Before you start to decide on becoming a Realtor, there are several things you should know about before starting in your new career. Almost all realtors are commissioned based, which is typically around 5% to 6%. This can be wonderful considering most housing medium markets are around $200,000, but it can vary from city and state. But, usually, the commission is split between the buyer’s agent and seller’s agent. So with the price in mind of $200,000, you would get a commission of $6,000 per house. Everything sounds great, but consider the pros and cons, which will be listed below.
Pros:
- No cap on potential income
- Challenging and rewarding career
Cons:
- High competition and depends on the market
- Workaround your client and your schedule
Let’s take a deeper look at these pros and cons.
Pros:
No Cap on Potential Income
You are your own boss after you have completed your training and received your realtor license. There is no limit cap on how well you are selling and buying homes to clients. You can make as low as $42,000 or as high as over $150,000. The sky is your limit. The work you put in will show in the fruits of your labor. Of course, it will all vary from state to state, city to city, and depending on the current market.
Challenging and Rewarding Career
It’s a competitive business and even more competitive among your peers. But if you like a challenge, this would be the career for you. Of course, each challenge includes helping your clients and their home decisions. Most real estate agents ask their clients what they want from a home, and show around 3-5 homes before purchasing one. But, it is the most rewarding when your client is happy when they sell and/or purchase their first home or dream home. You, as a realtor, make the process seamless for clients to make their decisions easy on their home purchase.
Cons:
High Competition and Depends on the Market
This industry has high competitiveness, which can be difficult to work. You would have to set yourself apart from the rest of your peers to work in the real estate industry. Not to mention, it all depends on the current market. During the housing market crash in 2008 and even during the COVID-19, the market has slowed down considerably. This would require you to consider saving a small nest egg, just in case an event like this happens again. Usually, the high valued housing market gets affected first before the medium homes do.
Workaround your client and your schedule
Each client has a different schedule of their own they have to work with, and you have to determine when it would be the best time to work with your clients. Juggling between clients’ schedules and yourself can be taxing. You will most likely work on the weekend to meet the client’s schedule requirements.
Overall the career is very rewarding if you put in the hard work. It’s not the best lifestyle of work, but you get to travel around town showing your clients what they want. But, these pros and cons should be considered before making your career decision. If you do decide to continue with this route, here are great ideas that can help with your career journey. Creating a professional website to stand out among your peers and real estate CRM features to consider to help juggle with your customer service/relationship for maximum profitability.
