The Realities of Becoming a REALTOR®
The allure of a career in real estate often draws many individuals seeking a quick start with the potential for lucrative returns. However, venturing into this field is not as straightforward as it may appear. While becoming a REALTOR® is accessible—requiring only a course, test, and license—the path is fraught with challenges that can lead to unexpected outcomes.
The Nature of Real Estate Work
Pam Rosser Thistle, an agent with Berkshire Hathaway HomeServices Fox & Roach, REALTORS® in Philadelphia, emphasizes the uncertainty associated with real estate earnings. “Understanding cash flow is crucial,” she states. “You need to be aware of when your bills and taxes are due, and how your income aligns with those dates.” This insight underscores the importance of financial planning in a profession where income is commission-based and can be irregular.
On a positive note, Thistle points out the strong sense of community among REALTORS®, which can foster lasting relationships and provide a unique behind-the-scenes view of local neighborhoods. “If walls could talk…they do. To you, because you learn so much about the houses in your selling area,” she adds, highlighting the excitement that can come from this line of work.
Insights from Experienced Professionals
Industry veterans offer valuable insights into the realities they faced when starting their careers. Jennifer Roberts, a broker at Coldwell Banker Warburg, recalls the challenges of her early days in the mid-1980s when technology was lacking. “I wish someone had told me how many quarters I needed to have in my pocket,” she jokes, referencing the necessity of using payphones for calls. She cautions new agents about misconceptions fueled by reality TV, stating that real estate success is driven by dedication and effective time management.
Roberts advises new agents to focus on a specific market niche to enhance their expertise. Concentrating on target demographics, such as first-time buyers or investors, can help new REALTORS® devise strategic marketing plans, making them more effective in their roles.
The Essential People Skills
According to Gerard Splendore, also a broker with Warburg, one of the key traits for success in real estate is enjoying interpersonal interactions. “If they don’t like people of every possible type, they will find this business to be torture,” he warns. Understanding clients’ needs, particularly in emotionally charged situations, is vital.
Splendore also highlights the importance of maintaining a sense of calm amid daily challenges. REALTORS® frequently navigate a diverse array of client requests, and developing a cool disposition is essential for managing potential crises effectively.
Realities of Training and Education
Jeffrey Decatur, a broker associate at RE/MAX Capital, provides a critical view of pre-licensing education. “A class you took to get licensed just prepared you to pass the test, period,” he asserts, urging new agents to seek real-world experience. He notes that many fail to close deals, stating, “70% of agents nationwide didn’t sell a house last year,” which illustrates the competitive nature of the market.
Rashi Malhotra, another agent at Warburg, reflects on the misconceptions regarding time commitment in real estate. While she thought the hours would be standard, she soon learned that the job requires flexibility and dedication beyond typical business hours. “In real estate, your schedule isn’t confined to business hours,” she explains.
Building a Network and Resilience
Andrea Wernick from Warburg reflects on the rollercoaster nature of real estate careers, where income can fluctuate greatly. “It takes time to develop a client base,” she notes, stressing the importance of networking both within personal circles and the broader community. Utilizing social media and attending local events can help new agents expand their reach.
Mike Fabbri, with The Agency, underscores the competitive environment of real estate, recommending that new agents find trustworthy mentors. “The most valuable thing early on is experience—getting exposed to deals and different types of clients,” he emphasizes. Often, this entails working for little or no pay initially to gain critical knowledge and insights.