The decision to become a real estate agent comes with significant considerations.
From the potential financial windfall to the stress of selling and helping clients find their dream homes, understanding what a career in real estate might entail can be daunting.
Let’s explore the pros and cons of becoming a realtor to help you decide if it’s right for you.
Who is a Realtor?
A realtor is a real estate agent who has exceeded the standard licensure to become a National Association of Realtors member.
This membership comes with additional guidance and oversight from the organization to ensure higher ethical standards.
Becoming a realtor indicates that an agent has the necessary licensing to practice in their state and will go above and beyond for their clients in delivering exceptional service every step of the way.
Homebuyers must understand if your real estate professional is registered as a realtor.
This adds another layer of assurance to standard licensure that you’ll receive fair services during your purchase process.
Moreover, the extra effort required to be a realtor can mean great peace of mind while looking for property, as realtors have predetermined codes of conduct that indicate adherence to fair practices and upstanding ethics.
Pros of Becoming a Realtor
Before moving to the cons, let us discuss a few pros and cons of becoming a realtor.
1. Flexibility
Being a real estate agent allows you to customize your work schedule to fit your lifestyle.
Unlike other jobs, you don’t need to clock in and out or begin and end work at set times.
That means you can start earlier if one day is particularly busy or later when another day is less packed with activity.
This freedom in setting your hours can help you complete tasks when it’s most convenient for you and also allow you to spend more time with family and friends.
2. Huge Income
A career in real estate can be very lucrative and provide unlimited income potential—the sky’s the limit.
You can grow your business and expand to higher levels of success based on how hard you are willing to work and how determined you are to succeed.
All it takes is drive, dedication, excellent business knowledge, people skills, and problem-solving abilities.
As long as you can generate good leads and help clients find the perfect property, you can enjoy more financial freedom.
Again, you can easily transition from one market to another due to the strong contacts built throughout your career.
With all these attributes combined, you have endless opportunities for success in this field without a predetermined income ceiling.
3. You Offer Help
One of the pros of becoming a realtor is that you’ll always be there to help your clients.
From the initial conversations and getting to know them and their needs to the final closing date when they get the keys to their new home, it is a journey filled with excitement and joy for you and your client.
These moments provide a sense of purpose in your profession and help motivate you to ensure that each future client experience is as successful.
As someone so closely involved with helping your clients find their perfect home, you must go above and beyond to help them make this happen.
Whether reaching out to estimates for repairs on a listing or searching for new homes that might fit their needs better, offering this extra support could make a difference in having a great outcome.
4. Plenty of Referrals
One of the pros of becoming a realtor is that you can build up a steady stream of referrals and repeat customers.
People trust their friends’ recommendations, so when one client has had a good experience with you, they will likely recommend you to others.
Gaining satisfied customers will provide you with strong word-of-mouth marketing, which can lead to more leads and deals.
Cons of Becoming a Realtor
1. High-Stress Levels
The real estate industry is highly competitive, and the pressure to succeed can be intense.
You must stay ahead of the competition by constantly learning new strategies and marketing techniques.
You will also have to manage buyers’ and sellers’ expectations and emotions since their home purchase or sale is a significant and emotional event.
2. Uncertainty of Income
One of the biggest challenges for realtors is that their income is not guaranteed.
You could have a very slow month or even go several months without any deals. Thus, managing your financials with this unstable income can be difficult.
3. Long Hours
The nature of the real estate industry can require long hours, especially when you have multiple deals.
You may have to spend nights and weekends with clients, showing houses, and attending open houses. This could challenge those used to traditional 9-5 jobs.
4. Costly Upfront Investment
Becoming a realtor requires a substantial upfront investment, including licensing fees, marketing materials, and other necessary supplies.
Additionally, you must pay to join a real estate board, and depending on your area, these costs can be high.
5. Reputation is Everything
Another con of being a realtor is that your reputation can be easily damaged if you make mistakes or have a few negative reviews.
People in the industry talk to each other, so news travels fast and can leave a lasting impression.
Furthermore, negative online reviews stay on the internet forever and can heavily impact your chances of success in this field.
Conclusion
With this article, we hope you understand the pros and cons of becoming a realtor.
Becoming a realtor can be a great career for those passionate about helping people find their perfect home.
With the ability to create long-lasting relationships with clients and take advantage of endless opportunities for success, this field has no predetermined income ceiling.
