Weighing the Pros and Cons of a Career in Real Estate
From meeting new people to making a commission, entering the real estate industry can be an exciting journey filled with unique opportunities and challenges. But like any career path, real estate comes with its own set of advantages and disadvantages. Let's delve into the pros and cons to help you decide if a career in real estate is the right move for you.
Pro: You’ll Be Your Own Boss!
Real estate agents are independent contractors working under a brokerage. Many prospective agents look forward to the pride of entrepreneurship and steering their own professional lives.
Con: You’ll Be On Your Own
As an independent contractor, you’re responsible for your healthcare, tax payments, critical business materials, and many other aspects of work life that are traditionally handled by an employer.
You’ll be learning a new industry while also handling responsibilities you’ve never had before. This is why many newbies end up being overwhelmed early on.
All your work will be self-directed, which means you need to judge where to put your time and be motivated to follow through. If you’re sick, the work won’t get done. If you don’t sell anything, you won’t get paid. If you forget to submit estimated taxes, you’ll be hearing from the IRS.
Some of these downsides can be mitigated by joining a brokerage that operates on a team structure. You’ll still have many new responsibilities, but you’ll have the support of other agents if you can’t make an appointment or you’re feeling under the weather.
Pros: There’s No Limit on Your Income
As a real estate agent, you get paid a percentage of every property you sell, and there’s no ceiling on the amount of money you can make.
The unlimited earnings potential in real estate is a big attraction to most people. Many prospective agents dream of six figures, and there are plenty of highly paid agents to point to as examples.
Cons: You Risk Not Getting Paid At All
Getting paid on commission means that if you don’t sell anything, you won’t get paid at all. It takes time to get your real estate practice going, and in the meantime, you’ll need to pay your bills and cover business expenses.
It’s not unusual for the first year or two of your career to be a net loss. And when a payday does come, you’ll have to manage your money very carefully for potential lean times ahead. The housing market may not always support regular transactions, no matter how hard you work.
Additionally, many prospective agents believe they’ll be taking home 5-6% of the average home price in their area. In reality, you’ll be splitting your commission with other real estate professionals and paying a chunk of what’s left toward taxes and business expenses.
That’s why, at the end of the day, the national average income for real estate agents is around $46,000, not $100k+.
Pros: Your Hours Are Flexible
As a real estate agent, you won’t have a set schedule routine or a fixed routine. Your job won’t be 9 to 5, and every day will be different.
On the upside, this can mean that you can choose to put your time toward other endeavors. You can make sure you’re always there to pick your kids up from school, or you can work a second job to help mitigate your irregular income.
Cons: You Don’t Really Choose Them Yourself
In order to be successful as a real estate agent, you need to be available whenever your clients have the time. This means a lot of evenings and weekends that you traditionally considered “off duty.”
This can make the reality of supporting yourself with another job very tricky, and it can interfere with family time. Some are also caught off-guard by the fact that they’re working more hours as a real estate agent, not less.
Ready for the Challenge of Your Next Career?
Our purpose today wasn’t to scare you off of your next career. We simply want you to be prepared for the reality, so you have the opportunity to thrive.
If you’re ready to tackle the challenges of working in real estate, the first step will be completing your pre-license education. Each state requires prospective agents to complete specific coursework to prepare them for their state’s real estate licensing exam.
Taking these pre-license courses online with a reputable training provider like us will give you many advantages. It’s less expensive than an in-person real estate school, and you won’t have to commute to a fixed location and attend class on a regular schedule. You’ll be able to study at your own pace, whenever and wherever you have an internet connection.
Ready to get started? Enroll in your state’s pre-license courses today!
