If financial freedom and flexibility appeal to you, choosing a career as a real estate agent might be your golden ticket. This is a career path that holds impressive earning potential, and you get the added benefit of shaping your own schedule.

However, just as with any career, being a real estate agent comes along with its unique set of pros and cons. There are challenges to overcome and skills to master. Additionally, establishing yourself successfully in this profession requires specialized training and qualifications.

If this career path piques your interest, today, we’ll talk about earning potential, pros and cons, and how to become a successful realtor.

Real Estate Agent Earnings in Every State

The average real estate agent salary across the United States is around $95,909 as of 2023. However, your potential earnings can fluctuate dramatically depending on which state you choose to practice.

Take New York, for example. The Big Apple prevails over many other states when it comes to real estate agent salaries. In this bustling metropolitan center, you stand to take home over $102,000 annually! Similarly impressive numbers can be seen in North Carolina and Massachusetts, where annual incomes exceed $103,000 and $110,000, respectively.

But it’s not all glimmering skyscrapers and sprawling estates. Conversely, states like Ohio and Arkansas see significantly lower earnings for real estate agents – usually coming in just over $41,000 annually. And even though Indiana boasts an iconic city like Indianapolis, their local realtors’ estimated yearly income is about $43,000.

Furthermore, your potential to earn more as a real estate agent is also influenced by the city in which you operate. Of course, real estate markets with high earning potential are also some of the most competitive in the US.

Perks of Being a Real Estate Agent

At the core, working as a real estate agent, you’re constantly on the move. Whether you’re exploring various properties or meeting interesting clients – no two days are ever alike. And that alone adds an exciting flavor to real estate as a career.

Moreover, you are your own boss, and you get to decide who to work with and for how long each day. In all fairness, if you want to be successful, you can’t slack off, but flexible working hours is a perk many appreciate. Plus, nowadays, there are tons of clever tech tools that make your job easier.

Speaking of tech tools, real estate agents get to work with emerging tech gadgets, such as virtual reality headsets (for remote property tours) or AI-powered valuation tools. The involvement of technology makes this job even more fun.

Remember, this line of work isn’t one-size-fits-all. It’s best suited to those who enjoy socializing, thrive on variability, and possess excellent negotiation skills.

How to Get Your Real Estate License

In order to become a licensed real estate agent, you must fulfill the mandatory pre-licensing education requirements. This typically includes a mandatory number of education hours and covers fundamental real estate principles and laws.

The specific requirements tend to vary state by state, so check the requirements for your state before applying for the exam. For instance, to get a real estate license in New York, you’re only required to do 75 hours of pre-licensing education.

During these classes, you’ll learn important concepts such as property ownership types, real estate financing, agency relationships in brokerage, disclosures, and contract management. Additionally, it doesn’t hurt to broaden your area of knowledge by learning how to balance traditional and digital marketing mediums and focusing on improving your communication skills.

The Dark Side of Working in Real Estate (aka the Cons)

Just like any other profession, being a real estate agent has its flip side.

For instance, being always on the go and dealing with an unpredictable schedule can be exhausting. It can also mess up your work-life balance, especially if you have extensive work hours (like when you’re just starting).

Plus, managing high-profile clients can add an extra dose of stress. While they tend to bring in the big bucks, high-end customers tend to have specific demands and expectations that require perseverance and skillful negotiation.

Lastly, don’t forget that you are paid on commission, which only activates when a transaction is successful. So, until you make a sale or close a contract, you don’t get paid. This can be frustrating and draining, especially during your first years when you don’t get to work on any high-profile cases.

Yet another challenge is the constant updating required in terms of market trends, technological know-how, and legislative changes. The need for continuous learning may seem overwhelming at times, but by flipping it around, it could also serve as a growth stimulus keeping you upfront in competition.

Wrap Up

As you can see, working as a real estate agent comes with a series of impressive perks, such as high-earning potential, flexible working hours, and a dynamic work environment. Plus, if you have the determination to study and pass your license exam, it’s not even that difficult to get started.

However, before you choose this path, make sure you understand all its challenges as well. After all, there are two sides to every coin.