Real estate is the sort of business that everyone wishes to have. The schedule is flexible and income is great. The startup cost is not much as well. These and numerous other factors are the reasons why so many people these days want to become real estate agents or realtors and ask the question is being a realtor worth it?
Before answering that question, you must know that there is a slight difference between being a realtor and being a real estate agent. However, most people who want to become real estate agents don’t know this difference.
A real estate agent is someone who has the basic license to work in the industry. A realtor is one who has the license and access to the local MLS database.
For example, realtors in Marietta GA have access to the database of properties in their local area. Similarly, realtors in NY or Texas have access to their respective MLS databases. However, there are some requirements that you need to fulfill to become a realtor.
Now coming back to the question is being a realtor worth it or not. There are several factors that determine the answer, and each factor is discussed in detail here. So give it all a read.
What Are The Requirements To Become a realtor?
The major requirements in becoming a realtor are:
- Your age must not be less than 18 years.
- You must be a legal resident of USA.
- Take a pre-license course.
- Pass the real estate exam.
What Are The Educational Requirements To Become A Real Estate Agent?
Educational requirements to become a real estate agent are different in different states. Some require a college degree, while others require completing a pre-licensing in order to appear in the exam.
How To Pass The Real Estate Exam?
Most people do not know how to prepare for real estate exam, as a result they fail.
In order to pass the exam, you must study. There are different ways you can do the study. You can do it by registering an online course or at an institute. There are several schools, institutes and realty firms that provide required knowledge about state laws, marketing strategies, etc. Finding these institutes should not be a problem for you as everything is available on the internet.
Here are some additional tips for you to pass while taking the exam.
- Practice The Tests:
The test will be MCQ based, so do as many practice tests as possible to familiarize with the questions.
- Start With Easy Answers:
When you are handed the test, go through all the questions. Then answer only those questions that you already know.
- Minimize The Margin of Error:
If you don’t know any of the options of an MCQ, eliminate the once that are not related. That way you will have the more probability of picking the right answer.
- Skip The Questions You Don’t Know The Answer To:
Don’t waste time on questions that you don’t know the answer to. It will save you time, and by solving the answers that you know first, you will have plenty of time to analyze potential correct answers of other questions.
- Don’t Change Your Answers:
Once you have chosen an answer, don’t change it. Even if you are unsure of it. You are more likely to get it wrong.
How Long It Takes To Become A Real Estate Agent?
The period of getting a real estate license may vary from state to state. There is different hour limit in different states in order to complete pre licensing course. However, the average time period that it takes to become a real estate agent is between 4-6 months.
How long it takes to become a real estate agent also depends on the type of course you choose. Going with a traditional course would take you months. However, choosing online course can reduce the time period from months to a few weeks.
Another factor that determines the length of process is the system that your state uses to take the exam. Some states have upgraded their systems. They provide a temporary copy of the license on the test site.
While states that rely on old systems take use traditional methods, such as receiving applications through mails and replying them in the same manner. All this process can take up to a few months.
How Long It Takes To Become A Realtor In Different States?
- The hour limit in Florida is 63 hours.
- In New York, its 75.
- California requires just 45 hours.
How Much It Costs To Become A Realtor?
The average cost of becoming a real estate agent is from $600-$700. Here is the break down as to how this cost works.
- Around $50-$60 to take the exam
- Around $130 for a 2 year license
- $150 application fee
- $50 lockbox deposit
- $270 membership fee of local, state and national associations.
The cost might sound high, but it’s nothing compared to the fee and time spent in graduating from college/university.
Is Being A Realtor Worth It?
Real estate is considered to be a lucrative business. It involves huge incomes, and the time table is flexible too. You don’t have to restrict yourself to a 9-5 job where you need permissions to for a single holiday. Where you work your socks off and still get paid a fixed amount each month.
It’s complete different from a day job. Here you can have as much holidays as you want. There is no work load as you are only answerable to yourself. Also, the income opportunities are unlimited. The more you work, the more you get paid. All these factors make real estate a pretty incredible career. And this is the reason why number of people looking to become real estate is increasing each day.
But there is also a dark side to it. The number of people who fail to make it to the top is astonishingly high. In fact, only 20% of the agents who enter the market are able to make past their initial phase.
The reason behind such high failure rate is the lack of personality, attitude and the skill required to become an agent. You can say – Being a realtor is not for everyone.
If you are one of the people excited to enter real estate industry and keep asking the question is being a realtor worth it? Here is a list of pros cons that will help you determine why is being a realtor worth it in real life.
Being A Realtor – Pros And Cons:
- Getting Started In Real Estate Is Easy:
Pros – Most states have easy laws for those with an interest in being a realtor. All you have to do is to complete a pre-licensing course, take the exam and pass it.
Yes… it’s that easy!!!
Cons – the investment of time and money is required to complete the pre-licensing course. Also, there are no guarantees that you will pass the exam, as the topics can be quite complex.
- Being A Realtor – You Are Your Own Boss:
Pros – being a real estate agent means you are your own boss. You are the decision maker of all the proceedings. Even if something goes wrong, only person that you are accountable to is yourself.
Cons – being your own boss means all the responsibility comes down on your shoulders. The business strategies, client handling and growth of the business – all depends on you. Which means more work ethic, and possibly more stress.
- Income Is Great:
Majority of the people who ask is being a realtor worth it have one thing in mind – income. The pros and cons that come with it will help you determine whether being a realtor is worth it or not
Pros – Being a realtor gives you the opportunity to earn unlimited money. Day jobs have fixed salaries. But this is not the case in real estate. The income in real estate is directly proportional to amount of hard work you put in. hence giving you unlimited opportunities to take your career to new heights.
Cons – Every day is not a sunny day in a realtor’s life. The fact that there are no fixed incomes may also work against them. There are days when the market does not perform well, and could bring a dry spell with it. You might go for weeks, or even months without closing a deal, staring at walls in their offices.
- Flexible Schedule:
Pros – as mentioned above, being a realtor gives you the freedom to make your own schedule. There are no 9-5 restrictions, keeping you in the same chair for hours.
Looking for a holiday? It’s already approved since you are the one who decides when to go on a holiday and when to work.
Cons – flexible schedule means adjusting your schedule according to the clients’ needs. It doesn’t give you 24 hour freedom. You have to be on your toes all the time for you clients. If a client calls you at 2 am in the morning, you must respond him and help him out with his queries.
- It Involves Huge Transaction:
Pros – real estate involves huge transactions from one party to other. This can be very satisfactory as you are helping one party to move in to a new house, and the other party to move out and help them pursue a new dream.
Cons – With huge transactions comes huge responsibility. Both the parties involved in sale are trusting you with what is probably going to be the largest investment of their lives. So you cannot afford anything to go wrong.
If something does go wrong, the word would spread around quickly – leaving you with a bad reputation.
Overall – Real Estate Is A Good Career:
If you look at both pros and cons, you will realize that the pros are of much more significant than cons. Besides, is there anything that doesn’t have cons? I don’t think so. Everything has its own advantages and disadvantages, but if you give up looking at disadvantages, you will never be able to look at the advantages that could have taken you to the new heights.
Putting it in a nutshell, being realtor is worth it and can change your life.
How Much Do Real Estate Agents Make?
Real estate income in first few months are very little. Sometimes, an agent has to go through a few months without even making anything from the market. However, once it kicks off, there is no stopping.
Here are the average salaries of real estate agents in USA that will help you understand how much real estate agents make per year.
According to salary.com, the average real estate salaries lie between $34k-$45k. But these numbers do not represent the exact figures. Top agents in the market make way more than someone who only manages to sell a home every few months. Also, part time real estate agents also bring this number down. A successful agent can make up to $75K, which is absolutely mind blowing.
There is another factor that can make you a high earner within a short period of time. It’s being a commercial real estate agent.
How Much Commercial Real Estate Agents Make?
The commercial agents make much more than even top sellers of residential state.
The properties involved in commercial deal are worth more than residential ones such as business plazas, shopping malls and much more. Their value can up to millions of dollars which is the major factor that determines how much commercial real estate agents make.
A commercial real estate can earn up to $85k-$100k as compared to the residential agent – who on average – make $34k-$45k.
How Real Estate Agents Get Paid?
Real estate agents get paid in commission.
A commission is the fee that a real estate agent charges for his services to make a transaction possible. Usually, this fee is around 3%-7%.
Let’s say when an agent closes a deal worth $200k with 7% commission, the amount he gets from it is $14k. Out of this amount, 50% is split between the buyer’s agent and a seller’s agent, cutting it to $7k. If there are no further expenses such as broker split, office expenses, etc. the agent will take home $7k. Otherwise, the amount can go further down.
when someone asks is being a realtor worth it? The answer is “it can be hard at times, but it’s also fun if you love challenges and enjoy earning big.” Plus only hardships can turn you into successful person. Lying in bed hoping for a miracle will do nothing. So get out of your comfort zone, embrace the challenges and enjoy a successful life.