Pros and Cons of Becoming a Real Estate Agent
Understanding the benefits, and potential drawbacks, of becoming a real estate agent can help you make the right decision for your career path.
Becoming a real estate agent kickstarts a rewarding career path.
You may be attracted to the unique benefits that real estate agents enjoy, like being your own boss and a high potential for generating income. However, it’s equally important to be aware of the potential pitfalls of a real estate career.
Becoming a Real Estate Agent? Learn to Balance the Pros and Cons
When you have an idea of what difficulties you may face when becoming a real estate agent, you can develop strategies to overcome the hardship.
Similarly, if you know the benefits you can access as an agent, you can form action-based goals to help you maximize your wins.
Let’s examine the pros and cons of becoming a real estate agent, as well as some solutions to help overcome the potential drawbacks.
#1. You Create Your Own Work Schedule
Pro: You Have Greater Flexibility in Your Career
Becoming a real estate agent means you become an entrepreneurial business owner. This means that you can control when, where, and how you work — rather than following the orders of a superior.
This allows you to create a work-life balance and enjoy the lifestyle that you prefer.
Con: You Could Work Too Much Without a Solid Schedule
However, being your own boss is not always easy. New agents may end up working more, and for a longer period of time, since they do not have any external parameters to shape their workdays.
Late nights, overtime, and working on your “off-time” can happen without proper time management.
Solution: Create a Task-Oriented Schedule Powered by Time Management
The best way to enjoy your flexibility without working after-hours is to cultivate a strong work schedule. Try to enforce a strict start and end time for your workday while maximizing your productivity through time management practices.
Create to-do lists, prioritize tasks, and use time-blocking to improve your experience when becoming a real estate agent.
#2. You Aren’t Limited to a Set Salary
Pro: You Have a Massive Potential for Income Growth
Becoming a real estate agent means that your salary is flexible.
Since real estate agents work off of commissions, the average service fee for an agent is typically 2.5% to 3% of the property’s selling price. If you close a deal on a home that sold for $350,000, the commission would range between $8,750 and $10,500.
According to NAR, the average REALTOR® closes twelve transactions per year. If you closed twelve transactions at the price point of $350,000, the annual commission would range between $105,000 and $126,000.
Since there is no limit to how many clients you take on per year or the price point of the properties, agents are able to see magnanimous financial growth in a short period of time.
Con: You May Experience “Dry Seasons”
Becoming a real estate agent means that your salary is related to how many deals you close.
When business slows down, it directly affects your profits and finances. While some periods can be incredibly profitable, others may not be. This lack of uniformity in income can be difficult for new agents to manage.
Solution: Prioritize Saving and Work with a Sales Funnel
The best way to optimize your finances as a real estate agent is to build up a savings account that can be used when needed.
Working with a sales funnel to manage your clients also allows you to maintain a continual stream of deals to help you sustain your business over time.
#3. You Get to Work Closely With People
Pro: You’ll Work With a Team to Help People Actualize their Real Estate Goals
Real estate agents work alongside industry professionals, like mortgage brokers and third-party entities, to help clients achieve their real estate goals. The industry is all about people, relationships, and working together to achieve closing.
Con: You Might Encounter Difficult Clients, Industry Professionals, and Service Providers
Becoming a real estate agent can mean dealing with difficult people.
Whether it’s a client, an agent, or another industry professional, agents will have to closely interact with many different people. Agents may face differing opinions on business, as well as personal conflicts.
Solution: Prioritize Great Service and Collaboration
As an agent, it’s important to prioritize collaboration and great service.
Reminding yourself of your goals and finding ways to resolve tension would be the best response in these cases. Gaining strong negotiation skills can also help you manage difficult situations.
For more insights about what a career in real estate could be like, explore other blogs from RealEstateAgents.com.
