Real Estate Rollercoaster: What I Wish I Knew Before Starting My Career
The thought of entering the world of real estate can be an exciting and promising venture. The allure of flexible schedules, potentially high earnings, and the opportunity to help clients achieve their dreams is undoubtedly appealing. I mean, who doesn't want to live the glamours lifestyles that we see on Selling Sunset or Million Dollar Listing?!
However, beneath the surface lies a reality that many aspiring real estate professionals are unaware of, or don't fully process the significance of. As Vancouver real estate agent who has had to navigate through market changes, I wanted to be authentic and shed light on a few important topics that I wish I had been more aware of before entering into this career:
The Steep Learning Curve:
I still remember my Dad's expression when I told him that I was going to change careers and become a real estate agent. At the time, I hadn't even purchased my own property, how was I going to claim to be an expert and gain trust from clients? I was young and naive, and even though it worked out for me, I don't want to downplay the sheer amount of knowledge and skill that is required. From market analysis, property valuations to legal intricacies, negotiation tactics and marketing competence, the learning curve can feel overwhelming. Not to mention the stress and emotion you feel for your clients during one of the most important transactions in their lives. With these complexities, and the fact that very few deals are the same, unfortunately the only way to feel like an expert in this industry is with time and experience. Luckily for me, I joined a Top 1% Team, which significantly expedited my learning curve in this industry. However for some, this could take years and years to achieve and you need to be aware that this industry is a marathon, not a sprint. And trust me, nobody has it completely figured out, there is always going to be more to learn.
Market Volatility and Economic Factors:
The real estate market can be heavily influenced by economic factors beyond our control. Recessions, interest rate fluctuations, and market downturns can significantly impact the industry. Understanding these cyclical trends and being prepared to adapt to market conditions is crucial. I was told time over time to set budgets and build a financial buffer, but I still made the mistake in my rookie year of overspending. Don't underestimate the monthly costs associated with being a real estate agent and budget for: Real Estate Board fees, Brokerage fees, marketing costs (websites, brochures, real estate signs, business cards, any advertising), client hosting, vehicle expenses, and the list goes on. My real estate monthly fixed costs are approximately $2,200, and that is low considering some of my main costs are shared amongst my team. You have heard this before, but getting started in this industry requires a healthy budget to enter and to weather economic storms.
Building a Network Takes Time:
The way I have built, and continue to build, my career is through my authentic and dedicated approach. Success in real estate relies heavily on networking, developing strong relationships and having a great reputation - referrals are key!! However, establishing a solid network is not an overnight accomplishment, especially if you are not from the city you are working in. It takes consistent effort, attending industry events, joining professional associations, and actively engaging with potential clients and peers. You represent your own brand at all hours of the day and night. You need to thoroughly enjoy socializing and understand that after a a long day of grinding, you will need still need enough energy for evening events and functions as well. It took me a while to gain this stamina, as I was used to going home at 5pm and ending my work day. Those days are far gone!
Long Hours and Unpredictable Work-Life Balance:
Contrary to the perception of flexibility, the real estate industry demands long hours, including evenings and weekends. Client demands, property viewings, paperwork, running your marketing channels and continuous prospecting requires a strong work ethic and dedication. I am currently writing this blog at 6am, knowing I have a hectic day ahead of me. Yes, there is no better feeling than visiting Costco at 11am on a Wednesday, but in return for the luxury of freely walking aisles, you will miss out on many important events, especially when you are first establishing yourself. I am no stranger to working long hours as I used to work 9-5 in the office and then game nights on evenings and weekends when I worked for Canucks Sports & Entertainment. However, real estate is an entirely different beast. Believe me. Balancing personal life and work can be challenging and it may take a long time to figure out how this looks for you. When I first started, I had no strategy, or care, to maintain a healthy work-life balance and I worked nearly 365 days straight. I consistently burnt out, missed out on many important life events and even ruined some relationships. It took me a couple of years to understand how taking breaks and making time for friends & family are necessary outlets and it is ok to enjoy my personal life too.
Establishing a Reputation Takes Time:
In a competitive industry like real estate, establishing a reputation as a trustworthy and knowledgeable professional is paramount. It takes time to earn the trust of clients, build a track record of successful transactions, and receive referrals. There are over 2,000 licensed real estate agents in Vancouver and you need to stand out amongst hoards of professionals. I knew this would be challenging, but I didn't understand how difficult it would be, especially because I was relatively young when I entered the Industry. As a new agent, you are a no-named rookie who is competing against the Sidney Corbies - long-term, respected and reputable agents that have dedicated their lives to real estate. You need to enter this industry for the long hall, success will follow, but it isn't immediate for many.
To summarize, getting into real estate and achieving long-term success is undeniably challenging. There is a misconception that once you get your licence you will quickly earn easy money. This idea is so far off from true. I'm sure you will feel sick, stressed and broke, before even earning a dollar. However, if you are prepared to take on the hard work, there is no better feeling than conquering these hurdles. Keep working through the hard times and the success can come!
If you have any questions or are looking for advice, I would be thrilled to connect