Pros and Cons of the Real Estate Business

December 7, 2017

Every career is full of anticipation and doubt in the beginning. You worry about the choices and long-term profitability, as well as about the mistakes you might make. On the other hand, hope keeps you going and convinces you that it’s all worth the effort and nerves. Those are the constant struggles every entrepreneur has to face in business and overcome them successfully.

When it comes to real estate, it’s understandable you’d have tons of questions and worries. The housing market has had its difficulties over the years, the biggest crash being in 2008 in the US. Today, being a real estate agent requires not only charisma, but also knowing the state of the economy and financial liabilities. People usually think that being a realtor is easy and can earn you a lot of money.

The truth is that it takes a lot of dedication and hard work. So if you’re considering becoming a real estate agent, here are some pros and cons to think about before making that crucial step.

You are a business owner

PROS:Having your own business is a big step, but one which is rewarding and inspiring. You control the execution of work, organise the day and work on the schedule. Being your own boss gives you the freedom to plan your working hours accordingly. You can work from home, a coffee shop or official office. The time and place for conducting business are at your disposal and you can organise it in the way that suits you best.

CONS:Although you are the boss, the real estate business is not something you can do in the strict working hours from nine to five. Most of your clients will be in their own workplaces at that time and you will probably have to organise house seeing in the afternoons.

An open house is another part of the business you must take into consideration and prepare to spend the whole day welcoming potential clients. Your client must come first if you want to sign the deal and earn the commission. Therefore, although you are the one scheduling the working hours, you will mostly have to adjust them to your client’s time.

You know the important details

PROS:Knowledge will be your best friend. You have to know the positive and negative aspects of the community where you have a piece of real estate to sell. This means that you have to know by heart all the schools, parks, crime rate and other details regarding the specific neighbourhood.

Not to mention that you must learn everything about the real estate’s history and origin, as well as any mishaps andbig repairs the owners have done. You are the trusted party, which means that you have to be well informed about all the elements significant for closing the deal.

CONS: A real estate agent is more than a seller. You will influence other people’s lives and make changes with great impact on the future. Sometimes your clients will spend their life savings to buy the property or they will come to you for advice on the loans and mortgages.

You are also responsible for the deadlines for inspections and obtaining all the licenses needed to place the house on the market. Every mistake you make can be an additional cost or fine for your client, and that will not only be damaging to them but also for your business and reputation.

You don’t need a university degree

PROS:Anyone can be a real estate agent. You can become one straight out of high school or with a college degree in something completely different. This means that becoming a realtor is not that hard, and you can quickly get all the licenses you need for the practice. On the other hand, the real estate business is great for those who like to improve themselves and constantly learn new things.

CONS:If you are not a people person, then being a realtor may be a little overwhelming for you. Clients will constantly expect you to know certain details, like landscaping, decorating and history. The latter is quite important in real estate since potential buyers like to know the heritage of the property. So be prepared to remember some facts and numbers, as well as interesting details about the neighbourhood.

You have to be familiar with financial terms

PROS:Clients won’t expect you to know everything, but will still ask you questions suited for their brokers and bankers. This is a positive thing since it means they trust you and feel comfortable discussing delicate issues like their finances with you.

Knowing the financial status of your clients may be a good learning experience that will help you in the future. In addition, being in the loop with the newest economic and financial matters regarding the real estate market can be helpful if you want to create favourable conditions for the clients, homeowners and yourself.

CONS:The trust your clients have in you is commendable, but it can also lead to some unwanted responsibility. It’s better to recommend an expert like BrokerCo mortgage broker who can answer all the questions about organising your finances and other mortgage-related issues. Even so, you still have an obligation to learn the important and significant things regarding the financial aspect.

Mostly, this is because clients will ask the basics, and it will be useful for your business to know the current state of things. Sometimes this will be a little too much, especially if you are not that savvy in financial terminology. However, putting an extra effort to get the hang of things might give you a headache but will be good for business.

You’ll know yourself better

PROS:At one point, you will have to put your limits to the test. The more clients you have, the more you will have to invest yourself in their needs and problems. They will confide in you and see you as an advisor. For some of your clients, buying a new home may come after a divorce or any other emotional change. This means that you’ll have to work on your people skills and be adaptable to your clients’ expectations. Remember that, besides earning a profit, you will also help someone acquire their home.

CONS: Handling people’s emotions and wishes can be stressful. You might need to find fast solutions and be available at all hours. The first rule is not to panic. The second one is to have the phone numbers of all the repair persons you might need, like the electrician and plumber. The bond with your clients may require that you sometimes put your own plans aside. If you are not ready to sacrifice so much of your personal life, then maybe realtor is not the right job for you.

In the end

Real estate is an exciting business and when the market is favourable, you may feel as the king of the world. Nevertheless, you should also be prepared for the slow seasons and ferocious competition. To be the best, you must adapt quickly and land on your feet no matter the troubles. If you are honest with yourself and aware of your skills, then the real estate business is something you should most definitely try. Maybe this new challenge will help you discover yourself and your dream job.