What They Don't Tell You When You're Becoming A Licensed Realtor

As great as it is to be your own boss, make your own hours, be in charge of your destiny, etc., there are also many discouraging facts that you will not be told while you study to be a licensed real estate agent and a Realtor. If you are considering a career in real estate as a licensed Realtor, read this first:

Roughly 20% of all real estate agents make up 80% of all sales

Real estate is a career field where the more established you are, the more business you will draw up. Getting a real estate license and NAR membership isn’t difficult, so you will have plenty of competition from both new and veteran real estate agents. To put this simpler, if you want to make a living out a real estate, you can’t be just an average agent with average sales. Only the best make it in the real estate business, and the remaining 80% usually drop out or just practice real estate on the side. However for new real estate agents, this means that your first few years will typically be anything but lucrative, which leads to the next fun fact…

Most agents drop out after 1 year

Achieving a successful career in real estate is not for those who give up easily. It’s full of hustling, rejection, and little money to reward you for all your effort. Most new real estate agents don’t make more than $10,000 in their first few years, while still paying upwards of $5,000 in fees and business expenses. Factor in that many new real estate agents aren’t properly trained by their broker, and you’ll see why so many quit before their career ever starts to take off.

Fees are abundant, and will quickly add up

This comes as a surprise to many, and it leads to many inactive licenses for those who decided to get their real estate license and NAR membership just to have it on the side. Along with state fees, you’ll have NAR fees, state Realtor fees, and real estate brokerage fees should you decide to hang your license with any real estate company, and business expenses if you decide to work actively in the field of real estate. The fees add up quickly, and if you aren’t doing anything with your license and NAR membership, you’ll be losing a nice chunk of change annually.

Most brokers won’t train you at all

All real estate companies are different, but in general you will not receive the necessary training to truly be successful on your own. Even the small real estate companies who generally care are not going to truly train you. Most real estate companies will give their new agents the basics, but leave it up to you to take it the next level and become apart of that 20% who make up 80% of all real estate sales.

You’re the first to enter a recession, and the last to get out of it

When you work in a service based industry, you will be the first one to be affected by a recession, and the last to not suffer the consequences of it when the economy turns around. In hard economic times it becomes difficult to earn a sufficient income even for the most established veteran real estate agents, let alone for the newer agents. If you’re becoming a real estate in a down economy, expect things to be even tougher than they already are for new agents starting their real estate career.