Is Real Estate a Good Career?

More than 1.8 million people work in the real estate industry, and more than 200,000 are real estate sales agents or brokers, according to data from the US Bureau of Labor Statistics [1]. It can be an excellent career move for those with a suitable skill set and a desire to help others make one of their life's most significant financial decisions. Factors such as the high level of flexibility and independence, strong earning potential, and continued demand, as well as the answer to the question you may be asking yourself, "Is real estate a good career for me?" may seem obvious. 

However, before entering the profession, it’s essential to explore the potential advantages and disadvantages of being a real estate agent and the skills you'll need to succeed. Examining the possibilities from all sides can help you prepare and make the best possible decision in your career.

What skills make for a successful real estate career?

Although some of the skills you’ll need are technical in nature, like how to structure a deal, many of the abilities that will contribute to your success are non-technical human skills, such as time management and negotiating. For example, you'll need to be a people person with strong communication and active listening. Your entire day will often revolve around communicating with clients who want you to help them buy or sell a property. You must also be a good listener who understands social cues and body language.  

Real estate professionals must also possess strong negotiation skills. Many people hire a realtor or agent to help buy or sell a property because they need help negotiating a contract. You must be willing to do so on their behalf so they get the best possible deal. Persistence and tactfulness are also important and can be a critical part of the negotiation process.

Organization is vital to any job, but it's necessary for a successful realtor. If you're good at your job, you'll have multiple clients with different needs. Your schedule will likely include various tasks, including client meetings, open houses, networking events, and more. Keeping it all in order will set you up for success.

Some other essential human skills that make for a successful realtor include:

• Patience

• Problem-solving

• Empathy

• Persistence 

• Time management 

• Networking

• Integrity 

Beyond these skills, you'll need to get to know your local community as much as possible. Clients who move to the area will want to know about aspects of it like schools, public transportation, restaurants, parks, shopping, and entertainment. You'll also need to keep up with your community's real estate market to ensure you get the best deals for your clients and do so legally.

What qualifications do I need to work in real estate?

Specific qualifications for real estate professionals will vary by state, but in general, you'll need a high school diploma and must be at least 18 years old. A college degree in real estate or a related field, like finance or law, can be helpful but is typically optional to become a real estate agent. 

If you have a high school diploma, your next step is earning a state-issued real estate license. You typically do this by taking a certain number of hours of courses offered by your state and passing a licensing exam. You may also need to meet other qualifications, like passing a background check.

Salary information and job outlook in real estate

Earning potential and demand for skilled professionals remain strong. According to Lightcast™, real estate sales agents make an average annual salary of $99,178.80, with brokers making an average of $139,677.26 [2,3]. The US Bureau of Labor Statistics reports that the need for real estate agents will grow at a rate of 3 percent through 2031, which is as fast as average compared to other jobs and industries [4]. 

However, it's essential to remember exactly how real estate agents and other professionals are paid. Rather than earning a set salary each year, many real estate professionals earn a commission, which means they receive a percentage of each sale they complete for their clients. Typically, you need to make sales to earn money, but you have unlimited earning potential.

Consider factors that impact your earnings in real estate

Hard work and motivation can greatly impact your earnings as a real estate professional, but other factors can also play a role. These range from where you work to how much experience you have.

Full-time or part-time hours

While many people enter real estate hoping for a full-time job, others work part-time. They might be in the process of starting a second career, or they may see it as a side hustle. Some work part-time initially, keeping a full-time job with guaranteed income until they are successful in real estate. 

Working part-time is possible, but it may slow down your earnings. For example, clients want someone to whom they can reach out 24/7. If you dedicate only a few hours a day or a few days a week to the job, they may become frustrated and choose someone else. You may also find that you have to give up perks like weekends and vacations.

Location

Where you work as a real estate agent can also affect how much you earn. Obviously, the commission check for a $1 million home is greater than one for a $250,000 house. Features like accessibility, location, weather, job market, and demographics can affect a home's sale price. For example, a home in a popular school district may have more interest from parents willing to pay a higher price to live near the schools they want their children to attend.

Experience

As with any career, the more experience you have, the more likely you can earn more money. According to Glassdoor, a real estate agent with less than one year of experience makes a base pay that averages more than $30,000 less per year than one with 15 or more years of experience [5].

Economy and market fluctuations

Of course, the local housing market and even the national economy can also impact your earnings. When home sales are up, you're more likely to earn more. When they go down, you'll likely earn less. If the nation goes through a recession or other economic downtimes, that will also likely impact your earnings.

The reputation of the brokerage firm for which you work

Although you have ample independence and operate much like someone who is self-employed, real estate agents must work for a brokerage. In many states, you'll even need a broker to sponsor you so you can officially get your license. For this reason, it's essential to choose your brokerage carefully and consider the size of the company, the types of real estate they specialize in, and more. A brokerage with an excellent reputation in a community is likely to have more clients, which means more potential earnings for you.

Considerations and potential drawbacks to careers in real estate

For many people, salary inconsistency is one of the top disadvantages of being a real estate agent. It can be difficult to work and not know when you'll make your next sale so you can earn your commission. Another potential drawback is the time and work involved. Real estate isn't usually a nine-to-five job. You must be willing to work nights, weekends, holidays, and long hours when needed. 

You'll also spend a lot of time looking for new clients and pursuing leads. Other types of sales jobs may see repeat customers, but once a person buys a house or property, they don't usually need a real estate agent again for a while.

Regarding clients, remember that selling a home or property can be an emotional time for a person. You will also work with people from a variety of backgrounds. Working with so many different personalities—many of whom are in the process of taking a major step in their lives—can lead to confrontation and other unpleasant situations. You must have a high tolerance level and remain level-headed while working with everyone.

Is real estate a good career: The benefits of working in real estate

If you can handle the drawbacks of working in real estate, you'll be ready to enjoy the field's many benefits. For many people, it's an ideal career for several reasons.

Flexibility with hours and schedule

Many people like that they don't have to sit in an office every day from nine to five. Ultimately, you are the person who sets your hours. You can work as much or as little as you like without parameters.

Potential for higher income

Because you set your own hours, you also have greater control over how much you make. While factors like the economy and location can impact how much you earn, honing your skills and working hard can also affect how much you bring home each year.  Earning potential for a real estate professional can be substantial when market conditions allow for greater sales volume and higher sale prices.

Accessibility

Becoming a real estate agent doesn't require years of schooling, which allows for a faster start than many careers. You don't have to spend four years or longer earning a college degree. Requirements vary from state to state, but people typically earn their real estate license for one to six months. That means you could start a new career and change your life in less than a year.

Variety

The life of a real estate agent allows you to get out of the office and interact with people. You will meet clients to show properties, attend open houses, and help stage homes for advertising photos and showings. You get to enjoy some fresh air and spend time in your community daily. You also get to meet people moving into your community and help them.

Next steps

For many people, real estate is a rewarding and lucrative career. It allows you to work with people, get away from a typical 9-to-5 desk job, and set your own hours. One way to ensure you succeed in real estate is to learn as much as possible about what you do. 

On Coursera, you'll find courses offered by some of the top institutions in the world. Exploring these learning opportunities could contribute to your success and aid you in developing your skill set. Consider a class like Successful Negotiation: Essential Strategies and Skills offered by the University of Michigan or Yale’s Financial Markets to develop or deepen your skills.