The Reality of Being in Real Estate

By Jennifer Juliano

A common topic that comes up in conversation is what we do for work. It’s almost a given that as soon as someone hears, “I’m a Realtor®” or any variation thereof, questions or assumptions begin about the market. Often we may hear “Oh, I’ve always wanted to do that, I love houses and people”. Let me not shatter your visions of the many so-called reality real estate shows, but, it’s not exactly like that.

In my opinion, at least, it’s too easy to get a real estate license. Having a license and actively working in the industry are not one and the same. The 40-hour, standardized licensing course can be taken online or in person, after which another standardized licensing test is given. It’s been over 20 years since I took the original test, although many continuing education renewals since, and I’m told by ones who have recently that it can be tricky. Good. There are many details in each purchase and sale, or even on showings, that need attention.

Once licensed, the next step is interviewing different agencies to see which one best fits your personality and overall needs. Some prefer small brokerages, some prefer internationally recognized chains, and each have pros and cons. Like any industry, it’s finding the right fit, and there are many out-of-pocket fees as you go along.

Where the myths and missed expectations come in especially with recently licensed agents is the notion that it’s get-rich quick, that you’ll have sales day two of being affiliated with a company, and you’re handed business. Let’s add that those flexible hours you thought you were craving to get out from behind the 9-5 grind means you’re now going in different directions, long hours, and limiting family time. Training, whether it’s field training or classroom, is so important.

Knowing what to look for, what to anticipate and how to avoid it, even as basic as to write an offer or show and price a house. It’s not as innate as one would think although becomes second nature.

How an agent gets paid has been the focus of recent coverage, and frankly, it isn’t entirely accurate in mainstream media’s inimitable way. It is true that 99% of agents are 100% fee based, meaning that there is no salary. We get paid when a property closes. Some clients take a week to find a house and on average 45 days or so to close, some take months or even years for varying reasons. Maybe they’ve made many offers that haven’t stuck, or they’ve been overly particular and needed to revisit expectations. All of that relates to the agent’s time, expenses, knowledge, and expertise that you hired them for in the beginning. Basically, when you get the keys, is when we get paid. Whether an agent is representing a buyer or a seller, there is time, energy, and expenses that they’re investing in you, which we do because we love our career.

The majority of agents are 1099 independent contractors and not employees. We are responsible for our expenses and taxes on top of whatever compensation arrangement is with our brokerage. Whether paid by a seller or as part of a buyer representation agreement, the fact is that we are not necessarily getting this huge, immediate windfall that is perceived. It can definitely be lucrative for those who make it past the initial five-year mark, and although it’s not a career for everyone, it’s one that helps a basic need of housing, investment opportunities, and one I’ve enjoyed for nearly half my Life at this point.