Real estate is a tough, competitive field. If you've ever looked into it, you'll see so many articles touting the benefits: make your own hours, work-life balance, unlimited earning potential, be your own boss, and so on. And, while these are all possible, it's good to know there are some thing they are NOT telling you.
If you had a salaried job before, you're going to pay more in taxes.
When you're self employed, you have to pay both the employer and employee portion of social security and medicare taxes in addition to your income tax....effectively putting you at a higher rate.
You are about to get a LOT of spam calls/texts.
Health care plans for Realtors, Vision Plans for Realtors, Political Candidates for Realtors, Selling you "Leads," Buying your "Leads," "Any off-market properties?", we buy distressed houses, we are looking for top agents in your area, I'm an agent with an overpriced property that won't sell do you have buyers, you won a cruise, "this is someone you know, please buy me gift cards because I'm trapped overseas"...it's incessant. Your name and number is out there in the world, easily searchable and findable (or it should be if you want to be good at real estate), it also makes you easy to find for scammers and spammers...unfortunately, in a world where instant isn't fast enough and you never know when a potential client may call...a big part of the job is answering the phone and all the spam can really weigh on you.
"Choosing your own hours" really means working all the time.
Yeah, sure, you can choose not to work a certain day or time, and you don't have to get vacation approval from anyone, but that means you are also CHOOSING not to make money. Your clients and the market will drive your schedule, you can't pick when to show your buyer homes because they may not be able to get off of work until 5pm. If the market is hot, you may HAVE to write that contract on Saturday night to meet the multiple offer deadline. Sure, you don't have a requirement to get up and sit at an office all day...but you definitely don't get carte blanche options to choose if and when you want to work..sometimes you may WANT to work and you don't have clients. And, since if you're not working, you're not making money...then a lot of your activities start to get framed in a work mindset...like, should I really go to this party..."maybe I can find a client here."
Like we tell our clients, I'm going to tell you everything wrong, and if you still like it...it's probably right for you!
It can get expensive.
Honestly, getting your license isn't that expensive compared to a college degree or many other training programs. But, there are a lot of reoccurring expenses that you have to pay even if you're not making any money. Quarterly MLS Dues, Yearly MLS Dues, Monthly Supra Lockbox Dues, License renewals, you'll likely have to carry higher liability car insurance if you plan to take clients around, have to have a smart phone, good data plan, high speed internet....and that doesn't even get into personal advertising expenses which are typically not included in a brokerage commission split.
You're gonna get hit up for a lot more sponsorships and donations.
Everyone wants that sweet, sweet commission you must make so much of, and they are not misguided to think that Realtors crave attention for exposure. And, good press should lead to more clients....right? In my experience, it's a maybe. There are a lot of conflicting stats out there, but on average Realtors make between $35,000 and $50,000 a year, with the median around $68,000. Yeah-yeah there are some that are millionaires, but just like being a movie star or an influencer, only a small percentage make the super big bucks.
Everyone you meet ONLY wants to talk about your work.
Ever met an attorney that doesn't watch Law & Order....I can't think of one I know that does watch the show. It can be understandable that after a long day's work you don't want to talk about work. But, buckle up, talking about work after a long day of work is how you will be able to continue to work. You start to eat, sleep, and breathe real estate.
It's hard to make true friends.
Not impossible, but difficult for two reasons.
When people find out you are a Realtor, they immediately assume you're hoping to get their business.
When you make a friend, you deep down hope that one day they will use you for business.
I'm not naive, not everyone you know will use you for real estate. You get better at dealing with it, but the sting never really goes away. I can only afford to hang out and do fun things with friends if I have an income, and if I don't get to help you buy or sell a house...I may not be able to literally afford to be friends with you.
You can do everything right and it still not work out.
This is probably more of a life lesson than a Realtor lesson, but it's a good reminder. A lot of real estate is luck. Now, you have to make your own luck, there are methods to improve your luck, but no matter how prepared you are, sometimes you won't get the listing, the buyer would prefer to use their Grandma that lives out of town and is semi-retired instead, the house doesn't appraise because the apraiser isn't familiar with the neighborhood, or the market takes a turn and the buyer pool dries up as quick as the interest rates go up.
You wake up unemployed. Every. Day.
Ok, maybe this is a slight exaggeration...but it's not far off. The hardest part of the job is lead generation...a.k.a....getting someone to use you for their real estate transaction. Unless you have a closing scheduled for that day, most days you wake up you will be earning zero dollars, but you'll still be working a FULL day, setting the stage to hopefully and potentially gain a future client. Tapping into your sphere of influence is a great way to find potential clients, but the U.S. average of selling a home is about 9 years...so even if someone does want to use you, there's not an easy way to make that sale happen faster. You have to meet a LOT of new people.
Everyone knows a real estate agent...or several.
There is a wide dichotomy of skills, experience, and, dare I say, competence amongst real estate agents. This career has VERY low limits to entry...and it shows. There are sooooooo many agents, and experience is not always representative of skill. I've met brand-new agents that get it, they know how to apply the rules and are just made for the work, but don't get a chance because they are new. I've met agents that have been in the business for YEARS and make a ton of money....and once sold the wrong house. So, you have to know a lot of people and then stand out in a sea of agents.
At Bungalow Realty we strive to give our agents the tools to stand out. We expect our agents to be the most knowledgable about their specialties and to provide the highest level of service. We provide coaching and mentoring of all aspects of the lifestyle. If that appeals to you, we would love to hear from you.
And, what about this Debbie Downer list? Well, it's not supposed to be negative, but rather enlightening. We like to make sure our agents are prepared. In business and life. In a career that has a high level of burn out and competition we've found solutions to building a business that fits your personal life and still puts your clients first. There are a lot of positives to this job! Getting to help someone acquire their dream home is a great feeling and helping them protect their best interests along the way is very rewarding.
Like we tell our clients, I'm going to tell you everything wrong, and if you still like it...it's probably right for you!
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