Is It Hard to Become a Real Estate Agent? How to Overcome the Challenges

Many people are attracted to the idea of becoming a real estate agent because of the flexibility, income potential, and variety that this career offers.

become a real estate agent
Become a real estate agent | MBITION

However, becoming a real estate agent is not as easy as it might seem.

It requires a lot of hard work, dedication, and perseverance to succeed in this competitive and challenging field.

Here are some of the difficulties that aspiring real estate agents face and how to overcome them.

 

Difficulty 1: Getting Licensed

The first step to becoming a real estate agent is to obtain a license from your state.

This involves taking a pre-licensing course, passing a state exam, and meeting other requirements such as background checks and fees.

The cost and duration of the pre-licensing course vary by state, but it can range from $200 to $300 and from 60 to 135 hours.

The state exam can also be challenging, as it covers both federal and state-specific laws and regulations.

The pass rate for the exam varies by state, but it can be as low as 50%³.

Therefore, you need to study hard, take practice tests, and review the material thoroughly before taking the exam.

 

Difficulty 2: Finding a Brokerage

Once you get your license, you need to find a brokerage to work with.

A brokerage is a company or agency that provides support, training, and resources to real estate agents.

You cannot work as an independent agent without a broker’s supervision.

Finding a brokerage that suits your needs and goals can be difficult, as there are many factors to consider, such as commission splits, fees, culture, reputation, mentorship, and marketing.

You need to do your research, interview with different brokers, and compare their offers before making a decision.

READ ALSO : How Long Is Real Estate School? How to Get Your License Faster

Difficulty 3: Building Your Client Base

The most challenging part of becoming a real estate agent is finding clients.

As a new agent, you have no track record or reputation to attract buyers and sellers.

You need to rely on your personal network, referrals, advertising, and lead generation strategies to find prospects.

You also need to compete with other agents who may have more experience, connections, and skills than you.

To build your client base, you need to be proactive, persistent, and creative.

You need to network with people in your community, attend events, join associations, create a website, use social media, send newsletters, make cold calls, and follow up with leads.

 

Difficulty 4: Managing Your Time and Money

Another difficulty that real estate agents face is managing their time and money.

As a real estate agent, you are essentially running your own business.

You have to set your own schedule, plan your own activities, and handle your own expenses. You also have to deal with the unpredictability and seasonality of the real estate market.

You may have busy periods where you have multiple clients and transactions, but you may also have slow periods where you have no income at all.

To manage your time and money effectively, you need to be organized, disciplined, and adaptable.

You need to set goals, prioritize tasks, track your progress, budget your expenses, save for taxes, and prepare for emergencies.

What are the chances of making it as a real estate agent?

The chances of making it as a real estate agent depend on various factors, such as your skills, motivation, market conditions, and competition.

Realestate agent [PHOTO COURTESY OF THE MOTLEY FEE]
Realestate agent [PHOTO COURTESY OF THE MOTLEY FEE]

According to the U.S. Bureau of Labor Statistics, the median annual salary for real estate agents was $48,340 in 2020, and the unemployment rate was 3.1%.

However, these figures may not reflect the reality of many agents, as income and employment can vary widely depending on location, experience, and performance.

One way to measure your success as a real estate agent is to use some performance metrics that can help you track your progress and goals.

According to Paperless Pipeline, a real estate transaction management software company, some of the key metrics for real estate agent success are:

Lead conversion rate

This is the percentage of leads that you convert into clients. It indicates how effective you are at generating and nurturing leads, as well as how well you match your services with their needs.

Listing success rate

This is the percentage of listings that you sell within a certain period of time. It indicates how well you price and market your properties, as well as how responsive you are to buyer inquiries and offers.

Average days on market

This is the average number of days it takes for your listings to sell. It indicates how fast you can close deals and how in tune you are with the market trends and demand.

Average commission per transaction

This is the average amount of money you earn from each transaction.

It indicates how profitable you are and how well you negotiate your commission rates.

Customer satisfaction rate

This is the percentage of customers who are satisfied or very satisfied with your service. It indicates how well you meet or exceed their expectations and how likely they are to refer you to others.

By using these metrics, you can evaluate your strengths and weaknesses as a real estate agent and identify areas for improvement. You can also compare yourself with other agents in your area or niche and see how you rank among them.

Conclusion

Becoming a real estate agent is not an easy path, but it can be rewarding if you are passionate about helping people buy and sell properties.

You need to overcome many difficulties such as getting licensed, finding a brokerage, building your client base, and managing your time and money.

However, with the right attitude, skills, and strategies, you can succeed in this exciting and dynamic career.

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