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Jan
22

Working Real Estate In The US- Scary?

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When you work in real estate in US, you are a self-employed independent contractor. People who think that real estate is the way to get rich overnight often find themselves in a real estate nightmare. When you work in real estate, your earning potential is directly related to many factors that you cannot control.

There is great opportunity to make money in real estate, but the market fluctuates greatly and earnings are not guaranteed. Unfortunately many people go into real estate with unrealistic expectations about the career field. It can be very scary to try to make a living in real estate, particularly for those who are just starting out.


People think that real estate agents have a lot of freedom and get to drive around all day looking at houses with nice people. They think that being able to be out of an office all day is a great way to earn a living. People who don’t work in real estate don’t understand how much work actually goes into making a sale.

The truth of the matter is that many realtors do spend hours and hours showing houses to potential customers who just cannot be satisfied, or who do not have the financial stability needed to get a mortgage.

You have to understand that realtors do not get paid based on the time that they work. These hours spent driving clients around will never result in any type of financial reward unless a sale is actually closed.

Let’s look at how hard it can be to get to a closed sale with real estate in US. There is no guarantee that you will be able to help a client find a house that he or she wants to buy. If your client does make an offer on a house, there is no guarantee that the seller will accept the offer.

Even if the seller does accept the offer, with our without negotiation, there is no guarantee that they buyer will be able to get financing. Maybe while your buyers is trying to get financing, someone else comes along who can pay cash for your house and your buyer loses his or her conditional contract.

Let’s say that they buyer does get pre-approval for a mortgage. Still, there are things that can go wrong. The house might not appraise high enough for the lender to write a loan for the full amount. There may be structural issues with the house that require repairs to be made before the sale can close.

Even if the house can be entirely funded and there are no problems with the structure of the house, still more problems can arise. You client may have trouble getting the house insured. There may not be a clear title on the house. Unexpected closing costs might affect down payment or even loan eligibility.

While closing a sale isn’t impossible, it isn’t easy either. Many people who think that real estate is a fun and easy way to make a lot of money don’t realize really how much work goes into becoming successful in real estate.

Working your own schedule may not seem as appealing to many people when they realize that they do not actually get paid for the time worked. While real estate in US can be a rewarding career, you can find yourself in a real estate nightmare if your expectations aren’t realistic.



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Posted by Julio
  1. delaware retirement communities Said,

    I agree completely that Real Estate is a lot of work but the rewards can be incredible.

    I have been a hard worker at everything I’ve done during my life. If you work hard for someone else you are likely to get a pat on the back and if you are lucky a thank you. As your own boss if you work harder (and do the right things) you tend to make more money.

    I have gone from making around $40,000 - $50,000 a year working for others to making $200,000 a year in Real Estate. It’s not easy, I work 15 hours a day 7 days a week and I drive a lot of people around . I also spend a lot of time reading and posting on other peoples blogs ;) In the end I’m much happier being a Realtor than any of my previous jobs.

    Like anything in life you get what you put in. Don’t expect to become rich in real estate without putting in a lot of time and effort.

    - Mike Brown

  2. delaware retirement communities Said,

    This is a great looking blog. Is this a wordpress template or custom made? I’d love to know who made it if you are willing to share.

    Mike Brown
    mike @ bwbeach com

  3. Cherokee County Real Estate Said,

    I agree, nice looking blog.

    I think it is way to easy to get your RE license. Too many people jump in with $’s in their eyes, and every botched transaction only makes things harder for the rest of us.

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