What Nobody Tells You About Being a Real Estate Agent
A while back we shared a post on Instagram addressing the very real and frightening messages we’ve been receiving from people looking to become a Real Estate Agent because “there’s a lot of money to be made.”
We love to see that we’re inspiring people and showing the fun side of things, but there is A LOT that many don’t see. We’re trying to get better at sharing the real and raw side of the industry, but we also wanted to put our thoughts on paper and share the stuff nobody else does. So for anyone who has ever considered becoming an agent, this one is for you.
Before we dive deep into the Real Estate world, let us preface with this: We LOVE our job and we LOVE our clients. Also, before anyone gives us any hate, this post is not at all meant to scare anyone out of starting a career in real estate, but rather an opportunity for us to share some of the things we wish we knew before making the career switch.
We’ll touch on a lot of different aspects - business, life, and relationships, so get comfy. Or scroll to the very bottom for the 30-second version!
01. There is No Barrier to Entry
Comparatively speaking, the barrier to entry into real estate is almost non-existent. Two pre-license courses, 4 exams, a fingerprint and background check, a few fees and you’re good to go. For someone that is advising clients on one of the biggest transactions of their lives, that doesn’t sit well with us. Not only that, but the pre-license courses only cover 1/100 of what you actually need to know. They don’t teach you what to do to win a listing appointment. Or what to do if your Buyer wants to terminate a transaction. Or how to craft a strong offer on a home that already has multiple offers. That’s why we strongly encourage all new agents to join a team, hire a mentor and absorb as much information as humanly possible.
02. Not All Teams Are Created Equal
There are dozens of teams here in the Idaho Falls area, all of which are vastly different — they offer different commission split structures, support options, lead generation programs, and culture environments. Our team has always focused on culture first, business second. We are a very tight-knit family and we are very selective on who we bring on to the team for that reason.
When Anthony first got his license, he joined a big team here locally because he thought that was his only option. They over-promised and under-delivered in nearly every aspect, promising “We’ve got hundreds of leads we need to hand off to a go-getter like you!” “If you join us, you will be a top-producer in no time.” “Yes we take 50% of your commission, but that’s because we offer so much more in return - education, support and leads.” Never mind the fact that after his first call in to the support team they made him pay for the help he didn’t get. Or the fact that if he wanted a space to work at, he had to pay an additional $350/month 🙃 You do have options and it’s your right to sit down and meet with every team before making a decision. Don’t let any of them talk you into signing on the dotted line before you’ve had a chance to really think it over and figure out who you mesh best with.
03. You NEED a Savings
Every agent is going to have their first close story, but we always tell our agents to plan on having at least 6 months worth of savings to cover your bills and expenses. Especially in this market, if you are working with a Buyer, you may show them houses for months before they find the one they love. If you don’t get your first deal under contract for 3 months, you won’t get your first commission check for 30-45 days after that. Statistics show that 87% of agents quit after their first year, and we really believe this is one of the biggest reasons. Not having any income for 6-12 months is a big surprise to many new agents and it can put a lot of stress on any family.
04. Never, Ever Count the Commission
It’s a mistake we see all new agents make. They get a deal under contract and they immediately start betting on the commission check. Listen, if you didn’t catch it from the last section, we as agents do not get paid unless the deal closes. This can mean you put in hundreds of hours on a deal that never ends up closing and thus, you end up making nothing on it. Whether it falls through due to inspection, appraisal or financing issues, deals can very well fall apart even the day before closing (especially with the strict COVID stipulations), so never, ever count a commission before a closing. That money should mean absolutely nothing until that check has been deposited.
05. If Money is the Driving Factor, You've Already Failed
In fact, if the money that you can make in real estate is the driving factor for the career change, stop reading. I don’t want to waste any more of your time. Client’s can see right through the agents that are only in it for the money. The money-motivated agents are the ones who push clients into buying or selling because of their own selfish reasons and nothing else. If you don’t have your Client’s best interests at heart, this is not the industry for you.
06. You are Always Being Watched
The Idaho Real Estate Commission (IREC) is one of the most strict agencies I’ve ever seen and you will get into some deep 💩 if you even think about doing anything remotely ill. They have an anonymous hotline where Client’s can report you, they monitor literally everything, they have under-cover investigators who pose as fake clients and if you get caught doing anything shady? You may very well lose your license, get fined and see your face plastered on the front of the Real Estatement (the TMZ for real estate agents).
07. Flexible Schedule? Never Heard of Her
Likely the biggest myth of all real estate myths: You get to choose your own schedule. Maybe this is true if you plan to only do 1-2 deals a year, but if you want to be a top-producer, your schedule is whatever your Client’s tell you it is. If they want to see a home at 8pm on a Friday night, you make it happen. In this market, it literally cannot wait and you get your Client’s in to see a home as soon as they say go. I don’t know where people got the idea that they can let their Client’s see a home without you as the agent being present, but first, that’s illegal and second, the only way your Client can get access to a home is with you there to open the e-key lockbox that runs off of Bluetooth.
Maybe we just suck at setting boundaries, or maybe we just really like to accommodate our Client’s, but whatever it is, we are here to tell you there is no such thing as a flexible schedule in real estate. We could write an entire blog post on this topic alone, but to put it in perspective, when you run a business, you cannot “leave work at work.” Your mind is always running, your phone is always buzzing and because real estate is very time-sensitive, you do have to respond to calls, texts and emails very promptly. Houses don’t care if you’re camping or on vacation and neither should your Client’s.
08. Social Media isn’t the Magic Pill
We all know someone new to any industry who posts on social media one time and expects business to come in floods. We hate to be the bearer of bad news, but it doesn’t work like that. Just like all your other marketing efforts, consistency really is key. And by consistency, we mean posting at least 3-4 times a week and being very active on your stories.
People like to do business with people they like, know and trust. Just because you went to grade school together does not mean they are obligated, or even comfortable doing business with you. You need to prove yourself and your competence before you can expect anyone to want to do business with you.
09. It’s a Very Cutthroat Industry
This one was a hard pill for me to swallow. I am very much a people-pleaser and I like to make friends with everyone, so when I got licensed and everyone was at my throat trying to degrade me or my Client’s, I had to really take a step back and reconsider how I do business.
We’ve decided there are two types of agents. The ones who think a real estate deal is you vs. them, and the ones who see a deal as a team effort. We are the latter. It takes a village to close a deal and the agents who seem to think it’s all you vs them make it a very miserable transaction for every party involved.
I promise you, if you can view real estate as a team effort and do everything you can to keep deals from falling apart, you will succeed to great lengths. Don’t be the agent that does business by degrading or intimidating other agents. We don’t need any more of those in this industry.
10. Your Network is Your Net Worth
Being a Real Estate Agent (on a team or not) is not any different than running a business. I don’t care what a team lead tells you, but the lead and team supplies are supplemental, they are meant to fill your lead gaps, not completely supply them. If you are uncomfortable putting yourself out there, talking to new people and trying to build relationships, again, this is not the industry for you.
You have to force yourself to start the conversation, attend different events and really put yourself out there. Your network is 100% your net worth.
11. The Income Can be Deceiving
For those of you who have messaged us on the gram because you want to make a lot of money in real estate, you should be aware that not everything you see on social media is considered “normal.” According to the National Association of Realtors (NAR), the average Real Estate Agent does 4 - 5 transactions a year working full-time, part-time agents doing 1 - 2 transactions a year. With some rough numbers, at an average Idaho Falls home price of $397,000, at 5 transactions less commission splits, taxes, brokerage fees (all totalling about 1/2 of your commission), your income is about $29,000/year working full-time.
If you want to be a top-producer (in the top 1%) of Real Estate Agents, plan on working 80 - 90 hour work weeks and doing at least 5 - 10 deals a month. It’s 100% doable, but don’t get fooled into thinking it’s easy.
12. It is Nothing Like Reality TV
We’re going to end with a bang here. If you watch the Netflix Series Selling Sunset (or any hit TV series for that matter) and expect real estate to be even remotely similar, you are going to be very disappointed. Every. Single. New. Agent. That joins our team says the exact same thing “this is not at all what I thought real estate would be like.” And they’re right.
It’s 10% showing beautiful homes and 90% of the not so fun stuff. Stuff like paperwork (and lots of it), marketing, negotiating, getting bids for inspection repairs, following up on leads, and making sure all the current deals are still on track. If you can’t make it through the 90% of the mundane and tedious tasks, you aren’t going to make it through to the 10% of the fun stuff. You have to find joy in the entire process or you will be another one of those 87% who quit in the first year.
The quick 30-second version…
Real Estate is not easy.
It’s nothing like you see on TV (it’s only 10% accurate to be honest).
Save up, it’ll be a hot minute before your first commission check (plan on no income for 6 months).
Don’t even think about counting commissions before they close.
Put your Client’s first, always.
“Flexible Schedule” and “Real Estate” should never be allowed to be used in the same sentence. It’s a myth.
It’s very dog-eat-dog industry - make friends, not enemies.
If you have a life, you won’t.
If you have a wife, you won’t.
We’re only kinda kidding 🤪
xx Bri and Anthony