Updated: 17 hours ago
The Pros and Cons of a Real Estate Career
Is a Real Estate Career Right For You?
Pros and Cons to Consider Before Becoming a Real Estate Agent
Meta-description: Considering a career in real estate? Here are several pros and cons you can consider before working towards building your career as a real estate agent.
Being a real estate agent can be an excellent career choice. With flexible hours, low-entry barriers and high-income potential, a real estate agent can enjoy numerous job perks. With industry standards to follow, being a real estate agent isn’t a cakewalk. Convincing people to envision a strange house as their ‘forever’ home takes effort, hard work and persistence. In this article, we're going to explore the pros and cons of a career as a real estate agent and present you with our views.
Pro: Incredibly flexible schedule
Along with low-entry barriers into the industry, being a real estate agent also allows you to set an incredibly flexible working schedule. You can choose to work on only house showings for one day while the next day you can take care of a bunch of paperwork. This means that you have the luxury and liberty to arrange your day in a manner that suits your personal commitments as well.
However, having a flexible schedule isn’t always manageable for everyone. One can easily get carried away and continue to work for hours. Doing so can lead to exhaustion as well as burn out, at times. This is where learning good time management can come in super handy.
Con: No financial safety net
As a real estate agent, you will work mostly on commissions. To be able to write yourself an income cheque, you will need to spend a considerable amount of time showing houses, getting the paperwork done and finally making the sale. This entire process can take several months because your clients are making a big financial decision and will need time to be satisfied with every nuance of a new house.
There can also be slow periods when the real estate market isn’t flourishing. There may be several months when you wouldn’t be able to make a sale. Your client might not be satisfied with a house, or the market is not looking very strong. In either case, your sale commissions will be delayed, and unless you have your finances in order, you may face financial issues.
Pro: Superb income potential
Even with financial scares here and there, the real estate industry offers incredible income potential for real estate agents who are ready to show commitment to their work (Property Update, 2020). By making use of simple skills related to conducting business, negotiations and sales, you can sell one house after the other and cut yourself hefty commission cheques.
Since your income isn’t limited to an hourly rate, you can get higher pay cheques if you simply can make a better sale. The key here is to be able to convince your clients to see the real value in an excellent house. However, do remember that you shouldn’t lead your clients wayward in an effort to simply cut yourself a bigger cheque. To be able to make a good name for yourself in the industry, and to comply with industry standards, you need to ensure that you conduct business ethically at all times.
Con: Angry or dissatisfied clients
As a real estate agent, you get to be a guide and be present for one of the biggest decisions in a person’s life. That is both a heavy burden and an honourable position to be in. However, this can also be an incredibly stressful time for both you and your clients. Misconduct on your part, whether due to your own actions or by accident, is likely to damage your reputation. In may even result in a lawsuit against you. Such scenarios aren’t just damaging to your reputation and the industry, they may also bring you heavy financial losses.
An excellent way to manage the risk of legal action against you as a result of your professional business activities is by considering Professional Indemnity insurance for real estate agents. Professional Indemnity insurance* is an important form of protection for businesses that provide specialist services or professional advice, such as real estate agents. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. Professional Indemnity Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy. Check out BizCover for more information about different insurance options for real state agents.
Another good method of avoiding or dealing with such issues is by building a network of real estate professionals who can provide you with mentorship, perspective and support. Such resources and mentorship come in incredibly handy with clients who are difficult to deal with. Thus, learning how other real estate agents approach their careers can help you build a solid roadmap for yours as well.
The dropout rate among real estate agents is high (Real Estate Agent, 2018). If you stick it out in the industry, there are plenty of clients to choose from, and new ones enter the market every day. Like any other career, it has its hardships, but it can be incredibly rewarding if you are ready to put in the hard work and persistence.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
 Albuquerque, 2018, Why Real Estate Agents Fail And Get Out Of Business, Real Estate Agent.
 Pros And Cons To Consider Before Becoming A Real Estate Broker, Property Noise.
 The Pros and Cons of Becoming a Real Estate Agent, Real Estate Express.