Being a real estate agent can be a challenging yet rewarding career choice. With over 3 million active license holders in the United States, the industry is crowded. Is it hard to be a real estate agent? Undoubtedly, yes. Being a real estate agent requires hard work, dedication, and the ability to navigate various challenges. Agents rely on commission-based income, face administrative burdens, and handle rejection daily. So, why pursue this path in real estate?
Here, we uncover the truth behind how hard it is to be a licensed real estate agent.
Becoming a Real Estate Agent is Tough
Becoming a real estate agent is an exciting, yet tough, journey. It can lead to a rewarding career. However, it doesn’t happen overnight. You must study and pass a real estate exam to get licensed. Only at this point can you truly become a real estate agent. Is it hard to get licensed? Let’s find out…
Education and Licensing Requirements
Step one to becoming a real estate agent is to fulfill the education and licensing requirements. Each state in the United States has its own set of regulations and prerequisites for aspiring agents to meet. These typically involve completing a certain number of pre-licensing courses, ranging from 60 – 120 hours. The topics consist of things like real estate principles, contracts, finance, and ethics.
After completing the required coursework, you must pass your state’s real estate exam to obtain a license. A large chunk of the facts you must memorize aren’t very applicable to your daily tasks as a realtor. However, it must still be done! Study and prepare as much as you can for the exam to increase your chances of passing.
Choosing a Real Estate School
Choosing the right real estate school is an important decision in the journey towards becoming an agent. Make sure you select a school that meets the state’s education requirements. Don’t shoot yourself in the foot before getting started. Researching different schools, reading reviews, and considering the cost.
Some real estate schools offer online courses. Post-COVID, this seems like the preferred method for people trying to become a real estate agent, as it provides flexibility and accessibility for busy schedules. If you’re looking to start your journey, it’s important to find real estate classes that fit your needs, including those offering self-paced online coursework. Before enrolling, ensure that the online program is accredited and recognized by the state’s real estate licensing authority.
Studying for and Passing the Real Estate Exam
You’re not even licensed yet! Becoming a real estate agent shouldn’t be that hard, right? Adequate preparation is key to passing the exam successfully. Do whatever you have to do to prepare for the real estate exam and pass it. This should be an easy part of your journey to becoming licensed.
Many aspiring agents find it helpful to enroll in exam prep courses. These sometimes offer practice questions that are similar to what you’ll see on the test. Study and pass your test!
The Real Estate Agent Job: Challenges and Rewards
Being a real estate agent is fruitful once you actually get the job. Sellers pay agent commissions, which can total 6% of the sale price. In high-valued areas, these commissions can be huge. Sounds great, right? Well, surviving as a real estate agent isn’t the easiest gig out there.
Is it Hard to be a Real Estate Agent?
While it’s easy to help someone buy or sell one house, lasting as a real estate agent is extremely hard. The job requires hard work, dedication, and perseverance to make it long-term. Agents must possess strong communication and negotiation skills to last against the competition. On top of that, you need a deep understanding of the real estate market.
There is endless information to learn as a real estate agent. You can’t just be good at sales to last. You must constantly seek out new business opportunities and promote yourself to attract clients. Over time, this can feel soul-crushing. As a real estate agent, you must be shameless. Never stop promoting your agent services if you want to continue generating leads.
The Future of Real Estate Agents
iBuyers and other real estate tech companies continue to disrupt the industry. The way that real estate agents operate today will look different in a few years. Real estate agents will eventually become obsolete if they don’t adapt to the times. Not only do agents need to compete against others, find leads, and master their markets – but they also must adapt to technology as that changes the industry. It’s not an easy job!
Managing Commission-based Income
One of the toughest challenges of being a real estate agent is relying solely on commissions for income. Unlike a traditional salaried job, agents’ earnings are directly tied to the number of transactions they do. What does that mean?
There will be periods where agents don’t make any month during slower months. That is a tough pill to swallow, especially when you first start out. Realtors must carefully manage their finances working on commission alone. This payment structure makes being a real estate agent extremely difficult. Many real estate professionals quit because of this.
Balancing Work and Personal Life
The real estate industry is demanding. Real estate agents usually must work long hours and be available outside of regular business hours. For example, open houses typically take place on weekends. Agents must make themselves free to work these shifts in order to survive.
Balancing work and personal life can be a challenge. Setting boundaries and establishing a schedule can help maintain a healthy work-life balance. Prioritize self-care where you can! You want to avoid burnout when working as an agent. Allocate time for rest and rejuvenation, even during busy real estate seasons, like the summer.
Dealing with Rejection and Uncertainty
In the real estate business, not every lead turns into a successful transaction. Agents face rejection and deal with uncertain outcomes on a regular basis. If you don’t have a positive mindset to overcome these challenges, you will fail as a real estate agent.
Treat rejections as learning opportunities. Analyze why it didn’t work out and try to improve after each situation. “The more no’s lead to a yes”. Keep that in mind when trying to motivate yourself as a real estate agent when getting rejected.
The Hardest Part About Being a Real Estate Agent
Overall, the real estate agent job presents a mix of challenges and rewards. After reading through the hard parts of being an agent, many run for the hills. What is the hardest part about being a real estate agent in 2024?
Money is usually the hardest part of the job to deal with. Going through slow months of zero sales and no commission money makes most realtors quit especially because there are tons of marketing expenses to keep up with as an agent. How can you afford to keep paying for marketing channels when no money is coming in? It’s hard, that’s for sure!
Real Estate Agent Salary
Thankfully, it’s not all bad being a real estate agent. The earning potential is a significant aspect to consider when contemplating this career. There’s no W2 biweekly salary to depend on. However, real estate agent salaries can be massive if done right.
Commission Rates and Structures
Commission rates within the real estate industry can vary. Typically, a percentage of the property’s sale price is used to calculate an agent’s commission. The specific percentage can be negotiated between the agent and their client. Common rates range from 5% to 6%.
Do you get all 6% commission? Sadly, no. It’s usually split between the selling agent and the buyer’s agent, further reducing your earnings. Additionally, some agencies may have caps on commission percentages, which means a chunk of your money gets paid to your brokerage. After that, you’ll pay taxes. Then you must pay the cleaner for your listing, which you promised the seller. After that, you can put some money into your pocket.
Factors Affecting Real Estate Agent Earnings
Several factors influence the earnings potential of real estate agents.
Market Conditions: Market conditions play a role. A booming real estate market provides more opportunities for sales and higher commissions. Location also matters! Agents in high-demand areas or luxury markets may have the potential for higher earnings.
Expertise and Experience: The experience and expertise of an agent can significantly impact their earnings. The longer real estate agents have been around, the more likely they are to get referrals over time. Referrals are the best kind of lead because they are free and the ice is already broken. These can drive a real estate agent’s business and make their jobs much easier.
Consistent Marketing: An agent’s dedication and commitment to marketing also affect their earnings. The more you market to leads, the more leads you will get. If you aren’t proactive in generating more business, you will likely fail. Consistent marketing is one of the most expensive and hardest parts when starting out as a real estate agent.
Versatility: Being versatile as a real estate agent helps separate you from the pack. Many agents get into multiple parts of real estate to diversify their efforts. You can learn how to wholesale real estate or flip houses to go along with your agent efforts. Creating multiple streams of income with your business is key to longevity as a real estate agent.
Average Salary of Real Estate Agents
The average salary of real estate agents varies depending on location. The median yearly wage for agents in the US was just above $50,000 in 2022. That means half of the agents earned more than this amount, while the other half earned less. Commission-based income is bittersweet. Agents can make boatloads of money or none at all.
Is Being a Real Estate Agent Worth It?
Considering a career in real estate? There are plenty of pros and cons to consider when deciding if being a real estate agent is worth your time. It’s not an easy profession.
Pros of Being a Real Estate Agent
- Flexible Schedule: As a real estate agent, you have the freedom to set your own hours and manage your workload.
- Potential for High Earnings: Real estate offers the opportunity to earn substantial commissions, especially when closing big deals.
- Transferable Skills: The skills you acquire as a real estate agent, such as negotiation and communication, can be valuable in various industries.
- Opportunity for Growth: Sky is the limit for how far you progress within the real estate industry. You don’t have to be an agent forever.
Cons of Being a Real Estate Agent
- Commission-Based Income: Since real estate agents earn commissions, there is a level of income uncertainty, especially during slow periods in the market.
- Initial Investment: Starting a real estate career requires an upfront investment in licensing, education, marketing, and other business expenses.
- Administrative Responsibilities: Real estate agents handle numerous administrative tasks, including paperwork, marketing, and client management.
- Market Fluctuations: Real estate markets can be unpredictable. Economic factors can impact the demand for properties, affecting your income.
The Odds of Making it as a Real Estate Agent
In 2023, over 60,000 agents quit their jobs. Being a successful real estate agent requires more than just obtaining a license. To stand out in this competitive industry, you need to focus on building a pipeline of leads. Implementing effective marketing strategies will help you talk to more people who want to buy and sell. Consistently marketing over long periods of time can help you make it as a real estate agent instead of fizzling out.
4 Tips to Succeeding as a Real Estate Agent
1. Build a Strong Network
Networking plays a crucial role in real estate success. Attend industry events, join local organizations, and connect with other professionals in the field. Building relationships with other real estate agents doing what you want to do is helpful! Surround yourself with people who you want to be like.
2. Implement Lead Generation Strategies
A well-planned marketing strategy is essential for real estate agents. Utilize online platforms, such as social media, to build your online presence. When people search online for something like, “sell my house for cash”, you want to show up in their feed. Meet people where they are when trying to generate leads and market. Stay updated with the latest marketing trends to stay ahead of the competition.
3. Provide Exceptional Customer Service
Customer satisfaction is crucial in the real estate industry. Communicate with your clients and address their concerns. Going the extra will not only result in referrals but will also contribute to long-term success in the industry.
4. Continue to Study and Learn
The real estate industry is constantly evolving. Staying ahead requires continuous learning and professional development. Attend workshops, seminars, and training programs to improve your skills.