The real estate industry is one of those industries where there is a lot of potential to be very successful and make a great living. However, there are many misconceptions about working in this field for a variety of reasons. One reason could be that the whole process of buying and selling a home can seem complicated and somewhat of a mystery to those who unfamiliar with it. There’s also the way agents are depicted on television which is typically meant for entertainment but at the same time gives off the wrong impression about the job as a whole. To clear things up a bit, here are some of the misconceptions about working in the real estate industry.
This job is easy
This is a very common misconception out there as most people see the job as simply showing people houses or apartments and then selling them. However, there is so much more work put into it that the job almost seems a bit undervalued. Some of the daily challenges that agents face are marketing “not so marketable” properties, managing a huge client database and supervising heated negotiations, and this is all on top of the stress that comes from a commission-based income in a pretty unstable market.
You will make a lot of money
This is another common misconception with the job, and while it is true that the earning potential is great, sadly it is not the case for everyone. One has to realize that the average commission is six percent of the total sale price and then that commission is split between both the buyer and seller’s agent and then they each must split that with their brokers. On top of that, most agents are essentially working for free until that payout. So before they receive that big payout in the end, they would have already been working for months without a regular paycheck.
You will have a pretty flexible schedule
While it is true that most agents are not required to work the typical 9-5 schedule Monday through Friday, that doesn’t mean that they can simply abandon their office at will, or go on vacation at a moment’s notice. You have to remember that you are working with your clients and sometimes will have to cater to their schedules as well. You will have buyers who are constantly wanting an immediate showing of a new listing and then there will be sellers who want you constantly monitor leads. So while it is true you can choose how flexible you want to be, you have to take into consideration the needs of your clients and be available when necessary.
51 percent of all of Florida’s real estate sales are cash home sales. This makes Florida the leader in the United States for cash home sales. On average, national home cash sales are around 33% which is higher than last years rate of around 20%. After the recession, there was a shortage of houses for sale as well as more strict regulations put on mortgage lending. Cash offers are a lot more attractive to sellers as they know that they will have the money right after the papers are signed. It surpasses much of the financing needed in a non-cash agreement, making someone paying cash a way to help them win a bidding war. This makes it very difficult for first0time buyers relying on financing. It it a lot more difficult to qualify for financing these days, and with the high demand and higher supply of cash buyers, young homebuyers are finding it more difficult to purchase homes.