your realtor career, you will work with clients, other agents, and several third parties. Interacting with these people may not be your cup of tea. Different people have varying ideas and experiences, which may not always align with your working styles.
As an agent, you must learn how to collaborate with others, negotiate and resolve conflict while still upholding your professional standards. This is always challenging for most people.
Now You Know the Pros and Cons of Becoming a Real Estate Agent
There are numerous pros and cons to becoming a real estate agent. Understanding these pros and cons of the industry will help you make an informed decision about your future.
However, don't let the negative aspects of being an agent outweigh the positives. Instead, use these cons to mentally prepare yourself for the work it takes to succeed in the industry.
Check out other posts on our website for more career tips.