Is becoming a realtor worth it?

Question

Hello, I am currently a Sophomore in College and I am studying computer science. I am thinking about getting my Real-estate license this summer online because I have always wanted to become a realtor as well. And who knows if I enjoy realest more then my computer job I might decide to do real estate full time.

The reason I am posting this is because I want to know what mistakes most realtors make that causes them to be unsuccessful?

Is being a realtor as difficult as people say it is?

What tips do you have to become a successful agent?

Kendal James · Answer

I agree with @Jacob Sampson. If you're thinking about considering brokering real estate transactions as a career, it needs to be treated as a career not a side business.There are a ton of niches in real estate and while they may not be common there are real estate brokerages who employ agents full-time with and without commission.

The majority of agents though are independent contractors acting as 100% commission sales associates. What this means is that there is essentially no ceiling to how much money you can make on sales. What it also means is there is no floor on how little you can make. So to be successful as an independent agent you absolutely must be confident and competent making sales. On top of that though, you're an independent contractor which essentially makes you a micro-business owner, and now you need to retain more knowledge than the average employed person about all sorts of business related things... Accounting, Risk Mitigation, Marketing, Advertising, Branding, Web Design... you get the picture.A lot of those things can be outsourced but you still need to know enough about them to make hiring and project management decisions.If you're entrepreneurial and a confident salesman (or quick study) then I'd say absolutely consider it. The overhead in most cases is pretty low, especially in comparison to how much money you can make. But keep in mind that any industry with as much commission up for grabs as real estate is not a place you will find success without seriously competing.

Best way to get started is to get licensed and get to learning, don't expect to be able to support yourself off of sales in the beginning. The more time you can give yourself to learn and the more immersed you can become without becoming completely dependent upon sales for income the better off you will be.

Jacob Sampson · Answer

I think the number 1 mistake is treating it like a side business.

It is 100% commission based sales so if you are a good sales person you will enjoy it, if you don't like sales then it probably not for you.

Kevin Sobilo · Answer

@Brett Mason, I've been doing software development for ~25 years now, a real estate agent for ~12 years, and a real estate investor for ~8 years.

There is no 1 way to do well for yourself. There are lots of ways to mix and match and get what you want. The other posters are right, that working as an agent is 100% commission based. You will likely be "self employed" as opposed to a w-2 type employee. If you don't understand the difference, go learn about that.

Go read some classic books like "Rich Dad Poor Dad" and "Cashflow Quadrant". If you are up to it, you are at an age where you can take an unconventional path and avoid ending up in the rat race that typical w-2 employment puts you into.

Go talk to some local agents and investors, especially if you can find one who does both actively!

Also, never feel your education would be a waste if you don't end up with a career in your area of study. You are there for an education not training. The kind of analytical thinking you learn studying computer science plays well in lots of fields. If anything take advantage of more broad educational opportunities while you can. Communication, writing, making presentations, soft skills, project management those are all things that although not directly related to your major are in high demand these days and work to your advantage in almost any environment.

Nathan Gesner · Answer

It's absolutely worth it...if you exert the effort. You don't get your license and automatically drive a Lexus. Put the effort in and reap the benefits.

James G. · Answer

@Brett Mason do you want to be a real estate agent or are you hoping that you are going to learn more about investing through doing this? If you are going to get your license, don't do it because you think it is going to help you in your investing career. Do it because you love real estate, and you want to sell homes.

Is becoming a realtor worth it?

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