A real estate career offers freedom and flexibility, but at a cost

Key Takeaways

• Whether you’re a veteran agent or new to the business, there are reasons you might want to think twice about a career in real estate.
• There’s little chance you’ll work when you want to — clients expect you to be available any time, and that might come with high levels of drama.
• A good agent will be prepared to lose money in order to do the right thing.

There are reasons you might want to think twice about chasing a career in real estate — or about staying in it if you’re unhappy or not finding success.

When people seek me out with questions about getting licensed, I don’t paint a rosy picture for them. My goal is not to talk them out of it but to be completely transparent and honest with them about this business. They deserve to know the ugly side, too.

Whether you’re a veteran agent, new in the business, or investigating a real estate career, here are a few reasons you may want to think twice about being a real estate agent.

1. “Bankers’ hours” are a myth.

A lot of agents get their real estate license because of the freedom and flexibility it affords them. Naturally, some assume they’ll be able to work 9-to-5 or selected hours around their family’s schedule.

The reality for most agents is this: You feel the pressure to work evenings and weekends. That’s when clients are available to look for properties, and they expect you to be available, too. Once a deal is underway, clients will expect to be able to reach you day and night, especially when there are time-sensitive details to be handled. Agents feel like they are “on call” seven days a week — which is why many struggle to ever take a vacation or a day off.

2. You might go 3, 6, 9, or even 12 months (or longer) without making money.

Most real estate agents work solely on commission, and you have to weather periods of unpredictable (and nonexistent) income.  A real estate deal might take 45, 60, 90, or even 180 days to close after you make the sale — and you don’t get paid until the sale closes. Even successful veteran agents rarely know what they’re going to make next month or next year.

Every agent’s career has peaks and valleys — and the most common valley is at the beginning of your career. It’s not uncommon for new agents to go 6, 9, or even 12 months before closing their first sale. When you’re out there working leads, it’s a long process. Clients start talking about buying or selling their home 8 months before they act, on average. So patience is a must.

3. There will be drama.

Clients can be under tremendous stress when buying or selling a house — financial stress, family stress, work stress. Couples divorce. A spouse loses a job. I had a client whose spouse passed away while I was representing them. Another client had a child commit suicide. Emotions run high in this business, and often you are the person your clients lean on.

You might have clients who are scheduled to close on a property they’re selling at the same time they close on one they’re buying. Then something outside of your control happens, and they’re now homeless and scrambling. Even though it’s not your fault, they blame you and put all kinds of pressure on you to solve the problem. Consider whether you’re prepared to deal with a high level of drama before you become an agent.

4. It’s not as easy as it looks on TV.

The Property Brothers make it look easy on HGTV. So do the ridiculous agents selling mansions on Million Dollar Listing. These shows are produced to make things look easy and fast. Even House Hunters is basically a fake show — by the time a camera crew shows up, the clients have already chosen their home.

If you think that business will just naturally flow to you because you’re ethical, hardworking, and knowledgeable, you are mistaken. That might be true if there were only a handful of agents in your community, but there are hundreds or even thousands. There are so many agents that even your best friends may not use you because their niece is now licensed and struggling to get her business going, and they feel obligated to use her.

5. A good agent will lose money to do the right thing.

On one of my first real estate transactions I missed a critical detail that effectively cost my client $3,500 at closing. The solution was obvious to me — I sacrificed my commission for the mistake. However, I’ve seen agents try to hide their mistakes or blame others because they need every dollar of their commission.

It’s an unfortunate fact in our industry that agents become desperate or greedy and often forego doing the right thing by their clients. But this career is about helping people realize their dreams. It’s about improving the lives of others. That’s what makes it rewarding; otherwise it’s just a lot of work.

I tell the agents at my brokerage that they must always be willing to lose money to do the right thing.