Real Estate Job Outlook: Is Real Estate a Good Career Path?

There aren’t very many careers where you can have flexible hours, uncapped earning potential, and the chance to be your own boss, but real estate is definitely one of them. The housing market is constantly changing and evolving and needs expert agents to guide people into making one of the biggest decisions of their lives – buying or selling their home.

But what are the downsides of being a real estate agent? Is it hard to do good in real estate? In this blog, we’ll discuss the pros and cons of the field, so you can help decide if this is the right career for you.

What Do Real Estate Agents Do?

Before you can decide if real estate is the path for you, it might be good to know what exactly you’ll be doing in your day-to-day life. Real estate agents are licensed professionals who facilitate the buying and selling of properties. For buyers, they identify properties that match their criteria, schedule viewings, provide expert market advice, assist with offers and inspections, and guide them through the closing process. For sellers, they determine competitive listing prices, market properties effectively, handle offers and negotiations, manage paperwork, and oversee the closing process. Additionally, real estate agents build strong networks, stay updated on market trends, and provide ongoing support to their clients throughout the transaction.

Are Real Estate Agents In Demand?

The real estate job outlook is always closely tied to the real estate market and the economy as a whole. That means two things: it will always wax and wane, and predicting its future is incredibly complicated.

The good news is that, unlike industries that depend on people's disposable income, people will always need real estate agents. Even in a poor economy, folks need places to live and work. The life events that impact their needs often happen independent of the economy – marriage, kids, empty nests, retirement, business growth, and business change.

While the Bureau of Labor Statistics (BLS) projects slower-than-average job growth for real estate agents, with a 2% increase from 2023 to 2033, there are still expected to be about 46,000 job openings annually.

Do Real Estate Agents Have a Good Salary?

Real estate agents can earn a high salary, which varies based on experience, location, and other factors.

The top 10% of real estate agents made more than $119,590 as of 2023. The yearly median pay for real estate agents was $56,620, which comes out to about $27.22 per hour, according to the U.S. Bureau of Labor Statistics. That is factoring all 50 states where pay, commission, and market vary widely. Of course, the downside is that it's possible to make next to nothing.

Real estate brokers' commission is influenced by property type and value, experience, location, working hours, and networking. As agents gain experience, their income often increases. Cities with higher demand may pay more than rural areas. Evenings and weekends are common work hours, and networking is crucial for meeting potential clients.

It also pays to live or work in those highest-paying, high market areas. We’ll break that down further in the next section.

Which States Have the Highest Incomes for Real Estate Brokers?

Bearing in mind that commissions will vary by location, market, property type, sales volume, and experience levels, the top five states for real estate broker salaries in 2024 are New York, California, Nebraska, Washington, and Delaware.

Is It Worth Becoming a Real Estate Agent?

Absolutely! First off, the initial licensing process for becoming a real estate agent is less expensive and time-consuming than a lot of careers with similar earning potential. You don't need a college degree to work in residential real estate. A state test, background check, application, and a series of state-mandated courses are all you need to start a residential real estate career.

If you choose online courses, you can usually get licensed for under $1500. In many states, it's well below that. For example, in Florida, it's as little as $350.

It doesn't take long either. You may become a real estate agent in six months or less in the majority of states.

Many people are looking for instant money flow in real estate due to potential revenues and a short setup period. However, many new agents overlook the hidden costs of starting a real estate practice, such as negative income in the first few years due to marketing, networking expenses, fixed costs like desk fees, professional dues, and continuing education.

And the downside of working on commission is that if you don't sell, you don't earn. It takes new agents anywhere from six months to two years to make their first sale. And although 5% of the selling price sounds amazing, that money isn't entirely (or even mostly) for you, because of commission splits.

Starting a real estate career means you'll spend the first few years finding a niche, learning the industry, building a network, and establishing a reputation. It's an investment in both the best and worst senses, as new agents may need a substantial nest egg for living and startup expenses, or they work part-time.

Being blindsided by this reality has been the death knell of many promising real estate agent careers. That’s why it is crucial to plan for it and consider whether becoming a real estate agent is worth it for you.

How Do You Become a Real Estate Agent?

Since there isn't a national real estate license, you must comply with the particular licensing criteria of your state.

Real estate agent training typically takes a bit of time if you factor in completing a program and obtaining a license. The cost can vary depending on the state. Additional startup expenses include Multiple Listing Service fees, business cards, sale signs, open house signs, and a website.

Make sure you have the time and resources to get your license and pay for your first expenses when determining whether a career in real estate is the appropriate choice for you. Successfully entering a real estate agent career requires self-starting, organization, responsibility, and long-term planning.

Real estate requires persistence, optimism, and a strong sense of people skills. Clients expect good listening, understanding, and effective communication. Long-term success in real estate is achieved by collecting happy clients who will recommend you to others. Avoid discouragement and be a good listener to clients.

We provide online pre-licensing coursework and exam prep resources for many states, preparing you to start your new career. Visit our website to view our full catalog of courses and enroll today to start your journey!

Written and Published by: VanEd