There are a lot of questions that people have about real estate as a career. Is it a good way to make money? Is it stable? Will this be something that I enjoy doing? In this blog post, we will answer all of those questions and more! We will talk about the pros and cons of working in real estate, and we will give you some tips on how to decide if this is the right career for you. So, if you are thinking about becoming a real estate agent, or if you just want to learn more about this industry, read on!
How Much Do Real Estate Agents Make?
One of the most common questions that people have about real estate is how much money agents make. Unfortunately, there is no simple answer to this question. Real estate agents can make a lot of money, but they can also make very little. It all depends on many factors, including:
– the agent’s experience
– the size and location of the market
– the type of property
Real estate agents get to decide their own hours so they have an incredibly flexible schedule. A real estate agent shouldn’t expect to make too much money though if they are barely working. Being your own boss and deciding your own schedule is a problem for many real estate agents because they are too relaxed and end up earning very little because of it.
In general, though, most real estate agents make between $30,000 and $60,000 per year. Of course, there are always exceptions to this rule. Some agents make much more than $60,000 per year, and some make less than $30,000. It varies from agent to agent.
Real estate professionals can make upwards of 6 figures a year. Selling real estate for them is a full-time job where they learn how to maximize their time to earn money.
How to Become a Licensed Real Estate Agent
You will need to get a real estate license to become a real estate agent. The requirements for getting a real estate license vary from state to state, but generally, you will need:
- be at least 18 years old
- have a high school diploma or equivalent
- complete a real estate pre-licensing course
- pass a state licensing exam
Some states require additional education beyond the pre-licensing course. You will also need to take continuing education courses to renew your license. The cost of the pre-licensing course can range from $100 to $1000. The licensing exam will cost around $60-$200. The total cost can be anywhere from $160 to $1260. It is important to note that these are just the upfront costs.
There will also be ongoing costs, such as membership fees to professional organizations and subscriptions to real estate publications. In addition, you will need to pay for marketing and advertising expenses.
The average real estate agent earns a commission of around -40% of the total property sale price. This means that if you sell a $200,000 home, you will earn a commission of $8000. The average real estate agent sells around -12-15 homes per year. This means that the average agent earns a salary of around $96,000 per year.
Most Real Estate Agents Work Part-Time
While the average real estate agent earns a salary of around $96,000 per year, most agents work part-time. Only around 20% of agents are full-time. This is because most people who become real estate agents do so after they retire from their previous careers. Or they are using real estate as extra money on top of their normal income.
Why is being a Real Estate Agent a Dream Career?
The reason this is such a popular side hustle or retirement career is that it’s financially rewarding and incredibly exciting to be your own boss and help people get their first house, or dream home.
It’s a lucrative career because the real estate market, as well as the housing market, are always fluctuating. Other careers don’t have the same opportunities to suddenly make exponentially more money.
Real Estate Careers
The real estate market is huge so there are more real estate careers than just real estate agents.
There are also appraisers, brokers, real estate developers, and property managers. Each one of these careers has different responsibilities and requires a different skill set.
So if you’re interested in a career in real estate, but being an agent isn’t quite the right fit, don’t worry! There are plenty of other options out there for you to choose from.
The most important thing is that you do your research and figure out which career is the best fit for you and your skillset.
Real Estate Appraisers
Real estate appraisers are responsible for estimating the value of properties. This is usually done by looking at comparable sales in the area, as well as taking into account the condition of the property.
Appraisers usually work for banks or other lending institutions, but they can also work for real estate investors or developers.
Real Estate Developers
Real estate developers are responsible for creating new construction projects. This includes everything from choosing the location to designing the buildings to constructing them.
Developers usually work with a team of architects, engineers, and construction workers.
Real Estate Agents
Real Estate agents help people buy and sell properties. They are responsible for showing properties to potential buyers, negotiating prices, and helping to close the deal.
Agents typically work for real estate brokerages, but some may be self-employed.
Real Estate Broker
A real estate broker is a person who has completed their training and obtained a state real estate agent license. Unlike other real estate brokers, individuals who work alone may establish their brokerage and hire additional agents.
Real Estate Agent vs. Real Estate Broker
The work of real estate brokers is similar to that of agents. Real estate brokers who specialize on behalf of their clients look for houses that match the buyer’s requirements, and then conduct negotiations, prepare bids, and assist buyers with any other concerns up to the settlement date.
A seller’s broker is a real estate agent that works for the seller. His or her function is to find and sell houses on behalf of clients to maximize profits.
Brokers must often disclose their agency relationships to all parties in a real estate transaction so that buyers and sellers are aware of the broker’s fiduciary duties.
The National Association of Realtors (NAR) reports that there were more than two million active real estate licensees in the United States in 2019.
How do Real Estate Transactions work?
Most real estate transactions in the United States are facilitated by real estate brokers.
A broker typically represents either the seller of a property or the buyer. Buyer’s brokers help their clients find suitable properties, obtain financing, and negotiate purchase offers.
Seller’s brokers list properties for sale, market the property to potential buyers, and help their clients obtain the best possible price and terms for their property.
What are the Different Types of Real Estate?
There are four main types of real estate:
– Residential: Properties that are used as someone’s primary residence.
– Commercial: Properties that are used for business purposes.
– Industrial: Properties that are used for manufacturing or production.
– Land: Unimproved property that can be developed or used for agricultural purposes.
What is the Job Outlook for Real Estate?
The job outlook for real estate is positive. The Bureau of Labor Statistics projects that employment in real estate will grow by 11 percent from 2016 to 2026, which is faster than the average for all occupations.
What are the Different Types of Real Estate Licenses?
There are four main types of real estate licenses in the United States:
– Property Manager
Each state has different requirements for obtaining a license, so it’s important to check with your state’s real estate commission.
National Association of Realtors (NAR)
The National Association of Realtors (NAR) is a professional trade organization for real estate agents.
Some of the benefits of becoming a member include access to exclusive research, networking opportunities, and educational resources.
What Are Some Skills Required for a Career in Real Estate?
To be successful in real estate, you’ll need excellent communication and negotiation skills.
You’ll also need to be able to work independently, as well as be self-motivated and organized.
In addition, it’s important to be knowledgeable about your local market and have a network of trusted professionals, such as lenders and home inspectors.
What Are Some Potential Downsides to a Career in Real Estate?
Like any career, there are also some potential downsides to a career in real estate.
For example, you may experience periods where you are not making any money.
You will also need to be comfortable with working long hours and evenings, as that is when most home sales take place.
Is a Real Estate Career Right for You?
If you want to work in the real estate industry then you will need to make sure you have real estate skills. You should also be comfortable with the idea of working long hours, as this is often required to be truly successful.
Working in the real estate industry can be very rewarding. It’s important to remember that success in this field requires dedication and hard work. If you’re prepared to put in the effort, then a career in real estate could be a great choice for you.
There are many different facets to working in the real estate industry. From sales and marketing to property management and investment, there are a variety of options available.
So, Is Real Estate a Good Career?
Overall, a career in real estate can be very rewarding.
You will have the opportunity to help people find their dream homes and build your own business.
Just be sure to do your research and work with trusted professionals to ensure a successful career in real estate.
Have you ever thought about a career in real estate? What are some of the things that attract you to this field? Let us know in the comments below!