I've recently been recruited by a real estate agent suggesting I get into the business. I work in a shoe store and when I helped her she told me that my customer service and people skills would make me a great fit for real estate. It's something I've considered before so now I'm really looking into it. Basically I would just like to know everything I can about the business before I make the decision to take this career path and begin the schooling. What are the advantages and disadvantages? What is the job itself like? What's it like working on commission? What are some common mistakes people make that I would want to avoid? Really any information or advice you can throw my way would be greatly appreciated. If I'm going to do this I need to commit and be smart about the way I go about it. Thank you in advance.P.S I live in California. In case that would be helpful to know.
You could make it big, it depends on you and your willingness to work.
Do not think of it as a job. Think of it as starting a business. You work hard and often do not get paid. Sometimes you get paid and not work very hard. I would find a way to work as someones assistant for a while so you can see what makes the difference between success and failure.
Become a referral agent. This is the best bet all around. As a regular real estate agent, you have to work under a broker in an office and pay all kinds of fees monthly. The other agents are cut throat. Working full time is the only option for attempting this type of agent and you may make very little money. As a referral agent, you simply hook up buyers and sellers with agents. It's very easy to do and the license is good in the entire U.S. so if you move you can use the license anywhere. Just as an example, I was in a real estate office for one year as a regular agent and not only didn't make money but lost money due to fees. As a referral agent for over 13 years, I made money every single year. The license fees are much less as well for a referral agent.
Does this agent want you as his/her licensed assistant? Or they just want you to join the business? If it's the latter, I'd seriously consider whether or not it's a joke or not since no one ever says that unless they genuinely think you can cut it but want to offer you absolutely nothing. Statistics are 50% of new agents quit within their first year. Of the remaining 50%, 50% of them quit within 3 years. It's a tough business. For my real estate board, 80% of sales are done by 20% of agents. That goes to show that there are tons of agents who make nothing. You have to pay to get licensed, then you have your monthly brokerage fees. Let's not forget start up costs like a website, branding, business cards, real estate signs, etc. You get paid solely on commission. So you can bust your butt yet still make nothing. In the beginning I literally worked 80hr weeks and I made less than $25K that year. The next year I didn't work as hard but I made a lot. If you don't have a large network, you'll be doing open houses for awhile or taking people's leads for a percent in return back to them. It's a very tough business but if you have enough money saved up to survive the first few years, you will love it. It's incredibly fun but also incredibly stressful.
