By Jasmine Eddy | 10.12.20
Becoming a real estate agent is a life-changing career opportunity.
You might be wondering if becoming a real estate agent is worth it to you. To help you decide, we put together the ultimate real estate pros and cons list.
In this article, we review the perks of becoming a real estate agent and what turns people away. In the end, you decide if this is the career for you.
With that said, let’s dive in!
Pros of Becoming a Real Estate Agent
There are great perks to becoming a real estate agent. Most people start this career because they aren’t happy with their current career or they want limitless freedoms that becoming a real estate agent brings them.
So, here’s a list of the pros of becoming a real estate agent.
#1. Income Potential
One of the greatest advantages of becoming a real estate agent is the unlimited income potential. As an agent, there is no limit to how much you earn. That’s because real estate agents work for a commission.
Typically, the agent walks away with 2.5% – 3% of a property’s sale price.
Depending on the local housing market prices, the commission can be substantial.
For example, in areas where the average home price is $1,000,000, the agent walks away with $25,000 – $30,000.
That’s for a single sale.
Real estate agents decide how many clients they take on, which means they are in charge of how much they can make per year.
#2. Flexible Schedule
Real estate agents can set their own schedules.
This flexibility gives agents the opportunity to fit work around their lives easier than other professionals.
For agents with children, flexibility is a major benefit of the career. Parents can attend important events and spend more quality time with family.
#3. You are a Business Owner
Real estate agents are entrepreneurs.
Although they must work under a broker to legally sell real estate, they run their own business.
Agents can create their own schedule, decide what clients they work with, and how much they work.
Many brokerages have resources to support their agents with marketing and lead generation. But, each agent decides how they use these resources in their business plan.
#4. It’s a People Business
Real estate is a people business and agents who enjoy working with others do their best.
You meet people from all walks of life when you work as an agent. From first-time homebuyers to investors, there are many clients who have a need in real estate.
Agents can’t sell real estate without people who are ready to buy or sell. So, putting your clients first is imperative.
#5. You Help People Achieve Their Dreams
One of the most underrated benefits of becoming a real estate agent is the reward.
Agents have the power to help people achieve their dreams.
They help sellers get the best price possible for their property and often assist them with their next steps. It’s rewarding to work with home buyers and home sellers.
Many of whom are striving to achieve an important life goal.
The opportunities that are available to people through homeownership are endless. The amount of gratitude they express when they get the keys to their first property is touching.
Of course, closing escrow is a great experience, because everyone leaves happy and full of gratitude.
Cons of Becoming a Real Estate Agent
Like everything, there are also disadvantages to becoming a real estate agent. Don’t let these cons ruin your dream career. Instead, use these as the items you need to prepare for when you get started.
Here are the cons of a real estate career.
#1. Success Requires Patience
One of the biggest cons of this job is the amount of patience it requires.
It may take a new real estate agent months to find their first client or close their deal.
There is a lot of work that agents do before they ever see the profits, such as prospecting, advertising, and conducting open houses.
In fact, most real estate agents quit in their first year. But the reason why they quit is that they don’t have a plan.
Bonus tip: Read the article The First Year Real Estate Agent Survival Guide to get your blueprint for success in your first year.
#2. You Experience Rejection
Another tough part of becoming a real estate agent is dealing with rejection.
Agents get rejected a lot.
They are prospecting perfect strangers as well as their sphere of influence. Not everyone is going to need a real estate agent.
As long as real estate agents don’t allow rejections to stop them from pursuing new leads, they’ll be successful.
Bonus tip: Every time you get a “no,” you’re one step closer to getting the “yes.” Read how to deal with rejection like a pro by clicking here.
#3. This Job is Competitive
There are thousands of real estate agents in California. In any given area, buyers and sellers will have several options for a real estate agent.
Agents have to work hard to differentiate themselves. One way to do this is to find a niche, a particular area, type of buyer, or type of property.
But, the best place to start is to tap into your sphere of influence. Agents should get the word out to their friends and family. Often their first deals will come from those in their sphere.
Bonus tip: Create a real estate niche to reduce your competition.
#4. Escrow Challenges
Escrows can be a challenge.
They could take more than 30 days to close regardless of what’s in the contract. Agents need to roll with the punches, tackle issues as they arrive, and keep their eyes on closing escrow.
Agents need to do what they can to keep escrow intact and do what is best for the client.
As long as agents stay professional, the challenges will resolve.
#5. Hard to Work With People
Finally, the downside of working with people is that they aren’t always easy to work with.
Agents will interact with agents, clients, or third-party entities who are not their cup of tea. People have differing ideas on ways to do business that may not align with those they work with.
Agents need to learn how to negotiate, collaborate, and diffuse situations as they uphold their own professional standards.
Final Thoughts on Becoming a Real Estate Agent
Becoming a real estate agent has its share of pros and cons.
Don’t let the cons rain on your dreams. This career is for those who are dedicated, resilient, and committed to success.
There will be hard times for those who start a real estate career, but the reward and freedom are worth it.
If you are committed to this career and doing the best you can, then nothing will stop you from succeeding and achieving everything you want.
Don’t let the cons outweigh the pros.