Most people enjoy talking about what they do for a living, the ins and outs, how they go about it, the highs, the lows. But few will be told by a listener in another line of work that they want to try it themselves. Not many with established careers seriously contemplate pivoting to become an electrician, firefighter, physician, professor or reporter. Well, I suppose they might consider becoming a reporter, until they find out what it pays.
But a real estate agent? Sure, why not? Take a quick course, pass the test, get licensed fast, join a brokerage and presto, you’re a REALTOR®! Of course there’s a likelihood that not only will you not make a dime in commissions for however long, but may actually lose money, so there’s that. Along with no healthcare benefits for the many 1099 employees, no vacation pay, no sick days or 401k program.
Pam Rosser Thistle is a longtime agent with Berkshire Hathaway Homeservices Fox & Roach, REALTORS® in Philadelphia. She puts a thoughtful perspective on life in the business.
“Getting into real estate, where your paycheck comes only when you close a deal, it’s important to understand cash flow,” she says. “When are your bills and taxes due? And how does your income align with those due dates? You must be comfortable with uncertainty, and be a diligent saver with a DIY rainy day and retirement plan.
“On the upside, REALTORS® are a tight social community. It will open up lifelong relationships, and reveal the behind the scenes of the area where you sell. If walls could talk…they do. To you, because you learn so much about the houses in your selling area. It’s an exciting life!”
RISMedia spoke to agents and brokers to gain perspectives on where the industry is today, what it’s like for newbies, what they wish they knew before starting out themselves and more. They all agreed that as with most lines of work, those willing to truly commit themselves to it will likely succeed. For those looking to skate, or work part-time, the times when there are lots of listings to be found and fast commissions to be had are over, at least for now (and the foreseeable future).
Before turning serious, Jennifer Roberts, a broker with New York City’s Coldwell Banker Warburg, jokes about at least one thing that’s gotten easier over the years.
“I started working in real estate in 1985, and I wish someone had told me how many quarters I needed to have in my pocket,” she says. “Seriously, back then no one had cellphones, so we had to make calls from phone booths constantly. That was exhausting. Luckily, today’s agents don’t have that problem.
“Potential or new agents must realize that this is a demanding job, and it’s not as easy as reality TV shows make it out to be. Deals happen because of grit and hard work. You have to be good at time management because you are juggling so many plates. A new agent should understand that they have to be available when a client calls. In the beginning, work always comes before personal time.
“New agents should also think about an area of the market to focus on, and become an expert in it. For example, cater to first-time buyers, empty nesters, investors, etc. By concentrating on a specific segment or two, they can develop a strategic marketing plan to win over that area, rather than trying to be everything to all people.”
Broker Gerard Splendore, also with Warburg, warns those thinking of becoming REALTORS® that they’d better be people persons…big time.
“If they don’t like people of every possible type, they will find this business to be torture,” he says. “Liking people, having an interest in them, caring about their needs and concerns and helping them when they may not be at their best will serve new agents well in their careers.
“Former teachers have proven to be successful agents. While real estate is an industry driven by sales, determining and fulfilling people’s needs regarding a profoundly personal and emotional topic, one’s home, requires all the ‘people skills,’ such as discretion, sensitivity and focus, that one human can offer another. Buyers and sellers may be facing job loss, divorce, bankruptcy, health issues, death and any number of unspoken concerns, so sensitivity is mandated.”
Splendore also insists that a sense of calm is a must.
“On any given day, agents must contend with requests and demands ranging from the profound to the absurd. Clients, both buyers and sellers, like properties, come with a wide range of issues, needs and foibles. Problems with plumbing, heating and electricity, leaks, infestations, parking, windows, roofs, basements and appliances, to name a few, may feel like crises in the heat of the moment, but must be kept in perspective.
“It’s best to cultivate a cool, objective mien, taking deep breaths and reminding yourself and [your] clients that these are not life-or-death matters. It is far more difficult, but not unrealistic, to contend with an open house attendee tripping and possibly being hurt, a theft of the seller’s property or a catastrophe such as fire, flood or heavy winds.”
Jeffrey Decatur, a broker associate with RE/MAX Capital in Upstate New York, relates how nothing could quite prepare him for the real estate profession until he started living it.
“I wish I knew that a class you took to get licensed just prepared you to pass the test, period,” he says. “It doesn’t teach you a thing about how to work in the profession. I remember the square footage of an acre, and some definitions. An in-person class is way better than an online class. You hear real-life experiences from instructors. In-person classes usually stress things that could get you into trouble, as opposed to just reading a theory about it.
“New agents need to realize there is a huge failure rate, and it isn’t as easy as they make it look on TV. If it seems easy, then you’re doing it wrong, or someone may be picking up the slack for your lack of knowledge or experience. Everyone should know that 70% of agents nationwide didn’t sell a house last year.
“It’s ironic what most people think we do with clients and what we really do. We’re friends, babysitters, psychologists, therapists, hand-holders and protectors, all rolled up in a real estate agent. We see all kinds. People show their true colors at times, and it’s not pretty.”
Another Warburg agent, Rashi Malhotra, remembers when she started and had no idea what the job was really about hours-wise.
“Sometimes even when you’re told exactly what you’re getting into, you don’t fully absorb the advice until you experience it yourself,” she relates. “I remember asking a friend, now a colleague, before I started in real estate, ‘How many hours a day do you think I’ll be working?’ She laughed and said, ‘All the time.’ I thought she was joking.
“But she wasn’t wrong. In real estate, your schedule isn’t confined to business hours. It moves with your clients, the market and the opportunities in front of you. It’s a career that requires patience, persistence and a long-term mindset. You can prepare as much as you want, but some lessons you only truly understand by living them.”
Warburg’s Andrea Wernick agreed, saying that “this career can be a rollercoaster. There are times when you’re busy and making money, and times when you’re not, questioning why you chose this career. It’s a crazy business in that respect. It takes time to develop a client base, and you won’t be making money right away.
“You should network with friends and family. They must know that you’re doing this for a living now. That’s where social media comes in as well. Reach out to them for referrals and spread the word about your services. It’s also important to step out of your circle and try to meet new people. Attend events and join some local groups. Get involved with the community to build a wider base.
“Most importantly, you have to be thick-skinned. There will be times when buyers and sellers hurt your feelings or ghost you. You’ll need to put on a coat of armor to protect your emotional psyche.”
Agent Mike Fabbri, with The Agency in tough-and-tumble New York City, is in full agreement with that last point.
“Real estate is the Wild West,” he says. “Most everyone’s an independent contractor, technically competing with each other, so figuring out who to trust is half the battle. When you’re new, it’s hard to tell who actually has your best interests at heart versus who just wants free labor. That’s why finding a mentor you trust is crucial.
“The most valuable thing early on is experience—getting exposed to deals, listings, transactions and different types of clients. Often, that means working for free or for a small commission, offering your time to seasoned brokers in exchange for knowledge. It might not pay immediately, but the education is invaluable. The sooner you immerse yourself, the sooner you’ll be able to generate your own business confidently.”
