Should I become a real estate agent? Some questions are easier to answer than others. Asking any professional about getting into the business is likely to produce mixed reviews. Real estate is a nice trade for anyone that enjoys meeting new faces and tending to the needs of others above their own. It can prove to be an excellent venture for people that welcome the chance to see homes, offices, and properties. However, the challenging, fast-paced world is not for everyone. So, think about these things if you have ever wondered, should I become a real estate agent?
Common Misconceptions About Becoming A real Estate Agent
Many folks believe that agents, realtors, and brokers make loads of money. They also think they do so without putting forth much of an effort or doing a lot of work. A person can live comfortably while helping clients buy, sell, and rent properties. Research from the Bureau of Labor Statistics shows that in May of 2017 the annual median wage for real estate agents was $45,990. Meanwhile, during the same period, brokers did a bit better and made $56,730 per year. Additionally, the job outlook is expected to grow by about 6% between now and 2026. This growth will increase the 444,100 employment opportunities already in place by 24,900. So, should I become a real estate agent? Yes, if you are willing to learn, work unconventional hours, and earn your money on a commission basis.
Costs Associated With Becoming A Real Estate Agent
Real estate is not your average 9 to 5 job, and it does not usually produce week to week paychecks. It is not entirely unheard of for an agent to receive a salary, but for the most part, it is a commission-based trade. The percentages vary widely, and they are negotiable by law. Some listing agents will receive 2.5-percent of a sale while the buyer’s agent gets the same amount. For example, if a home sells for $300,000, the take is $7,500 for both sides.
However, agents are required to work with licensed brokers. Hence, the brokerage firm will need to get paid too. It is worthy of mentioning that new salespeople usually have to pay a bit more than more experienced ones. This is because people new to the field need more training and guidance. So, if the agreement features a 70/30 divide, the agent’s payday is $5,250. While $5,250 sounds like a nice chunk of change for selling one house, there are still some things that need to be considered. For instance, representing a buyer can leave the agent driving them around for weeks or months looking for the perfect home. Being a listing agent is not always promising either.
Sometimes, properties stay on the open market for long periods, even years at a time. Plus, not all places sell for $300,000. Many of them will become sold for smaller sums, which means the agent’s cut is lower than $5,250. Should I become a real estate agent? The answer is, maybe. Each person has different needs, wants, and desires. If this type of pay is right up your alley, then yes, the profession is undoubtedly a proper fit for you. However, to earn a decent living at $60,000 per year, salespeople need to sell one $300,000 structure every month. Therefore, the situation is not suitable for everyone.
Should I Become A Real Estate Agent Full Or Part-Time?
Diving into a new career head first can turn into a nightmare, especially when the position is commission-based. Even if a brand-new agent has a little bit of savings tucked away, it often takes at least six months to sell an initial property. A person can blow through their money reserves in the blink of an eye due to pre-licensing courses, exam fees, advertising costs, and personal expenses. Should I become a real estate agent part-time? The answer is, probably not, if you are worried about going broke. Gaining experience and developing clients are crucial to being successful in the industry.
Many mothers and fathers with young children choose to join the real estate ranks part-time. This opportunity gives them the flexibility to work from home at times. They can handle emails, make phone calls, and complete online marketing from their home-office while keeping an eye on the little ones. When the need for them to leave arises, such as for a showing, they get a babysitter or their spouse to watch the kids. Taking this approach allows the agent to get his or her name out there and obtain knowledge along the way.
Should I Become A Real Estate Agent And Get A Side Gig?
Experience and wisdom are vital in the real estate game, so it can be beneficial to find other opportunities to learn about the craft. Not to mention, the extra income will surely help. Of course, people shouldn’t expect to get rich from a side gig, but still, every little bit helps, and the money can be used to pay bills or purchase classes to earn different certifications. A few things worth looking into include…
- Writing Or Reviewing Contracts
- Property Inspections
- Market Evaluations
Final Thoughts On Answering The Question Should I Become A Real Estate Agent?
The answer to this question can only be answered by one person, you. In the first year, there will be a lot of studying, watching, and learning from a mentor. The seasoned agent usually splits his or her commission with the new agent. However, the checks won’t be as substantially sized as they would be if they were yours and yours alone. Most states require individuals to be at least 18-years of age, and they must hold a high school or equivalent diploma as well. If your interest is still peaked and earning a license sounds good, then, check with your hometown’s Commission to check on further requirements and stipulations as they vary from place to place.