Navigating the Real Estate Profession: A Glimpse into the Challenges Ahead 🌟
When I wrote The Architecture of the Real Estate Practice, my goal was to shed light on the challenges faced by those considering a career as a real estate agent. Many jump into this highly competitive field without fully understanding the complexities and hurdles they will encounter. With upcoming changes in the industry's compensation structure, real estate professionals must find ways to navigate these changes to excel. 🏡💼
Here's an excerpt from my book that reveals some startling statistics. If you're a real estate professional seeking answers, my book offers strategies and tactics for the future. 📚✨
"Because… there is a Problem!"
New Real Estate Agents working in the business full-time are failing at an alarming rate, evidenced by the following statistics. Twenty-one percent of all Agents affiliated with NAR are unsure if they will continue working in the industry for the next two years. In my opinion, the "net income" of a large percentage of REALTORS® is below a reasonable amount based upon the professional requirements that must be met. Net income is the money left over after all expenses and taxes have been paid. Suppose this amount of money does not allow for a sustainable lifestyle for the participant and the ability to invest proceeds back into the business. In that case, I consider this a failure, as few people can work without an income over a prolonged period.
Twenty-one percent of the 1,592,920 Agents affiliated with the National Association of REALTORS® earned less than $25,000 of gross income in 2021. If an Agent's Gross Income is below $25,000, one must deduct expenses and taxes to compute "Net Income." There is little left to provide for living expenses, and nothing left to reinvest into marketing and growing the business. (NAR Report 2022, p. 50.)
Perhaps the most concerning statistic from the NAR report dealt with new and aspiring Agents. Fifty-seven percent of Agents with less than two years of experience made a Gross Income of less than $10,000 in 2021. One might think it is normal for a new agent to have minimal income in the first year after becoming a REALTOR®. Did they know this before they began a career in real estate? 🧐💭
If you're thinking about a career in real estate or are already in the field, it's vital to understand these realities. My book, The Architecture of the Real Estate Practice, is designed to equip you with the knowledge and strategies needed to succeed in this dynamic industry. 📈🔑
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