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!
Becoming a Real Estate Agent Quiz
Take our quick quiz to get an idea if this career is right for you! This is a simple 15 questions quiz that can be completed in less than 2 minutes.
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 can negotiate a commission rate of 1% - 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 $10,000 - $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.
Additionally, you are guaranteed to work from anywhere you want. This is ideal for people who want to earn money while taking care of their children who are also at home during working hours.
#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.
#6. Full Control Over Your Growth
There's something to be said about control and ownership as an agent.
For those who see the potential in all opportunities, this is great fit. They can make their career exactly how they want it to be.
But being a real estate agent goes a little bit further than that. It becomes a lifestyle choice. Work and personal life will tend to meld together and allow you to align it however you want.
In other words, your career will proportionally grow with you – whatever investment you make in yourself pays dividends in your career.
You have the opportunity to lift up your family but also your community too. Whether it's direct monetary investment in your community, like sponsoring the local little league or finding the perfect home for people who settle down in, you can do it.
Not only that, but being real estate agent can grow into different fields within the industry.
You can use it as gateway to house flipping, real estate investment, starting your own brokerage and hiring locals.
It's one of the only careers that can form in whatever shape you need it to in order to achieve the life you've always wanted.
#7. Minimal Education Requirement
Most career paths require years of education. If you want to become a real estate agent, you don't need an extensive education.
You don't need a college degree to get started, and some states don't even require a high school diploma or GED. You just need to complete a pre-licensing requirement through an accredited real estate school.
Most states' educational requirement is doable within 3-months. When you complete it, you just have to pass the real estate exam. After passing the exam, your license is issued to you – that's quick!
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.”
#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 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. Brokerage Cuts Blow
I'll be honest, splitting your commission check with your brokerage blows.
It's why some people will start their own brokerage and assume all legal responsibilities. But as a newbie, I wouldn't recommend doing that.
Some brokerages will take 40% of your commission check, while others will take 30% or 20%. It all depends on what you get out of it.
Usually, when a brokerage takes a portion of your commission, it's because they are offering you high quality services that others can afford. That's really helpful for new agents.
But, it can get old after a while.
As a new agent, I recommend you roll with the punches and pay the cut (so long as the brokerage resources are worth it.)
Some brokerages will even have a cap on their cuts. What I mean by this is, once you exceed a certain number, you can keep the the full cut of your commission. That rocks!
#5. Hard to Work With Some People
One downside to working with people: you deal with some who hard 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.
#6. There are Costs to Getting Started
Like every career, there are cost and fees to becoming a real estate agent. Comparatively, these are minimal.
Unlike other careers, this one is commission based. Most new agents won't see their first check until 6-months after they start. Sometimes even more.
You might not be able to make back the costs you spent on school, exam fees, board fees, desk fees, etc for a good portion of your first year. This is very intimidating for people – rightfully so!
There's good news, though. Once you start earning commissions, the income is life-changing.
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.
