Being a real estate agent seems exciting, and it really is, but it can also be frustrating when you’re just starting out and things aren’t exactly what you expected. As you become a more seasoned agent, you might find yourself getting caught up in just the day to day of your business, where you can end up losing sight of the opportunities that motivated you to become an agent in the first place.
Whether you’re considering becoming a real estate agent, or you’ve been in the business for a few years, it’s important to be realistic about the opportunities and the pitfalls of the career, so you can avoid frustrations and position yourself for success.
Neil Mathewg of Agent Rise is a friend and REALTOR®, whose mentorship I’ve valued for years. Recently, he broke down the pros and cons of being a real estate agent in a brilliant fashion that really captured the essence of an agent’s reality. Check out the video below and I think you’ll agree – Neil nailed it!
Let’s talk about the good news first, and as Neil lays out, there are some major pros to being a real estate agent, like:
Unlimited Income Potential
That’s right, there’s absolutely no limit to the amount of money you can make! Amazing, right?! However, when agents first start out, this isn’t necessarily the case. Neil tells of how he went from making $25,000 in his first year (and working hard for it), to making about $100,000 in his second year, and closer to $200,000 in the years after that.
Only about 10% of agents ever reach the level of success that Neil has achieved. It takes time, consistency, and the right tools and strategies – but a high-level income is completely within reach – and not just for the top 10% of agents! I recently put together a webinar exclusively for Agent Inner Circle Members, that explains how you can make $110,000 every year as a real estate agent, without prospecting, paying for leads, cold calling or door knocking ever again. (Even Neil used the same strategy we talk about to help make his 6-figure income!)
(Somewhat) Flexible Schedule
Maybe one of the most enticing parts of being a real estate agent is the freedom you have to dictate your own schedule. Obviously you have to be in certain places at certain times, and available or accessible to others in order to conduct business, however – you have the freedom and ability to schedule your work around your life – much more so than with other jobs and careers.
Making Dreams Come True
For many, purchasing or selling their home in order to move is a dream come true, and you’re a huge part of making that happen. That’s why it’s easy to be passionate about your work and love what you do when you help change people’s lives for a living. You are involved in one of the most personal, life-altering decisions people make in their lives and the impact you can have is truly phenomenal.
Low Barrier of Entry
In most States, it doesn’t take much time to meet the requirements of getting your real estate license, and in comparison to other business ventures, your initial investment and startup costs are relatively low.
It’s Not All Rainbows and Unicorns
As with any profession, there are certainly a few challenges to being a real estate agent, but if you know what they are ahead of time, you can better plan and navigate around them.
As Neil explains in his video, there are a few cons to working in this profession as well. For most, the pros far outweigh the cons, but you should know what you’re in for. Some of the downsides include things like:
You’re Never Really Off
Now, this kind of contradicts with what we mentioned earlier about having a flexible schedule, but in real estate you’re never really off… unless you set expectations for you own time You can determine your own schedule and set boundaries, but your mind and your schedule are two different things and as a real estate agent you’ve always got so much going on that it’s very difficult to turn that part of your mind off.
PRO TIP: Be up-front with your clients about when you’re available and when you’ve reserved time for things like family… and sleep. We cover this in a lot more depth here: https://agentinnercircle.com/setting-expectations/
You Can Feel Underappreciated
As a solopreneur, there’s not much recognition or praise for your work and many clients can overlook your value altogether. Some clients will have a poor stigma around agents that lumps us in with used car salesmen. It can be hard to work for somebody and not feel appreciated and as an agent you can be left feeling undervalued – and under motivated as a result.
PRO TIP: Make sure your clients understand the value of your involvement at every step of the process by demonstrating your expertise, and explaining the challenges you help them overcome. You’re much more likely to receive appreciation when your clients have a true understanding of what you do. https://agentinnercircle.com/setting-expectations/
Low Barrier of Entry and Consumer Stigma
This was listed earlier as a pro, but an overall low barrier of entry means the market can become diluted with unskilled professionals. In some places, there are too many agents in a concentrated area causing heavy competition and a lower level of professionalism.
PRO TIP: Set yourself apart from the pack by working hard to improve yourself as an agent, and highlight that professionalism in everything you do.
No closing, no paycheck.
You’re paid for your success, not your work. So, if you’re not doing the work to set yourself up for the next deal while you’re working on the current one, money can get tight at times. This can lead to a ‘feast or famine” mentality that is very detrimental to your long term success as an agent.
PRO TIP: Set yourself up for success by implementing tools that generate new clients for you while you’re working on your current deal. One of the best systems I’ve seen that does this, and one that Neil has used and recommended for years is Service For Life!
A BIG THANK YOU!
I just want to take a moment to thank Neil Mathewg of Agent Rise for letting me share his content with Agent Inner Circle. Neil has been a long time friend, mentor and supporter of our community. I’m excited to continue sharing some of Neil’s content with everyone! Please take a second and check out all the awesome things Neil does.
Did we miss any of your Top Pros & Cons of working in the industry? Let us know in the comments below!