Debating a change in career - Real Estate

Hi Everyone,

I'm sure I should probably post this in the careers section but I'm sure Real Estate agents probably browse the home boards most often and I am really looking for their input...

Lately, I've been really struggling with my career. I work for a large cosmetics company, but feel I am over worked and under paid and I'm certainly not happy and excited to go to work everyday...but of course I have a husband and a son and a home and working provides a very comfortable lifestyle for us. And I do enjoy working and having a career of my own and I used to enjoy my job, but over time, I'm just not feeling it anymore.

I've always loved real estate and always thought I would make a great agent. Friends and family always tell me I'm too personable and talented to sit behind a desk. I have an eye for decorating, remodeling and all things house...but I really am just terrified of the unknown ....as much as I can see myself doing it, i guess I lack the confidence to really pursue it...

Aside from that, I do have a family and I need to keep making money even if I do decide to take a chance, so my question really is, for those that are real estate agents, how did you transition?

How is your family life? Do you feel you still have time to spend with your family and children (if any) and still be successful?

I understand being a real estate agent is incredibiliy time consuming and you have to always be available to your clients, and in addition, market yourself to generate more business...

Any advise would truly be appreciated. Also curious about getting licensed...is it still a 70 hour course (online?) plus exam?

Thank you!!!

Re: Debating a change in career - Real Estate

it's a 75 hour class - I took it online- that's the easy part and it actually has nothing to do with selling real estate-

as far as my career - it's been 4.5 years- I am ranked #62 in my company in North America- that's what I want out of it- I am single and my family lives out of state- plus I absolutely love what I do

if you want to spend both weekend days and every evening with your family it will be very difficult- you need to be available when others are off

I do work a lot during the week and I am in the office daily for follow up, marketing etc

my goal was to be a top producer and I achieved that in 2.5 years

your goal might be less but what I generally find is and these are the stats
50% of agent make no money
the next 30% do 3 or 4 deals per year
then next 10% do 8 to 9
the top 10% (really 7% on LI) do 93% of the business

so there is a huge gap

8 or 9 deals per year would gross on average $63K per year- at Exit realty you would net $44K (based on $350K purchase price- which believe it or not is where I tend to average)

and a 50/50 split company $31K

it also took me about 18 months to start making consistent money- during that time I bartended weekends for gas money

it's not easy- you really have to want it and you really have to have no other choice but to succeed to make it in my opinion

my phones rings 24/7, emails non-stop- but that's how I make money- if the phone stopped I would be out of business

it's not easy- most agents don't stick with it- I don't like to sugar coat things and say how great it is- I think it's great- but I closed 50 transactions last year- and maybe took off 20 days the whole year and christmas is the only day I don't answer calls or emails

like with anything there a trade offs- I see a lot of new agents think they can do what I do and work 2 days per week at home- it's just not reality

Re: Debating a change in career - Real Estate

My situation was similar to yours (the OP). I transitioned to a career in real estate in 2010 after almost 9 years of practicing law at a large Manhattan firm. At the time I decided to change careers, my DS (who's now 5) was about 18 months. My DH was supportive of my career change, and it really helped that he had a good job with benefits (medical, etc.). But when I left my law career, we were accustomed to me making well into the 6 figures (my starting salary as an attorney was over 6 figures and by the time I left I was quite senior). We also owned (and still own) a home, and were accustomed to a certain lifestyle, so there were definite concerns about meeting expenses.

I went into real estate to find a better work/life balance, and to do something I would actually enjoy doing, and I've found it. While I do work a lot, and I am a full time agent, I work locally (I work all over Long Island, but my law job involved commuting to the city and often traveling for cases). I am very happy with my career - I love meeting new people, counseling them through such an important milestone in their lives (be it buying or selling), and seeing different houses. I have control over my schedule to the extent that I can try to schedule appointments in the morning if I need to be somewhere in the afternoon, and I can usually arrange things (not always, but usually), so I can pick up and drop off my son at school, be at his school functions and sporting events, etc. On Wednesday, I negotiated a deal on the soccer field!

I am always 100% available to my clients and respond to their needs quickly, but I like that I don't need to be sitting in an office to do that. Technology is really helpful in this regard! Weekend and evening appointments are to be expected, but I don't work all weekend, every weekend. Sometimes I can set it up so I have all of my appointments on Saturday and be off Sunday (or vice-versa), or sometimes I work a weekend morning and am off in the afternoon. There is some flexibility, and you are basically your own boss as a real estate agent, so how much time you allocate to the business is up to you and your personal goals, and it can vary based on your current clients and their schedules and needs.

And I say all of that as a full-time, active agent. Last year I sold 15 houses and this year (since Jan. 1) I have 9 houses that have closed or are in contract and 3 more that are half-signed or headed to contract. So I am on pace to sell around 25 houses this year. So I have a steady, active business and I find that I have plenty of time for family and friends and hobbies and vacations and all of that. But as far as my personal goals - I am not looking to be the top salesperson in terms of volume. I just try to focus on growing my business each year, and providing top-notch service to my clients while making sure I have the balance in my life that I want. Some days (or weeks) are crazy, and I am working a lot of hours, but there are also times that I get to do things (like take my son to a mid-day play date or meet another local mom for lunch) that I couldn't do if I was still working at my old job.

I won't lie - there are definite financial trade-offs. As Beth said, the first year in the business is pretty slow-going. You are really building a business from the ground up. It's not a job where you show up and there are clients waiting for you. Even now that I am almost 4 years in with consistent sales production, it isn't always easy not having a steady paycheck. Sometimes I have months where I close 5 deals and then there are months when I close none. And sometimes the dry spells come at a tough time when taxes and tuition bills and everything else is due! So you really have to learn to budget your money. Also, there's unpredictability. Sometimes, a sale that you think will close in April will wind up being delayed until May or June because of a slow lender or a title issue or missing C/O. So you have to be prepared for the unexpected.

I think a good real estate agent has to be a good multi-tasker and very adaptable (to different people, different situations). I think it also helps if you can plan to make little to no money, or have the means to supplement your income for the first 6 to 12 months you are in the business.

I see a lot of new agents come into the business, and most of them don't make it because they don't have a good idea of what the business entails. If making a career change is a risky move for you, I would definitely see if you can talk to someone in real estate or even "shadow" them to get an idea of what you can expect. It's very different than other jobs, and there's so much more to it than what is portrayed on HGTV and other popular real estate shows. And you really have to take a long-term view and not expect "instant success."

All that said, I have NEVER regretted changing careers. It's been a great decision for me. I love every aspect of what I do! Before work was such a drain on me, but now I feel like work is a part of my life that enhances my happiness, not something I dread (and I know what a terrible feeling that is).

If you have specific questions, feel free to FM or email me at [email protected]. I'd be happy to talk more with you. Good luck with your decision.