Do you wish you could set your own hours, spend time outside, meet new people everyday and make lots of money? Sounds too good to be true? It may not be if you choose a career in real estate.
Being a real estate agent is a fun and rewarding career but it can also be a very difficult one. A realtor will face challenges everyday. Real estate transactions are complex and have both a legal and human aspect to them. As an agent, you will need to be able to negotiate a maze of details for every single deal.
A real estate agent must wear many hats: business person, industry expert, psychologist and friend. He must know the local market as well as the industry at large, understand real estate laws, and oversee details on every deal. The hours can sometimes be un-appealing; most agents need to work evenings and weekends.
A real estate agent brokers real estate deals. He is involved in all aspects of the sale from the initial listing, to price negotiation, to closing a deal that is acceptable to both the seller and the buyer. As such, an agent must be very personable, enthusiastic and love working with people.
The sale process begins even before a listing is taken. The agent must discover a property to be sold, appraise it and compare it with others in the area. A reasonable selling price is determined and the house is then listed for sale. Next the realtor will prepare the house for sale, advertise it, arrange showings, follow up on leads, etc. Once an offer is accepted, the agent will then deal with escrow accounts, insurance, title company, inspection, and more. A real estate agent requires a special set of skills to keep everyone happy and move the sale process forward. Emotions can run high given the large amount of money on the table.
Be ready for some competition. In the United States, there are over 400,000 registered brokers and agents. Although many of them only work part-time, you will face competition from a large number of agents in your geographical area. You may want to partner with another more experienced agent at first, or come up with a unique marketing plan to differentiate yourself from the other agents.
Although the commission rate is only a few percent, on average 2-2.5% to each the buyer and the seller agent, there is definitely potential for a good income. However, the average earned income of a real estate agent is around the $50,000 mark.
On the upside, there are many attractive aspects to the life of a real estate agent. For the entrepreneur at heart, there is the freedom to work as much or as little as you want. Your income will be based on your effort, not a salary cap. It is a fast-paced environment where the stakes are high and the results can be very gratifying. Training is fairly short. You can be on your way in a few short months. So if you think you have what it takes, go ahead and jump into the real estate game.
