The Realities of Being a Real Estate Agent: Hard Truths You Should Know

Popular TV shows such as Selling Sunset and Million Dollar Listing have made us think that all Realtors lead easy and glamorous lives. We now believe that the everyday life of a Realtor working in a top real estate agency is all about effortlessly closing deals and earning unlimited commissions. And it is often this glamorous image portrayed by TV shows that draws most of us to a career in real estate. We step in with the expectation that our work life as a Realtor will mirror the luxury and fun that we often see on screen.

However, the reality of being a real estate agent is quite different. Here are some of the harsh realities of being a Realtor that you often do not see on TV –

1. It Takes Time to Establish Yourself as a Successful Realtor

Don’t expect to land a pool of leads and start closing endless deals just after a few months of getting your license. This applies even when you have joined the best real estate brokerage that is supporting you in every possible way.

Usually, it can take anywhere from three to six months before you get your first client and even longer to close your first deal. In reality, during the initial phase as a Realtor, you’ll spend a whole lot of time in networking and marketing. This means attending open houses, participating in industry events, building a strong online presence, and more such things. Each of these activities will help you build a presence in the local housing market and get more leads and clients. This is why the experts of a real estate agency always advise new Realtors to have a savings fund for the first few months – at least until you can get a client and close a deal.

2. The Real Estate Career Isn’t as Flexible as People Think

Many new agents think that they can set their hours, take long breaks and work whenever they want as a Realtor. But there’s more reality to this flexibility.

As a Realtor, you would have to be available when real estate clients need you which can mean working in odd hours, often on evenings and weekends. So, while, you would have more control over your time than a traditional 9 to 5 job as a Realtor, it’s your client’s needs and convenience that will ultimately dictate your schedule.

3. The Commission Rate for All Deals Is 6%

Another thing new professionals of a real estate brokerage must know is that the commission you earn from a listing isn’t always a set percentage. For instance, the commonly referred 6%.

The actual commission cut you get from a deal can vary significantly based on several factors. For example, if the housing market is slow and you’re struggling to get leads, you might have to negotiate the commission with clients. Also, the years of expertise you have under your belt will play a key role in the commission you can command from clients. As you start your career, you may not have an established reputation yet which can make it a tad more difficult to charge a higher commission.

4. All the Commission from the Listing Will Be Yours to Keep

No, Realtors do not get to keep all the commission they make off a listing. When a deal is closed, the total Realtor commission is usually split between the buyer’s agent and the seller’s agent. For example, if the total commission is 5%, as a buyer’s agent or the seller’s agent, you’ll receive only half of that which is 2.5%.

But that’s not the end of the story for the Realtor commission cut. You’ll also have to split your share with the real estate agency you work under. Depending on your agreement with the brokerage, they might take anywhere from 20% to 50% of your commission.

However, you need to keep in mind that in exchange for these fees, your brokerage provides you with a ton of resources and support that can help you thrive better in your Realtor career. For instance, the brokerage will provide you with marketing support to help promote yourself and your listings, as well as training programs to improve your skills and keep you up-to-date on the housing market. So this investment in a brokerage can actually benefit your real estate career in the long run.

5. You’ll Only Use a Tiny Fraction of What You Learned in Pre-Licensing Class

No doubt, you need the pre-licensing class to understand the basics of real estate laws, contracts, and ethics. However, only 5% of what you learned in these classes will be applied in your daily life as a Realtor.

The real learning for the professionals of a real estate brokerage usually begins when you step into the field and start working with clients. This is when you’ll face real-life situations that your pre-licensing classes didn’t fully prepare you for. You’ll learn how to negotiate deals, handle client concerns, and adapt to the ever-changing housing market. Every interaction you’ll have with your client or every deal you close will teach you something new, whether it’s about building trust, understanding client needs, or navigating challenges.

Also, your real estate agency might offer you comprehensive and regular training programs to hone your skills as a Realtor. Additionally, you must stay open to learning from your colleagues and seniors at your brokerage too. Their experiences can help you learn a lot of practical knowledge that wasn’t probably covered in your classes.

If You Put in the Effort, You Can Have a Glamorous and Successful Life as a Realtor

True, being a Realtor requires a lot of hard work, long hours, and extra dedication. But if you’re truly passionate about this profession and give your best, your daily life as a Realtor can be rewarding. In fact, with commitment and perseverance, you can create a career that’s not only fulfilling but also aligns with the fun and glamorous lifestyle often shown on TV.

Remember, every successful Realtor of the top real estate brokerages started just where you are now. So, stay committed, keep pushing forward, and you might soon find yourself living the perfect Realtor life you’ve always dreamt of.