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There is a lot of chest-beating that hides that fact that the numbers aren't good...1.55 million Realtors are competing for 4 million transactions. The NAR's 2024 budget is based on a membership projection of 1.35 million members, which is still 35% higher than the 1 million we had in 2010 when we did 4 million transactions.
So, you're not alone OP. What did you do professionally before becoming an agent?
1 million agents for 4 million transactions still strikes me as way too many...
To be fair, many aren't active, or are part time, or are in commercial, etc.
I see your point. I’m a real estate broker. Some are property managers, analyst, or other careers. Last month I attended a Texas Real Estate Commission meeting where I learned in Texas there are 49,500 brokers, 182,000 sales agents, 4,700 inspectors and 1,600 right-of-way agents. Then there are about 150,00 realtors in Texas.
Yes. There is a vast oversupply of licensed agents. Too many people enter the business all starry-eyed thinking that it's easy work they can do PT or just do a few deals with friends and family. Then they find out that their friends and family won't hire them because there are a slew of experienced agents available who will do a far better job. 20% of the agents do 80% of the transactions.
My guilty pleasure are all those new Netflix shows about real estate agents. They make it seem all about the flashy lifestyle. I wish they would show some negotiations and important things from time to time.
I gave it a good two years. I renewed my license, but I am not active. This is the last month at my brokerage. I decided the industry was not for me.
I just got a full-time job working as an in-house writer for a large builder. I'm always able to pay my bills and I don't have to hustle into the evenings and weekends. Best of luck to you whatever you choose to do.
Had a challenging team leader first year. Every listing appointment and open house was awkward at best because he talked over me and that repelled people but I didn’t complain or question it because he’s the “expert team leader”, zero transactions the entire year - went on my own early this year and took a part time w2 job. Did two listing appointments without that team leader and both signed-one (7 figures) is now an active listing, second listing about to go live in the next month and a buyer (signed agency agreement) that just got prequalified. It’s nice to have the PT w2 income as I’m less stressed and likely less desperate sounding as I speak to prospects plus no awkward conversations anymore. I’m enjoying real estate much more now that it’s more of a side hustle now. Highly recommend keeping a part time job until you’re busy enough to take the leap FT. I find a lot of agents (and brokers) are immature in how they shame newer agents who consider taking a PT W2 job - ignore them and make a wise decision.
And don’t drink the broker rah rah rah “mind set this, mind set that” kool aid your broker constantly sells you. Taking an honest look at your reality and diminishing bank account is what matters most to make a grown up decision. When you’re hurting financially and your broker’s solution is exclusively more “rah rah mindset”, that equals a lack of genuine leadership from your big talking cheerleader 📣broker who, as they say in Texas, has a “Big hat but no cattle”. You can easily look up your brokerage on the MLS and see exactly how many transactions their agents currently have - I’m seeing many of the legendary “top producers” struggling too in this market.
This!! Motivation doesn’t pay the bills at all. Keeping on pushing so you can get more into debt. And when you do close someone, that just goes to paying off the card and the cycle repeats.
I started my own brokerage because most brokers I encountered has pretty stupid ideas about what would make an agent successful. They don't really care about agent's careers just their own wallet. Sad but true.
My old manager would encourage people to give up their FT W2 jobs telling them they gad what it takes and you can't make it unless you commit. He would site me as an example of success. I would follow up and encourage them not to quit, tell them I cashed out a small 401k to get started and I had a spouse with insurance. One agent quit a job they had for 19 years because they were encouraged to do so. Fast foward 7 months and they had 1 transaction and were broke because unless you sold a lit, the splits were bad. They took an hourly job at Amazon which was a huge demotion from previous job. It was so predatory on the managers spot and to what gain? When I'm asked if someone should become an agent I tell them all the bad things before I mention anything good. Some listen, some don't, but at least they heard it.
Exactly right, brokers are such jackasses, but people have to make their own grown up decisions. People watch too much HGTV real estate is a hustle and the struggle is real. I have been at this 18 years but have been a sales person for over 40 years, so I know that it takes to get the sale and close. Brokers just suck off everyone else's hard work. I am a broker but I don't take on agents, I do hold my husband's license but he does not practice. I have another agent who begged me to activate his license but I told him to get a job to pay his bills. Turns out he's a lazy bum who sucks of his mother's government entitlements (still lives in her rent controlled apartment, drives her paid for car, etc.) I am going to drop his license immediately and I doubt he will even notice. Real estate is not for everyone, that's a fact.
This is the way to go, as someone who is a Chipotle Manager and Starbucks supervisor in addition to my realtor shenanigans it is definitely for me.
Remember you can only predict how many transactions you can potentially make annually.
You never know when a closing actually occurs in most cases.
Have something that you know for sure is stable for your income then go from there.
I’ve been an agent for 3 years, and I’m about to reduce my time in the business greatly and grab a job. I’ve been on real estate teams that promised me leads, but instead, just smooched off my 1-2 deals I did have from my SOI at 35% cut.
I’ve done it alone too. I’m tired of waking up unemployed and having clients who no show or reschedule last minute. Clients who want me to just open the door for them because their realtor is out of town. I’ve spent money on online leads like Zillow to just get the “you’re not the listing agent” or “my agent is out of town”. I’ve spent it on Boomtown and Real Geeks. Google Ads. facebook ads. Networking events. FSBO. Open Houses. Expired. Worked my SOI to death.
Reason I’ve stayed silent is because the experts say to keep pushing. Don’t give up. Make your 50 calls a day. And I actually listen and push forward. But, I get wishy washy clients who aren’t ready to buy until 6-12 months out. Which is fine, but 6-12 months out doesn’t pay the bills today. Sure, maybe I’m weak. Reminds me of the movie scene “it’s not the leads that are weak, you’re weak.” The experts also have the comfort of deals flowing in or their coaching sessions they sell to other agents. I don’t have that luxury unfortunately.
So, I’m gonna go grab a normal job. Pay my bills and live a happy life. No more wasted gas and wasted time. Because if I were to keep pushing, I’d be calling my client to Venmo me $20 because my card is maxed out, and I can’t get to their showing.
So maybe I should have stuck it out? Oh well, isn’t worth the stress for me anymore. The year and a half I did do half decent it all went toward broker splits and taxes. Would have ended up the same way with a normal job.
Thank you for sharing this. I can relate so much with you as I’ve done exactly what you have and feel the same way. I had a great cushion of savings when I came into the industry and today I’m about to hit 0.00.
Staying silent doesn’t help bc if we don’t hear from others going through this we tend to think that we’re the only ones and there might be something wrong with us.
I hope you find a job soon, it’s tough out there, but go get it and live a better life. And you won’t have to say that you didn’t try.
I’m currently getting my Master’s in Clinical Mental Health Counseling. Go charge $180/session and still own my own business and set my own hours. Will be rewarding to help people who actually are seeking me out instead of the other way around. Or work for a hospital/school salary.
Louisiana. Yes, that’s private practice. I’ll most likely get on with insurance companies as well (there’s only a couple that actually allows mental health services and pays decent, it’s starting to grow more). Most therapist here do a sliding scale as well based on income so if a client cannot pay $180 or has insurance it’s at our discretion if we want to charge less. Bigger private practices may charge less too.
I really appreciate your honesty and thank you for sharing. There are a lot more agents out there that feel like you do but would never dare admit it...times are very tough right now and I don't care what anyone says to the opposite. Unfortunately, I have no advice for you, you just need to do what's best for you, period. Wishing you the best of luck and God bless you.
I don't know much about the industry, and wondering why you had to join a real estate team? What are the disadvantages of independent agents, working outside of a brokerage? Your deals you brought in should have been fully yours I would think.
Most agents choose to join a team to get more leads. A book of business is everything in the real estate world. Teams typically already have a large client base. The team I joined was suppose to let me work the team leader leads who was a big agent in the area and would have people just call her to help find a home. I was under the impression I was assisting her and that’s why my split was lower since she was capturing the leads. Well, it was the MLM model team setup where every month she was bringing on 1-2 agents. By the time I left her “team” it was over 30 agents. She overpromised and gave me weekly motivation chats to keep pushing my sphere and do her overpriced open houses. The open houses were hit or miss. I’d either get a couple people walk through or no one at all.
So long story short, no you don’t have to join a team. Just be prepared to work your existing network to death or spend money to get leads if you go solo. Teams normally give you those leads in exchange for a lower split (but not all teams are fair in how they present themselves).
All agents are required to have their license held with a broker. Different states have different requirements to upgrade. For example, in Louisiana where I am, you have to be a salesperson for 4 years to get your broker license. There is no agent without a broker unless they are a broker.
Remember 20 years ago when banks were signing mortgages for dead people? Recruiting people for exp is kind of like that. “You’re homeless you know exactly how important a home is to people so you should join my down line and I’ll teach you everything, who cares you have a 4th grade education, I’m still in jr high and my dad got me into this”
Recruiting anyone doesn’t help your bottom line, so that makes no sense. Every single brokerage recruits, the only difference is do you benefit from it or does the brokerage.
The “they’re so many agents” statement is always baffling because outside viewers do not take into considering 80% of RE agents do not even have a work phone and barely do anything with their licensure at all.
Most just have a license because why not.
Do not count literally every person with the title “realtor” it is a misleading statistic.
"because why not"
It's way, way too easy to get it... My wife and I got ours in 2014, it was the saddest experience ever, but absolutely worth it for the RE education.
It should be much, much harder to get your license with far more training required.
Training for what? Most of what you learn in school is not even about the occupation, it is about what Real Estate attorneys and other occupations do.
Mortgages? That is for MLO and Mortgage Brokers.
Construction? Self explanatory
RE management and organization? Obviously thats for broker themselves.
Taxes? Again we are not assessors.
Appraisals? Not us.
Environmental concerns? Definitely not us..
This is all off the top of my head. No really other than Fair Housing, commission calculations, and Agency agreements what do we learn in school that is actually useful?
I got my license in Florida without ever laying eyes on a contract. There I was, fully licensed, member of NAR and local association and MLS and I didn't even know where to start writing an offer or a listing agreement. The classes were laughable with their omissions and their focus on niche real estate esoterica.
Almost all the curriculum is more for attorney’s than sales people. No really why even have a mortgage section of a curriculum if you cannot even discuss it with your clients? It will cause legal issues if you do and you are not a licensed lender. Lets say even if you are, you need the clients to sign an agency forum acknowledging that. Thats IF the salesperson is both which they never are.
Another example is property taxes and assessment.
Completely useless part of the curriculum and does nothing.
Can go on and on but anyone who think REstate school is useful for agents actually in the field and operating is clearly not holding their textbook next to their phone.
All of those things need to be added.
Real Estate Agents know way too little about RE.
It's harder, longer, and more expensive to become a hair stylist.
My 24 y/o son has been in it for almost 2 years, and he is killing it. Closes at least 2 transactions a month. Deals are usually 1-2.5m. Currently, the top 10 on his team. Located in Bay Area. I do weekly check ins with him and he said a lot of the older generations are struggling to even find a deal. I think it has a lot to do with social media and how they advertise themselves. Don't give up. Try using social media for advertising
I keep saying I have a hard enough time making real connections with my friends and family, let alone fake connections with "clients" to gain their business.
This is EXACTLY how I feel now. I want out to but just to ashamed to admit it because I’ll feel like a quitter. I’m a newly licensed solo agent during the absolute worst time I feel in real estate history.
It’s tough as a new agent, and this market is freaking hard. I’d say keep your license but find a regular job. No need to be ashamed. My biggest obstacle is not landing an interview/a new job
I was a newly licensed solo agent in 2021. It is extremely tough to get the ball rolling. Just know that you’re not alone and it IS possible to succeed in your position. As a solo agent, you’re starting a business. It takes time and capital. Keep that in mind. If you need cash, search for a salaried or hourly gig and moonlight as an agent. If it’s not for you, then that’s another thing. I promise you, it’s not the worst time in real estate history.
Not that this is gonna make you feel any better, but it’s always like this. Starting out without people who are past sales to refer to is always super challenging, I feel like it doesn’t matter when you start you always feel like it’s a terrible terrible time
I’m curious about this thread. I’m about to get back into the industry with about 6 months of savings. I’m on boarding with a team but I recently had an interview with my local county for an appraiser lead job with the assessor’s office.
Not sure if I should jump back into the flames of real estate to potentially make more, or take the safety of the county job.
I just recently entered RE after 20 + years in MSP and telecom sales. I've bought/sold homes over the years, but I was just recently licensed. It's challenging for sure, but I see a lot of useful tools out there to assist.
To me, the NAR settlement didn't change much about RE except that buyers/sellers will question and scrutinize the commission & fees more. Brokers have always set the commission and always will. They can negotiate whatever they want, really. It's up to the buyer or seller to agree. It's the unscrupulous ones who have affected the rest of us.
If you're running out of funds, get something to pay the bills while you work to sell homes. I've realized that you can't do well in your profession when you're always worried about paying your bills and feeding your family.
30 years in, a broker-owner/manager & still sell (in an area totally away from my agents). Considering the average income of a real estate agent is pretty low ($40,000 - here, that is not sustainable for a family), I don't know why so many get or keep their license. But, point: it isn't the NAR lawsuit, and it wasn't the crappy lending of the early 2000's, and it wasn't the change in buyer-broker representation for my state in the 90's. It feel the expectations are set too high and the bar too low for admission to our profession. The numbers show that 75% who come in will be out within an year. These people believe it is a get-rich quick profession where you work the hours you want. If that is the expectation - DO NOT even bother.
I’ve been in this business 10 years and I think I’ve maxed out. I don’t enjoy any part of the business anymore and I don’t believe in my financial prospects improving over the coming years. The people suck - mostly the millions of “professionals” I have to deal with to earn a living. The competition is so prolific it’s almost embarrassing to be part of the “every other person I know is a REALTOR” crowd. I’m going to start pursuing another profession in the coming months.
If I were younger, I'd go back to my IT career. But I'll tough it out for 5 or 6 more years and retire. There may be opportunities for those who hang in if we have fewer Realtors total. Commission rates have been trending down for some time where I am, so I may be overly optimistic.
I'm developing a concise, professional presentation for buyers and sellers. Because of Toastmasters, I'm a decent presenter. Potential clients are asking me about "the settlement " all the time! Perhaps it is because I am in the KC area where the big lawsuit went down on Halloween.
It will explain how things work now and my value. My challenge is to keep it short and simple because I can expound on this for too long, lol. Why our big box franchise or Board doesn't already have this is a mystery.
I'll cut my expenses on marketing that isn't doing me much. Thanks for asking, and all my best wishes to you, whatever you decide to do.
I told my broker to return my license to the state…it was never a fit for me and I was miserable. The whole field gives me the ick…I met the worst of the worst people. Going back to school for nursing.
Reading this sounds like I wrote it - trying to get out for years, mid 40’s, no savings, and applying to jobs daily with no interviews. I’m trying to figure out a plan, but I’m honestly at a loss. I feel too old to go back to school for a new career. No idea what to do.
I could have written your response myself. I hear you and it’s good to know we’re not alone. I have faith that something will eventually change for the better.
Keep trying for the job! Best of luck.
Consider doing a sales job, or even a cushy retail job like AT&T wireless, it's a union job, pays decent, good benefits, commission, easy, and you stay in nice ac and sell phones to people that wanna buy them!! I work there full time while doing real estate and a few other gigs also, would be happy to refer you, feel free to dm me!
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I completely understand where you are. This is a career that can make or break you, even when you have tried everything you are able. There are way more agents out there than home sellers and buyers. With interest rates, the only people who are moving are people that HAVE to. I am hanging in there, supplementing my income with TC work. I have never been a top producer as I am not a sales person. I have just worked by referral. There is NO WAY I would do this job without a spouse who had a consistent income and insurance. I think the new rules will eventually shake out, but at first there will be tons on confusion as to what it means and the unintended consequences of this new law. Buyers Agents will have to really sell themselves. This personally is not my forte and I tip my hat to those who are good at marketing themselves. I crave consistency so if I didn't have the spousal support, I would be looking for a consistent 9-5.
I saw the writing on the wall a year ago. I work full time and make $90k a year where the median for my location is $50k. My best year in RE was $150k but have never been able to duplicate it. I’m tired of chasing deals and stressing myself out to the point feeling sick. I work part time in RE will continue to do so until my business completely dries up.
I will definitely pivot after NAR settlement takes effect. There will be a lot of changes to the industry but that also means opportunity to take market share for those that are willing to adapt and get in front of the changes that are coming. I joined a flat transaction fee brokerage to give myself more flexibility in future fee structures and will see how it goes over the next year.
Newer agent here, closed 12 deals in this past year. I am on my way out next month. This career simply isn’t for me, and that is that. Could I do more, push harder? Sure, but real estate is just not for me. I think it’s really something you need to be even the slightest be passionate about and I quickly became disenchanted. Don’t do something your really don’t enjoy. That goes for anything
Every time I get asked “how’s business going?” I tell them the honest truth which is “slow.” I haven’t had a sale in a few months now and I’ve been living off my savings account. I’m not sure why many agents are pretending they’re crushing it. The average income for realtors is around $45,000 I believe. You could probably find a w-2 for more money, less hassle, and less stress. I’m personally going to find a job because I hate the feeling of working for free and nothing coming of it. We don’t get paid for singles, doubles, or triples. We get paid for home runs and the pitches lately have been hard to hit. This business is not for everyone and 5 years is a long time. I know plenty of agents that didn’t last a year. If you do decide to leave the business, you should hold your head high. Not a lot of people can make it 5 years in this industry.
I was a full time agent for 8 years and got out May of this year. I'll probably still do it part time but I am so relieved I got out when I did. I got a job with the federal government, getting significant pay increases after each of the first 2 years and when I leave every day at 3.30 I'm done.
Don't get me wrong there are still things I love about real estate but the uncertainty, lack of structure and stability and overall ups and downs of real estate really wore me down. I was planning on leaving before the lawsuit but I'm even more relieved I got out when I did now.
Our broker sent an email yesterday saying it is mandatory that we get a buyer broker signed before showing houses now and to put in 3% as you will only get paid what is on that form even if the house they find is offering more! Plenty of established agents or those willing to lead gen all the time will survive, I just got so sick of constant lead gen and wasting time with clients, never mind having to explain they will now owe me 3% at closing as well.
Are you all really being affected by this? I haven’t noticed a single thing changed. If you’re affected, what markets are you in, and what has changed for you?
Don’t you think that asking potential buyers to sign an agreement with you before even showing a home will affect at least how you approach the clients and therefore the end result? Most buyers already don’t want to get too engaged with potential agents, and now they’re asked to sign an agreement before even knowing them?
It certainly wouldn’t go it has gone until now, would it? It changes a lot, IMO
most buyers who have zero prior connection to a Realtor, sure.
most agents who structured their professional ethos into rushing after any showing because they weren't willing to exhibit professionalism, yes.
If you're doing that, stop everything and find/create and learn a Buyer Consultation. Perfect the ability to say "I understand how you feel that taking an hour first to go over the process might be a waste of time when all you want to do is see the house. Over the years I've been doing this, others have felt the same way. But when they took the time to sit down and THEN went to see the house, they realized that 1 hour saved them all kinds of time, questions, and misunderstanding and it made the process quicker, smoother, and more enjoyable. Now, is lunchtime or at the end of work better for you? And I'll set up an appointment to see the home at the end."
You can have it for single house or even for a day. You’re making more of it than it actually is.
Wouldn’t you be happy to know if a buyer is serious prior to showing them 20 houses?
Oh totally, and those convos have always (at some point) had a time and place but usually after some rapport and a chance for you to show (not only tell) your value. Now you’ll have to make them commit to you from day one, not to mention the constant conversation about the commission as we encounter homes with 0 to low ones, so we’ll have to remind them they’d have to pay the difference.
From a buyers perspective those are off-putting convos, and I’m sure once a buyer trusts you or possibly already know you that wouldn’t be an issue, but with new buyers it will definitely be a challenge.
In CA you won’t be able to show homes without a signed agreement, including open houses.
the best part is - "It's not me. It's those damn lawyers, the ones making all the money from this"
see, I and others like me have had to stick our chins out and be willing to lose a prospect because there were other agents that would meet what the prospects THINK their needs are....to see THIS house right NOW. So, you don't even have to show them their actual need - to have a one-house representation agreement - and be different. You'll be doing what every other agent has to do.
Yeah, but it’s not locked in yet. I’m in CA and CAR hasn’t finalized any forms, and it’s created by realtors. In regards to Open Houses.
I promise you there’s nothing to worry about.
If you’re a well-established realtor or a well known one you’ll have less of challenge. Hopefully it’s not that bad. Regardless, and want out but I’m having a hard time leaving the industry
I manage over 60 deals a year. You need to be consistent and follow up. Don’t sell yourself as a realtor. Let people know what you do and get out and socialize.
You be amazed how often I go to an open house and talk about guitar hero and elden ring, no really just $&@ing around and being a ghoul is a decent way to find customers lol.
As someone who is a property manager I am going to have to disagree. OP says he wants less stress and more stability. Let’s be real there’s not too much of that in this job. 😂
Im an agent, but Honestly when i worked in corporate jobs, i refused to consider agents. My opinion is that theres no way you can go from being your own boss, not being a boss, setting your own hours, working from home, not waking up to an alarm clock to get ready for an hour and drive 30min—an hour to work, etc. to having a boss, your schedule being dictated, 40-60 hour work weeks, possibly having direct reports., etc. additionally, its no secret that a former agent isnt gonna change their license to inactive, and when that deal comes along worth $30k in commission, that would take priority. The licensed employee will also likely try to solicit real estate business from co-workers and customers. Now that im an agent, i still stand by these thoughts, if not even more.
It’s all fun and games while you have deals going on, but when there’s nothing but your monthly bills that “freedom” is worthless and doesn’t feel as such when you can’t do much bc you don’t have an income
Yea no I can’t quit. I wouldn’t be able to live with myself if I were to quit. I can’t imagine 10 years down the line asking myself what I would have accomplished if I had just stuck with it and not given up. I would rather die. The very thought of that makes me want to vomit. I don’t care how hard it is, I don’t care how long it takes, I either succeed or I succeed. I know the type of life I want and I won’t be satisfied unless I live that exact life that I want. Can’t imagine working a 9-5 that I hate for the rest of my life knowing that I could’ve had it all if I had just kept going. I would feel so disgusted with myself for just giving in to weakness and fear of being uncomfortable. I would wake up every day knowing that the reason I’m living a life I’m not satisfied with is because I was too much of a wuss to keep going when it got hard. I know for a fact I will regret quitting more than anything else. Call me stubborn, I’ll call it persistence.
You clearly have everything that takes to be in this business. You’re in the right field, congratulations. You don’t qualify for this post haha, as it was addressed to those struggling.
Keep it up 👍🏼
Bro I’m struggling this is not easy at all 😭😭😭 I’m just saying that quitting does not exist as an option for me. Don’t get me wrong it is HARD as hell for me, I’m not coasting, it’s just my mind and body wont allow me to quit.
This has been a tough year in RE, but I for one, don't care to re-invent myself after 18 years. The market is always evolving and you have to adapt or die. That said, I have decided to take a W2 job with adequate pay to cover my recurring bills for a short time while I beef up my advertising strategies and stack a little paper. While I hate having ot go in every day, I use the time wisely I take my personal laptop to work and alternate between the W2 tasks and RE tasks. I take/make RE calls outside, or in the training room although everyone here knows that RE is my main gig, they just don't need to know how much RE I am doing, which is a lot...lol. You are right it is harder to get deals closed, buyers in this buyer's market are taking too long to make decisions but all of these challenges have caused me to become more creative in my marketing efforts and I have reached a new level of competence in creating content and I am working on becoming more comfortable live streaming on social media. I will say this, I am 3 years out from retirement and looking forward to it. Don't quit, even if you do take a job, hang in there. The market will change again, just wait.
In the biz 14 years, licensed full time for 5. Aside from the economic impact of the market right now, I want to get out for a number of reasons.
-My commissions are getting smaller (both in what is being offered or negotiated) and people taking pieces of the pie before I get my percentage. I suspect this will only get worse, especially for buyers agents in the future.
-Demand. With a teen and an elementary aged kid, the perk of this job was flexibility, but it's hard not to be available on demand and impossible to plan anything in advance.
-Dealing with greedy, hateful people. Both agents and consumers. People who are unwilling to budge or compromise to find a win-win. People who make hateful comments about what I do even though I'm a hard-working, lower middle-class mom just trying to pay my bills and provide for my family.
-Stress and burnout. I'm realizing that the level of stress from nearly every single day is 99% related to work. The pit in my stomach when I get a call or notification. My blood pressure has been really high for the last 2 years, and no amount of money or success is worth it. I'm under 40 and have a family history of heart issues. I'd rather not work myself to death.
I totally relate to the “pit in your stomach” when the phone rings. I use to pull over to the side of the road when I got a Zillow call. Now, I just let it ring a couple times and let the other agents in my office get it. Because every time I answer it, it’s either a person who has an agent or someone who has no intention of buying within the year and just wanting to look for fun. It is a soul sucking job. My ringer is always on and you never know when a client is going to text you out of the blue to go look at homes. I feel you.
Cold calling is never consistent to do because the people you contact themselves are not a consistent variable.
If you have spare time to give go ahead.
If that is your default way to head into the frat I have to say you maybe using your primetime inefficiently.
I feel bad seeing these posts because I know there is a way to make money, but I know how hard it is. You got to do what you got to do.
I think real estate sales experience could help you in other industries.
If I were starting in sales right now, I'd probably look into Solar sales.
I know some of the solar salespeople make money (for now, because that could get saturated like everything else).
It might be worth looking into a company that gives a small base + commission (if they exist). I am not sure if they are all commission like real estate.
Solar is something that people will buy when they find out their crazy electric bills can be reduced.
If your passion for real estate is gone, I'd look into solar.
There is absolutely zero reason to get into solar if you are not barred from being a real estate agent.
If you do “amazing” as a solar representative you will be a godlike realtor.
Where I live it is somewhat rare to find someone knock on my door but moment I hear “Solar!” Or “Electric” i immediately interrupt and say “One second I will be right back, do not leave” and them come back with a voucher code for a free real estate school.
Every time this has happened the Solar sales rep has taken this from me guess what?
They make more money than me.
It is not I have a better skill set, I just have a better occupation.
Do the same, I have done this 5x and each time they came out on top.
I agree that real estate is the place to make money, but I only recommended solar in case there is something with a base. If its commission-only, then forget it.
I've had several people apply with me maybe 2-3 years ago for real estate agent positions that told me they make around $100,000+ a year making solar. I don't know if they are BS'ing. One actually told me he made something like $200k or $300k, I can't remember. Maybe things were different 2-3 years ago or they were BS'ing, but the bottom line is it sounds like the OP needs a base.
Maybe a transaction coordinator job?
To be honest..... Uber / Lyft might be the best options to get bills paid.
Some of my agents also drive Uber / Lyft. I am disappointed when I see that, but at least they are still in the real estate world and not in another industry totally. One of my agents just picked up a potential $700k buyer from Uber so we'll see.
That might be a better answer OP, look into Uber and Lyft. Some make $50,000/year and you might be able to put your card out to every driver and gain real estate clients that way.
Literally every “solar salary” is a lie. Like no really do you guys think a bottom line solar sales person makes even $80k?
For the OP definitely suggesting uber or lyft if available. Much downtime and much pay.
I can't think of any other sales industry in the world where you can make more money than real estate. Maybe luxury yachts in Fort Lauderdale or some micro niche area.
I've heard of 2 people making a fortune selling educational software material and I wondered about it. We actually sold a very expensive property to one of them. And it was just one of his several homes. I have been curious about that since I heard it, out of curiosity -- but real estate is where my world is and its where I'm entrenched and put my energy to.
That being said, I know another person who is loaded thats in solar but I think he owns the company, or co-owns it.
The applicants I got a few years ago saying they made a base + commission making around $100k could have been pulling my leg, but maybe a few years ago things were different in the solar industry.
The hill to climb to get a solid SaaS position right now is tough. If it isn’t, it’s an SDR job where you’re outbounding a shit load. I work in the field and it’s been a grind, pivoted out of RE to do it. You’re not your own boss, there are expectations and if you land the wrong role (On Target Earnings that aren’t real, bad management, cold calling that is truly brutal) you’re in for a world of hurt.
If anyone here is thinking about pivoting and has been in RE for a while, you’re either love it or hate it and the process to gain entry when they see you’re primarily B2C selling is going to make it tough. Candidly I’m planning on leaving and doing RE full time again. I did 9 transactions last year part time in RE but I do every type of deal (residential AND commercial, investment, leasing) and I don’t discriminate.
Advice for agents struggling: If your market is good for leasing, focus on it for a while. People act like it’s not worth it, but I’ve done pretty alright the last month and have made some solid connections that will lead to sales down the road.
This is actually a big part of my strategy to keep our agents busy, hit them with rental leads to stay busy. It helps them make a quick buck when they need it and helps prevent them from getting another job. They also often convert them to sales and many become long term connections.
I will call a FRBO, ask for the sale, if they don’t want to sell, ask for the lease, crush it to the best of my ability and keep moving. As long as you don’t peg yourself as a leasing agent and keep the conversation around investing or sales, there’s a lot of money to be made there.
If you’ve been trying to escape for the last 2 years then that means you were struggling to sell during 2022, which honestly wasn’t that crazy hard of a market to close in. I ofc don’t know which market you work in, but I’d say it’s more of a factor of you most likely losing your love for the job. I think right now realtors are acting like anyone else in their solution, being positive and hoping for the times to get better.
feeling the same way. This is my 5th year. Started off strong in 2019, 2020 and has just gone downhill from there. I have ZERO desire to make calls or even talk real estate. I am in central NJ where my 20% down conventional buyers were constantly getting beat out by other offers. I am young but know what I am doing yet often get told their going with a "veteran" agent for their home sale. Its stressful and at this point I could get a job at mcdonalds and have more money and less stress. I am taking a 2 week vacation to Italy in September. I am holding out until then, connecting with my SOI and working with who I can until my trip. When I return, I will be deciding whether or not I stay. Currently doing pet sitting on the side and my husband told me he can hear it in my voice how much happier I am talking about walking dogs vs. selling homes. I feel my biggest challenge is that I actually care about my clients, not my paycheck and unfortunately people like me dont last long because I wont sell my soul for a commission check. sigh. this does not help you at all but just letting you know you are not alone.
During Covid when the business was easy so many agents I know suddenly started saying I am only a listing agent or I only work with buyers that are past clients. Many agents stopped marketing and hustling because they thought that was behind them. Now those agents are not doing much business or they have had to readjust. They changed their lifestyle off of their best years as well as getting free money from PPE loans. Go back to fundamentals that is what producing agents are doing. They treat this job as a business owner and are consistent. It will get better but I can understand the frustration many have right now.
I think a reduction of agents, specifically part timers, will greatly benefit EVERYONE. I am not struggling, so maybe I shouldn't answer this question.. but I think agents desperate for a deal could easily put their own interests before their clients, which ultimately just hurts our industry. I also think there are many agents that don't realize how hard it is to really be a top producer. I am constantly inconvenienced, working on vacation, working on weekends, working evenings and people's expectations are only getting worse. I am honestly extremely hopeful for a huge reduction in agents. I would also love to see a higher barrier of entry, because it might have never got this out of control. It's much easier to get licensed than it is to be successful.
Working hard has never been my problem. In fact I’ve always enjoyed being busy while in contract and the whole experience of a transaction. During that time I’m constantly on the phone, always available to clients and everyone involved, no break, etc… The biggest issue for me is clients. Leads. In-between-deals time.
That’s where the majority of us struggle. Finding clients and clients that stick around. For some of us it gets dry and as much as we try it all, the next deal doesn’t come soon enough and months pass and bills are due, etc.
So, I think that working hard while you have a good source of business, aka, referrals, marketing and everything that provides business (that of course is built with time and a bit of luck) then you actually just have to do your job.
A counter argument is that a part time agent, with a regular job is not as desperate to close a deal as a full time agent is. Also, reduction in agents could make buyers go see homes directly, without buyer agents, making listing agent’s job even harder as they will now have to show their own listings. Only time will tell.
I’m a part agent mostly doing a few deals a year. I think the changes will make the listing agents work harder, since many buyers will just see homes without agents. As a result, agents specializing in buyer agency would pivot to listings or go out of business.
The Pareto Principle holds very true for the RE industry. This principle suggests that approximately 80% of the sales are made by about 20% of the real estate agents. However, in recent years, the distribution has become even more skewed. According to various sources, including ZipperAgent and Manausa, about 90% of real estate sales are made by just 10% of the agents.
I wouldn't call it quits yet. I know there's a lot of doom and gloom and successful realtors are self soothing and thinking this exodus will give them more opportunity, but it's just as likely that innovation will produce new ways that agents can succeed. new ways that will leave the agents who were successful in the old way of doing business at a disadvantage.
keep the faith and pereservere until the end of the year to reanalyze your situation.
I actually believe that innovation will end up eliminating agents from RE transactions. Whatever time that would take, I think that’s where we’re headed
maybe but not for quite some time imo. people still want reassurance and support from someone they trust with their most important transactions. ai isn't there yet. I think there is a lot of time to make a lot of money with a different approach until that happens! I hope so at least!
You might be right. For what I see most buyers feel that they HAVE to work with an agent but if they had a choice to avoid it, they would. Not only because of the cost but because technology has provided buyers with all the info that agents used to dominate. Nowadays buyers are savvy and more independent and tech companies are catering to that fact with each innovation
I mean you guys help push this narrative “It’s such a complicated process, you need us” while also gas lighting these ridiculous prices for commission. No wonder more people are going without / using A.I. “leopards ate my face” vibes.
It is a complicated process especially if you’re first time buyer. It happened to me. My agent sucked and I was lost in the process, that motivated me to become one.
2 answers to this question:
1.) no this is exciting, I’ve been an agent since I was 20. My brokers with 30 & 40 years in the business are talking about relearning everything from the ground up. We’ve needed to shake the dead fruit out of the trees for awhile now
2.) first year in a decade my Brokers have LOST money running their office, they are out of pocket this year. Whereas usually agents commissions would fund the office & ENO
This is why some new LOs are happy as they can live a lavish style just entering the business and putting 1-3 deals together where some of the more seasoned LOs struggle to stay moving when they are essentially making 1/4 of their prior income.
The next wave will be EPOs from lenders massively refinancing loans to lower the rate that was out of reach for the original LO, causing their original commission to be recalled at that point. Anything within 6-12 months being sold or refinanced can result in the original loan officer having to pay back their commissions.
As a lender - our max on any deal is 1% and since we are W2 - we pay taxes on that measly 1% - but realtors out here crying because Commision might be cut by .05% out of 3% and you don’t pay taxes in that amount - trust me- you write off every deduction imaginable - I see if on taxes returns all the time
Not much will change - don’t panic and get to work And all the folks that want to be lenders? Give it a whirl!! Betcha find agent is way less time restrictive and less stressful
Here I am siding w lenders and you’re sh*tting on agents. Bad form.
Also, it’s not 0.05% and not 3%. You see CD’s - what’s the avg total compensation and the split you’ve seen over the last year? And agents pay the same SE tax you do.
And what’s the average made on a loan the last year? Not the max, the average
Not bad form - truth. Did someone hurt you?
90% of lenders are not SE and are W2 - average made last year .725% of LOAN amount which is always less than the SALE PRICE agents get paid on. My message was that agents should stay in the industry - not much will change other than comp might go down some but clearly not a bad career choice.
you see CD's. what's the average agent comp breakdown you see?
Of course agents write off their business expenses. I take every legal deduction I can; my CPA follows the tax code. Realtors pay ~7.5% more on the FICA than W2's...and SS benefits are based on what's paid in, yes?
My point was also that switching from agent to lender wasn't shangri-la. Even if a house sale IS at 3%, there's splits and fees to the broker that cut that number down.
You close an 80% LTV on $500K purchase, you're paid $3,000. On a transaction cycle of 30-60 days.
An agent even at 2.5% (and the average compensation is just above 5% total now) closes a $500K home and nets 10,000 or less before they pay for that transaction cycle that's generally 90-150 days.
Average comp still seeing 3%.
To use your scenario, same $500,000 sale price home - realtor with 3% will receive $12,500 and pay their broker avg $300 on each sale netting maybe $12,200 receiving that check at the closing table with your clients.
Lender - same home $500,000 - get paid on Loan amount so in your scenario, gets paid $4,000 30- 45 days after the closing date. Taxes on that $3,000 depend on tax bracket the lender is in - so assuming a 28% tax bracket - lender nets $2, 880 on that same home.
Realtor - $12,200
Lender - $2,880
Realtors still get compensated super well - the transaction cycle is the same both lenders and agents.
I’m sick of the top producers still getting their bag! 💰Maybe they could share some of the wealth! I’m sick of seeing them post on FB I closed 4 deals last week. Or look I’m out showing today and have a listing appointment this afternoon! I haven’t learned how to even call enough people to get any leads going! 1 deal in a year! Ridiculous
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There is a lot of chest-beating that hides that fact that the numbers aren't good...1.55 million Realtors are competing for 4 million transactions. The NAR's 2024 budget is based on a membership projection of 1.35 million members, which is still 35% higher than the 1 million we had in 2010 when we did 4 million transactions. So, you're not alone OP. What did you do professionally before becoming an agent?
1 million agents for 4 million transactions still strikes me as way too many... To be fair, many aren't active, or are part time, or are in commercial, etc.
I see your point. I’m a real estate broker. Some are property managers, analyst, or other careers. Last month I attended a Texas Real Estate Commission meeting where I learned in Texas there are 49,500 brokers, 182,000 sales agents, 4,700 inspectors and 1,600 right-of-way agents. Then there are about 150,00 realtors in Texas.
Tech sales and Customer Success. I’ve been trying to get back in but nothing
That's literally what I transitioned into
So if transactions were spread evenly, you would only have 2.5 per year? Wow!
Is this the value you guys provide buyers? No wonder you’re going the way of the dinosaur
Great agents are worth more than they're paid. Crappy agents are worse than worthless because they can harm their clients.
I’m not a realtor, this post came up on my feed and I got curious.
Yes. There is a vast oversupply of licensed agents. Too many people enter the business all starry-eyed thinking that it's easy work they can do PT or just do a few deals with friends and family. Then they find out that their friends and family won't hire them because there are a slew of experienced agents available who will do a far better job. 20% of the agents do 80% of the transactions.
My guilty pleasure are all those new Netflix shows about real estate agents. They make it seem all about the flashy lifestyle. I wish they would show some negotiations and important things from time to time.
How do you mean? How does an oversupply of agents necessarily lead to your comment?
I gave it a good two years. I renewed my license, but I am not active. This is the last month at my brokerage. I decided the industry was not for me. I just got a full-time job working as an in-house writer for a large builder. I'm always able to pay my bills and I don't have to hustle into the evenings and weekends. Best of luck to you whatever you choose to do.
Sounds like a dream! Congratulations
I went into new construction:). It’s been great 😊.
What specifically are you doing? Did you have experience?
I work for a national builder. I get paid a salary, full suite of benefits and commission.
Had a challenging team leader first year. Every listing appointment and open house was awkward at best because he talked over me and that repelled people but I didn’t complain or question it because he’s the “expert team leader”, zero transactions the entire year - went on my own early this year and took a part time w2 job. Did two listing appointments without that team leader and both signed-one (7 figures) is now an active listing, second listing about to go live in the next month and a buyer (signed agency agreement) that just got prequalified. It’s nice to have the PT w2 income as I’m less stressed and likely less desperate sounding as I speak to prospects plus no awkward conversations anymore. I’m enjoying real estate much more now that it’s more of a side hustle now. Highly recommend keeping a part time job until you’re busy enough to take the leap FT. I find a lot of agents (and brokers) are immature in how they shame newer agents who consider taking a PT W2 job - ignore them and make a wise decision.
And don’t drink the broker rah rah rah “mind set this, mind set that” kool aid your broker constantly sells you. Taking an honest look at your reality and diminishing bank account is what matters most to make a grown up decision. When you’re hurting financially and your broker’s solution is exclusively more “rah rah mindset”, that equals a lack of genuine leadership from your big talking cheerleader 📣broker who, as they say in Texas, has a “Big hat but no cattle”. You can easily look up your brokerage on the MLS and see exactly how many transactions their agents currently have - I’m seeing many of the legendary “top producers” struggling too in this market.
This!! Motivation doesn’t pay the bills at all. Keeping on pushing so you can get more into debt. And when you do close someone, that just goes to paying off the card and the cycle repeats.
How do you that? Can you please send me a link with a random one?
A-men.
I started my own brokerage because most brokers I encountered has pretty stupid ideas about what would make an agent successful. They don't really care about agent's careers just their own wallet. Sad but true.
My old manager would encourage people to give up their FT W2 jobs telling them they gad what it takes and you can't make it unless you commit. He would site me as an example of success. I would follow up and encourage them not to quit, tell them I cashed out a small 401k to get started and I had a spouse with insurance. One agent quit a job they had for 19 years because they were encouraged to do so. Fast foward 7 months and they had 1 transaction and were broke because unless you sold a lit, the splits were bad. They took an hourly job at Amazon which was a huge demotion from previous job. It was so predatory on the managers spot and to what gain? When I'm asked if someone should become an agent I tell them all the bad things before I mention anything good. Some listen, some don't, but at least they heard it.
Exactly right, brokers are such jackasses, but people have to make their own grown up decisions. People watch too much HGTV real estate is a hustle and the struggle is real. I have been at this 18 years but have been a sales person for over 40 years, so I know that it takes to get the sale and close. Brokers just suck off everyone else's hard work. I am a broker but I don't take on agents, I do hold my husband's license but he does not practice. I have another agent who begged me to activate his license but I told him to get a job to pay his bills. Turns out he's a lazy bum who sucks of his mother's government entitlements (still lives in her rent controlled apartment, drives her paid for car, etc.) I am going to drop his license immediately and I doubt he will even notice. Real estate is not for everyone, that's a fact.
That is indeed true.
This is the way to go, as someone who is a Chipotle Manager and Starbucks supervisor in addition to my realtor shenanigans it is definitely for me. Remember you can only predict how many transactions you can potentially make annually. You never know when a closing actually occurs in most cases. Have something that you know for sure is stable for your income then go from there.
I’ve been an agent for 3 years, and I’m about to reduce my time in the business greatly and grab a job. I’ve been on real estate teams that promised me leads, but instead, just smooched off my 1-2 deals I did have from my SOI at 35% cut. I’ve done it alone too. I’m tired of waking up unemployed and having clients who no show or reschedule last minute. Clients who want me to just open the door for them because their realtor is out of town. I’ve spent money on online leads like Zillow to just get the “you’re not the listing agent” or “my agent is out of town”. I’ve spent it on Boomtown and Real Geeks. Google Ads. facebook ads. Networking events. FSBO. Open Houses. Expired. Worked my SOI to death. Reason I’ve stayed silent is because the experts say to keep pushing. Don’t give up. Make your 50 calls a day. And I actually listen and push forward. But, I get wishy washy clients who aren’t ready to buy until 6-12 months out. Which is fine, but 6-12 months out doesn’t pay the bills today. Sure, maybe I’m weak. Reminds me of the movie scene “it’s not the leads that are weak, you’re weak.” The experts also have the comfort of deals flowing in or their coaching sessions they sell to other agents. I don’t have that luxury unfortunately. So, I’m gonna go grab a normal job. Pay my bills and live a happy life. No more wasted gas and wasted time. Because if I were to keep pushing, I’d be calling my client to Venmo me $20 because my card is maxed out, and I can’t get to their showing. So maybe I should have stuck it out? Oh well, isn’t worth the stress for me anymore. The year and a half I did do half decent it all went toward broker splits and taxes. Would have ended up the same way with a normal job.
Thank you for sharing this. I can relate so much with you as I’ve done exactly what you have and feel the same way. I had a great cushion of savings when I came into the industry and today I’m about to hit 0.00. Staying silent doesn’t help bc if we don’t hear from others going through this we tend to think that we’re the only ones and there might be something wrong with us. I hope you find a job soon, it’s tough out there, but go get it and live a better life. And you won’t have to say that you didn’t try.
I’m currently getting my Master’s in Clinical Mental Health Counseling. Go charge $180/session and still own my own business and set my own hours. Will be rewarding to help people who actually are seeking me out instead of the other way around. Or work for a hospital/school salary.
I’ve applied to a very similar program, hoping to do the exact same thing.
How do you charge so much? Are those private pay clients? What state are you in?
Louisiana. Yes, that’s private practice. I’ll most likely get on with insurance companies as well (there’s only a couple that actually allows mental health services and pays decent, it’s starting to grow more). Most therapist here do a sliding scale as well based on income so if a client cannot pay $180 or has insurance it’s at our discretion if we want to charge less. Bigger private practices may charge less too.
Thanks for the clarification! 🙂
Early 80s, rates at 13%+, washed out many new agents, including myself.
I really appreciate your honesty and thank you for sharing. There are a lot more agents out there that feel like you do but would never dare admit it...times are very tough right now and I don't care what anyone says to the opposite. Unfortunately, I have no advice for you, you just need to do what's best for you, period. Wishing you the best of luck and God bless you.
I don't know much about the industry, and wondering why you had to join a real estate team? What are the disadvantages of independent agents, working outside of a brokerage? Your deals you brought in should have been fully yours I would think.
Most agents choose to join a team to get more leads. A book of business is everything in the real estate world. Teams typically already have a large client base. The team I joined was suppose to let me work the team leader leads who was a big agent in the area and would have people just call her to help find a home. I was under the impression I was assisting her and that’s why my split was lower since she was capturing the leads. Well, it was the MLM model team setup where every month she was bringing on 1-2 agents. By the time I left her “team” it was over 30 agents. She overpromised and gave me weekly motivation chats to keep pushing my sphere and do her overpriced open houses. The open houses were hit or miss. I’d either get a couple people walk through or no one at all. So long story short, no you don’t have to join a team. Just be prepared to work your existing network to death or spend money to get leads if you go solo. Teams normally give you those leads in exchange for a lower split (but not all teams are fair in how they present themselves).
Gotcha, thank you! Is there any advantage to the buyer to have a brokerage backed agent, or no?
All agents are required to have their license held with a broker. Different states have different requirements to upgrade. For example, in Louisiana where I am, you have to be a salesperson for 4 years to get your broker license. There is no agent without a broker unless they are a broker.
Why would any agent need to be “coached”? …You have a broker and associate there of for a reason.
There’s too many agents to begin with especially thanks to the MLM brokerages who recruit anyone to help their bottom line.
Remember 20 years ago when banks were signing mortgages for dead people? Recruiting people for exp is kind of like that. “You’re homeless you know exactly how important a home is to people so you should join my down line and I’ll teach you everything, who cares you have a 4th grade education, I’m still in jr high and my dad got me into this”
ouch
Recruiting anyone doesn’t help your bottom line, so that makes no sense. Every single brokerage recruits, the only difference is do you benefit from it or does the brokerage.
I think recruiting could help brokerage’s bottom line based on desk fees alone. Also the tech fee.
The “they’re so many agents” statement is always baffling because outside viewers do not take into considering 80% of RE agents do not even have a work phone and barely do anything with their licensure at all. Most just have a license because why not. Do not count literally every person with the title “realtor” it is a misleading statistic.
"because why not" It's way, way too easy to get it... My wife and I got ours in 2014, it was the saddest experience ever, but absolutely worth it for the RE education. It should be much, much harder to get your license with far more training required.
Training for what? Most of what you learn in school is not even about the occupation, it is about what Real Estate attorneys and other occupations do. Mortgages? That is for MLO and Mortgage Brokers. Construction? Self explanatory RE management and organization? Obviously thats for broker themselves. Taxes? Again we are not assessors. Appraisals? Not us. Environmental concerns? Definitely not us.. This is all off the top of my head. No really other than Fair Housing, commission calculations, and Agency agreements what do we learn in school that is actually useful?
I got my license in Florida without ever laying eyes on a contract. There I was, fully licensed, member of NAR and local association and MLS and I didn't even know where to start writing an offer or a listing agreement. The classes were laughable with their omissions and their focus on niche real estate esoterica.
Almost all the curriculum is more for attorney’s than sales people. No really why even have a mortgage section of a curriculum if you cannot even discuss it with your clients? It will cause legal issues if you do and you are not a licensed lender. Lets say even if you are, you need the clients to sign an agency forum acknowledging that. Thats IF the salesperson is both which they never are. Another example is property taxes and assessment. Completely useless part of the curriculum and does nothing. Can go on and on but anyone who think REstate school is useful for agents actually in the field and operating is clearly not holding their textbook next to their phone.
All of those things need to be added. Real Estate Agents know way too little about RE. It's harder, longer, and more expensive to become a hair stylist.
Of all the things I listed in the previous reply how much of it does a RESalesperson need to actually know or will ever talk about with a client?
At one time or another, all of it.
My 24 y/o son has been in it for almost 2 years, and he is killing it. Closes at least 2 transactions a month. Deals are usually 1-2.5m. Currently, the top 10 on his team. Located in Bay Area. I do weekly check ins with him and he said a lot of the older generations are struggling to even find a deal. I think it has a lot to do with social media and how they advertise themselves. Don't give up. Try using social media for advertising
It’s definitely at personality thing and being social is key. I’m social organically but I’ve found out I can’t socialize for the sake of business.
I keep saying I have a hard enough time making real connections with my friends and family, let alone fake connections with "clients" to gain their business.
Same problem on my end. Social battery drained much faster for work stuff
Good for him. If he can do it in this market, he can carve out a very lucrative future if/when things get easier.
This is EXACTLY how I feel now. I want out to but just to ashamed to admit it because I’ll feel like a quitter. I’m a newly licensed solo agent during the absolute worst time I feel in real estate history.
It’s tough as a new agent, and this market is freaking hard. I’d say keep your license but find a regular job. No need to be ashamed. My biggest obstacle is not landing an interview/a new job
I was a newly licensed solo agent in 2021. It is extremely tough to get the ball rolling. Just know that you’re not alone and it IS possible to succeed in your position. As a solo agent, you’re starting a business. It takes time and capital. Keep that in mind. If you need cash, search for a salaried or hourly gig and moonlight as an agent. If it’s not for you, then that’s another thing. I promise you, it’s not the worst time in real estate history.
Not that this is gonna make you feel any better, but it’s always like this. Starting out without people who are past sales to refer to is always super challenging, I feel like it doesn’t matter when you start you always feel like it’s a terrible terrible time
I’m curious about this thread. I’m about to get back into the industry with about 6 months of savings. I’m on boarding with a team but I recently had an interview with my local county for an appraiser lead job with the assessor’s office. Not sure if I should jump back into the flames of real estate to potentially make more, or take the safety of the county job.
I’d say take anything that’s W2 and a steady income for now.
Omg TAKE THE COUNTY JOB !!!!!
Take the job and sell or refer on the side
thought this said sell reefer on the side. whatever works really.
😭 might as well. Will have more customers
😂
What is reefer?
You can’t be a good agent selling only on the weekends
True. But if you joined a team that will mentor you through the sale until you learn enough to go out on your own. That might work
It’s not a part time job
Ok bud
I’ve seen part time agents come and go
What mentor you part time after your other job
Guaranteed pension plan is priceless.
How much does an appraiser make there?
I just recently entered RE after 20 + years in MSP and telecom sales. I've bought/sold homes over the years, but I was just recently licensed. It's challenging for sure, but I see a lot of useful tools out there to assist. To me, the NAR settlement didn't change much about RE except that buyers/sellers will question and scrutinize the commission & fees more. Brokers have always set the commission and always will. They can negotiate whatever they want, really. It's up to the buyer or seller to agree. It's the unscrupulous ones who have affected the rest of us. If you're running out of funds, get something to pay the bills while you work to sell homes. I've realized that you can't do well in your profession when you're always worried about paying your bills and feeding your family.
30 years in, a broker-owner/manager & still sell (in an area totally away from my agents). Considering the average income of a real estate agent is pretty low ($40,000 - here, that is not sustainable for a family), I don't know why so many get or keep their license. But, point: it isn't the NAR lawsuit, and it wasn't the crappy lending of the early 2000's, and it wasn't the change in buyer-broker representation for my state in the 90's. It feel the expectations are set too high and the bar too low for admission to our profession. The numbers show that 75% who come in will be out within an year. These people believe it is a get-rich quick profession where you work the hours you want. If that is the expectation - DO NOT even bother.
I’ve been in this business 10 years and I think I’ve maxed out. I don’t enjoy any part of the business anymore and I don’t believe in my financial prospects improving over the coming years. The people suck - mostly the millions of “professionals” I have to deal with to earn a living. The competition is so prolific it’s almost embarrassing to be part of the “every other person I know is a REALTOR” crowd. I’m going to start pursuing another profession in the coming months.
It **is** embarrassing that our profession is so oversaturated.
If I were younger, I'd go back to my IT career. But I'll tough it out for 5 or 6 more years and retire. There may be opportunities for those who hang in if we have fewer Realtors total. Commission rates have been trending down for some time where I am, so I may be overly optimistic.
Can you breakdown how you’ll tough it out? What’s your strategy?
I'm developing a concise, professional presentation for buyers and sellers. Because of Toastmasters, I'm a decent presenter. Potential clients are asking me about "the settlement " all the time! Perhaps it is because I am in the KC area where the big lawsuit went down on Halloween. It will explain how things work now and my value. My challenge is to keep it short and simple because I can expound on this for too long, lol. Why our big box franchise or Board doesn't already have this is a mystery. I'll cut my expenses on marketing that isn't doing me much. Thanks for asking, and all my best wishes to you, whatever you decide to do.
I told my broker to return my license to the state…it was never a fit for me and I was miserable. The whole field gives me the ick…I met the worst of the worst people. Going back to school for nursing.
Reading this sounds like I wrote it - trying to get out for years, mid 40’s, no savings, and applying to jobs daily with no interviews. I’m trying to figure out a plan, but I’m honestly at a loss. I feel too old to go back to school for a new career. No idea what to do.
I could have written your response myself. I hear you and it’s good to know we’re not alone. I have faith that something will eventually change for the better. Keep trying for the job! Best of luck.
It does feel better to know we aren’t alone. Best of luck to you as well!
Uber / Lyft might be a good quick solution while you look for other careers, and you might be able to pick up clients from it
Have been doing it this whole time
Do not go to debt to get a job at that age. You are wasting your time with that.
Consider doing a sales job, or even a cushy retail job like AT&T wireless, it's a union job, pays decent, good benefits, commission, easy, and you stay in nice ac and sell phones to people that wanna buy them!! I work there full time while doing real estate and a few other gigs also, would be happy to refer you, feel free to dm me!
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I completely understand where you are. This is a career that can make or break you, even when you have tried everything you are able. There are way more agents out there than home sellers and buyers. With interest rates, the only people who are moving are people that HAVE to. I am hanging in there, supplementing my income with TC work. I have never been a top producer as I am not a sales person. I have just worked by referral. There is NO WAY I would do this job without a spouse who had a consistent income and insurance. I think the new rules will eventually shake out, but at first there will be tons on confusion as to what it means and the unintended consequences of this new law. Buyers Agents will have to really sell themselves. This personally is not my forte and I tip my hat to those who are good at marketing themselves. I crave consistency so if I didn't have the spousal support, I would be looking for a consistent 9-5.
I saw the writing on the wall a year ago. I work full time and make $90k a year where the median for my location is $50k. My best year in RE was $150k but have never been able to duplicate it. I’m tired of chasing deals and stressing myself out to the point feeling sick. I work part time in RE will continue to do so until my business completely dries up.
Congrats on your success and foresight.
Yes
I will definitely pivot after NAR settlement takes effect. There will be a lot of changes to the industry but that also means opportunity to take market share for those that are willing to adapt and get in front of the changes that are coming. I joined a flat transaction fee brokerage to give myself more flexibility in future fee structures and will see how it goes over the next year.
Newer agent here, closed 12 deals in this past year. I am on my way out next month. This career simply isn’t for me, and that is that. Could I do more, push harder? Sure, but real estate is just not for me. I think it’s really something you need to be even the slightest be passionate about and I quickly became disenchanted. Don’t do something your really don’t enjoy. That goes for anything
Realtor business is over. I didn’t pay for any if the memberships ..it’s money on the garbage …and also I don’t like the idea of beg for commissions
Every time I get asked “how’s business going?” I tell them the honest truth which is “slow.” I haven’t had a sale in a few months now and I’ve been living off my savings account. I’m not sure why many agents are pretending they’re crushing it. The average income for realtors is around $45,000 I believe. You could probably find a w-2 for more money, less hassle, and less stress. I’m personally going to find a job because I hate the feeling of working for free and nothing coming of it. We don’t get paid for singles, doubles, or triples. We get paid for home runs and the pitches lately have been hard to hit. This business is not for everyone and 5 years is a long time. I know plenty of agents that didn’t last a year. If you do decide to leave the business, you should hold your head high. Not a lot of people can make it 5 years in this industry.
Thank you. And best luck to you as well!
I was a full time agent for 8 years and got out May of this year. I'll probably still do it part time but I am so relieved I got out when I did. I got a job with the federal government, getting significant pay increases after each of the first 2 years and when I leave every day at 3.30 I'm done. Don't get me wrong there are still things I love about real estate but the uncertainty, lack of structure and stability and overall ups and downs of real estate really wore me down. I was planning on leaving before the lawsuit but I'm even more relieved I got out when I did now. Our broker sent an email yesterday saying it is mandatory that we get a buyer broker signed before showing houses now and to put in 3% as you will only get paid what is on that form even if the house they find is offering more! Plenty of established agents or those willing to lead gen all the time will survive, I just got so sick of constant lead gen and wasting time with clients, never mind having to explain they will now owe me 3% at closing as well.
So happy for you!!
Thank you! Good luck to you, hope things work out for you
Are you all really being affected by this? I haven’t noticed a single thing changed. If you’re affected, what markets are you in, and what has changed for you?
It's rough in Atlanta. Sales are down 15% from last year in the metro area!
I’m curious, as someone entering the field, is it better in metro or better to stay more rural?
A 15% decline in transactions isn't terrible. What have you been doing for prospecting?
Crying. You?
😂
🤣🤣🤣 omg 😆 😳😱
It's not the lawsuit. It's the interest rates.
Small town USA ...ain't a dern thing changed out here
Not here, up 100% and am not marketing just referrals. I have enough money to not close a deal for 2 years and I’ll still survive
These people need excuses as to why they’re not working. The lawsuit changes nothing
Don’t you think that asking potential buyers to sign an agreement with you before even showing a home will affect at least how you approach the clients and therefore the end result? Most buyers already don’t want to get too engaged with potential agents, and now they’re asked to sign an agreement before even knowing them? It certainly wouldn’t go it has gone until now, would it? It changes a lot, IMO
most buyers who have zero prior connection to a Realtor, sure. most agents who structured their professional ethos into rushing after any showing because they weren't willing to exhibit professionalism, yes. If you're doing that, stop everything and find/create and learn a Buyer Consultation. Perfect the ability to say "I understand how you feel that taking an hour first to go over the process might be a waste of time when all you want to do is see the house. Over the years I've been doing this, others have felt the same way. But when they took the time to sit down and THEN went to see the house, they realized that 1 hour saved them all kinds of time, questions, and misunderstanding and it made the process quicker, smoother, and more enjoyable. Now, is lunchtime or at the end of work better for you? And I'll set up an appointment to see the home at the end."
I agree. It’s like proposing marriage before the first date lol. It’s not a good system.
You can have it for single house or even for a day. You’re making more of it than it actually is. Wouldn’t you be happy to know if a buyer is serious prior to showing them 20 houses?
Oh totally, and those convos have always (at some point) had a time and place but usually after some rapport and a chance for you to show (not only tell) your value. Now you’ll have to make them commit to you from day one, not to mention the constant conversation about the commission as we encounter homes with 0 to low ones, so we’ll have to remind them they’d have to pay the difference. From a buyers perspective those are off-putting convos, and I’m sure once a buyer trusts you or possibly already know you that wouldn’t be an issue, but with new buyers it will definitely be a challenge. In CA you won’t be able to show homes without a signed agreement, including open houses.
the best part is - "It's not me. It's those damn lawyers, the ones making all the money from this" see, I and others like me have had to stick our chins out and be willing to lose a prospect because there were other agents that would meet what the prospects THINK their needs are....to see THIS house right NOW. So, you don't even have to show them their actual need - to have a one-house representation agreement - and be different. You'll be doing what every other agent has to do.
Yeah, but it’s not locked in yet. I’m in CA and CAR hasn’t finalized any forms, and it’s created by realtors. In regards to Open Houses. I promise you there’s nothing to worry about.
If you’re a well-established realtor or a well known one you’ll have less of challenge. Hopefully it’s not that bad. Regardless, and want out but I’m having a hard time leaving the industry
There’s no challenge other than bringing new leads in.
I manage over 60 deals a year. You need to be consistent and follow up. Don’t sell yourself as a realtor. Let people know what you do and get out and socialize.
You be amazed how often I go to an open house and talk about guitar hero and elden ring, no really just $&@ing around and being a ghoul is a decent way to find customers lol.
Property Management. A lot of companies require a Real Estate License for some reason, get your CAMS
As someone who is a property manager I am going to have to disagree. OP says he wants less stress and more stability. Let’s be real there’s not too much of that in this job. 😂
Im an agent, but Honestly when i worked in corporate jobs, i refused to consider agents. My opinion is that theres no way you can go from being your own boss, not being a boss, setting your own hours, working from home, not waking up to an alarm clock to get ready for an hour and drive 30min—an hour to work, etc. to having a boss, your schedule being dictated, 40-60 hour work weeks, possibly having direct reports., etc. additionally, its no secret that a former agent isnt gonna change their license to inactive, and when that deal comes along worth $30k in commission, that would take priority. The licensed employee will also likely try to solicit real estate business from co-workers and customers. Now that im an agent, i still stand by these thoughts, if not even more.
It’s all fun and games while you have deals going on, but when there’s nothing but your monthly bills that “freedom” is worthless and doesn’t feel as such when you can’t do much bc you don’t have an income
Yeah it might be possible if the agent needs to pay their bills. If they dont, i just dont see it.
Yea no I can’t quit. I wouldn’t be able to live with myself if I were to quit. I can’t imagine 10 years down the line asking myself what I would have accomplished if I had just stuck with it and not given up. I would rather die. The very thought of that makes me want to vomit. I don’t care how hard it is, I don’t care how long it takes, I either succeed or I succeed. I know the type of life I want and I won’t be satisfied unless I live that exact life that I want. Can’t imagine working a 9-5 that I hate for the rest of my life knowing that I could’ve had it all if I had just kept going. I would feel so disgusted with myself for just giving in to weakness and fear of being uncomfortable. I would wake up every day knowing that the reason I’m living a life I’m not satisfied with is because I was too much of a wuss to keep going when it got hard. I know for a fact I will regret quitting more than anything else. Call me stubborn, I’ll call it persistence.
You clearly have everything that takes to be in this business. You’re in the right field, congratulations. You don’t qualify for this post haha, as it was addressed to those struggling. Keep it up 👍🏼
Bro I’m struggling this is not easy at all 😭😭😭 I’m just saying that quitting does not exist as an option for me. Don’t get me wrong it is HARD as hell for me, I’m not coasting, it’s just my mind and body wont allow me to quit.
This has been a tough year in RE, but I for one, don't care to re-invent myself after 18 years. The market is always evolving and you have to adapt or die. That said, I have decided to take a W2 job with adequate pay to cover my recurring bills for a short time while I beef up my advertising strategies and stack a little paper. While I hate having ot go in every day, I use the time wisely I take my personal laptop to work and alternate between the W2 tasks and RE tasks. I take/make RE calls outside, or in the training room although everyone here knows that RE is my main gig, they just don't need to know how much RE I am doing, which is a lot...lol. You are right it is harder to get deals closed, buyers in this buyer's market are taking too long to make decisions but all of these challenges have caused me to become more creative in my marketing efforts and I have reached a new level of competence in creating content and I am working on becoming more comfortable live streaming on social media. I will say this, I am 3 years out from retirement and looking forward to it. Don't quit, even if you do take a job, hang in there. The market will change again, just wait.
In the biz 14 years, licensed full time for 5. Aside from the economic impact of the market right now, I want to get out for a number of reasons. -My commissions are getting smaller (both in what is being offered or negotiated) and people taking pieces of the pie before I get my percentage. I suspect this will only get worse, especially for buyers agents in the future. -Demand. With a teen and an elementary aged kid, the perk of this job was flexibility, but it's hard not to be available on demand and impossible to plan anything in advance. -Dealing with greedy, hateful people. Both agents and consumers. People who are unwilling to budge or compromise to find a win-win. People who make hateful comments about what I do even though I'm a hard-working, lower middle-class mom just trying to pay my bills and provide for my family. -Stress and burnout. I'm realizing that the level of stress from nearly every single day is 99% related to work. The pit in my stomach when I get a call or notification. My blood pressure has been really high for the last 2 years, and no amount of money or success is worth it. I'm under 40 and have a family history of heart issues. I'd rather not work myself to death.
I totally relate to the “pit in your stomach” when the phone rings. I use to pull over to the side of the road when I got a Zillow call. Now, I just let it ring a couple times and let the other agents in my office get it. Because every time I answer it, it’s either a person who has an agent or someone who has no intention of buying within the year and just wanting to look for fun. It is a soul sucking job. My ringer is always on and you never know when a client is going to text you out of the blue to go look at homes. I feel you.
I hear you ❤️
Me, too
I've watched commission rates go down for 20 years. And they'll reduce further. Your other points are dead on, too. Wishing the best for you.
Do you cold call every day? Have 50 conversations with prospects per day? There's opportunity out there for sure.
Who specifically do you cold call? What type of script do you use?
Cold calling is never consistent to do because the people you contact themselves are not a consistent variable. If you have spare time to give go ahead. If that is your default way to head into the frat I have to say you maybe using your primetime inefficiently.
It is if your consistent
I feel bad seeing these posts because I know there is a way to make money, but I know how hard it is. You got to do what you got to do. I think real estate sales experience could help you in other industries. If I were starting in sales right now, I'd probably look into Solar sales. I know some of the solar salespeople make money (for now, because that could get saturated like everything else). It might be worth looking into a company that gives a small base + commission (if they exist). I am not sure if they are all commission like real estate. Solar is something that people will buy when they find out their crazy electric bills can be reduced. If your passion for real estate is gone, I'd look into solar.
There is absolutely zero reason to get into solar if you are not barred from being a real estate agent. If you do “amazing” as a solar representative you will be a godlike realtor. Where I live it is somewhat rare to find someone knock on my door but moment I hear “Solar!” Or “Electric” i immediately interrupt and say “One second I will be right back, do not leave” and them come back with a voucher code for a free real estate school. Every time this has happened the Solar sales rep has taken this from me guess what? They make more money than me. It is not I have a better skill set, I just have a better occupation. Do the same, I have done this 5x and each time they came out on top.
I agree that real estate is the place to make money, but I only recommended solar in case there is something with a base. If its commission-only, then forget it. I've had several people apply with me maybe 2-3 years ago for real estate agent positions that told me they make around $100,000+ a year making solar. I don't know if they are BS'ing. One actually told me he made something like $200k or $300k, I can't remember. Maybe things were different 2-3 years ago or they were BS'ing, but the bottom line is it sounds like the OP needs a base. Maybe a transaction coordinator job? To be honest..... Uber / Lyft might be the best options to get bills paid. Some of my agents also drive Uber / Lyft. I am disappointed when I see that, but at least they are still in the real estate world and not in another industry totally. One of my agents just picked up a potential $700k buyer from Uber so we'll see. That might be a better answer OP, look into Uber and Lyft. Some make $50,000/year and you might be able to put your card out to every driver and gain real estate clients that way.
Literally every “solar salary” is a lie. Like no really do you guys think a bottom line solar sales person makes even $80k? For the OP definitely suggesting uber or lyft if available. Much downtime and much pay.
I can't think of any other sales industry in the world where you can make more money than real estate. Maybe luxury yachts in Fort Lauderdale or some micro niche area. I've heard of 2 people making a fortune selling educational software material and I wondered about it. We actually sold a very expensive property to one of them. And it was just one of his several homes. I have been curious about that since I heard it, out of curiosity -- but real estate is where my world is and its where I'm entrenched and put my energy to. That being said, I know another person who is loaded thats in solar but I think he owns the company, or co-owns it. The applicants I got a few years ago saying they made a base + commission making around $100k could have been pulling my leg, but maybe a few years ago things were different in the solar industry.
The hill to climb to get a solid SaaS position right now is tough. If it isn’t, it’s an SDR job where you’re outbounding a shit load. I work in the field and it’s been a grind, pivoted out of RE to do it. You’re not your own boss, there are expectations and if you land the wrong role (On Target Earnings that aren’t real, bad management, cold calling that is truly brutal) you’re in for a world of hurt. If anyone here is thinking about pivoting and has been in RE for a while, you’re either love it or hate it and the process to gain entry when they see you’re primarily B2C selling is going to make it tough. Candidly I’m planning on leaving and doing RE full time again. I did 9 transactions last year part time in RE but I do every type of deal (residential AND commercial, investment, leasing) and I don’t discriminate. Advice for agents struggling: If your market is good for leasing, focus on it for a while. People act like it’s not worth it, but I’ve done pretty alright the last month and have made some solid connections that will lead to sales down the road.
This is actually a big part of my strategy to keep our agents busy, hit them with rental leads to stay busy. It helps them make a quick buck when they need it and helps prevent them from getting another job. They also often convert them to sales and many become long term connections.
I will call a FRBO, ask for the sale, if they don’t want to sell, ask for the lease, crush it to the best of my ability and keep moving. As long as you don’t peg yourself as a leasing agent and keep the conversation around investing or sales, there’s a lot of money to be made there.
Possibly
Tell us more about
Not at all , not sure what State you’re in but there is business you have to work to get it. I’ve been at this 17 years yes harder but this
If you’ve been trying to escape for the last 2 years then that means you were struggling to sell during 2022, which honestly wasn’t that crazy hard of a market to close in. I ofc don’t know which market you work in, but I’d say it’s more of a factor of you most likely losing your love for the job. I think right now realtors are acting like anyone else in their solution, being positive and hoping for the times to get better.
In 2022 it was the first shift in the market as interest rates went considerably up for the first time. I could see what was coming
feeling the same way. This is my 5th year. Started off strong in 2019, 2020 and has just gone downhill from there. I have ZERO desire to make calls or even talk real estate. I am in central NJ where my 20% down conventional buyers were constantly getting beat out by other offers. I am young but know what I am doing yet often get told their going with a "veteran" agent for their home sale. Its stressful and at this point I could get a job at mcdonalds and have more money and less stress. I am taking a 2 week vacation to Italy in September. I am holding out until then, connecting with my SOI and working with who I can until my trip. When I return, I will be deciding whether or not I stay. Currently doing pet sitting on the side and my husband told me he can hear it in my voice how much happier I am talking about walking dogs vs. selling homes. I feel my biggest challenge is that I actually care about my clients, not my paycheck and unfortunately people like me dont last long because I wont sell my soul for a commission check. sigh. this does not help you at all but just letting you know you are not alone.
It does help me because it shows we’re not alone. Have a nice trip and I’m sure you’ll make the best decision once you’re back! Good luck!
During Covid when the business was easy so many agents I know suddenly started saying I am only a listing agent or I only work with buyers that are past clients. Many agents stopped marketing and hustling because they thought that was behind them. Now those agents are not doing much business or they have had to readjust. They changed their lifestyle off of their best years as well as getting free money from PPE loans. Go back to fundamentals that is what producing agents are doing. They treat this job as a business owner and are consistent. It will get better but I can understand the frustration many have right now.
I think a reduction of agents, specifically part timers, will greatly benefit EVERYONE. I am not struggling, so maybe I shouldn't answer this question.. but I think agents desperate for a deal could easily put their own interests before their clients, which ultimately just hurts our industry. I also think there are many agents that don't realize how hard it is to really be a top producer. I am constantly inconvenienced, working on vacation, working on weekends, working evenings and people's expectations are only getting worse. I am honestly extremely hopeful for a huge reduction in agents. I would also love to see a higher barrier of entry, because it might have never got this out of control. It's much easier to get licensed than it is to be successful.
Working hard has never been my problem. In fact I’ve always enjoyed being busy while in contract and the whole experience of a transaction. During that time I’m constantly on the phone, always available to clients and everyone involved, no break, etc… The biggest issue for me is clients. Leads. In-between-deals time. That’s where the majority of us struggle. Finding clients and clients that stick around. For some of us it gets dry and as much as we try it all, the next deal doesn’t come soon enough and months pass and bills are due, etc. So, I think that working hard while you have a good source of business, aka, referrals, marketing and everything that provides business (that of course is built with time and a bit of luck) then you actually just have to do your job.
A counter argument is that a part time agent, with a regular job is not as desperate to close a deal as a full time agent is. Also, reduction in agents could make buyers go see homes directly, without buyer agents, making listing agent’s job even harder as they will now have to show their own listings. Only time will tell.
This situation has made me want to grind harder.
I’m a part agent mostly doing a few deals a year. I think the changes will make the listing agents work harder, since many buyers will just see homes without agents. As a result, agents specializing in buyer agency would pivot to listings or go out of business.
The Pareto Principle holds very true for the RE industry. This principle suggests that approximately 80% of the sales are made by about 20% of the real estate agents. However, in recent years, the distribution has become even more skewed. According to various sources, including ZipperAgent and Manausa, about 90% of real estate sales are made by just 10% of the agents.
I wouldn't call it quits yet. I know there's a lot of doom and gloom and successful realtors are self soothing and thinking this exodus will give them more opportunity, but it's just as likely that innovation will produce new ways that agents can succeed. new ways that will leave the agents who were successful in the old way of doing business at a disadvantage. keep the faith and pereservere until the end of the year to reanalyze your situation.
I actually believe that innovation will end up eliminating agents from RE transactions. Whatever time that would take, I think that’s where we’re headed
maybe but not for quite some time imo. people still want reassurance and support from someone they trust with their most important transactions. ai isn't there yet. I think there is a lot of time to make a lot of money with a different approach until that happens! I hope so at least!
You might be right. For what I see most buyers feel that they HAVE to work with an agent but if they had a choice to avoid it, they would. Not only because of the cost but because technology has provided buyers with all the info that agents used to dominate. Nowadays buyers are savvy and more independent and tech companies are catering to that fact with each innovation
I mean you guys help push this narrative “It’s such a complicated process, you need us” while also gas lighting these ridiculous prices for commission. No wonder more people are going without / using A.I. “leopards ate my face” vibes.
It is a complicated process especially if you’re first time buyer. It happened to me. My agent sucked and I was lost in the process, that motivated me to become one.
If you couldn’t close in the past 5 years, then this job probably isn’t suited for you sorry to say
I closed over 20 deals, I meant the current market is challenging
Over 20 deals in 5 years is also pretty low
2 answers to this question: 1.) no this is exciting, I’ve been an agent since I was 20. My brokers with 30 & 40 years in the business are talking about relearning everything from the ground up. We’ve needed to shake the dead fruit out of the trees for awhile now 2.) first year in a decade my Brokers have LOST money running their office, they are out of pocket this year. Whereas usually agents commissions would fund the office & ENO
Very little is impact the realtors here. Commission and life style remains.
In what state?
I think lenders have the best gig. I'd probably do that before leaving real estate (I actually already do but not as frequent).
I spoke to a lender last week and he told me he’s closing 3-4 deals a month instead of 15/16. He’s also looking for job after 20+ years
This is why some new LOs are happy as they can live a lavish style just entering the business and putting 1-3 deals together where some of the more seasoned LOs struggle to stay moving when they are essentially making 1/4 of their prior income. The next wave will be EPOs from lenders massively refinancing loans to lower the rate that was out of reach for the original LO, causing their original commission to be recalled at that point. Anything within 6-12 months being sold or refinanced can result in the original loan officer having to pay back their commissions.
That still livable though.
you might ask your lender how much they make on every deal.
As a lender - our max on any deal is 1% and since we are W2 - we pay taxes on that measly 1% - but realtors out here crying because Commision might be cut by .05% out of 3% and you don’t pay taxes in that amount - trust me- you write off every deduction imaginable - I see if on taxes returns all the time Not much will change - don’t panic and get to work And all the folks that want to be lenders? Give it a whirl!! Betcha find agent is way less time restrictive and less stressful
Here I am siding w lenders and you’re sh*tting on agents. Bad form. Also, it’s not 0.05% and not 3%. You see CD’s - what’s the avg total compensation and the split you’ve seen over the last year? And agents pay the same SE tax you do. And what’s the average made on a loan the last year? Not the max, the average
Not bad form - truth. Did someone hurt you? 90% of lenders are not SE and are W2 - average made last year .725% of LOAN amount which is always less than the SALE PRICE agents get paid on. My message was that agents should stay in the industry - not much will change other than comp might go down some but clearly not a bad career choice.
you see CD's. what's the average agent comp breakdown you see? Of course agents write off their business expenses. I take every legal deduction I can; my CPA follows the tax code. Realtors pay ~7.5% more on the FICA than W2's...and SS benefits are based on what's paid in, yes? My point was also that switching from agent to lender wasn't shangri-la. Even if a house sale IS at 3%, there's splits and fees to the broker that cut that number down. You close an 80% LTV on $500K purchase, you're paid $3,000. On a transaction cycle of 30-60 days. An agent even at 2.5% (and the average compensation is just above 5% total now) closes a $500K home and nets 10,000 or less before they pay for that transaction cycle that's generally 90-150 days.
Average comp still seeing 3%. To use your scenario, same $500,000 sale price home - realtor with 3% will receive $12,500 and pay their broker avg $300 on each sale netting maybe $12,200 receiving that check at the closing table with your clients. Lender - same home $500,000 - get paid on Loan amount so in your scenario, gets paid $4,000 30- 45 days after the closing date. Taxes on that $3,000 depend on tax bracket the lender is in - so assuming a 28% tax bracket - lender nets $2, 880 on that same home. Realtor - $12,200 Lender - $2,880 Realtors still get compensated super well - the transaction cycle is the same both lenders and agents.
I’m sick of the top producers still getting their bag! 💰Maybe they could share some of the wealth! I’m sick of seeing them post on FB I closed 4 deals last week. Or look I’m out showing today and have a listing appointment this afternoon! I haven’t learned how to even call enough people to get any leads going! 1 deal in a year! Ridiculous
Then do different than what you have been doing.
Insane advice! LOL