Is Now the Right Moment to Enter the Real Estate Market?

Anytime is the right time to enter the real estate market. If you want to be a real estate agent, you shouldn't base your time of entry exclusively on market factors, good or bad. The real estate market constantly fluctuates, but it is an essential industry, like food or funeral services. Everyone will always need essential services, but the demand may be higher or lower depending on the market conditions. Here are some tips on being a successful real estate agent, no matter what's going on in or outside the industry.

Why You Shouldn't Base Your Entry on Current Housing Market Trends

What happened to the real estate market in the past few years surrounding the pandemic of 2020? Logically, it should have been at a standstill since much of the country faced lockdowns. Realistically, the opposite happened. Low interest rates caused a trend for many people to start selling their homes to move elsewhere. In turn, this set off a trend in the real estate industry that caused plenty of people to leave their current jobs and pursue a career in real estate. According to a recent report by the National Association of Realtors, nearly 156,000 became realtors between 2020 and 2021.

Unfortunately, the rapid growth in the housing market sent shockwaves through the U.S. economy and triggered the Fed to increase interest rates to slow it down. From around February 2022 until December of the same year, the interest rate on homes climbed from about 3.5 percent to about 7.5 percent. The interest rates continued to climb well into the year 2023, reaching 8.5 in July 2023 and remaining steady.

The high-interest rates caused many markets around the country to cool off. As a result, many real estate agents who jumped on the bandwagon to become real estate agents when the market was booming started leaving the industry.

Lesson learned: you shouldn't base your decision to become a real estate agent on a boom or a bust.

If you genuinely want to be successful in any industry, your success shouldn't be based on trends. You shouldn't want to be a real estate agent because there is plenty of money to earn at the moment. This means that when there isn't enough money to make, you'll likely move on to other pursuits. As with any business, you must persist through the good and the bad times. So whenever you decide to get into real estate, your motivation should be based on your wants, needs, and desires, not trends.

How Entering When Others Are Leaving Could Be Advantageous

According to the National Association of Realtors, nearly 60,000 real estate agents started leaving the industry in early 2023. From the outside looking in, this may seem like the wrong time to enter the market. After all, who wants to go into a market where thousands are leaving in a short period?

Unfortunately, having this mindset would give you a distorted perception of the industry. Many who are leaving are probably those who entered between 2020 and 2021 for financial reasons. They probably heard real estate was booming, so they left their jobs to chase the economic boom in real estate. These opportunists probably had no action plan or genuine desire to become successful other than earning quick money. Others leaving the industry are probably going due to their desire to retire.

Whatever is causing this trend shouldn't affect you becoming an agent now. As a matter of fact, since the market is becoming much more normalized, this could be the perfect time to enter since competition will be lower. So, if you want to become a real estate agent, now would be a good time to enter the market.

When Your Local Market is Bad, Try Elsewhere

Real estate doesn't move in a straight line. When it's a seller's market in one area, it may be a buyer's market in another area. Also, one area may have plenty of housing supply while another may have little. Still, competition may be fierce in one market and easygoing in another.

What this translates into for a future real estate agent is that you can go to a market that can increase your chance of success. You don’t have to delay your entry into real estate based on local market conditions. Also, keep in mind that residential real estate is just one option. You can also consider working in commercial real estate or vacation rentals. The possibilities are endless if you look for opportunities beyond your front door. Look for potential elsewhere and seize the day!

Reasons Why Entering the Market Now May Not be a Good Idea

"Is now the right moment to enter the real estate market?" This may be a great question to ask those wanting to make a real estate career change. But an even better question for those wishing to make a career change is whether this is a good career move at all. Being a real estate agent can be hard, particularly if you don’t have the right mind or skill set. Here are a few reasons why becoming a real estate agent may be a bad career choice now.

You Don't Have Enough Money Set Aside

Many think of entering real estate like any other job. However, real estate is like a small business because you will be an independent contractor. While you may not have to seek angel investors or get loans in the way you would as a traditional small business owner, you will need to set aside some of your personal finances to start your career.

These resources will be needed to pay for your own personal expenses until you start making money. They will also be required to pay for various things associated with becoming an agent, including education, licensing, and broker fees. If you don't have such resources set aside, it probably isn't a good time to enter the market.

Your Market is Highly Competitive

Even the most competitive person may have difficulty succeeding in a highly competitive market such as Sarasota, Orlando, or Tampa. If you can't work in a less competitive region in Florida, it may not be a good time to enter real estate.

You're Not a People Person

The real estate industry involves plenty of relationship building. Not only will you need to work well with other colleagues in your local office, but you will need to work well with other real estate professionals and clients. If you're too shy to interact with people, entering this profession right now may not be a good idea.

You Want a Steady Paycheck

Working as a real estate agent can be pretty rewarding, especially financially. But you won't be economically successful right away. Some agents take several months before acquiring pay from their first deal, and it could take years to get consistent pay. So, if you're looking for a steady paycheck, entering the market now may not be a good option unless you join as a part-time real estate agent.

You Have No Desire to Be an Entrepreneur

While a few daring people want to go out and "do their own thing" in the workforce, not everyone desires to be an entrepreneur. For some, the thought of not having a steady paycheck, creating their own schedule, and setting goals frightens them. So, if you don't want to own your own business, now may not be a good time to pursue a career as a real estate agent.

You Hate Sales

As a real estate agent, you will perform many tasks and wear many hats. But the primary duty you'll be responsible for as an agent is sales. You will have to do presentations, help with negotiations, and be involved in closing deals. If you cringe at the thought of selling, this may not be a good profession to enter right now.

You Don't Handle Rejection or Stress Well

Let's face it: not everyone deals with rejection and stress well. For many people, when someone says "no," they take that answer at face value. In the world of sales, "no" isn't always absolute.

The bottom line is that as a salesperson, you have to remain persistent because "no" today could change to a "yes" in the future. Additionally, you may experience plenty of rejection from many before you start to get positive responses consistently. Yes, rejection and the stress that comes from rejection is brutal. But you have to be able to shake it off and continue to pursue other opportunities.

If you're someone who gives up after several rejections, this may not be a good time to become a real estate agent.