From the outside looking in, real estate agents have it easy. They work whenever they want, make lots of money and hardly do anything. How hard can it be? The truth is real estate is anything but easy. As professionals, we face constant struggles being in this industry. For me, these are some of the hardest.
Pretending things are always great
Ask a real estate agent how the market is and you’re likely to hear “Great!” Ask a real estate agent how business is going and again you’ll likely hear “Great!” Unless the agent you are talking to has already made the decision to leave the business, you will not hear anything negative. Why? “Fake it till you make it.”
This old adage has been around a long time and still holds true today. Success breeds success and no one wants to work with someone who is not, or at least does not appear to be successful. The truth is there is nothing inherently good or bad about the market. The “How’s the market” question is so subjective there is no real answer. The ups and downs in our business however, are very real. Even through the hard times, we must put on a smile and pretend things are great with the hopes next time you ask “How’s the market?” You will actually be asking to hire me as your real estate agent.
Time away from family
Real estate can take a toll on your family. Setting boundaries between work and home can be extremely difficult. The public has literally no idea what real estate agents do for a living. Ask your friends what they think you do every day. The reality is, aside from “Selling houses” the dirty (and HARD) work involved is unknown and goes unnoticed. This was cleverly described by a humorous website dedicated to real estate agents which read:
– Public’s Perception: “Must be nice working anytime you please.”
– REALTOR®: “Yeah, I can work any of the 80 hours per week I want.”
When starting a career in real estate there is the belief you will be able to work whenever you want, and frankly if you don’t want to work that day you really don’t have to. You are the boss! However, if you went to your favorite restaurant on a Friday night and saw a note on the door that read: “Closed today. Didn’t feel like coming in” What do you suppose would happen to that business?
There is no clocking in, and it’s unfortunate but there is no clocking out either. Family dinners, birthday parties and even vacations are shared with frequent phone calls, texts, emails, quick showings and last minute appointments inconveniencing your family for a client who in the end may or may not pan out.
Managing Expectations – Our Own
If you were to follow a real estate agent for 30 days you would be inclined to diagnose them with either ADHD or Depression.
ADHD: suffering patients have to cope with their condition, feeling frustrated by the second. Many people go through life with ADHD without even being diagnosed. Feelings of inadequacy and inability to cope cause depression, resulting in erratic mood swings
Depression: Depression causes extreme mood swings, happy one moment, hysterical the other and immeasurably sad again.
The reason is because we are sooooooooo heavily invested in the outcome of every phone call, email, inspection, appraisal, etc. After all, if it doesn’t go our way, we might not be able to provide for our families for the next 45 to who knows how many days! How can we not get so invested?
Being a real estate agent is full of ups and downs. When something positive happens such as a client’s offer getting accepted or we are hired on a new listing, everything instantly becomes so exciting and nothing can bring us down. On the flip side, getting too invested can lead us to want to “baby” each transaction so much so that when something negative happens to your baby, you are devastated.
Justifying your worth
You sit across from a homeowner who invited you to discuss the possibility of selling their home and to go over what you bring to the table, only to be asked to take less for your services. Don’t get me wrong, everything in real estate is negotiable but it sure doesn’t make it any more pleasant. Real Estate is the only profession I can think of where people will ask you to lower your income. Sorry sweetie, daddy can’t get you that baby doll today. Mr. Joe thinks I’m not worth it. Maybe it goes back to not knowing what real estate professionals do but it just feels like you’re being taken for granted sometimes.
Missing an opportunity to another agent
You know what hurts more than losing that listing or buyer to another agent? When it’s a friend or family member who called someone else to help buy or sell their home. Sometimes it’s better not to mix business and personal but what a blow that can be. At least let me refer you to someone competent.
Budgeting like you’ll never get paid again
2010 was a rough year for me and my family. I grossed $20,000 and had to rely on credit cards just to survive. Unless you are in a commission only job, you cannot understand the financial pressures involved in real estate. Some months you’re a rock star and think you should have your own real estate reality show, and some months you wonder if your career is about to end and be forced to take that 9-5 job you hated so much before real estate.
Unless your real estate income (if any) isn’t needed at home because of your sugar mama or sugar daddy, budgeting as if you will never get paid again is key. For this reason my wife and I live fairly conservatively even when things are good. We like to keep our bills as low as possible and try not to over extend ourselves knowing full well nothing is promised tomorrow.
The glamorous life of a real estate agent isn’t always what it seems but it’s not all bad either. There isn’t anything else I’d rather be doing (at least right now). Being able to help clients with their most significant investment is very rewarding. But in a business where the average real estate agent sells ZERO homes a year, the struggles are real and can hit you hard. Next time you meet a Realtor, give them a hug. After all, we’re people too.
About Daniel Di Matteo
THE REAL ESTATE BUSINESS HAS LESS TO DO ABOUT SELLING PROPERTIES AND EVERYTHING TO DO ABOUT HELPING PEOPLE.
True, true, and true. No one but a good agent will understand the constant dilemma of balance…sigh. We really work hard for our money, no matter how much we make (or don’t)! And the bad ones seriously crimp our style. Good thing my motivation is helping people, otherwise it would be terribly depressing. Thanks!
You’re very welcome Cindy! Keep doing what you do and the rest will fall into place
Please read and remember this when asking for a response in ten minutes from your real estate inquiry! I have to be a website tech, marketing guru, know all county, federal and state rules, social media guru, know all the answers when someone calls about a piece of property and not just my own listings! Please give your agent some slack, we are human. Oh and half of klickitat county doesnt have cell service so unit i get in range, i dont even know you called… Then a buyer leaves me a message in a bad cell service area and blames me for not doing my job because their voice mail was so in and out i can’t even understand it… just my tidbit! Excellent article!
Great article, except for the part where it says the average realtor sells ZERO houses a year. Statistically impossible. Haha
Thanks Cheryl for your mathematical insight. The point I was making is the majority of real estate licensees close 0 homes per year. Glad you enjoyed the read.
Wow. Ive just completed my real estate course and am thinking of getting into the industry but honestly after reading everything above im having second thoughts now!!
You need to understand that it is a full time job and it will probably take three years of intensive advertising for people to realize that you are in the business. Don’t forget hoe much licensing and advertising costs.
What if you are working for a reputable real estate business, taking over from an older real estate agent that is retiring?
Awesome article. Only another agent could grasp the concept of, “Walk a week in my shoes.” Thanks for letting me know, its NOT just ME! LOL
Sure thing Kathy. We have to support each other.
Very good article!
Thanks Christine! Glad you liked it
Shared and appreciated !
Thanks Dede!
GREAT read!
Thanks Brock. Just trying to put words to what we endure in this business
Well said, I appreciate your candor. We made a trip out to SD last summer, those properties on Coronado looked beautiful.
They sure are Bruce! They will also set you back $1M or two. Thanks for reading
So true…just a great article! Every aspect of this hits home….every single point! The one about how we would either be diagnosed with depression or ADHD hits so close to home though. I’m in KY, pretty rural area, so often I don’t bother to read the real estate blogs/articles because I just don’t relate, we are in different worlds. But this one, its like you took the jumbled up feelings/emotions I have and put them into words lol!!
So happy this resonated with you
I really enjoyed reading your article. My realtor co-workers and I always make the statement about how “EASY” real estate is! and yes, we are being very sarcastic! Rewarding at times, and frustrating at others. The one point you made about working with friends really hit home as it has happened and felt so hurtful, I have to think its a business decision but when that friend drops their price $100K to sell their home after they insisted to you what they HAD to list it for it does hurt and it is easy to take personally. Thanks for the article! I want to share it.
Thanks Mary! Feel free to share
Very good.
Yes, managing the disappointments…as well as the appointments.
If only agents learned how to better manage their time and prospect every day like they should be, a lot of what you mentioned would take care of itself. Prospecting solves 100% of your problems. This is coming from a 13 year veteran broker in So. Cal. I get to pick and choose who I work with because of the steady supply of opportunities I create for myself.
Well said.
Thanks Gale
Great comment! Any prospecting tips you’d like to share?
Very good points!
Thanks Jorge!
Great article. Very true. When it’s good, it’s great. When it’s bad, it’s devastating!
To say nothing of the liability, unreimbursed expenses, weekend no shows when we could have been with our kids, two-timing customers, clients with unrealistic expectations that turn a 6 week file into 6 months….etc etc.
Amen Phil!
Could be worse…you could be bagging groceries for $8 an hour…
Everything you said is true! I have worked with clients for two years before they finally buy something! If you added up my hours I worked below minimum wage for that paycheck. Then I had to pay the principle broker, Uncle Sam and social security taxes. Trust me I was working WAY below if you divided my hours into what was left.
Our companies don’t give us cars or pay for our advertising. We pay them desk fees, E&O insurance, web fees, color printing fees etc. We have bought home warranties, refrigerators, paid for repairs, electric bills for inspections. I was just asked today to reduce my commission.
Some days I do wonder why I stay in real estate. Then I get a young first time buyer who listens to my advice and purchases their first home and I realize that helping them through the paperwork, inspections and closing was worth seeing how happy they were to receive their first key to their first home.
Well said Donna
My husband is an equine veterinarian…and all of the above applies to his job also….at least RE agents don’t get calls after midnight! He paid $150,000 for his doctorate and is on call 24/7….clients often ask for “discounts” (there were no free days at vet school) or payment plans or often they don’t pay at all….at least the RE agent is assured of payment for their work. They expect the vet to discount his already pathetic prices to subsidize their horses…maybe they should not own horses if they cannot afford it! And talk about “babying”……this is a live animal and although (hopefully) the vet gets paid no matter the outcome, it is a matter of pride that he helps the animal recover. After much effort it is not unusual if they decide to switch to a competitor without a thought to loyalty.
Needless to say my husband has now accepted a position with the State as a Director of a Lab….better hours, guaranteed salary, pension and medical benefits….I can certainly sympathize with the Agents, it is hard work
Thanks for your insight Suzanne. Although we do rarely get calls past midnight, real estate agents are never assured of payment. We can work for months on end with a buyer or seller and never arrive to a sale for whatever reason. Congratulations on your husband’s new job!
I was wondering about payment I am “assured”…The sad part is when the deal falls apart due to issues beyond your control. Great article
Glad you enjoyed it Joe
SOoo true!