Emily
by on April 18, 2024
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Did you come across some hard-to-believe information while Googling about what it's like to be an agent in a real estate brokerage in Mississauga? Maybe you’ve seen that as a Realtor, you can take holidays anytime you want or you’ll be paid right after you get a client. Unfortunately, both of this information is untrue.

However, these aren’t the only myths floating around the Internet about being a real estate agent. There are hundreds and thousands of incorrect facts that misguide new and seasoned real estate agents.

In this guide, we will debunk some of the myths surrounding the real estate career. Whether you’re just starting a career in the real estate industry or are in the early stages, our blog will equip you with the right information and give you a real insight into the life of a real estate agent.

Debunking Popular Myths Surrounding Real Estate Agents

MYTH #1 - Real estate agents can earn big bucks with ease

This has to be the most widespread myth about being an agent in a top real estate brokerage. If earning money in the real estate industry was so easy, so many agents wouldn’t have left the industry within the first two years.

Yes, you can earn a lot of money in the real estate industry but only if you work hard. The agents who survive long in this industry and earn high commissions are the ones who delicately work for their clients, not the ones looking for ways to earn easy money.

Earning money being a real estate agent may look too easy from the outside. It may seem like a real estate agent spends a few hours talking with a homebuyer, shows them some houses from a list and just like that, they get to earn the fat commission check. But in reality, earning a commission in the real estate industry involves a lot more steps, processes and hard work than that.

MYTH #2 - You'll start earning right from the beginning of your real estate career

Debunking the myth - even if you get a real estate client on your first day of working, it would take at least 30 to 60 days before you get the commission. This is the typical timeline it takes to close the deal on a home in most cases.

Here’s another hard truth - landing your first lead can take weeks or even months, and a few weeks to turn the lead into a client. Then, with the assistance of your real estate brokerage in Mississauga, you can close the deal successfully in 30 to 60 days.

This means earning money on the first day or week of your real estate career is far from being true. This is why most newbie real estate agents keep aside money to cover their living expenses till the time they start earning. You too can save to cover your living expenses for three to six months before starting your real estate career.

MYTH #3 - A real estate agent career offers the same flexibility as freelancing

We’re sure you must have heard that real estate agents can take vacations or choose to work whenever they want. This is a myth that entices many 9 to 5 burned-out professionals towards the real estate career. But in reality, working as an agent in a real estate brokerage doesn’t mean you have a freelance job.

Yes, real estate agents can set their own schedules based on the availability and convenience of their clients. But you’ll need to put in enough hours and work to be successful in your real estate career. Sure, you may not need to work the typical 9 to 5 schedule but you may need to sometimes work on evenings or weekends or even for 12 hours on some days.

MYTH #4 - Each deal results in a 6% cut for real estate agents

This myth surrounding a real estate agent is untrue in many ways. Firstly, real estate commissions are always negotiable. So there is no hard and fast rule that a real estate agent will get a 6% cut from each deal.

Secondly, a real estate agent has to split the commission with the other party (buyer’s agent or seller’s agent). Thirdly, you’ll have to also split your commission with your real estate brokerage in Mississauga.

So, even if the decided commission cut from the real estate deal is 6%, you will earn only 3% commission. And once you split that with your brokerage, your cut may get down to 1.5% of the property sale price.

We know, you must be thinking now that earning a 1.5% cut after spending weeks and months to close the deal is not profitable. But if you consider this commission based on the property sale price, that can be a good chunk of cash.

Let’s suppose, the price of the property deal you have closed is $500K. So, based on 1.5%, your commission cut will be $7,500. If you sell one property at this rate per month, you can earn $90,000 a year which is not bad.

MYTH #5 - Prices and demand in the Mississauga housing market will always stay up

Yes, because of the steady price appreciation, strong economy and job market and growth in population, it may seem like the prices and demand in the Mississauga housing market may never go down. However, as a real estate agent, this is a dangerous myth to believe. Even the experts of your real estate brokerage can tell you that the Mississauga housing market won’t go up forever, especially after last year’s slow market activity.

So, rather than relying on the fact that the Mississauga housing market will keep bustling forever, it’s a much better idea to try to stay on top of the market. Check how the housing market prices and demands have changed over the years based on seasons or a major economic shift. By understanding the patterns of the housing market, you can make an estimate of the future housing market and stay prepared for it.

As you have seen, there are a lot of myths and misconceptions about being a real estate agent. By knowing these misconceptions in advance and learning the actual facts, you can set yourself up for a more successful real estate career!

Posted in: Business
Topics: real estate
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