Why Become a NJ Real Estate Agent
Becoming a licensed New Jersey Real Estate Agent has many advantages but with that, comes some disadvantages. Read all the pros and cons to see if you have what it takes to become involved in one of the hottest markets selling residential and commercial real estate in the State of New Jersey.
There are great perks to becoming a real estate agent in today's market. Most people start this career because they aren’t happy with their current career or they want unlimited freedom and becoming a real estate agent in New Jersey brings them.
So, here’s a list of the pros of becoming a real estate agent.
#1. Income Potential
One of the greatest advantages of becoming a real estate agent is the unlimited income potential. As an agent, there is no limit to how much you earn. That’s because real estate agents work for a commission. Typically, the agent walks away with a percentage of 2.5% - 3% of a property’s sale price. Depending on the local housing market prices, the commission can be substantial. For example, in areas where the average home price is $500,000 the agent walks away with $8000-$9000.
That’s for a single sale. Real estate agents decide how many clients they take on, which means they are in charge of how much they can make per year.
#2. Flexible Schedule
Real estate agents can set their own schedules. This flexibility gives agents the opportunity to fit work around their lives easier than other professionals. For agents with children, flexibility is a major benefit of the career. Parents can attend important events and spend more quality time with family.
#3. You are a Business Owner
Real estate agents are entrepreneurs. Although they must work under a broker to legally sell real estate, they run their own business. Agents can create their own schedule, decide what clients they work with, and how much they work.
#4. It’s a People Business
Real estate is a people business and agents who enjoy working with others do their best. You meet people from all walks of life when you work as an agent. From first-time homebuyers to investors, there are many clients who have a need in real estate.
#5. You Help People Achieve Their Dreams
One of the most underrated benefits of becoming a real estate agent is the reward. Agents have the power to help people achieve their dreams. They help sellers get the best price possible for their property and often assist them with their next steps. It’s rewarding to work with home buyers and home sellers. Many of whom are striving to achieve an important life goal. The opportunities that are available to people through homeownership are endless. The amount of gratitude they express when they get the keys to their first property is touching. Of course, closing escrow is a great experience, because everyone leaves happy and full of gratitude.
Like everything, there are also disadvantages to becoming a real estate agent. Don’t let these cons ruin your dream career. Instead, use these as the items you need to prepare for when you get started.
Now, here are the cons of a real estate career.
#1. Success Requires Patience
One of the biggest cons of this job is the amount of patience it requires. It may take a new real estate agent months to find their first client or close their deal. There is a lot of work that agents do before they ever see the profits, such as prospecting, advertising, and conducting open houses. In fact, most real estate agents quit in their first year. But the reason why they quit is that they don’t have a plan.
#2. You Experience Rejection
Another tough part of becoming a real estate agent is dealing with rejection. Agents get rejected a lot. They are prospecting perfect strangers as well as their sphere of influence. Not everyone is going to need a real estate agent.
As long as real estate agents don’t allow rejections to stop them from pursuing new leads, they’ll be successful.
#3. This Job is Competitive
There are thousands of real estate agents in New Jersey. In any given area, buyers and sellers will have several options for a real estate agent. Agents have to work hard to differentiate themselves. One way to do this is to find a niche, a particular area, type of buyer, or type of property. But, the best place to start is to tap into your sphere of influence. Agents should get the word out to their friends and family. Often their first deals will come from those in their sphere.
#4. Escrow Challenges
Escrows can be a challenge. They could take more than 30 days to close regardless of what's in the contract. Agents need to roll with the punches, tackle issues as they arrive and keep their eyes on closing escrow. Agents need to do what they can to keep escrow intact and do what is best for their client.
#5 Hard to Work With People
Finally, the downside of working with people is that they aren't always easy to work with. Agents will interact with agents, clients, or third party entities who are not their cup of tea. People have differing ideas on ways to do business that may not align with those they work with. Agents need to learn how to negotiate, collaborate, and diffuse situations as they uphold their own professional standards.
My Final Thoughts on Becoming a Real Estate Agent...
Becoming a real estate agent has its share of pros and cons. Don't let the cons rain on your dreams though. This career is for those who are dedicated, resilient, and committed to success. There will be hard times for those who start a real estate career but the reward and freedom are worth it. If you are committed to this career and doing the best you can, then nothing will stop you from succeeding and achieving everything you want. Therefore, don't let the cons outweigh the pros.