Why I quit being a real estate agent? (2024)

Why I quit being a real estate agent?

One of the most common reasons agents quit real estate is because they're not generating enough income to keep going. Maybe you're a relatively new agent who needs to make money while establishing your new business.

Some common reasons why realtors may choose to leave their jobs could include feeling burned out from the long hours and high pressure of the job, feeling like they are not earning enough money, or simply wanting to try something new.

The number one reason people quit real estate is because they expect to see immediate results. People expect a solid month of hard work to result in a good deal and a lot of money, and when it doesn't, they are quick to decide real estate must not be for them. The problem is, real estate is not a get rich quick scheme.

Long Hours

One of the toughest parts of the job is that long hours can be a significant challenge for real estate agents –– whether a new agent just starting in the business or an experienced agent.

Three common mistakes that agents make is inadequate prospecting, failing to market properties in ways that lead to fast sales, and not following up with clients. Real estate agents must be motivated because generating leads and marketing listings takes creativity and hard work.

The lack of experience among some realtors contributes significantly to the negative reputation. Clients who encounter agents with limited expertise might face inadequate guidance, incorrect information, and ineffective negotiation skills. This lack of proficiency tarnishes the overall perception of the profession.

Some new agents may not do what they need to do to be successful throughout the day. Or they may do too much of what doesn't lead to success. Besides money being a significant challenge in the first year, fear of rejection may also intimidate many new real estate agents.

According to them, 75% of real estate agents fail within the first year, and 87% fail within five years. Some common mistakes that agents make include, inadequate prospecting, not marketing properties in ways that lead to fast sales, and not following up with clients. But let's dive deeper into this.

Slow sales hurting realtors

With prospective buyers wary of high rates and backing out of deals at a record pace, home sales have been extremely sluggish over the past year, putting more agents out of work or reducing their income.

For some people, the trade-offs required to be successful in real estate simply aren't worth it. And that's okay! Choosing to quit real estate doesn't necessarily mean you're “failing” or “giving up.” It simply means you've come to the point where you would rather pursue something that may be a better fit for you.

What are the cons of being a real estate agent?

California: 44% New York State: 24% Florida: 7%

While placing an exact percentage number on failing Realtors is difficult, it's a high number. I've consistently heard that 85% of new agents will not be active in just two years. Some may keep their license, but they will not sell a single home in the next five years.

Why 87% Of Realtors Fail Within 5 Years Of Starting Their Careers & How To Beat The Odds. As a real estate professional, you're probably familiar with the NAR's research that found 75% of Realtors fail within the first year, and 87% fail within five years of entering the industry.

Earning a living selling real estate is hard work. You have to be organized in order to keep track of legal documents, meetings, and all the tasks that go into multiple listings. You may go without a paycheck for periods of time because the work is often commission-based. If you don't sell, you don't earn anything.

Real estate agent's professional appearance and attire

Appearance is extremely important, as most clients tend to hire agents based on appearance and gut feeling. Obviously, men wearing freshly pressed shirts with a smart-looking tie and well-polished shoes look professional.

A big reason for this is trust, as real estate transactions generally involve large sums of money as well as legalities. Any mistakes in this process can result in costly legal ramifications whether an agency is responsible or not. "As an agent, a lot of the time you're dealing with people's lives," says Moody.

Every year, transactions and prices tend to be above-trend in the summer while activity typically slows down in the winter. Seasonality plays an important role in the housing market since it has an impact on the housing demand and supply.

What do most realtors make their first year?

While ZipRecruiter is seeing salaries as high as $147,542 and as low as $28,127, the majority of First Year Real Estate Agent salaries currently range between $59,200 (25th percentile) to $98,700 (75th percentile) with top earners (90th percentile) making $126,817 annually in California.

Depending on the source, the percentage of real estate agents that fail in the business within the first 5 years ranges between 85-90%. When you think about it, nearly 9 of 10 new agents can expect to fail, which is an eye opener.

While you have to be at least 18 years old to become a real estate agent, there are realtors of all ages. According to the National Association of Realtors (NAR), the typical real estate agent is a 54-year-old white female who attended college. Female realtors make up over 60% of all realtors and the median age is 52.

So How Many Houses Does a Realtor Really Sell Each Year? Only a small number of realtors sell more than a hundred homes a year, and the majority sell anywhere between 2-10 homes a year. Further, first-year or those just starting as realtors usually sell the least number of homes.