The first question most people ask about a job is: "What does it pay?" In real estate, the answer most often is: "Whatever you want to earn." But don't be fooled; you won't dictate employment terms. Instead, you'll be worth what you do.

Real estate can be an extremely lucrative field for those who are willing to take the time to learn how to succeed. According to the NAR Members Profile, sales agents who have been in the field for six to ten years average about $48,000 annually. Obviously, many agents make far more and the top producers can earn as much as a million dollars a year.

To earn more money, you must gain more knowledge, acquire new skills, work smarter, be more creative, or manage your time better to achieve greater results. Yes, it takes some effort (what terrific career doesn't?), but the financial rewards can be substantial.

What You Should Know About A Career In Real Estate

You may already be familiar with the major benefits that real estate career can offer you: income not limited by hourly wages, and creative freedom to mention a few. What you probably don't know, however, is exactly what a real estate professional does each day, what makes a successful real estate agent, the advantages and disadvantages of the real estate business, how to determine if you are likely to succeed in real estate, and how to prepare for a real estate career if you decide that is the right choice for you. This report will help you learn all this and more about the exciting world of real estate sales.

Many people mistakenly believe that the real estate industry consists only of purchases and sales of homes and condominiums. Although most industry activity does take place in the residential field, real estate professionals are also involved in selling agricultural, industrial and commercial properties; leasing and managing office buildings, shopping centers, and apartment buildings; appraising and evaluating properties for individuals, banks, and insurance companies; developing land; planning real estate investments and many other related activities, according to Marilyn Evans, author of the VGM Career Planner for Real Estate.

Despite this wide range of possible career paths within the real estate field, most real estate professionals spend the majority of their career in residential sales. In fact, more than 86 percent of all real estate agents work in the residential field, according to Evans. Due to state licensing laws, Indiana real estate agents must be legally classified as either salespeople or brokers, with beginning agents all entering the field as salespeople.

What Types Of People Succeed In Real Estate?

According to Thomas E. Battle, III, education director of the Center for Real Estate Education and Research (CREER), all types of people can succeed in a real estate career. "We have people from every walk of life, factory workers to housewives to retired executives, who go through our pre-licensing courses and start successful real estate careers."

Often, real estate salespeople enter the field from other professions. According to a National Association of Realtors (NAR) Members Profile, nearly 70 percent of sales agents came to real estate from a non-related field. Well-represented fields include retailing, teaching, communications, government, and the armed forces. About one in four agents had previously worked in a management or sales position.
Education can be important to the success of an agent. Most states require a high school diploma or equivalency certificate, but a college degree is not critical. In fact, just three of every ten sales agents have college degrees, according to the NAR Members Profile, and only about half have taken any college courses at all.

What Characteristics Do Successful Agents Have?

Although many personality types have succeeded in real estate sales, a few major characteristics make the chances of success far higher. In her Career Planner, Evans lists people-orientation as the first characteristic that improves the agent's probability of success. "Especially in the case of residential sales, there is a great deal of emotional involvement...the best salespeople are those who recognize this...it really should matter whether the couple who buys the home will live happily there, not just whether they will sign the sales contract."

Evans also says that a detail-orientation will improve the agent's chances for success. "Every real estate transaction involves contracts that must be completed correctly if the sale is going to be legal. The successful real estate agent...must also be careful and conscientious enough to be sure that all the details are correct."

The last and perhaps most important characteristic of many successful agents is enthusiasm, according to Evans. "The agent must believe in the importance of the job and in his or her ability to do it well." Sooner or later lack of enthusiasm will make it hard for the agent to give his or her best to the job and will result in decreased sales and lower earnings.

What Are The Advantages Of A Real Estate Career?

Research has shown that real estate careers offer many advantages not found in most other career paths. Foremost is the ability to earn an income, which is not limited by hourly wages or other factors. Real estate agents are paid for each sale they make. Since transactions occur daily in all areas of real estate, an agent's earnings are limited only by the amount of time and effort he or she is willing to put into his career.

Most sales agents work as independent contractors for the broker who holds their license. Appointments can be scheduled during times convenient to both the agent and his or her clients. This makes it easy to arrange a schedule to accommodate personal business and emergencies.
Since agents are independent contractors they also enjoy high levels of creative freedom. If they have a creative idea that they think will help them increase their sales, they are generally free to pursue it fully, without a boss stepping in to tell them that the idea won't work before it's even been tried.

Another advantage of a real estate career is that it is relatively easy to get started. Prospective agents must pass a pre-licensing course and state-licensing exam before entering the field. Pre-licensing courses can cost in the region of and state exam fees are in the ballpark of $100. This means that a prospective agent can enter the exciting real estate field for far less than the cost of the college courses necessary to enter other professions.

What Are The Disadvantages Of A Real Estate Career?

Despite its many significant advantages, real estate careers are not perfect for everyone. First, not everyone functions well in a flexible work environment where new ideas are continually tried and set routines do not exist. Some people need more structure in their jobs to be happy.

Also, the real estate market is sensitive to the American economy in general. If the economy slumps, the real estate market often follows. Many states however do not necessarily experience the adverse effects of a slow economy as much as those in other states.

You Can Control Your Destiny

Many real estate professionals are independent contractors. They are obligated to conduct business in a legal and ethical manner, but no boss looks over their shoulders. There is no time clock. Their activities and schedules are their responsibility. Most people call that true independence and freedom.

It's well known that the only real job security any of us can have is to depend our own abilities to generate income, rather than depend on others. If you want to hold your destiny in your own hands, a career in real estate provides the opportunity!

Make Your Move

RealtyU® member schools are not in the real estate business per se, and so they do not offer jobs in real estate. What our members do is provide the training that shows real estate professionals how to succeed.

If you're interested in becoming a real estate professional, we suggest visiting the website of a member school in your state.

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