You’re reading this because you’re aspiring to become a successful real estate agent. But, have you considered the pros and cons of being a real estate agent in the first place?
If the answer is no, this article is what you need to get a glimpse of what’s lying ahead of you. So, before you ask ‘should I become a real estate agent?’, take a look at this list of pros and cons of being a real estate agent:
Related: The Daily Habits of the Most Successful Real Estate Agents: Hear from the Experts
6 Pros of Being a Real Estate Agent
#1. Flexible Hours
Becoming a real estate agent means becoming your own boss (unless you work for an agency). This means that you get to schedule your work time in a way that leaves room for taking care of other things. Got a doctor’s appointment? You get to arrange your work around it easily. There’s no one to tell you what time you need to be there. Most importantly, there’s no need to clock in or out of your working hours!
#2. Helping Clients Accomplish Their Dreams
Being an agent means that you get to help real estate clients achieve their goals. Whether they’re home buyers, sellers, or even real estate investors, they all need you to seal the deal. There is more to a real estate agent career than the money. The personal and emotional side of seeing your clients and witnessing a major event such as buying a property is worth the hassle. After all, this might serve as motivation to accomplish more for yourself.
#3. Building Knowledge and Reputation
There is no doubt that part of your knowledge will come from the real estate classes you’ll take to qualify for being a realtor. However, there is more to it than just what you’ve been taught in class. It should not bother you, though. It is easy to acquire more in-depth knowledge in no time if you stay engaged in the real estate market. Moreover, it is easy to build a reputation for yourself as an expert if you acquire that knowledge and show passion towards what you’re doing. People need to trust you, and there is no easier way to gain their trust than knowing what you’re doing and showing your passion.
#4. Plenty of Space to Grow
Since you are your own boss, there is plenty of ways you can decide to grow. Of course, at first, you might decide to work at a realtors office or even start on your own without an office due to high costs. But, eventually, proving your competence in the real estate industry will take you to places you’ve never been to before. Growing your career can help you open up your own firm. Or, you might decide to invest in real estate yourself. So, really, there is an opportunity to grow and diversify your talent!
#5. The Income Potential
The good thing about being a real estate agent is the income potential. Not only is there ‘potential’ but it’s unlimited as well! In other words, there is no hourly rate for your work. Of course, you get paid through commissions, but this means that it’s up to your motivation and creativity to decide how much money you make. A lot of your work will depend on referrals which means a real estate network is essential. So, the more you use your socializing and networking skills, the better it is for you in terms of finances.
Want to make more money? You need to work with qualified leads to close more deals. Learn how Mashboard can help.
#6. Different Fields, the Choice Is Yours!
You can become a commercial real estate agent, or you can become a residential real estate agent. There is plenty of opportunities for both streams, and you get to choose. Both have good income potentials if you use your skills the right way.
4 Cons of Being a Real Estate Agent
#1. The Hassle of Being a Real Estate Agent!
One pitfall of being a real estate agent is the hard work (unless you’re a workaholic like me!). Establishing yourself in the business is not as easy as it might seem on the outside. In fact, the dropout rate is pretty high amongst new real estate agents. Although this means more opportunities for those who survive, it also means that you’ve got to survive first!
From real estate marketing to lead generation, you’ll have to work on honing a few different skills and optimizing several systems. Otherwise, there is no way to survive in the business which explains the dropout rate for this career.
Related: 5 Biggest Challenges Real Estate Agents Face Today
#2. Fewer Transactions per Client
What we mean by this is that most of your customers will hire you to finish one deal or one transaction. Many of them are families who are buying their dream house. Others are beginner real estate investors who will need some time until they can buy the second investment property. But this too is not a guarantee that they’ll hire you the second time. Therefore, it is necessary that you establish good connections to reserve a spot amongst the top real estate agents in your area.
Related: Should Real Estate Agents Work with Homebuyers or Investors?
#3. No Guaranteed Income
Another downside of becoming a real estate agent is that you cannot predict how much money you’ll make unless you seal a deal for sure. In other words, you can’t just say that all potential prospects are actually qualified leads. And not every prospect is guaranteed to follow through with a deal. Moreover, your paycheck is the commission you receive at the end of each deal, which means that the slow months are going to bring less income. So, to secure yourself, save some money to help you during slow periods so that you don’t find yourself in a financial bind. Or, it also helps to find another source of income.
#4. You Might Need to Become a Realtor
In this field, acquiring a real estate agent license is not always enough. To improve your chances, you must consider becoming a realtor as well. What’s the difference?
The only difference between an agent and a realtor is that the latter is a member of the National Association of Realtors (NAR). This means that they’re bound by the NAR’s code of ethics. Therefore, in order to become a realtor, you must first take courses on the code of ethics. Of course, this is a great way to capitalize on the title since NAR is a trademark. However, you must consider the costs of becoming a realtor. Not only will you pay for classes to become a real estate agent, but the further courses in addition to the membership fees are also part of your expenses.
Now that you know the pros and cons of being a real estate agent, do you think you can work through the challenges and find your way among real estate professionals? Let us know in the comments below.
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