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6 Sobering Reasons NOT to Become a Realtor

By
Services for Real Estate Pros with Inbound Real Estate Marketing L.L.C.

Note: check out the original, more comprehensive article here.

At first glance, becoming a real estate agent seems like a dream job—flexible hours, attractive commission checks, and the chance to explore stunning homes. What’s not to love?

But before you dive in, it’s important to understand the challenges. Real estate isn’t as easy as it looks, and the reality of this career can catch many off guard. In fact, about 87% of new agents quit within five years.

Why do so many fail? Because real estate demands far more than just a love for houses or a desire for a career change. It requires grit, strategy, and resilience.

If you’re considering a career in real estate, take a moment to reflect. Are you truly prepared for the challenges? This guide will help you assess whether real estate is the right fit for you and provide actionable tips to succeed.

 

 

1. You’re Not Ready to Run Your Own Business

Being a real estate agent is essentially running a small business. You’re responsible for everything—finding clients, marketing your services, managing finances, and building a professional network.

You’ll need the drive of a self-employed individual, the chops and organizational skills of a business owner, and the people skills of a salesman. 

You’ll also be a negotiator, financial advisor, writer, marketer, and many other roles.

What It Takes

  • More Than Selling Homes: Beyond showing properties, you’ll need to create a personal brand, handle marketing, generate leads, and deliver exceptional service to clients.
  • Building Relationships: Success relies on a network of trusted professionals—lenders, home inspectors, appraisers, and more. These connections help you navigate transactions smoothly.
  • Constant Networking: Developing referral sources, such as attorneys and financial planners, can lead to valuable leads.

Self-Check: Are you comfortable with the idea of being your own boss, multitasking, and networking regularly? Are you a thirsty learner and enjoy expanding your skill set? If not, real estate may feel overwhelming.

 

2. You Don’t Have a Financial Cushion

Starting in real estate requires an upfront investment, and you may go months without earning significant income. From licensing fees to marketing expenses, costs add up quickly.

What You’ll Need

  • Savings: Have at least six months of living expenses saved to cover personal and business costs while you build your client base.
  • Budgeting Skills: Track recurring expenses like MLS fees, marketing, and transportation to avoid financial strain.
  • Creative Lead Generation: Use free methods like social media, networking, and reconnecting with your contacts to save on advertising.

Self-Check: Can you handle inconsistent income from year to year and month to month? Can you comfortably invest in your business without immediate returns? If not, this career may feel financially stressful.

 

3. You Don’t Like Constant Communication

Real estate thrives on communication. Whether you’re negotiating deals, following up with leads, or guiding clients, staying connected is non-negotiable.

How to Stay Ahead

  • Hone Your Communication Skills: Be a clear, effective communicator and an active listener. Clients value simplicity and transparency.
  • Use Tools: CRMs can help you stay on top of client responses and streamline communication.

Self-Check: Do you enjoy staying accessible via calls, texts, and emails—even after hours? If not, maintaining client relationships might become exhausting.

 

4. You Don’t Have a Strong Work Ethic

Real estate isn’t a typical 9-to-5 job. Success requires flexibility, hustle, and the ability to meet clients on their schedule, which often includes nights and weekends.

Reality Check

  • Be Available: Clients expect you to accommodate their needs, even on short notice.
  • Juggle Responsibilities: Managing showings, paperwork, and client interactions simultaneously is the norm.

Self-Check: Are you prepared to make sacrifices and work irregular hours to build your career?

 

5. You’re Not Ready for the Stress

Real estate can be unpredictable. Deals fall through, clients get emotional, and income fluctuates. It’s a high-pressure job that requires mental toughness.

How to Cope

  • Embrace Uncertainty: Be ready for setbacks and adapt quickly when things don’t go as planned.
  • Stay Level-Headed: Managing emotional clients professionally is key to building trust and closing deals.

Self-Check: Do you thrive under pressure, or does stress weigh you down? If uncertainty feels overwhelming, real estate may not be for you.

 

6. You’re Not Passionate About Real Estate

Passion fuels success in real estate. Without genuine interest, the long hours, constant learning, and challenges can lead to burnout.

What Drives Success

  • A Love for Helping Clients: This career is more about solving problems and navigating transactions than touring luxury homes.
  • Commitment to Learning: Market trends, negotiation tactics, and real estate laws are ever-evolving. Continuous learning is essential.

Self-Check: Are you excited to dive into the intricacies of real estate, or are you drawn to it for superficial reasons?

 

The Bottom Line

Becoming a real estate agent can be rewarding, but it’s not for everyone. By understanding the challenges and evaluating your readiness, you can decide whether this path aligns with your goals and skills.

If you’re willing to embrace the hustle, develop your network, and commit to continuous learning, real estate could be a fulfilling career. But if the demands feel daunting, it’s worth exploring other options that better suit your strengths.

If you're already a realtor, check out how InboundREM creates websites with 10X ROIs and manages Google Business Profiles that rank #1

https://inboundrem.com/real-estate-seo-companies-services/

If you still want to become a realtor, check out these state-specific guides:

Alabama Alaska Arizona
Arkansas California Colorado
Connecticut Delaware Florida
Georgia Hawaii Idaho
Illinois Indiana Iowa
Kansas Kentucky Louisiana
Maine Maryland Massachusetts
Michigan Minnesota Mississippi
Missouri Montana Nebraska
Nevada New Hampshire New Jersey
New Mexico New York North Carolina
North Dakota Ohio Oklahoma
Oregon Pennsylvania Rhode Island
South Carolina South Dakota Tennessee
Texas Utah Vermont
Virginia Washington West Virginia
Wisconsin Wyoming  

Comments(9)

Show All Comments Sort:
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Robert, the public does think this is an easy way to make a ton of money.  NOT SO!

Nov 24, 2024 02:43 PM
Robert Newman

Joan,

 

Couldn't agree more.

Nov 24, 2024 03:34 PM
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

Thank you for this post ........ very well laid out.

With the current slow real estate market, real estate agents are leaving the industry. In January 2024 there was a drop of 8% in the membership of the Toronto Board.

Nov 24, 2024 02:53 PM
Robert Newman

Rosalind,

 

Likely, this is just the beginning. In 2005, we had 2 million licensed realtors. 2 years later, 1.2 million. A couple of years after that, under 1 million. 

 

Based on my 16 years in the industry, I estimate only about 30% of realtors think and treat the profession like a career. All the rest sem to look at it as some kind of financial resting spot. 

Nov 24, 2024 03:41 PM
Joe Mojica
Laer Realty Partners Bowen - Port St Lucie, FL
Your Home Adds Value to You

Robert,

I believe a lot of people (not all) go into selling real estate because they think it is easy and a lot of money. When I took my real estate class, I never heard any of the other students express an interest in real estate because they wanted to help people.  The comments I always heard was about how large the commissions were going to be. As you mentioned in your blog, it isn't as easy as it appears.  As a realtor, we are responsible for every aspect of our business.  Thanks for the blog.

Nov 24, 2024 03:18 PM
Robert Newman

Joe,

 

It sounds like you're just the guy we write them for. Real estate is a beautiful profession. I feel so many people look at it the wrong way. What an incredible opportunity to elevate the entire profession of sales and help people in so many important ways. But for some, it's just about the paycheck. Fortunatley poor values usually lead to poor results .

Nov 24, 2024 03:48 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Robert - without proper self-examination, a dream can become a nightmare.  A reality check is beneficial before considering many options in life especially in the real estate industry.   

Nov 24, 2024 05:29 PM
Robert Newman
Inbound Real Estate Marketing L.L.C. - Buffalo, WY
Creating Enduring Online Marketing Results

Its shocking that the number of agents that fail is only slightly lower than the number of businesses that survive more than 5 years. 

Nov 24, 2024 05:37 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
Nov 25, 2024 02:57 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

These are indeed good reasons not to become a real estate professional! When I took my real estate licensing classes, I don't remember them ever saying we were going to be running a business. We never covered what that actually meant. Or how to find a niche, or how to target a specific customer, or... well, nothing that was actually helpful in managing a business.

Carol Williams suggestion for Second Chance Saturday.

Nov 25, 2024 05:30 AM
Robert Newman

Kat,

 

I have studied the California test for research purposes and I have never seen any basic Info nor any common sense subjects like how to negotiate or what the differences in brokerages are (including compensation). 

Nov 25, 2024 02:38 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Robert,
The reality of running a business in real estate is much different than most are led to believe.  Great outline of reasons NOT to become a real estate agent... or run a business of any kind.

Nov 25, 2024 06:41 AM
Robert Newman

Yes and a trend thats been becoming more pronounced over the years is increasing comp creep on the pay for play side. (increasingly aggressive splits from brokers and marketing companies) . In essence because of lack of ability for agents to create leads through many of the basic principles we listed the perceived value has raised and oftentimes agents find themselves getting 50% splits doing 80/90% of the actual work. 

 

In other words... enjoy your retirement:-) 

Nov 25, 2024 02:50 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Great post, Robert. I so often run into people who tell me they are thinking of "trying real estate." I always tell them do or don't do. There's no room for trying. When I tell them about the failure statistics in our profession they are usually more than a little bit shocked.

Nov 25, 2024 07:06 AM