Becoming a real estate agent is something that many people think about doing in their lives. However, understanding the pros and cons of real estate is incredibly important. In this article we will cover the pros and cons of being a real estate agent in depth.
Pros Of Being A Real Estate Agent
1. You Get to Work With People
One of the biggest pros of being a real estate agent is getting to interact with many different people. You will have the opportunity to work with the public and help them achieve their dreams. If you are someone who relishes these opportunities it could be the job for you.
Buying a home is one of the most important moments in a person’s life. As a real estate agent, you get to be a part of that for numerous people and families. This can be an incredibly rewarding experience and can make the work worthwhile for you.
If you like to help people and likes to be involved with the public, real estate is a good option. There are many different chances for you to meet all kinds of different people. This can be a fun and exciting challenge for the right personality type.
2. You Get to Work With Houses
If you have passion for homes and interior design, this is one of the pros of being a real estate agent. Your entire job centers around looking at new homes and working with them with your clients. It is a wonderful opportunity to spend your days doing something you love for a living.
There are two types of real estate agents: buying agents and selling agents. If you decide you want to be a buying agent, you will primarily work with the homes. This means staging them for showing and designing the interior to be as enticing as possible for the buyers.
Becoming a buying agent is a dream come true for someone who is interested in interior design. Not only will you get to practice your passion, you will also be able to market the homes and list them. For the right person, this is a great opportunity to combine your passions with commerce.
3. You Can Set Your Own Hours
For many people, real estate is a job that they do on the side while they work other jobs. This is because the schedule is extremely flexible and can cater to your needs. This flexibility is one of the biggest pros of being a real estate agent.
Most real estate agents work outside of the regular 9 to 5 schedule in their day to day lives. This is because you will need to be available when your clients are available. This is usually outside of work hours, so you will have the time to tend to other business during the day.
Your work schedule will be even more flexible if you are an agent who works independently. Agents who work with brokers tend to have more rigid hours, but still have some freedom. Your state’s requirements will dictate whether or not you must work with a brokerage.
4. Real Estate Can be Very Lucrative
You may have heard that real estate is a booming industry and that the housing market is on the upswing. This is completely true in most states and this means that agents are needed all over the country. Because of this, real estate can be incredibly lucrative if you have the work ethic and dedication.
Real estate agents tend to work on commission for the most part. This means that you get a percentage of the final closing price on a property you help sell. Because of this, there are no limits to the amount of money you can make as a real estate agent.
Because you can usually dictate your own schedule, there is no limit to the amount of money you can make. The only ceiling is put in place by your particular time and ambitions. If you are a talented salesperson, you can make a lot of money and have fun while you do it.
5. There is a Low Cost of Entry
Unlike many careers, it does not cost an arm and a leg to get licensed to be a real estate agent. You will not have to take out student loans in order to get your real estate education. Most people will be able to pay for it out of pocket on their own.
Real estate education is generally done in less than two months for most states. Additionally, it will take another month or so to pass the real estate exam and get licensed. All in all, you can usually get your real estate license in around three months.
Because of this, the cost of education is much lower than in other institutions. Some of the more expensive schools are around $1,000 for the entire package. However, in some states, you can get licensed for less than $300 altogether. This is much more doable for many more people.
6. You Get to Travel for Work
Most real estate agents do not spend the majority of their days behind a desk. They get to get out during the day and go to different locations. This freedom is one of the biggest pros of being a real estate agent.
If you are someone who loathes the idea of being trapped in an office, real estate is a good choice. You will be out and about showing homes to clients or going to different houses for research. This is a dream come true for anyone who likes to be sociable and out in the world during the day.
The ability to get out of an office environment is one of the main reasons people become real estate agents. More and more, people are rejecting the idea of working at computers and longing for more freedom. If this sounds like you, becoming a real estate agent might be a good career move.
Cons Of Being A Real Estate Agent
1. There Can Be a Lack of Security
Since most real estate agents get paid through commission, there can be a lack of stability. Markets change and things aren’t always going to be steady for you, especially starting out. If you are someone who needs a steady paycheck, it may not be your best option.
This lack of security is one of the biggest cons of being a real estate agent. Most people want some kind of a guarantee of income when they are starting a new career. However, with real estate that is not always possible.
As an agent, you are at the mercy of your local real estate market. If things take a sudden downturn, you may find yourself not making as much money as before. This could be a major problem for people who are not used to this kind of dynamic compensation.
2. It is a Lot of Work
There is no doubt that being a real estate agent is not for people who don’t like hard work. You will have to hustle quite a bit in order to see success. This is especially true early on when you are trying to get established as an agent.
Most new real estate agents struggle to find clients in the beginning. Even if you are working with a reputable brokerage, you will still be responsible for generating leads. This can result in long working hours and a lot of time spent in the office and out in the field.
The amount of work that it takes is one of the most prominent cons of being a real estate agent. If you are not someone who has time to dedicate, you may not be as successful as you would like. This could be a major turn off for some and may make it difficult to reckon with.
3. You Must Pass a Background Check
In most states, you must pass a background check in order to become a real estate agent. You will be handling incredibly sensitive information in your day to day. Because of this, your state’s Real Estate Commission will want to make sure you have a clean criminal record.
For the most part, you can not have a violent felony conviction if you want to be a real estate agent. This might disqualify some people who might otherwise be good at the job. This is one of the biggest cons of being a real estate agent.
However, there are always exceptions to the rule. If you are honest with the real estate commission and have all your documentation, they may allow it. The only way to know is to check with your real estate instructor or the commission itself.
4. You Must Take an Exam
The state and national real estate exam is a major source of anxiety for a lot of people. It is one of the final steps toward getting licensed as a real estate agent. For many, it is the most difficult part of the entire process.
The real estate exam can be fairly difficult to pass for some people. Real estate is a very complicated subject and requires a lot of memorization. This is why some people have trouble passing it the first time.
If you are someone who is a nervous test taker, you may want to invest in an exam prep course. Many real estate schools offer these prep courses and they can be very helpful if you are anxious. Being as prepared as you can possibly be can help you have more confidence when the test day comes.
5. You Must Have Social Skills
Real estate is an incredibly social industry for the most part. You must feel comfortable talking with people and meeting new people all the time. If this does not describe you, you may want to look into a different industry.
As a real estate agent, you will be meeting people and dealing with the public all the time. This is why having social skills is an essential aspect of the job. Not everyone is going to be good at this, so it may be a downside for you as an individual.
One of the cons of being a real estate agent is that you are essentially a skilled salesperson. While this might be a pro for some people, for others it may not sound like a good job. Because of this, it is important that you know where your skills lie and what you are good at.
Pro and Cons Of Being A Real Estate Agent Final Thoughts
While there are many pros and cons of being a real estate agent, it can still be very rewarding. If you are interested in the industry and feel that you are suited for it, it could be a good career. It has been very lucrative for many people all over the world.
All in all, the pros and cons of real estate tend to balance each other out. Knowing what kind of person you are and where your skills lie can help you make a decision. If you do enough soul searching, you can find out whether or not real estate is the industry for you.