3 answers
jack
Student
1
Question
Asked
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For someone wanting to go into the real estate industry, what can I expect for highs and lows at the beginning of my journey?
When I'm out of highschool I plan on going to real estate school.
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3 answers
George Daglas
Residential Realtor
2
Answers
San Diego, California
Updated
George’s Answer
Tim makes a lot of good points so I won't rehash the same things. I've been a residential real estate agent for close to ten years now and the highs and lows never really end. Here are a couple thoughts/recommendations:
1) You will have highs and lows constantly. The important thing is to manage your own expectations and to not let the highs and lows affect your approach to clients. People can sense anxiety, desperation, uncertainty etc. Nobody wants their trusted advisor to be freaked out.
2) Make sure to spend as much time educating yourself about your market, especially in the first year, as you can. It is just as important as building a client base. Remember that you are here to bring value to a buyer/seller and not just close a deal. Learn about zoning and building codes in your area. Understand the contract and the nuances of it. Learn about financing, title insurance and the escrow process.
3) Remember that as a realtor you are a provider of information and options for solution. You will have to deliver bad news at times. Sometimes that bad news may lead to a deal falling through. When you deliver bad news do your best to have options prepared for next steps to share with your client. For example: "The inspection found that there is an issue with the foundation. It could be a $3000 problem or a $30,000 problem. I spoke with ABC Foundation company and they are available to come out and provide a scope of work and bid on Monday." Take a step back from any emotion you may be feeling, emotion your client may be expressing and look for a solution. It may not work out, but the effort will be appreciated and you will earn the clients respect and loyalty.
1) You will have highs and lows constantly. The important thing is to manage your own expectations and to not let the highs and lows affect your approach to clients. People can sense anxiety, desperation, uncertainty etc. Nobody wants their trusted advisor to be freaked out.
2) Make sure to spend as much time educating yourself about your market, especially in the first year, as you can. It is just as important as building a client base. Remember that you are here to bring value to a buyer/seller and not just close a deal. Learn about zoning and building codes in your area. Understand the contract and the nuances of it. Learn about financing, title insurance and the escrow process.
3) Remember that as a realtor you are a provider of information and options for solution. You will have to deliver bad news at times. Sometimes that bad news may lead to a deal falling through. When you deliver bad news do your best to have options prepared for next steps to share with your client. For example: "The inspection found that there is an issue with the foundation. It could be a $3000 problem or a $30,000 problem. I spoke with ABC Foundation company and they are available to come out and provide a scope of work and bid on Monday." Take a step back from any emotion you may be feeling, emotion your client may be expressing and look for a solution. It may not work out, but the effort will be appreciated and you will earn the clients respect and loyalty.
I appreciate this, thank you for the advice.
jack
Tim Lee
Former-PwC&IBM/multiple start-ups; Principal Product Manager at a major software company
9
Answers
San Ramon, California
Updated
Tim’s Answer
Are you looking to be a real estate agent, just invest in real estate, or something else?
- As a real estate agent, it can be pretty cutthroat. Lots of agents vying to help customers buy or sell properties. Getting leads and driving listings is important, and that a lot of the volume can be determined by the area and its market. You need to build relationships with people in the area, and build trust and confidence in your ability to make the transaction quick, painless, getting the best value for your client. Keep up with the dynamics of a changing market, and the technology that supports real estate.
- In Investing, location matters, and the market can be quite dynamic. You don't have to have tons of money - as there are things like REITs to invest in. There's residential and commercial real estate; if driving the investment via rentals, it can take multiple properties to break even on initial investment. There are costs to maintaining the properties and in both getting tenants, and managing and supporting them, as they use the properties.
All-in-all, it's an exciting area that many see as "gold" as house prices continue to rise. A house in a California suburb could've cost $100K in the 1980's, and the same house costs $2M in 2020. It can be exhilarating meeting people, seeing beautiful properties sold in moments, and you can rake in money when the market and times are good. It can likewise be tough when there's a ton of competition, a downturn occurs, or unexpected things (read: hey, pandemic?) interrupt the normal flow of business.
Go in with a level mindset, but keep the passion alive! Wishing you the best.
- As a real estate agent, it can be pretty cutthroat. Lots of agents vying to help customers buy or sell properties. Getting leads and driving listings is important, and that a lot of the volume can be determined by the area and its market. You need to build relationships with people in the area, and build trust and confidence in your ability to make the transaction quick, painless, getting the best value for your client. Keep up with the dynamics of a changing market, and the technology that supports real estate.
- In Investing, location matters, and the market can be quite dynamic. You don't have to have tons of money - as there are things like REITs to invest in. There's residential and commercial real estate; if driving the investment via rentals, it can take multiple properties to break even on initial investment. There are costs to maintaining the properties and in both getting tenants, and managing and supporting them, as they use the properties.
All-in-all, it's an exciting area that many see as "gold" as house prices continue to rise. A house in a California suburb could've cost $100K in the 1980's, and the same house costs $2M in 2020. It can be exhilarating meeting people, seeing beautiful properties sold in moments, and you can rake in money when the market and times are good. It can likewise be tough when there's a ton of competition, a downturn occurs, or unexpected things (read: hey, pandemic?) interrupt the normal flow of business.
Go in with a level mindset, but keep the passion alive! Wishing you the best.
I appreciate your support, Tim
jack
Allison Porter
Director of Sustainable Real Estate
5
Answers
Savannah, Georgia
Updated
Allison’s Answer
Speaking from a commercial real estate perspective - meaning offices, factories, and stores rather than houses - here are some highs and lows to expect at the beginning of your career:
Highs:
- You will get to learn a lot!
- You will probably be spending most of your time with people (as opposed to sitting in front of a computer by yourself)
- There's opportunity to move up rapidly in terms of responsibility and compensation ($) as you prove that you can work hard and do a good job
Lows:
- The industry can be very competitive, and not everyone you encounter will treat you kindly.
- There will be "slow" times, usually when the overall economy slows down, when there may not be much to do - or much money to be made
- You have to be patient, because success in real estate often requires waiting for the right opportunity
If these highs seem like the kinds of things you enjoy, and the lows seem like things you can handle, then real estate could be a great choice for you! Good luck!
Do an online search for your local city or town's Facilities department. They are often happy to give tours and talk about their experience in real estate!
Highs:
- You will get to learn a lot!
- You will probably be spending most of your time with people (as opposed to sitting in front of a computer by yourself)
- There's opportunity to move up rapidly in terms of responsibility and compensation ($) as you prove that you can work hard and do a good job
Lows:
- The industry can be very competitive, and not everyone you encounter will treat you kindly.
- There will be "slow" times, usually when the overall economy slows down, when there may not be much to do - or much money to be made
- You have to be patient, because success in real estate often requires waiting for the right opportunity
If these highs seem like the kinds of things you enjoy, and the lows seem like things you can handle, then real estate could be a great choice for you! Good luck!
Allison recommends the following next steps:
Thank you very much!
jack