Last year, more people became real estate agents because of the pandemic. The real estate industry has attracted various workers, from single parents seeking more flexibility to burnt-out healthcare workers seeking new careers.
While real estate is lucrative, becoming a successful agent may not be as straightforward as it sounds. Fewer than ten percent of new agents in today's market are expected to make a full-time living from home sales.
How does real estate work?
Understandably, many people are attracted to real estate because it is a commission-based industry with low entry barriers. In the wake of the pandemic, home prices soared to record highs, piquing the interest of aspiring agents across the nation. In the past year, home prices have increased 13.7%, with the average home selling for $408,000.
You have to know what your house is worth and how much you can sell it for. Luckily, there are now even platforms like REP Calgary Homes that have made this process a lot easier in Canada.
A real estate agent is not salaried but receives a 2-3% commission when representing either a buyer or a seller. The high earning potential, the autonomy, and the flexibility of working from home are key selling points for new agents. There's no wonder why "how to become a real estate agent" was the top job-related search on Google in 2021.
Starting in the profession is relatively easy. Self-taught training takes about two to three months and costs only a couple hundred dollars. Before the pandemic, thousands of real estate agents joined the profession because of its ease of entry.
An enticing aspect of Real Estate
When the market is booming, the number of real estate agents tends to increase. More than 250,000 people became agents two years before the market collapse in 2007. According to the Realtor's Association, the number of real estate agents dropped by more than 10% in 2008 due to the market crash.
When professionals see an opportunity, they tend to make an entrance. There are, however, fewer opportunities available at this point.
What is the extent of that attraction?
Often, people underestimate the difficulty of making a living as a real estate agent. Approximately one out of ten agents make a full-time living selling homes. Since most brokerages do not offer base pay to realtors, an agent's monthly income is entirely based on commissions. Agents aren't paid if the brokerage has a slow month.
Real estate agents are rarely paid the full 2-3% commission frequently discussed. Commissions are eaten up by marketing and brokerage fees and income taxes. It depends on how many ways the commission is split, determining the real percent commission a realtor will receive.
Setting your hours is another major advantage of becoming a real estate agent. Those seeking escape from the 9-5 will find this especially appealing. Real estate agents, however, live different lives than freelancers or contractors.
An agent operates under the guidance of a brokerage. Becoming a broker is the only way to work for yourself as an agent. Putting in time as an agent is required to qualify as a broker.
The future of real estate agents
Do not let the points above discourage you from becoming a realtor in 2022. Maintaining awareness of future challenges and opportunities in the industry can help you pursue a successful career as an agent. Following are the perks of being a real estate agent:
- Pricing properties at a budget-friendly level will be the top concern for realtors in 2022. An acute housing shortage makes it difficult for investors to find affordable housing options. Although there are challenge for agents is to find affordable housing opportunities for budget-conscious buyers that are seemingly out of reach. But if you want to get a better experience, you can find real estate brokerages in your area.
- Although real estate companies have been operating in the digital world for some time, not all are equipped to handle digital marketing campaigns. Agents proficient in managing social media, running ads, and measuring digital reach will have the edge over their competitors.
- Smart technology and seamless virtual tours will become increasingly important in the future. The home buying process is constantly geared towards convenience for buyers. VR technology will be highly sought after by real estate agents who can provide immersive home experiences online.
- Additionally, it would help if you kept in mind when the market will take its natural downturn to set yourself apart from other agents. The market will eventually return to the point of stability, even though it may be a shock to that outside of the industry.
What real estate agents must do
Becoming a real estate agent for selling property in today’s market requires readiness to adapt to changing circumstances. The industry is no stranger to fluctuations, after all. That’s why staying updated on the latest trends and developments is crucial in cultivating your brand.
Here are more things you should do to navigate the post-pandemic real estate world successfully:
- Build your network: Networking is essential for success in real estate. Get to know other agents, lenders, title companies, and other professionals in the industry. Attend local events and join online forums.
- Become an expert in your local market: The more you know about your area, the better you'll be able to serve your clients. Learn about the different neighborhoods, schools, and amenities that make up your landscape to propose properties to customers better.
- Market yourself effectively: There are many ways to market yourself as a real estate agent. Use online platforms, social media, and traditional advertising to get the word out.
- Provide excellent customer service: This is essential for building trust and repeat business. Be responsive to your client’s needs and go the extra mile to help them achieve their goals.
- Be patient and persistent: Building a successful real estate career takes time. Market conditions can change quickly. But don’t get discouraged if you don’t see results right away. Keep learning, networking, and marketing yourself, and you’ll eventually find success.
The real Estate market has highs and lows just like any other market. Prices drop when demand is satisfied. Most markets work that way. Real estate agents can still reap the benefits of their hard work in 2022 since home prices are expected to grow modestly this year. If you have any questions about the real estate market, you can count on commercial real estate agencies.