Gratitude would be the term that I would use to describe my real estate career. Above everything else, it gave me the opportunity to restart my life and realise the Australian dream.
Now I’m confident I would have made a good career for myself elsewhere. However, I don’t believe I would have enjoyed the same level of success that I did in real estate.
While there are a lot of positives with a real estate career, there are some noticeable negatives. Therefore, anyone starting in real estate should not do it just for the above average income. I’ve outlined below some of the hidden costs in pursuing a real estate career.
Hidden Cost 1: You are always on the clock
To some, the thought of working a 9-5 job sounds mind-numbingly painful. However, while you may obtain more flexibility in real estate, you are expected to be available at all hours.
The first reason is that your clients typically work 9-5 day jobs. Given there are a lot of contact hours needed prior to signing the contract, and the fact their schedule is constrained, means that you will need to be flexible.
As mentioned in my earlier post, I was signing contracts with clients late at night, sometimes in the early hours of the morning. While it feels great to get a win, the lifestyle is not sustainable.
This trade-off does have some advantages. For starters, my days were never boring. I was always presented with new challenges and met interesting people in the process. Further, I was able to leave the office to run errands or tasks whenever I pleased.
However, my phone could never be turned off or out of my site. So that means taking calls during dinner or when you’re trying to relax. This is tolerable for the first few years, but may lead to issues down the road.
Hidden Cost 2: Say goodbye to weekends
If you choose a real estate career, it is inevitable that display home duty will be in your future. It is a great way to build your client base and better learn the product you’re selling. However, there is a pretty big drawback.
That drawback is weekend work. Typically for 4-5 hours each shift. This may not sound too terrible, until you factor in missing your son’s soccer games, or having to reschedule family gatherings.
Display home duty can also be fairly mundane most of the time. Unless there is a fair amount of people-traffic, or if you have scheduled appointments during that time, you’re likely going to be pretty bored.
Hidden Cost 3: You will do a lot of work for no reward
Picture the following. You are introduced to a new client. They list out their budget, along with their wants and requirements in their home. You prepare draftings and cost estimates to discuss and update. The client and yourself then enter into ongoing discussions to tweak and update the initial plans. Finally, you prepare the plans for finalisation and draft the contract.
The client then walks away and signs with another builder.
This will happen more than you think, and can be for a host of reasons. What’s important is to not be discouraged by this and to not take it personally. However, sometimes, this is easier said than done. In the moment, it is sometimes difficult to ignore the amount of work that is foregone for no reward.
Hidden Cost 4: Building trust is a constant uphill battle
Selling real estate is a relationship business, and the foundation of any relationship is trust. However, you will quickly find that building trust with buyers can be more trying than your other relationships.
One reason why it is so difficult to build trust is due to the overwhelming noise in the industry. There are numerous builders, countless agents, and the odd family member or friend that can’t resist voicing their opinion on real estate. Buyers are easily influenced by this noise, such that when they come to request your advice, you are already on the back foot.
While this is challenging for real estate sales representatives, the true victim is the buyer. I’ve had numerous buyers come to me with false or overinflated representations of what is included in their building cost. I’m typically met with resistance or denial when I explain that what they were promised isn’t covered in their costing. Sadly, upon realising that there is an error, it’s often too late to correct it without the buyer incurring additional costs.
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Over the years, I’ve interviewed a number of young professionals looking to start their real estate career. I made it a point to provide a balanced view of what’s involved in this profession. Some interviewees were (unintentionally) scared off by my comments on the hidden costs of the industry. Others chose to ignore my advice and didn’t last very long in the industry.
Then there were those that listened to what I had to say, reflected on it, and decided to pursue a real estate career anyway as that was what was best for them. The majority of candidates in that group remain in the industry to-date and have achieved incredible success.
The content outlined above was written, edited and published by the Lost Realtor. The author has over 20 years or real estate sales and investing experience in the Australian property market. He has held senior positions in Australian building companies, including being the General Manager of the residential sales division of Collier Homes. His qualifications include a Bachelor of Commerce degree and a Graduate Diploma in Building and Construction Law.