If you’ve been paying attention to the headlines, there is a shortage of homes for sale in many U.S. cities and many buyers competing for which small residential property is available… While it might seem like it might be a great opportunity for new real estate agents to break into the business right now and earn a fat commission check, there is more to it.
GOBankingRates reached out to experts, that is, agents, real estate agents and brokers who are directly involved in the real estate business, and found that while most of them do not think that now is the right time to become a real estate agent, some believe … However, be prepared to work hard to be successful.
“The timing of becoming a real estate agent is more dependent on the individual, not less. about the market, ”said Hari Washington, broker and realtor with 1st United Realty & Mortgage in Riverside, California. “However, overall, this is a difficult time to become agent […] New agent who understands [the] challenges and creates a plan to keep track of lists can still succeed. Each market has its own challenges, so you need to find your the way forward.”
So, if you truly dream of becoming a real estate agent, don’t let what is happening in the market right now discourage you. Instead, keep reading to find out what challenges lie ahead and decide if you have what it takes to be successful in this career.
Too many agents and not enough inventory
“It’s a bit illogical, but the hot real estate market is really bad for real estate agents and especially new agents, ”said James McGrath, co-founder of a New York-based real estate brokerage. Yoreevo… “At the end of May, there were 1.23 million homes. On the market. At the same time, there are about 1.5 million realtors. there are fewer houses for sale than realtors sell them. In other words, there isn’t much to do. Reducing supply more
than offsetting price increases, resulting in lower commissions divided among other agents. “
Kimberly Seidner, Realtor with Privileged Real Estate Brokers in Orlando, Florida, agrees that the lack of homes for sale could be a problem for new agents.
“With so little inventory, new agents will have a harder time time to start your own business, ”Seidner said. “The caveat to this is man which already has a large sphere of influence. ”
So, if you are a new real estate agent trying to break into a business with no connections, there is a good chance that it will be very difficult for you to succeed among the competition right now.
This is the seller’s market
McGrath also said that the current market is especially problematic for new agents because they usually start working with buyers and it is very difficult to be a buyer’s agent now.
“Almost every real estate object receives several offers, so many buyers are ranked second over and over again, which is frustrating buyers, of course, but also their agents, ”McGrath said. “In short, I don’t think now is the right time to get into real estate. agent. You will face intense competition for both clients and real estate. It is very difficult to establish yourself as an agent in this market ”.
Becoming a real estate agent is a challenging time
Possibly Ben Kruger, luxury housing agent in Hilton and Highland A real estate agency in Beverly Hills, California gives the quickest advice to potential real estate agents: “Joining the game as a new agent right now would be like learning how to drive a car down the freeway lane. The market is moving fast and there is no time or place to stop the car and read the manual. The competition for listings is greater than ever. Buyers are looking for experienced agents to deal with issues such as multiple offers and sourcing over-the-counter listings through established brokerage relationships. Salespeople want to know they have an expert to rely on when complications are inevitable. ”
Bottom line: If all of these challenges seem exciting and you’re ready to dive into them and start charting your own path to success, maybe it’s time for you: become a real estate agent…
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Last update: Jun 28, 2021