If only our jobs were as easy as Bravo makes them look.
With all the rule changes and shifting consumer attitudes since the NAR settlement, an already difficult, thankless, and low-paying job is about to get harder, less rewarding, and pay less—at least for a while.
Despite what the public sees on TV, the average real estate agent only makes about $54,000. This is above the U.S. median income, but if you’re an average real estate agent, it’s probably still not enough for you to afford to buy the homes that you’re selling. If the rule changes do what the plaintiffs are hoping for, real estate agents, especially those who represent buyer clients, will see an already modest income drop.
If that’s you, what are you going to do?
The way I see it, you have three options:
- Stay in the industry
- Get out forever
- Take a breather until the dust settles (which it will)
Let’s talk more about each option.
Option 1: Stay in the Industry
For the 10% of agents who do 90% of the business deals, this market disruption is an opportunity, especially if you work mostly with sellers. You may even enjoy a bump up in your income since you are only obligated to negotiate the listing side of the commission.
If you are among the 90% of agents who do 10% of the deals, it will be harder, but you can do it. Get educated, hitch your wagon to a ten percent-er, and take the leap forward when others step back. This could be a turning point in your career. But that turning point can go either way, so make sure you have a backup plan to pay your bills in case things get tight.
Option 2: Get out of real estate
If you’ve been in real estate long enough to have survived the advent of the internet, you have already proven that you have the chops to navigate the storm that’s coming. However, the memory of that chaos may still be imprinted on your psyche, and you might not care to visit that place again. In that case, now might be just the right time to package up your book of business and cash it in.
If real estate has been a side hustle or part-time gig for you, you might be better off monetizing a different hobby. It is becoming riskier and more expensive to do this work, and the first folks to fall will be the ones whose attention is divided. Litigators are sitting on the edges of their seats, waiting for a misstep, and they will find one. The occasional sale here and there is not worth the kind of nightmare that awaits the real estate dabbler in this new era.
Option 3: Wait It Out
If there’s one thing we can all agree on, it’s that things are about to get very messy. If you really love this industry (and there is truly so much to love), but you are overwhelmed by the coming changes and you have the means to step away from it for a year, that is the right move.
There are very rough seas ahead, and some people are not going to fare well. But eventually, we will right the ship and it will be safe to jump back into the game. If you don’t have to, there’s no need to get yourself tangled up in the mess. Let the rest of us take the lumps and forge new paths, then jump back in when the storm has passed.
Each route has pros and cons. Which one do you think you’ll take?
