Are You Considering a Career in Real Estate?

I wrote an article several years ago about the pros and cons of considering real estate as your vocation. As the market continues to soar and because of the frequency of calls from individuals who have expressed a keen interest in exploring this option, I felt it was appropriate to revisit this topic. This article will attempt to give you a clearer picture of the "ingredients" necessary to succeed in this business.

Licensing Requirements
To become a licensed realtor today you need to successfully complete 3 courses (phase I, II & phase III either residential or commercial) with a minimum pass mark of 75%. The program has been revamped over the years and it does require some thought and application to successfully complete. During the first two years as a licensed realtor you are required to successfully complete the remaining phase III course (residential or commercial) as well as Real Property Law and 1 elective which can be Principals of Mortgage Financing, Principals of Appraisal, Real Estate Investment Analysis or Principals of Property Management. The goal of the Ontario Real Estate Association today is to have new graduates well equipped to deal with this ever evolving and more complex profession.

History
I remember when I first obtained my license in late 1988, the market was red hot and there was an extensive waiting list for those candidates wanting to enrol in the real estate program. The excitement of pursuing a real estate career tapered off in the early to the mid nineties when we were battling a severe economic recession. Today, I have many clients and friends who ask me about a career in real estate. Let me start by saying I personally enjoy this business immensely. I have been fortunate in that my career has taken me to levels that I wouldn't have imagined. But make no mistake, this career is not an easy one! It takes a tremendous amount of work, patience, communication and people skills and the list goes on.

Do You Have What It Takes?
The first question you have to ask yourself is why are you considering real estate? While monetary considerations are important, the reason to enter the real estate profession should not be exclusively financial otherwise you may find out later that this business was a disappointing experience. You have to be prepared to work 6-7 days a week (especially in the apprenticeship years). You need to truly be a people person who enjoys dealing with folks from all walks of life and you need to exercise patience and understanding. Remember, your client is making the largest financial investment of his/her life and you have to act selflessly to protect your clients interest. I am amazed at how short sighted many realtors are who are only focusing on making "the deal". If you build a "client for life" philosophy you will be planting your seeds and reaping the benefits for years to come.

Unlike your standard job with "fixed" hours, real estate is very unpredictable. You have to be flexible and accommodate your clients' schedules. You also need to be available sometimes on short notice if an offer unexpectedly arrives. If you have a family this can sometimes cause some challenges as plans may have to be canceled at literally the last minute.

Your spouse (or partner) is a very important part of your career. If they are supportive and understanding your chance of success is greatly enhanced. Both need to be clear about the expectations of this career.

If you decide to pursue a career in real estate, it is important to have some money set aside for the first few months. If you enter the business in financial dire straits and you are in need of selling some homes this will be quite evident to your client. I believe a realtor operates best when he/she has no financial constraints and they can focus their energies on finding the right home for the client regardless of the time frame. Additionally, because your income is solely based on sales there is an element of unpredictability. There may be some weeks and months where you are selling homes in high volumes and there could be periods of time where you don't sell any homes. If you have built yourself a safety net than the fluctuation of income wont be as much of a concern.

There are many disappointments which are an inherent part of this business. You need to be able to "stomach" the disappointments of clients who you thought were loyal to you only to find out they bought a home from another realtor. The most difficult emotional encounters are when you learn that a family member and/or close friend(s) have decided to deal with another realtor. Yes, real estate has its ups and downs!

Conclusion
If this real estate profession fits your profile it can be an exceptional business. You are your own boss and get rewarded directly for your efforts. Comparatively speaking the cash outlay to start your own real estate business is very minimal. You don't have excessive fixed costs and the return for your time and devotion can be sizeable. However, like any business you have to pay your dues and you shouldn't expect overnight success.

If after reading this article you have concluded this career is for you and you can deal with the difficulties of this business, I encourage you to explore this career option further!