Are you considering a part-time career in real estate?
It’s safe to say that there are countless benefits to working part-time hours in your real estate career. First and foremost, it allows you the privilege of having a flexible schedule. In doing so, you can channel your focus to other areas of your life such as taking care family or even an alternate career.
However, this isn’t to say that committing to part-time hours comes without flaw. Of course, the most common concern in being a part-time real estate agent is whether or not you can make a moderate salary.
If you’re interested in a real estate career, but not yet ready to commit to full-time hours, this one’s for you. We’re uncovering everything you need to know about whether a moderate salary is attainable with part-time real estate hours.
Generalized Salary
First and foremost, the most commonly asked question for part-time real estate is what type of salary to expect.
Of course, this is an incredibly challenging question to answer in simple terms. This is because each and every part-time real estate agent approaches their career in a different way.
For example, some-part time choose to commit to a 20 hour work week. On the other hand, some agents may only do one or two transactions throughout the entire year. The latter group of part-time real estate agents is what we refer to as “friends and family” agents.
Without dividing part-time real estate agents into these two categories, determining a salary is far too generalized.
20 Hour/ Week Part-Time Agents
The most common part-time real estate agent works approximately twenty hours a week. With these agents, many also take care of a family or work a second job on the side.
One common challenge that many part-time agents find is convincing their clients that they are properly qualified. This is something any prospective part-time agent should plan for ahead of time and factor into their potential earnings.
For example, some full-time agents will deter people from hiring a part-time agent. This is because they are of the belief that a part-time agent is unable to keep with the pace of a demanding market. Some people also believe that it’s challenging to grow your business on a part-time basis.
Let’s consider that one-tenth of real estate agents earned less than $23,000 annually. These are the agents that are working part-time and generally committing to a twenty-hour work week. Of course, it’s entirely possible to make more if you are willing to put in longer hours.
When you choose to work part-time, you may have to make both financial as well as time sacrifices. For example, it may be difficult to juggle a vacation or a weekend away when only making a part-time income. This is especially true for those that are the primary earners within their family unit.
Friend and Family Part-Time Agents
In addition to the part-time real estate agent working approximate twenty hours weekly, there’s also the “friend and family” part-time agent. In short, these agents work far less than twenty hours per week and earn a median commission of less than $9000 per year.
A friends and family real estate agent is one who typically don’t practice real estate on a daily or weekly basis. Instead, this agent generally only utilizes their real estate license for close friends and family. In fact, many of these agents may only complete one or two transactions annually.
If you’re considering getting your real estate license to exclusively trade with family and friends, you must prepare yourself beforehand. For example, it’s important to prepare for the possibility of making very little money. Some friends and family agents may go a few years without having a single transaction.
Remember, the majority of these agents are either retired or have alternate, higher earning careers. With this, any real estate commissions are a simple bonus and not generally counted on for life’s expenses.
Fees and Payments
It’s only natural to get caught up in the excitement of your potential earnings. But, what about all of the necessary payments throughout your career?
When calculating an estimated part-time commission, it’s imperative to also consider the costs associated with doing so. Remember, maintaining an active real estate license is certainly not cheap. In addition to your brokerage, you’ll also have to pay to be a member of a real estate board.
It’s also important to factor in other costs that are affiliated with being an active real estate agent. These are costs such as:
- Marketing costs
- Website maintenance
- Signage and physical advertising
- Necessary classes and continuing education
- Transaction fees
- Software programs
When you consider your estimated salary, it’s essential to factor in the above costs. Depending on your brokerage situation or your state, it’s also possible there will be additional fees.
Is It Worth It?
There’s no denying that working part-time in real estate surely has its challenges.
After all, taking care of clients and keeping updated with the everchanging market can be difficult on a part-time basis. Some part-time agents have also experienced judgment from their coworkers and even clients for not committing to full-time hours. It’s safe to say that some full-time agents believe that it’s not possible to service your client base when only working part-time.
However, many part-time agents have had great success in working reduced hours. With careful scheduling and a knack for organization, this is certainly possible. It’s also a great place to begin your real estate career and decide whether this type of career would suit you full-time.
Working as a Part-Time Real Estate Agent
In today’s day and age, there are over two million licensed real estate agents in America.
Of these millions, a large handful will choose to work as a part-time real estate agent at some point throughout their career. Not only does this offer more flexible hours, but it leaves time for other life passions and a more balanced lifestyle.
With reduced hours, however, comes a natural concern with how whether or not it’s possible to earn a moderate salary. If you find yourself nodding your head, be sure to use this article as a guide for what you can expect in a part-time real estate career. While working part-time does come with a set of challenges, this isn’t to say that it couldn’t work for your lifestyle.
If you’re considering getting into real estate, be sure to visit our website and learn more. Here, you can read about how the real estate paradigm is shifting and determine whether this is the right career for you!