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.
Couldn’t agree more from an Australian agent. We have the perception of being millionaires but on a budget of a shoe string.
It takes 100% dedication and complete focus to succeed, nothing more nothing less.
Same is true for Mortgage Brokers. Trust me.
I’m not a real estate agent. But as a professional (freelance) photographer, most of what is written here applies to us, too. Crazy hours. Being asked for discounts or reduced rates. Losing jobs to a low-baller. Losing jobs of friends who happen to know someone else with a camera.Impossible to budget more than a couple of weeks in advance. Always, always marketing. Still, it’s the best job I’ve ever had as far as personal expression and reward. Not financially, creatively.
Great post. So true. Feast or famine, hero or villain all within the same day. Welcome to Real Estate…
I’ve been at this game for almost 30 years. There have been good times and bad times, looking for a new job everyday (listings). We are a store and our stock is our listings and sales. Pretty hard when every second Realtor works at a job somewhere else and still tries to make people think they are full time professional Realtors. I know some people can balance two jobs, but how can you give your undivided attention to your principal when at 2pm in the afternoon, you cant show your listing or your cant answer your phone because your at another job. I know its your right to work at other jobs, but are you telling your client about the fact that you are not physically available between 9 too 5. Leave the real estate business to the fulltime professionals Please.
Was in for 20 years,( ReMax, high overhead) EVERY Client was a priority, I couldn’t see HOW you could be part time and do your job! I spent BIG money advertising my Clients listings, and repeatedly saw other Agents, take listings and put them in the MLS, good luck, Sellers!!! People, not in the industry, (and unfortunately some in!) just don’t get what the job is. You can do your job, and do it well….and then not get paid. If you take it overpriced, then lose it to another Realtor (Sellers then reduce the price) you’re done, out money and time, and nothing.
made me feel sane reading. Thank you.
This message was sent to me as a link from our Realtor office. I’m so glad I took the time to read your message. Losing my small trucking company, my husband having to work for another owner. I decided to give being a Realtor a shot. It’s been really hard and exciting at the same time. Only being in this industry for 19 months. My husband asking” Why are you not making more money”. He wants to retire from Trucking all together. But I need to make enough for him to do this. So, Thank You Daniel for your words. I will press on !
Having been a Realtor since 1970 I think I have seen and done it all!:):). But what I do know after all these years, I don’t know and haven’t seen or done it all!:):)
It is of prime benefit if you grew up in a poor family which did not use credit. All your relatives ran four businesses and you worked in all of them. A Realtor can not afford to be only a Realtor–there is also the wholesaler, rehabber, lender, Christmas express worker, caregiver, volunteer, networker and part time title worker.
This article is so well put. I have been in the business for 10 months. I LOVE IT! However, I have only sold 1 house and currently not working with any clients right now. I really would love to be able to quit my 9 to 5 job to go into it full time (that’s my goal), but just not able to do it right now. I am not going to give up.
I know this is the right career for me and I am driven to be successful!
Keep it up Linda!
You hit the nail on the head!
Thanks Joyce
Daniel, I’ve just decided to print your article to give to the 3 people that call me, asking me about getting into the business every month….
Cool! Just be sure to tell them it’s not all bad or we wouldn’t do it
Now I’m kind of scared of entering the business.
Don’t be. I wrote about the challenges. If I did the same about the best aspects of being in the business you’d be running in.
Daniel, very well put. Only being in the biz 6 yrs – a single female taking care of my elderly mom who has dementia, working the very necessary 2nd job as a bartender at nite – I thought real estate would be such the fit for the flexible hours gig…OMG. ..what a struggle. Rewarding at times but mostly heartache from the sellers who feel privy to blame you for every day their house isn’t selling or the frequent disrespect buyers have for your knowledge and expertise (citing our Internet partners I.e. Zillo or Trulia as the matket gurus that afford them their intelligencia)…not to mention time and money devoted to get our clients to view what they want.
That being said, pls. know the above words are spoken out of frusration. If our clients were ever provided w an hourly breakdown of the time devoted to a transaction…from inception to close…and put that together w our net commission to determine our net hrly. wage….they would need an acute dose of smelling salts. Just sayin’…
Oh yeah…did I mention I love the job??? Lolol…yes, I truly do…
Thank u for your great article.
You’re welcome Donna. It’s ok to vent sometimes but don’t give up.
Made it through the first year and its been tough. While fortunately my husband works and we don’t depend on my income the additional expenses that come with being a Realtor can hit the family budget. Most people don’t understand Realtor’s pay heavy fee’s to be in the business
I can appreciate that Sheri
So very true! I have been a realtor since 1988 and you can ask my family and few friends what is like to be around me! I have always answered my phone no matter what time it is or what I am doing with family or friends. The general public really has no idea what we do on a daily basis nor do they realize the expenses we pay to stay in the business. Most of my life I have been the sole provider and although our expenses have gone up and so has our work load, commissions have never gone up in all the years I have been a realtor. This is a very tough business to be in but I do love what I do!
All true. Im new 6 months in and VERY nervous!
Be confident and keep learning
“Real Estate is the only profession I can think of where people will ask you to lower your income”.
Try being a contractor, except the customer wants to negotiate after the work is complete.
Nicely put & so true!
Thanks Gina!
Thanks for the insight Daniel! I am a new (almost 1 year) Realtor and there are days I think, “I quit teaching to NOT sell homes? Lol. I love what I do and am learning the long ropes of real estate. But it is a full time, push yourself and smile through the bad kind of career!
Great attitude Carole! Stick with it and don’t stop learning.
Thank you all for your take on this industry. As a seasoned Interior Designer I entered into this career two weeks ago. Doing all the open houses possible and networking etc but I would love your take on making a schedule for myself to be the most efficient at getting started. Any ideas would be appreciated …. Thx!!
OMG – this makes me feel so much better. I came into the business in 2007 and almost died (not literally but financially). Since then it has been a complete roller coaster ride with many wonderful ups and many many horrible downs. This past year I have had a few deals fall apart and one of them hit me pretty hard as I was very close to closing. I normally do not count my eggs until they hatch but this one was a doozie and having it fall a part really messed me up. This business can be so discouraging and unfortunately it is a eat or be eaten business and trust and believe, even a a Realtor that you are friends with will take a listing from you if given the opportunity. I hear a lot of people wanting to come into the business because just like #1 – I fake it till I make it and very few people truly know when I am struggling. I love this business and I am on the upswing but it truly is a tough business. This article really helps me because sometimes I feel like I just may not be cut out for it. Best wishes to you all!!!
Remey, thanks for reading as well as sharing your experience. I’m glad you took something positive out of it and wish you much success.