The Truth About Working In Real Estate
Being a realtor appears to be very glamorous. The lifestyle of some of the top-earning real estate agents is so lavish and attractive that thousands of people plan to jump on to the bandwagon to live like them one day. There is no doubt about the fact that one can earn lots of money and enjoy a calm and relaxed life as a realtor, but for that, he must be prepared to work hard for a long time. For those who only see the shiny side of this profession, here is the truth about working in real estate.
It is a fact that a vast majority of people taking up real estate as a career are those who are impressed by the success stories of other agents. They join the real estate industry without a clear understanding of what it takes to be successful as a realtor. It is not a surprise then that nearly 90% of these aspiring realtors become disenchanted and leave the profession after a year or two. The success rate is abysmally low in this profession, but there is no decrease in the numbers and enthusiasm of thousands who are ready to take up real estate as a career.
There is a lot to understand and analyze about real estate industry before one should take a plunge into it. It is wrong to decide to get into real estate just because you are frustrated with your current job and believe you will be happy and satisfied by becoming a real estate agent. There are pros and cons of every profession, and without going through them, it is not a prudent idea to switch careers.
The good thing about real estate is that you can learn about it even while doing your current job. This learning phase may prove difficult because you are not spending as much time shaping your craft, but you can get a clear idea of things to come when you switch to real estate as your career. For those who want to know the truth about real estate, here are some essential things to know about this industry before you join.
You will not start to earn money right away
It is very tempting to think about the large commission you’ll get by helping a client buy or sell a house, but it is not easy as it appears. Finding your first client is a tough task as you have to prospect for your leads. It can take many months before you will be able to close your first deal. It is only after this that you get your first check from the client.
Until then, you must manage your household expenses with the savings in your bank account. You will come across clients who develop cold feet and do not want to move forward to close the deal. You have to remain patient and not lose hope about your income earning capabilities if you’re going to succeed in this career.
You have to spend money to make money
Many people are under the impression that they do not have to invest money on their own to work as a real estate agent. Even before you start working as a real estate agent, you have to pay out of your own pocket to do the required education. You have to pay the fee for the state and national board exam and then for securing the license from your state. After starting as a realtor, you will also be required to pay the fee of the MLS for listing your properties. You will need money if you wish to maintain an office to meet your clients. You may also want to hire a professional real estate photographer to help you market your properties better.
Don't depend on your friends or relatives
Many people having a large social circle believe their network will help them in getting clients when they start working as a real estate agent. They are in for a rude awakening when they find that they get verbal assurances but no work and very few referrals from their friends and distant relatives.
Buying or selling real estate is a big financial decision, and your friends may not be willing to take a risk by giving responsibility to you. They may wish to rope in a more accessible and experienced realtor for their transaction. The best option for you when you learn about a friend buying or selling the property is to refer a trusted realtor to them. You will get your slice of the commission he gets when he closes the deal without doing any work.
There is no office, but you will be working at odd hours
Many people take up real estate as a career because they hate going to their office every day. It is true that you will not be required to go to an office every day, but you should be ready to work according to the schedule of your clients and vendors. You will be surprised to see yourself visiting clients’ homes and showing homes in the evening and at odd hours of the day. Of course, you can decide to take a break whenever you want to, but you will also find yourself working long hours at a stretch.
Be ready to see your time getting wasted
If you are a very punctual individual at doing every task on time, you will feel frustrated when you are kept waiting by a client or when a client cancels the meeting altogether. Similarly, rehab projects may test your patience through cost overruns and delays, and you should have the patience to complete them if you want to become a successful realtor.
Showing properties to clients is your duty and you will have to learn to control your emotions when a client says no to all the homes shown to him by you. However, you are also rewarded for your marketing efforts and hard work when you get referrals from previous clients.