Reasons Why You Should NOT Start Your Real Estate Career
I am going to preface this article by mentioning that I am going to post the sister article to this ... Reason Why You SHOULD Start Your Real Estate Career.
I have worked with thousands of agents in this business and ran the largest new agent training program in the country for 5 years. Today, in addition to selling real estate & coaching my national team, I coach & teach & train agents across the country. And I have observed many things that will help you do this business right.
There are several reasons why someone might choose not to pursue a career in real estate:
Competition: The real estate industry is highly competitive, and it can be challenging to stand out in a crowded market. The Pareto principle plays out in real estate where, for the most part, 20% of the agents do 80% of the business. (I think I’ll write an article on the 20% vs the 80% ... what is the difference.)
Costs: Starting a career in real estate can be costly, with fees for licensing, education, and marketing. Additionally, you may need to invest in a car, a better laptop (if yours is 10+ years, chances are you need the latest), and other tools to be successful in the field. Compared to starting other businesses, the costs of starting in real estate are actually relatively low ... but know your year 1 & year 2 costs before you embark.
Unpredictable Income: Real estate agents pretty much work solely on commission, which means their income can fluctuate from month to month, making it difficult to plan and budget. So what is your financial cushion for getting started? What if you did not have a paycheck for 3 or 4 months?
Long Hours: Real estate agents often work long hours, including evenings and weekends, to accommodate their clients' schedules. There’s a catch22 here ... a Realtor’s schedule has all sorts of flexibility (we love that!) ... and you’re on call all the time.
Stress: Real estate transactions can be complex, and agents must be able to handle the stress that comes with negotiating deals, managing multiple clients, and dealing with unexpected challenges.
Regulatory Requirements: You need a license (what that looks like varies from state to state), which requires passing an exam and completing ongoing education. And then you’ll have continuing education requirements in your first year, your 2nd year, for your entire career, both for your state requirements & to satisfy your broker requirements.
Job Security: Real estate agents work on a contract basis and may not have job security or benefits like health insurance or retirement plans. Some brokerages (typically the larger brokerages) have insurance plans agents can participate in.
Ultimately, whether or not to pursue a career in real estate depends on your individual goals, interests, and willingness to take on the challenges that come with the industry. You may notice (glance at my other blog topics) that I spend a lot of time talking to agents about best practices, avoiding the pitfalls, being disciplined with the basics, saving money, pulling together hustle & grit to make this business work at a high level.
Real estate is an amazing business, but it can also be frustrating & a financial flop IF you do not do the right things & show up in the right way in your business. For those who pull together the right mindset, plan, habits, & implementation, the sky is the limit. For those who do not, it will be a short career. With that said, I have seen many agents who had tried real estate before, failed, but their gut kept telling them that real estate was the place to be ... so they came back a 2nd time & did things differently, followed the success model, tapped in to training & coaching, actually implemented the basics of a solid daily lead generation focus.
Whether you are looking at real estate for the first time, or this is something you have thought about for a long time, or you’re coming back around to give it another start, then tap into my blog, spend some time on my YouTube channel, order my Success Faster On Fire Hot! book today.