Since the real estate market has grown throughout the pandemic, many people have considered getting their real estate license. Is getting your real estate license worth it in 2023?
Last year the Canadian economy and unemployment rate were at an all-time low, while the real estate market was at an all-time high.
A year later, however, things changed. This year in 2023, it’s a much tougher decision to make given the most rapid rise in interest rates we have ever seen, which has slowed the market down considerably.
If you’re seriously considering getting your real estate license or are just curious if now is a good time to start studying at Humber College, continue reading this breakdown on the pros and cons of getting your real estate license in 2023.
Pros of Getting Your Real Estate License
Freedom to work your way on your terms. Don’t like to get up early in the morning? You have total control as a solo agent over your time. You set your hours. But with this complete control comes complete responsibility. At least in the beginning, you’ll need total discipline and dedication to break through the barriers of entry.
Unlimited earning potential. Are you good at marketing, advertising, sales, and service? That’s right, there’s no limit on how much money you can make in real estate. This sounds great, but in reality, there are so many factors you’ll face to scale a real estate business to become an ultra-high income earner. The truth is most high-income earners have staff to support them.
Long-term repeat business and referrals. If you make the breakthrough and establish yourself with a large customer base and referral network, you can see great long-term repeat business, which is like your business paying you back for all the hard work you put in at the beginning of your real estate career. Although this repeat business is not guaranteed, it certainly is a benefit to have people coming back to you for your service.
Cons of Getting Your Real Estate License
Initial Investment: On average, it will take 6-12 months to complete your real estate license training at Humber College. Once you’ve completed the Humber real estate program and passed all the exams, you’ve got fees to pay before you’re licensed. It might take another 6-12 months to earn your first commission.
Cash Flow: Have you worked on straight commission before? If not you may find the adjustment from a 100% performance base income difficult. Are you prepared to spend lots of hours working without being paid?
Expenses, Fees, and Dues: Add to the pressure of working on a straight commission that licensed real estate agents have annual fees, expenses, and dues required to keep their licenses active. Many people leave the real estate profession after a year or two because they aren’t earning enough to pay the bills and renew license fees. Standard fees include your CREA, OREA and TREB memberships, brokerage fees, insurance, technology, marketing, advertising, auto, etc.
Steep Learning Curve. Each real estate transaction has a lot of fluidity because many variables are unique to each deal. You need to become an expert in contracts, financing, and home valuations. You must also be good at marketing and sales communication and proficient in high-stakes negotiations.
Odd hours and flexibility to meet your client’s needs. Unlike conventional 9-5 jobs, a career in real estate can put your calendar at the mercy of your clients. You will be asked for help when you least want to drop what you are doing and put your full attention on researching another new listing. Are you flexible and willing enough to experience unexpected interruptions? This might not be for you if you like a smooth and predictable calendar.
Competition: On top of everything else. There are over 90,000 real estate agents in Ontario you’ll be competing against for buyers and sellers.
Conclusion
At the end of the day, after you’ve done your research and considered everything carefully, follow your heart and do whatever you think is suitable for you. Maybe you can earn money in other ways, or maybe real estate is the right choice for you.
If you have any questions, comment below or contact me here.
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