Working as a real estate agent: Pros and cons

Thinking about becoming a real estate agent? 

Working as a real estate agent can be a life-changing career opportunity. If you’re dreaming of a role that has high-income potential, offers independence, and has a flexible schedule, a career as a real estate agent may be just the ticket you’ve been looking for. 

However, like any other job, you will also face numerous challenges as a real estate agent. While it promises lucrative returns,  it’s a profession that requires hard work and ongoing sacrifices in order to succeed.

If you are interested in getting into this career as a real estate agent, you must be fully aware of what you are getting yourself into.

To help you make a more strategic decision regarding your future career, here are some pros and cons of being a real estate agent. 

What is a real estate agent?

First, let’s briefly discuss what a real estate agent is and what they do. 

A real estate agent is a licensed professional that represents real estate sellers or buyers. Simply put, they help to 

operate, negotiate, and arrange the buying and selling of properties.

Some real estate agents work independently, while some operate under the supervision of a real estate broker to represent clients.

Generally, real estate agents earn money through commission or they earn part of a property's sale price. This means the income of real estate agents is directly linked to the overall volume and price of the property they sell.

Being a real estate agent can be a full-time or a part-time job. In Australia, you will need a real estate license to be able to work as a real estate agent. 

The role of a real estate agent is a combination of administrative, research and marketing duties. Some of their duties include assisting buyers and sellers, performing real estate analysis, looking for open property listings, mapping out and running advertising campaigns, scheduling property showings and inspections, answering and returning phone calls, and networking with potential clients.

What are the pros of working as a real estate agent?  

The upsides of working as a real estate agent make a compelling argument for this role as a career choice. Pros of this profession include: 

• Flexible working hours

One of the biggest selling points of becoming a real estate agent is that you are in control of your own time. The freedom and independence the job provides is the number one advantage cited by real estate agents.

Agents can work flexible hours, meaning you are not limited by the 9-to-5 working hours norm. If you choose to pursue this career, you don’t need to punch in a time clock, have to sit through endless boring staff meetings or follow the order of corporate hierarchy.

This means that you are the boss of your own schedule and that you can arrange your work around other personal matters. Agents can take off during the day to attend a child’s school event or go to a doctor’s appointment if they properly manage their work schedule. 

• Helping clients 

There is more to a real estate agent career than the money. One of the most underrated benefits of becoming a real estate agent is the emotional rewards you get from helping a client. 

Buying a home or an investment property is one of the biggest financial decisions a person can make in their life. As a real estate agent, you get to help your clients find their dream home or property. 

By helping a home buyer identify and buy their dream home or profit-producing property, you get a sense of purpose in your profession. The personal and emotional side of seeing your clients and witnessing a major event such as buying or selling property makes all the trouble worth it in the end. 

The satisfying experience can also motivate you to accomplish more for yourself and your future clients. 

• Unlimited income potential

Another upside of being a real estate agent is the income potential.  There is no income cap in your profession, as there is no hourly rate for your work. 

While it’s true that you get paid through mostly commissions, it also means that it will be up to your motivation and creativity to decide how much money you make. With strong business knowledge and plenty of dedication, you can get more out of your career as a real estate agent.

Since you will get a percentage of the selling price of the property, some real estate agents make their yearly income from just a handful of properties.

For example, let’s assume that the selling price of a property is one million dollars and you will get a 3 per cent commission. This means that you will pocket $30,000 from just this one sale. If you sell a few of the same houses at the same price point per year, you will make a six-figure income.

Just remember that most of your work will be based on referrals, so networking is essential.  So, the more you use your socializing and networking skills, the better it is for you in terms of finances.

• Career growth

There is plenty of ways you can decide to grow as a real estate agent. A corporate ladder-climber can aspire for a promotion in a company, but a real estate agent can hope for virtually any career path. 

In this profession, you have the opportunity to build your own business and brand. Further in your career, you can seek out other opportunities both in and outside of the real estate industry with your real estate agent experience. 

For example, you can transition to a career as a  residential appraiser, property manager, leasing consultant, office manager, customer service representative, or sales associate. Or you can decide to open up your own real estate firm. For most agents, being a real estate investor is the next logical step. Therefore, the available career paths for real estate are limited only by their imaginations!

• You can build a strong network

Because you will meet people from all walks of life as a real estate agent, you have the opportunity to create a solid business network.

If you play your cards right and you are willing to put in the needed time and effort in building those relations, there’s a high chance that you will profit from your connections for many years, even decades of your career. 

Remember that your income depends on the number and the value of the properties you handle. This means that referrals will be your bread and butter and a strong network equates to financial and professional security. 

Hence, don’t underestimate how important your network will be for your success as an agent and make sure that you utilise this powerful tool to succeed in the competitive market.

What are the cons of working as a real estate agent?  

Being a real estate agent also has its downsides, including: 

• Long hours and hard work

While real estate agents have the advantage of working on a flexible schedule, one downside is that most agents work more than the standard 40 hours per week. This is because most of the work involves socialising and networking to develop contacts and build relationships with prospective clients. Not to mention, there is really no set time limit for some of the work involved as an agent. 

As we’ve said, not having a set schedule may mean agents have to work during weekday evenings or over the weekend. While they may have time off during a weekday morning or afternoon, they may also have to miss out on time with family and friends over the weekend.

To attract clients, you also need to put in the hard work. This involves managing your own marketing, clients, listings and various transactions all at once. Therefore, to succeed in this profession, you need to have both passion and discipline.

• No guaranteed income 

Real estate agents can’t count on a paycheck every fortnight. Basically, they never know when their next payday will arrive. 

As a real estate agent, you earn money based on your own transactions. If you don’t have a client, you won't receive a paycheck. And on slow periods (which can last as long as several months), this could mean little to no income. This also means that your salary will greatly vary over time and many people are not able to deal with these financial swings in a proper manner.

 For those who are just starting out as an agent,  they may not be able to make a sale for months in the beginning. Therefore, it’s advised to have a nest egg or other sources of income to make it to that first closing. It’s also a safe bet to keep holding on to savings for months when you can’t close a deal. 

On the upside, once the ball starts rolling and they’ve made a sale, agents can see a flurry of sales that leave their bank accounts overflowing. It takes self-discipline, patience, and careful money management to overcome this setback. 

• Stressful process

Though you get to experience the excitement of getting your clients into a new home or property, the process often comes with some stress. 

Due to the gravity of the prospect of buying or selling a home, tension levels can run high throughout the entire process. Your clients have to make a significant financial decision and may often feel conflicted or confused.  

Therefore, while it’s rewarding to work with people in these situations, but it can also be very stressful and have challenging moments to manage. 

• Dealing with different personalities

As a real estate agent, you will mostly be dealing with clients and other agents with different personalities. Some people may be friendly, while others may be harder to get along with. 

Additionally, it’s difficult for some people to separate business from their emotions. If you are someone who can’t handle confrontation and remain level-headed in heated situations, being a real estate agent may not be ideal for you. 

• Single transactions

Unlike regular businesses, single transactions are the norm when it comes to real estate. Most of the people you will encounter will only plan to either buy or sell one property with your services. 

But on an optimistic note, while most of these transactions are a one-time deal, your good work can resonate with your clients. Whether or not your clients choose to use your services again, they can refer you to the people they know. Word of mouth, especially positive ones, can help you build your client roster and, therefore, boost your earnings as a real estate agent.

Now that you know the pros and cons of being a real estate agent, do you think you have what it takes to be one? Let us know in the comments below.