Weighing the Pros and Cons of a Career in Real Estate
Considering a career in real estate? From building relationships with clients to earning commission-based income, stepping into the real estate world offers plenty of exciting opportunities.
But just like any profession, it comes with both perks and pitfalls. Whether you're drawn to the flexible schedule or curious about the potential income, understanding the pros and cons can help you decide if this path aligns with your goals. Let’s break it down.
How to Become a Real Estate Agent
Let’s start with what you need to become a real estate agent.
Becoming a licensed real estate agent is a structured process that varies slightly by state, but the general steps remain the same. Here’s what you can expect:
1. Understand Your State’s Requirements
Each state has its own licensing requirements, including age, education, background checks, and exams. Start by reviewing the real estate commission website for your state to understand what’s needed.
2. Take a Pre-Licensing Course
Before you can take the licensing exam, you’ll need to complete a state-approved pre-licensing education program. The number of required hours varies. Some states may require as few as 40 hours, while others may need over 100.
3. Pass the Licensing Exam
Once you’ve completed your coursework, you’ll need to pass the real estate exam, which typically includes both national and state-specific questions about laws, practices, and contracts.
4. Activate Your License
After passing the exam, you’ll submit your application, pay the required fees, and officially become licensed in your state.
5. Join a Brokerage
New agents must work under a licensed broker to legally practice. Choose a brokerage that offers support, training, and growth opportunities as you begin your career.
6. Consider Joining the National Association of REALTORS® (NAR)
While not mandatory, joining NAR allows you to use the title “REALTOR®” and access valuable tools, resources, and a professional network.
7. Keep Learning and Stay Compliant
Continuing education is often required to maintain your license and stay up to date on legal changes and industry best practices.
How Hard Is It to Get Your Real Estate License?
Getting your real estate license isn’t necessarily hard, but it does require time, commitment, and preparation.
The difficulty depends largely on your state’s requirements. Some states, like Massachusetts, require as little as 40 hours of pre-licensing education, while others, like Texas, require up to 180 hours.
After completing the coursework, you’ll need to pass a state licensing exam, which typically covers both national real estate principles and state-specific laws. The exams can be challenging, especially for those unfamiliar with legal terminology or test-taking strategies, and pass rates vary widely.
Beyond passing the test, the real challenge often comes after you’re licensed. Building a client base, marketing yourself, and managing a commission-only income can be overwhelming for new agents.
Still, for those who are self-motivated, organized, and willing to invest the effort, becoming a real estate agent is a very achievable goal.
What Is the Average Salary of Real Estate Agents?
According to Indeed, in the United States, real estate agents earn an average annual salary of $99,909, with earnings ranging from approximately $50,641 to $197,112, depending on factors such as experience, location, and sales performance.
For example, in a state like California, salaries can be higher due to the state's robust real estate market. In Los Angeles, CA, the average salary is $104,358 per year.
It's important to note that real estate agents typically earn income through commissions, which are a percentage of the property's selling price. These commissions are usually split among the listing agent, the buyer's agent, and their respective brokers.
The Pros and Cons of a Real Estate Career
A career in real estate can be incredibly rewarding, but it’s not without its challenges. If you're thinking about becoming a real estate agent, it's important to have a clear understanding of both the benefits and the trade-offs. Here’s what you should consider:
Pro: You’re Your Own Boss
Real estate agents are typically independent contractors working under a licensed brokerage, which means you get to run your business the way you see fit.
You choose your hours, your clients, your marketing strategies, and how you grow your career. For many, this entrepreneurial freedom is one of the most appealing aspects of the job.
Con: You Work Alone
That independence also comes with a heavy dose of responsibility. As a self-employed professional, you’ll need to manage your own health insurance, retirement planning, tax payments, marketing, and ongoing education.
You’re not just learning the ins and outs of real estate, you’re also running a full-fledged business, often for the first time.
New agents often underestimate how much behind-the-scenes work it takes to succeed. If you’re not organized, self-motivated, and ready to juggle multiple roles, you may find yourself overwhelmed quickly.
Some of these challenges can be eased by joining a real estate team within a brokerage. Team structures offer more support, shared leads, and backup when you need it, but you’ll still carry much of the responsibility yourself.
Pro: Unlimited Income Potential
Real estate is one of the few professions where your income isn’t capped by an hourly wage or salary. Your earnings are directly tied to your performance, and with the right skills and work ethic, six-figure incomes are possible, even common in hot markets.
Con: You Risk Not Getting Paid at All
Here’s the flip side: No sales mean no income. Real estate is 100% commission-based, which can make for an unpredictable income stream, especially early on.
It’s common for agents to go months without a paycheck when starting out. Even once you close a deal, that commission is split between the buyer’s agent, listing agent, and their brokers, plus you’ll need to set aside a significant portion for taxes and business expenses.
Many aspiring agents are surprised to learn that the actual take-home pay is much lower than expected.
Pro: Your Hours Are Flexible
One of the biggest draws to real estate is the flexible hours. No rigid 9-to-5; your schedule can revolve around your life. Need to pick up your kids from school or take a mid-week day off? You can. You also have the ability to pursue side projects, personal development, or even a second job if needed.
Con: Your Clients Choose Your Schedule
While your schedule can be flexible, in reality, your clients often dictate when you work. Most buyers and sellers are only available after their own workday, meaning evenings, weekends, and holidays can become your busiest times.
If you don’t have strong boundaries or time-management skills, you may find yourself working more hours than you expected. Balancing family time, self-care, and the demands of your clients can be more difficult than it seems.
How to Get Your Real Estate License With Agent Campus by 360training
Our goal today isn’t to discourage you from pursuing a career in real estate; it’s to give you a realistic view so you can make an informed decision and set yourself up for success.
If you’re excited by the opportunities and ready to face the challenges, the first step to getting your real estate license is completing your state-required pre-license education.
Online pre-license courses through a trusted provider like Agent Campus by 360training offer the flexibility and affordability many aspiring agents need. You can study at your own pace, on your own schedule, and from the comfort of home without sacrificing the quality of your preparation.
Ready to take the first step? Enroll in your state’s online pre-license course today and start your journey toward becoming a real estate agent.
