Real estate industry – one of the most successful industries with a promising future for real estate agents!! Are you also among those who are opening their wings to fly in the horizons of the property industry and get rich?? Nodding in yes, well, then hold on for a little and do a little research.
There is no doubt that real estate agents can earn a lot, but it is not a one-night game. You might have heard that you will be able to take a vacation whenever you want or get paid right after making a sale. Sadly, all of these things are partial truths. Closing a deal on an ideal house for sale is a great achievement, and it can take from months to years.
There is a lot of bad information circulating on social media about being a real estate agent, and getting an approach to true information is important for success. Here we have gathered a few myths about real estate agents and their reality, so you stay informed before making the important professional decision of your life.
The flexibility of hours as a freelancer:
It is one of the most common myths we often hear about real estate agents: they can take off any day, set their schedules, and take vacations whenever they want? The schedule looks fascinating for people working from 9 to 5, but for property agents, life is not the same as it looks to other workers.
Reality: Property agents are like small business owners who have flexible schedules often. But nothing comes free of cost, and you have to put yourself to work to succeed. Real estate agents are often on-call due to their client’s schedules; it might mean working on the holiday season, in the evening, or on weekends; sometimes, it means staying on the field for 10 hours a day.
Many people think that property agents are paid high yearly salaries, making them despise their jobs and become property agents. Establishing your business can be an appealing reason to consider while switching to real estate. But not all people know that property agents are not paid yearly salaries.
Reality: Mostly, the income from real estate is made from commissions, and there is no fixed monthly or yearly source of salary. Apart from commissions, real estate agents can make money from investing in property themselves or stocks. Although not all firms offer opportunities to earn passive income, your income will likely be 100 % commission at least in the starting few months.
The commission is always high:
The idea is real estate agents always make at least 6% commission on a listing, and it is a common misconception. If you are seriously looking for real estate as a profession, then it is time to look at the facts straight.
Reality: Commission % is always different, and in many research results, it is stated that the average commission real estate agent get on sale is 5%. The commission of a real estate agent is dependent on the listing price, property type, and time taken on its sale.
Commission belongs to real estate agents only:
The percentage of commission looks huge! However, often it does not belong to the realtors only. The commission percentage is different, and so is the total amount of commission property agents pocket. It depends on how many ways the commission is split, and most probably, you will get half of it only.
Reality: The commission on sale is divided into at least two ways, i.e.
- Between listing agents their broker and it might split even more.
- If buyers’ agents are involved, they will also get a chunk from the commission; even if there is no buying agent, the commission can split in multiple ways with the team.
Payment right after sale:
So that’s last on our list but not least one! People considering a career as a property agent presume that they will get paid right after the sale is made, but this is not the case.
Reality: After the sale is made, agents and brokers have to wait until closing to get paid. It can take a month or two, so if you wonder when you will get your check; it won’t be right after you sign the deal.
That’s a wrap! Starting as a Real estate agent offers great opportunities. Dwell in the horizons of success while staying informed on the latest updates and changes in the real estate industry. The better aware and equipped you are, the more you can become successful.