Do you like the idea of helping people find their dream homes? Are you always eager about real estate sales? If so, you should consider shaping your career as a real estate agent. In this career option, you will represent real estate buyers and sellers and help them find the right match. If you are wondering if the career in real estate is right for me, read on to know what it involves, its pros and cons, license costs, earning potential, and how to start your own real estate business.
Who is a Real
Estate Agent?
A real estate
agent is usually a person who represents buyers and sellers. A person usually
works independently or for a firm and gets a commission every time a real
estate deal is closed. A real estate agent would help buyers and sellers,
perform real estate analysis, look for available property listings, manage
advertising campaigns, schedule property showings, answer phone calls, and
network with potential clients.
Pros and Cons
of Choosing Real Estate as a Career Option
Pros
Ø Pick Your Own Schedule
You can pick
your own schedule if you work independently. You can decide when to make
appointments and when to take a break for personal commitments.
Ø Unlimited Income Potential
If you become a
successful real estate agent who closes high-profile deals, you can earn
millions in a year! For instance, if you sell celebrity properties worth
millions of dollars.
Ø Help People Find Their Abodes
If you like the
idea of helping people find their dream home or a commercial pace for their
startup, you can do that as a real estate agent. It will give you plenty of job
satisfaction when people find the right property.
Ø Better Career Mobility
When you become
a real estate agent, you can be your own boss, start calling the shots and
create a business of your own. You can be in charge of where your career is
headed and how much you want to earn.
Ø Become a Community Expert
People will also
look you up as a community expert. People in your personal life will come to
you for real estate advice and value your opinion. It will probably make you
feel good.
Ø Easy to Get Referrals
If you help
people find the perfect property, they will likely refer you to their friends
and family. More clients mean more earnings and business growth or career
growth within a real estate firm.
Cons
Ø Lot of Work
You might end up
working long hours and work on holidays and the weekends too to close a deal.
Ø No Steady Salary
Most real estate
agents work as freelancers and earn a commission only when deals are closed.
So, you might not get a salary if you don't close a deal in a month.
Ø Slow Periods
The real estate
industry is quite volatile. There might be slower months where you might not
make any money.
Ø Mostly Single Transactions
Most people buy
a home only once. So, most of your customers might have only one transaction
with you. As a result, you might forever chase new clients.
Ø Huge Savings Needed
As mentioned
before, you might not earn a commission for weeks or months if you don't close
a deal. So, it would help if you had ample savings to fall back on during slow
times or when you start your own business.
Cost of Education/Licenses
to Become a Real Estate Agent in Canada
A real estate salesperson might have to spend
$7,500 in Ontario to register as a real estate agent. This figure doesn't
include additional expenses like paying for your car, marketing costs, etc.
Cost of
Education/Licenses to Become a Real Estate Agent in the USA
You need to
invest around $2,000 to complete a course to become a licensed real estate
agent in the US. You need to complete an approved real estate course, pass the
licensing board's real estate exam, and complete fingerprinting and background
checks. All of them will cost.
Earning
Potential of a Real Estate Agent in Canada
In Canada, a
real estate agent can make about $119,236 annually.
Earning
Potential of a Real Estate Agent in the USA
The average base
salary of a real estate agent in the USA is $94,695.
Starting Your
Own Business as a Real Estate Agent in the USA and Canada
Did you know IRS
recently shared that over the last five decades, 71 percent of Americans who
declared more than one million dollars on their income tax returns were
involved in real estate? There is no doubt that the real estate business can
make you a rich person. Here are some steps that might help you start your own
business as a Real Estate Agent in the USA and Canada.
1.
Think Through
Professional Goals
Start by
thinking through what you want to achieve by starting up the business, like XX
amount of revenue by year one and XX customers by the end of the second year.
It will keep you focused.
2.
Get a License
You need a
license to start a business as a real estate agent. It will also help build
customers' trust.
1.
Conduct In-Depth
Research
Conduct in-depth
research to know the market and the existing real estate businesses in your
area. Know your competition and decide how you are going to tackle the
competition.
2.
Organize Your Finances
Keep your
finances in order and make sure you have some investors lined up or seek loans
so that you don't run into financial issues during the slow season.
3.
Do the Legalities
It is also
essential for you to help an experienced attorney complete the legal
formalities and convert your company into a legal entity that follows the
regulations and pays the taxes on time.
4.
Set up Accounting and Bookkeeping
This step will
help you keep an eye on finances and know when to invest more and when to tread
carefully.
5.
Purchase Business Insurance
Buy business
insurance to secure your business and all its assets. Read more about business
insurance here.
6.
Plan Your Sales and
Marketing
The business of
a real estate agent depends heavily on sales and marketing. So, you need to
craft a sales plan, build an online
presence, create a brand and launch campaigns to promote your business and
generate leads continuously.
We hope you now
know whether you want to have a career as a real estate agent or not. Talk to
an existing real estate agent for an in-depth discussion too. Good luck!
Sources:
https://study.com/academy/popular/how-much-it-costs-to-become-a-real-estate-agent.html
https://futureofworking.com/12-pros-and-cons-of-being-a-real-estate-agent/
https://www.indeed.com/career-advice/finding-a-job/pros-and-cons-of-being-a-real-estate-agent
https://www.remic.ca/real-estate-sales-person-vs-mortgage-agent/#:~:text=Unlike%20other%20real%20estate%20careers,%241%2C600%20for%20a%20mortgage%20broker.
https://www.realestateexpress.com/career-hub/become-a-real-estate-agent/7-costs-to-consider-when-starting-a-real-estate-career/#:~:text=Real%20estate%20examination%20and%20licensing%20fees&text=These%20will%20cost%20about%20%24100,%24150%20for%20the%20license%20itself.
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https://www.indeed.com/career/real-estate-agent/salaries
https://www.fortunebuilders.com/a-beginners-guide-to-starting-a-real-estate-business/
http://www.realtypoint.ca/how-to-open-a-real-estate-brokerage/
https://www.crowdspring.com/blog/how-to-start-a-real-estate-business/