Is now a bad time to become a licensed agent?
For year's I have loved real estate I have bought several homes and flipped them but at this time I am considering taking classes to become a licensed agent. Advice please.
Never a bad time to get started. Always have to start somewhere!
There are less buyers buying BUT it is a great time to start. Many agents are not active especially around the Winter time. Ideal time to start, build a database so when Spring time comes you'll have business. Spring time real estate always pics up so you want to build your pipeline 3-6 months ahead. It's not typically a quick thing, takes a few years to have traction. Be prepared for that, don't expect to sell a lot out the gate.
Hi Mary!
Sounds like my story before I became an agent. I bought numerous investment properties and flipped some, and held others long term. The whole time I was thinking I should get my license but kept putting it off. I now wish I would of just pulled the trigger years ago - because I truly enjoy helping others buy and sell real estate. I would say - go get it! I will follow that up with , only get it if you are looking to get into sales and help others, if you are just getting it to buy and sell your own properties, it is likely that a full time agent, with extreme market knowledge would be worth their weight in gold. As long as you are ready to put in the work in the sales business, while continuing to grow your own investments, then getting your license is a no brainer!
With today's interest rates, affordability is an issue with many buyers. Inventory in my market is almost non-existent and prices are not dropping. But that's in my market and others are experiencing some price drops to accommodate interest rates that are now in the 7% range.
Bottom line: it's a tough time to start a business in real estate - especially when you will need to pay desk fees to a Brokerage to hold your license as well as fees to the MLS and Realtor's Association. Reality. Not always what we want or like to hear.
Having said that, your odds are better if you target a specific type of buyer. With your flipping experience, you might want to target like minded investors and specialize in those properties - and you'll need to place your license with a firm that is known for doing that type of business. You'll also want to make sure that you're not seen as a competitor with potential clients over those properties. A couple of other things to know: Getting your license will prepare you for nothing. It's a weeding out event. The real learning happens after-the-fact so you will want to find a mentor or join a realtor team that can build your knowledge. And, it will be a forever process; real estate is so diverse and always changing that if anyone tells you that know everything about real estate, you should thank them for the warning and bolt!
Nothing great is easy...just prepare for a hard entry and be the best at what you do.
Best...
I wouldn’t say it’s a bad time but the volume of transactions are down. Just keep in mind, a license doesn’t equate to revenue. Skill, talent, and hustle do
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It's a bad time for fake realtors who wanted to make this a hobby. I saw a crazy statistic that most realtors ever were birthed in the last 2 years and most realtors ever are deactivating their license right now
Hobby realtor? I am looking at this as a career option!
Quote from @Mary E. Taylor:
Hobby realtor? I am looking at this as a career option!
Just go in with eyes wide open. We have a record number of agents and the market is slowing down, which means it will get harder than usual to make good income for the next 1-2 years. I expect we'll see a large number of newer agents give up their licenses in 1-2 years, so this should balance out.
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Quote from @Mary E. Taylor:
For year's I have loved real estate I have bought several homes and flipped them but at this time I am considering taking classes to become a licensed agent. Advice please.
why? What advantage does a realtor have vs someone like me? I have access to the same online tools, well not MLS ( but I can get any info I need ) and the other search engines provide more than enough info , so why ?
Hi @Mary E. Taylor! It's a great time to become a licensed agent and here's why. If you are looking to build a career out of it then it's never a bad time to start but it will take a lot of learning on your part. Learning doesn't equate to income and many people getting into real estate as a full time agent don't take into consideration how long it might be before they get a commission check and what expenses they need to consider before that commission check. You can always find a local brokerage in your marketplace and speak with the manager/managing broker of that office to familiarize yourself with the costs to get a license, maintain it, and what other reoccurring fees to consider.
I got into real estate at the age of 27, that was late 2012 and here I am 10 years later. I've learned a ton and keep learning. Always keep looking at how you can provide value to your client, be they buying or selling.
The real estate market will be slower over the next 2+ years. Slower equating to less overall homes changing hands. Many agents that were just getting by in a great market are not committed to growing their circle of people they know, those agents will find themselves with little to NO income and many will look elsewhere for income instead of paying for maintaining their real estate license. So the weakest agents will be weeded out. Homebuyers and sellers choose to work with who they know, like and trust. The more people that know what you do and see your commitment to being great at it, the more likely they will refer their friends and family your way when someone is in need of a real estate agent. Finding your way to meet people that will be buying/selling is your main goal, if you can create a system to always find the people that will need your service then you will figure everything else out. Knowing what to do once you find those people is only half the battle, if you are an agent but can't find the people that need your help, all the knowledge in the world will not make you any money.
If you are committed and understand what it takes to succeed in this business, then it is a GREAT time to get into real estate as an agent because you will learn how to work hard when it is harder out there and you will grow as an agent and as business ramps up and other agents get weeded out, you will find yourself doing more and more business and with some background in flipping already, you will have a much stronger pulse on how your local market is, giving you more confidence on the flipping end. Best of luck to you.