Pros and Cons of becoming a Real Estate Agent

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mrmass
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Re: Pros and Cons of becoming a Real Estate Agent

Post by mrmass »

nick evets wrote: Wed Dec 23, 2020 11:42 am
wordsmith11 wrote: Sun Dec 20, 2020 2:44 pm Super informative. Thank you! I wonder if car sales is similar...
I doubt the industry has changed much since I sold cars (many, many years ago) so I'd say it's similar but worse. :)

1) There are no requirements nor licensing - basically a dealership gives you something to sell, and a place to do it.
2) If you don't pay for yourself (and the dealership/owner has to pay minimum wage for hours worked not covered by your commissions...you'll only last a month or two).
3) The stigma is horrible.
4) The hours are horrible.

That said, a couple salesmen were professionals, and didn't hang around in the pack waiting for 'ups,' but worked diligently, networked, followed-up, and made a decent living; especially those that were promoted to either F&I or sales manager, albeit with even more hours and pressure.

<edit - apologies for side post>
I bounced around selling cars many many years ago. One of my shorter stints (as in 1 week) was a Ford dealership that would announce "Ducks in the pond" when an "up" or potential customer arrived on the lot.

Hours how does 9-9 2 days plus 2 "half" days of 9-3 or 3-9 plus a full Saturday and every other Sunday sound? So 1 day off, and god forbid your sale/customer wants the car on the day off...guess what, you're coming in.
nick evets
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Re: Pros and Cons of becoming a Real Estate Agent

Post by nick evets »

mrmass wrote: Wed Dec 23, 2020 12:59 pm
I bounced around selling cars many many years ago. One of my shorter stints (as in 1 week) was a Ford dealership that would announce "Ducks in the pond" when an "up" or potential customer arrived on the lot.

Hours how does 9-9 2 days plus 2 "half" days of 9-3 or 3-9 plus a full Saturday and every other Sunday sound? So 1 day off, and god forbid your sale/customer wants the car on the day off...guess what, you're coming in.
Our phrase was "Joe Cook." ie, "paging Joe Cook..." over the PA, constantly, whenever the eagle-eyed managers saw someone w/out a salesman on the lot....There was no winning with the hours: if you were selling, "Don't END your hot streak!!!," and if you weren't selling, "You don't deserve to take time off."

It was an incredible education in human behavior and attitudes towards money, however. I'm certain real estate is similar, though more polished around the edges.
jaqenhghar
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Re: Pros and Cons of becoming a Real Estate Agent

Post by jaqenhghar »

nick evets wrote: Wed Dec 23, 2020 1:08 pm
mrmass wrote: Wed Dec 23, 2020 12:59 pm
I bounced around selling cars many many years ago. One of my shorter stints (as in 1 week) was a Ford dealership that would announce "Ducks in the pond" when an "up" or potential customer arrived on the lot.

Hours how does 9-9 2 days plus 2 "half" days of 9-3 or 3-9 plus a full Saturday and every other Sunday sound? So 1 day off, and god forbid your sale/customer wants the car on the day off...guess what, you're coming in.
Our phrase was "Joe Cook." ie, "paging Joe Cook..." over the PA, constantly, whenever the eagle-eyed managers saw someone w/out a salesman on the lot....There was no winning with the hours: if you were selling, "Don't END your hot streak!!!," and if you weren't selling, "You don't deserve to take time off."

It was an incredible education in human behavior and attitudes towards money, however. I'm certain real estate is similar, though more polished around the edges.
Any chance you could share more about "It was an incredible education in human behavior and attitudes towards money"? I can only imagine what you must've seen!
mrmass
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Re: Pros and Cons of becoming a Real Estate Agent

Post by mrmass »

nick evets wrote: Wed Dec 23, 2020 1:08 pm
mrmass wrote: Wed Dec 23, 2020 12:59 pm
I bounced around selling cars many many years ago. One of my shorter stints (as in 1 week) was a Ford dealership that would announce "Ducks in the pond" when an "up" or potential customer arrived on the lot.

Hours how does 9-9 2 days plus 2 "half" days of 9-3 or 3-9 plus a full Saturday and every other Sunday sound? So 1 day off, and god forbid your sale/customer wants the car on the day off...guess what, you're coming in.
Our phrase was "Joe Cook." ie, "paging Joe Cook..." over the PA, constantly, whenever the eagle-eyed managers saw someone w/out a salesman on the lot....There was no winning with the hours: if you were selling, "Don't END your hot streak!!!," and if you weren't selling, "You don't deserve to take time off."

It was an incredible education in human behavior and attitudes towards money, however. I'm certain real estate is similar, though more polished around the edges.
Sure was one time at a Nissan store the owner maybe the sales managers would skim the commissions. Never told us invoice or acv. (basically what our commission should be calculated on) It was brutal.
tj
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Re: Pros and Cons of becoming a Real Estate Agent

Post by tj »

jfn111 wrote: Mon Dec 21, 2020 2:40 pm I had happened to represent buyers for 2 of her listings and mentioned to her that if she was looking for an old fat buyer's rep., I'm her guy.

What does this mean? Why wouldn't she dual represent?
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jfn111
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Re: Pros and Cons of becoming a Real Estate Agent

Post by jfn111 »

tj wrote: Wed Dec 23, 2020 6:00 pm
jfn111 wrote: Mon Dec 21, 2020 2:40 pm I had happened to represent buyers for 2 of her listings and mentioned to her that if she was looking for an old fat buyer's rep., I'm her guy.

What does this mean? Why wouldn't she dual represent?
I probably wasn't clear, I represented buyers that purchased two properties where she was the listing agent. I was an agent for a different brokerage at the time.
tj
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Re: Pros and Cons of becoming a Real Estate Agent

Post by tj »

jfn111 wrote: Wed Dec 23, 2020 7:24 pm
tj wrote: Wed Dec 23, 2020 6:00 pm
jfn111 wrote: Mon Dec 21, 2020 2:40 pm I had happened to represent buyers for 2 of her listings and mentioned to her that if she was looking for an old fat buyer's rep., I'm her guy.

What does this mean? Why wouldn't she dual represent?
I probably wasn't clear, I represented buyers that purchased two properties where she was the listing agent. I was an agent for a different brokerage at the time.
How did you convince her to start a business together after that, though?
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jfn111
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Re: Pros and Cons of becoming a Real Estate Agent

Post by jfn111 »

tj wrote: Wed Dec 23, 2020 7:34 pm
jfn111 wrote: Wed Dec 23, 2020 7:24 pm
tj wrote: Wed Dec 23, 2020 6:00 pm
jfn111 wrote: Mon Dec 21, 2020 2:40 pm I had happened to represent buyers for 2 of her listings and mentioned to her that if she was looking for an old fat buyer's rep., I'm her guy.

What does this mean? Why wouldn't she dual represent?
I probably wasn't clear, I represented buyers that purchased two properties where she was the listing agent. I was an agent for a different brokerage at the time.
How did you convince her to start a business together after that, though?
Again, I just casually mentioned that if she was looking for a buyer's rep I was available. She's a large volume listing agent and was working solo. She gets a lot of move up buyers where she lists their home and helps them find a new home. She was handing off the referrals to other agents, when she was to busy, now she can hand them off to me for a percentage.
What works well for me is that I only give her a percentage for business that she refers to me. I have my own book of business that's mine. Everything is run under her name so I have no advertising expense and have an expert to fall back on.
confusedinvestor
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Re: Pros and Cons of becoming a Real Estate Agent

Post by confusedinvestor »

Aged Maduro wrote: Wed Dec 23, 2020 5:06 am
confusedinvestor wrote: Wed Dec 23, 2020 3:19 am Hi OP,
How much is the avg yearly expense to keep my RE license and be established with a broker/agency, if I make zero sales ?

I wanted to become a RE agent as a hobby after I retire at 55 from my current job as IT/Cloud engineer, as I "think" I'm good in sales and always like the people aspect of RE.

This post concerns me as I maybe day-dreaming of a RE post-retire hobby (I wouldn't obviously need any income from my commissions....)

ps: I'm in CA
You're probably looking at a minimum of $2,500 a year in dues and fees just to keep your license active at a brokerage. This includes NAR dues, state association dues, MLS dues, lock boxes and keys, continuing ed, E & O Insurance and agency fees. They will also try to get you take expensive sales courses on your own dime from which the agency typically gets a kickback. You will also have to add in gas and wear and tear on your vehicle once you start driving around clients. Incidental marketing fees for copies, post cards, signs and internet subcriptions also accumulate once you start taking on clients. So, more like a minimum baseline overhead of $10,000 a year if you are going to do it full time. If you don't need the money then selling real estate can be a fun and rewarding career. Many doctor's wives and retirees take this approach.
Well, sounds like an bit expensive hobby, post retirement, thanks again for the information.

I still dont understand why technology weren't able to disrupt this industry, eg: Redfin.
2tall4economy
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Re: Pros and Cons of becoming a Real Estate Agent

Post by 2tall4economy »

Fair, but I would argue the first six cons are the same whether you’re in a Fortune 500 or a real estate agent.

Source: my experience as a real estate agent and in fortune 500s.

Also, I don’t know who in their right mind would ever be a sales agent. Buy a house and rent it out for 3 years and you can be a broker and avoid half of the things you mention as cons without.

Even If you don’t want to own rentals (and I can’t imagine why not if you have that level to access To information and leads), I don’t know why any sales agent would ever work for someone else after their minimum years as a sales agent came up.

Yet many, many, many, do exactly that.
You can do anything you want in life. The rub is that there are consequences.
helloeveryone
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Re: Pros and Cons of becoming a Real Estate Agent

Post by helloeveryone »

arsenalfan wrote: Sun Dec 20, 2020 8:01 pm Thanks for posting!

Been contemplating becoming agent since I buy 2-3 properties a year for around $400-500k each. I find all the deals myself off market or Redfin, and basically have been wondering why I use a realtor at all since I have a closing attorney lined up. Done a few without realtors, but most sellers want to use a realtor.

Think it’s worth it to become a realtor and get a part of the 2.5-3% commission?

And What do you recommend when it comes time, 30 years from now, to sell ~15 properties each worth about $500k? And the primary home of $2mm?
When we bought our home we had a narrow search so did all the searching online, settled on three homes that met all criteria - then called a friend's realtor friend and negotiated I think 2% instead of 3% given we knew we would buy 1 of those three homes. I hope never to have to buy another home but if we did it again I think that's what we would do again.
jfunk138
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Re: Pros and Cons of becoming a Real Estate Agent

Post by jfunk138 »

My wife has been been an agent for 4 years now. I don't think she even makes minimum wage when accounting for hours worked.

That said... I still think becoming a real estate agent vastly superior to what other folks looking for a flexible, work-from-home gig usually end up doing: MLM's.
Thegame14
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Re: Pros and Cons of becoming a Real Estate Agent

Post by Thegame14 »

everyone in the world is a "part time" real estate agent, so there is a TON of competition everywhere...
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