Is Real Estate a Good Career Path in 2024
Choosing a career path is one of the major decisions that one has to take in life. That’s why it’s really important to choose a career in a field that not only has good earning potential and work-life balance but is also less likely to be at risk of being replaced by AI.
If you are someone who doesn’t want to do a 9 to 5 job and rather wants a job that offers flexibility and independence, then real estate can be your dream career. But is real estate a good career path to choose in 2024?
Let’s find out:
Careers You Can Pursue in Real Estate
Real Estate Agent
A real estate agent is a licensed professional who helps his clients buy or sell properties. The primary role of a real estate agent is to match buyers with suitable properties and guide them through the purchase process, as well as list and market properties for sellers.
Real Estate Broker
A real estate broker is a step above an agent. Brokers not only have more experience but also have a higher level of education and licensing. A real estate broker can work independently or hire real estate agents to work for him. Moreover, a broker earns more than a real estate agent.
Real Estate Appraiser
A real estate appraiser is someone whose job is to estimate the market value of properties before they are sold or mortgaged. Moreover, he is responsible for establishing market values and providing credible reports on appraisal data. Property owners and real estate investors usually rely on his expertise to determine fair prices for properties.
Property Manager
A property manager handles the day-to-day work and maintenance of residential or commercial real estate properties on behalf of property owners. The duties of a property manager include everything from listing properties, selecting tenants, and negotiating leases to collecting rent, scheduling maintenance, and everything in between.
Real Estate Consultant
A real estate consultant’s job is to provide expert advice and guidance to clients on various aspects of real estate, such as investment strategies, property development, zoning and land use regulations, and market analysis. A real estate consultant may work independently or as part of a larger consulting firm.
Other prominent careers you can pursue in real estate include asset manager, acquisitions analyst, mortgage broker, loan officer, real estate developer, and real estate investor.
Benefits of Choosing a Career in Real Estate
Taking a Start is Easy:
The barrier to entry for becoming a real estate professional is relatively low compared to many other professions. In most states in the US, the process involves completing the required real estate licensing courses, passing the licensing exam, and activating your license. This process is often completed within a matter of weeks or months, depending on the specific state regulations and your pace of study.
Great Earning Potential:
While income in real estate can be highly variable, the earning potential for hardworking individuals is substantial. Unlike salaried positions, real estate agents and brokers typically earn a commission on each property deal they close. The commission rate is often a percentage of the sale price, and in hot real estate markets or when working with high-end properties, these commissions can add up quickly. Top-performing real estate agents earn a handsome amount, although it's important to note that building a lucrative real estate career takes time, dedication, and a strong understanding of the market.
Flexible Schedule:
One of the most captivating things about working in real estate is the ability to set your own schedule and work hours. Unlike traditional 9-to-5 jobs, real estate professionals have the flexibility to accommodate clients' schedules, visit property sites, and manage their workload according to their personal preferences and availability. This flexibility can be particularly beneficial for people with family responsibilities or those who prefer a more fluid work-life balance.
Exciting Nature of Work:
No two days are alike in the life of a real estate professional. Each day you have to deal with new clients with unique needs, show properties to them, do negotiations, and overcome various challenges that come your way. This makes the job of a real estate professional dynamic and engaging, helping him avoid monotony. The ability to deal with different types of properties, from residential homes to commercial buildings, further adds to the diversity of the work.
Drawbacks of Choosing a Career in Real Estate
Irregular Income:
As we mentioned earlier, real estate agents typically earn money through commissions on property sales. This means their income can fluctuate significantly depending on the number of deals they close and the value of those deals. During times of low market activity or economic downturns, many real estate agents usually experience reduced income or even prolonged periods without any income. This irregularity makes it challenging for them to maintain a consistent cash flow and plan for expenses.
High Start-Up Costs:
Though entering the real estate industry is easy, it is a bit costly. Getting a real estate license requires completing real estate courses and passing exams, which involves some upfront costs. Moreover, real estate agents typically need to join a brokerage firm, which also requires paying a flat fee or splitting commissions.
Long and Irregular Hours:
Real estate professionals often need to be available to clients during evenings, weekends, and holidays, as these are typically the times when buyers or sellers are free to visit properties or have discussions with their agents. So, at times it becomes a little difficult to manage your personal schedule.
Continued Education and Licensing Requirements:
As a real estate professional, you must upgrade your license to continue working in the industry. This typically involves taking advanced licensing courses and renewing licenses on a regular basis, which can be time-consuming and involve additional costs.
Is Real Estate a Good Career Path?
Real estate is indeed a good career path for you if you prefer to be your own boss, but it requires persistence, dedication, and a certain set of skills.
A career in real estate promises the potential for high earnings, especially if you become a successful real estate agent or broker. However, you should also know that income in real estate is often commission-based and can fluctuate with market conditions.
One of the most appealing aspects of a career in real estate is the flexibility and the opportunity to be your own boss. However, it also means irregular hours, including evenings and weekends, to accommodate clients' schedules.
In addition, the real estate market is cyclical in nature, with periods of boom and bust. Therefore, you need to be prepared for market volatility and have a solid strategy to get through different economic conditions.
Can AI Replace Real Estate Agents?
The potential of AI to disrupt real estate is undeniable. However, the notion of AI entirely replacing real estate agents is highly unlikely in the near future. While AI can optimize certain processes and help real estate agents be more productive, the human element will always remain paramount.
A real estate agent not only helps in buying and selling properties, but he also provides emotional support, personalized advice, and expertise based on knowledge acquired through years of experience.
Moreover, the real estate industry relies heavily on interpersonal relationships and networking. Real estate agents cultivate connections within their communities and build trust and rapport with clients and other agents. This human element is a major challenge for AI to replicate, as it involves subtle social cues, emotional intelligence, and a deep understanding of local dynamics.
AI can undoubtedly improve the efficiency and productivity of real estate agents by automating tasks such as property searches, market analysis, and data processing. However, it is unlikely to replace the human expertise and critical thinking required to analyze complex situations, negotiate deals, and understand the legal and regulatory framework.
