Real Estate Sales Is Not A Good Career Of Last Resort

With the economy sputtering along, a trend has emerged among new real estate agents. Certain individuals are getting a real estate licenses simple because there are no other jobs available. Let's examine why real estate sales is not a good "backup" career...

1) Real Estate is a business not a career-- In most cases agents are 1099, not W2. This means income is produced only when a transaction closes. There typically is NO salary in real estate.

2) It takes money to make money-- Providing a laundry lists of start-up costs would scary most newbies. In Louisiana expect to pay at least 2,000 bucks to get started, and that is very bare-bones.

3) Your first check may be six months away- From the time a buyer gets an accepted offer you are 30-45 days from closing. Expect to tour said buyers around for a month or more before they commit. With experience you will learn how to speed up this process, but frankly that is not a skill that can be taught in a classroom.

4) There is a chance you will never sell a house-- Each year there are agents who sell ZERO properties. Want to zap the sparkle out of a newbie agent? Let him tour a buyer around for six months only to have said buyer purchase from someone else.

5) No consistent transactions equal mounting debt-- Not only will you struggle to make money, but agents accumulate debt as they go along. Monthly dues, advertising costs, fuel costs (there is no company gas card in real estate) all take their toll. My first real estate commission (90 days in) went to debt I accumulated those first days in the business.

The point of this post is not to scare people from the field. In the long run real estate can be a lucrative field. But only if the newbie agent has the money upfront to do things the right way.

Want to learn more about a career in real estate sales? Call Doug Rogers with Bayou Properties Realty (318) 613-1994 today!