Real estate has a reputation of being an exciting, fast paced job. How can it not be when you’re working with hundreds of thousands of dollars? Being a real estate agent takes a certain kind of person, and you should be sure you fit the mold before you dump money into getting your business off the ground. Here’s a look at the pros and cons of being a real estate agent.
Pro: You can be your own boss.
For many people, the draw of real estate is the ability to work for yourself. You don’t just get profits because of a trickle down effect—you get to see the direct results of your own labors. You’re also able to set your own hours, choose who you work with, and work as hard as you want to work. But don’t be fooled: buying and selling houses, and being willing to put in the work to make a large profit, all takes a particular kind of personality.
Con: “Flexible hours” can mean long hours and a lot of hard work.
Yes, you set your own hours and work as hard as you want to, but if you want to be truly successful, you have to work hard. You have to be prepared to work closely with people you may not like if it means you can make a big sale. You may get stuck showing houses after work, on weekends, and on holidays when your clients are available. You may have to put in a lot of extra time to get houses ready to sell, and you have to tie up any loose ends that will get in the way—and you have to do it, largely, on your own.
Pro: It’s fairly easy to get started, comparably.
Each state requires their real estate agents to be licensed, but that’s about the extend of your required “education.” Yes, this means spending a few months studying so you’re prepared for the test (and they can be difficult!), but it’s definitely less time consuming and cheaper than spending four to 13 years in school. Additionally, you’re still going to have to work on your personal skills—talking to people, learning how to network, marketing yourself.
Con: It’s expensive to get started and the market isn’t guaranteed.
You may not have to pay for schooling, but you may have to invest a lot of money in order to get a lot of money out. Many real estate agents start off by sinking a considerable sum of their own money into their business. The unfortunate truth of this situation is that you may not always get that money back. There may be months when you make thousands upon thousands of dollars, but there will always be months when you make absolutely nothing. Working for yourself also means there isn’t anyone to set aside a retirement fund for you, or pay you unemployment when you can’t make money.
Pro: You’re helping people make one of the biggest decisions of their lives.
It can be exciting helping clients find a house that calls to them. You are a key ingredient in many people’s lives, particularly since much of the public doesn’t know exactly what’s needed to buy or sell a house. Having an innate sense of what someone else is looking for, and being able to read people can help be successful in the many different hats a real estate agent wears.
Con: Little mistakes can be a big deal.
Another aspect of being your own boss means that you’re ultimately responsible for any mistakes. And forgetting something little can turn into a big problem. While it’s important to be friendly and vivacious, it’s also important to pay attention to detail, stay organized, and have a backup plan so you can fix any last minute problems that might arise.
